Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697797675032.pdf (Dominica)
TARIFF Classiﬁcation of Goods based on HS 2017 May 2020 | Dominica Contents Introduction Performance Objectives Enabling Objectives Course Description Design and Content Delivery Approaches and Methods Module 1- 2017 - New Features of Harmonized Commodity Description and Coding Systems (HS) General Refresher of HS CARICOM Additional Note Transition from HS 2007 to HS 2017 Examples of major changes in the HS 2012: Amendments to the HS 2017 effective from its implementation April 2019 Structure of the HS 2017 for Dominica: National Breakouts to accommodate policy changes Zero rated Items Biodegradable Single Use Plastic Products Legal System Non Legal System: Refresher on the classiﬁcation of Machinery: Vehicles: Classiﬁcation of Parts and Accessories: Deﬁnition of Parts: Deﬁnition of Accessories: “Parts of General Use” Sec XV (Chapters 72 – 83) “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Conclusion Module 2 – Harmonized Commodity Description and Coding Systems (HS) Part One - Harmonised System Development Development of Classiﬁcation Systems: Structure of the Harmonized System: Legal System of the HS The General Interpretive Rules (GIRs) The Legal Notes Classiﬁcation of Goods according to the HS: HS Headings HS Sub-Headings TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 1 Explanatory Notes: (available in four volumes) Non-Legal System of the HS Titles of section and chapters: Alphabetical
 Index: Classiﬁcation Opinions: Punctuation The use of the comma (,) – The use of the semi-colon (;) The use of the colon (:) The use of the period (.)
Terminology The use of key words “And” and “Or” The use of key terms in the HS: “Parts of General Use” Sec XV (Chapters 72 – 83) “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) PART TWO: The General Interpretive Rules (GIR’s) “Sets” “Parts” “Accessories” Summary Legal Status: GIR 1 GIR 2 GIR 3 Rule 2(a) Rule 2(b) Rule 3(a) Rule 3(c) GIR 4 GIR 5 GIR 6 Rule # 5(b) Structure of the CET: Non-Legal System of the HS Titles of section and chapters: Alphabetical Index: Classiﬁcation Opinions: Explanatory Notes: (available in four volumes) Punctuation The use of the comma (,) – The use of the semi-colon (;) The use of the colon (:) The use of the period (.)
Terminology The use of key words “And” and “Or” The use of key terms in the HS: “Sets” “Parts” “Accessories” “Parts of General Use” Sec XV (Chapters 72 – 83) “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Summary PART TWO: The General Interpretive Rules (GIR’s) Legal Status: GIR 1 GIR 2 Rule 2(a) Rule 2(b) GIR 3 Rule 3(a) Rule 3(c) GIR 4 GIR 5 Rule # 5(b) GIR 6 Structure of the CET: TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 2 Introduction This Course provides an analysis of the principles of tariff classiﬁcation based on the Harmonized Commodity Description and Coding System (HS) developed by the World Customs Organisation.
It is designed to actively involve class participation in order to develop a clear understanding of these principles, and to equip participants with the proper techniques to be applied when classifying goods for customs purposes.

The importance of being able to classify goods correctly cannot be over-emphasized as this aspect forms an integral part of customs operations impacting speciﬁcally on the area of revenue collection.
The lesson progresses in a very logical sequence by ﬁrst introducing the subject matter with an overview of the Harmonized System, outlining its history and development before examining its structure and application.

Performance Objectives On completion of this lesson the course participants will be able to: • Identify the new features of the Common External Tariﬀ based on the HS 2017 and improve the capacity to classify goods and use the national customs tariﬀ eﬀectively.
(Module 1) • Establish the proper classiﬁcation of goods as prescribed under the Harmonized System and determine the correct rate of duty applicable under the relevant national customs tariﬀ.
(Module 2) Enabling Objectives Module 1 • Provide participants with a General Refresher of the HS • Explain the reasons for transition from HS 2007 to HS 2017 • Identify the examples of major changes in the HS 2012 • Identify and apply examples of major changes in the HS 2017 • Discuss national breakouts to accommodate policy changes Module 2 • Introduce the reasons for Tariﬀ Classiﬁcation • Understand the vital importance of applying a uniformed nomenclature • Explain the Legal and Non-Legal Structures of the HS • Deﬁne terms used in the HS • Discuss and apply the General Interpretive Rules for the systematic and uniform classiﬁcation of goods.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 3 Course Description The course focuses on providing participants with the knowledge, skills and ability to explain the structure of the Harmonised System, apply the general interpretative rules for the systematic classiﬁcation of goods, outline the format of the various schedules of a customs tariff and ascertain the rate of duty applicable in respect of imported goods.
In addition, participants will be introduced to the major changes in the structure and content of the Common External Tariff based on the transition from HS 2007 to HS 2017.

The focus will be on the signiﬁcant adjustments including new HS headings and breakouts required for the introduction of several changes in policy, technology and the patterns of trade.
Design and Content The lesson has been redesigned to incorporate the features of the HS 2017 into the general explanation of the structure, the general interpretative rules and the system of classifying goods based on the Harmonized (HS) developed by the World Customs Organisation (WCO).

As a result two separate modules will be delivered to the course participants based on need and experience.
Module 1 (6 hours) will deal speciﬁcally with the new features of the HS 2017 including new HS headings and breakouts required for the introduction of the new Customs External Tariff.

The target group for this module will be individuals who have previously been trained in the Harmonised System including experienced Customs Brokers and Tariff Clerks and Customs Officers.
The modules will include the following topics: • General Refresher of HS • Transition from HS 2007 to HS 2017 • Examples of major changes in the HS 2012 • Examples of major changes in the HS 2017 • National Breakouts to accommodate policy changes: - Agricultural and ﬁshing inputs - Zero rated goods - Biodegradable Single Use Plastic Products TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 4 Module 2 (20 hours) will provide participants with a full explanation of the Harmonised System including the structure, the general Interpretative rules and a systematic approach to classifying goods.
It will be based on the HS 2017 and will target individuals who have not been formally trained in classiﬁcation of goods.
The module will cover the following topics: • Harmonised System Development • Harmonised System Structure - The Legal System - The Non Legal System - Punctuation - Terminology • General Interpretative Rules • Invoice Description • Format of the Schedules of the Tariﬀ • Practical Application Delivery Approaches and Methods Sessions will be face to face and will include power point presentations, lectures, class participation, exercises and case studies.
Participants will be required to work individually and in groups to complete exercises and case studies throughout the duration of the lesson.

Material covered during this course may form part of a ﬁnal exam.

TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 5 Module 1 HS 2017 - New Features of Harmonized Commodity Description and Coding Systems General Refresher of HS The Harmonized System is an international nomenclature for the classiﬁcation of products.
It allows participating countries to classify traded goods on a common basis for customs purposes.

At the international level, the Harmonized System (HS) for classifying goods is a six-digit code system1.

The HS comprises approximately 5,300 article/product descriptions that appear as headings and subheadings, arranged in 99 chapters, grouped in 21 sections.

The six digits can be broken down into three parts.

The ﬁrst two digits (HS-2) identify the chapter the goods are classiﬁed in, e.g.
09 = Coffee, Tea, Mate and Spices.

The next two digits (HS-4) identify groupings within that chapter, e.g.

09.02 = Tea, whether or not ﬂavoured.

The next two digits (HS-6) are even more speciﬁc, e.g.

09.02.10 Green tea (not fermented)... Up to the HS-6 digit level, all countries classify products in the same way (a few exceptions exist where some countries apply old versions of the HS).

The Harmonized System was introduced in 1988 and has been adopted by most of the countries worldwide.
It has undergone several changes in the classiﬁcation of products.

These changes are called revisions and entered into force in 1996, 2002, 2007, 2012 and 2017.
1 https://unstats.un.org/unsd/tradekb/Knowledgebase/50018/Harmonized-Commodity-Description-andCoding-Systems-HS TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 6 The six-digit numbering system has a logical classiﬁcation structure supported by Rules of Interpretation, as well as by a network of legal notes, in order to achieve the utmost in uniform classiﬁcation of goods worldwide.

The units for statistical classiﬁcation are based on the metric system.
The General Interpretive rules provide the principles on which classiﬁcation is based.

The schedule of rates, section and chapter notes, and the additional CARICOM guidelines are also an integral part of the classiﬁcation structure.

CARICOM Additional Note The 2017 CET of CARICOM introduces an additional rule: The classiﬁcation of goods in the Common External Tariff ( CET) is determined according to the terms of the General Rules for the Interpretation of the Harmonized System.
For the purpose of this Rule the relative Section, Chapter and Subheading Notes, as well as, any related CARICOM Additional Note, must be considered, and only Harmonized System.

Subheadings and CET tariff items at the same level may be compared.

The Additional CARICOM Notes have the same legal force as the notes in the HS.
The rates of duty shown in the schedule of rates will be applicable to imports from third countries into member states of CARICOM, as well as to goods traded among member states which do not qualify for Community treatment.

