Tariff Classification and the Harmonized System
Tariff classification is the first determinant of duty, origin rules and controls. The exam tests the General Rules for the Interpretation of the Harmonized System, section and chapter notes, and the difference between the six-digit international subheading and national tariff lines.
The GRI sequence
- GRI 1: classification is determined by heading text and any relative section or chapter notes. Most goods stop here.
- GRI 2(a): incomplete or unassembled goods with the essential character of the complete article; GRI 2(b): mixtures and composite goods.
- GRI 3: goods classifiable under two or more headings. Use 3(a) most specific description, then 3(b) essential character, then 3(c) last in numerical order.
- GRI 4: goods not otherwise classifiable go to the heading for goods most akin.
- GRI 5: cases, packing and containers.
- GRI 6: comparison at subheading level, applying the same rules only after the heading is fixed.
Worked example
A consignment of knitted cotton T-shirts with a screen-printed design is entered. GRI 1 places it in heading 6109, T-shirts, singlets and other vests, knitted or crocheted. The print does not move it to Chapter 49: the textile article is complete and the printing is decoration. At subheading level, GRI 6 selects cotton: 6109.10.
Traps
Classifying by end use rather than heading text; ignoring chapter notes; using GRI 3(b) before 3(a); applying GRI 6 before the heading; assuming a supplier HS code is binding.