1. GENERAL INTERPRETATIVE RULE (GIR)1

2. Objectives To be able to apply GIR1 while classifying goods
To be able to classify goods correctly using GIR1
To be able to use relative sections, chapters and heading notes by the application of GIR1

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

4. Introduction cont..d
They are designed to ensure that a given product is appropriately classified in one heading and subheading of the HS Nomenclature

5. Application of GIRs GIRs 1 to 5 apply at the heading level
2019/1/15
Application of GIRs
GIRs 1 to 5 apply at the heading level
GIRs 1 to 4 must apply in sequence or a hierarchical fashion
(GIR1 > GIR2 > GIR3(a) > GIR3(b) > GIR 3(c) > GIR 4)
GIR 5 applies individually
GIR 6 applies individually at the subheading level
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.

6. GIR 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, according to the following provisions

7. GIR 1 cont..d
1st -Titles are provided “for ease of reference only” means they are not legally binding in classification.
2nd -Terms of the headings and any relative sections or Chapter Notes, have legal force therefore shall be followed
3rd - Notes do not otherwise require …, i.e GIR 2 to 5 shall be considered only if the legal part is silent.

8. GIR 1 cont..d
Majority of the goods are classified by the application of GIR 1
For example;
heading 01.01live horses
GIR 2-5 can only be applied when Rule 1 has failed

9. GIR 1 cont…
GIR 1 is intended to emphasise that the terms of the headings and any relative Section or Chapter Notes are paramount
i.e they are firstly to be considered in classification process.
e.g. Notes in chapter 31 provide that certain headings relate only to particular goods.

10. GIR 1 (Examples on use of Terms of heading)
Many items can be classified directly by terms of heading
Example: A live goat is classified in heading

11. GIR 1 Use of Terms of Heading…
Title of Chapter 22 (for reference)
“Beverages, spirits and vinegar”
The text of heading 22.03
“Beer made from malt.” (terms of heading)

12. GIR 1 Use of Terms of Heading…
“Beer (made from malt)” :
Heading

13. GIR 1 Use of Terms of Heading…
The title of Chapter 85 reads :
“Electrical machinery and equipment and parts thereof;…” (ease of reference)
The text of heading reads :
“Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and …”(terms of heading)

14. GIR 1 Use of Terms of Heading…
Electric immersion heater (Heading 85.16)

15. GIR 1 Examples on use of notes
Chapter 1 covers all live animals except: (note 1 to chapter 1)
fish and crustaceans, molluscs and other aquatic invertebrates, of headings 03.01, and
Cultures of micro-organisms and other products of heading 30.02; and
Animals of heading

16. GIR 1 Examples on use of notes cont…
Where do we classify salted crab meat, unfit for human consumption?
Salted Crab meat

17. GIR 1 Examples on use of notes cont…
However, by virtue of Note 1(c) of chapter 3, the proper classification of the article “salted crab meat, unfit for human consumption” is under heading

18. GIR 1 Examples on use of notes cont…
Is “Distilled water” classified as “water” of Chapter 22?
No!!
“Note 1 (c) to Chapter 22”, and
“the text of heading 28.53”
Distilled water (heading 28.53)

19. GIR 1 Examples on use of notes cont…
Is “Sodium Nitrate” classified as “inorganic compound” of Chapter 28?
No!!
“Note 3 (c) to Chapter 28”, and
“Note 2 (a) to Chapter 31”
Sodium Nitrate (heading as fertilizer)

20. GIR 1 Examples on use of notes cont…
Wooden furniture :
Article of wood (Chapter 44)?

21. GIR 1 Examples on use of notes cont…
Note 1 (o) to Chapter 44
excludes Articles of Chapter 94 (for example, furniture, …)
Therefore, “Wooden furniture” is classified in Chapter 94 (heading “other furniture”).

22. Direct classification can be made
GIR 1 (Summary)
Direct classification can be made
Not only where the item is mentioned in the heading text
BUT
Also after consulting the Section and Chapter Notes
These Notes should be consulted for EVERY classification

23. GIR 1 EXERCISE
Classify the given items correctly.

24. END
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