what is Hs classification?

The Harmonized System (HS) Classification, also called the HS Nomenclature, is the World Customs Organization's Harmonized Commodity Description and Coding System. It is an international customs classification system which allocates a unique 6-digit HS code to each group of products. The nomenclature consists of 21sections Spanning 99 chapter. More than 200 countries have developed their own local version of tariff books based on WCO HS nomenclature.

The 6 General Interpretation Rules (GIR) Of Harmonized System import tariff

Rule 1   Classification is determined first by wording or text of headings or any relevant legal notes

Rule (2a)  Heading can include incomplete, unfinished, unassembled or disassembled goods

Rule (2b)  Heading can include mixtures or combinations of goods

Rule 3   Sequential method-when an article can be classified under two or more headings

Rule (3a)  most specific description

Rule (3b)  essential character

Rule (3c)  last in numerical order

Rule 4   most akin (similar goods)

Rule (5a)  special containers

Rule (5b)  packing materials and containers

Rule 6   classification of goods at the subheading level

Topic: 

Classification of goods in this Schedule shall be governed by the following principles: 

Example 2: bicycle can be classified using GRI Rule 1.

GIR Rule 2, points (a) and (b)

2(a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential Abbreviations For character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.

Example: import unfinished (Motorcar without tires) is still classified as a motorcar can be classified using GRI Rule 2a.

2(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. 

Example1 : import Milk  80% Mixtures vitamin 20% classified as a Milk can be classified using (GRI Rule 2b.)

Example2: import gold Gold 80% Mixtures Other metal 20% classified as a Gold can be classified using (GRI Rule 2b.)

GIR Rule 3, points (a), (b) and (c)

3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: .  

3(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. 

Example 1 : import tv Electronic(85) is general television(28) is most specific classified as a television can be classified using GRI Rule 3a.

Example 2 : import hair clipper Electronic(85) is general hair clipper(10) is most specific heading classified as a hair clipper can be classified using GRI Rule 3a.

3 (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. 

Example 1 : import (pencil+ eraser) Pencil(96) with Fitted Eraser Rubber(40) is essential character pencil can be classified using GRI Rule 3b.

Example 2: import (Stuffed pasta packing tomato saucee) pasta(19) with tomato sauce(21) is essential character pasta can be classified using GRI Rule 3b.

Example2 : import Stationary item(notebook +pen ) Notebook 4802 & pen 9608 classified last numerical order(9608) as a Ball point  can be classified using GRI Rule 3c.

GIR Rule 4

4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin(similar). 

GIR Rule 5, points (a) and (b)

5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein: 

5 (a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character; 

Example: import guitar Guitar(92) packing by  Bag(63) so consider Guitar  9207 can be classified using (GRI Rule 5a.)

Example 2 : Does not apply repetitive use ( Gas cylinder,..)

GIR Rule 6

6. For legal purposes, the classification of goods in the sub-headings of a heading shall be determined according to the terms of those sub headings and any related sub headings Notes and, mutatis mutandis,(used when comparing two or more cases or situations) making necessary alterations while not affecting the main point at issue to the above rules, on the understanding that only sub headings at the same level are comparable. For the purposes of this rule the relative Section and Chapter Notes also apply, unless the context otherwise requires.