China Officially Passes First Local Cosmetic Safety Regulation

Guangdong passes new localized cosmetic safety regulation. 5 key terms based on actual situation in Guangdong are: 14 categories of cosmetics are banned from sale The safety management responsibilities of network cosmetics operators and online trading platforms are clarified Stakeholders engaging in cosmetic trading activities in trade fairs are responsible for product safety Entrustment party shall ensure cosmetic quality and safety. Establishment of a risk management mechanism.

On March 28, 2019, China passed the first local cosmetic safety regulation, Guangdong Cosmetics Safety Regulation ^[1], which will be implemented on Jul. 1, 2019. This regulation is applicable to all the cosmetic enterprises in Guangdong province.

Currently the official document of Guangdong Cosmetics Safety Regulation has not been released, but in the second draft, the regulation is divided into 6 parts which are general rules, production management, operation management, supervision management, legal responsibilities and supplementary rules. The regulation covers all aspects of cosmetics production and operation and strengthens post-market surveillance.

Specific terms based on the actual situation in Guangdong

1. 14 categories of cosmetics that are banned from sale, any business activity or using as promotional gifts.

1. Cosmetics without production license or exceed the scope of license

2. Cosmetics without filing or registration certificates

3. Cosmetics without quality inspection certificates

4. Cosmetics with unqualified labels

5. Cosmetics exceeding shelf life, deteriorated cosmetics or contaminated cosmetics

6. Cosmetics with prohibited ingredients, new ingredients without registration or restricted ingredients exceeding the limitation

7. Cosmetics with fake certificates, label, instruction, inspection report, etc.

8. Cosmetics with fake manufacturing site or place of origin

9. Cosmetics that are illegally subpackaged or prepared by operators

10. Cosmetics with ingredients exceeding shelf life

11. Cosmetics with unqualified containers or packaging

12. Cosmetics imported without approval or inspection

13. Cosmetics unable to prove the source is legitimate

14. Other non-compliant cosmetics

2. Clarify the safety management responsibilities of network cosmetics operators and online trading platform

Network cosmetics operators shall complete commercial registration and disclose the products’ registration/filing information at a prominent position on the product sales page.

The online trading platform shall:

Carry out the real-name registration and business qualification verification for the network cosmetics operators entering the platform, keep the registration documents and update them in time
Sign the Cosmetics Safety Management Responsibility Agreement with the cosmetics operators entering the platform
Promptly stop illegal platform operations and report to the local MPA. If it is a serious illegal act, the platform should immediately stop providing service for the operator
Provide true information and contact information of cosmetic operators if there is a consumer dispute
Bear joint responsibilities with the network cosmetics operators if the platform did not take meaures aganist those non-compliant cosmetics sold in the platform.

3. Stakeholders engaging in cosmetic trading activities on centralized trade markets, leased counters or in trade fairs are responsible for product safety

According to industry insiders, ^[2] in the past, supervision of trading activities on centralized trade markets has been extremely lax. After the implementation of Guangdong Cosmetics Safety Regulation, the responsibilities of all parties are clarified and accountability clearly defined throughout product lifecycle and custody chain.

4. For the entrustment of general or special-use cosmetics manufacture, the entrusting party shall be: 1) a legal cosmetic management firm or cosmetic manufacturing enterprise 2) obtain a cosmetic registration/filing certificate 3) undertake responsibility for cosmetics quality and safety.

The entrusted party and entrusting party shall sign the Entrusted Production Contract, clarify the scope of the entrustment and the rights and responsibilities of both parties, and the time limit for entrusted production shall not exceed the validity period of the cosmetics production license and the business license.

5. Establishment of a risk management mechanism. The mechanism can be used to evaluate, alert and identify risks as early as possible, so that the competent authority can take measures according to the risk levels, control the scope of influence, and improve the initiative and predictive of supervision.

Influence:

Guangdong Cosmetic Safety Regulation can be regarded as a nationally authorized legislative exploration at the local level. The influence of the safety regulation will not be limited to Guangdong Province, but will radiate throughout China. Cosmetics produced in other regions entering Guangdong Province shall comply with its safety regulation.

The development and pending implementation of China's first local cosmetic safety regulation not only represents a new era of supervision in Guangdong Province, but also indicates a new development in the cosmetics industry at the national level.

Please refer to CL News for the comparison between Guangdong Cosmetics Safety Regulation and China 2018 Cosmetic Supervision and Administration Regulations.