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Monthly Recap: Asia-Pacific Cosmetic Regulatory Updates | August 2021

Chinese Mainland

1. Hainan Implements Source Code Management for Offshore Duty-Free Commodities

To strengthen the source management of offshore duty-free commodities and fight against the illegal activities of "commodity arbitrage," Hainan province officially implemented the Interim Measures for the Traceability Management of Duty-free Commodities in Hainan Free Trade Port on August 1, 2021. According to this new policy, starting from August 1, three types of offshore duty-free products, including perfumes and cosmetics, beverages, and mobile phones, shall be the first to be subject to source code management. By the end of December, all offshore duty-free products commodities shall be sold with a traceable source code affixed. (Reference Link)

2. China to Implement Supervision and Administration Measures on Cosmetics Manufacture and Operation

On August 2, 2021, China State Administration for Market Regulation (SAMR) released the finalized Supervision and Administration Measures on Cosmetics Manufacture and Operation, which will come into force on January 1, 2022. The Measures details cosmetic manufacture and operation management measures, with highlights including: (1) refining the responsibilities of cosmetics registrants, notifiers, and entrusted production enterprises; (2) optimizing the production license management system; (3) refining and clarifying the production management requirements; (4) refining and clarifying the operation management requirements; (5) strengthening the supervisory function of the administration department. (Chemlinked News)

3. Tmall Global Revises Its Direct Mail Service Standards

In response to the call for strengthening the supervision of e-commerce platforms proposed by the Supervision and Administration Measures on Cosmetics Manufacture and Operation, China's top cross-border e-commerce platform Tmall Global announced updates to the Tmall Global Direct Mail Service Standards on August 2, 2021. Two new rules are added to the revised standard, which took effect on August 13, requiring the merchants’ warehouse to have the ability to trace the source of goods, and the merchants to allow the platform to conduct regular quality tests on warehouses and goods inside. (Reference Link)

4. Guangdong Drug Administration Answers FAQs about Cosmetics Notification

On August 6, 2021, the Center for Certification and Evaluation of Guangdong Drug Administration issued a notice, answering frequently asked questions about cosmetics notification and the new notification platform, mainly pertaining to the required notification dossiers, the instructions for uploading pictures, the precautions for notification dossiers supplementation, and the technical requirements for cosmetic products. (Reference Link)

5. Tmall Global Revises Its Commodity Traceability Information Provision and Verification Service Specification

On August 9, 2021, Tmall Global issued a notice to update the Specification of Tmall Global Commodity Traceability and Traceability Information Verification Service, which modifies the categories of commodities subject to traceability, such as personal care, beauty, and maternal and infant products. The updated specification came into force on August 16, 2021. (Reference Link)

6. 45 Batches of Cosmetic Products Failed Package Inspections in Shanghai

On August 10, 2021, the Shanghai Administration for Market Regulation published the results of supervision and random inspections on the (excessive) packaging of cosmetic products and the net content of cosmetics and toiletries with quantitative packaging in 2020. In respect of the supervision and random inspections on the (excessive) packaging of cosmetic products, a total of 60 batches of products were sampled and inspected, of which 16 batches were unqualified. In respect of the supervision and random inspections on the net content of cosmetics and toiletries with quantitative packaging, a total of 90 batches of products were sampled and inspected, of which 29 batches were unqualified. (Reference Link)

7. China NMPA Clarifies the Differences Between “Acid-Containing Cosmetics” and Chemical Peeling

On August 11, 2021, China National Medical Products Administration (NMPA) published an article on its official website, explaining the definition of "chemical peeling (a kind of medical treatment)" and its possible adverse reactions, as well as the management requirements of "acid-containing cosmetics." This move provides consumers with an authoritative interpretation to distinguish between "chemical peeling" and “acid-containing cosmetics”, and reminds cosmetic manufacturers to avoid inappropriate claims such as "peeling/replacing skins" to prevent misleading consumers. (Reference Link)

8. China Clarifies the Processing Measures on Cosmetic Notification and Registration

On August 16 and 20, 2021, China NMPA introduced several processing measures to further standardize the cosmetic notification and registration work and push enterprises to fulfill their main responsibility, as shown below:

  • In regard to notification management, starting from August 26, 2021, only the domestic responsible person's legal person account is allowed to submit the notification information during the notification for imported general cosmetics.

