Product Labeling Regulations in the US, EU and Australia

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Importing Insider Newsletter

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About to import products from China or elsewhere in Asia? Then you need to ensure that the products are properly labeled.

In this article, we explain what every importer must know about labeling requirements in the EU, US and Australia.

We also explain why you cannot rely on your manufacturer to ensure compliance on your behalf. In fact, most of them don’t even know how products must be labeled in your market.

Keep reading, to ensure that your products are not seized by the customs authorities!

What is ‘Product Labeling Requirements’?

Most countries have legal requirements for how a product shall be labeled. A label can, for example, inform the customer about the following:

• The manufacturing country
• If the product meets certain legal safety requirements (i.e., compliance marks)
• Size, material and other general product information
• Warning labels and user instructions

Some labeling requirements apply to all, or a wide range of, product categories.

For example, all products in the US must be labelled with the country of origin (i.e., Made in China). In the European Union, many products must be CE marked.

Other labeling requirements apply to specific products. Examples include toys, electronics and textiles – each with their own set of unique labeling requirements.

Notice that labeling requirements are usually just one of many requirements that importers must fulfil to ensure compliance with certain regulations.

In addition, you may need to keep track of the following:

Technical Compliance: This means that the product is manufactured according to certain technical standards, or substance restrictions. The product is therefore able to pass the necessary tests.

Documents Requirements: The Importer is required to create and store a set of documents. Such documents may include circuit diagrams, component lists, design drawings and risk assessments.

It is important to underline that this article does not include information above the two points above.

Can I trust my manufacturer in Asia to ensure compliance with all applicable Labeling Requirements in my market?

Absolutely not. Most manufacturers in China, and elsewhere in Asia, are not aware of overseas labeling requirements.

Manufacturers are not supposed to provide you with free legal advice. Instead, they expect you to provide them with “ready made” labeling files.

Thus, it is always, and without exception, up to the importer to ensure that the labels contain the required information.

This is also an issue with “wholesale products” (i.e., ready made items), as such products are not made specifically with US, EU or other labeling requirements in mind.

Hence, “Made for China” products tend to be non-compliant with foreign labeling requirements.

How do I communicate the Labeling Requirements to the supplier?

First, you need to research which labeling requirements apply to your products, and design the labels accordingly.

For example, if you are an apparel designer, you need provide the supplier with ‘ready made’ care and brand labels.

Normally, manufacturers work with .eps and .ai (Adobe Illustrator) files.

In addition, the supplier must also know the following:

• Label dimensions
• Label material / print type
• Label color/s (i.e., pantones)

You may also provide the supplier with drawings that show the exact position of the labels.

What can happen if our products are incorrectly labeled?

Incorrectly labeled products cannot be legally placed on the market. For example, the US customs have the right to return cargo that are not labeled with the country of origin.

In the EU, products that fall within the scope of certain directives, must carry the CE mark – and in some cases other compliance labels.

Companies that sell non-compliant products may face heavy fines, depending on the number of and severity of the violations.

Labeling Requirements in the United States

Country of Origin

Most products sold in the United States must carry a Country of Origin label. If your products are manufactured in China, you may label your product as following:

• Made in China
• Made in PRC

The country of origin must be clearly visible to the customer – either on the product itself, its packaging, or both.
You may not, for any reason, attempt to hide the country of origin.

There are certain exceptions though. For example, Watches can be labeled according to the origin of the movement.

Thus, a Watch that is manufactured and assembled in China may still be labeled as “Japanese Movement” (without a trace of “Made in China), if the movement is Japanese. Well, that is probably the result of successful lobbying efforts.

Products that don’t have a country of origin label cannot be sold in the US, and the customs authorities may even return the goods back to where it came.

CA Prop 65

California Proposition 65 restricts more than 800 substances. Compliance is only mandatory if you sell to consumers in California, or if your company is based there.

There are two ways to comply with CA Prop 65:

a. Ensure that your product is compliant. This can be achieved by submitting the product to a product laboratory.

b. Affix a “warning label”:

WARNING: This product contains chemicals known to the State of California to cause cancer and birth defects or other reproductive harm.

