According to the Cosmetic Supervision and Administration Regulation (CSAR), cosmetics are defined as daily chemical products designed for cleansing, protecting, beautifying, or enhancing the human body. These products are applied by spreading, spraying, or similar methods to surfaces such as skin, hair, nails, and lips. In the retail market, cosmetics are commonly bundled into gift sets as a strategy to drive sales and promote complementary usage. However, whether such sets can be declared under a single classification depends on the criteria for "goods put up in sets for retail sale" as set out in the General Rules for the Interpretation of the Harmonized System.
Pursuant to the Explanatory Notes to the Commodities and Headings of the Customs Import and Export Tariff Schedule, "goods put up in sets for retail sale" refers to products that simultaneously meet the following three criteria: a) They must consist of at least two different articles which are, prima facie, classifiable under differentheadings; b) They must consist of products or articles put up together to meet a particular need or carry out a specific activity; c) They must be put upin a manner suitable for sale directly to users without repacking.
To illustrate the proper classification of Christmas cosmetic gift sets, consider the example of a 13-piece holiday set from a well-known brand. This collection includes skincare products such as face cream and eye cream, along with color cosmetics like lipstick and mascara. Under General Rule 3(b), the applicable principle for "goods put up in sets for retail sale", as set forth in the Explanatory Notes to the Commodities and Headings of the Customs Import and Export Tariff Schedule, requires that the set must “consist ofat least two different articles which are, prima facie, classifiable under different headings”. Despite containing 13 distinct articles, encompassing both skincare and specific lip and eye cosmetics, the articles within the set are all classifiable under the same heading. Consequently, it does not qualify as "goods put up in sets for retail sale" under General Rule 3(b), and all 13 products within the set must be declared and classified individually.
(by an author from Shantou Customs)
