Article 1 These Regulations are formulated to promote the innovative development of the cosmetics industry in Pudong New Area, foster new business models and formats in the cosmetics sector, and support the development of Shanghai as an international consumption hub, in accordance with the basic principles of relevant laws and administrative regulations and in light of the actual conditions in Pudong New Area.
Article 2 The Municipal People’s Government shall strengthen its leadership over the development of the cosmetics industry, deepen cooperation with relevant national authorities, undertake national innovation pilot programs, and coordinate major matters concerning the development of the cosmetics industry in Pudong New Area and other regions.
The People’s Government of Pudong New Area shall strengthen its leadership over the innovative development of the regional cosmetics industry, integrate and optimize resources, and comprehensively coordinate major issues concerning the innovative development of the cosmetics industry.
Article 3 The municipal drug supervision and administration department shall support and guide the innovative development of the cosmetics industry in Pudong New Area and carry out supervision and administration of cosmetics.
The municipal department of economy and information technology is responsible for promoting the planning, layout, and development of the cosmetics industry.
The municipal and Pudong New Area departments of development and reform, science and technology, commerce, market supervision and administration, intellectual property, human resources and social security, as well as the Shanghai Customs, shall, in accordance with their respective responsibilities and these provisions, be responsible for work related to the development of the cosmetics industry, the promotion of consumption, and trade facilitation.
Article 4 The Municipality shall establish a municipal and district-level consultation mechanism for the innovative development of the cosmetics industry in Pudong New Area.
Relevant departments at the municipal and Pudong New Area levels shall strengthen communication and coordination, and jointly consult and study matters involving multiple departments and fields in the innovative development of the cosmetics industry in Pudong New Area.
Article 5 The municipal science and technology department and the People’s Government of Pudong New Area shall support cooperation between cosmetics enterprises and universities, research institutes, and medical institutions to promote the deep integration of industry, academia, research, and medicine, enhance the industry’s innovation capacity and new product R&D capabilities, and advance the transformation of scientific and technological achievements in the cosmetics sector.
The municipal science and technology department and the People’s Government of Pudong New Area shall guide and support cosmetics enterprises in increasing R&D investment, carrying out technological innovation and professional talent development, fostering and developing high-tech enterprises, and supporting qualified cosmetics enterprises in establishing science and technology innovation bases.
Article 6: The municipal government and the Pudong New Area encourage cosmetic manufacturers to undergo digital transformation, promote the integration of industrial and consumer internet in the cosmetics sector, establish systems for the real-time collection and analysis of key data throughout the entire production process, and enhance quality and safety risk management capabilities.
Article 7 The municipal departments of economy and informatization, commerce, and drug supervision and administration, among others, shall, in accordance with their respective responsibilities, promote the strengthening of brand leadership, demonstration, cultivation, and development by cosmetics enterprises.
Pudong New Area shall take measures to promote the establishment of cosmetics brand incubation bases and provide services for brand R&D, design, publicity, and promotion.
Article 8 The municipal departments of commerce, economic and information technology, and drug supervision and administration shall, in accordance with their respective responsibilities, support and foster new models and business formats in the cosmetics consumption sector.
The municipal commerce department shall support digital consumption models in the cosmetics sector, build smart shopping demonstration scenarios for cosmetics, and foster benchmark e-commerce enterprises in the cosmetics industry.
Pudong New Area shall take measures to support the clustering of global cosmetics brands, encourage and guide the conduct of display, promotion, and experiential activities in comprehensive commercial districts, support the establishment of dedicated sales areas for domestic cosmetics in duty-free shops, and promote the development of the city as an international consumption hub.
Article 9: The Municipality encourages cosmetics enterprises to enhance their ability to meet consumer demand, conduct basic research in dermatology, explore production models characterized by small batches, multiple varieties, and high flexibility, and precisely develop cosmetics tailored to consumers’ individual needs.
Prior to the market launch of precisely developed general cosmetics, the city’s cosmetics filer shall conduct safety assessments and efficacy evaluations based on the product’s characteristics and submit filing materials in accordance with national regulations.
Article 10: Cosmetics filers and domestic responsible persons in this municipality may, at business premises established in Pudong New Area, provide on-site packaging and repackaging services for their filed general cosmetics (excluding children’s cosmetics, eye care cosmetics, and cosmetics using new ingredients) based on consumers’ personalized needs, or may produce such products themselves or commission local cosmetics manufacturers to do so.
Cosmetics filers and domestic responsible persons providing on-site packaging and repackaging services that involve direct contact with the contents of the cosmetics shall conduct a risk assessment of the quality and safety of the cosmetics and apply to the Pudong New Area Market Supervision and Administration Department for a production license. If the conditions are met, a Cosmetics Production License shall be issued. Cosmetics filers and domestic responsible persons shall establish a corresponding cosmetics production quality management system and regularly submit self-inspection reports on the production quality management system to the Pudong New Area Market Supervision and Administration Department.
