General Rules for the Interpretation of the

Harmonized System

By
M Qasim Khokhar
Deputy Collector
MCC East
 SCHEME OF PAKISTAN CUSTOMS
TARIFF

Pakistan Customs has adopted HARMONIZED

COMMODITY DESCRIPTION AND CODING
SYSTEM (briefly referred to as HS) of World
Customs Organization (WCO).
It is based on HS-2012 version adopted with
effect from June 2, 2012
 The Brief history of HS
The history of HS dates back to year 1831 when Belgium
presented foreign trade statistics under 3 general headings:
a) Raw materials
b) Produces
c) Manufactured articles.
Later on under auspices of Customs Cooperation Council
(CCC), Preparatory work was completed by 60 countries in
1981 and more than 20 International Organization took part
in the preparation of HS System.
A final version came into force in 1988 by World Customs
Organization (WCO).
It is periodically reviewed after every five years and has
gone to such revisions in years 1996, 2002, 2007 & 2012.
 What is HS?
The HS comprises of;
i) General Rules for the Interpretation of the Harmonized
System.
ii) Section & Chapter notes including sub-heading notes.
iii) A list of headings arranged in systematic order and where
appropriate, sub divided into sub-headings.

These headings have been grouped in 21 Sections, 97 Chapters

and 1244 headings. The HS system has 6 digits while Pakistan
Customs Tariff is an eight digit Tariff.
Classification has to be determined up to the 8th digit level. The first
six digits are the same as in HS. The 7th & 8th digit represent
national headings.
Harmonized System is based on six digits The First 2
digits indicate chapter Nos. e.g.

chapter 39 Plastics and Articles thereof

chapter 50 Silk

The other 2 digits indicate placement in the chapter

3903.00 Polymers of Styrene

2716.00 Electrical Energy
The 4 digits heading has been sub-divided into 5 digits [represented by
a single dash (-) ]

08.06 Grapes, fresh or dried

0806.10 - Fresh
0806.20 - Dried

61.05 Mens or boys shirts, knitted or

crocheted

6105.10 - Of cotton
6105.20 - Of man-made fibres.
6105.90 - Of other textile fibres.
The 5 digits heading has been sub-divided into 6 digits
[ represented by a double dash (- -) ]

70.09 Glass mirrors, whether or not framed,

including rear-view mirrors.

7009.10 - Rear-view mirror for vehicles.

- Other
7009.91 -- Unframed.
7009.92 -- Framed.
 continued

08.07 Melons (including water-melons) and

papaws (papayas), fresh.

- Melons (including watermelons):

0807.11 -- Watermelons
0807.19 -- Other

0807.20 - Papaws (papayas)

 Pakistan Customs Tariff
It is an eight digit Tariff . Classification has to be
determined up to the 8th digit level
The first six digits are the same as in HS. The
7th & 8th digit represents national headings.
The first two digits represents chapter no. e.g.
17 Sugar and sugar confectionery
The 3rd and 4th digits represent position in the
chapter. e.g.
0104 Live sheep and goat
 (Continued Pak Cus Tariff)
If four digit heading is not further sub-divided,
it will be represented as
9406.0000 Prefabricated buildings
2716.0000 Electrical energy

If four digit heading is further sub-divided,

the change is made at 5th digitrepresented by
a single dash (-).
6702 Artificial flowers,foliage and fruit
and parts thereof;articles made
of artificial flowers, foliage or fruit
6702.1000 - Of plastics
6702.9000 - Of other materials
 Continued
(Change at 5th digit)
9403 Other furniture and parts thereof
9403.1000 - Metal furniture of a kind used in offices

9403.2000 - Other metal furniture

9403.3000 - Wooden furniture of a kind used in offices

9403.4000 - Wooden furniture of a kind used in kitchens

9403.5000 - Wooden furniture of a kind used in bed rooms

9403.6000 - Other wooden furniture

9403.7000 - Furniture of plastics

9403.8000 - Furniture of other materials including cane,osier,

bamboo or similar materials
9403.9000 - Parts
 If 5th digit heading is further sub-divided,the change is made at
6th digit represented by double dash ( - - )
No number is mentioned against sub-divided single dash heading
0901 Coffee whether or not roasted or decaffeinated;
coffee husks and skins; coffee substitute containing
coffee in any proportion.

