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HS Classification

*HS classification can be easier with ImageSearch on world customs ruling database
The method is described in "ImageSearch for HS classification"

The Fundamentals of HS classification

2020-08-31 By Taichi Kawazoe

What is the Harmonized System(HS)?

The Harmonized System (HS) is an internationally standardized system of names (description) and numbers (codes) for classifying traded goods.

The HS is a product nomenclature where each product is assigned its corresponding “6-digit”
code.

It was developed and presently maintained by the World Customs Organization (WCO)
(formerly known as the Customs Cooperation Council (CCC)) headquartered in Brussels, Belgium.

The HS nomenclature is annexed to the International Convention on the Harmonized Commodity Description and Coding System.

It was developed to facilitate international trade by establishing a uniform system for
the collection, comparison and analysis of international trade statistics.

It was established in 1983 and entered into force in 1988.

Under this Convention, contracting parties are obligated to base their tariff schedules
on the HS nomenclature, although parties set their own rates of duty.

Countries that have adopted the Harmonized System are not permitted to alter in any way the descriptions associated to a heading or a subheading nor can the numerical codes at the four or six digit levels be altered.

This is what keeps the Harmonized System harmonized.

Individual countries may extend a Harmonized System code to eight or ten digits for customs
purposes.

More than 200 countries, customs and economic unions, representing more than 98% of world trade use the HS.

Primary uses of the Harmonized System

  • Determination of customs tariffs (import duty)
  • Collection of international trade statistics
  • Rules of origin
  • Ascertain eligibility of a product under a Free Trade Agreement
  • Compliance with customs requirements
  • Collection of government revenue
  • Trade negotiations (e.g. the WTO schedule of tariff concessions)
  • Monitoring prohibited and restricted goods

Composition of the Harmonized System

Source: WCO

Here is an example of the structure of the harmonized system in Section 10(X)

Sections

– The HS is primarily divided into 21 Sections

Example

  • Section I: Live Animals; Animal Products
  • Section VII: Plastics and Articles Thereof Rubber and Articles Thereof
  • Section XV: Base Metals and Articles of Base Metal
  • Section XVII: Vehicles, Aircraft, Vessels and Associated Transport Equipment

*The titles of Sections, Chapters and Subchapters are not legally binding
– They are for ease of reference only
– They are “pointers” or “labels” used to divide up the nomenclature.
– Help in directing you to areas of the nomenclature.
– They should not be quoted to support classification.

Example: Section XV is entitled “base metal and articles of base metal”
-However, many articles of base metal are classified in other Sections.

Chapters

– Sections are divided into Chapters
– There are 99 Chapters under the HS
– However, Chapter 77 is reserved for future use, while Chapters 98 & 99 are reserved for special uses by contracting parties to the HS Convention

Source: PHILIPPINE TARIFF COMMISSION

• Goods under chapters 1 to 83 are generally classified according to
material of manufacture.
• Goods under chapter 84 to 96 are generally classified according to
function

Headings

– Chapters are divided into headings
– Headings are assigned with four-digit codes

Source: PHILIPPINE TARIFF COMMISSION

Subheadings

– Headings are further divided into subheadings
– HS subheadings are assigned with six-digit codes

 

For example, the HS code for Milled rice is 1006.30

Source: Trade Development Authority of Pakistan

 

The full HS code for Milled rice is

1006.30.xxxx

 

■The first two digits 10
The first two digits are referred to as the Chapter to which the product belongs.
Here rice comes under chapter 10, which is ‘Cereals’.

■The first four digits 1006
The first four digits are referred to as the Heading.
Here rice comes under Heading 1006, which is ‘Rice’.

■The first six digits 1006.30
The first six digits are referred to as the SubHeading.
Here rice comes under SubHeading 1006.30, which is ‘Semi-milled or wholly milled rice, whether or not polished or glazed:’.

■The entire digits 1006.30.10xx
The final 4 digits shown here in Green 1006.30.xxxx are country-specific and are assigned by individual countries.
Custom duties are assigned on entire codes, so without these last Green part digits determining the custom duty applicable on your products would not be possible.

How to classify HS code

In order to determine the HS code, we need to get a full and accurate description.
Here are basic questions to ask in determining the identity of items:

• Where is it used? (LOCATION)
• What material or substance is it made of? (MATERIAL)
• What is its function or use? (FUNCTION)
• In what form/spec is it imported? (SPECIFICATION)
• Is this the only possible classification?

Example: Classify “HOOD ASSY”

– Location: Car Body
– Material: Metal
– Function: Car Hood

Therefore it belongs to…
• Section XVII
• Chapter 87
• Heading 8708
• Subheading 870829

Apply the Sections, Chapter and Subchapter Notes

A commodity can be classified either by:
– Terms of the Heading
– Notes to the Sections, Chapters or Subheadings
– The General Interpretative Rules (GRI)

The Legal Notes which appear in front of most Sections and Chapters are known as Section Notes and Chapter Notes which has a legal force to determine HS code.

 

Source: PHILIPPINE TARIFF COMMISSION

The Legal Notes for each Section and Chapter provide:
– Exclusions
– Definitions
– Classification Provisions
– Limitations of Scope

Example of Exclusions

Note 1 Chapter 87 

• This chapter does not cover railway or tramway rolling-stock designed solely
for running on rails.

• Heading 8712 includes all children’s bicycles. Other children’s cycles fall in
heading 9503.

Another example:

Source: PHILIPPINE TARIFF COMMISSION

Example of Definitions

Note 2 Chapter 87

– For the purposes of this chapter, “tractors” means vehicles constructed essentially for hauling or pushing another vehicle, appliance or load, whether or not they contain subsidiary provision for the transport, in connection with the main use of the tractor, of tools, seeds,fertilizers or other goods.

– Machines and working tools designed for fitting to tractors of heading 8701 as interchangeable equipment remain classified in their respective headings even if presented with the tractor, and whether or not mounted on it.

Another example:

Source: PHILIPPINE TARIFF COMMISSION

Example of Classification Provisions

– These notes establish the classification of certain goods.
– Example: Note 4 to section XVII establishes the classification of “amphibious motor vehicles”

Note 4 to Section XVII
For the purposes of this section: (b) Amphibious motor vehicles are classified under the appropriate heading of chapter 87;

Another example:

Source: PHILIPPINE TARIFF COMMISSION

For example, Notes 2, 3 and 4 to Chapter 31 together provide an exhaustive list the products that fall to be classified as fertilisers in headings 31.02, 31.03 and 31.04. In comparison, Note 3 to Chapter 86 specifies some of the railway and tramway track fixtures and fittings covered by heading 86.08.

Example of Limitations of Scope

– These notes limit the scope of goods to be classified in the section.
– Example: Note 2 to section XVII (which limits the scope of the expressions “Parts” and “Parts and accessories”).

Note 2 to section XVII
The expressions “parts” and “parts and accessories” do not apply to the following articles, whether or not they are identifiable as for the goods of this section:

Another example:


Source: PHILIPPINE TARIFF COMMISSION

Entire Structure of the HS

 

Ch.1 Live animals. Sec I notes  \  HS, Chapter note
Ch.2 Meat and edible meat offal. Sec I notes  \  HS, Chapter note
Ch.3 Fish and  other aquatic invertebrates. Sec I notes  \  HS, Chapter note
Ch.4  birds’ eggs; natural honey; edible products of animal Sec I notes  \  HS, Chapter note
 
Ch.5 Products of animal origin, not elsewhere specified Sec I notes  \  HS, Chapter note
Ch.6 Live trees and other plants Sec II notes \  HS, Chapter note
Ch.7 vegetables and certain roots and tubers. Sec II notes \  HS, Chapter note
Ch.8 fruit and nuts; peel of citrus fruit or melons. Sec II notes \  HS, Chapter note
 