Well, that one will surely not make your product fly off the shelf.

Apparel and textiles labelling

Clothing and textiles must be labeled according to FTC labeling requirements. This includes the following:

• Fiber composition
• Care labels
• Sizes

CPSIA

CPSIA is a framework regulation for toys and children’s products. All products that fall within the scope of CPSIA must carry a “tracking label”. You may also need to attach user instructions and warning labels.

FCC

The FCC mark signals compliance with FCC Part 15 Subpart B, which regulates virtually all electronic products.

There are various types of FCC labels that apply to certain types of electronic products.

UL

UL (Underwriter Laboratories) develops standards primarily for electronics products. UL compliance is not mandatory, but the UL compliance mark is seen as a sign of quality.

Labeling Requirements in the European Union

CE Mark

The CE mark signals compliance with one or more EU directives, such as the following:

• Low Voltage Directive
• RoHS
• EMC Directive
• EN 71 Toy Safety Directive
• Machinery Directive

Thus, the CE mark is found on all sorts of products, all which are seemingly unrelated. Examples include Watches, bicycles, laptops and finger paint.

These products are so different that they are regulated by entirely different sets of safety standards.

Products that are not covered by any “CE marking directive” shall not carry the CE mark. Such products include apparel, and other textiles.

WEEE Mark

The WEEE mark is mandatory on electronic products, and signals separate storage for electronics waste.

Apparel and textiles labelling

Clothing sold in the European Union must carry care instructions and fiber composition (i.e., 98% cotton, 2% spandex), in the language of the target market. So far, there is no mandatory sizing system.

Labeling Requirements in the United Kingdom

At the time of writing, the United Kingdom is still part of the European Union.

That may, however, change in a few years.

Yet, it is unlikely that the United Kingdom will stop implementing EU labeling requirements. UK importers, and businesses selling to the UK, don’t need to worry about future changes.

Labeling Requirements in Australia and New Zealand

Many products imported to Australia and New Zealand are required to comply with certain product safety standards. These regulations also cover labeling requirements. As of today, the following products are regulated by one or more product safety standards:

Toys & Children’s products

Toys for children to and including 3 years, Toys and finger paints containing lead or other substances, Toys containing magnets, Inflatable toys, Projectile toys, Prams and strollers, Nightwear for children, Cots, Bunk beds, Balloon blowing kits, Baby walkers, Baby dummies, Baby bath aids, Aquatic toys.

Sports & Outdoor

Soccer goals, Portable swimming pools, Exercise cycles, Basketball rings and backboards, Treadmills.

Textiles & Accessories

Sunglasses, Luggage straps, Clothing & Textiles (Care labeling).

Vehicles, accessories, parts & tools

Vehicle ramps, Recovery straps for vehicles, MC helmets, Jacks, Bicycle helmets, Bicycles (pedal bicycles), Motor Vehicles (Child restraints).

Home & Furniture

Bean bags, Blinds, curtains and window fittings.

Other

Hot water bottles, Fire extinguishers, Cosmetics, Disposable cigarette lighters.

Importing Sunglasses & Eyewear from China: A Complete Guide

Importing Insider Newsletter

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About to import Sunglasses from China? In this guide, you’ll learn what you must know before getting started, including:

– How to select the right Eyewear manufacturer

– Frame Materials, Lens Specifications and general design customization options

– An introduction to Product Safety Standards and Labeling Requirements for Sunglasses in the EU and USA

You also can find it in Yiwu, Zhejiang, China. 

Here we can help you get an inside of what Yiwu can offer. 

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Finding the right Sunglasses Manufacturer in China

Most major sunglasses manufacturers in China are based in Zhejiang province, south of Shanghai – and the cities of Wenzhou and Linhai in particular.

Wenzhou is the world’s largest manufacturing cluster for Sunglasses. There are hundreds of manufacturers, trading companies and component suppliers in the city.

However, with so many manufacturers to choose from, how can you identify those that are qualified?

When sourcing Sunglasses, this is what you should take a look at:

1. Product Compliance

Is the supplier experienced in manufacturing products according to applicable regulations in your home market?

