GIR 2

Objectives To be able to classify goods using GIR 2. To be able to use relative sections, chapters and heading notes by the application of GIR 2.

Introduction Classification of goods is governed by a set of six General Interpretative Rules(GIRs) These Rules guide the HS users on how to classify goods in appropriate headings (subheadings) of the HS Nomenclature.

Introduction cont..d The GIRs are applied sequentially; 2019/4/18 Introduction cont..d The GIRs are applied sequentially; GIRs 1 to 5 apply at the heading level GIRs 1 to 4 must apply in sequence or a hierarchical order GIR 5 applies individually GIR 6 applies individually at the subheading level (GIR1 > GIR2 > GIR3(a) > GIR3(b) > GIR 3(c) > GIR 4) To be completely sound, a classification system must associate each individual product with a single heading (and, as the case may be, subheading). In the HS, there are six rules, known as General Rules for interpretation or GIRs. GIRs are designed to ensure that a given product is always classified in one and the same heading (and subheading), to the exclusion of any other heading which might appear to merit consideration. All classification must be based upon the application of these rules. Rules 1 to 5 apply at the heading level. However, Rules 1 to 4 must be applied in sequence or a hierarchical fashion. Rule 1 takes priority over Rules 2 to 4. Rule 3(a) takes priority over Rules 3(b) and 3(c). Rule 2 over 3…. Rule 5 applies individually. Rule 6 applies individually at the subheading level.

GIR 2 This rule can only be used after GIR 1 has failed to guide classification of the given article. 18/04/2019

GIR 2 cont..d GIR 2 has two parts, 2(a) and 2(b) 2(a)(i) deals with incomplete or unfinished articles (ii) deals with unassembled or disassembled articles 2(b) Mixtures and combinations 18/04/2019

Rule 2a Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled. 18/04/2019

GIR 2 (a) (i) Incomplete as complete Incomplete or unfinished article is still classified as if it were complete or finished, if it has the essential character of the complete or finished article. 18/04/2019

Example complete incomplete 18/04/2019

incomplete Complete A complete bicycle as presented is classified under heading 87.12 A bicycle without the handle is classified under 87.12 as it has the essential character of the complete bicycle 18/04/2019

unfinished can be finished 18/04/2019

Unfinished classified as finished The dress is cut to size but not stitched at the sides. It has the essential character of a finished. It needs only stitching. Complete dress 18/04/2019

Blanks Blanks are classified as a finished article when presented with an approximate shape or outline of a finished article. 18/04/2019

Blank keys Classified as finished keys as they have the essential character of finished keys as per Rule 2(a) 18/04/2019

GIR 2(a) (ii) Unassembled, dissembled Goods are presented unassembled or disassembled normally for convenience of packing, handling or transport Assembly of such goods involves fixing the components with screws, nuts, bolts, rivets or welding. 18/04/2019

GIR 2a (ii) continued. Any excess materials or components are classified separately. The rule also applies to unfinished or incomplete articles presented unassembled or disassembled but treated as finished or complete by virtue of the 1st part. 18/04/2019

GIR 2a (ii) continued. Cases covered by this rule are cited in the General Explanatory Notes to Sections or Chapters (e.g. Section XVI and Chapter 44, 86,87 and 89) 18/04/2019

Examples unassembled disassembled 18/04/2019

Exceptions to the rule This part of the rule does not apply to Sections I to Section VI Example- title of Section 1 Live animals and animal products Animals cannot be presented Unfinished of incomplete 18/04/2019

GIR 2 (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3. 18/04/2019

GIR 2(b) cont..d This rule is not for classification of material or substance referred in the heading to include mixtures or combinations of that material or substances with other material or substances. 18/04/2019

Explanation of Rule 2(b) It is just an introduction to Rule 3 where such mixtures and combinations are classified. 18/04/2019

END THANK YOU God bless you.