Challenges and Solutions for Cosmetic Imports in Brazil
The importation of cosmetics is a complex activity that requires strict compliance with applicable regulations and standards.
Even though our trade balance in this segment is negative (we import more cosmetics than we export), companies wishing to import cosmetics into Brazil face numerous challenges.
There are several requirements to comply with regulatory bodies, such as obtaining an Authorization for Company Operation (AFE), securing all necessary registrations, ensuring correct product labeling, and acquiring an Import License (LI).
Non-compliance with these requirements may cause delays in the approval of the LI for these items, which in turn affects customs clearance.
In this article, we will discuss the challenges associated with this import process and present solutions to streamline it, from obtaining the LI to designing your import logistics.
But first, we need to go through some concepts. Keep reading to learn more about:
- Importing Cosmetics in Brazil: Regulations and Standards
- Why are there Delays in Import License Approvals?
- Technical Analysis and Evaluation
- Grade 1
- Grade 2
- Technical Analysis and Evaluation
- What are the Solutions to Streamline Cosmetic Imports?
- Early Planning
- Understanding Regulations and Document Organization
- Active Monitoring
- Conclusion
Importing Cosmetics in Brazil: Regulations and Standards
According to the regulatory body’s definition, cosmetics are classified under NCMs 3303, 3304, 3305, 3306, and 3307 and are divided into two grades based on their use, handling, or potential risk to the consumer.
This classification includes hygiene products, makeup, perfumes, deodorants, body creams, and more.
The importation of cosmetics is subject to specific regulations, such as the Collegiate Board Resolution (RDC) No. 7/2015 of the Brazilian Health Regulatory Agency (ANVISA). These regulations ensure the safety, quality, and efficacy of cosmetics sold in the country.
However, meeting these requirements can make the process of importing cosmetics more complex and result in delays in obtaining the Import License (LI).
Additionally, companies looking to sell these products must have specific certifications and authorizations. You can check the requirements to import these products with WM on our Cosmetics segment page.
Why is there a delay in Import License Approval?
Some of the main reasons for this delay include:
Technical Analysis and Evaluation
ANVISA conducts a thorough review of the documents and information provided to ensure the product meets regulatory requirements. These range from the packaging in which the product was stored to whether the labeling matches its characteristics and complies with its classification grade, which falls into two categories:
Grade 1
Products that do not initially require proof of efficacy and do not need detailed information regarding usage and restrictions due to their nature.
Examples include:
- Perfumes
- Makeup foundations
- Body and face creams
- Facial or body soaps
Grade 2
Cosmetics that have specific indications and require proof of efficacy and safety for the end user, along with usage instructions, precautions, and restrictions.
These include:
- Hydrogen Peroxide
- Tanning lotions
- Children’s cosmetics
- Insect repellents
- Anti-wrinkle products
Additionally, ANVISA establishes 18 technical requirements for the manufacturing of these products and 13 requirements for their general labeling.
Moreover, some products require more detailed information on their labels, such as aerosols, hair straighteners, neutralizers, or hair dyes.
This process can be delayed due to high demand, technical complexity, or failure to meet these specified requirements.
You can find the full list of cosmetics and the specific requirements by grade in Resolution RDC No. 7/2015.
What are the solutions to streamline the importation of cosmetics?
Before starting the import process, the company must follow these steps:
- Sanitary License (Municipal or State), ensuring the structure meets local requirements;
- AFE (Operating Authorization) for the import and distribution of cosmetics;
- Product registration according to its classification (Grade I or Grade II);
- Contract with a warehouse authorized to distribute cosmetics;
- Contract with an authorized carrier;
- Labeling in accordance with ANVISA rules before importation.
Advance Planning
Starting the import process early and considering potential delays in the approval of the Import License (LI) is key. With proper planning, the company can prepare for possible delays and reduce the time the goods are held, especially if flagged in the Yellow Channel.
WM can provide optimized tax, logistics, and regulatory planning to make the nationalization of these products less bureaucratic. We analyze your tax situation to reduce costs and possess the AFE and necessary registrations for imports.
With WM, your company can import cosmetics either through the order-based or account-and-order modality, aiming to reduce the ICMS rate through tax benefits like those in Espírito Santo.
READ MORE: How to Import in Espírito Santo with Cost Reduction
Stay Updated on Regulations and Document Organization
Keeping up-to-date with the regulations and norms for cosmetic products helps avoid mistakes and rework. Getting help from a company like WM, which has extensive knowledge of the requirements and all necessary authorizations, is one of the most practical ways to nationalize products.
We also organize all import documents so that the LI is approved and the products are cleared efficiently.
Active Monitoring
Constantly monitoring the status of the LI with ANVISA and ensuring that all requirements are met is essential for successful product nationalization.
We use advanced technology and dashboards to keep you updated in real time on all stages of the import process, providing additional information promptly if necessary.
Have you listened to our WM Cast episode on Cosmetic Imports? We invited Déborah Gomes, director at Fullfarma, for an insightful discussion on the nationalization of these products — check it out!
Conclusion
Even though importing cosmetics may experience delays in obtaining the Import License, this process does not need to be more bureaucratic than it already is.
With WM’s support, it is possible to speed up the process and reduce delays. We comply with all regulatory requirements in the sector and help companies import cosmetics without administrative difficulties.
Our extensive reach across 14 Brazilian states and seven tax benefits that reduce the ICMS rate make importing cosmetics more cost-effective for your company.
This way, you can focus on your core business while using our technology tools to monitor every stage of the import process. Our specialists are ready to assist you!
Looking to start a cosmetics import project? Get in touch with us!