Step by Step approach to classify goods in the HSN
Step 1: Identify a commodity (for section and chapter titles); in order to know the Nomenclature of goods to be classified; the following questions should be asked:
- The question is: what is a product?
- This question helps to analyse the goods arrangement criteria at section and chapter levels.
- What is the nature of goods to be classified?
- What are the materials of goods to be classified? and
- What is the function performed by the goods to be classified?
- The question is: in which group does the product belong?
- After having analysed the product, look for possible section and chapter title names. The nature, materials and functions will help to find an appropriate section and chapter titles in which the products are easily referred to.
Step 2: Consult the principles of classification (GIR 1 and then other Rules for legal classification),
- The question is: what is the legal requirement? Read through GIR1; GIR2a and b—–GIR6
Step 3: Determine an appropriate heading
- The question is: in which heading the product is described? Find a proper heading (read the terms of the headings)
Step 4: Determine the HS code for the product
- The question is: what is the product’s classification number? determine appropriate comparable dash subheading (HS Code number and specific descriptions). Examples are provided in section 3.2 below.