Criteria Used for Arrangement of Goods in the Harmonized System

The grouping of goods in the HS is sequentially organized on the basis of their nature, materials of which they are made of and functions they perform.
The grouping is also based on their degree of manufacture starting with natural goods, semi manufactured goods and finished goods.
Goods under chapters 1 to 83 are generally identified by their nature, materials and degree of manufacture, while goods under chapters 84 to 97 are generally identified by their functions.