The Structure of the Harmonized System (HS) 4/14/2019

Objectives To identify the structure of the Harmonized System To outline the principles used in the arrangement of the HS 4/14/2019

Introduction The HS comprises; Sections Chapters Headings Subheadings General Rules for the interpretation of the system(GIRs) Legal notes 4/14/2019

Structure of the HS Cont… 21 Sections – broad range of goods 96 Chapters –In use- narrow range of goods Chapter 77 reserved for future use 98 & 99 reserved for National use 1244 Headings- more specific 5212 Subheadings (HS code) identified by a 6-digit code, very narrow range/very specific

Structure of the HS 21 Sections 96 Chapters(2 digit) 1224 Headings(4 digits) 5212 Subheadings(6digits) 4/14/2019

Principles of the arrangement of Sections Based on material content e.g. vegetable products in Section II, Textiles and textile articles Section XI Based on usage or function e.g. Vehicles, Aircrafts, vessels Section XVII 4/14/2019

Principles cont..d Stage of processing Live Cattle Hides Shoes Sect.I Sect.VIII Sect.XII 4/14/2019

Numbering of Sections and Chapters Sections are numbered in Roman numerals for example I,II,III up to XXI Chapters are numbered in Arabic numerals for example 01,02, 10,15 up to 97 The first two digits indicate a Chapter Number for example 01 for Chapter 1 . 4/14/2019

Principles of the arrangement of Chapters The same principles used in the arrangement of the Sections also apply to the arrangement of Chapters 4/14/2019

Principles of the arrangement of Chapters Materials content Example; Rubber –Chapter 40 Wood - Chapter 44 Cotton- Chapter 52 4/14/2019

Arrangement of Chapters cont... Usage or function Pharmaceutical- Chapter 30 Motor Vehicles- Chapter 87 Arms and Ammunition- Chapter 93 4/14/2019

Principles cont..d Stage of processing or manufacture Paper Pulp Chapter 47 Paper- Chapter 48 Books- Chapter 49 4/14/2019

Structure Cont..d Number of Chapters in a Section A Section may contain one or more Chapters e.g. Section I has 5 Chapters Section III has only Chapter 15 4/14/2019

Structure cont..d Number of Headings in a Chapter The number of headings may also vary from Chapter to Chapter e.g. Chapter 13 has 2 headings Chapter 84 has 87 headings 4/14/2019

Structure cont..d Division of Chapters into sub-Chapters A Chapter may be subdivided into sub- Chapters to identify certain classes of goods within the Chapter. This shows a level of processing or a combination thereof . 4/14/2019

Division of Chapters Example; Chapter 71 is divided into 3 Sub-Chapters; Sub Chapter I Sub Chapter II Sub Chapter III 4/14/2019

Structure Cont..d Headings Provide a more specific grouping of goods and approximate description Consist of a four digit number(01.04) Describes the commodity (terms of the heading) 4/14/2019

Structure Cont..d Sub-Headings A heading may be further subdivided into subheadings, where deemed appropriate, individualizing narrower categories of commodities. In the case that a heading is not further subdivided , two zeros are added to the four digits code number. 4/14/2019

Arrangement of Headings Stage of processing within a Chapter Example Chapter 79; 79.01,79.02 Raw material 79.03, 79.04,79.05 Semi finished and finished 79.07 Finished articles e.g. Zinc tubes 4/14/2019

Structure Cont..d The Six digit only apply at International level Regional tariff( EAC-CET) has 8 digits and may be division into 3 groups: Heading Subheading Regional subdivision 4/14/2019

Structure Cont..d For Example ; 84.44 Heading 8444.00 Subheading (International level HS code) 8444.00.00 Regional subheading or Tariff number. 4/14/2019

Structure Cont..d GIRs There are 6 General Interpretative Rules(GIRs) which govern classification of goods Legal Notes Sections and Chapters have "Notes" which provide mandatory instructions for classifying Goods and subheading Notes which guide classification within subheadings 4/14/2019

Conclusion Hierarchical structure of the HS Sections/Chapters/Heading/subheading/and GIRs/Notes Principles used in the arrangement of the nomenclature 4/14/2019

The end THANK YOU 4/14/2019