It the light of changes in technology and patterns of international trade, the HS Nomenclature has been amended every four to six years (1988; 1996; 2002; 2007; 2012; 2017).
The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee Transition from HS 2007 to HS 2017 Up to the beginning of 2019, the Customs Division of Dominica still utilized HS 2007, but efforts are in an advanced stage to implement HS 2017 by April 2019.
Dominica would have skipped HS 2012, and graduated from HS 2007 to HS 2017 .However, the changes brought about with HS 2012 will also have an effect in HS 2017.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 7 Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Examples of major changes in the HS 2012: • Introduction of new sub-headings for select items in Chapters 7 and 8 to enhance the monitoring of the global food security.
• Items include pigeon peas, plantains, pears, sour cherries, gooseberries, black/white/red currants, and crushed and ground fruits, among others • New item insertion in HS 20.09 for Cranberry Juice • New chapter 30 Note 1 (b) to clarify the classiﬁcation on tablets, chewing gum, and patches intended to assist smokers to stop smoking; HS 21.06 HS 21.06 HS 38.24 • Introduction of new sub-headings in HS 29.03 to cover certain substances to facilitate the monitoring and control of these substances that deplete the ozone layer • Regrouping of sanitary towels and tampons, napkin and napkin liners for babies an similar articles of any material are now classiﬁed in Heading 96.16 (HS 48.18 ; HS 48.18; HS 56.01) • New subheading Note 1 to Chapter 95 to better deﬁne and expand the scope of video game consoles Amendments to the HS 2017 effective from its implementation April 2019 • Introduction of LED Lamps in HS 85.39 • Introduction of new sub-headings in HS 28.11 and 28.12 to cover Cyanide and Chlorides, to facilitate the collection and comparison of data on the international movement of substances controlled under the chemical weapons convention • Modiﬁcation of the structured nomenclature of headings 87.02, 87.03 and 87.11, to reﬂect the technological changes in the automotive industry to include Hybrid, plugin Hybrid, and all-electric Vehicles Structure of the HS 2017 for Dominica: National Breakouts to accommodate policy changesHS 2017 contains 101 breakouts for National purposes broken down as follows: ♦ 65
 Breakouts for VAT purposes to segregate agricultural and ﬁshing inputs on which VAT is not payable: • Pets (cha 1) / live Molluscs (cha 3) / Seeds for sowing (cha 12) / Spray oil (cha 27) • Signal ﬂares (cha 36) / Pesticides / Potting mix (cha 38) / Fishing lines / Plastic ﬁlm Boxes/Egg boxes / Propagation bags / Floats / Poultry spectacles (cha 39) / Cartons (cha 48) / Life jackets (cha 63) / Waterers and feeders (cha 73, 76, 80) / • Outboard motors / Winches / (cha 84) / Canoes (cha 89) / Fish ﬁnder (cha 90) /
 Very pistols / Harpoons (cha 93) / Greenhouses (cha 94) / Fishing reels (cha 95) Zero rated Items ♦ 31 other breakouts to segregate items on which a lower or a zero ID rate is charged: • Energy drinks (cha 22) / Baby wipes (cha 34) / Safety belts/bandoliers / Safety clothing accessories (cha 42) / Safety vests/ear-muffs (cha 61) / Safety vests/ear muffs (cha 62) / Security equipment (cha 85) / New motor vehicles under ﬁve years (cha 87) / Napkins and napkin liners for adults / Sanitary towels and tampons (cha 96) TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 8 Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Biodegradable Single Use Plastic Products ♦ There were 5 breakouts effected to segregate and zero rate “Biodegradable Single Use Plastic Products” used in the food industry, while placing a ban on the importation of similar “Non-Biodegradable Products” as of January 1, 2019 • Single Use Plastic Lids – HS 3923.50.10 • Single Use Plastic Cups – HS 3923.90.10 • Single Use Plastic Containers - HS 3923.90.90 • Disposable Cutlery - HS 3924.10.10 • Single Use Drinking Straws - HS 3924.20.10 ♦ Chapters 77 reserved for future use ♦ Chapters 98 & 99 reserved for national use Legal System It consist of the structure of the HS It is the basis or foundation for the classiﬁcation process.
It is legally binding The makeup of the legal structure comprises the following: - The general interpretive rules - The Legal Notes (section, chapter, subheading, CARICOM) - The terms of the Headings & Sub-headings and their related numerical codes Classiﬁcation according to the HS: - 1.
General Rules - a) Section - b) Chapter - c) Heading - d) Sub-heading - e) Customs Code Remember, no two subheadings within a heading provide for the same goods: An item is classiﬁed under one and only one heading, and one and only one subheading.

Non-Legal System Most of the problems involved in the use of the HS are essentially questions of interpretation and application of the classiﬁcation.

Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same product.
There are available tools to enable users to refer to the HS in a simple and rapid manner.
These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 9 Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
Though these tools are provided by the HS council, it should be noted that: - They have no legal status - They are for ease of reference only - They only provide needed assistance in the classiﬁcation process Refresher on the classiﬁcation of Machinery: Two pointers to remember when classifying machines: • Section XV1 Note 5 states that the expression “machine” means anything, which includes any machine, plant, equipment, apparatus, or appliance cited in the headings of Chapter 84 or 85 • Section XV1 Note 4 states that where a machine (including a combination of machines) consists of individual components (whether separated or interconnected by piping, by transmission devices, by electric cables, or by other devices) intended to contribute together to a clearly deﬁned function covered by a machine in Cha 84 or 85, then the whole falls to be classiﬁed in the heading appropriate to that machine Vehicles: Vehicles are categorized in four main categories: • HS 87.01 - Those constructed principally for hauling or pushing another vehicle, appliance or load • HS 87.02 / 87.03- Those for the transport of persons • HS 87.04- Those for the transport of goods • HS 87.05- Vehicles other than those principally designed for the transport of persons or goods Examples to consider: • 9 seater Bus • Wheelchair Buses • Land Rover Jeeps imported for tourist purposes, able to sit 13 persons • Roseau Trolley Train • Double – Cab Pick-up’s • SUV’s with reinforced chassis able to carry heavy loads • Panel Vans • Special Purpose
 Vehicles: - Garbage Trucks ﬁtted with loading and compressing devices - Trucks ﬁtted with Cranes (Crane Lorries) - Tow Trucks - Ambulances / mobile Clinics - Motor Homes - Cesspool Emptier - Pole Erector Crane Truck - Classiﬁcation of a portable Light Tower TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 10 Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.
HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Classiﬁcation of Parts and Accessories: Parts become more prevalent in the HS from Section XV1 which covers two Chapters (84 and 85), and in order to properly classify parts in Section XV1 you must familiarize yourself with the following: Deﬁnition of Parts: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: - Parts cannot be used on their own; or - They must be combined with other articles to be used; or - They are an integral, constituent, or component part without which the article could not function: or - They lend to the safe and efficient operation of the article; and - They are identiﬁable by shape or other characteristics as being an article solely or principally used as a part Deﬁnition of Accessories: Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: - Accessories may facilitate use or handling; or - They may widen the range of uses of the main article; or - They may improve the operation of the main article; and - They are not needed to enable the goods with which they are used to fulﬁll theirintended function; and - They are identiﬁable as being intended solely or
 principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 Articles of leather or composition
 leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for technical uses (heading 59.11) Sec XVI note 1 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 11 • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following rules: Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03,
 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their respective headings.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 Conclusion The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and Subheading Notes, the Additional CARICOM Notes, and the text of the headings and subheadings and their related numerical codes and they alone form the nomenclature of the HS.
Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.

The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.
The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.

It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.
It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Classiﬁcation of Parts and Accessories: Parts become more prevalent in the HS from Section XV1 which covers two Chapters (84 and 85), and in order to properly classify parts in Section XV1 you must familiarize yourself with the following: • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading 96.12 • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following rules: Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their respective headings.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 Conclusion The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and Subheading Notes, the Additional CARICOM Notes, and the text of the headings and subheadings and their related numerical codes and they alone form the nomenclature of the HS.
Deﬁnition of Parts: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: - Parts cannot be used on their own; or - They must be combined with other articles to be used; or - They are an integral, constituent, or component part without which the article could not function: or - They lend to the safe and efficient operation of the article; and - They are identiﬁable by shape or other characteristics as being an article solely or principally used as a part Deﬁnition of Accessories: Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: - Accessories may facilitate use or handling; or - They may widen the range of uses of the main article; or - They may improve the operation of the main article; and - They are not needed to enable the goods with which they are used to fulﬁll theirintended function; and - They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for
 other technical uses Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 12 Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Module 2 Harmonized Commodity Description and Coding Systems (HS) Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature internationally standardized system of names and numbers for classifying traded products.
is an The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 13 It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Structure of the Harmonized System: Arrangement of the HS: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the heading and sub-heading: The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Interpretive Rules There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) ✓ These notes form an integral part of the HS system and are legally binding.
The Legal Notes ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) - The terms of the Headings & Sub-headings and their related numerical codes TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 14 The legal notes are located at the beginning of each section or chapter to which they relate.
Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.

