According to ISIC, Rev. 4, the manufacturing of cosmetic products is part of division 20, which comprises
the transformation of organic and inorganic raw materials by a chemical processes and the formation of products. Within this division, however, a distinction is made between two classes of industries: the production of basic chemicals that constitute a first industry group; and the production of intermediate and end products produced by further processing of basic chemicals that make up the remaining industry class. Therefore both the manufacturing of cosmetic end-use products (“perfumes and toilet preparations”) and the production of most of their active ingredients (e.g. “essential oils”) fall within Group 202, i.e. Manufacture of other chemical products, which is very heterogeneous, even at the level of its classes. Class 2023 combines “Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations”, thus containing all the major end-products of the cosmetics industry, for which the following product list is provided: Perfumes and toilet water, beauty and make-up preparations, sunburn prevention and suntan preparations, manicure and pedicure preparations, shampoos, hair lacquers, waving and straightening preparations, dentifrices and preparations for oral hygiene, including denture
fixative preparations, shaving preparations (including pre-shave and aftershave preparations), deodorants and bath salts and depilatories.
The manufacturing of intermediate products that are used in the production of cosmetics, belongs to Class 2029, which is a residual class (Manufacture of other chemical products n.e.c.) and contains intermediate products such as “mixtures of odoriferous products for the manufacture of perfumes (or food)” and “essential oils”. Depending on the end-products,the manufacturing of cosmetics can be based also on other chemical and natural inputs, including raw materials (such as sea salt). For the purpose of this strategy, the grouping used the Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS), which is internationally used by more than 180 countries to classify traded products. The HS is more clearcut and handy, as it defines the cosmetic products according to their end-use function. According to HS, the code 33 (Oils and Resinoids, Perfumery, Cosmetic or Toilet Preparations) is relevant for the cosmetic sector, as it includes both intermediate and end-use
products, such as “essential oils” (3301), “perfumes and toilet waters” (3303), “beauty, make-up & skincare
prep, manicure” (3304), “preparations for use on the hair” (3305), and “personal toilet” (3307).
However, given the currently low level of product diversification in Namibia, the industry stakeholders defined the cosmetic industry in the Namibian context as follows:
• Manufacturing of market-ready and quality-tested natural ingredients based on locally sourced raw materials (for export and/or local sales as sole ingredients in pure products)
• Manufacturing of end-use products principally incorporating locally produced intermediate products (i.e. active ingredients). The producers add carriers and preservatives to the Namibian active ingredients, some of which are derived from petroleum based and/or synthetically produced ingredients