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Case studies on Classification of goods in the Harmonized System

Section I-IV (Chapter 01- 24). Case studies on Classification of goods in the Harmonized System . Objectives:. To be able to apply classification principles for articles of Section I to IV. To be able to classify commodities described in Section I to IV correctly. Product Identification.

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Case studies on Classification of goods in the Harmonized System

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  1. Section I-IV (Chapter 01- 24) Case studies on Classification of goods in the Harmonized System

  2. Objectives: • To be able to apply classification principles for articles of Section I to IV. • To be able to classify commodities described in Section I to IV correctly.

  3. Product Identification Why is it necessary? • So that we classify correctly governed by the relevant Rules (GIRs) • Determine correct duty rate • Correct data on trade (trade statistics) • Be consistent, fair and uniform in the classification of goods

  4. Fried Rice • Shrimp 11% • Pork 10% • Carrot 5% • Onion 5% • Egg 10% • Rice 55% • Seasoning 4% • Not in airtight container

  5. Fried Rice Possible headings: 19.04- prepared cereals in grain form…? 16.02- other prepared meat….? 16.05-aquatic invertebrates prepared or preserved?

  6. Note 2 chapter 16 • Food preparation fall in this chapter if they contain 20% of sausage, meat, fish or other aquatic invertebrates or any combination there of • If the preparation contains two or more of the products, it is classified in the heading of chapter 16 corresponding to component or components which predominates by weight

  7. Cont. Note 2 to chapter 16 • By application of note 2 to chapter 16, combination of shrimp and pork is more than 20% (11% +10% = 21%)

  8. answer By Application of Rule 1 , Note 2 Chap 16 The Article contains 21% by weight of shrimp and Pork. Shrimp predominates by weight. Heading 16.05 1605.21- shrimps and pawns GIR 1&6 (according to packing material)

  9. meat pie Pasta – 50% beef - 25% Seasoning- 25%

  10. Note 2 chapter 16 • Contains more than 20% by weight of sausage, meat, meat offal, blood, fish or crustaceans...or other aquatic invertebrates. • However, the provisions do not apply to stuffed products of heading 19.02 or the food preparations of heading 21.03 or 21.04

  11. answer Exclusion Note 2 to Chapter 16 Application of Note 1 (a) to Chap 19 GIR 1-Terms of the Heading 19.02

  12. Meat pie Possible headings, 16.04 19.02 21.04 21.03

  13. Seasoning Composition Tomato ketchup 70% Shrimp 25% Other 5%

  14. Shrimp seasoning Possible headings 03.06 16.05 21.03

  15. answer GIR 1 Exclusion Note 2 Chapter 16 Note 1 (e) Chapter 21 Terms of Heading 21.03

  16. Instant coffee? Ingredients coffee essence 40% Sugar 30% Skim Milk 30%

  17. Instant coffee Possible headings 09.01 21.01

  18. Instant coffee( cont.) 0901-Coffee, whether or not roasted or decaffeinated; ….. Note 1 (b) chap 9 directs us to chap. 21 Note 2 chap 21- extracts, essences and concentrates, of coffee, tea…. answer 21.01

  19. Roasted G.nuts Roasted ground nuts

  20. Roasted ground nuts Possible heading 12.02 0r 20.08

  21. Ground nuts.... Heading 12.02 groundnuts, not roasted or otherwise cooked Heading 20.08 preparation...of ...nut ...otherwise prepared....not elsewhere specified Answer 20.08 (GIR 1) Terms of Heading

  22. Atlantic ocean salmons Atlantic Ocean salmons, smoked and vacuum-packed

  23. Smoked atlantic salmon Possible heading 16.04 Or 03.05

  24. answer Chapter 16, Note 1 excludes smoked fish from chapter 16 Heading 03.05 state in part Fish, dried.....smoked fish.....fit for Human consumption…. Heading 03.05 GIR 1 Terms of the heading (subheading 0305.41 by application of GIR6)

  25. Example: mineral water Plastic bottles containing Mineral water

  26. Plastic bottle with mineral water Which rule is approriate in classification of this item? GIR 1-6

  27. answer GIR 5(b) 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

  28. answer The plastic bottle is of a kind that is normally sold together with the product. It is therefore classified together with the mineral water (22.01)

  29. conclusion Correct identification of a product and correct classification is important for, • Determination of the correct duty rate • Reliable data on international trade • Trade facilitation ( smooth flow of trade) • Monitoring trade in restricted/controlled Goods e.g explosives, narcotics etc • Consistent, fair and uniform classification of goods

  30. The End Thank You For Your Attention

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