All merchants and companies in China who have not been licensed to sell dairy products can no longer sell infant formula and dairy drinks such as "AD calcium milk" and "Nutrition Express" starting from Aug 1, The Beijing News reported Tuesday.

According to the newspaper, merchants who have not been granted permission to sell infant formula in their dairy products license are not allowed to sell it, with the threat of punishment if they do.

The Administration of Industry and Commerce added two projects that require administrative examination and approval in the license for Market Circulation of Food on Mar 28. The two projects are dairy products that include infant formula and diary products that don't, the newspaper reported.