Blog > Marketplace News > Important ! Unlicensed Sellers on Shopee Philippines Will Be Forced to Close Down
Important ! Unlicensed Sellers on Shopee Philippines Will Be Forced to Close Down
Jayson 12 Sep 2024 12:34
Summary: Shopee specifically reminds sellers who sell certain categories of goods to pay special attention and apply for relevant licenses as soon as possible. In particular, sellers who sell regulated goods such as beauty cosmetics, food and beverages, and health and medical supplies need to pay special attention and apply for relevant licenses in a timely manner.
On September 6, Shopee Philippines announced an important policy update. According to the new law, the Internet Transaction Act (ITA), which will take full effect on June 5, 2025, all merchants operating on the Shopee platform must comply with new compliance requirements.
It is understood that the scope of application of the ITA is extremely wide. It not only covers all business-to-business (B2B) and business-to-consumer (B2C) e-commerce activities in the Philippines, but also covers all transactions involving physical goods or digital services.
It should be noted that the law has a strong extraterritorial effect, that is, as long as any party involved in the transaction chain is located in the Philippines, or the digital platform, e-retailer and online merchant has a "minimum connection" with the Philippine market, it must comply with the provisions of the ITA.
In order to ensure that business activities run smoothly under the upcoming new legal framework, Shopee specifically reminds sellers selling specific categories of goods to pay special attention and apply for relevant licenses as soon as possible. In particular, sellers selling regulated goods such as beauty cosmetics, food and beverages, and health and medical supplies need to pay special attention and apply for relevant licenses in a timely manner.
Sellers need to submit a registered trade or business certificate (DTI/SEC certificate) to Shopee, and sole proprietors are also required to provide a government-issued personal identification certificate. At the same time, for regulated goods, sales licenses such as FDA LTO (Food and Drug Administration Temporary Operation Permit) and PS/ICC number (Standard Product Certification/Industrial Control Code) are also provided.
On September 6, Shopee Philippines announced an important policy update. According to the new law, the Internet Transaction Act (ITA), which will take full effect on June 5, 2025, all merchants operating on the Shopee platform must comply with new compliance requirements.
It is understood that the scope of application of the ITA is extremely wide. It not only covers all business-to-business (B2B) and business-to-consumer (B2C) e-commerce activities in the Philippines, but also covers all transactions involving physical goods or digital services.
It should be noted that the law has a strong extraterritorial effect, that is, as long as any party involved in the transaction chain is located in the Philippines, or the digital platform, e-retailer and online merchant has a "minimum connection" with the Philippine market, it must comply with the provisions of the ITA.
In order to ensure that business activities run smoothly under the upcoming new legal framework, Shopee specifically reminds sellers selling specific categories of goods to pay special attention and apply for relevant licenses as soon as possible. In particular, sellers selling regulated goods such as beauty cosmetics, food and beverages, and health and medical supplies need to pay special attention and apply for relevant licenses in a timely manner.
| ITEM / CATEGORY This list contains the usual permits and is not exhaustive. Please conduct your own due diligence to check if your product is regulated. |
PERMIT(S) / DOCUMENT REQUIRED |
| 1. Household Appliances 2. Consumer Electronics 3. Lighting and Wiring Devices 4. Steel Products 5. Plastic Pipes and Ceramic Products 6. Cement and Other Construction Materials 7. Chemical Products 8. Automotive Related Products 9. Other Consumer Products (LPG, matches, etc.) 10. Motorcycle Helmets, parts, accessories, etc. See full list and specific items here. |
Department of Trade & Industry (DTI): 1. Philippine Standard (PS) License; OR 2. Import Commodity Clearance (ICC) |
| 1. Food 2. Beverages 3. Food supplements 4. Cosmetics 5. Drugs and pharmaceuticals 6. Medical Devices and diagnostic devices 7. Household/Urban Hazardous Substances (HUHS) and pesticides 8. Toys and childcare articles 9. Medical veterinary products |
Food and Drug Administration (FDA): 1. License to Operate (LTO); AND ⚠️ Note For Over-the-Counter (OTC) drugs: Online Ordering and Delivery must be indicated as Additional Activity 2. Product Registration: - Certificate of Product Registration (CPR) - Product Nomination (CPN) - Medical Device Registration (CMDR) |
| Vapor and Heated Tobacco | 1. DTI/SEC/CDA** 2. BIR 2303** 3. Mayor's Permit - Line of Business should include Vapes ⚠️ Note - These documents require to be posted on your shop homepage. - ** - Submit these via the Business Information page |
| Dental Tools | 1. FDA LTO 2. FDA Product Registration 3. DTI/SEC or Mayor's Permit (Line of Business should include Dental Supply) |
| Meats | National Meat Inspection Services issued certificate: - NMIS License to Operate; or - Certificate of Meat Inspection |
| Fertilizers & Pesticides | Fertilizers and Pesticides Authority Certificate |
| Alcohol | 1. FDA LTO 2. Mayor's Permit - Line of Business must include retail of Alcohol |
Sellers need to submit a registered trade or business certificate (DTI/SEC certificate) to Shopee, and sole proprietors are also required to provide a government-issued personal identification certificate. At the same time, for regulated goods, sales licenses such as FDA LTO (Food and Drug Administration Temporary Operation Permit) and PS/ICC number (Standard Product Certification/Industrial Control Code) are also provided.
