Preparation work and inspection and quarantine related requirements for enterprises to import cosmetics

According to the “Cosmetics Labeling Management Regulations”, cosmetics refer to the application of smear, spray, alcohol or other similar methods to the human body (skin, hair, fingernails, lips and teeth, etc.) to achieve cleaning, maintenance, beautification and modification. and products with the purpose of changing the appearance, or correcting the odor of the human body, and maintaining good condition. Therefore, companies need to be fully prepared before importing cosmetics and understand the relevant inspection and quarantine requirements.

Registration management of imported common cosmetics

According to Article 4 of the “Regulations on the Supervision and Administration of Cosmetics” that came into effect on January 1, 2021, the state implements classified management of cosmetics and cosmetic raw materials according to risk levels. Cosmetics are divided into special cosmetics and ordinary cosmetics. The state implements registration management for special cosmetics and registration management for ordinary cosmetics. Cosmetic raw materials are divided into new raw materials and used raw materials. The state implements registration management for new cosmetic raw materials with higher risk levels, and implements filing management for other new cosmetic raw materials.

Domestic consignee registration

Domestic consignees who import cosmetics for the first time should submit a filing application to the customs at the place of their industrial and commercial registration before the cosmetics are imported, and select “Imported Food” through the “Internet + Customs” imported food and cosmetics importer and exporter filing system or “Single Window” “Cosmetics Importer and Exporter Registration” option to apply for registration and obtain the registration qualification for domestic consignees of imported cosmetics. Domestic consignee registration of imported cosmetics must provide the following materials:

• “Consignee Registration Application Form”;
• Copies of business license, unified social credit code registration certificate, legal representative identity certificate, foreign trade operator registration form, etc. and submit the originals for verification;
• Enterprise quality and safety management system;
• Organizational structure, department functions and job responsibilities related to cosmetics safety;
• Types of cosmetics to be operated and storage locations;
• If you have been engaged in the import, processing and sales of cosmetics within two years, relevant instructions (cosmetic varieties and quantities) should be provided.

Relevant requirements for first import

Declaration requirements

Domestic consignees of imported cosmetics or their agents shall declare in accordance with the relevant regulations of the General Administration of Customs, including but not limited to the name, brand, country (region) of origin, specification, quantity/weight, production batch number/ The production date and other contents should be declared one by one.

First import certification

First-time imported cosmetics refer to cosmetics without previous import records. Past import records and other supporting materials should be provided by the domestic consignee of imported cosmetics. Anyone who cannot provide true and valid previous import record certification materials shall be deemed as first-time imported cosmetics. Products with completely identical overseas production enterprises, product names (including product brands), formulas, overseas shippers, domestic consignees and other information are considered to be the same product.

Special requirements for first-time import

According to the relevant provisions of Article 8 of the “Measures for the Supervision and Administration of Inspection and Quarantine of Imported and Exported Cosmetics” (General Administration of Customs Order No. 243), the first-time import of special-purpose cosmetics must obtain an imported cosmetics health license approval document issued by the State Food and Drug Administration. Imported cosmetics for non-special purposes must obtain a registration certificate issued by the State Food and Drug Administration.

Port customs review requirements when declaring imported cosmetics for the first time

The following documents should be reviewed for cosmetics imported for the first time:

• For cosmetics with national health licenses, the electronic data of imported cosmetics health licenses should be automatically compared and verified by the system;
• For cosmetics that are registered by the state, the registration certificate should be reviewed;
• Cosmetics that do not have health licenses or registrations implemented by the state shall review the following materials:
  • Relevant safety assessment information on substances that may have safety risks issued by institutions with relevant qualifications;
  • Certifying documents or certificates of origin that allow production and sales in the production country (region).

Requirements for Chinese tags

When enterprises produce Chinese labels for imported cosmetics, the Chinese labels should comply with standards and regulations such as the “General Labeling of Cosmetics Instructions for Use of Consumer Products” (GB 5296.3-2008) and the “Measures for the Supervision and Administration of Inspection and Quarantine of Imported and Exported Cosmetics”. The Chinese label of cosmetics should cover basic information such as the name of the cosmetic, ingredient list, net content, date marking, approval number, country of origin (region), agent or distributor information, etc.

Inspection and Quarantine

After the customs accepts the declaration, it will conduct inspection and quarantine on the imported cosmetics in accordance with the mandatory requirements of my country’s technical specifications, including on-site inspection, sampling and retention, laboratory inspection, certification, etc. If the goods pass the inspection and quarantine, the customs will issue a “Passenger Goods Inspection and Quarantine Certificate” before they can be sold and used.

