L’oreal In Australia: Legislative, Regulatory, And Treaty Impacts

Company Description

L’oreal is one of the biggest MNCs all over the world, having its head office in Melbourne. It has ranked as 688 out of the top 2000 number of companies in the Australia. This operates in the industry of beauty products, which includes cosmetics, perfumes, hair care and skin care, make up and perfumes range. L’oreal manufactures and supplies the customers all over the world with their branded products related to beauty, for women as well as men. In the recent study made in 2017, L’oreal Australia had 889 employees including all the subsidiary products under the control of company. L’oreal is the largest beauty and cosmetic company worldwide. According to the last study made in 2017, there were 82600 people working in L’oreal globally and it has ranked number 30 in the Forbes list of World’s Most Valuable Brands.

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Because of its location, Australia is a main supplier to the Asia- Pacific region markets. Australia holds a strong tie with the other markets in the worlds. There are several policies, set up by the Australian Government, which intends to develop the business relation of Australia in international trade, with other countrie. To protect the consumers and the industries from the dangerous import practice from overseas, the Government has prepared a number of export and import rules for Australian corporations.

Australia provides a guideline for the platform of importation for the country. For the regulation of import and export of goods, the Customs Act was passed in 1901, which provides no requirement for holding a license for importation. The Customs (Prohibited Imports) Regulations 1956, the importation of certain goods were made prohibited and restricted by law. It is important to obtain an import permit from the appropriate government authority to import restricted goods. The restricted goods are toxic material, certain flora and fauna, narcotics. Under the Customs Tariff Act 1995, customs duty is levied on some goods. The Treasury Law Amendment (GST Low Value Goods) Act 2017, GST is imposed on importation of goods from 1 July 2018. The Tariff Concession System is made to help the industry become internationally competitive. Importers may rely on existing Orders on Tariff Concession, which covers a good or service or apply for a completely new Orders on Tariff Concessions. The export rules in Australia makes most exported goods and services, GST-free, provided they have been exported within 2 months after a receipt of payment is received. The laws restrict the export of certain medicines, radioactive substances and biological agents. An export declaration is required for an exporter or an agent to export goods worth of $2000 or more from Australia.

Legislative Regulatory Frameworks Affecting L’oreal in Australia

 The import and export laws in Australia has affected the MNCs in many ways. It has helped in making the business stronger. As the business of L’oreal is spread all over the world, it is important for the company to follow up all the importing and export rules. The main business depends mostly on the international trade, so the laws relating import has influenced the business in many ways. The licensing process for importation of goods are always important for the MNCs . L’oreal does not require any special permit as it only deals with only beauty and cosmetic products, and does not import any hazardous goods. The customs duty and GST is imposed on L’oreal products. The law restricts the importation of hazardous goods, so when the raw materials is imported, it is permitted and checked by the regulation. It has become easier to import much cheaper products, due to low taxes and low labour costs, from the foreign markets. In order to help the importer to purchase high quality and low priced goods, the Government provides information of the producers and manufacturers. The transaction risks are reduced by the government involvement. The company can access cheap labour across different countries, for producing goods. Specialised skills can be obtained across the world for manufacturing process. However, the company does not face any issue related to permission for exportation, as it does not import any medicine, radioactive substances and biological agents. The laws are strict in Australia, for the bigger corporations. The export laws have helped in growing national economies and expanding global market . Because of the export rules in Australia, the production rate, and revenue has increased for the company. It has helped in making the product popular around the world that resulted in increasing the wealth of the country. However, sometimes, the firm regulations on exporting of goods makes it difficult to operate in the foreign market rather than serving in the domestic market. Financial management, customer demand and management mistakes and communication technology improvements are some of the issues that the company faces while exporting goods. Customers are advanced nowadays, they demand more support from the vendors, as the technology has improved in such way, which is difficult for the exporter to provide.

Animal testing of cosmetic products has always been a challenge in the world. People nowadays have become conscious about their health as well as environment. They do not support animal cruelty, and wants a strict ban on test on animal. There have been several animal rights movements over the years. The products, which are tested on animals, are considered to be not cruelty free, these tests cause harm, pain and suffering to animals, and results into death of animals. A ban on animal testing in the cosmetic industries was proposed in Australia. Companies do not accept that they use animal test, but this has been a tradition since several decades. The proposed ban will improve the lives of animals. The Humane Society International estimated that around 100000-200000 animals are exposed to this practice every year. Companies manufactures and measures their reaction by testing it on the skin, eyes of the animals. Reaction of a cosmetic is tested on rabbits, mice and on other animals that is illegal as it goes against the rights of animals and the right to humane, cruelty free cosmetics. Not only it causes harm to the animals but also the result is not always appropriate and suitable for human. With the advances in nowadays, the testing methods have also been developed. Companies should adopt alternative means for testing cosmetics. Australia has already put forward a code of practice for the cautious use of animals for experiment purpose. The code requires maintaining the guideline for using animals for cosmetics tests and a license is required by an appropriate authority to conduct research on animals. The proposed convention shall save animals from suffering. The international World Animal Health Organisation promotes standard of animal health, which should be taken in consideration by the companies (Freshney 2015).

