This regulation classified in its appendix the 23 types of precursor chemicals into three categories. Category I includes the major materials that can be used for producing drugs. Categories II and III include the chemical agents that can be used for producing drugs. The precursor chemicals in the Category I are further classified into the drug precursor chemicals and non-drug precursor chemicals.

Production, distribution, purchase, transportation and import and export of precursor chemicals are subject to China’s classified administration and licensing system. Different activities relevant to the precursor chemicals are under jurisdictions by different levels from different authorities such as public security organs, Food and Drug Administration, commerce authorities and work safety administration. The entities shall apply the licenses or record-keep to the authorities and then operating the activities. Furthermore, the licenses-issued or record-kept companies are under inspections and supervisions by different authorities if necessary and the violators shall receive the punishments stipulated in this regulation.