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

2. 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

3. 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.

4. 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

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

6. 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)

7. SECTION 1

8. 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.

9. SECTION II

10. 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.

11. 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

12. SECTION III

13. 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.

14. SECTION IV

15. 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

16. SECTION IV

17. 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.

18. SECTION V

19. 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.

20. SECTION VI

21. 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.

22. 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.

23. SECTION VII

24. PLASTICS AND ARTICLES THEREOF; RUBBER AND ARTICLES THEREOF

25. SECTION VIII

26. 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.

27. SECTION IX

28. 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.

29. SECTION X

30. 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.

31. SECTION XI

32. 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.

33. 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.

34. SECTION XII

35. 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.

36. SECTION XIII

37. 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.

38. SECTION XIV

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

40. SECTION XV

41. 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.

42. SECTION XVI

43. 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.

44. SECTION XVII

45. 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.

46. SECTION XVIII

47. 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.

48. SECTION XIX

49. ARMS AND AMMUNITION: PARTS AND ACCESSORIES THEREOF

50. SECTION XX

51. 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.

53. SECTION XXI

54. WORKS OF ART, COLLECTORS’ PIECES AND ANTIQUES

55. HISTROY OF DEVELOPMENT OF NOMENCLATURE AND HARMONISED SYSTEM (HS)

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

57. HISTROY OF DEVELOPMENT OF NOMENCLATURE
1913
29 countries signed a convention at Brussels and approved uniform statistical nomenclature. It contained 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.

58. 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

59. 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) headings (1011 heading until 1987).

60. 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

61. 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.

62. 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)

63. 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)

64. 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

65. HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM

66. 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 Artificial Fur Chalk

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

68. 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 Rear-view mirror for vehicles. - Other Unframed Framed.

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

70. HS AND PAKISTAN CUSTOMS TARIFF
Pakistan adopted HS in 1988.
Presently Pakistan Customs Tariff is based on 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.

71. 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.
Sugar and sugar confectionery
The 3rd and 4th digits represent position in the chapter. e.g.
Live sheep and goat

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

73. Pakistan Customs Tariff
Other furniture and parts thereof
Metal furniture of a kind used in offices
Other metal furniture
Wooden furniture of a kind used in offices
Wooden furniture of a kind used in kitchens
Wooden furniture of a kind used in bed rooms
Other wooden furniture
Furniture of plastics
Furniture of other materials including cane, osier, bamboo
Parts

74. Pakistan Customs Tariff
Coffee whether or not roasted or decaffeinated; coffee husks and skins; coffee substitute containing coffee in any proportion.
Coffee not roasted:
Not decaffeinated
Decaffeinated
Coffee roasted:
Not decaffeinated
Decaffeinated
Other

75. 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.

76. NATIONAL HEADINGS
Other furnishing articles excluding those of heading 94.04
- Bed Spreads knitted or crocheted
other
Other
Knitted or crocheted cushions other
not knitted or crocheted, of cotton not knitted or Crocheted, of synthetic fibers
not knitted or crocheted of other textile
materials

77. NATIONAL HEADINGS 28.08 Nitric acid; sulphonitric acid.
Nutmeg, mace and cardamoms.
Nutmeg
Mace
- Cardamoms
Large
Small

78. 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

79. 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
motor spirit
aviation spirit
spirit type jet fuel
white spirit
solvent oil
other

80. 8th DIGIT HEADING - - Other 2710.1911 - - -- Kerosene
Kerosene, including kerosene type jet fuel
Kerosene
jp.1
jp.4
other
Other medium oils and preparations
Light diesel oil
other
Gas oil
high speed diesel oil
other

81. 8th DIGIT HEADING - - - Fuel oils: 2710.1941 - - - - Furnace oil
Petroleum top naphtha
other
Lubricating oil i.e. oil such as
In packing not exceeding 10 liters
In packing exceeding 10 liters
In bulk ( vessels, bouzers etc)
Other
Mineral oil which has
Mineral greases
Base oil for

82. 8th DIGIT HEADING 2710.1994 - - - - Brake fluid
Liquid paraffin
White oil
Transformer oil
Spin finish oil
other
- Waste oil
Containing poly chlorinate biphenyls (PCBs), poly chlorinated terphenyls (PTCs) or poly brominated biphenyls (PBBs)
other

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

84. THANK YOU

85. (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."