By KHALEEL YOUSFANI ADDITIONAL COLLECTOR HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM (HS) Pakistan Customs Tariff (PCT) By KHALEEL YOUSFANI ADDITIONAL COLLECTOR

HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM The Harmonized Commodity Description and Coding System generally referred to as "Harmonized System” (HS) is a multipurpose international product nomenclature developed by the World Customs Organization (WCO). Comprises about 5,000 commodity groups Used by more than 200 countries and economies as a basis for their Customs tariffs

HS Multi-Purposes Tool Enables nations to monitor goods passing across their borders Without it, many national regulations and international conventions would be unable to be enforced Central pillar of the requirement for fiscal and regulatory compliance.

STRUCTURE OF HS Hierarchy of Sections, Chapters and Headings Section & Chapter Notes including Sub-heading Notes. General Rules for Interpretation of the Harmonized System A list of headings arranged in Systematic Order and, where appropriate, sub divided into sub-headings. These headings have been grouped in 21 Sections, 97 chapters and 1244 headings

STATUTORY COLUMNS OF HS PCT CODE DESCRIPTION CUSTOMS DUTY CD % Heading/ Sub-Heading Statistical Suffix (1) (2) (3) (4)

PUBLICATION COLUMNS (1) (2) (3) (4) (5) (6) (7) (8) (9) PCT CODE DESCRIPTION UNIT CD EXEMPTION CONCESSIONS ST WHT FED/ OTHER (1) (2) (3) (4) (5) (6) (7) (8) (9)

SECTION 1

LIVE ANIMALS; ANIMAL PRODUCTS Meat and edible meat offal. Fish and crustaceans, molluscs and other aquatic invertebrates. Dairy Produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included Products of animal origin, not elsewhere specified or included.

SECTION II

VEGETABLE PRODUCTS 6. Live trees and other plants; roots and the like; cut flowers and ornamental foliage. 7. Edible vegetables and certain roots and tubers. 8. Edible fruits and nuts; peel of citrus fruit or melons. 9. Coffee, tea, mate and spices. 10. Cereals.

VEGETABLE PRODUCTS 11. Products of the milling industry; malt; starches; insulin; wheat gluten. 12. Oil seeds and oleaginous fruit; miscellaneous grains, seeds and fruit; straw and fodder. 13. Lac; gums, resins and other vegetable saps and extracts. 14. Vegetable plaiting materials; vegetable products not elsewhere specified or included

SECTION III

ANIMAL OR VEGETIABLE FATS AND OILS AND THEIR CLEAVAGE PRODUCTS PREPARED EDIBLE FATS; ANIMAL OR VEGETABLE WAXES Animal or vegetable fats and oils and their cleavage products; prepared edible fats, animal or vegetable waxes.

SECTION IV

PREPARED FOODSTUFFF; BEVERAGES, SPIRTS AND VINEGAR; TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES. Preparations of meat, of fish or of crustaceans, molluses or other aquatic invertebrates 17. Sugars and sugar confectionery 18. Cocoa and cocoa preparations 19. Preparations of cereals, flour, starch or milk; pastry cooks’ products. 20. Preparations of vegetables, fruit, nuts or other parts of plants

SECTION IV

PREPARED FOODSTUFFF; BEVERAGES, SPIRTS AND VINEGAR; TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES. 21. Miscellaneous edible preparations. 22. Beverages, spirits and vinegar. 23. Residues and waste from the food industries; prepared animal fodder. 24. Tobacco and manufactured tobacco substitutes.

SECTION V

MINERAL PRODUCTS Salt; sulphur; earth and stone; plastering materials, time and cerment Ores, slag and ash. Mineral fuels, mineral oils and products of their distillation; bituminous substances ;mineral waxes.

SECTION VI

PRODUCTS OF CHEMICAL OR ALLIED INDUSTRIES Inorganic chemicals; organic or inorganic compound precious metals, of rare-earth metals, of radio active elements or of isotopes. Organic chemicals. Pharmaceutical products Fertilizers. Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other coloring matter; paints and varnish, putty and other mastics; inks. Essential Oils and resinoids; perfumery, cosmatics or toilet preparations.

