Tariff Classification and the Harmonized System
Structure of the HS
Classification runs through the General Rules of Interpretation (GRI 1–6). GRI 1 governs by heading text and section/chapter notes; notes can exclude goods that appear to fit a heading. GRI 2 covers incomplete or unassembled goods and mixtures. GRI 3 applies to goods classifiable under two or more headings, using (a) specific over general, (b) essential character, then (c) last in numerical order. GRI 4 handles goods not otherwise provided for by analogy. GRI 5 covers cases and packing. GRI 6 extends the analysis to subheadings at the same level.
Concepts to master
Section and chapter notes override headings; the Explanatory Notes are interpretive guidance, not binding law. Understand the difference between a binding ruling and informal advice, and how a classification change affects duty rates and preferential treatment.
Traps
Candidates skip the notes and classify on heading text alone. Another trap is applying GRI 3(b) essential character before checking whether GRI 3(a) resolves the conflict. Also watch for sets put up for retail sale versus goods merely shipped together, and for parts versus accessories.
Rule of thumb
Work top-down: heading text, then notes, then GRI 2–5, then subheading at GRI 6. Never jump to a subheading before the heading is settled.
Worked example
A shipment contains a tool and a fitted carrying case sold together. The case is classified with the tool under GRI 5(a) if it is specially shaped and fitted, is of a kind normally sold with the article, and is presented with it.