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Iran Customs Broker Exam study materials
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Iran Customs Broker Exam practice questions

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Question 1Customs Law and Implementing Regulations

Under the Iranian Customs Affairs Law, which body is the highest authority for approving customs regulations and tariffs?

  1. The Ministry of Economic Affairs and Finance
  2. The Customs Administration of the Islamic Republic of Iran
  3. The Islamic Consultative Assembly (Parliament) Correct answer.
  4. The Council of Ministers

Explanation

Customs duties and tariff schedules in Iran are established by law passed by the Islamic Consultative Assembly, typically through the annual budget law and the Customs Law. The Customs Administration implements but does not legislate tariffs. The Council of Ministers issues implementing regulations subordinate to statute.

Question 2Customs Law and Implementing Regulations

Which document is the primary legal instrument that sets out the general rules and procedures of Iranian customs, including definitions of declarants and customs procedures?

  1. The Direct Taxation Act
  2. The Foreign Exchange Transaction Law
  3. The Customs Affairs Law and its Implementing Regulations Correct answer.
  4. The Commercial Code

Explanation

The Customs Affairs Law together with its Implementing Regulations governs customs procedures, declarant obligations, clearance, and penalties. The other statutes regulate different matters such as currency, commercial transactions, or direct taxes and do not establish customs procedure.

Question 3Customs Law and Implementing Regulations

In Iranian customs terminology, who is defined as the 'declarant' (Ezharnkonandeh)?

  1. The person who submits the customs declaration in their own name or through a licensed representative Correct answer.
  2. The bank that processes the import payment
  3. Any carrier transporting goods across the border
  4. The owner of the warehouse where goods are stored

Explanation

The declarant is the party who lodges the customs declaration, either personally or through a licensed customs broker acting as representative. Carriers, warehouse owners, and banks may have related duties but are not the declarant by definition.

Question 4Customs Law and Implementing Regulations

What is the standard function of a licensed customs broker (Karkon-e Gomrok) in Iran?

  1. To issue certificates of origin for exported goods
  2. To inspect goods for health standards on behalf of the ministry of health
  3. To act on behalf of importers and exporters in preparing and submitting customs declarations and completing clearance formalities Correct answer.
  4. To set the customs duty rates for imported goods

Explanation

A licensed customs broker represents traders before customs, prepares and submits declarations, and handles clearance formalities. Brokers do not set duty rates, perform health inspections, or issue certificates of origin, which are functions of other authorities.

Question 5Customs Law and Implementing Regulations

Which of the following best describes 'customs territory' under Iranian customs law?

  1. The entire territory of the country including territorial waters and free zones unless otherwise provided Correct answer.
  2. Only the areas designated as special economic zones
  3. The maritime borders alone
  4. Only the physical land area of customs offices

Explanation

The customs territory generally comprises the whole national territory, including territorial waters, subject to special regimes such as free zones. Customs offices and special economic zones are parts of that territory, not its whole definition.

Question 6Customs Law and Implementing Regulations

Goods entering a free trade-industrial zone in Iran are, as a general rule, treated how with respect to customs duties?

  1. Exempt from customs duties while within the zone, with duties applicable if later introduced into the mainland Correct answer.
  2. Subject to full import duties immediately upon entry
  3. Exempt permanently regardless of later movement into the mainland
  4. Subject to a flat 50 percent duty at entry

Explanation

Free zones are outside the customs duty regime while goods remain within them; duties become due if goods are subsequently transferred into the mainland customs territory. Entry into the zone itself does not trigger full duties, and the exemption is not permanent if goods leave the zone.

Question 7Customs Law and Implementing Regulations

Under the customs regime for temporary import, goods brought in for a specified purpose and period must generally be:

  1. Sold in the domestic market without further formality
  2. Permanently transferred to a third party
  3. Re-exported within the authorized period, with possible extension and payment of a guarantee Correct answer.
  4. Abandoned to customs after arrival

Explanation

Temporary import allows goods to enter for a limited purpose and period, secured by a guarantee, and requires re-export within the authorized time unless the regime is converted. Sale, permanent transfer, or abandonment would require separate treatment and payment of duties.

Question 8Customs Law and Implementing Regulations

What is the primary purpose of the customs value (CIF value) declared for imported goods?

  1. To serve as the basis for calculating ad valorem customs duties and related charges Correct answer.
  2. To calculate the carrier's freight invoice
  3. To set the retail price in the domestic market
  4. To determine the broker's commission

Explanation

Customs value is the taxable base for ad valorem duties and related levies, generally built on the transaction value including freight and insurance to the border (CIF). It does not set domestic retail prices or broker commissions.

