Harmonised System

Question 1

What is nomenclature?

Answer 1

orderly system of commodity description and coding

Question 2

What is HS?

Answer 2

systematic naming, enumerating of goods with international rules and interpretation

Question 3

what is customs tarriff?

Answer 3

systematic classification of goods together with rates of duties

Question 4

what is classification?

Answer 4

process of arriving at a particular heading/sub-heading of a commodity

Question 5

what are the uses of the HS system?

Answer 5

customs tariffs
collection of international trade statistics
basis for rules of origin
collection of international taxes
trade negotiations
monitoring controlled goods (nuclear waste, narcotics)
core customs processes
to know what is crossing the border

Question 6

arrangement of sections is based on which principles?

Answer 6

articles made of the same material e.g gold
goods of the same use
stage of processing/degree of manufacturing e.g raw materials, semi finished goods, finished goods

Question 7

what is the tarriff structure?

Answer 7

chapter
chapter heading
chapter sub heading
chapter sub sub heading

Question 8

how can a commodity be classified?

Answer 8

terms of heading
notes to sections, chapters or subheadings
general interpretive rules

Question 9

what is the purpose of section notes?

Answer 9

exclusions
classification
definition
limitation of of scope

Question 10

What is rule 1 GIRs?

Answer 10

titles of sections, chapters and sub chapters are for reference only
legally binding provisions are the terms of headings and any related section or chapter notes

Question 11

GIRs 2(a)?

Answer 11

reference to an article includes the article when incomplete or unfinished

Question 12

GIRs 2(b)?

Answer 12

reference to a material/substance includes reference to a combination of the material with another material/substance

Question 13

GIRs 3?

Answer 13

where goods are classifiable under 2 or more headings

Question 14

Under GIRs 3, how are goods classifiable?

Answer 14

most specific description
essential character
heading occurring last in numerical order

Question 15

which is rule 4 GIRs?

Answer 15

Akin rule

Question 16

GIRs 5(a)?

Answer 16

cases/containers specially shaped to contain a specific article and are for long term use are classified with such articles eg camera cases, violin, guitar cases

Question 17

rule 5(b)?

Answer 17

packaging presented with goods are classified together if the packaging is normally used for packing such goods

Question 18

challenges in tariff classification?

Answer 18

fast evolution of technology
inadequate capacity
appeals delay due to lack of supporting documentation