Master Trainers Program for Eastern Africa General Interpretative Rule (GIR)3

GENERAL INTERPRETATIVE RULE (GIR) 3 Lesson Objectives At the end of the course, participants will be able: To apply GIR3 in classifying commodities. To describe and give examples of goods that are classified by using GIR3.

GENERAL INTERPRETATIVE RULE (GIR) 3… Scope GIR 3 is the Rule providing three methods of classifying goods potentially falling in two or more headings, either under the terms of Rule 2(b) for any other reason This rule will apply when we have mixtures or combination of goods under GIR 2(b) or if goods appear initially to fall under two or more headings for any other reason. . It consists of three methods which are applied chronologically as follows:

GIR 3 con’t These methods operate in the order in which they are set out in General Interpretative Rule 3 This Rule can only take effect provided the terms of headings or Sections or Chapter Notes do not otherwise require

Rule 3 (a):Most specific heading Scope It is applied where goods are potentially classifiable in two or more headings ,the heading providing the most specific description must be applied

GIR 3(a) Con’t Ask the following before classification: Is the article described by name? Is the article clearly described? Can the article precisely be identified?

GIR 3 (a) Specific Description The heading which provides the most specific description of the goods is to be preferred Example In which heading would you classify an electric shaver with a self-contained electric motor? - Possible classification: heading 84.67, heading 85.09 and heading 85.10,

GIR 3 (a) Specific Description… Heading 84.67 tools for working in the hand, pneumatic, hydraulic or with self contained electric motor Heading 85.09 electro mechanical domestic appliances with self contained electric motor Heading 85.10 shavers, hair clippers, and hair removing appliances, with self contained electric motor NB: A description by name is always more specific than a description by class.

GIR 3 (a) Specific Description… This item is therefore classified under heading 85.10

Limits of GIR 3 (a) Where two or more headings each refer to : (a) Part only of the materials or substances contained in mixed goods  (b) Parts only of items presented in a set put up for retail sale  The headings are to be regarded as equally specific and Rule 3(a) cannot be applied

. GIR3(b) Essential Character Scope This Rule applies only in four possible situations Mixtures. Composite goods consisting of different materials. Composite goods consisting of different components. Goods put up in sets for retail sale 16/05/2019 w

GIR 3 (b) con’t Classifiable principle Classification is determined by the material or component which gives the goods their essential character The essential character varies according to the type of goods As a general rule, the components are put up in a common packing.

GIR 3(b) con’t Essential character may be determined by: the nature of the material , the bulk, quantity , weight or value the role of a constituent material in relation to the use of the goods

GIR 3(b) con’t The concept of essential character may be subjective and should be applied with some caution This Rule can only take effect provided the terms of headings or Sections or Chapters Notes do not otherwise require

GIR 3(b) Composite goods For GIR 3(b) to apply as Composite goods, (a)Composite goods made up of different components (b)Shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components,

GIR 3(b) Composite goods con’t For GIR 3(b) to apply as Composite goods, (c)Provided these components are adopted one to other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.

GIR 3(b) con’t For goods put up in sets for retail sale, it is necessary that the following are fulfilled: Consist of at least two different articles Consist of products or articles put up together to meet a particular need or carry out a specific activity Are put up in a manner suitable for sale directly to users without repacking.

GIR 3(b) con’t Question: Classify the following sets Hairdressing sets consisting of a pair clippers(85.10),a comb (96.15),a pair of scissors(82.13),a brush (96.03) and a towel of textile material(63.02),put up in a leather case(42.02) Answer: Heading 85.10

GIR 3 (b) Essential Character… Example. How to classify a set intended to be used together in the preparation of a spaghetti meal, consisting of a packet of uncooked spaghetti a sachet of grated cheese and a small tin of tomato sauce, put up in a carton: Possible headings: 19.02 pasta … spaghetti…..whether or not prepared 04.06 cheese and curds 21.03 sauces and preparations thereof …. Classified in heading 19.02 - Essential character

Rule 3 (c):heading occurs last in numerical order Scope Enables goods to be classified in the HS Nomenclature when Rules 3 (a) and (b) cannot be applied

Classification principle Goods are classified in the heading which occurs last in numerical order among those which equally merit consideration in determining their classification This provision is in accordance with the logical structure of the HS

GIR 3 (c) Last in Numerical Order When goods cannot be classified by reference to Rule 3 (a) or 3 (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration in determining their classification.