- Coffee not roasted:

0901.1100 -- Not decaffeinated
0901.1200 -- Decaffeinated

- Coffee roasted:
0901.2100 -- Not decaffeinated
0901.2200 -- Decaffeinated
0901.2900 -- Other
 National headings
The national headings may be created at 7th or 8th
digit level.

No change can be made up to 6th digits of HS. They

are required to be adopted as such.

The 7th digit change is represented by three dashes

(- - - ).

No number is mentioned against the single dash ( - ) or

the double dash (- - ) heading being further sub-divided.
 Continued
(7th digit heading)
63.04 Other furnishing articles excluding
those of heading 94.04,
- Bed Spreads
6304.1100 - - knitted or crocheted
6304.1900 - - other
- Other

- - Knitted or crocheted
6304.9110 - - - cushions
6304.9190 - - - other

6304.9200 - - not knitted or crocheted,of cotton.

6304.9300 - - not knitted or Crocheted, of synthetic fibres
6304.9900 - - not knitted or crocheted of other textile
materials
 Continued
(7th digit heading)

28.08 Nitric acid; sulphonitric acid.

2808.0010 --- Nitric acid.

2808.0090 --- Sulphonitric acid

0908 Nutmeg, mace and cardamoms.

0908.1000 - Nutmeg
0908.2000 - Mace
- Cardamoms
0908.3010 - - - Large
0908.3020 - - - Small
 8th digit heading
7th digit three dash heading (- - -) heading may
be further sub-divided into 8th digit four dash
heading (- - - - ) heading
No number is mentioned against the three
dash (- - -) heading being sub-divided

27.10 Petroleum oils and oils obtained

from bituminous,minerals, other
than crude; preparations not else
where specified or included
 Continued
(8th digit heading)
containing by weight 70% or more of
petroleum oils or of oils obtained from
bituminous, minerals, these oils being the
basic constituents of the preparations;
waste oils.

- Petroleum oils and oils obtained from bituminous

minerals (other than crude) and preparations
not elsewhere specified or included,containing
by weight 70% or more of petroleum oils or of
oils obtained from bituminous minerals, these
 Continued
(8th digit heading)

oils being the basic constituents of the

preparations, other than waste oils.

-- Light oils and preparations

2710.1110 --- motor spirit

2710.1120 --- aviation spirit
2710.1130 --- spirit type jet fuel
2710.1140 --- white spirit
2710.1150 --- solvent oil
2710.1190 --- other
 Continued
(8th digit heading)
-- Other

--- Kerosene, including kerosene type jet

fuel
2710.1911 ---- Kerosene
2710.1912 ---- jp.1
2710.1913 ---- jp.4
2710.1919 ---- other

--- Other medium oils and preparations

2710.1921 - - - - Light diesel oil
2710.1929 - - - - other
--- Gas oil
2710.1931 - - - - high speed diesel oil
 Continued
2710.1939 - - - - other

--- Fuel oils:

2710.1941 - - - - Furnace oil
2710.1942 - - - - Petroleum top naphtha
2710.1949 - - - - other

--- Lubricating oil i.e.oil such as

2710.1951 - - - - In packing not exceeding 10 liters
2710.1952 - - - - In packing exceeding 10 liters
2710.1959 - - - - In bulk (vessels,bouzers etc)

--- Other
2710.1991 - - - - Mineral oil which has
2710.1992 - - - - Mineral greases
2710.1993 - - - - Base oil for
 continued
2710.1994 ---- Brake fluid
2710.1995 ---- Liquid paraffin
2710.1996 ---- White oil
2710.1997 ---- Transformer oil
2710.1998 ---- Spin finish oil
2710.1999 ---- other

- Waste oil
2710.9100 -- Containing poly chlorinate biphenyls
(PCBs), poly chlorinated terphenyls
(PTCs) or poly brominated biphenyls
(PB Bs)
2710.9900 -- other
Never arrive at classification

directly at 8 digitheading (Four dash ----).

