The Different Access Requirements for Cosmetics in Some Famous Chinese On-line Shopping Centers

On 8 November 2014, China Food and Drug Administration (CFDA) issuedthe Cosmetics Supervision and Management Regulation (draft for comments) which stipulated that on-line cosmetic manufacturers and operators have to make real-name registration on the third-party platform. Besides, the third-party platform providers will be responsible for the management of this business. In this background, did the famous Chinese on-line shopping centers improve their cosmetic access requirements?

n The access requirements for cosmetic products in some famous Chinese on-line shopping centers. (The access qualification of products)

No.	On-line platform	The access qualification of products	Relevant links
1	T-Mall	The requirements for flagship stores in T-mall (The stores directly operated by the own brand (R or TM state))： « Domestic cosmetics： ①No registration requirements for non-special use cosmetics . Special use cosmetics have to submit the approval number of hygiene license. ②Product testing reportwithin a year. This report including required test items has to be issued by inspection body above provincial level. ③Hygiene license for cosmetics manufacturers. ④Manufacture license of cosmetics. ⑤The copy of business license of cosmetics manufacturer. ⑥OEM contract required for contract manufacture of cosmetics. ⑦Trade mark license or acceptance notice of trademark registration. « Imported cosmetics： ①Record keeping certificate for imported non-special use cosmetics and the hygiene license for imported special use cosmetics. ②The customs declaration issued by the Custom of People’s Republic of China within 2 years. Hygiene certificate of goods entry-exit inspection and quarantine within 2 years.	http://www.tmall.com/go/chn/mall/investment-promotion.php?spm=a2220.1740896.11002.2.9Sdl5a#floor2
2	Jingdong	« Domestic cosmetics： ①Website screenshot of record-keeping filled and issued on the CFDA website or electronic files of the record keeping certificate. Thehygiene license of domestic special use cosmetics. ②Product testing reportwithin a year. This report including required test items has to be issued by inspection body above provincial level. ③Hygiene license for cosmetics manufacturers. ④Manufacture license of cosmetics. ⑤Business license of cosmetics manufacturer. ⑥OEM contract required for contract manufacture of cosmetics. ⑦Trade mark license ⑧Distributor authorizationwhich guarantees that can retrospect from the brand owner or manufacturer to Jingdong. « Imported cosmetics： ① Record keeping certificate for imported non-special use cosmetics and the hygiene license for imported special use cosmetics. ②The customs declaration issued by the Custom of People’s Republic of China within 2 years. ③Hygiene certificate of goods entry-exit inspection and quarantine within 2 years.. ④Trade mark license. ⑤Distributor authorization which guarantee that can retrospect from the brand or manufacturer to Jingdong.	http://help.jd.com/Vender/viewQuestion-1004-2600.html
3	Vipshop	« Cosmetic manufacturers or brand owners meeting the cosmetic industrial standards issued by authority website. « The third party quality inspection system	http://vis.vip.com/stipulate/vis/16
4	Amazon	« Domestic cosmetics： Manufacturing license of cosmetics and hygiene license for cosmetics manufacturers « Imported cosmetics： The customs declaration and the certificate of goods entry-exit inspection and quarantine.	http://www.amazon.cn/gp/feature.html?docId=1503818
5	The 1st shop	« The requirements for flagship stores in the 1st shop (The stores directly operated by the own brand (R or TM state))： « Domestic cosmetics： ①No registration requirements for non-special use cosmetics. Special use cosmetics have to submit the approval number of hygiene license. ②Product testing reportwithin a year. This report including required test items has to be issued by inspection body above provincial level. ③Hygiene license for cosmetics manufacturers. ④Manufacture license of cosmetics. ⑤OEM contract required for contract manufacture of cosmetics. ⑥Trade mark license or acceptance notice of trademark registration. « Imported cosmetics： ①Record keeping certificate for imported non-special use cosmetics and the hygiene license for imported special use cosmetics. ②The customs declaration issued by the Custom of People’s Republic of China within 2 years. Hygiene certificate of goods entry-exit inspection and quarantine within 2 years.	http://xue.yhd.com/showlist/rulenews/2/ZSBZ.html?premenu=1/rulenews/2/ZSBZ.html
6	Suning	« Domestic cosmetics： ①No registration requirements for non-special use cosmetics. Special use cosmetics have to submit the approval number of hygiene license. ②Product testing reportwithin a year. This report including required test items has to be issued by inspection body above provincial level. ③Hygiene license for cosmetics manufacturers. ④Manufacture license of cosmetics. ⑤The copy of business license of cosmetics manufacturer. ⑥The completed supply chain started from the brand owner and the number of grades in this chain should not over 3. (theauthorization within the system of brand owner system can be regarded as the same grade.) « Imported cosmetics： ①Record keeping certificate for imported non-special use cosmetics and the hygiene license for imported special use cosmetics. ②The customs declaration issued by the Custom of People’s Republic of China within 2 years. ③Hygiene certificate of goods entry-exit inspection and quarantine within 2 years ④The documentary evidenceofsupply channel should be issued by counters and responsible person of brand owner in China or operators or consignee on customs declaration.	http://sop.suning.com/sel/shc/showHCDetail.htm?itemId=1406154967850&category_code=R8236#path01

n The access requirements for cosmetic operators in some famous Chinese on-line shopping centers. (The qualification of enterprises and tariff standard)

