ITA Helps Maintain Market Access for U.S. Companies in the Korean Cosmetics Industry
April 26, 2013
(ITA)
The Department of Commerce’s International
Trade Administration (ITA) helped the
Washington, D.C.-based Personal Care Products
Council (PCPC) advocate for better terms under
the labeling and advertising provisions in the
Korean Cosmetics Act (KCA) which would have
otherwise negatively impacted the U.S.
cosmetics industry in South Korea.
Why It Matters
Without ITA’s assistance, the trade association
and its member companies may not have had
adequate time to adjust to Korea’s new labeling
and advertising guidelines, which could have
delayed shipments and added costs.
The Problem
In 2011, the Korea Food and Drug Administration
(KFDA) issued draft Enforcement Guidelines for
labeling and advertising under the KCA. These
guidelines included a six-month grace period
prior to implementation. U.S. cosmetics
companies would have had to delay shipment and
incur additional costs in order to fully comply
within the short implementation period.
Furthermore, it was unclear whether products
imported prior to the implementation date
needed to meet the requirements as outlined in
the KCA and its Enforcement Guidelines.
The Solution
Over several months, ITA and other U.S.
Government (USG) agencies pressed the Korean
Government to consider the U.S. cosmetic
industry’s concerns over the proposed
implementation date of KCA. The USG team raised
the issue during the U.S.-Korea Bilateral Trade
Consultations in Washington and Seoul, and
during meetings at the World Trade Organization
Technical Barriers to Trade Committee in
Geneva. In early 2012, the Korean Ministry of
Health and Welfare promulgated final KCA
Enforcement Guidelines, which contained a
one-year grace period (until February 2013) to
allow cosmetic imports to adjust to the new
labeling guidelines. With ITA’s assistance, the
U.S. cosmetics industry earned sufficient time
to prepare and adapt to the new changes.
Working closely with U.S. companies, ITA
creates, expands, and defends market access for
U.S. goods and services overseas through the
Trade Agreements Compliance Program. “We
promote policy that develops a more favorable
business climate for U.S. companies in global
markets; we employ commercial diplomacy to
resolve trade barriers; and we leverage our
bilateral and multilateral trade agreements to
ensure our trading partners live up to their
commitments so that our businesses can compete
on a level playing-field.” - Assistant
Secretary for Market Access and Compliance,
Michael C. Camuñez.”
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