The reply may be wrong.

Always determine classification

step by step
 General Rules for the
Interpretation of the
Harmonized System
Rule 1
The title of sections, chapters & sub-chapters are provided for ease of
reference only; for legal purpose, classification shall be determined
according to the terms of the headings and any relative section or chapter
notes and, provided such headings or notes do not otherwise require,
according to the following provisions

1
 Provisions
TITLE OF SECTIONS CHAPTER & SUB-CHAPTER ARE
PROVIDE FOR EASE OF REFERENCE.
a) Base Metals & articles of base metals
section XV (Chapter 72 to 83) but toys
of base metals section XIX chapter 95.
b) Chapter 73 articles of Iron & Steel but
machinery chapter 84.
c) Live animals chapter 1 but animals of
circus 95.08

2
 For the legal purpose classification shall
be determined according to the terms
of headings and any relative section or
chapter notes.
a) 01.01 Live horses
44.03 Wood in rough

44.07 Wood sawn

b) Section XVII deals with vehicle (chapter 87),
air craft (chapter 88) vessels (chapter 89) but
wheeled toys designed to be driven by
children e.g. bicycle, scooter are excluded &
falls for classification under heading 95.01 in
section XX by virtue of Note 1 to Section XVII 3
 Chapter
Note 2 A Sodium Nitrate 31.02 Nitrates 28.34
Ammonium
of Chapter Sulphate

31 31.02 Sulphates 28.33

i) Potassium
chloride
Chapter Note 4 A of
Chapter 31
31.05 chlorides 28.27
Chapter Sterile Surgical catgut, first Aid
Note 4 to Boxes Chemical contraceptive
Chapter 30 based on hormones 30.06

4
Rule 2 (a)
Any reference in a heading to an article shall
be taken to include a reference to that
article incomplete or unfinished, provided
that , as presented, the incomplete or
unfinished article has the essential character of
the complete or finished article. It shall also be
taken to that article complete or finished (or
failing to be classified as complete or
finished by. Virtue or this Rule), presented
un-assembled or dis-assembled.
5
 Rule 2 (a)
Rule 2 (a) extend the scope of assessment in the following two ways.
i) Incomplete or unfinished articles shall be assessed in a heading
meant for complete or finished article provided it has the
essential character of complete or finished articles.
a) T.V. without knob 85.28
b) Motor vehicles except wheels 87.03
c) Motor vehicles without engine 87.03
d) Bicycle without saddle 87.12
e) Telephone set without dial 85.17
f) Blanks are treated as in-
complete or un finished articles
unless specifically classified else respective headings
where (e.g. Blanks of circular saws)82.02
ii)
a) Un-assembled or dis-assembled article
is to be assessed as assembled article

b) In-complete or unfinished article

presented un-assembled provided as
presented have the essential
character of complete or finished article is
to be classified as complete or finished
article.

7
 Articles presented un-assembled or dis-
assembled means articles the components of
which are to be assembled by means of fixing
devices, or riveting, welding involving
assembly process.

The un-assembled or dis-assembled articles

are generally presented to meet packing,
handling or transport requirements.

Bulky or fragile goods (Bridges, Lamps lighting

fittings, pre-fabricated buildings/ godowns)
are frequently presented un-assembled or dis-
assembled.

8
This rule shall not apply if it is in contradiction
with the terms of heading or any relevant
section of chapter notes. e.g.

87.0 Chassis fitted with engines.

6
91.0 Watch movements complete &
8 assembled
The quantity of any component found in excess
of assembly are to be assessed separately in its
respective heading.

9
 Rule 2 (b)
Any reference in a heading to a material or
substance shall be taken to include a reference
to mixtures or combinations of that
material or substances with other material
or substances. Any reference to goods of a given
material or substance shall be taken to
include a reference to goods consisting
wholly or partly of such material or substance.
The classification of goods consisting of more
than one material or substance shall be
according to the principles of Rule 3.