Question 9Customs Law and Implementing Regulations

When the transaction value of imported goods cannot be determined, which approach does customs valuation typically fall back to?

  1. The domestic retail price in the exporting country
  2. An arbitrary estimate set by the broker
  3. Sequential alternative methods such as value of identical or similar goods, then deductive or computed value Correct answer.
  4. The value declared by the carrier in the bill of lading only

Explanation

Valuation follows a hierarchy: transaction value first, then value of identical or similar goods, deductive value, computed value, and finally a fallback method. Retail prices abroad, broker estimates, or bill of lading figures alone are not the prescribed basis.

Question 10Customs Law and Implementing Regulations

Which of the following is generally included in the customs value of imported goods?

  1. Domestic transport costs after clearance
  2. The importer's profit margin after resale
  3. The importer's domestic marketing expenses
  4. The cost of freight and insurance up to the point of entry Correct answer.

Explanation

Customs value on a CIF basis includes the price of goods plus freight and insurance to the border. Domestic marketing, post-clearance transport, and resale profit occur after importation and are not part of customs value.

Question 11Customs Law and Implementing Regulations

What is the function of a customs guarantee (Tazmin) in Iranian customs practice?

  1. To certify the origin of goods
  2. To waive all duties permanently
  3. To secure potential customs duties and liabilities pending final determination or during temporary regimes Correct answer.
  4. To replace the customs declaration entirely

Explanation

A guarantee, such as a bank guarantee or cash deposit, secures the state against unpaid duties while goods are under a temporary regime or pending final assessment. It does not certify origin, replace the declaration, or waive duties.

Question 12Customs Law and Implementing Regulations

Which term describes the process by which imported goods are released from customs control after duties and formalities are completed?

  1. Drawback
  2. Transit
  3. Warehousing
  4. Clearance (Tarkhis) Correct answer.

Explanation

Clearance (Tarkhis) is the release of goods from customs control after duties are paid and formalities satisfied. Transit concerns movement under bond, warehousing concerns storage, and drawback concerns refund of duties on re-export.

Question 13Customs Law and Implementing Regulations

What is a customs transit procedure used for?

  1. Permanent import of goods for domestic sale
  2. Storage of goods indefinitely without documentation
  3. Refund of duties on exported goods
  4. Movement of goods under customs control from one customs office to another without payment of duties at the point of departure Correct answer.

Explanation

Transit allows goods to move under customs control, often under guarantee, between customs points without duties being collected at the start. It is not a permanent import, refund, or undocumented storage regime.

Question 14Customs Law and Implementing Regulations

Which regime allows imported goods to be stored in a customs warehouse with duties suspended until they are cleared or re-exported?

  1. Free zone entry
  2. Drawback
  3. Temporary import for processing
  4. Customs warehousing (Anbar-e Gomroki) Correct answer.

Explanation

Customs warehousing permits storage of goods with duties suspended until clearance or re-export. Temporary import for processing involves manufacturing, free zones are separate territorial regimes, and drawback is a refund mechanism.

Question 15Customs Law and Implementing Regulations

A drawback regime in customs is best described as:

  1. A refund of duties paid on imported inputs that are subsequently exported as finished goods Correct answer.
  2. A discount on freight charges
  3. A penalty for late declaration
  4. An exemption from value added tax only

Explanation

Drawback provides for refund of import duties on inputs used in goods that are later exported, supporting export competitiveness. It is not a penalty, freight discount, or mere VAT exemption.

Question 16Customs Law and Implementing Regulations

Which document generally serves as the official form on which the importer or broker declares the particulars of imported goods to customs?

  1. The customs declaration (Ezharnameh) Correct answer.
  2. The certificate of origin
  3. The bill of lading
  4. The commercial invoice

Explanation

The customs declaration is the formal statement of goods particulars submitted to customs. The bill of lading, invoice, and certificate of origin are supporting documents but not the declaration itself.

Question 17Customs Law and Implementing Regulations

Under Iranian customs rules, what is the general time limit concept for lodging a declaration after goods arrive at a customs point?

  1. Declaration must be filed before the vessel departs the foreign port
  2. There is no time limit at all
  3. Goods may be declared only after one year
  4. Goods must be declared within a prescribed period, after which storage charges and possible legal consequences apply Correct answer.

