Key risks include ingredient substitution without notification, inconsistent batch records, IP exposure if formulas are not legally protected, port delays, and ingredient-level customs holds for prohibited substances. Mitigation strategies include signed NDAs, third-party on-site QC audits, escrowed payments tied to quality milestones, and thorough INCI verification. AJ Cosmo Labs offers escrowed milestone payments built into the platform.
Read the full guide on Domestic vs Overseas Cosmetic Manufacturing →