2-in-1 Body Wash & Shampoo: Arrange Like an Expert

Providing Information

When an expert wishes to classify a product in the customs tariff, they first gather all information that is generally helpful or potentially helpful for the customs classification.

For our liquid soap “2-in-1 Body Wash & Shampoo”, the following information is relevant:

• What is the purpose/function of the product? → Liquid soap for washing skin and hair

• What ingredients does the product have? → Water, coconut sulfate, mild cleansing foam, salt, panthenol (pro-vitamin B5), almond oil, nourishing emulsifier, gentle surfactant complex, fragrance, lactic acid, citric acid, preservative, bitter substance, dye (CI 16255).

• Packaging: 0.25-liter plastic bottle with dispenser

💡 Expert Tip: The more precise the information you have or use to feed our customs classification solution “traideGo”, the faster you will achieve accurate customs classification.

Observe General Rules (GR)

The so-called "General Interpretative Rules of the Harmonized System" (or briefly "GR") are the guidelines to ultimately find the accurately argued customs tariff number. The GRs must be applied in sequence.

Verbatim Wording of the Heading and Notes to It (GR 1)

☝ The headings of sections, chapters, and subchapters are only pointers. The decisive factor for customs classification is the wording of the headings (Author's Note: Description at the first four digits of the customs tariff number) and the notes on the sections or chapters (…)

The following wording is considered:

👉 Heading 3305: “Prepared hair treatment substances”

If we were classifying only a shampoo, this heading would apply.

But our liquid soap is also suitable for skin washing.

Is there another heading that could apply?

👉 Heading 3401: “Organic surface-active agents and preparations for washing the skin, in the form of liquid or cream, presented for retail sale, whether or not containing soap”

If we were classifying only a skin cleanser, this heading would apply.

According to GR 1, notes must also be considered. Which notes are relevant?

👉 Note 1b to Chapter 33: "This chapter does not include: Soaps and other products of No. 3401

👉 Note 1c to Chapter 34: "This chapter does not include: Hair washing preparations, (…), containing soap or other organic surface-active agents (3305)"

Here, it is evident that Note 1c to Chapter 34 allows shampoos that also contain soap. However, the initial situation isn't entirely clear.

How do I decide on a customs tariff number?

With the help of the GRs, we must ultimately decide on a customs tariff number. What other GRs are there?

Incomplete and Unfinished Goods (GR 2a)

☝ Any mention of a product in a heading also applies to the incomplete or unfinished product, if it possesses the essential characteristics of the complete or finished product in its current state

→ Since GR 2a does not apply to us in this case, we continue reading.

Composite Goods and Mixtures (GR 2b)

☝ Any mention of a substance in a heading applies to that substance in both pure form and when mixed or combined with other substances. (…) Such mixtures or goods consisting of more than one substance are classified according to the principles of General Rule 3

→ Since this rule applies to our product, we need to look at GR 3.

More Specific Description of the Relevant Headings (GR 3a)

☝ The heading with a more specific goods description takes precedence over headings with a general description

→ Since both goods descriptions of Headings 3305 and 3401 equally describe our 2-in-1 liquid soap, we cannot decide on a heading here. Let's now consider the other GRs.

Essential Character of the Composite Good (GR 3b)

☝ Mixtures, goods consisting of different substances or components, and goods put up in sets for retail sale, which cannot be classified by the General Rule 3 a), are classified as if consisting of the material or component which gives them their essential character, if this can be determined

→ Since we are classifying a liquid soap intended for washing both skin and hair (“2-in-1”), the essential character cannot be objectively determined. We now need to look at GR 3c.

Essential Character Undeterminable (GR 3c)

☝ If classification according to General Rules 3 a) and 3 b) is not possible, the product is classified under the heading which occurs last in numerical order among those equally considered applicable headings in this Nomenclature

→ Since classification according to General Rules 3 a) and 3 b) is not possible, we must assign the product to the last heading mentioned among the equally applicable headings in the Nomenclature. We must now look at GR 3c.

Essential Character Not Ascertainable (GR 3c)

☝ If classification according to General Rules 3 a) and 3 b) is not possible, the goods shall be classified under the heading which occurs last among those that merit equal consideration

→ Since we are classifying a liquid soap intended both for washing skin and hair (“2-in-1”), the essential character cannot be objectively determined. We must now look at GR 3c.

What About the Explanatory Notes of the Harmonized System?

If you consult the Electronic Customs Tariff (EZT) and the Swiss Tares in August 2024, you will find that the Note to Heading 3305 indicates that shampoos, which can also be used as skin cleansers of Heading 3401, belong to this heading as well.

Shampoos containing soap or other organic surface-active agents, which can also be used as liquid soap, skin cleansing agents or bubble baths, also belong to this heading.

This Note was decided by the Harmonized System Committee of the World Customs Organization (WCO) at its 22nd session in March 2022 and adopted by the EU at the beginning of 2023.

The EU explains the decision of the HS Committee as follows:

It was classified in HS Heading 3305 because Note 1 c) to Chapter 34 provides that