Explanation

Customs law prescribes a period within which goods must be declared; exceeding it triggers storage fees and possible legal measures such as sale of abandoned goods. There is no unlimited period, and declaration occurs after arrival, not before foreign departure.

Question 18Customs Law and Implementing Regulations

Which of the following best describes 'abandoned goods' in customs terms?

  1. Goods in transit between customs offices
  2. Goods temporarily stored in a free zone
  3. Goods declared but awaiting valuation
  4. Goods not declared or cleared within the statutory period, which customs may sell under legal procedures Correct answer.

Explanation

Goods left undeclared or uncleared beyond the statutory period may be treated as abandoned and disposed of through legal sale procedures after notice. Goods awaiting valuation, in transit, or in free zones are not abandoned by definition.

Question 19Customs Law and Implementing Regulations

What is the general rule regarding the classification of goods for customs purposes?

  1. Classification is based on the country of origin only
  2. Goods are classified according to the customs tariff nomenclature based on their objective characteristics Correct answer.
  3. The importer may freely choose any heading
  4. Classification depends on the broker's preference

Explanation

Classification follows the tariff nomenclature, which is based on objective characteristics of the goods such as composition and function. Importers and brokers cannot freely pick a heading, and origin affects duty preferences, not classification.

Question 20Customs Law and Implementing Regulations

If customs disputes the declared tariff classification of goods, what is the typical first step available to the importer?

  1. Immediate appeal to the Supreme Court
  2. Refusal to pay any duties
  3. Submission of a written objection to the customs office and use of the internal review or dispute-resolution procedure Correct answer.
  4. Re-export without any documentation

Explanation

Disputes are first raised through written objection and the internal review or dispute-resolution bodies established under customs law, with further appeal to competent courts only afterward. Direct resort to the Supreme Court or unilateral refusal is not the prescribed first step.

Question 21Customs Law and Implementing Regulations

Which body is generally competent to hear appeals against decisions of customs dispute-resolution committees in Iran?

  1. The customs broker association
  2. The Administrative Justice Court or competent judicial authority, depending on the subject Correct answer.
  3. The chamber of commerce
  4. The Central Bank

Explanation

Appeals against customs decisions typically go to the Administrative Justice Court or other competent judicial bodies, depending on the nature of the decision. Broker associations, the Central Bank, and chambers of commerce do not hear such appeals.

Question 22Customs Law and Implementing Regulations

What is the general consequence of failing to pay customs duties within the prescribed period?

  1. Liability for late payment penalties and possible legal enforcement measures Correct answer.
  2. Automatic waiver of the duties
  3. Conversion of the goods into free zone status
  4. Immediate criminal conviction without any process

Explanation

Late payment of customs duties generally triggers late-payment penalties and enforcement measures under customs law. Duties are not waived, criminal conviction requires due process, and free zone status is not an automatic consequence.

Question 23Customs Law and Implementing Regulations

Which of the following is a key obligation of a licensed customs broker toward the customs administration?

  1. Maintaining accurate records and submitting truthful declarations on behalf of clients Correct answer.
  2. Setting duty rates for their clients
  3. Issuing import licenses to clients
  4. Guaranteeing the solvency of every client

Explanation

Brokers must submit truthful declarations and maintain proper records, and they bear responsibility for the accuracy of what they file. They do not guarantee client solvency, set duty rates, or issue import licenses.

Question 24Customs Law and Implementing Regulations

What is the purpose of a customs bond or guarantee in the transit regime?

  1. To certify the quality of goods
  2. To ensure that duties will be paid if goods are not delivered to the destination customs office as declared Correct answer.
  3. To replace the transit declaration
  4. To reduce the freight cost

Explanation

A transit guarantee protects revenue by ensuring duties can be recovered if goods deviate from the declared route or are not delivered. It does not certify quality, reduce freight, or substitute for the declaration.

Question 25Customs Law and Implementing Regulations

Which of the following best describes the relationship between the Customs Affairs Law and its Implementing Regulations?

  1. The two are unrelated instruments
  2. The Implementing Regulations override the Law in case of conflict
  3. The Implementing Regulations are optional guidance with no legal force
  4. The Implementing Regulations detail how the Law is applied and must remain consistent with it Correct answer.

Explanation

Implementing Regulations elaborate procedures for applying the statute and must conform to it; in conflict, the statute prevails. They are legally binding, not optional, and are directly tied to the Law.

Question 26Customs Law and Implementing Regulations

Under Iranian customs law, which person is legally regarded as the declarant of imported goods before the customs administration?