PRODUCTS OF THE CHEMICAL OR ALLIED INDUSTRIES Soap, washing preparations, lubricating preparations, artificial waxes, prepared waxes, candles and similar articles, modelling pastes, dental waxes. Albuminoidal substances; modified starches; glues; Explosives; pyrotechnic products; matches; pyrophoric, alloys; certain combustible preparations. Photographic or cinematographic goods. 38. Miscellaneous chemical products.

SECTION VII

PLASTICS AND ARTICLES THEREOF; RUBBER AND ARTICLES THEREOF

SECTION VIII

RAW HIDES AND SKINS, LEATHER, FURSKINS AND ARTICLES THEREOF; SADDLERY AND HARNESS; ARTICLES OF ANIMAL GUT (OTHER THAN SILK-WORM GUT) 41. Raw hides and skins (other than fur skins) and leather. Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut). 43. Fur skins and artificial fur; manufactures thereof.

SECTION IX

WOOD AND ARTICLES OF WOOD; WOOD CHARCOAL; CORK AND ARTICLES OF CORK 46. Manufactures of straw, of esparto or of other plaiting materials; basket ware and wickerwork.

SECTION X

PULP OF WOOD OR OF OTHER FIBROUS CELLULOSIC MATERIAL; PAPER AND PAPERBOARD AND ARTICLES THEREOF Pulp of wood or of other fibrous cellulosic material recovered; paper of paperboard. 48. Paper and paperboard; articles of paper pulp, of paper or of paperboard. 49. Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans.

SECTION XI

TEXTILES AND TEXTILE ARTICLES Silk. 51. Wool, fine or coarse animal hair, horsehair yarn and woven fabric. 52. Cotton. 53. Other Vegetable textile fibres; paper yarn and woven fabrics of paper yarn.Man-made filaments. Man-made filaments. Man-made staple fibres. Wadding, felt and non wovens; special yarns; twine, cordage, ropes and cables and articles thereof. Carpets and other textile floor coverings.

TEXTILES AND TEXTILE ARTICLES 58. Special woven fabrics; tufted textiles fabrics; lace; tapestries; trimmings; embroidery. 59. Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use. 60. Knitted of crocheted fabrics. 61. Articles of apparel and clothing accessories; knitted or crocheted. 62. Articles of apparel and clothing accessories, not knitted or crocheted. 63. Other made up textile articles; sets; worn clothing and worn textile articles; rags.

SECTION XII

FOOTWEAR,HEADGEAR, UMBRELLAS, WALKING-STICKS, SEAT-STICKS, WHIPS, RIDING-CROPS AND PARTS THEREOF; PREPARED FEATHERS AND ARTICLES MADE THEREWITHE; ARTIFICIAL FLOWERS; ARTICLES OF HUMAN HAIR Footwear, gaiters and like; parts of such articles. Headgear and parts thereof. Umbrellas, sum umbrellas, walking-sticks, seat- sticks, whips, riding-crops and parts thereof. 67. Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair.

SECTION XIII

ARTICLES OF STONE, PLASTER, CEMENT, ASBESTOS, MICA OR SIMILAR MATERIALS; CERAMIC PRODUCTS; GLASS AND GLASSWARE Articles of stone, plaster, cement, asbestos, mica or similar materials. Ceramic products. Glass and glassware.

SECTION XIV

NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS STONES, PRECIOUS METALS, METALS CLAD WITH PRECIOUS METAL AND ARTICLES THEREOF; IMITATION JEWELLERY; COIN 71. Natural or cultured pearls, precious or semi- precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery; coin.

