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Compliance & Regulatory · MoCRA · 2026

MoCRA Small Business Exemption: Why Gel & Acrylic Nails Don't Qualify

MoCRA exempts small cosmetics businesses under $1 million in annual sales from some FDA requirements. But gel and acrylic nail products are explicitly excluded from that exemption -- regardless of company size. Here's exactly what that means for private-label nail brands.

By LuxeFormula Labs Regulatory Affairs Team Updated September 10, 2026 8 min read
$1M Revenue Threshold
Gel/Acrylic = No Exemption
Form FDA 5066 + 5067
2026 Active Enforcement
15-Day Adverse Event Reporting
Renews Every 2 Years
FDA-Registered Manufacturer
FEI 3031525994
Background

What Is MoCRA?

The Modernization of Cosmetics Regulation Act (MoCRA), signed into law December 29, 2022, is the most significant expansion of FDA authority over cosmetics since the Federal Food, Drug, and Cosmetic Act was passed in 1938. Before MoCRA, the FDA couldn't require cosmetics companies to register, mandate safety testing, or issue recalls -- registration was purely voluntary.

MoCRA changed that. Facility registration and product listing became mandatory, with the statutory deadline passing December 29, 2023 and FDA enforcement active since July 1, 2024. As of 2026, FDA has moved into active enforcement mode -- warning letters, import alerts, and border holds for non-compliant products are now a real, ongoing risk, not a future possibility.

The Part Everyone Assumes Applies to Them

The Small Business Exemption

MoCRA includes a small business exemption: companies averaging under $1 million in annual gross US cosmetic sales over the preceding three years may be exempt from some registration and listing requirements. For a lot of new private-label nail brands -- often run by one or two people, selling through a handful of retailers or direct-to-consumer -- this sounds like it should apply to them.

For most cosmetic categories, it does. But MoCRA carves out specific product types that lose the exemption entirely, no matter how small the company is.

The Detail Most Brands Miss

Why Gel & Acrylic Nails Are Excluded

Under FDA's small business guidance, any product that "alters appearance for more than 24 hours" loses the small business exemption automatically. That category explicitly includes:

💅

Gel & Acrylic Nails

Any nail product designed to hold for multiple days or weeks -- which is the entire point of gel and acrylic systems -- falls squarely into this excluded category.

💇

Permanent Hair Dye

Long-lasting color-altering hair products face the same exclusion, for the same reason: the effect lasts well beyond 24 hours.

👁️

Eye-Contact Products

Mascara, liquid eyeliner, and eyelash adhesive are excluded because they contact the mucous membrane of the eye -- a separate risk-based carve-out.

💉

Injectables & Internal-Use Products

Injectable cosmetic products and products for internal use round out the excluded list.

The logic FDA applies is straightforward: exemptions exist to reduce burden on genuinely low-risk small businesses, but a product's risk profile doesn't shrink just because the company selling it is small. A gel manicure that lasts three weeks carries the same formulation and safety considerations whether it's made by a multinational or a two-person startup.

The Practical Part

What You Actually Need to Do

If your brand sells gel or acrylic nail products in the US, two filings apply regardless of your revenue:

Facility Registration (FDA Form 5066) -- Mandatory for the manufacturing facility, filed through FDA's Cosmetics Direct portal, and renewed every two years. This requires an FEI (FDA Establishment Identifier) number.

Product Listing (FDA Form 5067) -- Filed by the "Responsible Person" (typically the brand owner), listing the product category and full ingredient list, tied to the manufacturing facility's FEI. New products must be listed within 120 days of being marketed, and listings must be updated annually.

If you manufacture through a third party, the facility registration is your manufacturer's responsibility -- but the product listing is still yours to file as the brand owner, and it depends on your manufacturer's facility actually being registered in the first place.

The Cost of Getting This Wrong

What Happens If You Don't Comply

As of 2026, FDA enforcement of MoCRA is active, not theoretical. Products from unregistered facilities or without a valid listing are legally considered misbranded or adulterated. In practice, that translates to:

  • Import holds -- shipments can be detained at the border pending proof of registration and listing.
  • Warning letters -- FDA has already issued warning letters to facilities manufacturing both drug and cosmetic products, signaling it expects strict compliance once GMP rules are finalized.
  • Adverse event reporting exposure -- serious adverse events, including significant hair loss or nail damage, must be reported to FDA within 15 business days. Brands without a compliance process in place risk missing this window entirely.
Where LuxeFormula Labs Fits In

How LuxeFormula Labs Helps

LuxeFormula Labs manufactures at an FDA-registered facility (FEI 3031525994). For private-label customers, that means the facility-registration half of MoCRA compliance is already handled by working with us -- you're not starting from zero. The product listing filing is still the brand owner's responsibility as the "Responsible Person," but it's a far simpler process when the facility side is already in order.

Frequently Asked Questions

MoCRA Exemption FAQs

No. MoCRA's small business exemption does not apply to products that alter appearance for more than 24 hours, which explicitly includes gel and acrylic nail products. This exclusion applies regardless of revenue -- even a business well under the $1 million threshold must still fully register facilities and list products.

Businesses averaging under $1 million in annual gross US cosmetic sales over the preceding three years may qualify for a small business exemption from some registration and listing requirements. This exemption has explicit product-category exclusions that override the revenue test.

Alongside gel and acrylic nail products: products contacting the mucous membrane of the eye (mascara, liquid eyeliner, eyelash adhesive), injectable cosmetic products, products for internal use, and permanent hair dye -- any product altering appearance for more than 24 hours.

Register your manufacturing facility with FDA Form 5066 and submit a product listing with FDA Form 5067, both through FDA's Cosmetics Direct portal. Facility registration renews every two years; product listings update annually, with new products listed within 120 days.

FDA began active MoCRA enforcement in 2026. Non-compliant facilities and unlisted products can trigger warning letters, import alerts, and border detention of inventory -- unregistered or unlisted products are legally considered misbranded or adulterated.

Yes. LuxeFormula Labs manufactures at an FDA-registered facility (FEI 3031525994), which means the facility-registration side of MoCRA compliance is already handled for private-label customers. Contact us at (307) 533-0268 to discuss product listing for your specific formulation.

For Nail & Beauty Brands

Manufacture With a Facility
That's Already Registered

LuxeFormula Labs is an FDA-registered facility (FEI 3031525994) -- the facility-registration half of MoCRA compliance is handled the moment you work with us. Gel polish, acrylic systems, and more, private-label ready.

RA
LuxeFormula Labs Regulatory Affairs Team
Compliance & Regulatory

LuxeFormula Labs operates an FDA-registered manufacturing facility (FEI 3031525994) and tracks MoCRA and cosmetics regulatory developments on behalf of its private-label brand customers.

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