38 REGULATIONS
EU (27) RP
Sell in EU (27) only
Sell in UK only
Sell in UK & EU (27)
Retain current RP Appoint new UK RP No action required Prepare for UK CPNP Notifications
Retain current EU RP for EU sales
Appoint UK RP for UK sales
Amend packaging with new RP details
Prepare for UK CPNP Notifications
Amend packaging with new RP details
Figure 2: EU scenarios.
do, however, need to prepare for the new UK Cosmetic Regulation and, specifically, the UK CPNP. They also need to re-notify their products and allow their EU CPNP entity to be deactivated. While the initial cost of Brexit to these
businesses is minimal, the true price is the loss of mutual recognition and the ease in which they could expand into other EU member states. If it is likely that a UK business will want
to expand into the EU in the near future, then it should reach out to a third party Responsible Person based in the EU (English speaking countries such as Ireland may be preferable due to the PIF language requirements), or explore setting up their own EU entity.
Scenario 2: UK RP, selling only into EU After 31 December 2020, it will no longer be permissible to have a UK RP for products that are sold in the EU. For businesses in this position, it is necessary to establish an EU presence as a legal entity, or, alternatively, mandate Responsible Person services to an RP within the EU. EU CPNP notifications will need to be
transferred or re-notified under the new EU RP details by 1 January 2021. Product packaging will also have to be updated to reflect the correct RP details. There may be a transition period for relabelling, but this is not yet known.
Scenario 3: UK RP, selling to UK & EU Having a UK Responsible Person and selling products in both the UK and into EU
PERSONAL CARE GLOBAL
member states is one of the most difficult post-Brexit scenarios. Businesses not only have to prepare for the UK Cosmetic Regulation and UK CPNP (as in Scenario 1), but also establish an EU Responsible Person – either by setting up a company within the EU (with an EU address), or by employing a third party Responsible Person, based in the EU, to take on this role on their behalf (as per Scenario 2).
Scenario 4: EU RP, selling only into EU states From 1 January 2021, there will be no change to the regulatory situation for companies with an EU Responsible Person, which only sell into EU countries. Unfortunately, these businesses will lose access to the UK’s cosmetic market, which, incidentally, is the third largest in the EU (€11.1bn in 2018), behind Germany (€13.6bn) and France (€11.3bn).1 If they want to access the UK market
post-Brexit, they will need to have a UK entity to act as their Responsible Person.
Scenario 5: EU RP, selling only into UK After 31 December 2020, it will no longer be permissible to have an EU RP for products that are sold in the UK. For businesses in this position, it is necessary to either establish a UK presence as a legal entity, or mandate Responsible Person services to a third-party RP within the UK. EU CPNP notifications will no longer be
valid in the UK, so businesses will be required to enter new notifications on the UK CPNP, and product packaging will need to be
updated to reflect the correct RP details.
Scenario 6: EU RP, selling into UK & EU In this final scenario, the EU requirements are satisfied by the existing EU RP. However, an additional UK RP will need to be appointed, and they will also need to re- notify their products on the UK CPNP, as per scenario five (above).
Continued compliance It is vital that businesses understand which scenario they fall into and take the appropriate steps to stay compliant. Many small companies in the industry are still not ready and need to act now – or accept that they will be unable to trade in Europe (or vice versa) and are set to lose a lot of money. The regulatory changes that come into
force from 1 January 2021 may seem daunting, however, there are professional companies, like MSL Solution Providers, who can help businesses prepare. As a specialist supplier of Regulatory and Responsible Person services to the Cosmetics and Personal Care Industry, MSL is passionate about helping companies get set for business post-Brexit. Indeed, they have already helped hundreds of clients to do so, removing the stress and leaving them free to continue trading in both the UK and EU.
References 1
https://www.statista.com/statistics/382100/
european-cosmetics-market-volume-by- country
August 2020
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