  1. The importer or the licensed broker acting on the importer's behalf Correct answer.
  2. The carrier that physically transports the goods to the border
  3. The warehouse operator where the goods are temporarily stored
  4. The foreign exporter who shipped the goods

Explanation

The declarant is the person who submits the customs declaration to customs, which is the importer or a licensed broker authorized to act for the importer. The carrier, warehouse operator, and foreign exporter have other roles but do not assume the declarant's legal position.

Question 27Customs Law and Implementing Regulations

In Iranian customs practice, the tariff classification of goods is determined primarily by reference to which instrument?

  1. The commercial invoice description supplied by the seller
  2. The shipping manifest prepared by the carrier
  3. A bilateral trade agreement between the exporter and importer
  4. The customs tariff schedule and its explanatory notes based on the harmonized system Correct answer.

Explanation

Classification follows the legally adopted customs tariff, which is structured on the harmonized system and read with its section and chapter notes and explanatory materials. Invoices and manifests are evidence of the transaction but do not themselves determine the tariff heading.

Question 28Customs Law and Implementing Regulations

A broker discovers after release that the declared quantity of an imported consignment was overstated, so duties paid exceeded what was legally due. What remedy is generally available under Iranian customs rules?

  1. A refund claim submitted to customs within the prescribed period with supporting documents Correct answer.
  2. An automatic credit applied to the next import declaration without any request
  3. A waiver of duties on the next three consignments
  4. A reduction of the broker's guarantee amount

Explanation

Where duties have been overpaid, the law provides for a refund on request, supported by documents and made within the prescribed time limit. Refunds are not granted automatically and must be claimed through the proper procedure.

Question 29Customs Law and Implementing Regulations

Which statement best describes the legal effect of the Implementing Regulations in relation to the Customs Affairs Law?

  1. They have the same status as international trade treaties
  2. They apply only to brokers and not to importers
  3. They replace the Law whenever a conflict arises
  4. They set out the detailed procedures for applying the Law and cannot contradict it Correct answer.

Explanation

Implementing Regulations are issued to operationalize the Customs Affairs Law by prescribing detailed procedures. They derive their authority from the Law and are invalid to the extent they conflict with it.

Question 30Customs Law and Implementing Regulations

An importer wishes to challenge a customs assessment before pursuing judicial remedies. Which avenue is generally provided first under Iranian customs dispute procedures?

  1. Submission of a written objection to the competent customs dispute committee Correct answer.
  2. Referral to the chamber of commerce for binding arbitration
  3. A petition to the foreign supplier to reissue the invoice
  4. Direct filing in the administrative court without any prior customs review

Explanation

Customs disputes are first heard by the specialized customs dispute committees, which review the objection and evidence. Only after exhausting that route can the matter proceed to judicial review.

Question 31Customs Law and Implementing Regulations

Which of the following best describes the customs regime of temporary import for processing (active improvement)?

  1. Goods are stored indefinitely without any obligation to re-export
  2. Goods are imported, processed or repaired, and then re-exported with duty suspended or adjusted on the value added Correct answer.
  3. Goods are exported first and later returned to Iran duty free
  4. Goods are sold in the domestic market immediately upon arrival with full duty paid

Explanation

Under the processing regime, goods enter temporarily for manufacture or repair and are later re-exported, with duties suspended or calculated on the value added during processing. The regime depends on the re-export obligation, not on domestic sale.

Question 32Customs Law and Implementing Regulations

A consignment arrives at a customs office and the importer cannot pay the duties immediately. Which mechanism allows release while securing the customs debt?

  1. Providing a bank guarantee or cash deposit accepted by customs Correct answer.
  2. Transferring ownership to the carrier
  3. Abandoning the goods to customs to avoid payment
  4. Requesting deletion of the declaration from the system

Explanation

Customs accepts a guarantee, such as a bank guarantee or cash deposit, to secure the duty obligation and permit release before final payment. Abandonment and deletion do not secure the debt and have different legal consequences.

Question 33Customs Law and Implementing Regulations

Which of the following is a recognized ground on which customs may initiate a post-clearance audit of an importer's declarations?

  1. Indicators of undervaluation or misclassification revealed by risk analysis Correct answer.
  2. Random selection of all importers every month regardless of risk
  3. A request from the foreign supplier to verify the buyer
  4. The importer's decision to change its broker

Explanation

Post-clearance audit is risk-based and is triggered where indicators suggest incorrect valuation, classification, or origin. It is not a blanket monthly exercise and is unrelated to supplier requests or broker changes.

