Terms and conditions
Annex to Terms & Conditions:
Quality and Regulatory Requirements for Distributors of Medical Devices
Note 1: referenced articles are from the regulation on medical devices EU/2017/745 available at http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32017R0745
Note 2: EEA+CH refers to the member states of the European Union and European Economic Area plus Switzerland
Article 1 – General
The DISTRIBUTOR agrees to the terms of this Annex when the PRODUCTS are considered MEDICAL DEVICES under the present legislation.
Article 2 - Obligations of the LEGAL MANUFACTURER
The PRODUCTS will be delivered by the LEGAL MANUFACTURER with CE-marking, labeling and instructions for use (when applicable) in the language of the country of the DISTRIBUTOR, if available. Otherwise labeling and instructions for use will be provided in a language mutually agreed upon.
In case the PRODUCTS are commercialized outside the EEA+CH markets, the LEGAL MANUFACTURER will deliver, if available, any other required markings or certificates.
Where applicable, the LEGAL MANUFACTURER undertakes to create and maintain the technical documentation as required by local competent and/or regulatory authorities.
Where applicable, the LEGAL MANUFACTURER undertakes to register the products in local national databases as required by the legislation in the country of commercialization of the PRODUCTS.
When exporting outside the EEA+CH markets, the LEGAL MANUFACTURER undertakes on request to obtain a Free-Sales Certificate from the relevant competent and/or regulatory authorities. This shall be provided to the DISTRIBUTOR.
The LEGAL MANUFACTURER shall provide training or training material to the DISTRIBUTOR as needed to properly conduct business activities. The DISTRIBUTOR is obliged to attend these trainings.
Article 3 – Obligations of IMPORTER
When the DISTRIBUTOR is also the IMPORTER, the provisions of this article are applicable.
In case the PRODUCTS are imported, information regarding the importer should be available either on the label, instructions for use or an additional document accompanying the PRODUCTS. This information should include the importer’s name, registered trade mark and the address of their registered place of business. (Article 11, 12/2)
The IMPORTER undertakes to comply with local legislation. In case the PRODUCTS are commercialized on the EEA+CH markets, the IMPORTER shall verify that
· the PRODUCTS are CE marked
· an authorized representative has been designated and
· a Declaration of Conformity is made available.
· Labeling is provided in compliance to local legislation
· a UDI has been assigned to the PRODUCTS
· the PRODUCTS are registered in the local electronic systems
For PRODUCTS commercialized outside of the EEA+CH markets, depending on local regulations, the importer shall verify that
· the PRODUCTS are registered and market authorization/approval has been granted
· a local legal representative has been designated and
· MANUFACTURER, DISTRIBUTOR and LEGAL REPRESENTATIVE are registered
· Labeling is provided in compliance to local legislation
· a UDI has been assigned to the PRODUCTS
· the PRODUCTS are registered in the local registration/licensing scheme
The IMPORTER shall place its name, registered trade name and registered place of business on the PRODUCT or its package or in an accompanying document.
The IMPORTER undertakes to keep a register of complaints, of non-conforming products and of product recalls and withdrawals. All relevant information shall be forwarded on request to the SUPPLIER and/or DISTRIBUTOR.
The IMPORTER shall, for the period of 10 years, maintain a copy of the EU Declaration of Conformity and, where applicable, a copy of all relevant certificates.
Article 4 – Regulatory Requirements
The DISTRIBUTOR undertakes to inquire and to keep the LEGAL MANUFACTURER informed about all various statutes and regulations which could be required by the LEGAL MANUFACTURER in launching, marketing and distributing the PRODUCTS in the CONTRACT AREA.
The DISTRIBUTOR undertakes to promptly inform the LEGAL MANUFACTURER of any changes which have occurred or could occur in the regulations applicable to the area covered by the present contract for the marketing and distribution of the PRODUCTS.
The DISTRIBUTOR undertakes to submit all information and documents necessary to obtain all possible locally requested declarations and approvals. When permitted by the local legislation, the original submission documentation shall be forwarded to the LEGAL MANUFACTURER.