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Treaties, Conventions, or Agreements that Impact L’oreal’s Products and Services in Australia

L’oreal is a company, which has never been cruelty free. They tests their products on animals which tortures and kills animals every day. It is a worldwide company, which has proceeded with animal testing from several years, and supports and funds experiments on animals in the different corner of the world. In the cosmetic tests, the harm caused to animals is significantly major than the benefit caused to the human. L’oreal had masqueraded to be a cruelty free company and they claimed their products are all natural and vegan. After the study made by the FDA, the truth was actually revealed that their skin care and hair care products are tested on animals. L’oreal was also included in the PETA list that provides a list of the companies, which uses the method of animal testing. It does not agree that it will not conduct or allow tests on animals for any of their products or formulations anywhere in the world. Not only in Australia, the commitment should be adopted throughout the world where L’oreal operates.

However, over the past years, L’oreal has made a progress and adopted some steps to end tests on the animals for their products. It has adopted the policy of not testing the ingredients on animals. It has also contributed towards developing other methods of inventing new test and replacing cruel process. L’oreal is making human skin in labs with an intention to curb animal testing of their products. They have discovered revolutionary technologies to produces human like skins in the laboratories. Additionally, they have declared that they will no longer use or require to use test on animal for its finished products. L’oreal is also developing such technologies, which creates 3-D hair follicles in the labs. Even they acquired a technology called EpiSkin biotechnology, for which a EpiDerm is used, which is actual human skin cells. The skin cells are derived from surgical waste.

However, it can be understood from studying the technologies that L’oreal have adopted, proposed treaty on cruelty free cosmetics has affected their business. It has influenced them to adopt some policies that protects animal rights. It has discovered some technologies, which has set an example for other companies. This new technologies have improved their products and services. 

Reference list

“Find Jobs – Careers At L’oréal”. Career.Loreal.Com, 2018, https://career.loreal.com/. Accessed 30 Aug 2018.

“L’oréal Australia, World Leader In Beauty – L’Oréal Group”. Loreal.Com.Au, 2018, https://www.loreal.com.au/. Accessed 30 Aug 2018.

Armstrong, Shiro. “The economic impact of the Australia–US free trade agreement.” Australian Journal of International Affairs 69.5 (2015): 513-537.

Berg, Chris, and Sinclair Davidson. “SUBMISSION TO THE SENATE STANDING COMMITTEE ON ECONOMICS INQUIRY INTO THE TREASURY LAWS AMENDMENT (GST LOW VALUE GOODS) BILL 2017.”

Burden, Natalie, Fiona Sewell, and Kathryn Chapman. “Testing chemical safety: what is needed to ensure the widespread application of non-animal approaches?.” PLoS biology 13.5 (2015): e1002156.

Chen, Peter John. Animal welfare in Australia: politics and policy. Sydney University Press, 2016.

Colesky, Theo, and Riël Franzsen. “The adjudication of customs’ tariff classification disputes in South Africa: lessons from Australia and Canada.” Comparative and International Law Journal of Southern Africa 48.2 (2015): 254-280.

Fluhr, Joachim W. Practical aspects of cosmetic testing. Springer, 2014.

Freshney, R. Ian. Culture of animal cells: a manual of basic technique and specialized applications. John Wiley & Sons, 2015.

Lloyd, Peter. “The first 100 years of tariffs in Australia: the colonies.” Australian Economic History Review 57.3 (2017): 316-344.

Malbon, Justin, and Bernard Bishop. Australian Export. Cambridge University Press, 2014.

Monamy, Vaughan. Animal experimentation: A guide to the issues. Cambridge University Press, 2017.

Seyoum, Belay. Export-Import theory, practices, and procedures. Routledge, 2013.

Shatkin, J. A., and K. J. Ong. “Alternative testing strategies for nanomaterials: State of the science and considerations for risk analysis.” Risk Analysis 36.8 (2016): 1564-1580.

Stoddart, Gilly, and Jeffrey Brown. “A campaign to end animal testing: Introducing the PETA international science consortium ltd.” Alternatives to laboratory animals: ATLA 42.6 (2014): 387-393.

Taylor, Katy, et al. “Experiences of the REACH testing proposals system to reduce animal testing.” ALTEX-Alternatives to animal experimentation 31.2 (2014): 107-128.

