Source: China Economic Net China Economic Net Beijing July 14th News Recently, the Shanghai Municipal Market Supervision Administration issued an administrative penalty decision (Shanghai Market Supervision and Administration Bureau [2022] No. 152021002636). Shanghai Diecui Shi C

Source: China Economic Network

China Economic Network Beijing July 14th News Recently, the Shanghai Municipal Market Supervision Administration issued an administrative penalty decision (Shanghai Market Supervision and Administration Bureau [2022] No. 152021002636). Shanghai Diecui Shi Commercial Co., Ltd. has the following illegal acts: production and operation of cosmetics that do not comply with mandatory national standards, technical specifications, or do not comply with the technical requirements stated in cosmetic registration and filing materials. The Shanghai Pudong New District Market Supervision and Administration Bureau confiscated its illegal income of 1.1466 million yuan and confiscated its illegal products.

After verification, this ingredient is a substance limited to "Cosmetic Safety Technical Specifications" (2015 Edition) (limited to hair products and soaps). Up to the end, the value of the two cosmetics involved in the parties operating the above two cosmetics that do not meet safety technical specifications was 1.8147 million yuan (including: the value of Diecui Shi Men's Moisturizing Balance Cream Cosmetics was 1.1334 million yuan, and the value of Diecui Shi Men's Moisturizing Balance Toner Cosmetics was 681,300 yuan), and the illegal income was 1.1466 million yuan (including: the illegal income of Diecui Shi Men's Moisturizing Balance Cream Cosmetics was 687,000 yuan, and the illegal income of Diecui Shi Men's Moisturizing Balance Toner Cosmetics was 459,600 yuan), and the inventory of Diecui Shi Men's Moisturizing Balance Cream Cosmetics was 3,063 pieces and Diecui Shi Men's Moisturizing Balance Toner Cosmetics were 1,745 pieces. After the incident of

, the parties were promptly removed from the shelves and actively issued a recall announcement to recall the above two cosmetics.

The above-mentioned behavior of the parties violates the provisions of Article 6, Paragraph 2 of the "Regulations on Cosmetics Supervision and Administration". In view of the fact that the parties submitted filing of non-special-purpose cosmetics for the products involved in the case, the filing information certificates, filing labels, product packaging labels, product formulas and other materials all indicate the "tetrasodium hydroxyethylphosphate" component, which does not have the intention or act of concealing the product components; and after the incident, they took timely rectification measures such as removal and recall to actively eliminate and reduce the harmful consequences of illegal acts. At the same time, considering that the products involved have been on the market in Japan and neighboring countries for many years, overseas producers and domestic responsible persons have not received any reports or reports of personal health injuries caused by cosmetics. Taking into account the above circumstances into consideration, in accordance with the provisions of Article 60, Paragraph 2 of the "Regulations on Cosmetics Supervision and Administration" and Article 32, Paragraph 1 of the "Administrative Penalty Law of the People's Republic of China", the administrative penalties are reduced as follows:

1. Confiscated illegal income: 1.146,600 yuan;

2. Confiscated 3,063 pieces of Diecuishi men's moisturizing and balance cream cosmetics that do not meet the technical specifications of cosmetic safety and 1,745 pieces of Diecuishi men's moisturizing and balanced toner cosmetics.

Tianyan Check APP shows that the largest shareholder of Shanghai Diecui Shi Commercial Co., Ltd. is Japan Co., Ltd. DHC, holding 97.00% of the shares.

DHC official website shows that Shanghai Diecui Shi Commercial Co., Ltd. is its organizer and operating entity. In July 2003, DHC also began its development journey in mainland China and established Shanghai Diecui Shi Commercial Co., Ltd.

Article 6 of the "Cosmetics Supervision and Administration Regulations" stipulates that the cosmetics registrant and filing person are responsible for the quality, safety and efficacy of cosmetics.

Cosmetics producers and operators shall engage in production and operation activities in accordance with laws, regulations, mandatory national standards and technical specifications, strengthen management, be honest and self-disciplined, and ensure the quality and safety of cosmetics.