The DISTRIBUTOR undertakes to support the transfer of all regulatory approvals and/or registrations to a designated local representative or license holder or back to the LEGAL MANUFACTURER on discontinuation of the contract, on requested of the LEGAL MANUFACTURER.
Article 5 – Registration to Local Competent Authorities
The DISTRIBUTOR undertakes to register its establishments if so requested to the local competent authorities. Proof of registration shall be forwarded to the LEGAL MANUFACTURER.
Article 6 - Audits
The DISTRIBUTOR undertakes to allow and support any planned and unannounced audits at its own expenses on request of the local competent authorities, notified bodies and other regulatory agencies.
The LEGAL MANUFACTURER also has the right to confirm the compliance of the DISTRIBUTOR to the requirements defined in this agreement by means of an audit.
Article 7 – Record keeping
The DISTRIBUTOR undertakes to keep appropriate records as evidence of compliance to the terms of this agreement.
The DISTRIBUTOR shall keep records to whom they have delivered the PRODUCTS.
The DISTRIBUTOR shall keep records on product repair and service activities and periodic safety inspections, corrective and preventive actions and vigilance cases.
The DISTRIBUTOR shall keep records of complaints, of non-conforming PRODUCTS and of PRODUCT recalls and withdrawals. (Article 12, 5)
On request, these records will be made available to the LEGAL MANUFACTURER. The DISTRIBUTOR will maintain all records for a period of 10 years.
Article 8 – Traceability
The DISTRIBUTOR shall maintain an appropriate level of traceability of devices with an adequate level of precision as agreed upon with the LEGAL MANUFACTURER.
The upstream and downstream traceability of the PRODUCTS will be ensured such that, in the event an error is discovered, all other possible affected PRODUCTS can be identified immediately and restricted until corrective measures can be taken. Where applicable, the Unique Device Identification number will be used for tracking purposes. If not, a model name and serial or batch number will be used.
Where the local competent and/or regulatory require assignment and registration of UDI to the PRODUCTS, the LEGAL MANUFACTURER shall ensure UDI compliance is met. (Article 12/2) In this case, the DISTRIBUTOR shall keep track of the assigned UDI.
The DISTRIBUTOR commits itself, in order to ensure the best possible traceability of the PRODUCTS, to make out precise registrations stating the conditions in which the PRODUCTS have been distributed. Such registrations must allow the identification of the following to the LEGAL MANUFACTURER and, if requested, to the competent authorities: (article 23)
· Any economic operator to whom they have supplied the device
· Any economic operator who has directly supplied them with a device
· Any health institution or healthcare professional to whom they have directly supplied a device
These records should be maintained for at least 10 years after the last device covered by the declaration of conformity has been placed on the market. (Article 8)
Article 9 – Reporting
The DISTRIBUTOR undertakes to forward to the LEGAL MANUFACTURER any PRODUCT complaints and/or feedback, including local publications or press on the concerned PRODUCTS.
The DISTRIBUTOR undertakes to promptly inform the LEGAL MANUFACTURER of any possible malfunctions, deterioration in characteristics and/or possible misuse of products that has or could have led to the death and/or serious deterioration in the health of a patient or user.
The DISTRIBUTOR undertakes to communicate with the patient or the end user to gather information, investigate and/or resolve any issues.
On request of the competent and/or regulatory authorities, the DISTRIBUTOR undertakes to provide all the information and documentation at its disposal necessary to demonstrate compliance of the PRODUCTS to the local regulations. (Article 12/6)
Article 10 – Vigilance and Recall
In the event of a customer complaint, field safety corrective action (FSCA), an incident or near incident, the DISTRIBUTOR shall contact the LEGAL MANUFACTURER in writing without any delay that could be justified. The LEGAL MANUFACTURER will then initiate further action. The latest version of the MEDDEV 2.12-1 – Guidelines on a Medical Devices Vigilance System will be used as guidance. The latest version is available at:
http://ec.europa.eu/DocsRoom/documents/15506/attachments/1/translations/en/renditions/native
The DISTRIBUTOR shall keep records associated with complaints and (near) incidents.