Specific production licensing conditions and management requirements shall be formulated by the municipal drug supervision and administration department.
Article 11: The Municipality supports industrial park management bodies and third-party institutions in establishing cosmetic raw material supply service platforms to provide raw material supply and quality management services to cosmetic registrants, filers, and contract manufacturers in Pudong New Area.
Operators of platforms providing cosmetic raw material supply services shall establish a system for recording the inspection of incoming raw materials, strengthen the management of raw material testing, storage, and transportation, and maintain records of raw material procurement and supply.
Article 12: The Municipality supports relevant enterprises in lawfully providing packaging and labeling services for imported cosmetics to facilitate trade.
Where the packaging of imported cosmetics that comes into direct contact with the contents has already been labeled and is traceable, overseas cosmetic registrants, filers, or their domestic responsible persons may, within areas of Pudong New Area that meet relevant regulatory requirements, either independently or by entrusting other enterprises, mark the packaging that comes into direct contact with the contents with the Chinese name and expiration date, and package and affix Chinese labels in accordance with national regulations on cosmetic labeling; however, such actions must not come into contact with or expose the cosmetic contents.
Article 13: For cosmetic samples imported through Pudong New Area for registration or filing inspection, as well as cosmetics used for corporate research and development, non-trial purposes, or exhibition and display that are not intended for sale, if they meet the relevant requirements, they may be exempted from providing an import registration certificate for special cosmetics or filing information for general cosmetics, and may be exempted from import inspection.
Article 14: Exhibitors at the China International Import Expo and other specialized cosmetics exhibitions in this municipality may, upon approval by customs and other relevant departments, convert the original imported cosmetics into bonded goods within customs special supervision zones in the administrative area of Pudong New Area after the conclusion of the exhibition. They may organize promotional activities such as consumption promotion, and those meeting the relevant criteria may sell the products via cross-border e-commerce channels.
Article 15: The municipality encourages industry associations, enterprises, research institutes, and other entities related to the cosmetics sector to participate in the formulation of standards pertaining to innovative fields such as new cosmetic ingredients, new technologies, and new business models.
The intellectual property authorities of Pudong New Area shall utilize the patent fast-track examination service mechanism to provide preliminary examination services for enterprises applying for technology patents related to cosmetics, in accordance with relevant national regulations.
Article 16: The Municipality encourages specialized institutions to cultivate professional talent for the cosmetics industry and to increase the recruitment of high-level talent in specialized fields such as cosmetics safety assessment from both domestic and international sources.
Relevant departments of the Municipality and Pudong New Area shall support the development of third-party testing and inspection institutions and specialized R&D and production service platforms, support industry associations related to cosmetics in strengthening information exchange and cooperation along the industrial chain, and establish a research and development system for cosmetics utilizing China’s distinctive plant resources.
The municipal drug supervision and administration department and the Pudong New Area market supervision and administration department may entrust third-party professional institutions to conduct cosmetic quality and safety risk assessments.
Article 17: The Municipality shall establish and improve a regulatory mechanism that is inclusive and prudent, and compatible with the innovative development of the cosmetics industry.
The municipal drug supervision and administration department shall establish a mechanism for the exchange of cosmetic risk information with relevant departments of Pudong New Area and the Shanghai Customs, to achieve the sharing, early warning, and timely handling of cosmetic risk information.
The Pudong New Area market supervision and administration department shall strengthen daily supervision of cosmetic registrants, filers, contract manufacturers, and domestic responsible persons in Pudong New Area, and may formulate regulatory standards in accordance with the law based on the actual conditions of Pudong New Area and the requirements for industrial innovation and development.
Article 18: Where a person engages in on-site packaging or repackaging services in violation of Article 10 of these Provisions and such activities involve direct contact with the contents of cosmetics, the department responsible for drug supervision and administration shall confiscate the illegal gains, the illegally produced or operated cosmetics, and items specifically used for such illegal production or operation, including raw materials, packaging materials, tools, and equipment;If the value of the illegally produced or operated cosmetics is less than 10,000 yuan, a fine of not less than 10,000 yuan but not more than 50,000 yuan shall be imposed; if the value is 10,000 yuan or more, a fine of not less than five times but not more than twenty times the value shall be imposed; in serious cases, production or business operations shall be ordered to cease, and the filing shall be revoked or the cosmetic license shall be revoked in accordance with the law, and the legal representative or principal responsible person of the offending entity, as well as the directly responsible supervisors and other directly responsible personnel, shall be dealt with in accordance with the law.
For other violations of these provisions, where relevant laws or administrative regulations already provide for penalties, such provisions shall apply.
Article 19 These Provisions shall come into effect on August 1, 2022.
