1. Case studies on Classification of goods in the Harmonized System
Section I-IV (Chapter )
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2. Objectives:
To be able to apply classification principles for articles of Section I to IV.
To be able to classify commodities described in Section I to IV correctly.
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3. Product Identification
Why is it necessary?
So that we classify correctly governed by the relevant Rules (GIRs)
Determine correct duty rate
Correct data on trade (trade statistics)
Be consistent, fair and uniform in the classification of goods
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4. Fried Rice Shrimp 11% Pork 10% Carrot 5% Onion 5% Egg 10% Rice 55%
Seasoning 4%
Not in airtight container
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5. Fried Rice Possible headings: 19.04- prepared cereals in grain form…?
other prepared meat….?
16.05-aquatic invertebrates prepared or
preserved?
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6. Note 2 chapter 16
Food preparation fall in this chapter if they contain 20% of sausage, meat, fish or other aquatic invertebrates or any combination there of
If the preparation contains two or more of the products, it is classified in the heading of chapter 16 corresponding to component or components which predominates by weight
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7. Cont. Note 2 to chapter 16 By application of note 2 to chapter 16,
combination of shrimp and pork is more
than 20% (11% +10% = 21%)
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8. answer By Application of Rule 1 , Note 2 Chap 16
The Article contains 21% by weight of shrimp and Pork.
Shrimp predominates by weight.
Heading 16.05
shrimps and pawns GIR 1&6
(according to packing material)
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9. meat pie
Pasta – 50%
beef - 25%
Seasoning- 25%
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10. Note 2 chapter 16
Contains more than 20% by weight of sausage, meat, meat offal, blood, fish or crustaceans...or other aquatic invertebrates.
However, the provisions do not apply to
stuffed products of heading or
the food preparations of heading 21.03
or 21.04
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11. answer Exclusion Note 2 to Chapter 16
Application of Note 1 (a) to Chap 19
GIR 1-Terms of the Heading
19.02
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12. Meat pie
Possible headings,
16.04
19.02
21.04
21.03
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13. Seasoning
Composition
Tomato ketchup 70%
Shrimp 25%
Other 5%
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14. Shrimp seasoning
Possible headings
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15. answer
GIR 1 Exclusion Note 2 Chapter 16 Note 1 (e) Chapter 21 Terms of Heading 21.03
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16. Instant coffee? Ingredients coffee essence 40% Sugar 30% Skim Milk 30%
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17. Instant coffee
Possible headings
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18. Instant coffee( cont.)
0901-Coffee, whether or not roasted or decaffeinated; ….. Note 1 (b) chap 9 directs us to chap. 21 Note 2 chap 21- extracts, essences and concentrates, of coffee, tea…. answer 21.01
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19. Roasted G.nuts
Roasted ground nuts
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20. Roasted ground nuts
Possible heading r 20.08
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21. Ground nuts....
Heading groundnuts, not roasted or otherwise cooked Heading preparation...of ...nut ...otherwise prepared....not elsewhere specified Answer (GIR 1) Terms of Heading
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22. Atlantic ocean salmons
Atlantic Ocean salmons, smoked and vacuum-packed
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23. Smoked atlantic salmon
Possible heading Or 03.05
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24. answer
Chapter 16, Note 1 excludes smoked fish from chapter 16 Heading state in part Fish, dried.....smoked fish.....fit for Human consumption…. Heading GIR 1 Terms of the heading (subheading by application of GIR6)
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25. Example: mineral water
Plastic bottles containing Mineral water
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26. Plastic bottle with mineral water
Which rule is approriate in classification of this item? GIR 1-6
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27. answer
GIR 5(b)
Packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods
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28. answer
The plastic bottle is of a kind that is normally sold together with the product. It is therefore classified together with the mineral water (22.01)
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29. conclusion
Correct identification of a product and correct classification is important for,
Determination of the correct duty rate
Reliable data on international trade
Trade facilitation ( smooth flow of trade)
Monitoring trade in restricted/controlled
Goods e.g explosives, narcotics etc
Consistent, fair and uniform classification of goods
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30. Thank You For Your Attention
The End
Thank You For Your Attention
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