The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB Flash Drives) This classiﬁcation process must be carried out without exception for each step, with no account being taken of the terms of any subdivisions.
HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.

4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: Classiﬁcation according to the HS: ✓ - What is it?

✓ - What material or substance is it made of?

✓ - What are its function or use?


✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?
✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.
HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Non-Legal System of the HS of the classiﬁcation.
product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) Classiﬁcation according to the HS: ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ - What is it?

✓ - What material or substance is it made of?

✓ - What are its function or use?


✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.

The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.
✓ They are essential for classiﬁcation.

✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB Flash Drives) This classiﬁcation process must be carried out without exception for each step, with no account being taken of the terms of any subdivisions.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 15 HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.

4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) - The terms of the Headings & Sub-headings and their related numerical codes ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.
HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB Flash Drives) - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Classiﬁcation according to the HS: ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ - What is it?

✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?
✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Then check the: o General Rules o Section Notes o Chapter Notes ✓ Then proceed to identify: o Heading o Sub-heading o Customs Code HS Headings ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split HS Sub-Headings Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into several subheadings: The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 16 Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.
HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs Each contracting party to the HS undertakes to: 1) Use all the headings and subheadings without addition or modiﬁcation together with their related numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 17 Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.

The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.

Other Data Bases, especially from customs organisations can also be very useful.
Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather • The comma separates items of a list or sets of descriptors e.g.
– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] The use of the period (.)

Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.

The use of key terms in the HS: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.

- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]
The use of the semi-colon (;) independent units Example Non-Legal System of the HS Most of the problems involved in the use of the HS are essentially questions of interpretation and application of the classiﬁcation.

Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same product.
There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base Titles of section and chapters: General interpretive rule #1 provides the basis for exclusion from the legal system and for use as reference only ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature ✓ They have no legal standing This option has been used extensively in the structure of the common external tariff of the Caribbean - Titles of section and chapters: • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed in chapter 94 • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] Alphabetical Index: To headings/subheadings in which that article is cited available in two volumes.
location of references facilitate the HS the in to products mentioned therein and the share or bond certiﬁcates 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.
In the HS tariﬀ it alerts us to the fact that further “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 18 “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.

64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.

The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] 2.
The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Non-Legal System of the HS Most of the problems involved in the use of the HS are essentially questions of interpretation and application of the classiﬁcation.
product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base Data Bases: The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

e.g.
e.g.

- CROSS Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Punctuation Punctuation is also essential for determining the correct classiﬁcation of a product: They play an important role by providing grammatical rules for reading and understanding the text of the HS tariff.

The use of the period (.)


The period indicates the end of the descriptive text accompanying the heading or subheading 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions Example Example 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather The word “and” adds the condition that the uppers of the footwear be composed of leather General interpretive rule #1 provides the basis for exclusion from the legal system and for use as The use of the comma (,) – The word “Or” is used to oﬀer alternatives ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature • The comma separates items of a list or sets of descriptors e.g.
– 42.02 [Trunks, suitcases, vanity-cases, Example executive cases, briefcases….]

- 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation The use of the semi-colon (;) • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into independent units To facilitate the location of references in the HS to products mentioned therein and the headings/subheadings in which that article is cited available in two volumes.
Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

Example 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; share or bond certiﬁcates The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts The use of the colon (:) • The colon is used to indicate that there is a list to follow.
In the HS tariﬀ it alerts us to the fact that further subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.
Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 19 GIR 2 Rule 2(a) or ﬁnished article.

disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.
Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.

Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Non-Legal System of the HS Most of the problems involved in the use of the HS are essentially questions of interpretation and application of the classiﬁcation.
product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Data Bases: e.g.
Data Bases: e.g.

- CROSS Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Punctuation is also essential for determining the correct classiﬁcation of a product: They play an important role by providing grammatical rules for reading and understanding the text • The comma separates items of a list or sets of descriptors e.g.
– 42.02 [Trunks, suitcases, vanity-cases, - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.

It separates portions of a classiﬁcation number into Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The colon is used to indicate that there is a list to follow.
In the HS tariﬀ it alerts us to the fact that further Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.
The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.

The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.
The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.

It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.
It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.

The use of the period (.)

The period indicates the end of the descriptive text accompanying the heading or subheading Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions Example 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives Example 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 20 2.
The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” “Essential character” Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component which gives them their essential character” c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level Some criteria to be used when applying this concept: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value Their role in relation to the use of the goods.
“Sets” Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 21 e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: a.
Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 GIR 2 Rule 2(a) or ﬁnished article.

disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.

2.
2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.

2.
2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 “Parts” Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.

Parts cannot be used on their own; or b.


They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: a.
Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level rules: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.

Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for technical uses (heading 59.11) Sec XVI note 1 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading 96.12 TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 22 references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.

The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.

Parts cannot be used on their own; or b.


They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: a.
Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera
 zoom lens • Articles of chapter 91panel clock 96.12 • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following rules: Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their respective headings.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of that part or accessory Example – Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) and 5(c) NB – there is no accommodation for “parts” or “accessories” in chapter 89.
The above classiﬁed according to constituent material.

Summary The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and Subheading Notes, and the headings and subheadings: Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 23 - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
PART TWO: The General Interpretive Rules (GIR’s) It groups these goods in sections, chapters, headings and subheadings indicating, as concisely as possible, the categories or types of goods they cover.
(Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following ✓ The most important of all the rules ✓ Accounts for approx.
80% of goods being classiﬁed GIR 2 Rule 2(a) or ﬁnished article.

disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Rule 1 can be broken down into 3 parts: • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, This rule does not normally apply to the following sections: The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.
Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.

Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level - must be used in sequence in the order in which they are presented [i.e.
rule 1 before rule 2 before rule 3 etc] (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.

part “Accessories” a.


Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or
 mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and Subheading Notes, and the headings and subheadings: Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The following: - General interpretive rules - Section, chapter and subheading notes - Texts of the headings and subheadings and their related numerical codes and they alone, form the (Rule # 6) - New rule applied at the subheading level - stands on its own nomenclature of the Harmonized System The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.

It groups these goods in sections, chapters, headings and subheadings indicating, as concisely as possible, the categories or types of goods they cover.

In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, heading and subheading are endless.
To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS incorporates a set of six rules upon which the system is based.
A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.
Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.

Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level - must be used in sequence in the order in which they are presented [i.e.
rule 1 before rule 2 before rule 3 etc] (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 24 - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six relates to the classiﬁcation of goods at the subheading or six digit level GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following ✓ The most important of all the rules ✓ Accounts for approx.
80% of goods being classiﬁed ✓ 3) Speciﬁes the legal elements to be considered when classifying goods Rule 1 can be broken down into 3 parts: • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, and have no legal bearing on the classiﬁcation of goods • Titles of section and chapters: - are found at the beginning of each section, chapter and sub-chapter - provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
This rule does not normally apply to the following sections: Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.

part “Accessories” a.


Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of
 textile material (heading 59.10) or other articles of textile material for Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] - Texts of the headings and subheadings and their related numerical codes and they alone, form the The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.

It groups these goods in sections, chapters, headings and subheadings indicating, as concisely To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS incorporates a set of six rules upon which the system is based.
A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, (Rule # 6) - New rule applied at the subheading level - stands on its own - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six relates to the classiﬁcation of goods at the subheading or six digit level GIR 1 “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions” ✓ The most important of all the rules ✓ Accounts for approx.
80% of goods being classiﬁed ✓ 3) Speciﬁes the legal elements to be considered when classifying goods GIR 2 Rule 2(a) or ﬁnished article.

disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.
Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.

Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
• Titles of section and chapters: - are found at the beginning of each section, chapter and sub-chapter - provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found - do not have any legal force • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 25 2.
The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products This rule applies with greater frequency in the case of the following sections: Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.

2.
2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed GIR 2 Rule 2(a) “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete or ﬁnished article.
It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or disassembled” 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.

Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.
The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.

In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 26 ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.

Example – craft kit: • Dolls heading - 95.02 / 95.03???
• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 27 The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and the rules for determining which heading is correct.

“The classiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule 3”.
A description by name is more speciﬁc than a description by class: Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] In some cases the legal notes specify the criteria; Example – section XI, note 2a or headings HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers GIR 3 Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.

Rule 3(a) “The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise description.
Rule 3(a) Analysis Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.

Move on to the next rule.
Rule 3(a) Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 28 The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.
Quantity, bulk, value considerations for determining essential character GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – ✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

Examples – Goods in sets for retail sale oil and a plastic case of the value.

Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.
The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.

“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.
Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.

Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.

The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.
The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.

It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.
It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and the rules for determining which heading is correct.

“The classiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule 3”.
GIR 3 more than one heading Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.
It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.

Move on to the Rule 3(a) description.