The truth is that most suppliers are not. As you are required by law to ensure that all imported Eye wear is compliant with all applicable product safety standards and labeling requirements, you need to be sure that the manufacturer has the basic capability to manufacture ‘compliant products’.

The best way to filter suppliers, at an early stage, is by requesting a product compliance document.

For Sunglasses, this may include any of the following:

• Personal Protective Equipment Directive Declaration of Conformityand/or Test Report
• FDA Declaration of Conformity and/or Test Report

Likely, you will quickly find that the majority of manufacturers cannot provide such documents.

2. Quality Management System (QMS) Certificate / Production Line Audits

A QMS Certificate (i.e., ISO 9001:2015) or Production line audit report indicates that the supplier maintains a certain quality standard, in terms of defects.

3. Social Compliance Audit Reports

Social Compliance Audit Reports (i.e., BSCI reports) indicate that the supplier treats its workers fairly well. In turn, this tends to go hand in hand with the above two points.

In addition, you should also look at the following two factors:

Registered Capital: A low amount of registered capital can give away minor traders.

Registered Business Scope: Is the supplier actually a manufacturer? If yes, their business scope specifies this in clear terms.

Note: Many major Sunglasses manufacturers in Zhejiang use separate company entities for manufacturing and trading (i.e., selling and exporting). This is completely legit, as long as some sort of connection can be proven between the two entities.

Product Specifications

Sunglasses and eyewear manufacturers expect their buyers to provide them with a set of product specifications.

Sunglasses are highly customizable. The same design (i.e., frame mold) can be made using different types of materials and components.

For obvious reasons, the materials and components are in turn the factors that set the unit price.

This is what you need to know before contact manufacturers:

a. Frame materials

• PP
• Acetate
• Stainless Steel
• Alloy

b. Lens

• Standards: ASTM, EN ISO
• Materials: Plastic, Polycarbonate, Glass, Composite
• UV Protected: Yes / No
• Polarized: Yes / No
• Anti-reflective (AR): Yes / No
• Thickness: X.X mm
• Index: X.X
• Shape
• Color

c. Material colors

• Standard color
• Pantone color

d. Hinges

• Plastic (low quality)
• Stainless steel (high quality)

e. Product Packaging

• Standard Packaging
• Customized Packaging

f. Logo print

• Lens Print
• Frame Print

Custom Design & Private Labeling

Most manufacturers in the industry offers a range of ‘standard models’. These are models for which they already own the mold.

Virtually all Eye-wear suppliers offer their buyers to have their own logo (i.e., private label) printed on the lens and the frame.

Most suppliers can also open new frame molds, based on the buyer’s design drawings.

In order to do so, you must first provide the supplier with a CAD (3D) design of the frame.

Notice that the mold is paid entirely by the buyer, and costs anywhere between $400 to $1200, depending on its complexity.

Assuming you intend to import a standard model, you do not need to invest in new tooling.

Minimum Order Quantity (MOQ) Requirements

Every supplier sets their own MOQ requirements. In the Eye-wear industry, the MOQ requirements are often structured as following:

• 1000 – 2000 pcs per order
• 300 – 500 pcs per model (non-customized design)
• 200 – 500 pcs per color or pattern (non-customized design)

Notice that the MOQ requirement tends to be higher when buying custom designed frames, or ordering frames with a custom pantone color.

There are indeed small online traders, selling Sunglasses with an MOQ as low as 1 unit per design. However, notice that these traders sell products made for the domestic market in China.

Such products are rarely, if ever, compliant with EU or US safety and labeling requirements.

Product Safety Standards for Sunglasses in the US and EU

European Union

Sunglasses are subject to the Personal Protective Equipment (PPE) Directive, which in turn requires that the product is CE marked and that the importer maintains a technical file.

In the EU, the importer is responsible for ensuring compliance. At a minimum, EU based importers must verify that the supplier has previous experience with ensuring PPE compliance.

However, that is only the first step.