When a PRODUCT that the DISTRIBUTOR has placed on the market is believed to be non-conformant with the local regulations, the DISTRIBUTOR shall immediately inform the LEGAL MANUFACTURER. (Article 12/3). The DISTRIBUTOR shall cooperate with the LEGAL MANUFACTURER and the competent or regulatory authorities to ensure that necessary corrective actions have been implemented. These may include, if appropriate, actions to bring the PRODUCT into conformity, withdrawal from the market or recall.
When the PRODUCT presents a serious risk, the DISTRIBUTOR undertakes to immediately inform the appropriate competent and/or regulatory authorities with sufficient details on the non-conformance and corrective actions taken. (Article 12/3). On request, the DISTRIBUTOR shall cooperate with the competent and/or regulatory authorities to eliminate the risks posed by the PRODUCTS. Also on request, the DISTRIBUTOR shall provide free samples of the PRODUCTS or, where impracticable, grant access to the PRODUCT. (Article 12/6)
In the event of not respecting the above paragraph, the DISTRIBUTOR is held responsible for any liability claim and associated cost. Furthermore, the contract will stop directly, immediately and without notice.
The LEGAL MANUFACTURE undertakes to inform the DISTRIBUTOR of any corrective actions taken in relation to the PRODUCT that might be needed to respond to safety issues or to bring the PRODUCT into conformity. The DISTRIBUTOR shall maintain adequate quality management system processes to make sure it obtains all such information. (Article 14/3)
For non-EEA+CH markets other regulations apply. For some of the key markets, applicable regulations can be found at:
USA: https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/cfrsearch.cfm
Brazil: http://portal.anvisa.gov.br/
Canada: http://laws-lois.justice.gc.ca/eng/regulations/SOR-98-282/
Korea: http://www.mfds.go.kr/
Taiwan: https://adr.fda.gov.tw/
Australia: https://www.tga.gov.au/standards-guidelines-publications-medical-devices-ivds
China: http://eng.sfda.gov.cn/WS03/CL0758/
Japan: http://www.pmda.go.jp/safety/reports/hcp/pmd-act/0002.html
Article 11 – Clinical Evaluations and Clinical Trials
The DISTRIBUTOR shall not perform any post-market clinical evaluations or clinical trials without the prior written approval of the LEGAL MANUFACTURER.
Article 12 - PRODUCT Labeling
The DISTRIBUTOR will not change any labeling (defined as any written, printed or graphic information appearing either on the device itself or on the packaging of each unit or on the packaging of multiple devices and also includes the instructions for use which inform the user on the device’s intended purpose) provided with the PRODUCT, without the written consent of the LEGAL MANUFACTURER. Changes to labeling include alteration, removal, modifications and translations.
In case the information supplied with the PRODUCT needs to be translated according to the requirements of the Member State where it should be placed on the market, the DISTRIBUTOR shall obtain a written consent of the LEGAL MANUFACTURER to perform such an activity. The DISTRIBUTOR undertakes to have procedures in place that ensure that the translated information is accurate and up-to-date. The translation of the information supplied with the PRODUCT shall be indicated by the DISTRIBUTOR on the package or, if impracticable, in an accompanying document, along with its name, registered trade name and address. (Article 14/2,3)
The DISTRIBUTOR undertakes to inform the LEGAL MANUFACTURER and the competent and/or regulatory authorities at least 28 days prior to making available on the market of the relabeled PRODUCT. The DISTRIBUTOR shall provide a sample of the relabeled PRODUCT to the LEGAL MANUFACTURER and, upon request, also to the competent and/or regulatory authorities. (Article 14/4)
The DISTRIBUTOR shall, within the same 28 calendar day period, obtain a notified body certificate for their quality management system and will forward this certificate both to the LEGAL MANUFACTURER and the competent and/or regulatory authorities. (Article 14/4)
Article 13 – PRODUCT use during exhibitions
The DISTRIBUTOR using the PRODUCT at trade fares, exhibitions or other similar events shall clearly mark that the PRODUCT is destined for this purpose and cannot be marketed until clearance from the competent authorities is obtained.
