Economic and Legal Frameworks for Non-Prescription Medicines 2004 studied by AESGP 8. DISTANCE SELLING Persons having obtained an Ippan-hanbai-gyo licence are allowed to run mail order business for the certain non-prescription medicines with some restrictions:   Gargles Gastrointestinal remedies Enemas Anti-haemorrhoidals Bactericidal disinfectants Vitamin preparations Health medicines containing vitamins The teleshopping of non-prescription medicines is allowed within the same scope as distance selling (mail order). 9. PRICING There are no retail price controls on non-prescription medicines in Japan. As non-prescription medicines are not subject to reimbursement at all, nothing in this context would therefore influence their capacity to be advertised to the general public. On the other hand, all the prescription medicines officially registered on the National Health Insurance Price Tariff are subject to reimbursement. Generic prescribing is allowed and encouraged as a means to put back the deficit-ridden National Health Insurance System on a solid path. Generic substitution is not allowed under any condition. There is no retail price maintenance system. It is entirely up to the medicine retail outlets to sell non-prescription medicines at any price at their own discretion. 10. PRICE BUILD-UP   % % Manufacturer's selling or ex-factory price (MSP) 100.0 52.4 Wholesale price (margin = 15.4%) 118.2 61.9 Pharmacy price excl. sales tax (margin = 35%) 181.8 95.2 Pharmacy price incl. sales tax (5%) = consumer price 190.9 100.0 The above pricing structure shows the most common breakdown in the absence of fixed margins. The same consumption tax of 5% is levied on both OTC and prescription medicines.