The Importer must also create a Technical file, which may include the following documents:

• Declaration of Conformity
• Test Reports
• Design Drawings
• Risk Assessment
• List of applied EN standards
• Copies of packaging, labels and manuals

Importers are also recommended to submit samples to a compliance testing company, to verify that the Sunglasses are compliant. Test reports may be required, without prior notice, by authorities and retailers.

Sunglasses imported to the European Union are also regulated by REACH. Hence, the lens and the frames may not contain excessive amounts of certain substances, such as lead, cadmium and mercury.

Note that additional requirements may apply to protective eye-wear, and sunglasses made for infants and children. Regulations are also subject to change, regardless of product.

United States

Nonprescription sunglasses, sold in the United States, are regulated by the Food and Drug Administration (FDA).

The FDA sets certain safety and quality requirements, as following:

• Impact Resistance
• Flammability
• Biocompatibility
• Optical Properties

The FDA refers to both ASTM and ISO standards, for each point listed above. For example, these standards require all Sunglass lenses to be shatterproof.

Follow this link to read more about FDA regulations for Sunglasses.

Sunglasses sold, or to buyers located, in California are also subject to CA Prop 65, which restricts more than 800 substances in consumer goods.

Labelling Requirements

European Union

Sunglasses sold in the EU must carry the CE mark. The CE mark is normally printed on the inside frame, together with the Category.

Depending on the type and usage of the eyewear, you may also need to specify the following:

• PPE Class (i.e., Class 1)
• Usage symbols
• United States

All products sold in the US must carry a Country of Origin mark. Assuming that your imported Sunglasses are assembled in China, they must carry one of the following:

• Made in China
• Made in PRC

Sunglasses are also subject to 21 CFR Part 801, which outlines product and packaging labeling requirements.

Sunglasses Trade Shows in Hong Kong and Mainland China

Wenzhou International Optics Fair

• Location: Wenzhou, Zhejiang
• Venue: Wenzhou International Convention & Exhibition Center
• Website: Click here

Hong Kong Optical Fair

• Location: Hong Kong S.A.R
• Venue: Hong Kong Convention and Exhibition Centre
• Website: Click here

Canton Fair: Phase 2

• Location: Guangzhou, Guangdong
• Venue: China Import and Export Fair (Pazhou) Complex
• Website: Click here

China (Shanghai) International Optics Fair

• Location: Shanghai
• Venue: Shanghai World Expo Exhibition & Convention Center
• Website: Click here

How To Become A Proactive Person

“What you do today can improve all your tomorrows.“

Ralph Marston

The most effective people and the most valuable employees are the ones who are proactive. They control situations by causing things to happen rather than waiting to respond after things happen. They don’t sit around waiting for answers to appear; they stand up and find the answers.

The ability to be proactive provides a clear advantage in only in the workplace but also in life, that is why we came up with a system, how to take your initiative to your own hands.

1. Predict. Never be caught by surprise. Learn to anticipate problems and events. Understand how things work; look for patterns; recognize the regular routines and natural cycles that exist in your business. Use your imagination when anticipating future outcomes, use your creativity and logic. Come up with multiple scenarios for how events could unfold. Proactive people are always on their toes.
2. Prevent. Proactive people foresee potential obstacles and exert their power to find ways to overcome them before those obstacles turn into concrete roadblocks. Don’t allow yourself to get swept up in a feeling of powerlessness. When challenges approach, take control and confront them head on before they grow into overwhelming problems.
3. Plan. Proactive people plan for the future. Avoid one-step, “here and now” thinking and instead, look ahead and anticipate long-term consequences. Don’t make decisions in a vacuum; every decision is a link in a chain of events leading to one final conclusion. In order to make the best decision, you have to know where you came from, where you are, and where you want to end up.
4. Participate. Proactive people are not idle observers, they are active participants. Recognize that you are only a piece of the whole and that you influence—and are influenced by—the actions of others. Don’t simply react to them. Engage with them. Exert your influence and make a contribution.
5. Perform. Being proactive means taking timely, effective action. You must be decisive and willing to do the work NOW. Procrastination is not an option. Being proactive means you have taken careful, thoughtful steps to choose the appropriate path; you’re not just reacting impulsively to your environment.

Proactive people are constantly moving forward, looking to the future, and making things happen. Be one of them, starting today!

