Imported Cosmetics – What is a Cosmetic, Product Categorization & Government Fees

WHAT IS A COSMETIC

Cosmetic means any article intended to be rubbed ,poured , sprinkled or sprayed on, or introduced into, or otherwise applied to the human body or any part thereof

for cleansing ,beautifying , promoting attractiveness, or altering the appearance and includes any article intended for use as a component of cosmetic.

NKG Experts help our clients navigate through the tough, complex and often changing regulatory requirements regulating Cosmetics in India. Having been behind thousands of registrations over years, Team NKG assists its clients in overcoming various challenges by systematically following a transparent , predictable and efficient regulatory strategy.

Cosmetics Imported into India are regulated by CDSCO New Delhi, India under the Directorate General of Health Services,Ministry of Health & Family Welfare,Government of India. CDSCO is the National Regulatory Authority (NRA) of India.

Broad Category spread

Skin products

Hair & Scalp Products

Nail and cuticle products

Oral Hygeine products

Category List: Product family classification

Under the Column 3 of the list enclosed in the “Guidelines to Registration of Imported Cosmetics” issued by CDSCO. (Attach Link) Imported cosmetics are classified under roughly 80 product families.

The categories available for registration under Rule 21 of Imported cosmetic registration can be downloaded here.

Insight

It is very important to note that while the exact list of categories available for registration of cosmetics has been issued to stakeholders in black and white by CDSCO, the description of such categories is not highlighted or explained.

Okay, so how does one correctly classify the products in Categories?

While it is no where mentioned, but the basic fundamental of categorization of cosmetic products in various product categories is based on the INTENDED USE or the LABEL CLAIM of the final product.

For instance, lets see below example:

Two categories Hand Care products and Body care products are available for registration.

Consider the label claim of the product says that the product is a hand creme and needs to applied on the hand then in such a case, the product will fall under the category Hand Care product and not body care product even though one may argue that Hands are a part of the body.

The first step in preparing the regulatory dossier for cosmetic registration in India is product categorization. Our team of experts, understand the business of our clients and product types.

AT NKG, we have spent years working on product families and have been exposed to thousands of global brands. It is this, deep understanding of how best to categorize products. 

Correct classification is important as an incorrect classification may lead to delay in processing of applications by CDSCO and ultimately loss of time in launch of products in the Indian Market.

Then,  what is a Brand?

A “Brand” for the purpose of registration of imported cosmetics will mean each category of cosmetic products as mentioned in Column 3 of the list enclosed in the “Guidelines to Registration of Imported Cosmetics” issued by CDSCO.

Such a category of products will include all variants of a product such as shades, flavours,  variants, colour, or different pack sizes of packaged content in such products.

Anything else ? Yes, A “Variant”

Variants are those variations in products like colors, shades, flavours, fragrances or other inherent characteristics apart from the base formulation.

Why is it important to understand the meaning of Cosmetic – Cosmetic Product Categories,  Brand & Variants?

It is important to understand the meaning of Cosmetic , the Cosmetic Categorization , Brand and Variants.

By the above legal definitions, Cosmetic is the roof on the head, whereas the Categories or product families are different rooms under a roof while a brand is each thing in a room meaning each respective product SKU and variants are different types of each such thing in the room.

There is another important aspect on why categorization is an important aspect in cosmetic registration and why it needs to be done correctly. 

The answer is Government Fee & Product listing in dossier.

The regulatory documents in the registration dossier are based on product listings. These documents will take meticulous detailing and correctness. Preparing these documents will take time by overseas manufacturers and a mistake here will mean document revisions which lead to loss of time and money in the regulatory process.

So what is the cost?

The government fee for registration of imported cosmetics is calculated based on the product category and product variant. 

From April 2013 till December 2018, the government fee for cosmetic registration was USD 250 or equivalent Indian Rupees per category of products.

However, Vide Notification No.GSR 1193(E)  dated 12th December 2018, the Indian Government has notified the increase in the fees as enclosed.

http://nkgabc.com/wp-content/uploads/2020/05/omimport17dec18-1-4.pdf

The New Notified fees is as under

1. A fee of USD 2000 or its equivalent Indian Rupees per category of products as mentioned in Column 3 of the list enclosed in the “Guidelines to Registration of Imported Cosmetics” issued by CDSCO.

2.A fee of USD 50 per variant

But I am importing a unit pack (Kit, Palettes etc.) containing different colors, shades, flavours, fragrances etc. and which is sold as a single unit pack in retail. Whether it will be a single variant or not?

Yes. If a unit pack (Kit, Palettes etc.) containing different colors, shades, flavours, fragrances or other inherent characteristics apart from the base formulation which is sold as a single unit pack in retail, then it will be considered as a single variant.

So for Instance,  a Brand has an Eyeshadow product with 10 different shades then the applicable fee in such a case will be USD 2000 for the EYESHADOW category and USD 50 for each of 10 shades of the eyeshadow product. Total fee in such a case will be USD 2000+ USD 500 = USD 2500.

Understanding product categorization and doing it correctly is a time-consuming affair. If the categorization is done incorrectly then it may lead to a lot of back and forth in the processing of application post submission that may lead to further frustration and loss of time. At NKG, we use our deep understanding of the categorization fundamentals and alignment with the interpretations of the CDSCO processing team and deliver the correct categorization day in day out to our clients.

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