Question 34Customs Law and Implementing Regulations

What is the legal significance of the customs value declared for goods subject to an ad valorem duty?

  1. It is the tax base on which the ad valorem duty is calculated Correct answer.
  2. It determines only the storage charges at the port
  3. It is a commercial estimate that customs may ignore entirely
  4. It fixes the resale price of the goods in the domestic market

Explanation

For ad valorem duties the customs value is the base to which the duty rate is applied, so its accuracy directly determines the duty payable. It does not set domestic resale prices or storage charges.

Question 35Customs Law and Implementing Regulations

An importer claims preferential tariff treatment under a trade agreement. Which element is most directly required to support that claim at the time of declaration?

  1. A statement from the port authority on berthing dates
  2. A letter from the importer's bank confirming payment
  3. A certificate of origin issued in accordance with the relevant agreement Correct answer.
  4. A copy of the vessel's insurance policy

Explanation

Preferential treatment depends on proof that the goods meet the origin rules of the applicable agreement, normally evidenced by a conforming certificate of origin. Payment records, insurance, and berthing data do not establish origin.

Question 36Customs Law and Implementing Regulations

Which conduct by a licensed customs broker would most clearly breach the broker's duty of accuracy toward customs?

  1. Advising the importer on the documents needed for clearance
  2. Declaring a lower tariff heading than the goods actually require to reduce duty Correct answer.
  3. Attending a customs office hearing on the importer's behalf
  4. Maintaining records of declarations for the required period

Explanation

A broker must declare goods truthfully, including the correct tariff heading and value. Deliberately under-declaring the heading to lower duty is a misdeclaration that exposes the broker to sanctions.

Question 37Customs Law and Implementing Regulations

Goods are moved under a customs transit procedure from the border to an inland customs office. What is the principal obligation of the transit operator?

  1. Obtaining a new certificate of origin at the destination
  2. Selling the goods at the destination to recover costs
  3. Paying the full duty at the border before movement begins
  4. Delivering the goods intact to the destination customs office within the prescribed period Correct answer.

Explanation

Transit allows suspension of duties while goods move under customs control, on condition that they reach the destination office intact and within the set time. The duty is not paid at the outset, and no sale or re-origination is involved.

Question 38Customs Law and Implementing Regulations

Under the customs warehousing regime, when does the liability to pay import duty generally crystallize?

  1. When the goods are removed from the warehouse for home use Correct answer.
  2. When the warehouse operator files an annual report
  3. At the moment the goods enter the warehouse
  4. When the goods are first insured

Explanation

In a customs warehouse duties are suspended while goods are stored, and liability arises when the goods are entered for home consumption or otherwise released from the regime. Entry into the warehouse and administrative reports do not trigger the duty.

Question 39Customs Law and Implementing Regulations

Which of the following best describes the customs treatment of samples of negligible value imported for trade promotion?

  1. They are treated as prohibited goods
  2. They must be placed in a customs warehouse for one year
  3. They are always subject to the full ordinary duty rate
  4. They may qualify for duty exemption or a simplified procedure under the tariff and regulations Correct answer.

Explanation

The tariff and implementing regulations commonly provide exemptions or simplified clearance for samples of negligible value intended for promotion. Such goods are neither automatically fully dutiable nor prohibited.

Question 40Customs Law and Implementing Regulations

A broker files a declaration containing an inadvertent clerical error that does not affect the duty payable. How should this generally be handled under customs rules?

  1. The declaration is void and the goods are confiscated
  2. The importer must re-export the goods and re-import them
  3. The error may be corrected through the prescribed amendment procedure without penalty where it is shown to be clerical Correct answer.
  4. The broker's license is automatically revoked

Explanation

Customs law distinguishes clerical errors that do not affect duty from substantive misdeclaration and allows correction through the amendment procedure. Automatic confiscation, license revocation, or re-export are disproportionate and not the rule for harmless clerical mistakes.

Question 41Customs Tariff, Goods Classification, and HS Nomenclature

In the Harmonized System, the classification of goods is determined primarily by which of the following?

  1. The tariff classification chosen by the importing country's customs at its own discretion
  2. The price declared for customs valuation purposes
  3. The terms of the headings and any relevant Section or Chapter Notes Correct answer.
  4. The commercial invoice description supplied by the exporter

Explanation

The General Interpretative Rules establish that classification is legally determined by the wording of the headings and any relative Section or Chapter Notes. Other materials such as invoices or valuation data do not override the legal text of the nomenclature.

