Laws & Regulation: Top news on cosmetics regulation across the APAC region

1 - China’s new laws will hold e-commerce platforms responsible for counterfeit cosmetics

China has introduced new legislation​ that will hold online platforms such as Alibaba and JD.com accountable for fake goods sold by third parties on their websites, in a bid to curb the spread of counterfeits and strengthened their IP protection.

The e-commerce law was approved by the 13th National People's Congress, and will be take effect from January 1 next year.

Under the new legislation, “e-commerce platform operators must establish rules to protect intellectual property rights”​. Before, only individual merchants responsible are held liable when caught distributing fake goods.

2 - Cosmetics hit as Indonesia sets higher import taxes on more than 1,000 products

Cosmetics and personal care items will face a raise from 2.5% to 10%​ in Indonesian import taxes as the government goes on the defensive to support its weakening currency.

The government announced that it plans to impose a higher tax on 1,147 products in total, ranging from cars to shampoo.

Cosmetics and personal care items were among the items that faced the biggest hikes as the government rationalised that consumer goods such as soap, shampoo and cosmetics “can mostly be produced domestically.”

3- Cosmetics among Trump’s finalised list of Chinese goods affected by additional US tariffs

Cosmetic-related items were among the Trump administration’s finalised list of $200bn worth of imports subjected to an additional 10% tariffs​ effective September 24, which will be increased to 25% by the start of next year.

The list, which was published online by the Office of the United States Trade Representative (USTR), itemised cosmetics goods such as beauty powders, organic cosmetics, shampoos and soaps. Included in the 194-page document were ingredients needed to manufacture make up and skin care as well.

In its official statement, USTR stated that the action was in response to “China’s theft of American intellectual property and forced transfer of American technology”​.

4 - How to eradicate fake makeup trade: Environmental group makes its case

As the makeup black market continues to thrive in the Philippines, the EcoWaste Coalition believes that the only way to tackle the problem is with hard ball methods​ such as stricter border control, tougher sanctions and punishments that match the crime.

The pervasiveness of the problem is one of the biggest challenges to fighting the war on fake, often toxic makeup and skin care.

While there are no official statistics, it is not hard to see the range and magnitude of problem, said Thony Dizon, Chemical Safety Campaigner of the Philippines-based non-profit environmental group.

He told Cosmetics Design Asia that counterfeit beauty products could be easily found at popular shopping hubs around the country and online as well.

5 - Cosmetics face stricter regulation as China’s CBEC rules set to change

Cosmetic products imported via cross-border e-commerce (CBEC) into China look set to require registration​ with the China Food and Drug Administration (CFDA) before they can be imported into the country from next year.

Reliable sources have unofficially confirmed that China is certain to implement CBEC changes as early as January 1 next year.

The requirement would apply to products that have not be registered after the new regulations have been put in place, regardless of how long they have been sold on e-commerce platforms like Tmall and JD.