1. HS Classifications for Remanufactured Goods
Masaki　Okamoto
Customs and Tariff Bureau
Ministry of Finance, Japan
Kuala Lumpur, October 22, 2012

2. “HS (Harmonized System) classifications” is
1. 1 HS Classifications
“HS (Harmonized System) classifications” is
to classify trading goods in an internationalized nomenclature;
stipulated in
“International Convention on the harmonized Commodity Description and Coding System (HS Convention)”; and
drafted by the World Customs Organization (WCO).

3. 1. 2 HS Classifications Coding Structures
Section > Chapter > Heading > Sub-heading
(Broad) (Detailed)
e.g.)　Vacuum Cleaner
Section XVI: Machinery and mechanical appliances
Chapter 84: … machinery and mechanical appliances; …
Note: this chapter does not cover: … (e) vacuum cleaners
of heading 85.08; …
Chapter 85: Electrical machinery and equipment …
Heading 85.08: Vacuum cleaner
Sub-heading : of a power not exceeding 1,500 W and
having a dust bag or other receptacle …
Sub-heading : Other:
2,000W
“Notes” are prepared in almost all the Sections and Chapters in order to enhance interpretation of classifying goods.

4. 1. 3 HS Classifications
The systematic and uniform classifications of all goods among the international trade.
Hierarchical classification system;
Classifications of goods are done with a step by step methodology; and
The step are done based on the Rules for the Interpretation of the Customs Tariff Schedule (General Rules)

5. 1. 4 HS Classifications Necessity of applying HS classifications
To differentiate the tariff rate according to the nature or characteristics of the trading goods.
Universal language of the international trade
Contracting parties 145 (as of October 2012)
HS classifications are applied in more than 200 countries/regions.
HS classification are applied to more than 98% of world trade according to the WCO.

6. 2. 1 HS Classifications of goods by Characteristics
Goods classified by characteristics
Heading 87.02
Heading 87.03
Motor vehicles for the transport of ten or more persons, including the driver
Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), …

7. 2. 2 HS Classifications of goods by Purposes
Goods classified by purposes
Heading 87.05
Heading 87.09
Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example,…concrete-mixer lorries…)
Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods….

8. 2. 3 HS Classifications: Easy or Difficult?
Knowledge to apply an accurate classification to a trading good is necessary and important for all the stakeholders.
In case HS classification changes, different tariff rate may be applied on the good.
Understanding of HS classification are required for exporters and importers to make the right decision of HS classifications.
It also affects cost consideration of manufacturers.

9. 3. Classification of Remanufactured Goods
purposes
Characteristics ?
“end-of-life products (or cores) to their original performance specifications, with renewed lifetimes”
“as good as new”
“to develop progress to return core to new condition”
“same-as-new”
Used Cars

10. Thank you…