An Upsurge in Imported Cosmetics Reveals New Legal Challenges

Background

Recent data shows that from January to July this year, the value of imported cosmetics was 1.67458 billion dollars, an increase of 36.1% over the same period last year. Korean imports account for 370.83 million dollars, a whopping 250.6% increase, making the country the second largest exporter of cosmetics to China behind France.

____________________________________________________________________________________________________________________________________________

Despite increased consumer demand for imported cosmetics in recent years which are marketed as “high quality”, “high-end” or “high-level”, their safety is not entirely guaranteed. In 2015 alone, there were a number of controversial cosmetic safety scandals involving imported cosmetics.

A major barrier to efficient cosmetic inspection and supervision in China is the current patchwork regulatory framework and the inconsistent application of standards by regulators and industry across the country. Experts have pointed out that to date theirs is no overarching law that regulates every single stage in a cosmetic’s life cycle, from production to circulation in the marketplace.

As a result, the competent authorities have no harmonized legal framework to reference in their regulatory enforcement activities. CFDA which is responsible for issuing the hygiene permit for imported goods and AQSIQ for inspection and supervision at ports are carrying out their legal actions by following the same “Measures of Cosmetic Hygiene Supervision”—an overarching regulatory framework that has undergone no significant change for the past 20 years. As cosmetic imports soar, improvement in the administrative protocols associated with filling, processing and labeling inspection at port are crucial in order to bring about any meaningful reduction in potential risks from imported cosmetics. Reform and improvement are also being advocated by industry, seen in the high number of cosmetic companies that participated in the public consultation for the newly revised “Measures of Cosmetic Hygiene Supervision” this July.

Another issue that is critical to business is the communication between different government bodies. In that regard, the situation is exacerbated by the fact that there are other government departments involved in administration of cosmetics. This uncertainty results in what companies often refer to as the “blind spot” in cosmetic regulation, which is the compartmentalization of vital legal information regarding legal inspection and regulatory compliance by certain ministries, compounded by poor interdepartmental communication and a certain degree of interdepartmental infighting.

There are signs of improvement that do inspire some optimism such as the new “Commercial Law” which aims to improve on uprooting the overblowing of cosmetic function to consumers.

Meanwhile, there are moves to strengthen the ability of professional institutes to offer systematic and inclusive training courses to allow dissemination of key information and procedural intelligence on navigating China’s cosmetic regulations. 

Reference: http://www.cbo.cn/bencandy.php?fid-4-id-33613-page-1.htm