Ch.9 Coffee, tea, maté and spices. Sec II notes \  HS, Chapter note
Ch.10 Cereals. Sec II notes \  HS, Chapter note
Ch.11 Products of the milling industry; malt; starches Sec II notes \  HS, Chapter note
Ch.12 Oil seeds and oleaginous fruits; miscellaneous grains Sec II notes \  HS, Chapter note
Ch.13 Lac; gums, resins and other vegetable saps and extracts. Sec II notes \  HS, Chapter note
Ch.14 Vegetable products not elsewhere specified Sec II notes \  HS, Chapter note
Ch.15 Animal or vegetable fats and oils and other products Sec III  \  HS, Chapter note
Ch.16 Preparations of meat, of fish or of crustaceans Sec IV notes \  HS, Chapter note
Ch.17 Sugars and sugar confectionery. Sec IV notes \  HS, Chapter note
Ch.18 Cocoa and cocoa preparations. Sec IV notes \  HS, Chapter note
Ch.19 Preparations of cereals, flour, starch or milk Sec IV notes \  HS, Chapter note
Ch.20 Preparations of vegetables, fruit, nuts or other plants. Sec IV notes \  HS, Chapter note
Ch.21 Miscellaneous edible preparations. Sec IV notes \  HS, Chapter note
Ch.22 Beverages, spirits and vinegar. Sec IV notes \  HS, Chapter note
Ch.23 Residues and waste from the food industries Sec IV notes \  HS, Chapter note
Ch.24 Tobacco and manufactured tobacco substitutes Sec IV notes \  HS, Chapter note
Ch.25 Salt; sulphur; earths and stone; plastering materials Sec V \  HS, Chapter note
Ch.26 Ores, slag and ash Sec V \  HS, Chapter note
Ch.27 Mineral fuels, mineral oils Sec V \  HS, Chapter note
Ch.28 Inorganic chemicals Sec VI notes \  HS, Chapter note
Ch.29 Organic chemicals Sec VI notes \  HS, Chapter note
Ch.30 Pharmaceutical products Sec VI notes \  HS, Chapter note
Ch.31 Fertilisers Sec VI notes \  HS, Chapter note
Ch.32 Tanning or dyeing extracts Sec VI notes \  HS, Chapter note
Ch.33 Essential oils and resinoids Sec VI notes \  HS, Chapter note
Ch.34 Soap, organic surface-active agents Sec VI notes \  HS, Chapter note
Ch.35 Albuminoidal substances; modified starches; glues Sec VI notes \  HS, Chapter note
Ch.36 Explosives; pyrotechnic products Sec VI notes \  HS, Chapter note
Ch.37 Photographic or cinematographic goods Sec VI notes \  HS, Chapter note
Ch.38 Miscellaneous chemical products Sec VI notes \  HS, Chapter note
Ch.39 Plastics and articles thereof Sec VII notes \  HS, Chapter note
Ch.40 Rubber and articles thereof Sec VII notes \  HS, Chapter note
Ch.41 Raw hides and skins Sec VIII \  HS, Chapter note
Ch.42 Articles of leather;bags Sec VIII \  HS, Chapter note
Ch.43 Furskins and artificial fur Sec VIII \  HS, Chapter note
Ch.44 Wood and articles of wood Sec IX \  HS, Chapter note
Ch.45 Cork and articles of cork Sec IX \  HS, Chapter note
Ch.46 anufactures of straw, of esparto or of other plaiting materials Sec IX \  HS, Chapter note
Ch.47 Pulp of wood or of other fibrous cellulosic material Sec X \  HS, Chapter note
Ch.48 Paper and paperboard; articles of paper pulp Sec X \  HS, Chapter note
Ch.49 Printed books, newspapers, pictures and other products Sec X \  HS, Chapter note
Ch.50 Silk Sec XI notes \  HS, Chapter note
Ch.51 Wool, fine or coarse animal hair Sec XI notes \  HS, Chapter note
Ch.52 Cotton Sec XI notes \  HS, Chapter note
Ch.53 Other vegetable textile fibres Sec XI notes \  HS, Chapter note
Ch.54 Man-made filaments Sec XI notes \  HS, Chapter note
Ch.55 Man-made staple fibres Sec XI notes \  HS, Chapter note
Ch.56 Wadding, felt and nonwovens; special yarns Sec XI notes \  HS, Chapter note
Ch.57 Carpets and other textile floor coverings Sec XI notes \  HS, Chapter note
Ch.58 Special woven fabrics; tufted textile fabrics Sec XI notes \  HS, Chapter note
Ch.59 Impregnated, coated, covered or laminated textile fabrics Sec XI notes \  HS, Chapter note
Ch.60 Knitted or crocheted fabrics Sec XI notes \  HS, Chapter note
Ch.61 Articles of apparel , knitted Sec XI notes \  HS, Chapter note
Ch.62 Articles of apparel , not knitted Sec XI notes \  HS, Chapter note
Ch.63 Other made up textile articles Sec XI notes \  HS, Chapter note
Ch.64 Footwear, gaiters and the like Sec XII \  HS, Chapter note
Ch.65 Headgear and parts thereof Sec XII \  HS, Chapter note
Ch.66 Umbrellas, walking-sticks Sec XII \  HS, Chapter note
Ch.67 articles made of feathers ;artificial flowers Sec XII \  HS, Chapter note
Ch.68 Articles of stone, plaster, cement Sec XIII \  HS, Chapter note
Ch.69 Ceramic products Sec XIII \  HS, Chapter note
Ch.70 Glass and glassware Sec XIII \  HS, Chapter note
Ch.71 precious or semi-precious stones Sec XIV \  HS, Chapter note
Ch.72 Iron and steel Sec XV notes \  HS, Chapter note
 
Ch.73 Articles of iron or steel Sec XV notes \  HS, Chapter note
Ch.74 Copper and articles thereof Sec XV notes \  HS, Chapter note
Ch.75 Nickel and articles thereof Sec XV notes \  HS, Chapter note
Ch.76 Aluminium and articles thereof Sec XV notes \  HS, Chapter note
Ch.78 Lead and articles thereof Sec XV notes \  HS, Chapter note
Ch.79 Zinc and articles thereof Sec XV notes \  HS, Chapter note
Ch.80 Tin and articles thereof Sec XV notes \  HS, Chapter note
Ch.81 Other base metals; articles thereof Sec XV notes \  HS, Chapter note
Ch.82 cutlery, spoons and forks of base metal Sec XV notes \  HS, Chapter note
Ch.83 Miscellaneous articles of base metal Sec XV notes \  HS, Chapter note
Ch.84 machinery and mechanical appliances Sec XVI notes \  HS, Chapter note
Ch.85 Electrical machinery and equipment Sec XVI notes \  HS, Chapter note
Ch.86 Railway or tramway locomotives Sec XVII notes \  HS, Chapter note
Ch.87 Vehicles and parts Sec XVII notes \  HS, Chapter note
   
Ch.88 Aircraft, spacecraft, and parts thereof Sec XVII notes \  HS, Chapter note
Ch.89 Ships, boats and floating structures Sec XVII notes \  HS, Chapter note
   
Ch.90 Optical, checking,medical or surgical instruments Sec XVIII \  HS, Chapter note
Ch.91 Clocks and watches Sec XVIII \  HS, Chapter note
Ch.92 Musical instruments Sec XVIII \  HS, Chapter note
Ch.93 Arms and ammunition Sec XIX \  HS, Chapter note
Ch.94 Furniture; bedding, lamps Sec XX \  HS, Chapter note
Ch.95 Toys, games and sports requisites Sec XX \  HS, Chapter note
Ch.96 Miscellaneous manufactured articles Sec XX \  HS, Chapter note
 
Ch.97 Works of art, collectors’ pieces and antiques Sec XXI notes \  HS, Chapter note

Source:European Union Website :U.S. Customs and Border Protection

General Rules of Interpretation (GRIs)

The tariff classification of merchandise under the Harmonized System is
governed by the principles set forth in the General Rules of Interpretation(“GRIs”).

The GRIs are intended to be consulted and applied each time merchandise is
to be classified under the Harmonized System.

Accordingly, it is the GRIs that are the single set of legal principles that always
govern the classification of merchandise under the Harmonized System.

There are six GRIs in all.

 

Things to remember

The application of the GIRs (1-4) should always be in SEQUENTIAL ORDER:
Rule 1 is to be taken into consideration first.
If classification is not covered by the provisions of Rule 1, then apply Rule 2, and so on.

Goods must first be classified in the 4-digit HS heading whose terms most specifically
describe the goods (unless otherwise required or directed by the GIRs) and

What is "General Rules of Interpretation (GRIs)"
Only 4-digit headings are comparable:
Do not compare a heading description with a subheading description.

Example: Classification of an electric toothbrush.

What is "General Rules of Interpretation (GRIs)"

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

Heading 85.09 as an “Electro-mechanical domestic appliances with self-contained
electric motor,….” OR Subheading 9603.21 which provides for “Toothbrushes,…”.
(Heading 96.03 provides for “Brooms, brushes…”)

NO!
Do not compare a heading description with a subheading description.
It is important to know about things to remember before understanding GRIs.

An electric toothbrush could potentially be classified in heading 8509 as an
electromechanical domestic appliance with self-contained motor and in
heading 9603 as a brush.
Within heading 9603, subheading 9603.21 provides for “toothbrushes.”
No consideration should be given to this subheading when comparing the
terms of the headings to determine the appropriate heading for classification
of the electric toothbrush (as merchandise must first be classified in the
Harmonized System at the heading level by the terms of the headings).

GRI Rule 1 Terms of the Headings, Section/Chapter Notes

THE TABLE OF CONTENTS, ALPHABETICAL INDEX, AND
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: [that is, GRIs 2 to 6].

 

EXAMPLE 1: Under GRI 1, if a provision specifically and completely
describes a product, then the product would be classified in that provision
(e.g., fresh grapes are classified under heading 0806 which provides for
“grapes, fresh or dried”). In this situation, the product is classified by the
terms of a heading.

Example: Live poultry (heading 01.05)

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

EXAMPLE 2: Note 3 to Section XVI to the Harmonized System directs
classification of composite machines described therein on the basis of the
“principal function” of the machines. Under GRI 1, such machines are to
be classified as so directed in that note. In this situation, the products are
classified by the terms of a section note.

Example of Terms of the Headings, Section/Chapter Notes

EXAMPLE 3: Section XV is entitled “Base metals and articles of base metal”
but jewelry of base metal is classified in Section XIV.

EXAMPLE 4: Chapter 61 is entitled “Articles of apparel and clothing accessories,
knitted or crocheted”, although the chapter also covers certain articles which are
not wholly knitted or crocheted, such as those in heading 62.12.

EXAMPLE 5: Live horses are classified in Heading 01.01.

 

GRI 1 further states that if the texts of the headings and of the notes cannot, by
themselves, determine the appropriate heading for classification of merchandise, then
classification is to be determined by the appropriate GRIs that follow GRI 1 (i.e., GRIs 2
to 6).

 

Rule 2 (a) Incomplete or unfinished; Unassembled or disassembled

RULE 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 ENTERED,
THE INCOMPLETE OR UNFINISHED ARTICLE HAS THE ESSENTIAL
CHARACTER OF THE COMPLETE OR FINISHED ARTICLE. IT SHALL
ALSO INCLUDE A REFERENCE TO THAT ARTICLE COMPLETE OR
FINISHED (OR FALLING TO BE CLASSIFIED AS COMPLETE OR
FINISHED BY VIRTUE OF THIS RULE), ENTERED UNASSEMBLED OR
DISASSEMBLED.

GRI 2 (a) has two parts. Part one deals with incomplete or unfinished goods and part
two deals with unassembled or disassembled goods.

 

Part One incomplete or unfinished goods

The first part of GRI 2 (a) extends the scope of any heading that refers to a
particular article to cover not only the complete article but also that article incomplete or
unfinished, provided that, as presented, it has the “essential character” (which is
discussed below) of the complete or finished article.

EXAMPLE1: A ceramic statuette of the Hokie Bird that will be painted after
importation would still generally have the essential character of a ceramic
statuette of heading 6913 (i.e., one would still recognize and identify the
product as a ceramic statuette) and would, therefore, be classified pursuant
to GRI 2 (a) as the finished product in heading 6913.

