Beauty Brands Selling in the U.S.: MoCRA Registration and Listing, Plus Sales Tax, Tariffs and Bookkeeping (2026)
A beauty brand entering the U.S., whether through Macy's, Amazon or its own site, has two sets of rules. On the product side, FDA's MoCRA requires facility registration, product listing, a responsible person and serious adverse event reports within 15 business days. On the tax side, cosmetics are generally taxable, platforms collect only on their own orders, and duty, samples and destroyed returns need correct bookkeeping.
A beauty brand selling in the United States clears two sets of hurdles at once. On the product side, FDA's Modernization of Cosmetics Regulation Act of 2022 (MoCRA) requires registering manufacturing facilities, listing every product, naming a responsible person, reporting serious adverse events and keeping safety substantiation. On the tax side, cosmetics are generally taxable like other goods; Macy's, Amazon and other marketplaces collect on their own orders, your own site and wholesale channels are yours to register, and duty, samples, testers and destroyed returns all need correct bookkeeping.
What does MoCRA require?
FDA's MoCRA page (updated October 29, 2026) lists five main requirements for industry.
Facility registration: facilities that manufacture or process cosmetics sold in the U.S. register with FDA and renew every two years. Factories in China are covered too. FDA can suspend a registration in certain circumstances.
Product listing: the responsible person lists each marketed cosmetic product, including its ingredients, and updates the listing annually.
Responsible person: the manufacturer, packer or distributor whose name appears on the label. If your U.S. subsidiary is the distributor named on the label, the subsidiary is the responsible person, and the obligations, costs and risks sit there.
Serious adverse event reports: report to FDA within 15 business days, with a copy of the label; new information received within a year also goes in within 15 business days.
Safety substantiation: the responsible person keeps records supporting the product's safety. The law doesn't prescribe specific tests and doesn't require animal testing.
Small-business exemption: qualifying small businesses are exempt from facility registration, product listing and good manufacturing practice requirements, but not for products that contact the mucous membrane of the eye, are injected, are intended for internal use or alter appearance for more than 24 hours. Check the statute and your attorney for the threshold and how it is measured.
Keep up with FDA as well. In November 2025 it withdrew the December 2024 proposed rule on asbestos testing of talc; on December 29, 2025 it published a report on PFAS in cosmetics; and on October 29, 2026 it issued final Q&A guidance on mandatory recalls. The fragrance allergen labeling rule is still pending.
These are product-compliance and legal questions for your attorney and compliance adviser. As CPAs, what we care about is which company carries the registration, testing, relabeling and recall costs, how they are booked, and whether that matches the responsible-person setup.
Is sales tax due on cosmetics?
Generally, yes. Cosmetics, fragrance, skincare and makeup are taxed as general merchandise in most sales-tax states. New York, New Jersey, Pennsylvania, Minnesota and Massachusetts have clothing exemptions, but there is no comparable broad exemption for beauty. Products with drug ingredients, such as sunscreen products and antiperspirants, have special rules in a few states, so check by state and by product.
Who collects: on Macy's Marketplace, Amazon, TikTok Shop and similar platforms, the platform collects and remits as a marketplace facilitator under each state's law. Your own site, wholesale accounts and pop-up shops are yours to assess. Most states set economic nexus at more than $100,000 of sales into the state per year; California, Texas and New York use $500,000 (New York also has a 100-transaction test), and some states count marketplace sales toward the threshold. A warehouse in a state creates physical presence regardless of sales.
Wholesale to retailers: sales to retailers such as Macy's or Bluemercury are for resale. Keep their resale certificate on file and don't charge tax.
Free samples: some states expect use tax on the cost of samples and testers you give away, so check the states where you hand them out.
What about tariffs and imports?
Cosmetics carry ordinary duty by HTS code (mostly Chapter 33). For Chinese-origin goods, check whether the code is on a Section 301 list; since July 24, 2026 a 12.5% forced-labor Section 301 duty is stacked on top. IEEPA tariffs stopped after the Supreme Court's February 20, 2026 ruling, and importers of record can claim refunds. The $800 de minimis exemption has been suspended since August 29, 2025, so direct-mail parcels pay duty too.
Whoever is importer of record pays the duty and can claim refunds. Duty, inbound freight and brokerage go into inventory cost and flow to cost of goods sold as items sell, not as a deduction in the year paid.
What is different about beauty bookkeeping?
Samples and testers: products sent to creators or used as counter testers move from inventory to marketing expense at cost, with a record of each release.
Returns and destruction: most returned beauty products can't be resold and are destroyed. Write them off at cost and keep destruction records. Expired goods and packaging you retire after a redesign get the same treatment.
Compliance costs: MoCRA registration and listing services, testing and relabeling are generally current expenses; recall costs and claims are booked as incurred.
Platform settlements: payouts are net, so book gross sales and record commission, refunds, ads and promotions separately, keeping platform-collected sales tax out of revenue. If payouts top $20,000 in more than 200 transactions in a year, the platform issues a 1099-K that you reconcile to the settlements.
What's different about selling beauty at Macy's?
Macy's Marketplace has a Beauty & Wellness category on its questionnaire and picks brands by invitation; onboarding needs a U.S. Tax ID, a W-9, a U.S. bank account and a U.S. warehouse, with shipping within 48 business hours. Macy's, Inc. also owns the Bluemercury beauty chain, one of the nameplates its 2024 strategy set out to expand; getting into Bluemercury generally means the vendor route.
Foreign brands that use a U.S. subsidiary as importer, distributor and seller file Form 5472 with the subsidiary's Form 1120 every year, with a $25,000 starting penalty for each missed form, and price purchases from the parent at arm's length. A foreign-owned single-member LLC shouldn't sign a W-9 as is, so settle the entity before applying to platforms that require one.
For Macy's two routes side by side, onboarding requirements and entity choice, see our Macy's guide. To set up sales tax registration, landed cost and bookkeeping before you launch, book a free 15-minute consultation or message us on WeChat at YCLUSA.
Sources
FDA: Modernization of Cosmetics Regulation Act of 2022 (MoCRA)
Last verified: November 9, 2026
This article is general tax information, not tax, legal or regulatory-compliance advice for any individual. Consult an attorney or compliance adviser on MoCRA and other product rules.
Questions this article answers
Does a beauty brand selling in the U.S. have to register with FDA?
Under MoCRA, facilities that manufacture or process cosmetics register with FDA and renew every two years, and the responsible person lists each product with its ingredients and updates the listing annually. Qualifying small businesses are exempt, except for eye-area, injected, internal-use and long-lasting appearance-altering products. Your attorney or compliance adviser should confirm how it applies.
Who is the responsible person under MoCRA?
The manufacturer, packer or distributor whose name appears on the label. The responsible person handles product listing, serious adverse event reports within 15 business days and safety substantiation records. If your U.S. subsidiary is the distributor named on the label, it is the responsible person.
Are cosmetics subject to sales tax in the U.S.?
In most states, yes, as general merchandise. Platforms such as Macy's and Amazon collect on their own orders; your own site, wholesale and in-person sales depend on economic nexus thresholds and where your warehouse is. Sales to retailers are for resale, backed by their resale certificate.
How do I book destroyed beauty returns?
Returns and expired goods that can't be resold are written off at cost from inventory, with destruction records kept. Samples sent to creators and counter testers move to marketing expense at cost. That keeps inventory and cost of goods sold accurate and supportable.
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