Question 42Customs Tariff, Goods Classification, and HS Nomenclature

How many digits does a heading number contain in the Harmonized System?

  1. Ten
  2. Six
  3. Four Correct answer.
  4. Eight

Explanation

The HS is structured so that a heading is identified by a four-digit number, with the first two digits denoting the chapter. Subheadings add further digits beyond the heading level.

Question 43Customs Tariff, Goods Classification, and HS Nomenclature

A shipment of fresh apples is being classified. Under the HS structure, the product falls in Chapter 8. Which two-digit chapter number covers edible fruit and nuts?

  1. Chapter 9
  2. Chapter 7
  3. Chapter 12
  4. Chapter 8 Correct answer.

Explanation

Chapter 8 of the HS covers edible fruit and nuts, including fresh apples under heading 08.08. Chapter 7 covers edible vegetables, and Chapter 9 covers coffee, tea and spices.

Question 44Customs Tariff, Goods Classification, and HS Nomenclature

Which General Interpretative Rule provides that goods not classifiable under GIR 1 are classified under the heading appropriate to the goods to which they are most akin?

  1. GIR 2(a)
  2. GIR 5
  3. GIR 3(b)
  4. GIR 4 Correct answer.

Explanation

GIR 4 is the residual rule applied when GIR 1 through 3 do not resolve classification; it directs classification under the heading for the goods to which the item is most akin. It is applied only after the earlier rules fail.

Question 45Customs Tariff, Goods Classification, and HS Nomenclature

What is the primary purpose of the General Interpretative Rules?

  1. To provide a uniform legal method for classifying goods in the nomenclature Correct answer.
  2. To define the customs value of imported merchandise
  3. To set the rate of customs duty for each product
  4. To establish rules of origin for preferential trade

Explanation

The GIR form the legal framework for interpreting the nomenclature and ensure uniform classification across countries. Duty rates, valuation and origin are governed by separate provisions.

Question 46Customs Tariff, Goods Classification, and HS Nomenclature

A consignment consists of unassembled components of a machine presented together for assembly. Which rule most directly addresses classification of such goods?

  1. GIR 3(c)
  2. GIR 5(b)
  3. GIR 2(a) Correct answer.
  4. GIR 6

Explanation

GIR 2(a) extends a heading to cover incomplete or unfinished articles presented unassembled or disassembled, provided they have the essential character of the complete article. GIR 5(b) concerns packing containers, and GIR 3(c) concerns the last-in-numerical-order rule.

Question 47Customs Tariff, Goods Classification, and HS Nomenclature

Which of the following is the correct term for the subdivisions that appear below a heading in the HS nomenclature?

  1. Sections
  2. Notes
  3. Chapters
  4. Subheadings Correct answer.

Explanation

The HS hierarchy runs from Sections to Chapters to headings and then to subheadings. Subheadings are the divisions below the four-digit heading level.

Question 48Customs Tariff, Goods Classification, and HS Nomenclature

A chemical product is prima facie classifiable under two headings. Applying GIR 3(a), how should it be classified?

  1. Under the heading that appears last in numerical order
  2. Under the heading providing the most specific description Correct answer.
  3. Under the heading covering the constituent giving essential character
  4. Under the heading selected by the importer

Explanation

GIR 3(a) gives priority to the heading that provides the most specific description over headings that are more general. Only if specificity does not resolve the conflict do the later rules apply.

Question 49Customs Tariff, Goods Classification, and HS Nomenclature

A shipment contains sets of goods put up for retail sale, each set consisting of a tool, a small bottle of lubricant and a carrying pouch. Which rule governs classification of the set?

  1. GIR 3(b) Correct answer.
  2. GIR 6
  3. GIR 5(a)
  4. GIR 1

Explanation

GIR 3(b) governs goods put up in sets for retail sale, classifying them by the component that gives the set its essential character. GIR 5(a) concerns cases and containers, and GIR 1 is the initial rule.

Question 50Customs Tariff, Goods Classification, and HS Nomenclature

A manufacturer imports a machine without its motor, and the machine cannot function without the motor but is otherwise complete. Under GIR 2(a), how is the machine classified?

  1. As parts under a separate parts heading, because the motor is missing
  2. Under GIR 4 by analogy to a similar machine
  3. As the complete machine, because it has the essential character of the finished article Correct answer.
  4. Under the heading for the motor alone

Explanation

GIR 2(a) treats an incomplete or unfinished article as complete if it has the essential character of the finished article. The absence of a component does not defeat classification as the complete article when essential character is present.