Early January 2021 there was a case of an oversea (Japanese) cosmetic distributor in China having a penalty.

Early January 2021 there was a case of an oversea (Japanese) cosmetic distributor in China having a penalty. 

The distributor purchased and stored the Japanese brand’s beauty masks, shipped them to their Shanghai business address, and started selling those products on the Chinese Taobao store. The product specifications are 5 pieces / box, 148 RMB each box. The distributor has sold 37 boxes, and there were 48 boxes in stock still waiting for sale before the incident happened.

Then the distributor got in trouble because after verification, NMPA found the mask has no record of having any imported certifications for either special cosmetics nor general cosmetics.

 

NMPA punishment the parties as follows:

1. Penalty 42,330 RMB

2. Confiscated of 5,476 RMB illegal earnings by selling those non-NMPA recorded cosmetic products

3. Confiscated 48 waiting list of cosmetics products

 

According to the CSAR article 17, 61:

 

Article 17 Special cosmetics shall be produced or imported only after they have been registered by the NMPA under the State Council. Domestic general cosmetics shall be filed with the NMPA of the people's government of the province, Autonomous Region or municipality directly under the central government where the notifier is located before being put on the market for sale. The import of Imported general cosmetics shall be filed with the NMPA under the State Council before the import.

 

 

Article 61 Under any of the following circumstances, the Department in charge of National Medical Products Administration shall confiscate the illegally obtained or illegally produced cosmetics, and may confiscate the ingredients, packaging materials, tools, equipment and other articles specially used for illegal production and operation; if the value of illegally produced cosmetics is less than 10,000 yuan, a fine of 10,000 yuan to 30,000 yuan shall be imposed concurrently; if the value of illegally produced cosmetics is more than 10,000 yuan, a fine of 3 times to 10 times the value shall be imposed concurrently; If the circumstances are serious, it shall be ordered to stop production and business, the filing department shall cancel the filing, or the original license issuing department shall revoke the cosmetics license，and the legal representative or main responsible person, the directly responsible person in charge and other directly responsible persons of the illegal unit shall be fined not less than 1 time but not more than 2 times the income they obtained from their unit in the previous year, and prohibited to engage in cosmetics production and operation within 5 years:

(1) the sale, operation or import of general cosmetics that have not been put on record;