Cosmetics makers irked as draft law framed without consultation

Cosmetics and toiletries producers in Bangladesh have voiced their disappointment as the draft of the Drugs and Cosmetics Act, 2023 was prepared without holding consultation with stakeholders.

The cabinet approved the draft of the Act on February 6.

If the draft is passed by the parliament in its current form, cosmetics producers will have to take the licence from both the Bangladesh Standards and Testing Institution (BSTI) and the Directorate General of Drug Administration (DGDA).

But this will make the business complex, said producers, adding that many other provisions of the Act would increase the cost of doing business as well.

“We want to do business within the regulatory framework. The government can frame a specific law for cosmetics after consultation with stakeholders,” said Zaved Akhtar, managing director of Unilever Bangladesh Ltd.

Generally, drug and cosmetics producers are regulated by separate regulators in most countries. But suddenly, the draft law indicates that cosmetics will be under two regulators, said Mehfuz Zaman, managing director of Millat Chemical.

“The government approved the draft law but stakeholders from the cosmetics sector don’t know that they have been included in the law.”

A number of provisions of the draft law would hamper the expansion and investment of the industry and many producers may even go out of business, he said.

“Taking approvals from both regulators will increase the complexity for the industry.”

Their observations came at a seminar on “Proposed Drug and Cosmetics Act 2023: Bangladesh Perspective and Future Impact”, organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

Price approval, advertisement, licence and wholesale licence are not applicable for cosmetics globally. Cosmetics are regulated mostly under directives whereas drugs regulations are stringent, said Prof Md Nurnabi, chairman of the applied chemistry and chemical engineering department at the University of Dhaka.

“Cosmetics are different from drugs, so a completely separate regulatory framework and mechanism are required for cosmetics and drugs,” he said while presenting a paper.

Md Abdus Sattar, director-general of the BSTI, said there can be a separate law for the cosmetics segment.

He said the BSTI has fourth-generation technology in its laboratories across the country.

“We have a good reputation for providing standardisation service.”

Some 80 per cent of the employees of the BSTI are technicians and most of them are efficient. “So, our service level is efficient and at par with the international level,” Sattar said.

“But in order to raise the service quality to an acceptable level, an authority will need at least 10 years. The government can keep faith in the BSTI when it comes to regulating the cosmetics sector.”

Unilever Bangladesh’s Zaved Akhtar said fast-moving consumer goods are sold through 12 lakh shops across the country, so it would be a huge task to provide licences to them.

“On the other hand, FMCG is an innovative segment and a huge number of products hit the markets every month. So, securing approval from both the BSTI and the DGDA will be a difficult task as well.”

FBCCI President Md Jashim Uddin said both drugs and cosmetics sectors need separate laws since their manufacturing process is different.

“If they are treated under the same law, cosmetics producers will face difficulties. During the formulation of the draft law, the government should have consulted at least with the FBCCI.”

Health and Family Welfare Minister Zahid Maleque said the government sometimes receives allegations that cosmetics products contain harmful ingredients.

Good companies are not producing cosmetics that have harmful ingredients. Rather, bad companies make inferior products, he said.

“So, the government has felt the necessity to take some initiatives and the cosmetics sector is being brought under rules and regulations. Some problems may arise while formulating laws and they will be resolved through talks. There is nothing to be worried about.”

Maleque said he would ask the parliamentary standing committee to consult with stakeholders in its next meeting before submitting the draft law to the parliament.

The BSTI has 14 technical committees for the cosmetics segment and it follows five guidelines that are accepted in many countries, said Md Arafat Hossain Sarker, assistant director of the BSTI.

Because of the draft law, cosmetics producers will come under two regulators for the same tasks, he added.

Naser Ezaz Bijoy, president of the Foreign Investors Chamber of Commerce and Industry, and MA Momen, vice-president of the FBCCI, also spoke.

According to research organisations LightCastle Partners and Allied Market Research, an estimated $1.23 billion worth of skincare and personal care products were sold in Bangladesh in 2020 and the amount is expected to hit $2.12 billion by 2027.

Bangladesh imports cosmetics worth around Tk 10,000 crore every year, said importers.