Choices for Foreign Cosmetics Entering China after the Potential Repackaging-ban

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Our inside sources have informed that repackaging of cosmetics will be banned in the near future. Explained below are two possible solutions for foreign cosmetics entering China after repackaging-ban.

Recently, our sources have reliably informed us that some local FDAs have outlined that repackaging of cosmetics will be banned after licensing consolidation. (CL news) Repackaging is at present a widespread method for foreign cosmetics manufacturers to reduce costs and to circumvent required animal testing. Members of CAFFCI are paying close attention to the repacking ban and prepared to work in concerted effort to deal with it.

If the ban on repackaging is finally imposed, there will be two ways for foreign cosmetic companies to enter Chinese market.

• Import with original packaging

Though products imported with original packaging are more amenable to quality management they give rise to higher duty costs for manufacturers, because the tariff for packaged cosmetics is much higher than that of half-processed cosmetic products. Imported cosmetics in original packaging are obliged to a rigorous compliance process and compulsory animal testing.

• Establish domestic factories within China

With this method, manufacturers may avoid the high duty costs and other problems. The costs for establishing factories is also unaffordable for SMEs. Apart from the cost problem, quality management is also an obstacle for foreign enterprises to establish factories within China.

Here CBEC is not listed as a solution, because it is now experiencing tremendous reform under new policy and will in the near future be regulated under a more rigorous pre- and pro-market supervision.

Stay tuned for more relevant details on CL.

Reference link

China Likely to Ban Repackaging of Cosmetics