Rule 3(a) Analysis next rule.
Rule 3(a) Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential A description by name is more speciﬁc than a description by class: Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x HS 85.10 [shavers and hair clippers with motor] The text of a heading providing a more accurate and complete description: Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is applicable”.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be applied if the following conditions are achieved: Examples – ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Composite (components are adapted, complimentary and sold together) ✓ Goods in sets for retail sale Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
In some cases the legal notes specify the criteria; Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.

By virtue of rule 3(c), this mixture would be classiﬁed unto it.
In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – of chapter 24, since they are not of tobacco.
Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 29 GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x Example – section XI, note 2a In the example above, weight determines the the essential character for textiles classiﬁed in those chapters or headings oil and a plastic case Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives the article its essential character and, therefore, determines its classiﬁcation Examples – Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Examples – Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) Composite goods consisting of different components that are adapted and sold together Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted unto it.
The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.

Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.
Quantity, bulk, value considerations for determining essential character TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 30 Value (CIF) Some Deﬁnitions imported goods.

“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.
sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) subheading level.

can be classiﬁed.
can be classiﬁed.

Therefore, start by using rule one i.e.

determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Examples – Goods in sets for retail sale of the value.

Examples – Goods in sets for retail sale – character of the set (value) Rule 3(c) A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).

Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] of chapter 24, since they are not of tobacco.
Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.

Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.

applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.
It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.

Move on to the Rule 3(a) description.

Rule 3(a) Analysis next rule.
Rule 3(a) Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] The text of a heading providing a more accurate and complete description: Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Composite (components are adapted, complimentary and sold together) ✓ Goods in sets for retail sale Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.

The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.
The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.

It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.
It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.
to the principles of rule 3”.
GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] The text of a heading providing a more accurate and complete description: Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – ✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together Example – section XI, note 2a or headings Examples – Goods in sets for retail sale Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating oil and a plastic case In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives the article its essential character and, therefore, determines its classiﬁcation The hairdressing set will take the essential character of the electric hair clippers due to consideration of the value.
Examples – Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – HS 52.10 (cotton fabric) HS 55.13 (polyester) Examples – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential character of the set (value) under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] Composite goods - Double cab pickup?
HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” The rule is only applicable to the goods stated above suitable for repetitive use” Rule # 5 (a) “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers Rule 3(c) Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading which occurs last in numerical order among those which equally merit consideration” precise provision in the HS: or purpose of the product.
• These goods are classiﬁed in the heading which covers similar goods • Factors which may be taken into consideration to make this determination include description, character 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG New products are often introduced to international trade for which they may not appear to be a 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted unto it.
The two headings would merit equal consideration.

By virtue of rule 3(c), this mixture would be classiﬁed under 11.02 (last in numerical order).

The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.

Composite goods consisting of different components that are complimentary and sold together.
Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] of chapter 24, since they are not of tobacco.
Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 31 GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
“The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.
to the principles of rule 3”.

GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.
Quantity, bulk, value considerations for determining essential character A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading which occurs last in numerical order among those which equally merit consideration” This is the third method of determining the classiﬁcation of the goods described in rule 3 Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.

By virtue of rule 3(c), this mixture would be classiﬁed unto it.
Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) The two headings would merit equal consideration.

By virtue of rule 3(c), this statuette would be classiﬁed under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
Rule # 5 is a two part rule Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] The rule is only applicable to the goods stated above suitable for repetitive use” HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may then consider rule 4: “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: • These goods are classiﬁed in the heading which covers similar goods • Factors which may be taken into consideration to make this determination include description, character or purpose of the product.
Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco ✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings of chapter 24, since they are not of tobacco.
Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – Containers which are so constructed so that they also have a use other than their original use are “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 5(a) does not apply to the following: with the contents.
Example – gold cigarette cases Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 32 GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if they meet the following criteria: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders intended, and do not have other uses 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused for which they are intended, and able to protect for the same purpose.
3) They should be presented with the articles for which they are intended, whether or not the articles are packed separately 4) They should be of a kind normally sold with article This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Examples – Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings of chapter 24, since they are not of tobacco.
Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” Rule 5(a) does not apply to the following: Containers which are very expensive in relation to their contents, and are not normally sold with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.
Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.

Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 33 “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.
to the principles of rule 3”.

GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.
Quantity, bulk, value considerations for determining essential character The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – ✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.

The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.
The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.

It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.
It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.

2.
2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
“Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.

However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.
These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: Packing material or containers which are clearly “suitable for repetitive use” Example – metal cylinders for LPG Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents Containers which are so constructed so that they also have a use other than their original use are not intended to be classiﬁed separately from their contents, examples – GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.

By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule Rule # 5(b) under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly suitable for repetitive use” Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods 3) They should be presented with the articles for which they are intended, whether or not the articles are It should be noted that the term “suitable for repetitive use” means that the goods will be reused for the same purpose.
Packing material or containers which are clearly “suitable for repetitive use” Example – metal cylinders for LPG This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents Containers which are so constructed so that they also have a use other than their original use are not intended to be classiﬁed separately from their contents, examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings of chapter 24, since they are not of tobacco.
Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” Rule 5(a) does not apply to the following: Containers which are very expensive in relation to their contents, and are not normally sold with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.
Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.

Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 34 The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.
to the principles of rule 3”.

GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.
Quantity, bulk, value considerations for determining essential character The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – ✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.
for Trade and Economic Development (COTED).

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Value (CIF) Some Deﬁnitions imported goods.
“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.

A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.

sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise requires.” An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 the relevant Competent Authority in the Member State.
♦ Member States in quantities which are considered adequate to justify the application of tariff protection.

These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Value (CIF) Some Deﬁnitions imported goods.

“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.
A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on Doing so will likely result in an incorrect classiﬁcation.

Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.

for Trade and Economic Development (COTED).


The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the subheading level.

Therefore, start by using rule one i.e.

determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods can be classiﬁed.

Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 35 – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.
sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.

Doing so will likely result in an incorrect classiﬁcation.
After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.

subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.

determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.

According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.
♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs An example of a subheading note that conﬂicts with a chapter note – import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, Structure of the CET: The Common External Tariff of the Caribbean Community was established by decision of the Council for Trade and Economic Development (COTED).
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.

♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for Community treatment.
♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 36 the relevant Competent Authority in the Member State.

♦ Member States in quantities which are considered adequate to justify the application of tariff protection.
These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

Value (CIF) Some Deﬁnitions imported goods.

“Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.
A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.
sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions Part One - This module will be covered in two parts: • Part One – The Harmonized System (HS) • Part Two – The General Interpretive Rules Harmonised System Development The “Harmonized Commodity Description and Coding System”(HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products.
The HS is maintained by the WCO, an independent intergovernmental organization with over 179 member countries based in Brussels, Belgium.

The Harmonized Commodity Description and Coding System (HS) is one of the most successful instruments developed by the WCO.

It is a nomenclature covering a wide range of commodities.

The collection of accurate customs duties depends on the proper classiﬁcation of these commodities.
It contains a series of provisions and rules aimed at insuring its uniform interpretation and application with a view to facilitate customs and international trade.

It the light of changes in technology and patterns of international trade, the HS Nomenclature is amended every four to six years.

The amendments also include clariﬁcation of certain texts in order to facilitate a uniform application and to provide legal certainty with regards to classiﬁcation decisions taken by the HS committee.
Development of Classiﬁcation Systems: 1913 - 1st international Nomenclature signed in Brussels by 29 countries 1931 - The Geneva Nomenclature 1938 - Standard International Trade Statistics (SITC) 1975 - Customs Co-operation Council Nomenclature (CCCN) The ﬁrst goods classiﬁcation systems were simple and difficulties appeared with globalization: Most countries had adopted their own goods classiﬁcation systems which was identiﬁed as a major barrier to trade.
The HS was born out of a pressing need for a standard international customs nomenclature as there were fundamental differences in the goods nomenclatures of various countries: The HS entered into force on 1st January, 1988.
It is used by over 200 countries and classiﬁes over 98% of world trade: As far as possible the HS is: Simple - accessible to both the general public and technical experts Precise - adopts the most appropriate tariff heading for each commodity The General Interpretive Rules (GIRs) ✓ To ensure uniform legal interpretation of the HS, the general interpretive rules have been established ✓ Firstly, before classiﬁcation, you must take note of the following: ✓ They set out certain principles to render the application of the HS coherent and simpler ✓ The proper classiﬁcation of goods in the HS requires a comprehensive understanding of its General Rigorous - in application to ensure that the same item is classiﬁed in an identical manner by all users Interpretive Rules Classiﬁcation according to the HS: ✓ - What is it?
✓ - What material or substance is it made of?

✓ - What are its function or use?

✓ - In what form is it usually imported?

✓ - Is this the only possible classiﬁcation?

✓ Then, you ﬁnd the chapter(s) for the product to be classiﬁed – Structure of the Harmonized System: Arrangement of the HS: heading and sub-heading: Goods are arranged in the HS in order of their degree of manufacture.
The more processed, the higher the There are six such rules, the ﬁrst four are general in application and must be applied in the order in which they are presented (rule one, before rule two, before rule three etc) - Rules 1 – 4 (identical to CCCN rules) - Rules 5 & 6 (new rules and stand on their own) The arrangement of the chapters is historical, thus the chapters covering mechanical appliances were gradually added as industry developed, explaining their position at the end of the tariff.
The Legal Notes ✓ These notes form an integral part of the HS system and are legally binding.

