China SFDA Circulated a Notice of Criticism of 11 Companies for Submitting False Notification Materials

On 18th July, 2011, China SFDA issued a public announcement on its website, giving warnings to those dishonest notifiers who forged the application materials for cosmetic products.

The SFDA made the decision after thorough evaluation and inspection, then determined 7 cosmetic manufacturers and 4 Chinese responsible agencies for notification (CRANs) are involved in this "Counterfeit storm". According to the "Administrative Licensing Law of the People's Republic of China" (came into force on 1st July, 2004), SFDA declared that those 11 companies infringed the provision No. 31, and should be faced with the following punishments based on the provision No. 78:

1. The applications for administrative license of 9 products submitted by Bio fresh Ltd, Cendus Corp., Wlzcoz Co., Ltd, Bare Escentuals Beauty, Inc., Technolabo Co., Ltd., Lanyun Fine Chemical Factory and Sifair cosmetics factory are rejected, and the applications for the same products in the next one-year period are prohibited.

2. Giving warnings to the 4 CRANs who submitted false notification materials: Dongguan Xiti Co., Ltd, Shanghai new Bada import and export Co., Ltd, Fuzhou Boerqi investment management consulting Co., Ltd, Shenzhen Yitong Bolangte Technology Co., Ltd.

This unpleasant event revealed the current chaotic situation of cosmetics market in China, the quality of some manufacturers and CRANs should be doubted. The government department noticed the illegal cases, and tried to stop the trend of deception from the very beginning with a warning. Although no financial punishment is involved this time, the reputation and future business of these 11 companies will be greatly damaged. Therefore, It is reminded that the cosmetic manufacturers comply with the Chinese cosmetics regulation and may appoint a competent and decent agency to assist the application for Administrative license.

Remarks:

•   Chinese responsible agency for notification (CRAN): The foreign cosmetic manufacturers should appoint an only representative based in China for notification, similar to the concept "OR" under EU REACH.

Table: The list of involved companies and products