  • In regard to registration management, special cosmetics whose registration applications have been accepted on the original registration platform before May 1, 2021, are subject to NMPA’s specific processing measures. (Chemlinked News)

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9. China Customs Rejected Six Batches of Cosmetics in July 2021

On August 17, 2021, the China General Administration of Customs (GAC) gave an update on the rejected food and cosmetics. In July, six batches of cosmetics imported from Taiwan of China, Germany, and Spain failed customs inspections. Reasons for rejections were excessive mold and yeast counts, unqualified labels, and the detection of prohibited ingredient—boric acid. (Reference Link)

10. SAMR Consults on the Provisions on the Prohibition of Unfair competition on the Internet

On August 17, 2021, China SAMR released the draft Provisions on the Prohibition of Unfair competition on the Internet for public consultation, planning to standardize the online trading markets and crack down on unfair competition behaviors on the Internet. The consultation will last until September 15, 2021. Contents related to the cosmetics sector include:

  • Operators shall not make false or misleading commercial promotions on the operators or products using live-streaming marketing, platform recommendation, etc.

  • Operators shall not make false or misleading commercial promotions on the sales performance, transaction information, business data, user evaluations of the operators themselves or their products;

  • Operators shall not commit acts that may damage the commercial reputation and commodity reputation of competitors. (Reference Link)

11. China to Regulate Live Streaming E-commerce Platforms

On August 18, 2021, the China Ministry of Commerce opened a public consultation on a draft industry standard, SB/T XXXXX—XXXX Specification for Management and Service of Live-Streaming E-Commerce Platform. The standard stipulates the live-streaming e-commerce management and service-related requirements of the live-streaming marketing platform, live-streaming main subjects, e-commerce transaction platform, etc. It applies to various Internet-based e-commerce platforms that sell products or provide services through live streaming but does not apply to cross-border live-streaming e-commerce platforms. (Reference Link)

12. China NMPA Approves Two New Cosmetic Ingredients

Nearly two months after the successful notification of the first two new cosmetic ingredients (NCIs), China NMPA updated the notification information of another two domestic NCIs on August 24The basic information is as follows:

Chinese Name

β-丙氨酰羟脯氨酰二氨基丁酸苄胺

雪莲培养物

INCI Name

β-Alanyl Hydroxyprolyldiaminobutyroyl Benzylamide

Tissue Culture of Saussurea Involucrata

CAS Number

/

/

Use Purpose

Skin Protectant

Antioxidant

Applicable Scope

  • Non-leave-on skin care products: cleaning product, massage product

  • Leave-on skin care products: toner, lotion, cream, essence, facial mask, etc.

  • Make-up products: foundation, primer

All kinds of cosmetics

Usage

0.00001%-1.0%

≤4%

Notifier

Shenzhen Winkey Pharmaceutical R&D Co., Ltd.

Dalian Practical Biotechnology Co., Ltd.

(Reference Link)

13. Guangzhou AMR Issues Two Batches of FAQs about Cosmetic Registration and Notification

On August 16 and 26, 2021, Guangzhou Administration for Market Regulation (Guangzhou AMR) issued two announcements, answering frequently asked questions about cosmetics registration and notification and the new registration and notification platform, mainly related to the precautions for using the new platform; the requirements for enterprises account cancellation, product notification change and dossiers supplementation; and the criteria for trademark used in cosmetics labels. (Reference Link)

14. China NMPA Initiates Reform on Simplifying Cosmetic Administration Approval

On August 30, 2021, China NMPA announced a detailed implement scheme for advancing the reform of “Separating Certificates from Business License." In the cosmetics sector, the reform mainly centers on the application and approval process of "cosmetics production licenses." The provincial medical products administration will optimize the approval service. There will be three improvements: 1) achieving the whole process of online processing, which allows online application and online approval, and adopting electronic certificates; 2) obtaining relevant information through inter-departmental information sharing and no longer requiring applicants to provide business licenses, etc.; 3) shortening the approval duration from 60 working days to 30 working days. (Reference Link)

15. China SAMR to Amend the E-Commerce Law

On August 31, 2021, China SAMR issued a notice for soliciting public comments on the draft amendments to its E-Commerce Law. The consultation will last until October 14, 2021. Stakeholders with any comments can send to the authority via wjsgfc@samr.gov.cn before the deadline. (Reference Link

Taiwan, China

South Korea

Japan

Malaysia

Thailand

India

Australia


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