A Step-by-Step guide to launching a business

Step 1. Create a logo BUDGET: $30-250 USD Designing a logo for your business is the first step towards building your brand image and getting noticed by your customers. Stand out from the crowd and have a well-designed graphic associated to your business by hiring an expert graphic designer today. Step 2. Build a website BUDGET: $250-750 USD Every day, over 2.4 billion consumers use the internet, 90% of which have proceeded to purchase a product or contacted an online business. Gain an instant global presence to showcase your latest products and engage with your customers from all over the world by hiring a website developer. Step 3. Develop a social media campaign BUDGET: $30-250 USD A tailored social media strategy is an opportunity to give your brand a voice and increase your engagement online. Build an online following on Facebook, Instagram and Twitter and increase your chances of conversion by hiring an expert social media strategist. Step 4. Launch an app BUDGET: $750-1500 USD Finding a creative way to connect with your customers can be difficult. Yet launching an app can be a great way to stay on your customers radar and engage with your audience on mobile devices. Get started today by hiring an expert app developer. 6. Connect more with a responsive website BUDGET: $250-750 USD Did you know that 44% of online shoppers start their search by using a search engine? Improving your online website ranking is a great way to find new customers and get more traffic to your site. Get noticed by hiring an SEO expert today.

Intellectual Property (IP) Protection When Importing from China

Importing Insider Newsletter

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Intellectual Property (IP) theft is a main concern for Startups and Small businesses importing from China, and other Asian countries.

We all know that manufacturers in the region have a reputation. However, what’s the real chance that your supplier will flood your market and make millions – using your IP?

In this article, we explain what every Startup and Small business must know about managing Intellectual Property risks when importing from Asia.

Keep reading, and learn more about how you can protect your IP and why most importers overestimate the risk of IP theft. You will also learn why the real risk might not be a supplier stealing your IP – but you (unknowingly) infringing on the IP of another company.

What is Intellectual Property?

Intellectual Property provides protection to the intangible creations of a person or company. This may, for example, include patents, trademarks or business secrets.

It also includes the article you’re now reading. I wrote it. Hence, I hold the copyright.

So, what are we referring to in the context of ‘importing products from Asia’?

Essentially, anything that is included in your product specification:

• Product design drawings
• Logos and brand names
• Functional descriptions
• Circuit drawings
• Packaging design

Sharing and protecting your IP with Chinese suppliers

Sharing your product specifications with your suppliers is not a matter of choice. For obvious reasons, a supplier cannot calculate a price – much less produce a product sample – if they don’t have your product information.

Below follows an introduction to 3 common methods for Intellectual Property protection:

1. Sign a Non-Disclosure Agreements (NDA) with your suppliers before sharing your Intellectual Property

An NDA is a confidentiality agreement that (depending on how it’s outlined) ‘prohibits’ the supplier from manufacturing replicas of your product, using your trademark and/or sharing your product information with other buyers.

A supplier can’t quote a price, and much less make a prototype, before they have access to your product specification.

Hence, the NDA must be signed by the supplier before you share any product information.

Assuming you are sourcing manufacturers of a certain product, and is still in a price research phase, that means you need to get a lot of NDAs signed before you can even get a quote.

If you are a Startup or Small business, you might need to work hard to convince you supplier to sign an NDA, only for the chance of providing you with a quotation.

In short, requiring all suppliers to sign NDAs can greatly slow down the process and make a few of them drop out.

That is, of course, much less of a problem if you are a funded tech company – but this article is written for the up and coming Amazon seller – not Tim Cook.

But that’s not the only problem you’ll face.

At best, the NDA will make the supplier think twice about using your designs or brands. If they really want to replicate your product and/or brand, they can.

First, they know you don’t have the financial muscles and time to pursue them in court.

Second, they can sidestep by the NDA by having your goods manufactured by another company. One that is not covered by the signed NDA.
Thus, you must first prove that they leaked your IP… and collect compensation on top of that.

Again… this article is not written for MNCs with an army of lawyers..

So, is it worth it to sign an NDA?

It depends, as always.