Article 60 of the "Cosmetics Supervision and Administration Regulations" stipulates that if any of the following circumstances occurs, the department responsible for drug supervision and administration shall confiscate illegal gains, cosmetics that are illegally produced and operated, and raw materials, packaging materials, tools, equipment and other items specifically used for illegal production and operation; if the value of cosmetics produced and operated illegally is less than 10,000 yuan, a fine of not less than 10,000 yuan and not more than 50,000 yuan will be imposed; if the value of goods is more than 10,000 yuan, a fine of not less than 5 times but not more than 20 times the value of goods is imposed; if the circumstances are serious, the order shall be ordered to suspend production and business, the filing department shall cancel the registration, or the original issuing department shall revoke the cosmetic license, and the legal representative or main person in charge, the directly responsible supervisor and other directly responsible persons shall be imposed on the legal representative or the main person in charge, the directly responsible supervisor and other directly responsible persons shall be imposed on the previous year to obtain income from the unit, and they shall be prohibited from engaging in cosmetic production and operation activities within 10 years; if a crime constitutes a crime, criminal liability shall be pursued in accordance with the law:

(I) Use raw materials that do not meet mandatory national standards and technical specifications, and packaging materials that are directly in contact with cosmetics, and new raw materials that are registered but not registered, or do not use raw materials in accordance with mandatory national standards or technical specifications;

(II) Production and operation of cosmetics that do not meet mandatory national standards and technical specifications or do not meet the technical requirements stated in cosmetic registration and filing materials;

(III) Failure to organize production in accordance with the requirements of cosmetic production quality management standards;

(IV) Change the use period of cosmetics;

(V) Cosmetic operators prepare cosmetics without authorization, or operate cosmetics that have deteriorated or exceed their service life;

(VI) Refusal to recall after the department in charge of drug supervision and administration orders it to implement the recall, or refuse to stop or suspend production or operation after the department in charge of drug supervision and administration orders it to stop or suspend production or operation.

Article 32 of the Administrative Penalty Law of the People's Republic of China stipulates that the parties shall be given a lighter or reduced administrative penalty if they are in any of the following circumstances:

(I) Actively eliminate or reduce the harmful consequences of illegal acts;

(II) Perform illegal acts under coercion or deception by others;

(III) Actively confess illegal acts that the administrative agency has not yet grasped;

(IV) Cooperate with administrative agencies to investigate and punish illegal acts and have made meritorious contributions;

(V) Other administrative penalty should be given a lighter or reduced administrative penalty if stipulated by laws, regulations and rules.

The following is the original text:

Administrative Penalty Decision of the Market Supervision and Administration Bureau of Shanghai Pudong New Area

Shanghai Municipal Supervision and Administration Bureau [2022] 152021002636

Bank input code: 2021002636

Party: Shanghai Diecui Shi Commercial Co., Ltd.

Subject qualification certificate name: Business license

Unified social credit code (registration number): 913100007524892320

Residence (address): Room 201, Building 1, No. 1578, Zhaogao Road, Pudong New Area, Shanghai

Legal representative (person in charge, operator): Yoshida Jiaming

After investigation, the person involved was the domestic responsible person for "Diecui Shi" and "DHC" brand cosmetics, and was responsible for the import and operation of "Diecui Shi" and "DHC" brand cosmetics in China, and assumed the corresponding product quality and safety responsibilities in accordance with the law. Two cosmetics imported and sold by the parties: Diecui Shi Men's Moisturizing Balance Cream [Imported Non-Special Use Cosmetics Registration Number is Guozhuang.com (Shanghai) 2018000676, imported in two batches on August 7, 2019 and February 12, 2020, and sold to the public from September 1, 2019], Diecui Shi Men's Moisturizing Balance Toner Cosmetics [Imported Non-Special Use Cosmetics Registration Number is Guozhuang.com (Shanghai) 2018000569, imported on July 31, 2019, and sold to the public from September 1, 2019], contains the "tetrasodium hydroxyethylphosphate" ingredient. After verification, this ingredient is a substance limited to the "Technical Specifications for Cosmetic Safety" (2015 Edition) (limited to hair products and soaps).Up to the end, the value of the two cosmetics involved in the parties operating the above two cosmetics that do not meet the safety technical specifications is 1814,733.60 yuan (including: the value of Diecui Shi Men's Moisturizing Balance Cream Cosmetics is 1133,440.00 yuan, the value of Diecui Shi Men's Moisturizing Balance Toner Cosmetics is 681,293.60 yuan), and the illegal income is 1146,618.50 yuan (including: the illegal income of Diecui Shi Men's Moisturizing Balance Cream Cosmetics is 687,026.50 yuan, and the illegal income of Diecui Shi Men's Moisturizing Balance Toner Cosmetics is 459,592.00 yuan), and the inventory of Diecui Shi Men's Moisturizing Balance Cream Cosmetics is 3,063 pieces and Diecui Shi Men's Moisturizing Balance Toner Cosmetics are 1,745 pieces.