Example2: Preform bottle – Unfinished (heading 39.23 covers plastic bottles)

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

Example3: Wrist watch without strap – Incomplete (heading 91.02 covers wristwatches)

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

Example3: A car without wheels, is considered as a complete car.

 

Part Two unassembled or disassembled goods

The second part of GRI 2 (a) provides that complete or finished articles presented
unassembled or disassembled (which may occur for reasons related to the packing,
handling or transportation of the articles) are to be classified in the same heading as the
assembled article. It also provides incomplete or unfinished articles presented
unassembled or disassembled are to be classified in the same heading as the complete
or finished article provided that as presented they have the essential character of the
complete or finished article (as provided for in the first part of GRI 2 (a)).

EXAMPLE1: A shipment of an unassembled bicycle (containing all parts
and components necessary to build a bicycle) would be classified in
heading 8712 as an assembled, finished bicycle as if it were entered (or
imported) as the assembled, finished bicycle.

Example2: A complete set of wooden panels meant for assembly into a cupboard,
is considered as a finished cupboard.

EXAMPLE3: Unassembled office chair (heading 94.01 covers seats)

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

Rule 2 (b) Mixtures or combinations

RULE 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.

GRI 2 (b) governs the classification (1) of mixtures and combinations of materials or
substances and (2) of goods consisting of two or more materials or substances. The
rule extends headings referring (1) to a material or substance to include mixtures or
combinations of that material or substance with other materials or substances and (2) to
goods of a given material or substance to include goods consisting wholly or partly of
that material or substance (but only as long as another heading does not refer to the
goods in their mixed or composite state).

If the addition of another material or substance deprives the imported good of the
character of the kind mentioned in the heading under consideration, however, then
one must resort to GRI 3 for classification of the merchandise. Or, in other words,
mixtures and combinations of materials or substances, and goods consisting of
more than one material or substance, if upon initial consideration are potentially
classifiable under two or more headings, they must be classified according to the
principles of GRI 3.

EXAMPLE1: Under GRI 2 (b), a stainless steel travel mug with a plastic
handle would be classifiable in heading 7323 as a table, kitchen or other
household article of steel despite the plastic handle (as it retains the
character of a table, kitchen or another household article of steel as
mentioned in heading 7323). If a travel mug, however, contained
relatively equal amounts of stainless steel and plastic (e.g., the outside or
outer surface of the mug is made of plastic and the inside or inner surface
(lining) of the mug is made of stainless steel), then the travel mug would
be potentially classifiable under two headings: heading 3924 as tableware,
kitchenware or other household article of plastic and heading 7323 as a
table, kitchen or other household article of steel. (Or, contrasting this
product with the initial one considered in this example, a travel mug
consisting of relatively equal amounts of stainless steel and plastic does
not have the character of a table, kitchen or other household article of
steel as mentioned in heading 7323.) In this situation, pursuant to GRI 2(b),
resort would need to be made to GRI 3 for classification of the product.

EXAMPLE2: Milk to which vitamins or minerals have been added.

EXAMPLE3: A pack of cornflakes which also contains a small amount of nuts and raisins.

Rule 3 Two or more headings

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:

GRI 3 provides for the classification of goods that are prima facie (or when initially
considered) classifiable under two or more headings. In such instances, the goods are
classified pursuant to this rule based on three criteria, taken in order:

Rule 3 (a) Most specific

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.

The first sentence to GRI 3 (a) provides that goods should be classified in the heading
that provides the most specific description. In general, under this criterion, (1) a
description by name is more specific than a description by class and (2) a description
that more clearly identifies a product is more specific than one which is less complete.

Example1: Chair/ladder
A wooden ladder is classified as “Other articles of wood(HS4421)”
A wooden chair is classified as “Wooden chair(HS9401)”
So where to be classified??

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

Relative Specificity
A description by name is more specific than a description by class.
A description that more clearly identifies a product is more specific than one which is less complete.

the name “Wooden chair” more clearly identifies than “Other articles of wood”
Therefore this product is classified as Wooden chair(HS9401)

Example2:
Steel spoon is classified in  HS82.15(Spoons) and not in HS73.23(Steel Household)

Example3:
Seats for motor vehicles are classified in HS94.01(Seats for motor vehicles)
and not in HS 87.08(Parts and accessories of the motor vehicles)

Example4: An example of a description by name in one heading that is
more specific than a description by class in another heading is as follow:
“shavers and hair clippers with self-contained electric motor” of heading
8510 is more specific than “electro-mechanical tools for working in the
hand with self-contained electric motor” of heading 8467 or
“electromechanical domestic appliances with self-contained electric motor” of
heading 8509.

Example5: An example of a description in one heading that more clearly
identifies a product than a description in another heading (and thus the
first description is more specific than the second description) is as follows:
A product identified as “unframed safety glass made of toughened or
laminated glass that is shaped and identifiable for use in airplanes” is
more clearly described by the article description “safety glass” of heading
7007 than by the article description “parts of goods of heading 8801 or
8802” (parts of aircraft and spacecraft) of heading 8803.

The second sentence to GRI 3 (a) further provides that when two or more headings
each refer to only one of the materials or substances in mixed or composite goods, or to
only some of the articles included 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. If this situation exists, then resort must be
made to GRI 3 (b). (See examples discussed below for GRI 3 (b).)

Rule 3 (b) Essential character

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 3 (a), shall be classified as if
they consisted of the material or component which
gives them their essential character, insofar as this
criterion is applicable.

GRI 3 (b) deals with mixed goods, composite goods, and goods put up in sets for retail
sale as described above in the second sentence to GRI 3 (a) (i.e., each of the goods is
potentially classifiable in more than one heading because each good consists of two or
more different ingredients, materials, components or articles and no heading provides
for the goods as a whole).

By application of this criterion, such goods are classified according to the ingredient,
material, component or article that gives the mixtures, composite goods, or sets their
“essential character.”

Goods Put up in Sets for Retail Sale. For the purposes of GRI 3 (b), the term “goods put
up in sets for retail sale” means that the goods under consideration must (a) consist of
at least two different articles (i.e., the articles must be of a different type or nature, e.g.,
two table spoons are not such a “set”) which are, prima facie, classifiable in different
headings; (b) consist of products or articles put up together to meet a particular need or
carry out a specific activity; and (c) are put up in a manner suitable for sale directly to
users without repacking.

Example1:Mixture of barley (60%) of HS10.03 and oats (40%) of HS10.04

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

An example of a mixture of barley of HS1003(60%) and oats of HS1004(40%) in
different amounts. In such an instance, “barley” gives their essential character.
Therefore the mixture is classified as “barley(HS1003)”

Example2: An example of a “composite good”
coming within the purview of GRI 3 (b) would be a combined flashlight of
heading 8513 and radio of heading 8527 (i.e., both are contained in the
same housing). In such an instance, there is a product consisting of two
or more different units or components that are located in the same
housing with each component having a provision in which it could
potentially be classified and no provision exists in the Harmonized System
that provides for the composite good as a whole.

Example3: An example of a “set” coming within the purview of GRI 3
(b) would be a hairdressing kit consisting of a pair of electric hair clippers
of heading 8510, a comb of heading 9615, a pair of scissors of heading
8213, and a brush of heading 9603. In such an instance, there is a
product that consists of more than one item or article with each article
having a provision in which it could potentially be classified and no
provision exists in the Harmonized System that provides for the set as a
whole. In the above-mentioned hairdressing kit, the articles are put up
together to meet the particular need or carry out the specific activity of
grooming hair.

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

Example4:  A mixture for brewing, consisting of 70 % wheat and 30 % barley. The mixture is
classified in Heading 10.01 (Wheat and meslin).

Example5: Liquor-filled chocolates are classified in Heading 18.06 (Chocolate and other food
preparations containing cocoa).

Example6: A bed linen set comprising a woven bedspread, pillow-cases and bolsters put up in a
paperboard case. It is classified in Heading 63.04.

In each of the above-mentioned example 4 to 6, one would need to make a
determination as to the ingredient, material, component or article that imparts the
essential character to the particular good. The good would then be classified as if made
or consisting entirely of that ingredient, material, component or article. In some
situations, however, no ingredient, material, component or article will be found to impart
the essential character to a particular good. In such instances, resort would need to be
made to GRI 3 (c) in order to classify the good.

Rule 3 (c) Last in numerical order

WHEN GOODS CANNOT BE CLASSIFIED BY REFERENCE TO
3(a) OR 3(b), THEY SHALL BE CLASSIFIED UNDER THE HEADING
WHICH OCCURS LAST IN NUMERICAL ORDER AMONG THOSE
WHICH EQUALLY MERIT CONSIDERATION.

GRI 3 (c) states that goods should be classified under the heading that occurs last in
numerical order from among those that equally merit consideration if the goods cannot
be classified by reference to GRIs 3 (a) or 3 (b).

EXAMPLE1:

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

In the above-mentioned example of the mixed good consisting of barley
and oats in equal amounts, if neither the barley nor the oats is found to
impart the essential character to the product, then by application of GRI 3
(c) the product would be classified in heading 1004 as if consisting solely
of the oats. This is because the heading number for the oats found in the
mixture occurs last in numerical order as between it and the barley (i.e.,
1003 for the barley and 1004 for the oats).

EXAMPLE2: A belt made of 50 % leather(heading42.03) and
50 % textiles(heading62.17) is classified in Heading 62.17.

EXAMPLE3: A machine-tool for working stone(heading 84.64) as well as
wood(heading 84.65) is classified in Heading 84.65.

EXAMPLE4: Electric lamp (heading 94.05) with an alarm clock (heading 91.05)
is classified in 94.05.

EXAMPLE5: Chandeliers (heading 94.05) with electric fan (heading 84.14)
is classified in 94.05.

