Cosmetics registration in China for commercial distribution

China is currently the world's most promising market for cosmetics. According to the China Perfume and Cosmetics Association, in 2024, the total volume of transactions linked to the cosmetics market in China will be around 10,738 billion yuan, an increase of 2.8% compared to 2023.

According to Statiste data, growth potential remains high for the next few years, given that the annual amount spent by a Chinese on cosmetics is currently just 41 USD, compared with 333 USD for an American, and between 225 and 250 USD for inhabitants of European countries such as France and the UK, as well as Japan and South Korea.

Do you have a successful cosmetics brand and would like to develop your business in the Chinese market? Before putting your products to market, you need to understand the few regulations applicable to cosmetics imported into China.

Article 16 of the “Regulations on the Supervision and Administration of Cosmetics” (Decree No. 727 of the State Council of the People's Republic of China) stipulates that cosmetics used for hair dyeing, perming, freckle removal and bleaching, sun protection, hair loss control and cosmetics claiming new functions are special cosmetics. Cosmetics other than special cosmetics are considered as ordinary cosmetics.

Special cosmetics must be registered with and approved by the National Medical Products Administration (NMPA) before being placed on the market. Once a product's registration has been validated, a 5-year license is issued to market it.

For ordinary cosmetics, a simple application (without approval) at the NMPA is required to obtain a Certificate of Deposit, which is sufficient to market your products classified as ordinary cosmetics.

Foreign cosmetics manufacturers wishing to enter the Chinese market and who have no establishment in China must appoint a legal entity as their local representative. In most cases, Chinese distributors are appointed as local representative. Some companies with special licenses may also offer their services as local representative.

The local representatives are required to fulfil obligations such as assisting with side reaction monitoring, implementing product recalls and assuming corresponding quality and safety responsibilities in accordance with the distribution agreement

Our firm helps forgein companies with the following tasks:

• Drafting, modifying and negotiating the distribution contract,

• Classify and document the type of cosmetics (special or ordinary) according to Chinese regulations,

• Find the most appropriate local representative if the distributor in China has not yet been identified,

• Prepare the necessary documents in China to file your product with the Chinese NMPA,

• Manage the files filed with the Chinese NMPA,

• Formalize change of local representative if necessary,

• Filing the annual activity reports which are obliged since 2022.

Zhengnan GONG

Attorney at Paris and Chinese Bars