The above facts mainly include the following evidence:

Evidence Group 1: Electronic information voucher for Diecui Shi Men's Moisturizing Balance Cream, Diecui Shi Men's Moisturizing Balance Toning Imported Non-Special Use Cosmetics Filing Electronic Information Certificate, Registration Label, Product Packaging Label Photos, Product Prescriptions and other information provided by the parties;

Evidence Group 2: On-site transcripts and photos on December 27, 2021 and DHC logistics period entry and exit records, DHC full-channel commodity sales details, damage reporting materials, settlement agreements, customs import goods declaration form of the People's Republic of China, purchase contracts, customs value-added tax special payment letters and financial information, etc.;

Evidence Group III: Remediation report and recall announcement provided by the parties, and copies of the settlement agreement; Evidence Group IV: "Inquiry Record" for the agent of the legal representative of the parties on December 7, 2021 and December 22, 2021;

Evidence Group V: Power of attorney and business license provided by the parties, authorization letter of DHC of DHC, Shanghai Diecui Shi Commercial Co., Ltd., DHC of the legal representative, and copy of the trustee ID card.

This Bureau served the "Notice of Administrative Penalty Hearings of Shanghai Jianpu [2022] 152021002636" to the parties on June 20, 2022, informing the parties of the facts, reasons, basis, content of the punishment and their rights to be made in accordance with the law. The parties waived their right to make statements, defenses and request a hearing within the statutory period.

The above behavior of the parties violates the provisions of Article 6, Paragraph 2 of the "Cosmetics Supervision and Administration Regulations" "Cosmetics producers and operators shall engage in production and operation activities in accordance with laws, regulations, mandatory national standards and technical specifications, strengthen management, be honest and self-disciplined, and ensure the quality and safety of cosmetics." In view of the fact that the parties submitted filing of non-special-purpose cosmetics for the products involved in the case, the filing information certificates, filing labels, product packaging labels, product formulas and other materials all indicate the "tetrasodium hydroxyethylphosphate" component, which does not have the intention or act of concealing the product components; and after the incident, they took timely rectification measures such as removal and recall to actively eliminate and reduce the harmful consequences of illegal acts. At the same time, considering that the products involved have been on the market in Japan and neighboring countries for many years, overseas producers and domestic responsible persons have not received any reports or reports of personal health injuries caused by cosmetics.Taking into account the above circumstances into consideration, in accordance with Article 60, Paragraph 2 of the "Cosmetics Supervision and Administration Regulations", "If any of the following circumstances occurs, the department responsible for drug supervision and administration shall confiscate illegal gains, cosmetics that are illegally produced and operated, and raw materials, packaging materials, tools, equipment and other items specifically used for illegal production and operation; if the value of cosmetics that are illegally produced and operated is less than 10,000 yuan, a fine of not less than 50,000 yuan will be imposed; if the value of goods is more than 10,000 yuan, a fine of not less than 5 times but not more than 20 times the value of goods is imposed; if the circumstances are serious, the order shall be ordered to suspend production and business, the filing department shall cancel the registration, or the original issuing department shall revoke the cosmetic license, and the legal representative or main person in charge of the illegal unit shall be deemed to be deemed to the legal representative or principal person in charge of the illegal unit shall be deemed to be , the directly responsible supervisor and other directly responsible persons shall be fined not less than 1 times but not more than 3 times the income they received from the unit in the previous year, and prohibited them from engaging in cosmetic production and operation activities within 10 years; if a crime is constituted, criminal liability shall be pursued in accordance with the law: ... (II) Cosmetics that do not meet mandatory national standards, technical specifications, or do not meet the technical requirements stated in the registration and filing materials of cosmetics; ... " and Article 32, Paragraph 1 of the Administrative Penalty Law of the People's Republic of China " "Party shall be given a lighter or reduced administrative penalty if any of the following circumstances occurs: ... (I) Actively eliminate or reduce the harmful consequences of illegal acts; ", the administrative penalty shall be reduced as follows:

1. Confiscation of illegal gains: 1146618.50 yuan;

now requires the parties to:

to bring this decision within 15 days from the date of receipt of this decision and hand over the confiscation (RMB) 1146618.50 yuan (one hundred and one hundred and one hundred and one hundred and one hundred and eight hundred and eight hundred and eight hundred and eight hundred and eight hundred and eight collection agencies) to the city’s Industrial and Commercial Bank or the specific collection agency of the Construction Bank. If a fine is not paid within the deadline, according to the provisions of Article 72, Paragraph 1 of the Administrative Penalty Law of the People's Republic of China, this Bureau may impose a fine of three percent of the amount of the fine every day. If the parties are dissatisfied with this decision, they may apply for administrative reconsideration to the People's Government of Pudong New District within 60 days from the date of receipt of this decision; or they may file a lawsuit directly with the People's Court within 6 months. If you do not apply for administrative reconsideration or file a lawsuit with the court within the deadline, and fail to perform the administrative penalty decision, this bureau may apply to the people's court for compulsory execution in accordance with the law.

Shanghai Pudong New District Market Supervision Administration

(Seal)

July 5, 2022