 

WHAT IS THE ESSENTIAL CHARACTER OF A PRODUCT?
The term “essential character,” as used in the GRIs, is not defined in the Harmonized
System. As concerns that term, however, it is stated in the Explanatory Notes to the
Harmonized System (which is an extrinsic interpretative aid to the Harmonized System
that is discussed below) that the factor that determines the essential character of a good
will vary as between different kinds of goods (i.e., essential character must be
determined on a case-by-case basis). The essential character of a good, may, for
example, be determined by the nature of the material or component, its bulk, quality,
weight or value, or by the role of a constituent material in relation to the use of the
goods. Other factors may be considered in determining the essential character of a
product.

Rule 4 Most akin

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.

If goods cannot be classified according to GRIs 1 to 3, then resort must be made to GRI
4. GRI 4 requires that goods are to “be classified under the heading appropriate to the
goods to which they are most akin.” This rule should be applied very infrequently as
GRIs 1 to 3 will cover the classification of almost all goods. When attempting to apply
this rule, however, any determination regarding “kinship” should depend on such factors
as description, character, purpose or intended use, designation, production process and
the nature of the goods.

EXAMPLE: Exhaust Air Jack (heading 84.25)

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

Rule 5 Containers

IN ADDITION TO THE FOREGOING PROVISIONS, THE
FOLLOWING RULES SHALL APPLY IN RESPECT OF THE GOODS
REFERRED TO THEREIN:

GRI 5 has two sections: GRI 5 (a) and GRI 5 (b).
These two sections deal with various types of containers presented with
the articles for which they are intended.

Rule 5 (a) Special containers

(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 LONGTERM
USE AND ENTERED 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;

GRI 5 (a) deals with the treatment of long-term use cases, boxes, and similar containers
presented with the articles for which they are intended. Under this rule, long-term use
containers imported with articles for which they are intended to be used are to be
classified with the articles if they are of a kind of container normally sold with such
articles (e.g., camera cases with cameras and musical instrument cases with musical
instruments). This rule, however, does not apply to containers that give the imported
article its essential character (e.g., a silver tray or dish containing tea or a high-quality
ornamental ceramic bowl containing candies or sweets). Such merchandise is to be
classified under the heading for the container.

EXAMPLE1: Violin(HS9202) with case(4202)

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

Packing materials and packing containers entered with the
goods therein shall be classified with the goods if they are of
a kind normally used for packing such goods.

Violin with a case would be classified as Violin(HS9202) if the items
satisfie Rule 5(a).

 

EXAMPLE2:Gumball with toy packaging

Retrieved from: HS Classification by Japan customs

It seems that it satisfies Rule 5(a) but in this situation Gumball and toy packaging
should be classified separately because of Rule 5(a) states that,
THIS RULE DOES NOT, HOWEVER, APPLY TO CONTAINERS WHICH GIVE THE WHOLE
ITS ESSENTIAL CHARACTER;

Toy packaging gives the whole it’s an essential character.
Therefore Gumballs are classified HS1704
The toy packaging is classified HS9503 as Toy.

 

Rule 5 (b) Packing materials & containers

(b) SUBJECT TO THE PROVISIONS OF RULE 5(a) ABOVE, PACKING
MATERIALS AND PACKING CONTAINERS ENTERED WITH THE
GOODS THEREIN SHALL BE CLASSIFIED WITH THE GOODS IF
THEY ARE OF A KIND NORMALLY USED FOR PACKING SUCH
GOODS. HOWEVER, THIS PROVISION IS NOT BINDING WHEN SUCH
PACKING MATERIALS OR PACKING CONTAINERS ARE CLEARLY
SUITABLE FOR REPETITIVE USE.

GRI 5 (b) states that packaging containers and materials not normally intended to be
reused are classified with the articles in which they are presented or imported (e.g.,
cardboard boxes or containers containing food products). This rule, however, does not
apply to packaging materials or packing containers clearly suitable for repetitive use
(e.g., certain metal drums or containers of iron or steel for compressed or liquefied gas).
Such containers are to be classified separately from the materials that they hold.

Example1: Men’s shirts individually sealed in a polybag then packed in cardboard boxes

Retrieved from: HARMONIZED COMMODITY DESCRIPTION and CODING SYSTEM or  HARMONIZED SYSTEM(HS)

In this situation, Men’s shirts with the cardboard box are entirely classified
as shirts.

 

EXAMPLE2: Gumball dispensing machine

Gumball dispensing machine (predominantly of zinc alloy) imported with gumballs.
It is designed to accept a coin and release a candy.

It seems that it satisfies Rule 5(b), but in this situation Gumball and dispensing machine
should be classified separately because of Rule 5(b) states that,
HOWEVER, THIS PROVISION IS NOT BINDING WHEN SUCH
PACKING MATERIALS OR PACKING CONTAINERS ARE CLEARLY
SUITABLE FOR REPETITIVE USE.

Dispensing machine is considered as a container which suitable for repetitive use.
Therefore Gumballs are classified HS1704
The dispenser is classified HS7907.

 

 

Rule 6 Subheading rule

For legal purposes, the classification of goods in the
subheadings of a heading shall be determined
according to the terms of those subheadings and any
related Subheading Notes and, mutatis mutandis, to
the above Rules, on the understanding that only
subheadings 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.

GRI 6 is the last of the GRIs. It prescribes that, for legal purposes, GRIs 1 to 5 govern,
mutatis mutandis (or with the necessary changes), classification at subheading levels
within the same heading. Or, in other words, GRIs 1 to 5 are to be reapplied to
determine the classification of goods at the subheading level. Goods are to be classified
at equal subheading levels (that is, at the same digit level) within the same heading
under the subheading that most specifically describes or identifies them (or as
otherwise required or directed under GRIs 1 to 5). Only subheadings at the same level
within the same heading are comparable (i.e., no consideration should be given to the
terms of any subheading within another subheading when considering the proper
classification of merchandise at the higher level subheading).

EXAMPLE 1: A framed glass mirror is found to be classified in heading
7009. Thereafter, it would have to be classified within the subheading
structure of that heading by application of GRIs 1 to 5 pursuant to GRI 6:

Initially, a determination would need to be made as to whether the framed
glass mirror is classified at the 5-digit (or “one-dash”) subheading level in
5-digit subheading 7009.1 (“rear-view mirrors for vehicles”) or in 5-digit
subheading 7009.9 (“other”). If the product is found to be classified in 5-
digit subheading 7009.1 (as a rear-view mirror for a vehicle), then the
classification analysis would end there and the product would be classified
in subheading 7009.10 (as 5-digit subheading 7009.1 is not further
subdivided). In the instant case, the framed glass mirror does not satisfy
the article description for 5-digit subheading 7009.1. Therefore, the
product would be classified at the 5-digit subheading level in 5-digit
subheading 7009.9 (as a glass mirror other than a rear-view mirror for a
vehicle). Next, a determination would have to be made as to whether the
product is classified at the 6-digit (or “two-dash”) subheading level within
5-digit subheading 7009.9 in 6-digit subheading 7009.91 (as an unframed
glass mirror other than a rear-view mirror for a vehicle) or in 6-digit
subheading 7009.92 (as a framed glass mirror other than a rear-view
mirror for a vehicle). The framed glass mirror would be classified in
subheading 7009.92 by application of GRI 1 pursuant to GRI 6.

EXAMPLE 2: A set consisting of a shovel, fork, and pick for use in
gardening would be classified in heading 8201 as each article is
specifically provided for in the terms to that heading. Within heading
8201, shovels are provided for in subheading 8201.10, forks in
subheading 8201.20, and picks in subheading 8201.30. Consequently,
one would need to resort to GRI 3 pursuant to GRI 6 in order to classify
the set at the subheading level within heading 8201. That is, one would
need to determine which of the three articles imparts the essential
character to the set pursuant to GRI 3 (b). If no one article is found to
impart the essential character to the set, then one would classify the set
under subheading 8201.30 because the subheading number for that
article occurs last in numerical order as provided for in GRI 3 (c).

As evident from the above discussion, the GRIs provide that goods must first be
classified by heading level, and only after the appropriate heading has been
determined, then by equal subheading levels (first by five-digit and then by six-digit
international levels) within that heading. When considering the appropriate
classification at a particular subheading level, no consideration should be given to any
of the terms of any lower-level subheading (as the analysis at each subheading level
should be conducted without consideration of the terms of any lower-level subheading
provision). This step-by-step analysis applies without exception throughout the
Harmonized System (and throughout any national subheading levels as found in a
particular country’s Harmonized System-based tariff system).

Source: WCO

Filed Under: GRI, HS Classification

Search HScode from Customs Ruling Database

2020-07-30 By Taichi Kawazoe

HS classification is an important component to determining both import duty rates and if
products qualify for preferential tariff treatment under the many free trade agreements.

And also it’s important to classify HS code correctly but since HS classification system is a
black box, sometimes classification dichotomy occurs between Customs and Trader.

What happens if HS classification dichotomy or misclassification occurs?
Here are some consequences of  misclassification

  • Overpayment of duties
  • Missed opportunity to benefits from free trade agreement
  • Import may be subject to anti-dumping or countervailing duties
  • Alert to customs agents about deeper problems, which could lead to an audit
  • Unexpected customs clearance delays.

Based on my 10 years of experience as a Customs broker qualified by Japan Yokohama Customs. I can tell the method of HS classification.

In this article, you will learn

  1. How does HS classification dichotomy or misclassification occur?
  2. The best way to search for the appropriate HS code online.
  3. How to search the World Customs HS decision database to find reliable information.
  4. How to use item description, image, and basis of classification from Customs HS decision database

How HS Misclassification occurs?

Identifying the right HS code is sometimes easy but often difficult.
These examples demonstrate how difficult HS classification can be comparing simple examples and complex examples.

Example1. Wooden chair

Simple example

Source::European Union Website

This item is quite easy to classify. Nothing other than Upholstered wooden frame seats(HS:9401.61)

Complex example1

This item is hard to classify because this item can be classified both ways.

