CASE STUDIES General interpretative Rule 1

Objectives At the end of this lesson, participants will be able to: Classify articles correctly using Rule 1 of the GIRs.

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”

Rule 1 cont..... 80% of goods traded intenationally are classified by application of Rule 1 Articles are classified by their most specific names (terms of the heading), after consulting the relative section Notes, chapter Notes.

Rule 1 cont.... The first step on classification is to identify the article by asking the following questions. What is it? What is it made of ? What is its function? What is its degree of processing? Classify the article after consulting the relevant section and the chapter Notes.

Rule 1 cont.... Remember the process of classification:- Identify the possible Section Read the Section Notes Identify the possible Chapter Read the Chapter Notes Read the terms of the heading Identify the most appropriate tariff code

Case study 1 In which heading (4-digit) would you classify a live Sheep ?

Case studies... The article presented is a live animal It is a live sheep Live animals and animal products are under Section I

Case study 1 cont.…. The terms of the Heading 01.04 reads “Live Sheep and Goats” Live Sheep is classified in heading 01.04 by application of GIR 1.

Case Study 2 In which heading (4-digit) would you classify a live bear that is part of a traveling circus? .

Case study 2 cont..... The article presented is a live animal It is a live bear Live animals and animal products are described under Section I It is part of travelling menageries (for amusement / entertainment purposes).

Case study 2 cont..... Possible headings 01.06 Other live Animals 95.08 Roundabouts, …; traveling circuses and traveling menageries;…”.

Case study 2 cont.. However Note 1 (c ) Chapter 1 states “ This chapter covers all live animals except animals of heading 95.08” Therefore, a Bear that is part of the travelling circus is classified in heading 95.08 by application of GIR 1

Case study 3 In which heading (4-digit) would you classify Crabs, in shell, cooked by boiling in water, fit for human consumption ?

Case study cont.... The presented article is cooked food. Possible headings 03.06 Crustaceans,.....cooked by steaming ....consumption. 16.05 prepared foodstuff However, Note 1 to Chapter 16 excludes ...fish, crustaceans, molluscs or other aquatic invertebrates, prepared or preserved by the process specified in chapter 3

Case study cont.... Terms of heading 03.06 state ; crustaceans, in shell, cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine.

Case study 3 cont.. The process is not beyond what is stated in the terms of heading 03.06. Therefore, the article remains classified in heading 03.06 by application of GIR 1

Case study 4 In which heading (4-digit) would you classify frozen Sweet corn ?

Case study cont..... Sweet corn is a cereal described in Section II, Chapter 10 However, note 2 to Chapter 10 excluded sweet corn from Chapter 10 to Chapter 7

Case study 4 cont.. The terms of heading 07.10 reads “Vegetables (uncooked or cooked by steaming or boiling in water), frozen:”. Frozen sweet corn is classified in heading 07.10 by application of GIR 1

Case study 5 In which heading (4-digit) would you classify Soya beans(not roasted) ?

Case study 5 cont.... Section II covers all vegetable products. Soya bean is in the class of oil seeds and oleaginous fruits of Chapter 12. The terms of heading 12.01 reads “Soya beans, whether or not broken”. The article is classified in heading 12.01 by application of GIR 1

Case study 6 In which heading (4-digit) would you classify Sugar cane?

Case study 6 cont.. Sugar cane is a vegetable product of section II It is of a type of straw and folder described in Chapter 12 Heading 12.12 states in part “…sugar cane…” in the terms of heading. The article is classified in heading 12.12 by application of GIR 1

Case study 7 In which subheading (6-digit) would you classify instant coffee (café au lait) packed for retail sale containing Sugar 70%, non dairy cream 10% and instant coffee 20 %. It is prepared by dropping it to the cup, pour hot or cold water and mix The one package of instant coffee is used to prepare 1 cup of coffee.

Case study 7

Case study 7 cont… The article is a product of plant extract (Section II). Coffee is described in Chapter 9 Explanatory exclusion note to 09.01 exclude and elaborate what instant coffee is. However; extracts of plant materials are classified in chapter 13. Note 1 (c) to Chapter 13 excludes extracts of coffee to chapter 21

Case study 7 cont… Heading 21.01 read “Extracts, essences and concentrates, coffee…thereof.” lnstant coffee ( café au lait ) is classified in subheading 2101.12 by application of GIR 1

Case study 8 Classify a Woven cotton handkerchief of size 65 cm × 60 cm (4-digit)

Case study 8 cont.. Textile and textile materials are described in Section XI Possible headings 62.13 Handkerchiefs 62.14 Shawls, scarves,….veils and the like

Case study cont.... Note 7 to Chapter 62 state in part “ scarves,…., handkerchiefs which any side exceeds 60cm are to be classified in heading 62.14” The article is classified in heading 62.14 by application of GIR 1

END thank you .