Lukani Co. LTD

LIBRARY- RULES OF CLASSIFICATION

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:

Rule 3a-MOST SPECIFIC .

Rule 3b-ESSENTIAL CHARACTER .

Rule 3c- LAST IN NUMERICAL ORDER .

Rule 3a: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..

Explanation: Rule 3 (a) states that where 2 or more Headings seem to apply, the one which provides the most specific description of the product in question should be used. This means that a Heading which names the actual product should be used in preference to one which only names a category to which the product could belong. Similarly, a Heading that describes the whole product should be used in preference to one which describes part of it. However, where two Headings both only describe part of the product, this rule cannot be used to tell which one to use even if one seems more specific or detailed than the other..

Mint tea is not stated specifically, as a product, in the Tariff. Although the product descriptions available are mint and tea, the importer must classify mint tea under the appropriate tea Heading because it provides the most specific product description and mint is only the flavour of the tea

MIXTURES
3 (a)MOST SPECIFIC
GIR 3 (b) ESSENTIAL CHARACTER
GIR 3 (c)LAST IN NUMERICAL ORDER

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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 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.

Explanation: Rule 3 (b) applies to mixtures, composite goods and sets that cannot be classified by use of the previous Rules. These should be classified as if they consisted of the material or component which gives them their essential character.

JExample: An importer bringing in "liquor gift sets" (that include the bottle of liquor and glasses) must classify the goods under the appropriate liquor Heading. The essential character of the item is the liquor itself and not the glasses contained within the set.r.

MIXTURES
3 (a)MOST SPECIFIC
GIR 3 (b) ESSENTIAL CHARACTER
GIR 3 (c)LAST IN NUMERICAL ORDER

Rule 3 (c) is for use in cases in which a good seems to fit in more than one Heading and the essential character cannot be determined. In this case, the product should be classified under the Heading which occurs last in numerical order.

Explanation: Rule 3 (c) is for use in cases in which a good seems to fit in more than one Heading and the essential character cannot be determined. In this case, the product should be classified under the Heading which occurs last in numerical order.

Exemple: A gift set which includes socks (Heading number 6115) and ties (Heading number 6117) cannot be classified by the previous rule since neither item gives the gift set its essential character. The gift set must be classified under the Heading number for ties which is the Heading that occurs last in numerical order.

Rule 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.

Explanation Rule 4: This is a "last resort" rule, most often used with new products

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

Rule 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;

Explanation- Rule 3a

Rule 5(b) Subject to the provisions of Rule 5 (a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision does not apply when such packing materials or packing containers are clearly suitable for repetitive use

Rule 5

Explanation: Rule 5 specifies how to classify containers. Rule 5 (a) deals with containers which: • are shaped or fitted for the article they will contain, • are suitable for long-term use, • protect the article when not in use, • are of a kind normally sold with such articles, • are presented with the articles they are designed to contain. Containers which have these characteristics can be classified with the products which they contain. However, in cases where the container gives the product its essential character, it would be the container which would have to be classified.

Rule 6: 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 purpose of this Rule the relative Section and Chapter Notes also apply, unless the context otherwise requires.

SECTION XVI - SECTION NOTES 4. Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping by transmission devices, by electric cables or by other devices) intended to contribute together to clearly defined function covered by one of the headings in chapter 84 or chapter 85 then the whole falls to be classified in the heading appropriate to that function.