New Regulation Bulletin

1. New FDA Registration Regulations for U.S. Cosmetics

Cosmetics Without FDA Registration Will Be Banned from Sale.According to the Modernization of Cosmetics Regulation Act of 2022, signed by President Biden on December 29, 2022, all cosmetics exported to the United States must be FDA-registered starting from July 1, 2024.

This new regulation means that companies with unregistered cosmetics will face the risk of being banned from entering the U.S. market, as well as potential legal liabilities and damage to their brand reputation.

To comply with the new regulations, companies need to prepare materials including FDA application forms, product labels and packaging, ingredient lists and formulations, manufacturing processes, and quality control documents, and submit them promptly.

2. Indonesia Cancels Import License Requirement for Cosmetics

Emergency Implementation of Trade Minister’s Regulation No. 8 of 2024.The emergency promulgation of Trade Minister’s Regulation No. 8 of 2024, effective immediately, is considered a remedy for the massive container backlog at various Indonesian ports caused by the implementation of Trade Minister’s Regulation No. 36 of 2023 (Permendag 36/2023).

At a press conference on Friday, Coordinating Minister for Economic Affairs Airlangga Hartarto announced that a variety of goods, including cosmetics, bags, and valves, will no longer require import licenses to enter the Indonesian market.

Additionally, although electronic products will still require import licenses, they will no longer need technical licenses. This adjustment aims to simplify the import process, speed up customs clearance, and alleviate port congestion.

3. New E-commerce Import Regulations in Brazil

New Tax Rules for International Shipping in Brazil to Take Effect on August 1.The Federal Revenue Office released new guidelines on Friday afternoon (June 28) regarding the taxation of imported products purchased through e-commerce. The main changes announced concern the taxation of goods obtained through postal and international air parcels.

Goods purchased with a value not exceeding $50 will be subject to a 20% tax. For products valued between $50.01 and $3,000, the tax rate will be 60%, with a fixed deduction of $20 from the total tax amount.This new tax regime, approved alongside the “Mobile Plan” law by President Lula this week, aims to equalize the tax treatment between foreign and domestic products.

Special Secretary of the Federal Revenue Office Robinson Barreirinhas explained that a temporary measure (1,236/2024) and a Ministry of Finance ordinance (Ordinance MF 1,086) were issued on Friday regarding this matter. According to the text, import declarations registered before July 31, 2024, with amounts not exceeding $50, will remain exempt from tax. According to legislators, the new tax rates will take effect on August 1 of this year.