Choices are as follows:
1.Chair (HS:9401.80 -Other seats)
2.Hammocks (HS:6306.90 -Other camping goods)

 

Complex example2

Source::European Union Website

This item (set of table and chairs) is hard to classify because this item can be classified both ways.

Choices are as follows:
1.Wooden chair (HS:9401.69 -Seats)
2.Wooden table (HS:9603.60 -wooden furniture)

 

Example2. Watch

Simple example

Source::European Union Website

This item is quite easy to classify. Nothing other than Wristwatches(HS:9102)

 

Complex example1

Source: China customs

This item (Apple Watch) is hard to classify because it’s not just a watch, it has multiple functions.

Choices are as follows:

  • Telephone sets (HS:8517)
  • Sound recording or reproducing apparatus(HS:8519)
  • Video recording or reproducing apparatus(HS:8521)
  • Revolution counters,production counters,taximeters, odometers(HS:9029)
  • Measuring or checking instruments(HS:9031)
  • Wristwatches, pocketwatches and other watches(HS:9102)

 

Complex example2

Source::European Union Website

This item (set of Watch and Knive) is hard to classify because both are packed as a set product.

Choices are as follows:
1.wrist watches with mechanical display only(HS:9102.11)
2.Knives having other than fixed blades(HS:8211.93)

 

Example3. hand tool

Simple example1

Source::European Union Website

This item is quite easy to classify. Nothing other than Plier (HS:8203)

 

Simple example2

Source::European Union Website

This item is quite easy to classify. Nothing other than Wrenches (HS:8204)

 

Complex example

Source :Customs Bulletin

So-called “Locking pliers”, it has two functions of Plier and Wrenches

Choices are as follows:
1.Plier(HS:8203)
2.Wrenches(HS:8204)

With those examples above you may understand why HS misclassification occurs.
Some items are easy to classify, but some are not.

Customs’s opinion and Trader’s opinions are not always same, because there are
so many choices.

So is there any way to avoid HS misclassification?
The best way to avoid HS misclassification is to apply the Customs *Advance rulings
but the process is complicated and time-consuming.
Customs asks you so many questions regarding your items and require documents or
sample items when you apply for advance rulings.

If you deal with many items, applying for advance rulings is not always a good option.

*Advance ruling 
Importers and other relevant parties may make an inquiry to Customs regarding the
HS classification of the goods in advance of importation, which is called “Advance ruling.”
Advance ruling provides certainty on the Customs duty rate to be applied which is
issued in writing on the applicant’s written request.

Since applying for advance rulings is not always a good option, I recommend
Searching customs ruling database.

 

What is Customs Ruling Database

When Trader apply for advance ruling, Customs issues writing answer regarding
Trader’s item’s HS classification and opens it online.

There are more than one million classification records issued by customs all over the world which available on the internet.
They contain customs opinions based on a legal basis regarding how HS classification decision was made for each item individually and some items come with an image of the items.
If you usually struggle with HS classification, there is no way not using Customs Ruling
Database.

Here are some examples of Customs Ruling decision records available on the internet.

Item image
Issued Country Netherlands
Reference NLRTD-2013-002426
Issuing date 2013-11-11
Item name Hammock chair
Classified HS code 6306.90
Details & Customs Opinion A hammock chair with-as stated, include the following features and characteristics: – an up article in a rectangular shape – made from woven cotton – the two short sides of the fabric by means of braided cords attached to a wooden stick; – not shaped seat – a seating area with dimensions (L x W) 110 x 60-70 cm – a back section with dimensions (L x W) 110 x 70-80 cm – the hammock chair hanging on a wooden spreader with a length of 110 cm.De hammock chair is intended to be. attached to the ceiling, beam, or to a branch point The article takes the body shape of the person who sits in it. The hanging chair can be used both indoors and outdoors.

Classification is determined by General Rules 1 and 6 for the interpretation of the Combined Nomenclature, notes 7 to Section XI, Note 1 to Chapter 63, Regulation (EC) No 471/2002 of 15 March 2002 ( Official Journal L75) and the wording of CN codes 6306, 6306 90 and 6306 90 00.

 

Item image
Issued Country Germany
Reference DEBTI58717/18-1
Issuing date 2019-03-07
Item name ASSEMBLED FURNITURE
Classified HS code 9401.69
Details & Customs Opinion The product called “ASTRO chair” is a composite product consisting of an unpadded chair without armrests and a loose seat cushion. The chair is made of acacia wood and has a size of 60 x 59 x 89 cm (L x W x H). The goods are equipped with a backrest. The chair determines the character of the goods in terms of volume and importance for use. Two chairs are packed together as a set in a cardboard box. The goods shall be classified as ‘other than seats specified in heading 9402, not covered by subheadings (HS) 9401 10 to 9401 59, with a frame of wood, not upholstered’.

 

Item image
Issued Country China
Reference J2015-0015
Issuing date None
Item name Apple Watch
Classified HS code 8517.62
Details & Customs Opinion Apple Watch product design worn on the user’s wrist device that can directly communicate with the user’s iPhone. As the iPhone expansion device. The user can directly operate the device by Apple Watch the hardware and access many iPhone applications, achieve the iPhone function expansion: 1, processor; 2, the touch screen; 3, digital crown: by twisting the digital crown, be flexible and accurate screen zoom and scroll, crown and can be used as a button; 4, built-in speaker and microphone; 5 Linear actuator: to generate tactile feedback; 6, heart rate sensors: can help estimate the activity intensity, thus enhancing the overall situation with the measure calorie consumption level; 7, GPS, in order to achieve positioning and distance measurement; 8, the acceleration sensor control: to track physical activity throughout the day, and calculate motion steps to help measure calorie consumption; 9, a charging device; 10, the operating system. AC induction (eg transfer heartbeat); 10, by measuring heart rate, body sensing user activity, measured calories, and set moving target, and through collaboration with iPhone users view the activity log and view the progress of activities; 11, built Siri voice control This device; 12, through the built-APP realize calendar, Passbook (boarding passes, tickets, membership cards, coupon management software), edit iTune library, remote iPhone camera, stopwatch, timer, alarm clock, stocks, weather, and other functions; 13 , by third-party developers to develop applications to further implement other innovative features. When users buy Apple Watch equipment customers through the initial setup, the device is connected to the user’s iPhone immediately to implement the main features of the product include: 1, answer or reject calls; 2, by touching or dictation receive information; 3, receive, edit the message; 4, record voice memos; 5, the media access is stored in the iPhone (including pictures, music and video); 6 , function-based Global Positioning System (GPS) procedures; 7, set to the user’s iPhone; 8, graffiti screen and instantly share with other Apple Watch user; 9, by a linear actuator with a friend (others)

This product has a variety of functions, according to the General Rules of classification and 6.0, according to a communication device included in tariff codes 8517.62

 

Item image
Issued Country USA
Reference NY H87395
Issuing date 2002-02-12
Item name Quartz analog wristwatch and multi-function pocket knife
Classified HS code 9102.11 and 8211.93
Details & Customs Opinion The submitted wrist watch and multi-function pocket knife are classifiable under two separate headings or subheadings of the tariff. GRI 3 applies when goods are put up for sale collectively and are classifiable under two or more headings of the tariff. GRI 3(b) covers goods put up in sets for retail sale. Explanatory Note X to GRI 3(b) defines “goods put up in sets for retail sale”. Such goods: (a) consist of at least two different articles that are classifiable in different headings, (b) consist of products put up together to meet a particular need or carry out a specific activity, and (c) are put up in a manner suitable for sale directly to users without repacking. The submitted items fail, in our opinion, to constitute a set for tariff classification purposes. They meet the criteria of elements (a) and (c) above. The wrist watch and multi-function pocket knife do not consist of products put up together to meet a particular need or carry out a common specific activity. Having failed as a set in accordance with GRI 3(b) the wrist watch and multi-function pocket knife must be classified separately.

The applicable subheading for the wrist watch will be 9102.11.25, Harmonized Tariff Schedule of the United States (HTS)

The applicable subheading for the pocket knife will be 8211.93.0030, Harmonized Tariff Schedule of the United States (HTS)

 

Item image
Issued Country Poland
Reference PLBTIWIT-2019-000261
Issuing date 2019-03-19
Item name Wrench including Pliers
Classified HS code 8203.20
Details & Customs Opinion Pipe wrench made of chrome-vanadium steel, used to work under heavy load in plumbing. The wrench has a worm mechanism with a screw, regulating the opening of working jaws and a strong clamp, properly reinforced with long wrench arms. Solid “teeth” prevent the key from slipping on oval objects, pipes, valves or bolts. The jaws of the key are set at an angle of 45 degrees to the handle. The key length is 430 mm.

The tariff classification of the goods was determined on the basis of rules 1 and 6 of the General Rules for the Interpretation of the Combined Nomenclature, note 3 d of Section XV, note 1 (a) to Chapter 82 of the Common Customs Tariff and is consistent with the wording of heading 8203 WTC and TARIC code 8203 20 00 00 including pliers (including cutting pliers), pincers, tweezers and similar tools.

 

Here are HS code list of Automotive parts retrieved from Customs Ruling records.

