What makes it a drug
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The mistake is to look at the formula. FDA looks at what the product is intended to do, and it establishes intent from what you say about it.
Claims, not ingredients
A balm of beeswax, shea and jojoba sold as a lip product is a cosmetic. The identical balm sold to relieve chapping is a lip protectant drug product by the definition in 347.3.
Nothing in the tube changed. The label did.
Which also means the reverse is not available: adding a monograph active does not make a claim legal on its own, and leaving one out does not make a claim safe.
The claims that cross the line
Chapped, cracked, dry. Treating or relieving any of them is the lip protectant indication.
Heals, repairs, restores. All structure-or-function language.
Protects from wind and cold. A monograph indication, word for word.
Cold sores, blisters, fever blisters. A different and much harder category again.
SPF, sun protection, UV. The sunscreen monograph, with testing behind it.
Anti-aging, plumping, collagen. Structure-or-function, and increasingly enforced.
And it is not only the label. A product page, a market sign, a social post and an answer to a customer's question are all evidence of intended use.
Where the claim can live
People assume the tube is the regulated surface and the website is marketing. It is not that way round: intended use is established by any labeling or advertising, including what your own testimonials say on your behalf.
A cosmetic-labeled balm sold under a heading that says "for chapped lips" is a drug being sold without a Drug Facts panel, and the heading is the evidence.
Two ingredients that cross it on their own
A sunscreen active makes the product a sunscreen drug whatever the label says, because its presence carries an implied purpose.
A monograph skin protectant at a monograph level: petrolatum above 30 percent, say, invites the same reading, since there is no other reason to be there at that concentration.
Both are worth knowing before formulating, because they turn a labeling decision into a manufacturing one.