Grouping of Goods in Chapters
- Sections in the HS contain one or more Chapters. eg, Section I has 5 Chapters, while Section III has only one Chapter.
- The Chapter numbers are always written using in Arabic numeral. They always have two digits for instance 01 (Chapter 1), 02 (Chapter 2), 15 (Chapter 15).
- Like Sections, arrangement of Chapters in the HS is based on three major criteria.
- Materials content of the article
- Articles made of same material are grouped together, for example, Wood and articles of wood are classified in Chapter 44. Plastic and articles thereof are classified in Chapter 39
- Usage or function of the article
- Articles that are used for the same function are grouped together. Examples are; Vehicles used for transportation are classified in Chapter 87 while Arms and ammunitions, parts and accessories thereof are used for defence (Chapter 97).
- Degree of processing or manufacture of an article
- Articles at the same stage of processing or Degree of manufacture are put together, for example
Article Chapter Stage of processing
Iron ore Chapter 26 Raw material
Iron bars Chapter 27 Semi – finished
Iron doors Chapter 73 Finished product