An Assessment of the Implementation of the ASEAN Cosmetic Product Notification Scheme: Focus on the Philippines

Abstract

Cosmetics as a consumer good is gaining an importance in the lifestyles of Association of Southeast Asian Nation (ASEAN) consumers. The experience of competition in ASEAN cosmetics has given impetus to contribute to the promotion of regional economic integration.

The aim of the study is to assess the benefits, outcome and impact of the regulatory scheme agreed by the ASEAN Consultative Committee on Standards and Quality-Cosmetic Product Working Group (ACCSQ-CPWG). The ASEAN Economic Ministers signed the Agreement on the ASEAN Harmonized Cosmetic Regulatory Scheme (AHCRS) at the 35th ASEAN Economic Ministers Meeting in Cambodia in September 2003. The objective of the ASEAN Cosmetic Directive (ACD) is to provide the framework for the harmonization and mutual recognition of the Standard, Technical Regulation and Conformity Assessment Procedures (STRACAP), to eliminate unnecessary Technical Barriers to Trade (TBT).

Through a questionnaire survey of key cosmetics industry players in the Philippines, the study generated primary data to analyze the impact of the ACD. The study also collected secondary data and information to support the analysis. The study obtained copies of relevant Food and Drug Administration (FDA) issuances, reports, slide presentations, and visited related websites on cosmetics. Library research was done to collect copies of ASEAN Secretariat Reports and minutes of the ASEAN Cosmetic Committee (ACC) meetings, standard source of industry information such as Euromonitor international. The study was supplemented by emails, non-structured interviews and communications with past and current delegates to ACCSQ-CPWG and/or ACCSQ-ACC.

The respondents in the survey confirmed significant milestones and accomplishments, benefits and impact after 10 years of implementing the cosmetic online Product Notification (PN, the e-Notification, by the Philippine FDA and the rest of the ASEAN Member State (AMS) National Regulatory Authorities (NRAs).

The study has the following conclusions: a) The ACCSQ-CPWG successfully designed the ACD PN scheme to eliminate TBT. b) ASEAN member countries through their respective NRAs have established online PN systems, which increased efficiency in processing time. The Philippine FDA instituted the most efficient e-Notification system in ASEAN. c) The cosmetic industry sector was instrumental in ensuring ASEAN regulatory harmonization. d) The cosmetic industry significantly benefited in terms of ease of doing business in the region and accessing the international market, advancing globalization. e) Up to this time, cosmetics is one of the most developed and earliest among the successfully regulated industry in ASEAN, showcasing the benefits and advantages of harmonization of standards, procedures and regulatory mechanisms in ASEAN. f) Consumers are the ultimate recipient of the benefits and advantages of the ACD PN System. g) ASEAN harmonization of STRACAP is possible when the public and private sectors cooperate and collaborate to ensure that free trade is sustainable in the region. h) Trade data and trends point towards sustained growth and development of the cosmetic industry sector and the ASEAN market.

By ensuring participation of the NRAs, the ASEAN Economic Community (AEC)-ACCSQ accomplished not only an increase in ASEAN trade in cosmetics, but also established a greater degree of assurance of consumer safety and welfare.

The study is recommending key points towards a proposed strategic action plan to further promote and achieve a Single Regulatory Regime for ASEAN on cosmetics. The proposed action plan will further sustain the initial gains during the 10 years of implementing the ACD PN.