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6 The UK in the Global Landscape
International
Free Trade Agreement (FTA) with Overseas Markets
It has been a priority for the UK Government to examine the terms under which the UK will be able to continue international trade and where new Bilateral or FTAs could be introduced, which has been supported by a greater collaboration of CTPA with UK Government Departments and their corresponding teams dedicated to trade policy.
Rules of Origin and
World Trade Organisation (WTO) Terms
In light of the negotiations currently taking place with different countries or regions in order to establish the FTAs needed to secure trade continuity, there is a need to review the Rules of Origin that would apply to cosmetic products and ingredients in order to qualify. Therefore, both CTPA and trade policy advisors from the UK Government have been engaging with the wider industry to make sure that the new Rules of Origin are securing the ability for UK companies to trade under the same or improved terms.
Indonesia
Halal Law 33/2014: as of 17 October 2019, Indonesia’s Halal Law came into effect. The Law requires mandatory certification and labelling for cosmetic products. The draft implementation rules state that the requirement will be phased-in in stages depending on the product type, with the requirement taking effect on cosmetic products from October 2021 and must be fully completed by 2026.
Dimensions (2D) Barcode: the Indonesian Government authorities (BPOM) published a law requiring companies placing cosmetic products on the Indonesian market to label on the outer pack a two-dimensions (2D) barcode, also known as a QR code. The BPOM barcode requirement came into force in June 2019.
Thailand
QR Code Regulation: the Thai Food and Drug Administration (FDA) is drafting a regulation requesting a QR code to be applied on cosmetic products. Whilst there is no clear timeline on implementation, several companies have received QR codes with their finalised registration documents. Companies have also been requested to place, on pack,
a Thai FDA logo in addition to the notification on pack, followed by the QR code.
Australia
Industrial Chemicals Rules Finalised: the Australian Industrial Chemicals Introduction Scheme (AICIS) is the new regulatory scheme for the importation and manufacture of industrial chemicals in Australia. AICIS will replace NICNAS on 1 July 2020. The new framework is expected to further align the legislation with international considerations and risk management decisions.
Review of the Information Standard – Cosmetics Ingredient Labelling: the Australian Competition and Consumer Commission (ACCC) is reviewing Trade Practices and is conducting this review to see if the protection and access to information is sufficient for consumers and therefore if the Standard should be amended.
China
Potential Waiving of Animal Testing for imported Non-Special Use Cosmetics Products: the Cosmetic Supervision and Administration Regulation (CSAR) was signed into law
at the end of 2019 and is expected to be published in 2020. This regulation equalises treatment for local and foreign manufactured products by including exemption for animal testing for non-special use products.
The new National Medical Products Administration (NMPA) will be responsible for overseeing cosmetic products, replacing the China Food and Drug Administration (CFDA) in this capacity.
Regulation on Cosmetic Inspection in Registration and
Filing: alongside the changes in the regulatory framework, China notified and implemented a new regulation concerning the requirements for notified/registered cosmetic products. This regulation introduces the criteria for testing for special and non-special cosmetics and is already being implemented.
India
Draft Cosmetic Rules Notified to WTO: during 2018, new draft cosmetic rules were published and CTPA collaborated with CE and IBHA (the Indian Beauty and Hygiene Association, the local trade association) to submit aligned comments. A final draft was notified to the WTO in July 2019 and again, trade associations participated together with the EU Commission. Official EU Commission comments were aligned with the industry perspective. The revised Cosmetic Rules are expected to be published and CTPA continues to be actively engaged in the discussions with the relevant stakeholders.
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