L’oreal In Australia: Legislative, Regulatory, And Treaty Impacts

Company Description

L’oreal is one of the biggest MNCs all over the world, having its head office in Melbourne. It has ranked as 688 out of the top 2000 number of companies in the Australia. This operates in the industry of beauty products, which includes cosmetics, perfumes, hair care and skin care, make up and perfumes range. L’oreal manufactures and supplies the customers all over the world with their branded products related to beauty, for women as well as men. In the recent study made in 2017, L’oreal Australia had 889 employees including all the subsidiary products under the control of company. L’oreal is the largest beauty and cosmetic company worldwide. According to the last study made in 2017, there were 82600 people working in L’oreal globally and it has ranked number 30 in the Forbes list of World’s Most Valuable Brands.

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Because of its location, Australia is a main supplier to the Asia- Pacific region markets. Australia holds a strong tie with the other markets in the worlds. There are several policies, set up by the Australian Government, which intends to develop the business relation of Australia in international trade, with other countrie. To protect the consumers and the industries from the dangerous import practice from overseas, the Government has prepared a number of export and import rules for Australian corporations.

Australia provides a guideline for the platform of importation for the country. For the regulation of import and export of goods, the Customs Act was passed in 1901, which provides no requirement for holding a license for importation. The Customs (Prohibited Imports) Regulations 1956, the importation of certain goods were made prohibited and restricted by law. It is important to obtain an import permit from the appropriate government authority to import restricted goods. The restricted goods are toxic material, certain flora and fauna, narcotics. Under the Customs Tariff Act 1995, customs duty is levied on some goods. The Treasury Law Amendment (GST Low Value Goods) Act 2017, GST is imposed on importation of goods from 1 July 2018. The Tariff Concession System is made to help the industry become internationally competitive. Importers may rely on existing Orders on Tariff Concession, which covers a good or service or apply for a completely new Orders on Tariff Concessions. The export rules in Australia makes most exported goods and services, GST-free, provided they have been exported within 2 months after a receipt of payment is received. The laws restrict the export of certain medicines, radioactive substances and biological agents. An export declaration is required for an exporter or an agent to export goods worth of $2000 or more from Australia.

Legislative Regulatory Frameworks Affecting L’oreal in Australia

 The import and export laws in Australia has affected the MNCs in many ways. It has helped in making the business stronger. As the business of L’oreal is spread all over the world, it is important for the company to follow up all the importing and export rules. The main business depends mostly on the international trade, so the laws relating import has influenced the business in many ways. The licensing process for importation of goods are always important for the MNCs . L’oreal does not require any special permit as it only deals with only beauty and cosmetic products, and does not import any hazardous goods. The customs duty and GST is imposed on L’oreal products. The law restricts the importation of hazardous goods, so when the raw materials is imported, it is permitted and checked by the regulation. It has become easier to import much cheaper products, due to low taxes and low labour costs, from the foreign markets. In order to help the importer to purchase high quality and low priced goods, the Government provides information of the producers and manufacturers. The transaction risks are reduced by the government involvement. The company can access cheap labour across different countries, for producing goods. Specialised skills can be obtained across the world for manufacturing process. However, the company does not face any issue related to permission for exportation, as it does not import any medicine, radioactive substances and biological agents. The laws are strict in Australia, for the bigger corporations. The export laws have helped in growing national economies and expanding global market . Because of the export rules in Australia, the production rate, and revenue has increased for the company. It has helped in making the product popular around the world that resulted in increasing the wealth of the country. However, sometimes, the firm regulations on exporting of goods makes it difficult to operate in the foreign market rather than serving in the domestic market. Financial management, customer demand and management mistakes and communication technology improvements are some of the issues that the company faces while exporting goods. Customers are advanced nowadays, they demand more support from the vendors, as the technology has improved in such way, which is difficult for the exporter to provide.

Animal testing of cosmetic products has always been a challenge in the world. People nowadays have become conscious about their health as well as environment. They do not support animal cruelty, and wants a strict ban on test on animal. There have been several animal rights movements over the years. The products, which are tested on animals, are considered to be not cruelty free, these tests cause harm, pain and suffering to animals, and results into death of animals. A ban on animal testing in the cosmetic industries was proposed in Australia. Companies do not accept that they use animal test, but this has been a tradition since several decades. The proposed ban will improve the lives of animals. The Humane Society International estimated that around 100000-200000 animals are exposed to this practice every year. Companies manufactures and measures their reaction by testing it on the skin, eyes of the animals. Reaction of a cosmetic is tested on rabbits, mice and on other animals that is illegal as it goes against the rights of animals and the right to humane, cruelty free cosmetics. Not only it causes harm to the animals but also the result is not always appropriate and suitable for human. With the advances in nowadays, the testing methods have also been developed. Companies should adopt alternative means for testing cosmetics. Australia has already put forward a code of practice for the cautious use of animals for experiment purpose. The code requires maintaining the guideline for using animals for cosmetics tests and a license is required by an appropriate authority to conduct research on animals. The proposed convention shall save animals from suffering. The international World Animal Health Organisation promotes standard of animal health, which should be taken in consideration by the companies (Freshney 2015).