If you are a Tech startup with sensitive IP, then yes.

If you are a new Wristwatch or Private Label brand.. Then not so much. But then again, the NDA can actually help in the sense that it makes the supplier think twice about stealing your IP, if a clear penalty (an amount in dollars) is specified.

2. Design Patent and Trademark Registration

The NDA is appealing, because it appears to be an easy and cheap solution to a complex problem. As explained, it is neither.

There are, however, remedies that are more efficient. And, costly.

By protecting your IP in your target markets, for example the United States or the European Union, you solve the main problem: The risk of your supplier using your IP to compete with you on your home turf.

Trademark registration is the most basic form of IP protection. This prohibits other companies from using your brand name – in the market where it’s registered. For a more complete protection, you must therefore register your trademark in all major markets.

This may also include China, if only for the sake of preventing trademark squatters.

If your product has a unique function or design, you may also apply for a design or functional patent. This must, again, be done in all major markets.

Notice that a patent application is far more costly and time consuming than a trademark application.

3. Split Up Assembly Among Several Manufacturers

A century ago, when the British developed the world’s first military tanks the workers were mislead to believe they manufactured water tanks.

While you may not need the MI6 on your side to protect your IP, you are at least making it harder for your suppliers to steal your IP if you contract components and sub-assemblies to different factories.

These components may then be assembled by another third party, that you are more willing to trust.

Startups tend to overestimate the risk (and negative impact) of IP theft in China

The honest truth is that most importers I’ve spoken are far too concerned with Intellectual Property theft than they need to be.

Yes, we all know that Chinese suppliers have a reputation… but they care much less for your new T-shirt brand or Private label product than you might think.

In fact, I wouldn’t even put IP theft in the ‘top 10’ of risks you are facing when importing from China. Well, at least not for our audience.

Product safety, quality issues, payment frauds and transportation damages. These are the things that should keep you sleepless at night.

Just for the sake of it. Let’s take this one step further. So what if a replica of your product ends up on a street market in Shenzhen? Would that really hurt your bottom line?

Your private label product may infringe the IP of another company

This is one thing you might want to worry about.

What if the product you are importing is the Intellectual Property (in full, in part) of another company? Say, another company in the US or Europe.

The importer is legally responsible the imported products. Hence, you may be sued for IP infringement – even if you never did so knowingly.

We often get asked whether there’s a simple method to determine whether a Private label product, or certain technology, is the IP of another company.

Unfortunately, there is no quick fix to this problem. A while back, we asked that question to Rachel Greer of Cascadia Solutions. This is what she had to say about this issue:

Intellectual property is another issue that especially Private labellers must deal with. How do you go about to avoid selling a patented product on Amazon?

Typically, we recommend checking if the product you’re trying to sell is the only version of that product on the website, and if so, it’s probably patented.

As an example, there’s a car seat that uses heavy duty suction cups to hang in a window. The suction cups are patented, and so no one else can copy that exact design – only Amazon and the original seller are listing that product for sale.

Sometimes you can also see when something is truly innovative that it is likely patented. There are many traditionally used products, or variations on the theme, that new Amazon sellers can use to build their brands, it’s not necessary to copy someone else’s brand or designs.

That being said, patent infringement is quite hard to prove on Amazon, and typically Amazon will require some sort of proof of successful legal proceeding. Where we see sellers get into trouble far more often is trademark and copyright infringement.

Sometimes, they’re using someone else’s name brand in their product description (never use the name Dr. Oz to promote your supplements!), or using someone else’s photo. Always try to have unique offerings and photos.

We also see a lot of our sellers targeted by nefarious sellers trying to take their market share by copying or hijacking their listings. We support our clients by doing test buys, reporting to Amazon, and filing detailed complaints of anti-competitive behavior like fake reviews.

Conclusion

Intellectual Property is a major concern for companies importing from China, and other Asian countries.

However, for most businesses, they’re far more serious risks to tackle.

That said, I understand where this concern comes from – and at least, any self respecting business owner should start out with a trademark application.

However, don’t let your worries slow you down. Most likely, you care far more for your own brand than your Asian suppliers ever will.

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