General Interpretative Rule 1
- The titles of Sections, Chapters and sub-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:
- At first, Rule 1 begins by establishing that, the titles of Sections, Chapters and Sub Chapters are provided “for ease of reference only”. They accordingly have no legal bearing on classification.
- The second part of this Rule provides that, “For legal purposes classification shall be determined according to the terms of the headings and any relative Sections or Chapter Notes”,
- Where appropriate, provided the terms of the headings or legal Notes do not otherwise require, the product shall be classified according to the provisions of Rules 2, 3, 4, and 5. In this case, the terms of the headings and any relative Sections or Chapter Notes are paramount and take first consideration in determining the classification of goods.
Legal classification according to Terms of the headings
Determine appropriate headings for Knitted Men and Women Knitted suits
Step by step approach
- 1st identification: The commodity is identified on the basis of its materials as an article of textiles
- 2nd possible section and chapter titles: The article is referred to section XI titled as Textiles and textile articles and on chapter 61 titled as Articles of apparel and clothing accessories, knitted or crocheted.
- 3rd determination of appropriate heading through consultation of legal base. The suits are classified in headings 61.03 and 61.04 respectively according to terms of the headings. (GIR1)
Application of Section and Chapter Notes in the Harmonized System
- General Interpretative Rule provides that, “For legal purposes classification shall be determined according to the terms of the headings and any relative Sections or Chapter Notes”.
- In the HS, there are Sections, Chapters and Subheadings Notes. Section and chapter Notes are applied along with GIR 1 while Subheading Notes are being applied along with GIR 6.
- These Notes help to establish as precisely as possible the scope and limits of certain Sections, Chapters, Headings or to define, or give classification guidance as to certain terms or expressions.
Exercise: Identifying Legal Notes Applicable
Question: Why Tails of bovine animals are named as horsehair in the HS?
Answer: according to definition Note 4 to chapter 5 throughout the Nomenclature, the expression “horsehair” means hair of the manes or tails of equine or bovine animals
Question: Why Mixtures of spices from different headings are classified in heading 09.10?
- Answer: according to Note of instruction 1(b) to chapter 9; mixtures of two or more of the products of different headings are to be classified in heading 09.10
Question: Why Heading 12.07 applies also to palm nuts?
- Answer: according to Inclusions Note 1 to chapter 12; Heading 12.07 applies, inter alia, to palm nuts and kernels—-
Question: Why wooded Furniture of chapter 44 are found in heading 94.03?
- Answer: according to Exclusion Note 1(0) to chapter 44; furniture of wooden materials is to be classified in chapter 94.
Legal and Non-Legal Texts
Legal Text
- The HS contains Section Notes, Chapter Notes and Terms of the heading which are regarded as legal texts according to the General Interpretation Rule (GIR) 1 of the HS.
- The Subheading Notes and terms of the Subheadings are Legal texts at the subheading level according to Rule 6 of the GIR of the HS.
- As parts of the structure of the HS, Section and Chapter Notes are often located at the beginning of Sections or Chapters and they should be consulted for every classification.
Non-Legal Texts
- These are publications that assist in the classification of goods;
- Explanatory Notes (EN) of the Harmonized System,
- The Alphabetical Index
- The Compendium of Classification Opinions.
- The EN and the Index are the Harmonized System Committee’s formal guidance on the Harmonized System;
- The compendium is the Harmonized System Committee’s classification decisions of individual goods.
- These publications have no legal force (not legally binding).
- These are publications that assist in the classification of goods;