A Comprehensive Guide to Cosmetics Registration in Vietnam

In recent years, there has been significant rise in Vietnam’s imports of cosmetic products. Based on data from National Trade Center (ITC) and the World Bank (WB), cosmetic products imports have doubled the amount from 2011 to USD 1.1 billion in 2016. What is more, it is predicted that the imports will reach USD 2.2 billion by 2020. To support the ever-growing imports, the country has cooperated with many countries through the signing of free trade agreements with the aim to reduce the tax price of imported cosmetics by 0-5%. It is also shown that perfumes dominated as the most imported cosmetic products at 55%, followed by make-up at 21% and other products like hair products and essential oils at 2-8%.

If you have not seized this promising opportunity, now is the best time to grab it as more foreign brands have made their market presence in Vietnam. According to the Society of Cosmetics in Ho Chi Minh City, over 400 cosmetic businesses have been registered in Vietnam and 90% of the market share are dominated by foreign brands, including Korean, European and Japanese.

This article provides a comprehensive guide of cosmetics registration in Vietnam, from authority you will be dealing with required documents to proclamation process.

Cosmetics Registration Authority in Vietnam

Cosmetics are defined as substances or a preparation used for touch with the outer parts of a human body (skin, hair system, fingernails, toenails, lips, and external reproductive organs) or teeth and mouth mucous membrane, whose purpose is to cleanse, aromatize, change the external characteristics or form, adjust body smell, safeguard body, or maintain the human body to always be in a good condition.

It is important to know that imported cosmetics registration in Vietnam is managed by Drug Administration of Vietnam (DAV), under Vietnam Ministry of Health (MOH), who issues safety regulations and certificates. And, every importer and exporter who wishes to conduct import and export activities are required to obtain relevant local certificates.

Framework of Regulations

To ensure quality assurance and product identification, it is mandatory for all imported and exported cosmetic products to be registered with MOH in Vietnam. However, it is worth noting that no specific regulations have been enacted yet for foreign companies that export cosmetics to the country.

Taxes and Tariff

It is also regulated that the applicable taxes include 10% of Vietnam’s Value Added Tax (VAT) and various tariff rates depending on countries. For import duty of cosmetic products, it is determined by the shipment’s CIF value of the shipment. VAT calculation on imported cosmetics is based on CIF value with the addition of import duty.

Required Documents to Register Your Cosmetics

The following documents are required:

• Proclamation report of cosmetics
• Company registration certificate (copy)
• Power of attorney of producer/owner of the product (original or notarized copy)
• Free sales certificate
• Product Information File

It consists of four parts:

• Product description and summary of administrative documents
• Product quality
• Materials quality
• Safety and efficiency

Cosmetic Products Safety

Cosmetics producers and owners are responsible to assess and evaluate product safety in accordance with the ASEAN safety guideline and attributes specified in Annex 06-MP. In this annex, there are restrictions set out for heavy metals and microbial parameters in cosmetic products. All other requirements concerning cosmetic ingredients can be found in the latest version of ASEAN Cosmetic Treaty.

Documents Issuance Process

All entrepreneurs who import products into Vietnam and sell them in Vietnamese market shall apply for DAV registration documents.

Applicants will receive registration number from the authority within three business days following full submission of required registration documents and registration fee payment.

Registration Number Validity

The registration number is valid for five years since the issuance date. If you wish to extend your product sales upon its expiration, you are required to register prior to expiration date. You will have to pay for the registration fee again.

Cosmetics Import

Cosmetic products with a valid registration number issued by the MOH are granted permission to be imported into Vietnam. Producers and owners of cosmetics that will import products are required to present the registration certificate to DAV.

Cosmetics Registration Requirements

According to Vietnam’s Law, notification numbers are not required on cosmetic packages. The information (must be clearly displayed and printed) that is required on the label, in accordance to ASEAN regulations, is as follows:

1. Name and functions of product
2. Complete ingredients formula
3. Instruction of usage
4. Country of origin (where cosmetics are made)
5. Name and address of company or individual responsible for product sales (must be written in Vietnamese)
6. Weight or volume
7. Manufacturing date or expiry date and best-use-before date (DD/MM/YYYY) -- for product stability less than 30 months, expiry date is mandatory.
8. Warning about usage safety
9. Manufacturing lot number

Cosmetics Proclamation: When Is It Required?

Since cosmetics are in direct contact with human body, they are strictly regulated to prevent any occurence of health-related issues. Special procedures are applied to both importers and producers to ensure usage safety. These procedures are regulated under cosmetic management Circular 06/2011/TT-BYT issued by MOH based on ASEAN Cosmetic Convention.

Cosmetic products that are produced in Vietnam or imported into the country are required to undergo proclamation procedure prior to being sold. Individuals and companies selling cosmetic products in the Vietnamese market are responsible for acquiring permissions through cosmetic product proclamation with the authority and ensuring the product quality, safety, and effectiveness. In some special circumstances, such as importing cosmetics for study, experiment, gift, etc., nevertheless, it is not necessary to obtain cosmetic product proclamation.

Domestic Cosmetic Products

For cosmetics sold domestically, receipt number of cosmetic product proclamation is to be attached with the products before they can be sold in the market. Individuals and companies must proclaim cosmetic products manually.

Once your cosmetics have fulfilled the quality standards for circulation, the dossiers for the sales of cosmetics then need to comply with other cosmetic quality requirements. The dossiers for proclamation of cosmetics domestically include:

• Proclamation report of cosmetics
• Company registration certificate (copy) of the organization responsible for circulating products into the market and products manufacturer
• Power of attorney of producer/owner of the product (original or notarized copy)
• Free sales certificate

International Cosmetic Products

Companies must fulfill the following steps for cosmetics to be imported into Vietnam:

1. Importers must proclaim products based on Circular 06/2011/TT-BYT

2. The dossier for proclamation includes the following:

- Proclamation report

- Copy of business registration certificate

- Original or notarized copy of letter of attorney

- Free sales certificate

3. Upon receiving proclamation receipt number, company must submit the receipt number to customs.

4. In addition to the customs, these documents are to be submitted too:

- Customs declaration (original)

- Sales contract (copy)

- Commercial invoice (copy)

- Certificate of origin form D (original)

If you have any needs or questions, please feel free to contact service@cirs-group.com.

Original article from Cekindo