SECTION XV

BASE METALS AND ARTICLES OF BASE METAL Iron and steel. Articles of iron or steel. Copper and articles thereof. Nickel and articles thereof. Aluminum and articles thereof. ---------------------------- Lead and articles thereof. Zinc and articles thereof. Tin and articles thereof. Other base metals; cermets; articles thereof. Tools, implements, cutlery, spoons and forks, of base metal; arts thereof of base metal. Miscellaneous articles of base metal.

SECTION XVI

MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT; PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, AND PARTS AND ACCESSORIES OF SUCH ARTICLES Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof. 85. Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.

SECTION XVII

VEHICLES, AIRCRAFT, VESSELS AND ASSOCIATED TRANSPOST EQUIPMENT Railway of tramway locomotives, rolling-stock and parts thereof; railway of tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all kinds. Vehicles other than railway of tramway rolling-stock, and parts and accessories thereof. Aircraft, spacecraft, and parts thereof. 89. Ships, boats and floating structures.

SECTION XVIII

OPTICAL,PHOTOGRAPHIC,CINEMATOGRAPHIC, MEASURING, CHECKING, PRECISION, MEDICAL OR SURGICAL INSTRUMENTS AND APPARATUS; PARTS AND ACCESSORIES THEREOF Optical, photographic, cinematographic, measuring, checking, precision, medical of surgical instruments and apparatus; parts and accessories thereof. Clocks and watches and parts thereof. Musical instruments; parts and accessories of such articles.

SECTION XIX

ARMS AND AMMUNITION: PARTS AND ACCESSORIES THEREOF

SECTION XX

MISCELLANEOUS MANUFACTURED ARTICLES Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; Toys, games and sports requisites; parts and accessories thereof. Miscellaneous manufactured articles.

SECTION XXI

WORKS OF ART, COLLECTORS’ PIECES AND ANTIQUES --------------

HISTROY OF DEVELOPMENT OF NOMENCLATURE AND HARMONISED SYSTEM (HS)

HISTROY OF DEVELOPMENT OF NOMENCLATURE 1831 Belgium presented foreign trade statistics under three general headings: a) Raw materials b) Produces c) Manufactured articles.

HISTROY OF DEVELOPMENT OF NOMENCLATURE 1913 29 countries signed a convention at Brussels and approved uniform statistical nomenclature. It contained 186 items arranged in five groups i) Live animals ii) Food and beverages iii) Raw or simply prepared materials iv) Manufactured products. v) Gold and silver.

HISTROY OF DEVELOPMENT OF NOMENCLATURE 1931 A draft customs nomenclature known as “Geneva Nomenclature” was approved under the auspices of ”League of Nations” It comprised of a) 21 sections. b) 86 Chapters. c) 991 items

HISTROY OF DEVELOPMENT OF NOMENCLATURE 1959 Brussels tariff nomenclature “BTN” was introduced by the Customs Cooperation Council which was renamed as CCCN in 1974. It comprised of a) 21 Sections b) 96 Chapters ( 99 Chapters until 1987) c) 1241 headings (1011 heading until 1987).

HISTROY OF DEVELOPMENT OF HS 1970 The Council decided to setup study group to examine the possibility of preparing the harmonized commodity description and coding system capable of meeting Principal requirement of a) customs b) Statistics c) Carriers d). Producers

HISTROY OF DEVELOPMENT OF HS 1971 The Council approved the findings of the Study Group that Harmonized commodity and coding system should be based on a) CCCN b) SITC (Standard International Trade classification) A Harmonized System Committee was setup to prepare HS.