Description hs code Image
Air conditioners 8415.20
Alternators 8511.50
Antennas 8529.10
Antifreeze 3820.00
Batteries 8507.10
Bearings, ball and/or roller 8482.40
Bearing housings and housed bearings 8483.20
Bearings, plain shaft type 8483.30
Belts of rubber 4010.35
Bodies (including cabs) 8707.10
Bolts & other fasteners of iron or steel 7318.29
Brake friction material of mineral substance 6813.81
Bushings (if plain shaft bearings) 8483.90
Cable, electrical (insulated) 8544.30
Cable, non-electrical, of steel 7312.10
Capacitors 8532.22
Camshafts & crankshafts 8483.10
Carpets, tufted 5703.20
Carpets, woven, not tufted or flocked 5702.42
Chain of iron or steel (including timing chain) 7315.11
Chain sprockets 8483.40
Chassis fitted with engine 8706.00
Cigarette lighters 9613.80
Circuit breakers 8536.10
Clamps of iron or steel for hoses 7326.20
Clutch friction material of mineral substance 6813.89
Compressors 8414.80
Control Boxes & panels 8537.10
Decals 4908.90
Defrosters & demisters 8512.40
Distributors & ignition/starting equipment 8511.40
Engines, diesel 8408.20
Engines, gasoline 8407.34
Engine parts, not provided for elsewhere 8409.91
Fans & Blowers 8414.59
Filters 8421.23
Fittings & mountings of base metal 8302.30
Fittings & mountings of plastic 3926.30
Fittings of iron or steel for pipes & tubes 7307.23
Flexible tubing of base metal 8307.10
Floor mats of rubber 4016.91
Pulleys 8483.50
Fuel injectors 8409.99
Punps for piston engines 8413.30
Fuses & similar electrical apparatus 8536.10
Gears 8483.40
Gauges 9026.20
Generators 8511.40
Handles & knobs of plastic 3926.30
Rubber parts and accessories 4016.99
Harnesses, electrical 8544.30
Heaters, electrical 8516.29
Horns & other sound or visual signaling equipment 8512.30
Hoses of rubber 4009.12
Hydraulic cylinders 8412.21
Integrated circuits 8542.31
Lamps 8539.32
Lenses of glass, signaling & optical 7014.00
Lighting equipment 8512.20
Locks & keys 8301.20
Magnets & electromagnetic articles 8505.20
Manuals & other printed matter 4901.10
Mirrors 7009.10
Motors, electric 8501.31
Motors, hydraulic or pneumatic 8412.39
Nameplates, signplates, etc.parts thereof of base metal 8310.00
Nuts & other fasteners of iron or steel 7318.16
Pins, cotter or dowel, & fasteners of iron or steel 7318.24
Printed circuit boards, blank 8534.00
Printed circuit boards, populated 8537.10
Vacuum pumps 8414.10
Pumps for liquids 8413.30
Radios, with tape & CD players 8527.91
Relays & similar electrical apparatus 8536.49
Resistors, electrical 8533.21
Rivets of iron or steel 7318.23
Rivets of base metal 8308.20
Screws & other fasteners of iron or steel 7318.15
Seals of plastic 3926.90
Seals of rubber 4016.93
Seats, cushions & other articles of furniture 9401.20
Crankshaft 8483.10
Sparkplugs 8511.10
Speedometers & odometers 9029.10
Springs of steel 7320.20
Springs of copper 7419.99
Studs & other fasteners of steel 7318.15
Switches & similar electrical apparatus 8536.50
Tape & CD players without a radio 8519.81
Thermostats, without valves 9032.10
Tires 4011.10
Tool (Hand tools) Kit 8206.00
STATIC CONVERTERS 8504.40
Turbochargers 8414.59
Universal joints 8483.60
Valves 8481.30
Washers & other fasteners of iron or steel 7318.22
Windshield window safety glass 7007.11
Windshield wipers 8512.40
Wrenches 8204.11

Retrieved from:European Union Website  , U.S. Customs and Border Protection

*When consulting the above list, please keep in mind that it is being offered for
reference purposes only and does not guarantee accuracy of classification.

 

The above data are retrieved from the Customs Ruling Database from all over the world.
If you usually struggle with HS classification, I highly recommend using Customs Ruling
Database.

But before using Customs Ruling Database to search HS code, it is necessary to understand the fundamentals of HS classification.

If you are not familiar with HS classification Please refer to the two below articles before searching from Customs Ruling Database otherwise you fell in a pit hole of HS classification.

The Fundamentals of HS classification

What is “General Rules of Interpretation (GRIs)”

Search HS code from Customs Ruling Database

Some customs provide their own Ruling database on the internet.
among them, two big databases are US customs “CROSS” and EU taxation and customs union “BTI Consultation”

US customs “CROSS”

CROSS

EU taxation and customs union “BTI Consultation”

BTI Consultation

The above two big databases contain more than 500 thousand ruling records.
If you look for a ruling record of a general trade item, most of the cases you would be able to find it from two of them.

So let’s take a look at how the search process works.

Suppose you are looking for HS code of “Wooden chair”, just type in the search bar “Wooden chair”.

Then you can see many ruling records of “Wooden chair” and HS codes.

When you need to see the details of the record, click referential NO.

Then you can see the details of the record.

Complex search

CROSS is a searchable database of CBP rulings that can be retrieved based on simple or complex search characteristics using keywords and Boolean operators.

Here are tips you can use when searching the database.

Keyword Input

Searches can be performed utilizing keywords, multiple keywords, phrases, and combinations of each.

  • Single keyword = doghouse

    Search results will include records with the keyword doghouse in the document.

  • Multiple keywords = dog house

    Search results will include records with both the keywords dog and house in the document.

  • Phrase = “dog house” enclosed in double quotes.

    Search results will include records with the exact phrase “dog house” in the document.

  • Search by tariff number

    – Simply enter 6204.43.4040 to retrieve rulings that contain this tariff number.

    – 6204.43.4040 6104.43.2020 6110.30.3055 will find rulings that reference all these tariff numbers.

  • Search by regulatory cite or statutory cite

    – Since there are a variety of ways these are expressed, the following techniques will yield favorable results: By breaking this cite into two phrases, “19 C.F.R.” “102.11(b)” will return rulings with 19 CFR § 102.11(b), 19 CFR 102.11(b), 19 C.F.R. 102.11(b)

    – The search phrase “19 U.S.C.” “1401(a)” or the search phrase “1401a” will return results where the search target may appear as 19 U.S.C. 1401(a)(b) or 19 U.S.C. 1401a(b). If parentheses are part of the phrase to be searched, they must be enclosed in quotes. Note that periods are used in the acronym, i.e., C.F.R. is used rather than CFR.

  • Search by ruling number

    – Enter 083536 to retrieve all rulings that reference that number.

    – Hint: to search for a specific ruling, make sure that the collection option is set to ALL and the date sort is set to descending.

    – Hint: if you are searching using a ruling number and do not get a hit by typing in the requested number, try adding a “W” in front of the number, for example W563543.

Punctuation marks such as the period (.), colon (:), semicolon (;), and comma (,) are ignored during a search.

 

BooleanOperators and Wildcards

Boolean operators are tools used to narrow your search results. They include AND, OR, and NEAR. The wildcard operator ( * ) is used to expand your search.

  • AND connecting two or more keywords or phrases will only match records containing all keywords or phrases. AND is the default operator when two or more keywords or phrases are entered without an operator.- dog AND “chew toy” is the equivalent of dog “chew toy”.- dog AND house is the equivalent of dog house.
  • AND NOT forbids the word or word phrase that follows it from appearing in the search result set.- red handbag AND NOT leather will find records containing words red and handbag and screens out records with the word leather.- dog AND NOT “chew toy” will return records with the word dog but not the phrase “chew toy”.- light emitting diode AND NOT “semi*” will find records containing words light, emitting and diode and screens out records with words starting with semi (such as semiconductor).- red handbag AND NOT leather AND NOT plastic AND NOT pink will find records with the words red and handbag but screens out records with the words leather or plastic or pink.
  • OR connecting two or more keywords or phrases, will match records containing any of the keywords or phrases.- dog OR “chew toy” returns records containing the keyword dog or the phrase “chew toy”.
  • A string of letters or digits followed by the wildcard (*) will match all records that contain keywords starting with the same pattern. This search type is especially useful when you don’t know the spelling of a particular keyword, or when you want to include all variants of a keyword in your search.- comput* returns records containing the words computer, computing, computation, etc…
  • Multiple operators can be used in a single search to create very specific result sets.- dog OR house AND wood matches records containing both the keywords house and wood, as well as records containing the keyword dog.

 

Correct Syntax

  • Two operators are not allowed next to each other.
  • No operator is allowed to start or end a query except the wildcard (*).
  • CROSS Search is not case sensitive and views mike, MIKE, and Mike as equivalents when searching.
  • Keywords can be any string of more than one letter and/or digits; but, cannot include non-alphanumeric characters such as: `~ ! @ # $ % ^ & and white space (tabs).

 

Image search

CROSS provides detailed information regarding each individual item, it must be a great source for determining HS code but sometimes information is so detailed that you could be overwhelmed and to be uncertain if that information really refers to the item you want to inquire.

Please be noted that CROSS mostly provides text information while EU taxation and customs union “BTI Consultation” provide many images.

If you are overwhelmed with CROSS’s tons of texts, I recommend you to search item images from “EU BTI Consultation” based on information retrieved from CROSS.

Let’s say you are looking for HS code of wooden chair at CROSS.

And when you are certain that wooden chiar’s HS code is 9401.61.4010.
Then copy the first 6 digits of the HS code.

Because the first 6 digits of the HS code is common anywhere in the world.
In order to see the item’s image from “EU BTI Consultation” you can only use the first 6 digits of the HS code to search.  The full digit of “9401.61.4010” is used only for the US.

Go to BTI Consultation and put 6 digits of “940161” in “Nomenclature code” form and search.
“Nomenclature code” is almost the same meaning as “HS code” or “HTS code”

In the result page, select the radio button of “Thumbnail View”.
Then you can see many kinds of item’s images based on the HS code you specified.

 

One more example.

Let’s say you are looking for HS code of “Ball bearing”, go to CROSS and type in the search bar “Ball bearing”.

Then you could expect that HS code of “Ball bearing” could be 8482.10 but not certain.
In order to see the Items’ example image, go to BTI Consultation and type 6 digits number of the HS code retrieved from Cross.

To make it clear, results should be sorted by “Number of images” and apply Thumbnail View.

Then you can be more certain that HS code of 8482.10 is appropriate for your targeting item with those images.

When it comes to HS classification you can get a clear view from those images.
Therefore you can be more certain than just classify with text information.

BTI Consultation is very powerful when it comes to search items image but it’s not a useful tool when it comes to text search because BTI Consultation contains the database of many EU countries and they consist of many languages.