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
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Treaties, Conventions, or Agreements that Impact L’oreal’s Products and Services in Australia

L’oreal is a company, which has never been cruelty free. They tests their products on animals which tortures and kills animals every day. It is a worldwide company, which has proceeded with animal testing from several years, and supports and funds experiments on animals in the different corner of the world. In the cosmetic tests, the harm caused to animals is significantly major than the benefit caused to the human. L’oreal had masqueraded to be a cruelty free company and they claimed their products are all natural and vegan. After the study made by the FDA, the truth was actually revealed that their skin care and hair care products are tested on animals. L’oreal was also included in the PETA list that provides a list of the companies, which uses the method of animal testing. It does not agree that it will not conduct or allow tests on animals for any of their products or formulations anywhere in the world. Not only in Australia, the commitment should be adopted throughout the world where L’oreal operates.

However, over the past years, L’oreal has made a progress and adopted some steps to end tests on the animals for their products. It has adopted the policy of not testing the ingredients on animals. It has also contributed towards developing other methods of inventing new test and replacing cruel process. L’oreal is making human skin in labs with an intention to curb animal testing of their products. They have discovered revolutionary technologies to produces human like skins in the laboratories. Additionally, they have declared that they will no longer use or require to use test on animal for its finished products. L’oreal is also developing such technologies, which creates 3-D hair follicles in the labs. Even they acquired a technology called EpiSkin biotechnology, for which a EpiDerm is used, which is actual human skin cells. The skin cells are derived from surgical waste.

However, it can be understood from studying the technologies that L’oreal have adopted, proposed treaty on cruelty free cosmetics has affected their business. It has influenced them to adopt some policies that protects animal rights. It has discovered some technologies, which has set an example for other companies. This new technologies have improved their products and services. 

Reference list

“Find Jobs – Careers At L’oréal”. Career.Loreal.Com, 2018, https://career.loreal.com/. Accessed 30 Aug 2018.

“L’oréal Australia, World Leader In Beauty – L’Oréal Group”. Loreal.Com.Au, 2018, https://www.loreal.com.au/. Accessed 30 Aug 2018.

Armstrong, Shiro. “The economic impact of the Australia–US free trade agreement.” Australian Journal of International Affairs 69.5 (2015): 513-537.

Berg, Chris, and Sinclair Davidson. “SUBMISSION TO THE SENATE STANDING COMMITTEE ON ECONOMICS INQUIRY INTO THE TREASURY LAWS AMENDMENT (GST LOW VALUE GOODS) BILL 2017.”

Burden, Natalie, Fiona Sewell, and Kathryn Chapman. “Testing chemical safety: what is needed to ensure the widespread application of non-animal approaches?.” PLoS biology 13.5 (2015): e1002156.

Chen, Peter John. Animal welfare in Australia: politics and policy. Sydney University Press, 2016.

Colesky, Theo, and Riël Franzsen. “The adjudication of customs’ tariff classification disputes in South Africa: lessons from Australia and Canada.” Comparative and International Law Journal of Southern Africa 48.2 (2015): 254-280.

Fluhr, Joachim W. Practical aspects of cosmetic testing. Springer, 2014.

Freshney, R. Ian. Culture of animal cells: a manual of basic technique and specialized applications. John Wiley & Sons, 2015.

Lloyd, Peter. “The first 100 years of tariffs in Australia: the colonies.” Australian Economic History Review 57.3 (2017): 316-344.

Malbon, Justin, and Bernard Bishop. Australian Export. Cambridge University Press, 2014.

Monamy, Vaughan. Animal experimentation: A guide to the issues. Cambridge University Press, 2017.

Seyoum, Belay. Export-Import theory, practices, and procedures. Routledge, 2013.

Shatkin, J. A., and K. J. Ong. “Alternative testing strategies for nanomaterials: State of the science and considerations for risk analysis.” Risk Analysis 36.8 (2016): 1564-1580.

Stoddart, Gilly, and Jeffrey Brown. “A campaign to end animal testing: Introducing the PETA international science consortium ltd.” Alternatives to laboratory animals: ATLA 42.6 (2014): 387-393.

Taylor, Katy, et al. “Experiences of the REACH testing proposals system to reduce animal testing.” ALTEX-Alternatives to animal experimentation 31.2 (2014): 107-128.

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