Korea to Amend Enforcement Rule of Dangerous Goods Safety Control Act

Takehome:

Cosmetics sold, displayed and stored in stores are excluded from the range of flammable products. After government reviewing the amendment, it is likely to be implemented at the end of 2018 or in early 2019.

During the review process, the definition of flammable cosmetics may be clarified. For example, a nail product containing more than 60% alcohol and acetone will be considered as flammable cosmetics. The standard of dangerous goods will be specified to avoid unclear regulation scopes. It also helps cosmetic enterprises to determine whether their products are dangerous goods or not.

The draft of Korean Dangerous Goods Safety Control Act regulates cosmetics containing alcohol (such as fragrance, body spray, aftershave, body oil, etc.) as dangerous goods and it is a requirement to install dangerous goods storage facilities (fire protection) for these cosmetics. Hazardous materials testing should be carried out for these items. Also, it is a requirement to test these cosmetics before importation to determine whether they are dangerous or not.

Impact on Cosmetic Industry

1. Testing cost

These stipulations have caused great repercussions in Korean cosmetic industry. Currently the detection cost of cosmetic products sold in the Korean market is at least 120 billion won per year. Use of testing institutions to determine whether a cosmetic product is a dangerous product or not requires considerable staffing, in addition to considerable financial and time investment. 

2. Testing Lab

There is only one official lab (Korea Fire Institute) approved by authority to conduct the hazardous substance testing. As Korea Fire Institute is the only lab to conduct this testing, a long delay is expected when cosmetic enterprises apply for testing at the same time.

3. Trade Barrier

If imported cosmetics are subject to the same testing requirements, it may impose a new trade barrier as this requirement is not commonly implemented in the regulatory frameworks of other countries and regions. 

The meeting on June 29, 2018 at Cheong Wa Dae put off the implementation of Dangerous Goods Safety Control Act until December 2019. This Act will be revised in 2019 to minimize negative impact on the cosmetic industry.