A.
Raw materials / Natural goods B. Un-worked products C. Semi-ﬁnished products D. Finished products However there is a logical progression within the nomenclature: - Fabrics before clothes / Metals before machines Headings covering related products are grouped into chapters Chapters covering related products are grouped into sections ✓ 21 Sections ✓ Chapters 1-99 ✓ 1244 Headings ✓ 5224 Sub-headings ✓ Chapters 77 reserved for future use ✓ Chapters 98 & 99 reserved for national use - The HS is structured along two main principles: - The Legal System and the Non-Legal System.
- Other factors that deserve consideration: Punctuation and Terminology Legal System of the HS • It consist of the structure of the HS • It is the basis or foundation for the classiﬁcation process • It is legally binding The legal structure comprises the following: - The General Interpretive Rules - The Legal Notes (section, chapter, subheading) ✓ Then proceed to identify: Then check the: o General Rules o Section Notes o Chapter Notes o Heading o Sub-heading o Customs Code HS Headings ✓ They are essential for classiﬁcation.
✓ There are 3 levels of legal notes: o Section Notes (note 1 to section 1) o Chapter Notes (note 1 to section 1) o Sub-heading Notes (sub-heading note 2 to chapter 71) The legal notes are located at the beginning of each section or chapter to which they relate.

Not all sections and chapters contain legal notes: e.g.

- Section III & V has no section notes.

Chapter 53 has no chapter notes.


The purpose of the legal notes are to ensure that a given product is always classiﬁed in one and the same heading or sub-heading to the exclusion of any others which might appear to merit consideration.
The legal notes directs the user to the appropriate section, chapter, heading or subheading by deﬁning the scope or limits of a heading or sub-heading and providing a listing of goods excluded / included from a particular section, chapter, heading or sub-heading (notes of exclusion/notes of inclusion) ✓ Individual chapters are divided into speciﬁc headings which relate to the goods of that chapter ✓ Headings are numbered in sequential order ✓ Headings exhaust the items covered by a chapter ✓ The texts of the headings are in heavy bold type ✓ The text at the heading level are uniform internationally ✓ Each heading of the HS is identiﬁed by a four (4) digit code ✓ The ﬁrst two digits of the code indicate the chapter wherein the heading appears ✓ The latter two digits indicate the position of the heading in the chapter: Classiﬁcation of Goods according to the HS: Goods must be classiﬁed on a step by step basis in the HS, so in every case a product must ﬁrst be classiﬁed: Example – 07 denotes (chapter 7) - edible vegetables and certain roots and tubers - 07.13 dried leguminous vegetables, shelled, whether or not skinned or split 1) in its appropriate 4-digit heading 2) then in its appropriate 1-dash (5th digit 1 – 9) 3) sub-heading and, only thereafter 4) in its appropriate 2-dash subheading (6th digit 1 – 9) Example – classiﬁcation of a USB Flash Drive 1) 85.23 – media for the recording of sound or other phenomena: 2) 8523.50.00 – semi-conductor media: 3) 8523.51.00 – solid state storage …..: 4) 8523.51.10 - (USB
 Flash Drives) HS Sub-Headings several subheadings: Apart from approximately 312 headings out of the 1244, the remaining 932 headings are subdivided into The absence of subheadings is indicated by two zeros - e.g.
4801.00 [newsprint] Subdivisions of a heading are done methodically and systematically in accordance with speciﬁc guidelines and a speciﬁc numbering system: - The terms of the Headings & Sub-headings and their related numerical codes of the terms of any subdivisions.
This classiﬁcation process must be carried out without exception for each step, with no account being taken Example – 01.04 [live sheep and goats] 0104.10 [sheep]: 0104.10.10 [for breeding] 0104.10.20 [for rearing] 0104.10.90 [other] 0104.20 [goats]: 0104.20.10 [for breeding] etc These subdivisions are known as breakouts which may either be: o 1 dash (-) ﬁrst level subheading identiﬁed by a ﬁve digit code (e.g.

HS 0713.30 – Beans) o 2 dash (--) second level subheading identiﬁed by a six digit code (e.g.
HS 0713.32 – Small red beans) The purpose of the subheadings are to breakdown and provide more detail about the items named in the heading: o Subheadings must exhaust the heading from which they are derived o No two subheadings within a heading provide for the same goods: o An item is classiﬁed under one and only one heading, and one and only one subheading o The text at the subheading level (6 digits) are also uniform internationally: o NB – provisions are made under the terms of article 3 of the HS for contracting parties to establish additional subdivisions to cater for goods which are not given separated status under the HS This option has been used extensively in the structure of the common external tariff of the Caribbean Community but with a number of variations: e.g.
– [D/ca in 2006 for VAT purposes] HS 4819.10 (4819.10.10 / 4819.10.90) HS 3916.10 (3916.10.10 / 3916.10.90) The text at the eight digit subheading level are uniform regionally in the structure of the Common External Tariff (CET), while the text at the ten digit level are utilized for national tariffs 1) Use all the headings and subheadings without addition or modiﬁcation together with their related Each contracting party to the HS undertakes to: numerical codes 2) Apply the general rules and the legal notes 3) Follow the numerical sequence of the HS Punctuation is also essential for determining the correct classiﬁcation of a product: Example They play an important role by providing grammatical rules for reading and understanding the text 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather Most of the problems involved in the use of the HS are essentially questions of interpretation and application The HS commodity electronic Data Base provides the HS classiﬁcation of over 200,000 commodities The period indicates the end of the descriptive text accompanying the heading or subheading commonly traded.
Other Data Bases, especially from customs organisations can also be very useful.

Non-Legal System of the HS of the classiﬁcation.

product.
Users of the HS system may arrive at different decisions concerning the classiﬁcation of the same There are available tools to enable users to refer to the HS in a simple and rapid manner These tools make up the “non-legal system of the HS” and comprises the following: - Titles of section and chapters - Alphabetical index / classiﬁcation opinions - Explanatory notes - HS classiﬁcation data base General interpretive rule #1 provides the basis for exclusion from the legal system and for use as ✓ They are only pointers or labels used to divide up the nomenclature ✓ They help in directing you in areas of the nomenclature Titles of section and chapters: reference only ✓ They have no legal standing - Titles of section and chapters: in chapter 94 Alphabetical Index: Though these tools are provided by the HS council, it should be noted that: 1) They have no legal status 2) They are for ease of reference only 3) They only provide needed assistance in the classiﬁcation process Data Bases: e.g.
- CROSS Punctuation of the HS tariff.

The use of the comma (,) – executive cases, briefcases….]

The use of the semi-colon (;) independent units Example • The comma separates items of a list or sets of descriptors e.g.

– 42.02 [Trunks, suitcases, vanity-cases, Example - 41.15 [Composition leather with a basis of leather or leather ﬁbre, in slabs sheets or strip, whether ……..] • The semi-colon is used to denote a full stop.
It separates portions of a classiﬁcation number into Example – chapter 39 (plastics and articles thereof however a plastic chair would be best classiﬁed • Always read what is before and after the semi-colon as separate items to ensure proper classiﬁcation To facilitate the location of references in the HS to products mentioned therein and the share or bond certiﬁcates headings/subheadings in which that article is cited available in two volumes.
The use of the semi-colon essentially divides this heading 49.07 into ﬁve separate parts 49.07 – Unused postage, revenue or similar stamps; stamp impressed paper; bank notes; cheque forms; Classiﬁcation Opinions: The compendium of classiﬁcation opinions contain a list of some of the more difficult classiﬁcation decisions taken by the HS committee in detailed description Explanatory Notes: (available in four volumes) These EN’s notes provide detailed additional information and deﬁnitions, and offer direction in interpreting the headings and subheadings to ensure proper interpretation of the HS.
The courts have consistently followed the EN’s for guidance especially when they are persuasive and speciﬁcally include or exclude an item from a tariff heading.

The use of the colon (:) subdivisions have been made Example 84.06 – Steam turbines and other vapour.... 8406.10 – Turbines: 8406.11 – For marine propulsion 8406.19 – Other • The colon is used to indicate that there is a list to follow.

