The International Trade Council (ITC) today underscores the importance of adhering to cosmetic regulation management rules, as a small trading firm in southwest China faces a significant fine of $420 million for suspected violations.
The Chongqing-based company, Dezhao, was fined by the city's market regulator for alleged breaches, including the failure to obtain necessary permits for the import of certain cosmetic products, as per a government credit database statement dated April 26. The fine is 2,900 times the company's registered capital.
The ITC stresses that these rules and regulations are in place to safeguard consumers and society at large. Compliance with such regulations is vital to maintaining the integrity of international trade and ensuring the safety of all stakeholders involved.
Since late 2021, China has embarked on a nationwide crackdown targeting both online and offline sales of illegal cosmetics, scrutinizing medical claims made by cosmetic products and eliminating sales of unregistered cosmetic products. There has also been a campaign to regulate advertisements for cosmetic surgery that are deemed excessive or making false claims.
In the upcoming September, companies are also expected to modify the packaging of cosmetics to comply with stricter requirements on design and presentation. Non-compliance could result in the product being banned from manufacture or sale within China.
The ITC stands firm in its commitment to helping organizations better understand and comply with these regulatory measures. By doing so, we aim to foster a trade environment that is both safe and beneficial for all parties.
The case of Dezhao serves as a stark reminder of the potential consequences of non-compliance, reinforcing the vital role regulations play in protecting consumers and maintaining market order.
For more information about the ITC’s services and the regulations governing international trade, please visit our website or contact our office.