Abstract: The importance of and the need to secure food safety and facilitate international trade through establishing a traceability system for domestic animals and livestock products were discussed, and the essential components and characteristics of domestic animal traceability system were also introduced in this paper. Several animal identification technologies including information and network technology were compared and summarized. The history of implementation and evolution of legislative regulation of traceability systems in developed countries were reviewed; the main issues which hamper the implementation of traceability system were discussed. A pilot project of a Chinese traceability system, in which new technologies were developed, was also proposed. The trends and direction for the development of traceability system was highlighted, and findings of this paper could provide a basis for establishing a national traceability system for domestic animals and livestock products which is feasible to the situation of China.