In the HS tariﬀ it alerts us to the fact that further The use of the period (.)
Example 42.03 – Articles of apparel and clothing of leather and of composition leather.
Only those articles described therein can be classiﬁed under the terms of that heading Terminology The use of key words “And” and “Or” The word “And” is used to add further descriptions and conditions The word “and” adds the condition that the uppers of the footwear be composed of leather The word “Or” is used to oﬀer alternatives 64.03 – Footwear with outer soles of rubber, plastic, leather or composition leather and uppers of leather.
The word “or” offers alternatives in that footwear classiﬁable in the heading may have soles of rubber, plastic, leather or composition leather.
The use of key terms in the HS: “Principal use” – the use that exceeds any other single use of the article [heading 87.03, 87.05] “Chief weight” – dominant weight of a mixture Chief weight is of particular importance with regards to textiles and metals [sec 16, note 2] “Mutatis mutandis” – the substitution of new terms or articles [explanatory notes 21.01] “Prima facie” – a phrase which means “on the face of it” as it appears to be [interpretive rule 3] “Inter alia” – whenever used, this term means “among other things” [cha 42, note 3] “Throughout the nomenclature” [note 3, cha 41] A frequently used term in the legal notes which means that the phrase or expression to which the note refers is applicable throughout the tariff “Except where the context otherwise requires” An expression which refers to “except where the wording of a particular text indicates otherwise” [section 1, notes 1 & 2] “Subject to” – stating the controlling provision to be consistent with [Sec XVI, note 2] “Parts” Rule 3b provides for the classiﬁcation of certain goods “as if they consisted of the material or component “Essential character” which gives them their essential character” Some criteria to be used when applying this concept: Throughout the HS, the criteria for “parts” must fulﬁll the following provisions: a.
Parts cannot be used on their own; or b.
They must be combined with other articles to be used; or c. They are an integral, constituent, or component part without which the article could not function: or d. They lend to the safe and efficient operation of the article; and e. They are identiﬁable by shape or other characteristics as being an article solely or principally used as a rules: • Articles of chapter 95 • Articles of section XVII parts of road motor vehicles of HS heading 84.83 “Parts” (Section note 2) Sec XVI (Chapters 84 – 85) Subject to note 1 to Sec-16, note 1 to Cha-84 & note 1 to Cha 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classiﬁed according to the following The following: - General interpretive rules - Section, chapter and subheading notes nomenclature of the Harmonized System part “Accessories” Throughout the HS, the criteria for “accessories” must fulﬁll the following provisions: respective headings.
Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48, are in all cases to be classiﬁed in their - Texts of the headings and subheadings and their related numerical codes and they alone, form the - The ﬁrst 5 rules for general interpretation of the HS apply at the heading or four digit level, while rule six The heading numbers are shown in the ﬁrst column The second column contains the six digit (subheading codes) of the HS The third column contains the texts of the headings in heavy (bold) type and the text of the smaller headings in smaller type.
GIR 1 provisions” “The titles of sections and chapters are provided for ease of reference only; for legal purposes, classiﬁcation shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following (Rule # 6) - New rule applied at the subheading level - stands on its own relates to the classiﬁcation of goods at the subheading or six digit level GIR 2 Rule 2(a) or ﬁnished article.
disassembled” “Any reference in a heading to an article shall be taken to include to that article incomplete or unﬁnished, provided that, as presented, the incomplete or ﬁnished article has the essential character of the complete It shall also be taken to include a reference to that article complete or ﬁnished presented unassembled or 1.

Outlines the principles for the classiﬁcation of incomplete or unﬁnished articles, and 2.
Outlines the principles for the classiﬁcation of unassembled or disassembled articles.

This is achieved by extending the scope of the heading beyond the text of the heading.

The rule allows incomplete, unﬁnished, unassembled and disassembled goods being recognizable or identiﬁable as the complete or ﬁnished product, to be classiﬁed under the heading of the ﬁnished article.
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines with the same heading ( including machines of 84.79 or 85.43) are to be classiﬁed with the machines of that kind or in heading 84.09, 84.39, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, or 85.38 PART TWO: The General Interpretive Rules (GIR’s) The HS Nomenclature sets out in systematic form, all the goods that are dealt with in international trade.
✓ 3) Speciﬁes the legal elements to be considered when classifying goods It groups these goods in sections, chapters, headings and subheadings indicating, as concisely ✓ The most important of all the rules ✓ Accounts for approx.

80% of goods being classiﬁed In chapters 73 to 76 and 78 to 82,(but not in heading 73.15), references to parts of goods do not include as possible, the categories or types of goods they cover.
Rule 1 can be broken down into 3 parts: This rule does not normally apply to the following sections: In many cases, the variety and number of goods that appear to be classiﬁed in a section, chapter, and have no legal bearing on the classiﬁcation of goods heading and subheading are endless.
• Titles of section and chapters: To ensure that products can simply and clearly be classiﬁed under the Harmonized System, the HS - are found at the beginning of each section, chapter and sub-chapter incorporates a set of six rules upon which the system is based.
- provide a broad description of the type of goods covered by the section and chapters - direct a user as to where a particular commodity or good to be classiﬁed is likely to be found • Firstly, it begins by establishing that the section / chapter titles are provided for ease of reference only, Sec 1 – animals and animal products Sec 2 – vegetable products Sec 3 – fats, oils and waxes Sec 4 – foodstuffs and beverages Sec 5 – mineral products Sec 6 – chemical products A thorough understanding of these rules are necessary for the proper classiﬁcation of goods in the HS - do not have any legal force This rule applies with greater frequency in the case of the following sections: ✓ Bulk ✓ Quantity ✓ Quality ✓ Weight ✓ Value “Sets” Their role in relation to the use of the goods.
Example – craft kit: • Dolls heading - 95.02 / 95.03???

• Scissors heading - 85.13 • Flash Cards heading - 49.11 • Paper heading - 48.23 • Paint heading - 32.13 • Paint Brush - heading 96.03 Goods put up in sets for retail sale are to be classiﬁed according to the material or article which gives the set its essential character.

To be considered a set, the goods must: 1.

Consist of at least two diﬀerent articles classiﬁable in two diﬀerent headings 2.
Consist of articles put up together to meet a particular need or activity Example – survival kit Kit containing articles which can assist in the sustenance of life in difficult situations 3.
Must be put up in a manner suitable for retail sale The following are not regarded as sets: “Goods not packed in a manner suitable for retail sale” Example – furniture sets / massage tub with pump “Materials / articles packaged together to be mixed to create a speciﬁc good” Example – adhesives consisting of resin and hardener packaged together HS 35.06 a.

Accessories may facilitate use or handling; or b.
They may widen the range of uses of the main article; or c. They may improve the operation of the main article; and d. they are not needed to enable the goods with which they are used to fulﬁll their intended function; and e. They are identiﬁable as being intended solely or principally for use with a speciﬁc article “Parts of General Use” Sec XV (Chapters 72 – 83) Throughout the HS, the expression “parts of general use” means: • Articles of heading 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal [Sec XV note 3] • Springs and leaves for springs (73.20), of base metal, other than clock or watch springs heading (91.14) • Articles of heading 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading 83.06 • Section XVI does not cover parts of general use as deﬁned in note 2 to section XV of base metal or similar • Articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses of technical uses (heading 59.11) Sec XVI note 1 goods of plastics (chapter 39) • Transmission or conveyor belts (cha 39 & 40) vulcanized rubber(40.16) • Brushes of a kind used as parts of machines (96.03) • Articles of chapter 82 and 83 drill bits • Articles of chapter 90 digital camera zoom lens • Articles of chapter 91panel clock 96.12 • Articles of leather or composition leather or fur skin (heading 42.05/43.03) of a kind used in machinery or mechanical appliances or for other technical uses that part or accessory • Transmission or conveyor belts of textile material (heading 59.10) or other articles of textile material for references to parts of general use.
For the purposes of chapter 83, parts of base metal are classiﬁed with their parent articles with the exception of headings 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (chapters 74 to 81) which are not to be taken as parts of articles of this chapter Section note 3 References in chapters 86 to 88 to parts or accessories do not apply to those which are not suitable for use solely or principally with the articles of those chapters.
A part or accessory which answers to a description in two or more of the headings, is to be classiﬁed under that heading which corresponds to the principal use of Parts and accessories of air-cushioned vehicles are classiﬁed in the same way as those of vehicles of the heading in which the air-cushioned vehicles are classiﬁed under the provisions of the section notes 5(a), 5(b) NB – there is no accommodation for “parts” or “accessories” in chapter 89.

The above classiﬁed according to constituent material.
Example – and 5(c) Summary • Typewriter or similar ribbons whether on spool or on cartridges classiﬁed according to material or heading Each heading is identiﬁed by four digits, the ﬁrst two indicating the chapter number and the second two the numeral order in which the heading appears within that chapter.
The HS Nomenclature includes the general rules for interpretation of the HS, the Section, Chapter and - must be used in sequence in the order in which they are presented Subheading Notes, and the headings and subheadings: [i.e.
rule 1 before rule 2 before rule 3 etc] Legal Status: • They form an integral part of the legal framework of the HS • They establish the basic principles for the classiﬁcation process • They are designed for uniform interpretation and application In every instance, the rules should be quoted to support classiﬁcation.