No.	On-line platforms	The qualification of enterprises	Tariff standard
1	T-mall	①The requirements for flagship stores in T-mall： ①The copy of business license of cosmetic enterprises. ②The tax registration certificate of cosmetic enterprises. Nationalor local tax certificate are both acceptable. ③Organization code certificate. ④The approval license of bank account opening. ⑤The copy of ID of legal representative (both sides). ⑥The copy of ID of shop representative (both sides). ⑦Trade mark license or acceptance notice of trademark registration. ⑧ Authorization issued by enterprises to Alipay. ⑨Product list.	①Security deposit：according to the difference of store properties and brand state, security deposit can be divided into 3 grades: 50,000RMB, 100,000RMB and 150,000RMB. ②Annual fee：the annual fee refers to the first grade, dividing into 30,000RMB and 60,000RMB. ③Technical service fee：a certain proportion of sales value. (not includefreight )
2	Jingdong	①Enterprises legally established for more than 1 year withregistered capital more than 500,000RMB. ②Trade mark license with brand state is R. ③ One shop cannot operate domestic and imported cosmetics at the same time.	①Rate：5%-6% of sales value. ②Annual fee of using the platform: 1000 RMB/year. ③Security deposit：30,000RMB or 60,000RMB.
3	Vipshop	Enterprises have at least one of following qualifications ： ①Famous manufacturers. ②Authorized sole agent of a famous brand. ③Sole distributor of a famous brand. ④Branch company of a famous brand. ⑤Affiliated agencyof a famous brand. ⑥Chinese local office of a famous brand.	Rate：around 30% of sales value.
4	Amazon	①The copy of business license ②The national tax registration certificate ③Selling private brand commodity has to provide：Trade mark license or acceptance notice of trademark registration. ④Agents or distributors have to provide ：completed authorizing chain, authorization：the documents certify that you have the rights to sell the products of this brand. Trade mark license or acceptance notice of trademark registration. ⑤ Selling imported products has to provide the customs declaration issued by the Custom of People’s Republic of China	① The fee under the independent distribution：8%of sales value (including the price of commodity and distribution fee) ②The fee under the logistics of Amazon：8% of sales value +Logistics fees +storage charge.
5	The 1st shop	The requirements for flagship stores： ①The copy of business bicense ②The tax registration certificate of cosmetic enterprises. National or local tax certificate are both acceptable. ③Organization Code Certificate. ④The copy ofID of legal representative (both sides). ⑤The copy ofID of applicant (both sides). ⑥Trade mark license or acceptance notice of trademark registration.	①Security deposit：at least 20,000RMB; ②Annual fee of using the platform：740RMB/month; ③Technical service fee:6%sales value ④Quality inspection fee： The qualification of stores in the 1^st shop will be checked by third-party institutes. The fee will be 300RMB for the first brand and 50RMB for each one more brand.
6	Suning	①The copy of business license ②The copy oforganization code certificate. ③The copy of tax registration certificate. ④The copy ofID of legal representative (both sides) ⑤General taxpayer certificate. ⑥ Operators have to be the brand owner or to provide brand authorization certificate and representative authorization. ⑦Having basic e-commerce operating team and completed after-sales service ability. ⑧SOP mode company should have more than 100,000RMB registered capital, and SWL mode company should have more than 500,000RMB registered capital.	①Security deposit：10,000RMB; ②The use fee of YeePay: 0.6% for quick payment, 0.4% for others. ③Consumer protection fund : 0.1%; ④Commission：3%-4%; ⑤Annual fee of using the platform：12,000RMB for SOP and 6,000RMB for SWL.

Through the comparison of these access requirements for cosmetics in famous Chinese On-line shopping centers, we found that they are quite similar in registration of enterprises and brand but different on cosmetic classified management which has not align with CFDA management system. The Shanghai local standard-the Management Standard of the Access Qualification of Enterprises in E-Commerce Platforms-has entered into force since 1 December 2014. This standard stipulated the details of the access and quit of enterprises, the changing or refunding, after-sales services, etc. It shows that the supervision for on-line sellers is becoming more and more normalized. CIRS team advises relevant enterprises to make preparation in advance.

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