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REPOR T




            This paper presents some important topicscosmetics brands
            should be aware of when registering or filing their cosmetics
            for general trade in China.


            HAVE A CLEAR STRATEgy ABouT youR
            DOMESTIC RESpONSIBLE AgENT (DRA)
            Cosmetics brands must have a local representative in China
            that is a Chinese entity in order to be approved for general
            sales. Known as the Domestic Responsible Agent, the DRA
            submits the regulatory approval application and is the point-
            of-contact for the brand with the regulator for continuing
            compliance and communications.
            Applicants have 3 broad options (see Figure 1):
              1. Own subsidiary
              2. Third-party agency service
              3. Distributor.
            Establishing your own subsidiary is an appropriate
            long-term strategy but it can be expensive and           BE AWARE oF SPECIAL VS gENERAL
            time-consuming until volumes are large. The subsidiary   CoSMETICS APPRoVAL PRoCESSES
            must also employ compliance staff who are up to date     Cosmetics are classified into “special” and “general” cosmetics
            with regulations and can respond to regulator requests.   for the purposes of approval for general trade in China.
            Selecting a distributor as your DRA initially appears as   • “Special” cosmetics include sun protection, hair dyes, hair
            the easy option, but the author cautions companies to      perming, anti-hair loss, and freckle removal and whitening,
            do so only after fully considering the available options.   and cosmetics that claim new effects.
            As the DRA is the entity that submits the application dossier   • “general” cosmetics are cosmetics other than “special”
            which contains detailed and confidential information about   cosmetics.
            the products, such as the formula and production process,   “general” cosmetics go through a filing or notification
            this choice has major intellectual property protection risks.   process that in the author’s experience takes 3-6 months,
            What’s more, the DRA also controls the online account which   including document preparation and sample shipment to
            must be set up to submit the approvals. This means that you   China for local testing. Their certificates are valid indefinitely.
            will continue to be wholly reliant on the distributor’s continued   Whereas “Special” cosmetics go through a registration
            cooperation for adding/deleting arrival ports and consignees   process that takes 8-12 months in the author’s experience.
            (especially other distributors), or to change the DRA itself.   Their registration must be renewed every 5 years.
            Selecting a third-party agency is a sensible option to retain   For all cosmetics categories, the approval process
            your independence and better manage IP risks.            has an order to follow: firstly appoint the DRA, as legal
            It’s a neutral solution allowing you to maintain full control   representative person for overseas companies as described
            over your NMPA online account, and guarantees            above, secondly submit all required documentation
            your independence for future decisions, including        and test reports to the provincial MPA or NMPA (special
            adding/deleting ports and consignees, or DRA changes.    cosmetics). Once the acceptance is published online, the
            Another practical point to consider: the overarching     newly approved cosmetics can be imported into China.
            regulator for cosmetics in China is the National Medical
            Product Administration or NMPA, however there are
            also provincial-level regulators called Medical Product
            Administration (MPA), such as the Beijing or Hubei MPA.
            This is important because notifications or filings of “general”
            cosmetics (see next point to understand this definition)
            are made to one of the provincial-level MPAs.
            However, if you wish to change your DRA for
            a given cosmetic product from one province
            to another this will require the DRA in the first province
            to cancel the product’s notification certificate.
            Then you will need to apply to re-notify in the new province.
            This clearly means you need a fully cooperative
            DRA from the outset.



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