HISTROY OF DEVELOPMENT OF HS 1981 Preparatory work was completed by 60 countries and more than 20 International Organization took part in the preparation of HS. Among these includes a) UN Statistical Office. b) UN Conference on Trade and Development (UNCTAD) c) General Agreement on Tariff and Trade (GATT) d) International Organization for standardization (ISO) e) International Chamber of Commerce (ICC) f) International Chamber of Shipping (ICS) g) The International Air Transport Association (IATA) h) International Union of Railways (UIC)

HISTROY OF DEVELOPMENT OF HS HS was developed from CCCN and SITC and consulting many other nomenclatures like; a) Customs Tariff of Japan, USA, Canada . b) Nomenclature of goods for the External Trade Statistics of the European Community and statistics of Trade Member States (NIMEXE) c) Transport Nomenclatures e.g. i) Standard Transport Commodity Code (STCC) ii) International Union of Railways “ Standard Commodity Nomenclature” iii) International Air Transport Associations “ World Wide Air Cargo Commodity Classification” (WACCC)

HISTROY OF DEVELOPMENT OF HS 1983 Full revision of text of HS was completed . The Council approved the HSC’s draft International Convention on the Harmonized Commodity Description and Coding System and opened it for signatures. 1988 HS came into force . 1996, 2002, 2007, 2012, 2017 Revised versions of HS

HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM

HARMONIZED SYSTEM Harmonized System is based on six digits The First 2 digits indicate chapter Nos. e.g. chapter 17 Sugar and Sugar Confectionery chapter 31 Fertilizers The other 2 digits indicate placement in the chapter 4304.00 Artificial Fur 2509.00 Chalk

Four digits heading has been sub-divided into 5 digits [represented by a single dash (-) ] 08.06 Grapes, fresh or dried 0806.10 - Fresh 0806.20 - Dried 61.05 Men’s or boy’s shirts, knitted or crocheted 6105.10 - Of cotton 6105.20 - Of man-made fibres. 6105.90 - Of other textile fibres.

The 5 digits heading has been sub-divided into 6 digits [ represented by a double dash (- -) ] 70.09 Glass mirrors, whether or not framed, including rear-view mirrors. 7009.10 - Rear-view mirror for vehicles. - Other 7009.91 - - Unframed. 7009.92 - - Framed.

Six Digit Heading 08.07 Melons (including water-melons) and papaws (papayas), fresh. - Melons (including watermelons): 0807.11 - - Watermelons 0807.19 - - Other 0807.20 - Papaws (papayas)

HS AND PAKISTAN CUSTOMS TARIFF Pakistan adopted HS in 1988. Presently Pakistan Customs Tariff is based on 2012 version of HS HS contained six GIRs & Pakistan Customs Tariff contained two additional Pakistan Rules. In HS, Chapter 77, 98 and 99 are left blank. Pakistan Customs Tariff utilizes Chapter 98 for services “Federal Excise rates” and Chapter 99 for “Special Classification Provisions”. HS is six digit code whereas Pakistan Customs Tariff is an eight digits numerical nomenclature. HS contained 5224 tariff lines whereas Pakistan Customs Tariff contained further over 2000 seven and eight digit sub-heads.

Pakistan Customs Tariff Eight digit Tariff . Classification has to be determined up to the 8th digit level The first six digits are the same as in HS. The 7th & 8th digit represents national headings. The first two digits represents chapter no. e.g. 17 Sugar and sugar confectionery The 3rd and 4th digits represent position in the chapter. e.g. 0104 Live sheep and goat

Pakistan Customs Tariff If four digit heading is not further sub-divided, it will be represented as 8902.0000 Fishing Vessels; Factory Ships 8904.0000 Tugs and pusher craft 2716.0000 Electrical energy If four digit heading is further sub-divided, the change is made at 5th digit and represented by a single dash (-). 6702 Artificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit 6702.1000 - Of plastics 6702.9000 - Of other materials

Pakistan Customs Tariff Other furniture and parts thereof 9403.1000 - Metal furniture of a kind used in offices 9403.2000 - Other metal furniture 9403.3000 - Wooden furniture of a kind used in offices 9403.4000 - Wooden furniture of a kind used in kitchens 9403.5000 - Wooden furniture of a kind used in bed rooms 9403.6000 - Other wooden furniture 9403.7000 - Furniture of plastics 9403.8000 - Furniture of other materials including cane, osier, bamboo 9403.9000 - Parts

