On January 1, 2021, the strictest "Cosmetic Supervision and Administration Regulations" will be implemented, which will replace the "Cosmetic Hygiene Supervision Regulations" implemented on January 1, 1990 to end the quality confusion in the Chinese cosmetics market in recent years.

China is the second largest cosmetics market in the world. The size of the Chinese cosmetics market in 2018 was RMB 410.479 billion. It is expected to exceed RMB 500 billion by 2021. Still, there is still room of growth of nearly 6 times in terms of per capita consumption of cosmetics.

Promote healthy development

1. The former regulations stipulate that all new cosmetic raw materials need to be approved for use. The new regulations distinguish functional new raw materials from other new raw materials. New cosmetic raw materials with functions of antiseptic, sun protection, coloring, hair coloring, freckle removal and whitening, are used after registration, and other new raw materials are used for online filing.

2. The former regulations have no provisions on the time limit for approval, and the new regulations defines the time limit for registration approval to about 113 working days.

3. The former regulations have no regulations on the validity period of registration and filing of new materials. The new regulations require that new raw materials need to be reported for use and safety every year, and will be included in the catalog of used raw materials after the expiration of 3 years.

4. The new regulations require that special cosmetics registration or general cosmetics filings require the submission of product formulas or full ingredients of products, and the post-event supervision shall be changed to pre-event supervision.

5. The new regulation stipulates that the special cosmetics registration certificate is valid for 5 years, and an application for renewal of registration must be submitted 30 working days before the expiration date.

6. The new regulations stipulate that cosmetics registrants and filers can produce cosmetics by themselves or entrust other companies to produce cosmetics. Cosmetics registrants and filing parties claim responsibility for the quality, safety and efficacy of cosmetics. Cosmetics operators are not allowed to prepare cosmetics by themselves.

Accurate hit on counterfeits

1. The strictest punishment The new regulations stipulate serious illegal acts such as engaging in cosmetics production without permission, producing and selling unregistered special cosmetics, using prohibited substances, adding illegal additives. A fine of up to 30 times the value of the goods may be imposed, and the relevant responsible person shall be fined 1-5 times the income of the previous year, and will be banned from the industry for 5 years or even a lifetime.

Overseas cosmetics registrants and filers need to designate corporate legal persons within China to handle cosmetics registration and filing, to assist in the monitoring of cosmetic adverse reactions, and to implement product recalls. If the designated corporate legal person fails to fulfill its responsibility, the maximum penalty is RMB 500,000, and the main person in charge of the penalty is banned from the industry for 5 years.

Where overseas cosmetics registrants and filing parties refuse to enforce the punishment, they will be banned from the industry for 10 years.

2. Product traceability The cosmetics producers and operators are required to establish purchase inspection and acceptance records to ensure traceability of products and raw materials.

3. Expansion of responsible persons Beauty salons and hotels use cosmetics in their operations or provide consumers with cosmetics have to fulfill the obligations of cosmetic operators.

4. Ban on false propaganda It is forbidden to express or imply that cosmetics labels have a medical effect. The label with defects but no quality and safety problems shall be ordered to be corrected.

False publicity of cosmetics ads shall be punished in accordance with the Advertising Law of the People's Republic of China

5. Supervision obligations of online platforms: Online platforms selling cosmetics and cosmetics e-commerce platforms have management and supervision responsibilities. If “e-commerce platform operators fail to fulfill relevant obligations, they shall be given warnings, fines, be ordered to suspend business operations, and other relevant administrative penalties.

Toothpaste and soap Toothpaste is regulated in accordance with the provisions of ordinary cosmetics in the new regulations. After evaluating the efficacy of toothpaste filers in accordance with national standards and industry standards, they can claim that toothpaste has the effects of preventing caries, inhibiting plaque, resisting dentin sensitivity, and reducing gum problems.

Soap does not apply to these regulations, but the new regulations apply to those that claim to have special cosmetic effects.