In BTI Consultation database English is not a common language.
Some data has an English keyword but it’s not so detailed to be searched.

Therefore I recommend using Cross to search text-based information with English keyword to specify 6digits of HS code and using BTI Consultation to search image information to be more certain that the specified HS code is appropriate for your target item.

Filed Under: HS Classification

How to classify Bolt and Screw under HS code(HTS)

2020-07-07 By Taichi Kawazoe

Even if a person knows the GRIs as well as they know their own social security number
and is aware of all the relevant legal and explanatory notes, classification is just
guesswork if invoices do not give complete and accurate descriptions of what is being
imported.

This is especially true when there is a lack of uniformity between Customs and
trade definitions.

Fasteners are a good case in point. Many shippers of automotive parts consider just
about any threaded fastener that can be used with a nut to be a “bolt.”

To Customs and the fastener industry, however, a threaded fastener which is used with
a nut may be a “screw” that has a duty rate which is far higher than a “bolt.”

Defenition of a Bolt and Screw

According to the Explanatory Notes for heading 7318

a bolt is designed to engage in a nut, whereas screws for metal are more usually
screwed into a hole tapped in the material to be fastened.

Screws are, therefore, generally threaded throughout their length, whereas bolts
usually have a part of the shank unthreaded.

Here are some examples of Bolt and Screw’s classification case.

Bolt:

Source : CBP
Reference : N090529
Date : 2010-01-15
HTS:7318.15.2065


Definition of a bolt:
a bolt is designed to engage in a nut, whereas screws for metal are more usually
screwed into a hole tapped in the material to be fastened.

 

Screw:

Source : CBP
Reference : NY H86189
Date : 2005-01-20
HTS:7318.15.8080


Definition of a Screw:
Screws are, therefore, generally threaded throughout their length, whereas bolts
usually have a part of the shank unthreaded.

These definitions are, however, just a few of the characteristics that need to be examined.
Both U.S. Customs and the fastener industry rely on a whole series of primary
and supplemental criteria to distinguish a bolt from a screw.

Source:Vehicles, Parts and Accessories Under the HTSUS(CBP)

It means there is a high possibility that HS (HTS) classification dichotomy occurs between
Customs and trading company when it comes to classifying “Bolt” and “Screw”.

 

Customs rulings for “Bolt” and “Screw”

Here are some other examples of customs rulings

Bolt HTS:7318.15.20

Source : CBP
Reference : NY H86191
Date : 2001-12-19
HTS:7318.15.2090

 

Source : CBP
Reference : NY F88287
Date : 2000-06-14
HTS:7318.15.2090

 

Source : CBP
Reference : NY D86443
Date : 1999-01-14
HTS:77318.15.2090

 

Source : CBP
Reference : NY G83591
Date : 2000-11-01
HTS:7318.15.20

 

Machine screws HTS:7318.15.40

Source : CBP
Reference : N126430
Date : 2010-10-14
HTS:7318.15.4000

Stud HTS:7318.15.50

Source : CBP
Reference : N034007
Date : 2008-07-31
HTS:7318.15.5060

 

Source : CBP
Reference : NY H86190
Date : 2001-12-19
HTS:7318.15.5060

 

Source : CBP
Reference : NY H86194
Date : 2001-12-19
HTS:7318.15.5060

 

Other (Screw) HS:7318.15.60

Source : CBP
Reference : NY H88741
Date : 2002-02-26
HTS:7318.15.60

Source : CBP
Reference : NY D88323
Date : 1999-02-23
HTS:7318.15.6060

 

Source : CBP
Reference : NY G87524
Date : 2001-03-12
HTS:7318.15.6060

 

Other (Screw) HS:7318.15.80

Source : CBP
Reference : NY G83167
Date : 2000-10-16
HTS:7318.15.8045

 

Complex classification case

Looks like a bolt but classified as Other(Screw)

Source : CBP
Reference : N034003
Date : 2008-07-31
HTS:7318.15.8065

Applicant of Ruling have described the item as a steel bolt that measures 6 mm in diameter.
It has a hex flange head and is 3½” long with a cone point.
It is used to connect the bushing to the front suspension lower/upper arm.

It looks like a bolt (HS:7318.15.20) but due to the use of this item , it classified as other(Screw)(HS:7318.15.8065)

Looks like a bolt but classified as Autoparts

Source : CBP
Reference : N057558
Date : 2009-5-5
HTS:8708.80

Pin Assembly is a bolt-shaped piece of zinc and chromate film-plated steel measuring approximately 5 inches in length by 1/2-inch in diameter. The piece is threaded for 21/2 inches and has a 3/4-inch bolt head. There is a 11/2-inch circular plate welded off-center to the top closest to the bolt head.

The plate is divided in half with the upper half having graduated marking cut into the metal.
This pin is designed to adjust the vehicle alignment allowing the vehicle to corner and brake more effectively.

Applicant of Ruling propose that Pin Assembly is classifiable in subheading 7318.15.
However, items that transmit motion in the sense that they perform adjustments are excluded from classification in EN heading 7318(A)(c).

Pin Assembly is “In use for the area where toe needs to be balanced.” The Road & Track Illustrated Automotive Dictionary defines “toe control” as ” … suspension geometry that
actively influences the amount of toe change at a wheel to enhance cornering or braking
ability.”

Therefor it was classified as motor vehicles : Suspension systems and parts thereof
(HS:8708.80)

 

Dichotomy between Czech and CBP

There was HS (HTS) classification dichotomy occur between Czech customs and CBP.
The subjected item was a screw that manually adjusts the height of the dipped beam
headlamp of the LED module of the headlamp.

Czech customs’s Decision

Source : European Commission
Reference : CZ40-0816-2017
Date : 2017-07-21
HTS:3926.90

General rules 1 and 6 for the interpretation of the Combined Nomenclature. Note 1 (g) to Section XVI Note 1 to Chapter 39. HS Explanatory Notes to heading 3926, point 6. Texts of codes 3926, 3926 90, 3926 90 97 of the Combined Nomenclature and Taric code 3926 90 97 90. To the applicant for the proposed code 8512 90 90 00 the goods in question can not be classified because they are not part of a headlamp which is indispensable for the function of the headlamp.

Since this ruling reffers Note 1 (g) to Section XVI Czech customs considered it as parts of general use. Therefore it’s classified as Other articles of plastics(HS:3926.90)

It means if this screw is made of steel , it would be classified as Other articles of steel
(HS:7318.15)

CBP’s decision

To the contrary of Czech Customs’s decision,CBP classified the screw as part of the motor vehicles.

Source : CBP
Reference : HQ 086396
Date : 1990-4-27
HTS:8708.99

The headlamp adjusting screw consists of a screw with a head socket (designed in the fashion as a Phillips screwdriver head) and a nylon housing.
The screw is made of metal and has dimensions of 1/4-28×2. The nylon housing is designed with an intake hole for the screw which is flanked on two sides by panels.
The panels assist in holding the screw at a fixed point.

The screw and nylon housing are fitted together permanently as one unit and are imported and sold as such. The unit is used to adjust the headlight beam of a passenger vehicle.

The subject merchandise is referred to as an adjusting screw, but is in fact a threaded mechanism that has as one of its principal components a dog-slotted screw.

The mechanism does not function as a conventional screw and nut combination does.
It operates to adjust the headlamp to the position needed. It functions as a part of the automobile to the same extent that the headlight itself does.

Consequently, the headlamp adjusting screw cannot be considered simply a screw or
similar to a screw-nut combination.

The Explanatory Notes (EN), although not dispositive, should be looked to for the proper interpretation of the HTSUSA. See 54 Fed. Reg. 35127, 35128 (August 23, 1989). Under EN 73.18(A)(c), it is explained that heading 7318 excludes threaded mechanisms

Therefore it’s classified as Parts and accessories of motor vehicles(HS:8708.99)

Subjected item was not the same but according to the explanation, they are almost the same products but two customs’s opinions are totally different.

It is not uncommon that this kind of HS (HTS) classification dichotomy occurs between
customs all over the world when it comes to Machine parts.

Therefore, before shipment, we need to survey HS classification very carefully especially “Parts”

Filed Under: Classification Example, HS Classification

How Bolt is classified under HScode

2020-06-22 By Taichi Kawazoe

In order to reduce supply chain costs, proper HS Tariff Classification needs to be
taken when it comes to adopting CTC method under the FTA.

In this article, I’m going to introduce how “Bolt” is classified by the customs across the world.
Those classifying records are retrieved from each country’s Advanced ruling database.

Those information will be a great help to understand how customs might consider classifying.

German Customs case

Reference:DE11518 / 16-1
Classified HS code : 7318.15
Issuing date : 2017-7-20
Item name:THREADED SCREWS

Made of steel screws with an approximately semi-circular head with a flat and with a non-to-the-head thread (no thread-forming screw) and a blunt threaded end. The products are used as releasable fasteners in civil aircraft.
Total length: about 41.6 mm, thread diameter: about 9.1 mm. Picture see attachment. Such products belong to “TARIC code 7318 1595 90” as “other steel, threaded screws, with heads”.

Retrieved from:European Union Website

Usually, Bolt is considered as part of general use, therefore it’s classified to HS:7318.15
However, there are some exceptions that bolt could be considered as part of particular machine.

US customs(CBP) case

Reference:N057558
Classified HS code : 8708.80
Issuing date : 2009-5-5
Item name:bolt-shaped piece of zinc

It seems like part of general use, but CBP considered it as part of Automotive suspension systems because it’s in use for the “Toe control” area where “Toe” needs to be balanced that actively influences the amount of toe change at a wheel to enhance cornering or braking ability.

Therefore it’s classified as a part of Suspension systems HS:8708.80

Retrieved from:U.S. Customs and Border Protection

The difference of opinion between Czech and US Customs

Here are some classification case studies of Headlamp adjusting screw.
Two customs have different opinions for almost same kind of item.

