What are the penalties for operating an unlicensed cosmetic business?

Unlicensed cosmetic business is a violation of the law. Failure to comply with regulations on cosmetic product announcement not only affects consumer rights but also reduces the reputation of organizations and individuals trading in cosmetics. This article aims to provide detailed information about relevant legal regulations and penalties for unlicensed cosmetic business practices.

Legal regulations on cosmetic product announcement in Vietnam

According to Article 3 of Circular 06/2011/TT-BYT, organizations and individuals responsible for bringing cosmetic products to market must comply with the following regulations:

• Organizations and individuals responsible for bringing cosmetic products to market are only allowed to put cosmetics into circulation when they have been granted a number to receive the Cosmetic Product Announcement Form by a competent state management agency and must take full responsibility for the safety, effectiveness and quality of the product.
• Competent state agencies will conduct post-sale inspection when products circulate on the market.
• Cosmetic product announcement fees are implemented according to current regulations.
• Organizations and individuals responsible for bringing products to market must have the function of trading cosmetics in Vietnam.
• The declaration of cosmetic product features (purpose of use of the product) must meet ASEAN guidelines on declaration of cosmetic product features.
• Compliance with these regulations not only ensures the legality of the product but also builds consumer trust in the business.

>>> See more: Cosmetic Advertising Content Confirmation Certificate – Issuance Procedures.

Cosmetic product declaration dossier

To perform cosmetic product announcements, organizations and individuals need to prepare documents according to the provisions of Circular 06/2011/TT-BYT. Profile includes:

• Cosmetic product proclamation form with proclamation data (soft copy of proclamation form): Make 2 copies.
• Original or validly certified copy of Power of Attorney from the manufacturer or product owner authorizing the organization or individual responsible for bringing the product to market to distribute cosmetic products in Vietnam (applicable to imported cosmetics and domestically produced cosmetics where the organization or individual responsible for bringing the product to market is not the manufacturer).
• For imported products, the Power of Attorney must be a copy with a certified signature and consular legalization according to the provisions of law, except in cases where consular legalization is exempted according to international treaties to which Vietnam is a member.
• Certificate of free circulation (CFS) for imported cosmetic products.
• Documents need to be prepared fully and accurately to avoid rejection or delay in the publication process.

Penalties for selling unlicensed cosmetics

Act of putting cosmetic products into circulation when the cosmetic product announcement receipt number has not been issued by a competent state agency or the cosmetic product announcement receipt number has expired but has not been re-announced, penalties will be imposed according to the provisions of Point a, Clause 19, Article 2 of Decree 124/2021/ND-CP. A fine from 20,000,000 VND to 30,000,000 VND applies to this violation.

In addition, authorities can apply remedial measures, including: Forced recall and destruction of infringing cosmetic products.

>>> See more: Where is the cosmetic business license registered? Procedure?

Consulting services and guidance on cosmetic product announcement at Long Phan Consulting Company

Long Phan Consulting Company provides reputable and professional cosmetic product announcement services, including:

• Consulting on legal regulations related to cosmetic product declaration.
• Instructions for preparing complete and accurate cosmetic product declaration documents.
• Representing customers to carry out cosmetic product announcement procedures at competent state agencies.
• Consulting on legal issues related to cosmetics business.

With a team of experienced experts, Long Phan Consulting Company committed to supporting businesses in completing cosmetic product announcement procedures quickly, accurately and in compliance with legal regulations, helping products easily access the market and enhance competitive advantage.

Frequently asked questions

Below are frequently asked questions about unlicensed cosmetic business that customers can refer to:

Is beauty product declaration mandatory for all cosmetics?

That’s right, according to current regulations, all cosmetics circulating on the Vietnamese market must be announced before being put on the market.

If violating the regulations on cosmetic declaration, in addition to fines, will the violating organization or individual be subject to any other additional penalties?

In addition to fines, violating organizations and individuals may also be subject to remedial measures such as being forced to recall and destroy infringing products.

What documents are needed to carry out beauty product announcement procedures?

Need to prepare the following documents: Cosmetic product announcement form, manufacturer’s authorization letter (if any), and certificate of free circulation (CFS) for imported products.

Which agency has the authority to issue beauty product proclamation receipt numbers?

The Drug Administration of Vietnam under the Ministry of Health is the competent authority to issue receipt numbers for cosmetic product announcements.

Is it possible to carry out cosmetic publication procedures online?

Currently, businesses can carry out procedures to announce cosmetics online through the national one-stop information portal.

What is the maximum fine for trading in undisclosed cosmetics?

According to Decree 124/2021/ND-CP, the maximum fine for this behavior is 30,000,000 VND.

Conclude

Compliance with cosmetic declaration regulations is a mandatory requirement when trading cosmetics in Vietnam. Customers should carefully study legal regulations and prepare complete documents before bringing products to market to avoid unnecessary violations. For detailed advice and support on cosmetic product announcement procedures, please contact Long Phan Consulting Company via the hotline: 0906735386.