If the goods fail to pass the inspection and quarantine, the customs will issue a certificate of failure. If the items related to safety, health, and environmental protection are unqualified, the customs will order the parties concerned to destroy them, or issue a return processing notice, and the importer will handle the return procedures. If other items are unqualified, they can undergo technical processing under customs supervision. They can only be sold and used after passing the re-inspection and quarantine.

Customs declaration and follow-up management of imported cosmetics

Customs declaration

(1) Determine the HS code of the relevant cosmetics, check the regulatory conditions, tax rates, etc., and determine whether it is necessary to apply for special import certificates based on the regulatory conditions;
(2) Check or ask the overseas manufacturer for the detailed declaration elements of this imported cosmetic, such as product name, use, material, brand, model, global trade item code, chemical substance registration code, and others (non-essential declaration elements, please base on the actual situation Fill in the report);
(3) Determine the tax rate, whether consumption tax needs to be paid, etc.

Follow-up management

Import records and sales records

The consignee should establish cosmetics import records and sales records, and assign a dedicated person to take charge. The relevant information records must be completed within 2 working days of obtaining the “Inbound Goods Inspection and Quarantine Certificate” and product sales respectively.

Follow-up supervision

The customs will track and supervise the handling of unqualified imported cosmetics, and supervise and guide consignees of imported cosmetics to establish cosmetics import and sales records.

Analysis on new tax rate policy for cross-border e-commerce retail imported cosmetics

The new version of the cross-border e-commerce retail import tax policy has been officially implemented. Among them, the new tax rate for cosmetics has attracted much attention. Cross-border e-commerce sellers need to understand the specific content of these new policies in order to better respond to market changes and improve their competitiveness.

The cosmetic categories targeted by the new tax rate include cosmetics, beauty and skin care products, lipstick, mascara, eye shadow, etc. According to the new policy, the tax rate for cross-border e-commerce retail imported cosmetics will be divided into two levels: cosmetics tax rate and cosmetics comprehensive tax rate. Among them, the cosmetics tax rate applies to cosmetics import retail transactions with sales of less than 50,000 yuan, and the tax rate is 10%. For cosmetics import retail transactions with sales exceeding RMB 50,000, the cosmetics comprehensive tax rate will apply. The comprehensive tax rate for cosmetics includes import value-added tax, consumption tax and personal income tax, with a tax rate of 30%.

How to solve the problem of cross-border e-commerce import of cosmetics?

Problems with cross-border e-commerce import of cosmetics

The cross-border e-commerce import of cosmetics has the following problems:

• It is difficult to guarantee product quality. Since there are many different sellers and channels on the cross-border e-commerce platform, the quality of cosmetics is difficult to guarantee, and there are risks such as substandard quality, counterfeiting, and expiration;
• Customs clearance is difficult. Cross-border e-commerce import of cosmetics requires customs clearance procedures, including customs declaration, payment of tariffs, inspection and quarantine, etc. Due to the safety and health issues involved in cosmetics, customs clearance is difficult and requires time and cost;
• Higher customs duties and VAT. Cross-border e-commerce imports of cosmetics need to pay tariffs and value-added tax, and the tax rates are relatively high, which affects the price competitiveness of cosmetics on cross-border e-commerce platforms;
• After-sales service is difficult to guarantee. Due to the special nature of cosmetics, after-sales service is difficult to guarantee, and there are problems such as difficulty in returns and rights protection.

Countermeasures

To address the issue of cross-border e-commerce import of cosmetics, the following measures can be taken:

• Choose formal channels and brands. Consumers should choose regular cosmetics brands and channels and avoid buying fake and inferior products to ensure the quality and safety of the products;
• Pay attention to customs clearance policies. Consumers and sellers should pay attention to changes in customs clearance policies and understand relevant procedures and fees for better customs clearance;
• Optimize logistics and distribution. Sellers should optimize logistics and distribution methods, improve logistics efficiency, and ensure the timely and safe delivery of goods;
• Reduce costs and improve selling price competitiveness. Sellers can reduce costs, improve selling price competitiveness, and attract more consumers through reasonable price strategies and promotional activities;
• Provide high-quality after-sales service. Sellers need to provide high-quality after-sales services, including returns, rights protection, customer service, etc., to protect consumers’ rights and satisfaction and establish brand image and reputation.