Foreign cosmetics companies importing into Shanghai are benefiting from the new customs procedure for the China (Shanghai) Pilot Free Trade Zone, which cuts the time frame from three months to one week.
Cutting the red tape on the customs procedure is said to be helping foreign companies compete in the lucrative market thanks to products being available to consumers quicker – with the previous three month period deemed too long in a fluid fashion-led industry.
A positive move for those cosmetic and fragrance companies registered in the FTZ, the pilot scheme will run until December 2018, when it will be extended should it be successful.
Cosmetics are said to make up some 30.4 percent of the total imported beauty products for the Shanghai FTZ, with companies such as L’Oréal said to be making the most of the opportunity.
Indeed, the French powerhouse has a planned launch of a new Lancôme cleansing mask to make the most of the new customs procedure.
Yu Xiao, Director of the registration and claim affairs at the scientific and regulatory affairs department at L’Oréal China said, “For cosmetic products, three months is a long time in terms of fashion.
“Companies will be more competitive because of the new policy and consumers will be more in tune with international trends.”