According to foreign media sources, Indonesian seller Santy (33) is on trial at the Tanjung Pinang District Court for selling various cosmetics brands without a distribution license.
Prosecutor Bambang Wiradhany said in the indictment that the defendant Santi had previously been arrested by the Batam City BPOM and Tanjung Pinang City POM Factory for distributing cosmetics without permission at the Lotus Root Market** in Jalan Sei Jang, Bukit Bestari District, Tanjung Pinang City.
After the authorities searched the defendant's house, they found thousands of noneBusiness License, Distribution License, Processed Food License, and Business LicenseFood, cosmetics, health products and medicines and other pharmaceutical products.
In addition, evidence of a number of products without a distribution license was found. Previously, the defendant made a profit of IDR 2 million per month by selling these illegal items through Shopee.
According to Indonesian regulations, BPOM certification is required for the sale of the above related products, and it is illegal to sell uncertified products.
In fact, many sellers are still holding on to the luck mentality, taking risks to go to sea to sell illegal goods, and sell without a license!
From July 2021, Shopee Indonesia will implement the latest regulations for cosmetics, food, and drug-related categories, and products must meet the following 3 points, otherwise they will not be able to be displayed and sold on the platform.
1) Obtain BPOM certification;
2) The packaging of the product shall display the certified BPOM ID label;
3) Apply to the platform according to SKU and obtain the qualification for sale.
In recent years, under the influence of favorable policies and the growth of overseas markets, the speed of Chinese enterprises going overseas has been accelerating. According to the statistics of China Customs, in 2022, the import and export scale of China's cross-border e-commerce will be 21 trillion yuan, an increase of 71%, accounting for 4% of the total import and export value of goods in China9%。
At present, there are more than 100 cross-border e-commerce pilot zones in China. According to the goal proposed in the "14th Five-Year Plan for E-commerce Development", by 2025, the cross-border e-commerce transaction volume will reach 25 trillion.
However, while cross-border e-commerce is growing, cross-border merchants are also facing many thorny problems.
In recent years, the scale of the e-commerce market in Southeast Asia is continuing to expand, showing an upward development trend, for Chinese enterprises, Southeast Asia is a hot market to go overseas, more and more enterprises choose to go to Southeast Asia, enter the Southeast Asian cross-border e-commerce market. But there is one very important issue that many businesses tend to overlookCompliance Risk
Enterprises going overseas are not only facing opportunities, but also many new challenges.
There are two main levels of legal issues involved in enterprises going overseas: domestic compliance and foreign compliance. Enterprises going overseas need to have a bilateral awareness of being regulated, after all, compliance is an important prerequisite for enterprises to successfully go overseas. For today's cross-border e-commerce industryOperate in complianceThe trend is no longer negligible.
Due to the different requirements for cross-border transactions in different countries, merchants who are not familiar with local laws and regulations or do not have a good understanding of the rules are prone to mistakenly cross the "red line", such as the sale of local prohibited items in overseas markets or the infringement of overseas intellectual property rights. However, some merchants are purely knowingly guilty, such as the above case, a merchant in Indonesia has repeatedly challenged the bottom line of the law, sold without a license, and was tried again.
Some enterprises do not have the corresponding qualification certificates, business licenses, etc., although in a short period of time, on the surface, it seems that the sea has been successful, but there are still fatal safety hazards, resulting in heavy losses.
Therefore, legal issues and compliance issues should be paid more attention to overseas businesses, and compliance is the general trend.