Czech Customs case

Customs:Czech
Reference:CZ40-0816-2017
Classified HS code : 3926.90
Issuing date : 2017-07-21
Item name:THREADED SCREWS

Retrieved from:European Union Website

According to the declared data, it is a plastic screw that manually adjusts the height of the dipped beam headlamp of the LED module of the headlamp. Screw length: approx. 56 mm.

Based on General rules 1 and 6 for the interpretation of the Combined Nomenclature. Note 1 (g) to Section XVI Note 1 to Chapter 39, it’s considered as parts of general use, therefore, it’s classified to HS:3926.90

On the other hand, US customs have a different opinion on almost the same kind of item.

US Customs case

Customs:USA
Reference:HQ 086396
Classified HS code : 8708.99
Issuing date : 1990-4-27
Item name:Headlamp adjusting screw

<no image>

The headlamp adjusting screw consists of a screw with a head socket (designed in the fashion as a Phillips screwdriver head) and a nylon housing. The screw is made of metal and has dimensions of 1/4-28×2. The nylon housing is designed with an intake hole for the screw which is flanked on two sides by panels. The panels assist in holding the screw at a fixed point.

The screw and nylon housing are fitted together permanently as one unit and are imported and sold as such. The unit is used to adjust the headlight beam of a passenger vehicle. It is designed to fit all Cadillac automobile models from 1969 to 1981 model years, except for the Eldorado.

The subject merchandise is referred to as an adjusting screw, but is in fact a threaded mechanism that has as one of its principal components a dog-slotted screw.

The mechanism does not function as a conventional screw and nut combination does. It operates to adjust the headlamp to the position needed. It functions as a part of the automobile to the same extent that the headlight itself does. Consequently, the headlamp adjusting screw cannot be considered simply a screw or similar to a screw-nut combination.

The Explanatory Notes (EN), although not dispositive, should be looked to for the proper interpretation of the HTSUSA. See 54 Fed. Reg. 35127, 35128 (August 23, 1989).

Under *EN 73.18(A)(c), it is explained that heading 7318 excludes threaded mechanisms,
sometimes called screws, used to transmit motion, or otherwise act as an active part of a machine.

In the present case, the adjusting screw is indeed threaded similar to how a conventional screw is threaded. However, it transmits motion in the sense that it adjusts the headlamp, and therefore it is considered an active part of the automobile. Thus, we cannot classify the subject article under heading 7318, considering this exclusion.

*EN 73.18(A)(c)
Threaded mechanisms, sometimes called screws, used to transmit motion, or otherwise to act as an active part of a machine, (e.g., Archimedian screws; worm mechanisms and threaded shafts for presses; valve and cock closlng mechanisms, etc.) (Chapter 84). 

Conclusion

In my opinion, US customs tend to classify “parts” as part of a particular machine while other customs classify “parts” as parts of general use.

For example, US customs tend to classify “Computer mouse pad” as part of a computer machine while other customs classify it by material based method.

Hence it is essential to know the different opinions between the US and the other countries, when it comes to establishing a supply chain network.

Filed Under: Classification Example, HS Classification

How “Fuel injector” is classified under HS code

2020-03-29 By Taichi Kawazoe

In this article, I’m going to introduce how “Fuel injector” is classified by customs across the world.
Those classifying records are retrieved from each country’s Advanced ruling database.

Those information will be a great help to understand how customs might consider classifying.
And also be a great help to reduce supply chain costs such as adopting CTC method under the FTA and smooth customs clearance procedures.

German Customs case

Reference:DE16784/12-1
Classified HS code : 8409.91
Issuing date : 2012-10-30

Item description:
High-pressure injector – from a specifically shaped valve housing with a multi-hole injector, injector nozzle needle, electrical connector and a connector for the fuel high-pressure line, with an injection pressure of 150/200 bar – for installation in an internal combustion engine with spark-ignition(petrol engine), – for injecting under pressurized fuel into the combustion chamber.”Part suitable for use solely for internal combustion spark ignition engines of heading 8407″

 

 

 

 

 

 

 

 

Retrieved from: European Union Website

It’s classified to HS 8409.91 because it was considered that Injector is suitable for use solely for internal combustion spark ignition engines(HS:8407)

Japan Customs case

Reference:116005299
Classified HS code : 8409.91
Issuing date : 2016-11-11

Same as German customs It’s classified to HS 8409.91 because it was considered that Injector is suitable for use solely for internal combustion spark ignition engines(HS:8407)

Item description:
Structure of fuel injector used for automotive gasoline engine:Filter made of 5 kinds of main parts built into the main body(filter)Fuel filtering material located at fuel inlet(spring)When the injection port is fully closed. the needle valve is moved downward (solenoid coil)Electromagnetic coil(needle valve)Valve(nozzle plate)for opening and closing the injection port by suction force of the solenoid coil Injection port for atomizing fuel Characteristics:It consists of a cylindrical body.Size:Maximum diameter 15 mm. length 85 mm Function:A solenoid coil is energized by an ejection signal(electric signal)from the ECU and electromagnetic force is applied to the needle valve Is aspirated and rises and the injection port is opened by.applications boosted fuel is atomized from the injection hole of the nozzle plate injection:using packaging as a fuel injection system of an automobile engine:60 / box

This product is attached to the intake port of a piston type gasoline engine for automobile.receives an electric signal from the ECU.atomizes and injects the pressurized fuel. Because this product is recognized as a part to be used exclusively or mainly by the engine from its properties and functions etc..the tariff rate table part 16(b).item 84.09 of the tariff rate table and item 84 According to the provision of paragraph 09.it is classified as above.

US Customs case

Reference:N272053
Classified HS code : 8481.80
Issuing date : January 28, 2016

To the contrary of German and Japanese customs decision, US customs classified Injector as Valves(HS:8481.80)

Item description:
The item under consideration is a high-pressure fuel injector, model number 35310-2GGA0. The fuel injector is attached to the fuel line of a motor vehicle and is designed to function as a valve. Once activated by the Electronic Control Unit, the solenoid armature and the valve needle incorporated into the fuel injector move upwards. This allows fuel to be sprayed through the valve seat openings and into the combustion chamber of a gasoline engine for brief periods of time. Once the fuel has been sprayed, the fuel injector’s compression spring returns the valve ball to the valve seat and seals the valve seat openings.

2015 Hyundai Sonata Throttle Body & Injector

Retrieved from:HyundaiPartsDeal.com

Importer insisted that “Fuel injector” should be classified as “Engine parts”(HS:8409) but
US Customs decided that “Fuel injector” should be classified as “Valves”(HS:8481) because US customs consider “Fuel injector” is nothing other than “Valves”

 

Conclusion

there is a difference in classification opinion between US customs and German, Japanese customs.
This kind of incident is not uncommon all over the world even though the 6digit HS code is a global common system.

It must be a smart way to check each country’s opinion from the Advanced ruling database before export or import cargo to avoid this kind of conflict.

Filed Under: Classification Example, HS Classification

How “Locking pliers” is classified under HS code

2020-03-28 By Taichi Kawazoe

In order to reduce supply chain costs, proper HS Tariff Classification needs to be
taken when it comes to adopting CTC method under the FTA.

In this article, I’m going to introduce how “Locking pliers” is classified by the customs across the world.
Those classifying records are retrieved from each country’s Advanced ruling database.

Those information will be a great help to understand how customs might consider classifying.

Court case in the US

There was a conflict between importer and customs in court.
The issue was how to classify “Locking pliers” under HS code.

Importer insisted that “Locking pliers” should be classified as “Pliers”(HS:8203) but
Customs insisted that “Locking pliers” should be classified as “wrenches”(HS:8204)

In this case, the definition of “Pliers”(HS:8203) and “wrenches”(HS:8204) is important.
Here is an example classification record of “Pliers” and “wrenches”

Plier Classification record(HS:8203)

Pliers with specially shaped gripping jaws (working part). Made of chrome vanadium steel, fully hardened, powder-coated. Pliers have a slider for adjusting the jaw opening (several settings) and elongated handles, with double-PVC coated handles and a non-slip layer. Used for plumbing and general construction works.

Retrieved from:European Union Website

Wrenches Classification record(HS:8204)

Retrieved from:European Union Website

On the metric scale applied to the precision jaws.forged and hardened worm gear mechanism (forged and hardened).The key is made of chrome vanadium steel

 

The subject of the issue

The item below is the subject of the issue.

Retrieved from:Customs Bulletin

This “Locking pliers” has both essential characters of “Pliers” and “wrenches”.
It must be confusing how to classify.

Court decision

In the end, “Locking pliers” was classified as “Pliers”(HS:8203) not “wrenches”(HS:8204)

Below quoted from Customs Bulletin

Customs classified these tools as “wrenches” under heading 8204 of the Harmonized Tariff Schedule of the United States (“HTSUS”), and denied Importer’s protests to classify them as “pliers” under heading 8203,

The importer then filed suit in the Court of International Trade(CIT), challenging customs classification of the merchandise. The CIT denied customs motion for summary judgment that the tools are properly classified as wrenches under heading 8204, HTSUS, and granted Importer’s motion for summary judgment that the tools are properly classified as pliers under heading 8203, HTSUS.

At the CIT, Customs relied on dictionary definitions in support of its argument that a wrench is a “tool used to grasp an object and then turn or twist it (i.e., apply torque).”

The CIT found that although a wrench may be designed for a particular use, nothing about the tariff term for “wrenches” suggests a type of use such that the court should declare the tariff term one controlled by use.

Therefore, the CIT concluded that “wrench” is an eo nomine term, not one controlled by use. It rejected Customs’s proffered definition and defined a wrench referring only to its physical attributes as a “hand tool that has a head with jaws or socks having surfaces adapted to snugly or exactly fit and engage the head of a fastener (as a bolt-head or nut) and a singular handle with which to leverage hand pressure to turn the fastener without damaging the fastener’s head.”

The CIT held that the products under consideration were not wrenches because they incorporate two handles and jaws that do not necessarily snugly fit the head of a fastener.

Filed Under: Classification Example, HS Classification

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