General Interpretative Rules

The General Interpretative rules (GIRs)

• To ensure uniform legal interpretation of the Harmonized System Nomenclature;
• Set out certain principles to render the application of the Harmonized System coherent and simpler.
• Rule 1 to 4 are applied in hierarchical order (Rule 1 before rule 2, before rule 3 etc..)
• The first five rules relates to the 4-digit headings;
• Rule 6 relates to classification of subheadings.

GENERAL INTERPRETATIVE RULES (GIRs)

Induction Batch 29

Ahsan Aalee / Aishath Wilny

1. Understand the purpose of HS2. Recognize the structure of HS, and the correct methodology in relation to the application of the GIRs3. Understand the terminologies in relation to HS and GIR in particular3. Recognize the General Interpretative Rules and its role in ensuring uniformity across borders in terms of HS application and goods classification4. Appreciate the importance of uniformity and accuracy5. Develop a problem-solving mindset6. Practice with examples

Learning Objectives

At the end of the session participants are expected to...

RULE 1

RULE 1

Important Considerations

• Titles of Sections, Chapters and Sub-chapters
• Terms of Headings
• Section or Chapter Notes

RULE 1 - Ease of Reference Only

RULE 1 - Terms of Headings and Relative Section or Chapter Notes

Question

RULE 2(a) - Incomplete or Unfinished / Unassembled or Disassembled

RULE 2(a) - Incomplete or Unfinished / Unassembled or Disassembled

Important Considerations

• Incomplete / Unfinished
• Unassembled / Disassembled
• Essential Character

Essential Character

Factors to be Considered

Volume

Ingredients / Composition

Function

Volume

Size

Bulk

Weight

Constituent materials

Components

The component which gives the essential character

How the product is labelled & marketed

Constituent material of the part which gives the essential character

Value

Use

The type & level of information required is not always same for all products

Incomplete or Unfinished

Unassembled or Disassembled

RULE 2(b) - Mixtures & Combination

RULE 2(b) - Mixtures & Combination

For Example

Vanity Kit Cotton buds - 5601.21 Cotton wool pads - 5203.00 Emery board - 6805.20

RULE 2(b) - Mixtures & Combination

For Example

SPC Flooring Panel Wear Layer - Transparent Plastic Printed Top Layer - Vinyl Core Layer - SPC Core (70% limestone) Backing Layer - Foam

RULE 2(b) - Mixtures & Combination

For Example

Strawfit Plastic Straw - 3917.22 Preparations of Cocoa - 1806.90 Food Preparations, Nes - 2106.90

RULE 3

RULE 3(a) - Most Specific

RULE 3(a) - Most Specific

RULE 3(a) - Most Specific

RULE 3(b) - Essential Character & Sets

What is a Composite good?

Composite means...

A combination of various materials, parts or components etc.

Made of different parts, materials or elements etc.

Having two or more functions

Classified according to Principle Function.Failure to determine the principle function ------> G.I.R 3(c)

More Composite Goods

RULE 3(b) - Essential Character

RULE 3(b) - Sets

RULE 3(c) - Last in Numeric

Question

Question

Vanity Kit Cotton buds - 5601.21 Cotton wool pads - 5203.00 Emery board - 6805.20

Question

SPC Flooring Panel Wear Layer - Transparent Plastic Printed Top Layer - Vinyl (appearance) Core Layer - SPC Core (70% limestone) Backing Layer - Foam

Thanks!