Article 14 – Promotional Material
All promotional material created by the DISTRIBUTOR, including but not limited to advertisements, claims or labels shall be reviewed upfront and approved by the LEGAL MANUFACTURER before commercialization of the PRODUCT.
The DISTRIBUTOR undertakes to ensure that all promotional material complies with the local applicable laws and regulations.
The DISTRIBUTOR shall not promote in any way the off-label use of the PRODUCTS.
Article 15 – Repackaging
The DISTRIBUTOR will not change any packaging provided with the PRODUCT, without the written consent of the LEGAL MANUFACTURER. Changes to packaging include alteration, removal and modifications.
In case a change in packaging is desired, the DISTRIBUTOR shall obtain a written consent of the LEGAL MANUFACTURER to perform such an activity. The DISTRIBUTOR undertakes to have procedures in place that ensure that the repackaging will not affect the original condition of the device. The repackaging of the PRODUCT shall be indicated by the DISTRIBUTOR on the package or, if impractical, in an accompanying document, along with its name, registered trade name and address. (Article 14/2,3)
The DISTRIBUTOR undertakes to inform the LEGAL MANUFACTURER and the competent and/or regulatory authorities at least 28 days prior to making available on the market of the repackaged PRODUCT. The DISTRIBUTOR shall provide a sample of the repackaged PRODUCT to the LEGAL MANUFACTURER and, upon request, also to the competent authorities. (Article 14/4)
The DISTRIBUTOR shall, within the same 28 calendar day period, obtain a notified body certificate for their quality management system and will forward this certificate both to the LEGAL MANUFACTURER and the competent and/or regulatory authorities. (Article 14/4)
Article 16 – Training
The LEGAL MANUFACTURER undertakes that sufficient training material is provided either in English or in a language mutually agreed upon with the DISTRIBUTOR.
The DISTRIBUTOR will make sure that its staff is adequately trained to safely handle the PRODUCTS.
The DISTRIBUTOR undertakes to provide sufficient training information to its customers for the handling and use of the PRODUCTS and provide adequate customer support and keep records of such training.
Article 17 – Installation, Maintenance and Service
The LEGAL MANUFACTURER undertakes to provide adequate documentation for training on installation and service. Where applicable, the LEGAL MANUFACTURER shall provide servicing activities in compliance with local regulatory requirements.
The DISTRIBUTOR undertakes to install and service the PRODUCTS according to the instructions and requirements defined by the LEGAL MANUFACTURER. All equipment used in servicing activities shall be according to international standards.
Article 18 – Storage and Transport
The DISTRIBUTOR shall store and transport (Article 12, 3) all PRODUCTS, as the specification of the PRODUCTs require. The PRODUCTS’ labeling shows the specifications needed for storage. The LEGAL MANUFACTURER will not accept liability due to improper storage and/or transport conditions.
Article 19 – Product disposal
The DISTRIBUTOR undertakes to properly dispose of returned products according to local regulations for electronic waste and medical equipment.
Article 20 – Legal representation
If so required by local regulations and when specifically designated by the manufacturer, the distributor shall take the role of local legal representative. Terminology for this local legal representative might be different depending on local regulations, e.g. Representative, Sponsor, Marketing Authorization Holder etc.
The local legal representative will, depending on local regulatory requirements, execute or support
· Local PRODUCTS registration and/or market authorization/approval
· Registration of manufacturer, distributor and legal representative
· Communication with local regulatory agencies on significant changes
· Registration of PRODUCTS in the local registration/licensing scheme
· Translation of any communication to local regulatory agencies
· Reporting and communication to local regulatory agencies for vigilance, Field safety corrective actions, advisory notices and/or recall cases
Article 21 – Cases of Counterfeit
The DISTRIBUTOR will inform the Manufacturer and its legal representative about the occurrence of cases of counterfeit, associated with MANUFACTURER’s products.