Two Cosmetic Vendors Trigger Hefty Fine

Takehome: Two vendors from Zhejiang Province were found selling imported cosmetic products without requisite attached Chinese labels, an apparent violation of “Regulation of Cosmetic Hygienic Supervision”, and are expected to be fined up to 10,000 yuan for each violation in addition to having all remaining products confiscated.

The foul practices were brought to light in a random inspection by local bureau of market inspection and supervision amid growing tension over cosmetic safety issues. The targeted products were immediately taken off the shelves and a heavy fine imposed which is rarely seen in China, where the financial punishment against enterprises guilty of similar deeds seldom exceeds 300,000 yuan.

According to the “Regulation of Cosmetic Hygienic Supervision”, use of a Chinese label is a top regulatory compliance priority which must be dealt with prior to sale of imported cosmetics in China. A cosmetic product without a Chinese label, or otherwise incompliant with Chinese requirements is often suspected of being counterfeit.

China’s cosmetic market is exploding at an astounding rate in the past decade while its regulatory system that oversees cosmetic manufacture, import and distribution lags far behind the economic miracle. The leading authority CFDA has adopted a bundle of measures to enforce stricter rules over the years. Yet pulling strain over two innocuous offenders was a response far less potent to tackle more underlying structural issues.