The arrangement of Sections in the Harmonized System is based on three major criteria.
Articles made of same material are grouped together, for example, Section II covers Vegetable products and Section XV covers Base metal and articles of base metal.
Goods that are used for the same need or same function are put together. Examples are; Vehicles, aircrafts, vessels and associated transport equipment are used for transportation and are classified in Section XVII. Arms and ammunitions, parts and accessories thereof are used for defence purposes and are classified in Section XIX.
iii. Degree of processing or of manufacture of an article
Sections are also arranged according to the degree of processing or of manufacturing, for example A live cow is classified in Section I. When it is slaughtered, hides are derived which are classified in Section VIII. When the hides are further processed, shoes are derived (Section XII).
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