Business leaders call for excluding cosmetics from proposed drug Act

Highlights:

• The law, if implemented, would hurt the cosmetics business, FBCCI leaders argued
• They also feared that prices of cosmetics will soar
• Separate legislations for pharmaceutical and cosmetic products were recommended
• The legislations are separate globally as the demand and usage context of the products are entirely different
• Business leaders stressed on laws to be business-friendly
• BSTI top official said their lab and manpower will become ineffective
• Health Minister said he would invite cosmetics business representatives to the next parliamentary meeting 

Top business leaders of the country have called on the government to exclude cosmetics from the proposed 'Drug and Cosmetics Act' saying the law, if implemented will hurt the cosmetics business and the price of cosmetics will soar.

Leaders of the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) made the call Sunday during a seminar organised by the apex trade body in its office auditorium.

The proposed Act now awaits nod from the parliamentary standing committee after the cabinet approved its draft on 6 February.

FBCCI leaders also said that there had been no discussion with cosmetic businessmen and the Bangladesh Standards and Testing Institution (BSTI), an autonomous body that controls the standards of services and goods.

"Both pharmaceutical and cosmetic products are important for the consumers. However, the demand and usage context of the two types of products are entirely different. Therefore, separate legislations are needed for both the types of products," FBCCI President MD Jashim Uddin said in his opening speech.

"Cosmetics traders fear that their businesses will suffer if overseen by the drug administration," said the FBCCI chief adding that they want the law to be business friendly.     

Mehfuz Zaman, managing director of Millat Chemical Company Limited, said that drugs and cosmetics are regulated separately all over the world.

"In the case of products like cosmetics, taking a licence like medicine is just the same as going out of business. There is no provision to regulate the price or advertising of cosmetics whereas the draft law also talks about the issue of determining prices," he said.  

"When businesses are struggling to stay afloat amid crises including Russia-Ukraine war induced impacts right after the post-pandemic recovery phase, businesses will suffer without a doubt if the law is passed," he added, calling on the government to exclude cosmetics from the proposed law.  

Javed Akhtar, CEO and managing director of Unilever Bangladesh said, "We want to be within the bounds of law, but the law should be business friendly."

Mohammad Arafat Hossain, assistant director of BSTI said that the government has entrusted BSTI with the power to formulate cosmetics product standards, control quality, oversee import, export and sales as well as prevent criminal corruption in the trade.

"When the new law is implemented, these tasks will be performed through the Directorate General of Drug Administration (DGDA). This may lead to confusion between the two entities in doing these tasks," he said.

"Besides, BSTI has a highly skilled workforce trained at home and abroad for standard formulation, testing and inspection. If the ongoing tasks of BSTI are outsourced to other agencies, the laboratories and manpower of BSTI will become ineffective on the one hand and the labs will lose international recognition. This will adversely affect the import-export trade," he added.

BSTI Director General, Abdus Sattar said, "BSTI is a national institute. It establishes standards, oversees product manufacturing processes and regulates the markets. Our area of work included cosmetics. We are working to deliver the right quantity and right quality products to people. We are equipped with fourth generation testing labs all over the country. When the authorities of these tasks will not be under the BSTI, its expertise and infrastructure will be destroyed."

Lokman Hossain Miah, executive chairman of Bangladesh Investment Development Authority (BIDA) lauded the draft drug law and also pointed out that it will be wise to reconsider the inclusion of cosmetics in the same Act.

"Both the BSTI and DGDA are government entities and we must consider both their work," he said.

Speaking as the chief guest of the event, Health Minister Zahid Malek said that cosmetics are applied to the human body and face.

"If the cosmetics contain carcinogenic substances, it is harmful to the users. Although good companies don't do it, many products sold online do contain it. And we will look into all the reasons that are harmful to people," he said and added, "However, we do not intend to take away work from anyone."

The minister also said that he will have the cosmetics business representatives invited to the next parliamentary meeting on the matter.