Example – goods classiﬁed by application of Rule 1, Rule 2(a), 2(b), 3(a), 3(b), 3(c) etc.
Six general interpretive rules: (Rules #’s 1 TO 4) - General in application - performed at the heading level (Rule # 5) - New rule applied at the heading level - Speciﬁcally deals with containers and packing - In contrast to rules 1 to 4, rule 5 is not applied in sequence (it stands on its own) • The ﬁrst consideration of rule one gives a clear indication that the classiﬁcation of a product cannot be determined by the titles of sections or chapters • The second consideration of rule 1 states that Classiﬁcation of products is determined by the following: - The wording of the text of the heading - Any relevant legal notes [section / chapter] It will not always be possible to arrive at a single and correct classiﬁcation by using the text of the heading and legal notes.
In some instances, we may ﬁnd a number of classiﬁcations which seem equally applicable.
In these cases, the last provision of rule 1 will be applied only if the text of the heading and the notes do not give you an exact classiﬁcation • The third consideration of rule one states that when it is not possible for classiﬁcation to be determined by the terms of the heading and any relative section or chapter notes, then, it shall be determined according to the following provisions of the general interpretive rules ( rules 2 to 6) Sec 16 – electrical equipment & machinery Sec 17 – vehicles, aircrafts and vessels Sec 18 – clocks and watches Sec 19 – arms and ammunition Sec 20 – miscellaneous manufactured articles Examples: • Vehicle without wheels [Incomplete] • Repaired vehicle not yet sprayed (painted) [unﬁnished] • Bicycle shipped in parts [unassembled / disassembled] For rule 2(a) to be applied, the following conditions must be achieved: 1.
The articles in their state must have the essential character of the ﬁnished article e.g.

model toys As a general principle, blanks, which are articles not ready for direct use having the approximate shape or outline of the ﬁnished article or part, and which can only be used for completion into the ﬁnished article or part, are regarded as incomplete or unﬁnished articles classiﬁable in the same heading as the complete article, unless they are speciﬁcally referred to in a given heading e.g.
HS 45.02 & 45.03 2.

The text of the heading or the legal notes do not exclude the goods Examples – HS 91.08 & 91.09 = “watch and clock movements complete and assembled” 3 – The process involved in the assembly constitutes: In general, unassembled or disassembled goods need only be assembled by means of simple ﬁxing devices, e.g.

screws, nuts, bolts, or by such processes as riveting or welding.

If major assembly operations are involved, the goods would be classiﬁed as individual parts.
Rule 2(b) “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.
Theclassiﬁcation of goods consisting of more than one material or substance shall be according to the principles of rule three” There are three aspects to rule 2(b), ﬁrstly: “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances” Examples: HS 44.09 - wood treated and stained HS 04.01 - milk with added vitamins and ﬂavouring The second aspect of rule 2(b): “Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance” Examples: HS 42.03 - leather gloves with textile fabric HS 44.03 - cork board with wooden frame In summary, the ﬁrst two aspects of rule 2(b) covers the following: - extends any heading referring to a material or substance to include mixtures with other materials or substances - extends any heading relative to goods of a given material or substance to include goods consisting partly of that material or substance The ﬁrst two aspects of rule 2(b) will only by applied if: The additional material do not change the essential character of the goods AND text of heading or legal notes do not exclude the goods.
The third aspect of rule 2(b) deals with goods apparently classiﬁable in more than one heading and A description by name is more speciﬁc than a description by class: In some cases the legal notes specify the criteria; The two headings would merit equal consideration.
By virtue of rule 3(c), this statuette would be classiﬁed Rule # 5 is a two part rule “The classiﬁcation of goods consisting of more than one material or substance shall be according HS 85.09 [electro-mechanical domestic appliances for working in hand with motor] x In the example above, weight determines the the essential character for textiles classiﬁed in those chapters Hairdressing set - this set consists of a pair of electric clippers, scissors, towel, comb, lubricating The text of a heading providing a more accurate and complete description: In cases where the legal notes do not specify the criteria, it will be a matter of interpretation as to what gives The hairdressing set will take the essential character of the electric hair clippers due to consideration Composite goods - Double cab pickup?
Rule # 5 (a) Rule 3 provides three methods by which goods are to be classiﬁed if the said goods could be classiﬁed in the rules for determining which heading is correct.

to the principles of rule 3”.


GIR 3 more than one heading 1) By the most speciﬁc description [rule 3(a)] 2) By essential character [rule 3(b)] 3) By the heading which occurs last in numerical order [rule 3(c)] These 3 methods must be followed in order Example – [electric shavers] HS 84.67 [tools for working in the hand with motor] x HS 85.10 [shavers and hair clippers with motor] Example – glass windscreen HS 70.07 [safety glass, consisting of toughened or laminated glass]?
HS 87.08 [parts and accessories of vehicles heading 87.01 to 87.08]?
Heading #70.07 more speciﬁcally describes the goods in question Secondly, the rule establishes that if two or more headings refer to part only of mixed or composite goods such as a mixture of two or more textile materials or an ornament of 50% glass and 50% metal, or to part only of sets pet up for retail sale such as a shaving set, the classiﬁcation is to be determined by rules 3(b) or 3(c) “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classiﬁed by reference to 3(a), shall be classiﬁed as if they consisted of the material or component which gives them their essential character, insofar as the criterion is Rule 3 is only applicable when the terms of the heading or section or chapter notes do not provide for the goods Example – if the principle of the speciﬁc rule applies, then you do not have to go any further.
applicable”.
“The heading which provides the most speciﬁc description shall be preferred to headings providing a more general description.” However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally speciﬁc even if one of them gives a more complete or precise applied if the following conditions are achieved: ✓ Mixtures (more than one heading equally speciﬁc) ✓ Composite (different components form whole) ✓ Goods in sets for retail sale Rule 3(a) description.
Rule 3(a) Analysis next rule.

Rule 3(a) Where an article is mentioned in more than one heading, the article shall be classiﬁed in the heading which provides the most speciﬁc description.

It cannot be applied for the classiﬁcation of mixtures, sets of different articles put up for retail sale or composite goods consisting of different materials or made up of different components simply because in the case of the above mentioned goods, each heading would be regarded as equally speciﬁc.
Move on to the Firstly, this rule sets out two principles of speciﬁc description: 1) A description by name is more speciﬁc than a description by class 2) If the text of a heading provides a more accurate and complete description, the goods should be classiﬁed under that heading Classiﬁcation will then be determined by the material or component which gives the goods their essential character - The application of essential character requires examination of certain concepts The factors which determine essential character will vary depending on the goods – from the nature of the material or component to the bulk, quantity, weight or value of the component to the role of a material or component in relation to its use.
The classiﬁcation principal of rule 3(b) being that the most essential character rule will only be Examples – Example – section XI, note 2a or headings the article its essential character and, therefore, determines its classiﬁcation Examples – HS 52.10 (cotton fabric) HS 55.13 (polyester) Weight if established will give the woven fabrics in the example above its essential character Example – Composite goods consisting of different materials: Sanitary ware consisting a combination of plastic and chrome HS 73.24 (sanitary ware and parts of iron or steel) HS 39.22 (shower baths and similar sanitary ware of plastics) Composite goods consisting of different components to form a whole Headrest DVD Player Headrest for vehicle with convenient 8 inch DVD/VCD player and television tuner HS 94.01 (seats and parts thereof) Composite goods consisting of different components that are adapted and sold together The mirror and the table may be separated for ease in shipping, but together they form the whole value/bulk a consideration for essential character.
Composite goods consisting of different components that are complimentary and sold together.

Dining Furniture - this set consists of six chairs, one table, mirror and buffet, intended to be used together The dining set though not adapted, complement each other.

Quantity, bulk, value considerations for determining essential character Examples – Goods in sets for retail sale oil and a plastic case of the value.
Examples – character of the set (value) Rule 3(c) Mixtures (more than one heading equally speciﬁc) Mixture of 50% wheat and 50% corn ﬂour HS 11.01 [ﬂour of wheat] HS 11.02 [ﬂour of maize (corn)] under 11.02 (last in numerical order).
Composite goods consisting of different materials Statuettes of 50% glass and 50% metal HS 70.18 [statuettes of glass] HS 83.06 [statuettes of base metal] Mixtures (more than one heading equally speciﬁc) woven fabrics of 50% cotton and 50% of polyester – Goods in sets for retail sale – A pack of cigarettes with matches -The cigarettes will take the essential character of the set (value) A Pack of cigarettes with gold plaited lighter - the gold plaited lighter will take the essential Furniture - this piece of furniture consists of a wooden table with a mirror adapted and intended to be ﬁtted The two headings would merit equal consideration.
By virtue of rule 3(c), this mixture would be classiﬁed unto it.

under 83.06 (last in numerical order) Composite goods - ceiling fan with light?
HS 84.14 [fans] HS 94.05 [lamps and lighting ﬁttings] HS 87.03 [vehicles designed for transport of persons] HS 87.04 [vehicles designed for transport of goods] GIR 4 then consider rule 4: When you have considered rule 1, 2 and 3 and have decided that they do not apply, you may “Goods which cannot be classiﬁed in accordance with the above rules shall be classiﬁed under the heading appropriate to the goods to which they are most akin” New products are often introduced to international trade for which they may not appear to be a precise provision in the HS: Rule 5(a) deals with cases, boxes and similar containers Rule 5(b) deals with packing materials and packing containers The rule is only applicable to the goods stated above suitable for repetitive use” “Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or ﬁtted to contain a speciﬁc article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classiﬁed with such articles when of a kind normally sold therewith” “Subject to the provisions of rule 5(a), packing materials and packing containers presented with the goods therein shall be classiﬁed with the goods if they are of a kind normally used for packing such goods.
However, this provision does not apply when such packing materials or packing containers are clearly Rule 5(b) provides for the classiﬁcation of packing materials or containers.