Pakistan Customs Tariff 0901 Coffee whether or not roasted or decaffeinated; coffee husks and skins; coffee substitute containing coffee in any proportion. - Coffee not roasted: 0901.1100 - - Not decaffeinated 0901.1200 - - Decaffeinated - Coffee roasted: 0901.2100 - - Not decaffeinated 0901.2200 - - Decaffeinated 0901.2900 - - Other

NATIONAL HEADINGS The national headings may be created at 7th or 8th digit level. No change can be made up to 6th digits of HS. They are required to be adopted as such. The 7th digit change is represented by three dashes ( - - - ). No number is mentioned against the single dash ( - ) or the double dash (- - ) heading being further sub-divided.

NATIONAL HEADINGS 63.04 Other furnishing articles excluding those of heading 94.04 - Bed Spreads 6304.1100 - - knitted or crocheted 6304.1900 - - other - Other - - Knitted or crocheted 6304.9110 - - - cushions 6304.9190 - - - other 6304.9200 - - not knitted or crocheted, of cotton. 6304.9300 - - not knitted or Crocheted, of synthetic fibers 6304.9900 - - not knitted or crocheted of other textile materials

NATIONAL HEADINGS 28.08 Nitric acid; sulphonitric acid. 0908 Nutmeg, mace and cardamoms. 0908.1000 - Nutmeg 0908.2000 - Mace - Cardamoms 0908.3010 - - - Large 0908.3020 - - - Small

8th DIGIT HEADING 7th digit three dash heading (- - -) heading may be further sub-divided into 8th digit four dash heading (- - - - ) heading No number is mentioned against the three dash (- - -) heading being sub-divided

8th DIGIT HEADING 27.10 Petroleum oils and oils obtained from bituminous, minerals, other than crude; preparations not else where specified or included - Light oils and preparations 2710.1110 - - - motor spirit 2710.1120 - - - aviation spirit 2710.1130 - - - spirit type jet fuel 2710.1140 - - - white spirit 2710.1150 - - - solvent oil 2710.1190 - - - other

8th DIGIT HEADING - - Other 2710.1911 - - -- Kerosene - - - Kerosene, including kerosene type jet fuel 2710.1911 - - -- Kerosene 2710.1912 - - - - jp.1 2710.1913 - - - - jp.4 2710.1919 - - - - other - - - Other medium oils and preparations 2710.1921 - - - - Light diesel oil 2710.1929 - - - - other - - - Gas oil 2710.1931 - - - - high speed diesel oil 2710.1939 - - - - other

8th DIGIT HEADING - - - Fuel oils: 2710.1941 - - - - Furnace oil 2710.1942 - - - - Petroleum top naphtha 2710.1949 - - - - other - - - Lubricating oil i.e. oil such as 2710.1951 - - - - In packing not exceeding 10 liters 2710.1952 - - - - In packing exceeding 10 liters 2710.1959 - - - - In bulk ( vessels, bouzers etc) - - - Other 2710.1991 - - - - Mineral oil which has 2710.1992 - - - - Mineral greases 2710.1993 - - - - Base oil for

8th DIGIT HEADING 2710.1994 - - - - Brake fluid 2710.1995 - - - - Liquid paraffin 2710.1996 - - - - White oil 2710.1997 - - - - Transformer oil 2710.1998 - - - - Spin finish oil 2710.1999 - - - - other - Waste oil 2710.9100 - - Containing poly chlorinate biphenyls (PCBs), poly chlorinated terphenyls (PTCs) or poly brominated biphenyls (PBBs) 2710.9900 - - other

Never arrive at classification directly at 8 digit heading (Four dash ----). The reply may be wrong. Always determine classification step by step

THANK YOU

(Standard International Trade Classification "For compiling international trade statistics on all merchandise entering international trade, and to promote international comparability of international trade statistics. The commodity groupings of SITC reflect (a) the materials used in production, (b) the processing stage, (c) market practices and uses of the products, (d) the importance of the commodities in terms of world trade, and (e) technological changes."