Both fall under heading 1505, but they differ significantly in purity and value. Crude wool grease is the raw fat recovered from scouring water and contains impurities, pesticide residues, and suint. Lanolin is the refined, deodorized product meeting pharmacopeial or cosmetic-grade specifications. The distinction matters for FDA compliance when lanolin is used in drug or cosmetic formulations.

Lanolin used as a cosmetic ingredient is subject to FDA's cosmetics framework, while lanolin used as an active drug ingredient (e.g., in OTC skin protectants) must meet USP or NF monograph standards and may be subject to FDA drug-import oversight. Importers should confirm the intended end use and applicable FDA requirements before entry.