These are classiﬁed under the same heading as the goods if they are entered with the goods and are normally used only for packing the Rule # 5(b) goods.
Examples being packing materials such as tins, cardboard boxes and poly-bags According to rule 5(a), cases/containers can be classiﬁed with the articles they are designed for if This rule does not apply, however, if the packing materials or containers are clearly for repetitive use: 1) They should be speciﬁcally shaped or ﬁtted and designed to accommodate the article for which they are Example – reﬁllable metal cylinders 2) They should be suitable for long-term use designed to have durability comparable to that of the goods It should be noted that the term “suitable for repetitive use” means that the goods will be reused 3) They should be presented with the articles for which they are intended, whether or not the articles are Packing material or containers which are clearly “suitable for repetitive use” for the same purpose.
Example – metal cylinders for LPG they meet the following criteria: intended, and do not have other uses for which they are intended, and able to protect packed separately 4) They should be of a kind normally sold with article Examples – Rule 3(c) enables goods to be classiﬁed when rules 3(a) and 3(b) cannot be used: • These goods are classiﬁed in the heading which covers similar goods “When goods cannot be classiﬁed by reference to 3(a) or 3(b), they shall be classiﬁed under the heading • Factors which may be taken into consideration to make this determination include description, character which occurs last in numerical order among those which equally merit consideration” or purpose of the product.
of chapter 24, since they are not of tobacco.

Rules 2(a), 2(b), 3(a), 3(b) and 3(c) are also not applicable This brings us to rule 4 and, on that basis, these products were classiﬁed in heading 24.02, which covers cigarettes of tobacco as being more akin.

The HS was later amended to cover these products in heading 24.02, which now reads “cigarettes of tobacco or of tobacco substitutes.

GIR 5 In contrast to rules 1 to 4, rule 5 is not applied in sequence, it stands on its own.
“In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein” with the contents.

Example – gold cigarette cases Containers which give the whole or set its essential character even if they are normally sold with their contents.

Example – lipstick in diamond case These containers and their contents are to be classiﬁed in their appropriate headings, which is the heading for the gold cigarette case and the lipstick diamond case.
Containers or cases which are imported separately, that is without their contents are also classiﬁed in their own appropriate heading.

For example, binocular cases are classiﬁed in the HS heading 42.02, which reads in part “binocular cases” when they are imported on their own.
✓ Composite (components are adapted, complimentary and sold together) HS 85.28 (reception apparatus for TV, whether or not incorporating video reproducing…..) The above could not be classiﬁed according to rule 1 because they are not covered by any of the headings Rule 5(a) does not apply to the following: Containers which are so constructed so that they also have a use other than their original use are Containers which are very expensive in relation to their contents, and are not normally sold not intended to be classiﬁed separately from their contents, examples – This is the third method of determining the classiﬁcation of the goods described in rule 3 Cigarettes of tobacco substitutes such as hemp 1996 HS # 24.02 – (cigars, cheroots, cigarillos and cigarettes of tobacco Musical instrument cases/boxes/bags, electric shaver cases, gun cases, binocular cases, telescope cases etc Packing crates for soft- drinks which are reusable would be classiﬁed separately from their contents GIR 6 requires.” “For legal purposes, the classiﬁcation of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, MUTATIS MUTANDIS, to the above rules, on the understanding that only subheadings at the same level are comparable.
For the purposes of the rule, the relative section and chapter notes also apply, unless the context otherwise An example of a subheading note that conﬂicts with a chapter note – Chapter 71, Note 4(b) Chapter 71, Subheading Note 2 Chapter note 4(b) deﬁnes the term platinum to include iridium, osmium etc, therefore iridium is properly classiﬁed in heading 71.06, 71.08, and 71.11 The ﬁrst ﬁve rules for general interpretation of the HS apply at the heading or four digit level.
According to subheading note 2, subheadings 7110.11 and 7110.19 are excluded for the classiﬁcation of iridium.

import or at a rate which is lower than that set out in the Schedule of Rates, subject always to the approval of the relevant Competent Authority in the Member State.

♦ Member States in quantities which are considered adequate to justify the application of tariff protection.
These items will not be eligible for the grant of exemption of duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining.

♦ Except where the context otherwise requires, per- cent or the symbol %, means percentage of Customs Value (CIF) Rule six relates to the classiﬁcation of the goods at the subheading or six digit level.
To apply this rule correctly, it must be clearly understood that the classiﬁcation of any product to its subheading in the HS may only be contemplated after the relative product has already been properly classiﬁed in its the temptation to classify directly in what might appear to be the correct subheading without ﬁrst ensuring that the relevant four digit heading is correct, must be avoided at all times.
The “General Interpretive Rules” establish the classiﬁcation principles which, unless the texts of headings, subheadings or section or chapter notes otherwise require, are applicable throughout the HS.
Some Deﬁnitions They clearly provide a step-by-step basis for the classiﬁcation of goods within the HS, so in every case a product must ﬁrst be classiﬁed to its appropriate four digit heading then to its appropriate subdivision at the next level within that heading and only then to its next subdivision, “Classiﬁcation” means, a process of arriving at a particular heading or sub-heading of a commodity within the HS.
A “Customs Tariff Nomenclature” means a listing of goods for the purpose of levying duties of customs on imported goods.

The Common External Tariff of the Caribbean Community was established by decision of the Council The “Common External Tariff” (CET) of the Caribbean Community is based on the “Harmonized System” Why do we use tariﬀ codes?
– Duties and Taxes (collection of revenue) – Vital tool used for collection of international trade statistics (data collection for import/export statistics) – Accepted method of identifying commodities for Rules of origin ( wrong in classiﬁcation = wrong in rules of origin) – Accepted method of identifying commodities for risk Analysis (consignments sent to green / yellow / blue / red lanes determined by HS Categories) – Why do we use tariff codes ?
– Tariff codes remain a vital element of core customs process areas (controls and procedures) e.g.
sanitary and veterinary controls, licensing, anti-dumping and countervailing duties, monitoring prohibitions /restrictions and quotas, among others – Trade negotiations /agreements (identifying commodities for tariff liberalization and quota-free preferences, scheduling of conditional tariff concessions/exemptions TARIFF Classiﬁcation of Goods based on HS 2017 | May 2020 | Dominica 37 Doing so will likely result in an incorrect classiﬁcation.
Structure of the CET: After determining the correct heading classiﬁcation, we then look at the subheadings under that heading.

for Trade and Economic Development (COTED).

Rule six then says that rules one to ﬁve that were applied at the heading level are now applied at the The classiﬁcation structure of the schedule of rates is based on the HS (Fourth Edition 2017) subheading level.

can be classiﬁed.

Therefore, start by using rule one i.e.


determine if the goods can be classiﬁed by the terms of the subheading and any relative subheading notes.
If not, consider each of the rules in order until the goods Example – composite goods consisting of diﬀerent materials Rattan furniture consisting 50% rattan and 50% wood Rattan furniture consisting 30% rattan, 30% wood, 30% glass and 10% metal HS 9403.80 rattan furniture HS 9403.60 wooden furniture Components to form a whole Combined microwave oven with toaster HS 8516.50 [microwave ovens] ?

HS 8516.70 [other electro-thermic appliances including toasters] ?
Rule six adds an additional qualiﬁcation that should be noted when classifying at the subheading level “That the chapter and section notes be used to classify at the six digit level unless they are contradicted by the subheading notes or texts.

Community treatment.
The units for statistical classiﬁcation is based on the metric system The Common External Tariff contains: 1) - the List of Abbreviations and Symbols used inthe publication 2) - the Titles of Sections and Chapters 3) - the General Rules for Interpretation of the HS 4) - the Schedule of Rates 5) - the List of Conditional Duty Exemptions 6) - the List of Items Ineligible for Duty Exemption ♦ Reference to the pages of the Schedule of Rates is included in the listing of Sections and Chapters to permit easy identiﬁcation in the Schedule of Rates.
♦ The GIRs provide the principles on which classiﬁcation under the System is based and are an integral part of the classiﬁcation structure of the Schedule of Rates.
♦ The rates of duty shown in the Schedule of Rates will be applicable to imports from third countries into the CARICOM Member States, as well as to goods traded among the Member States which do not qualify for ♦ The List of Conditional Duty Exemptions sets out those goods which, when imported for the purposes stated in the list, may be admitted into Member States free of