10
 Rule 2(b)
Rule 2(b) relates to mixtures and
combination of materials or substances.

The heading to which it refers are

headings in which there is a reference to a
material or substances.

Milk containing vitamins will be classified

as milk.

11
This rule does not apply where specific provisions
exists in the term of heading or relevant chapter
or section note.

15.03 Lord Oil unmixed

15.07 Soya Bean Oil unmixed

Classification of mixture of products of chapter 9 are

governed by note 1 to chapter 9.

Mixture of spices of heading 09.04 to 09.10

a) Mixture of 2 or more products of the
same heading are to be classified in that
heading
b) Mixtures of two or more Products of
different headings under heading 09.10
12
c) Classification of alloy of
base metal is governed
by Note 5 to Section XV
d) Mixture of animals wax
(15.21) & mineral wax
(27.12) is classifiable
under heading 34.04
(Note 5 to chapter 34)
13
Rule 3 (a)
The heading which provides the most
specific description shall be preferred to
heading 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. 14
 Rule 3 (a)
Specific Description
Heading covering most specific description
will prevail over heading covering more
general description.

There is no hard & fast rule to determine

whether one heading more specifically
describes the goods than another.
However, it is generally said that:
15
 A description by name is more specific
than a description by class
a)
Steel Fork 82.15

Table article 73.23

b)
Electro mechanical tools 85.0
Shaver with self contained motor 8
85.1
0
c)
Methane 27.1
1
Acyclic Hydro Carbon 29.0
1
16
 If the goods answer to a description
which more clearly identifies them that
description is more specific than one
where identification is less complete.
a)
Tyres for Bicycle 40.11
Parts of Cycle 87.14

b)
Seats for aircraft 94.01
Parts of air craft 88.03

17
c) Carpets for motor cars 57.03
Parts and Accessories of Motor cars. 87.08

d) Tubular rivets 83.08 83.08

Screws, Bolts, Nuts & rivets. 73.18

e) Ball bearing for weighing machine 84.82

Parts of weighing machine 84.23

18
 Rule 3(b)
Mixtures, composite goods consisting of
different materials or made up of
different components, and goods put up
in sets for retail sales, 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.

19
 Rule 3(b)
Essential Character
This method relates only to:-

i) Mixtures
ii) Composite goods consisting of different
materials
iii) Composite goods consisting of different
components
iv) Goods put up in sets for retail sale.

20
Factors determining essential character.

i) It may be nature of the material

or components.
ii) Bulk quantity
iii) Weight
iv) Value
v) Role of constituent material in
relation to use of the goods.

21
 Example.
i) Mixtures consisting of pigment/ fillers/ fixing agent/solvent
etc.
ii) Composite goods Aluminum foil with paper backing;
conveyer belt made of plastic & rubber.
iii) Ashtray consisting of a stand incorporating removable ash
bowl.
iv) Goods put up in sets for retail sale;

a) Small Bottle of glue 35.06

Bottle of solvent /thinner 38.14
b) Drawing kit comprising of
Ruler 90.17
Calculator 90.17
Compass 90.17
Pencil 96.09
Sharpener 82.14
22
Plastic Bag 42.02
 c) Hair dressing sets consisting of

i) Pair of electric hair clipper 85.10

ii) Comb 96.15
iii) Scissors 82.13
iv) Brush 96.03
v) Towel 63.02
vi) Leather Case 42.02

23
d) Medicinal preparation Perfumed
Medicine. 30.04
Perfumes 33.07
e) Insecticide perfumed
Perfumes. 33.07
38.08
Insecticide
f) Felt coated with plastic Chap
i) Less than 50% plastic 39
ii) 50% or more of textile 56.02

24
 Rule 3 (c)
When goods cannot be classified by reference
to 3(a) or 3(b), they shall be classified under the
heading which occurs last in numerical order
among those which equally merit
consideration.
Felt coated with plastic comprising
of 50% of plastics and 50% of 39.20
textile material 56.02

25
 The rule (b) will be applicable if rule (a) fails &
rule will be applicable, if rule (a) & (b) fails.
These rules are applicable if they are not in
contradiction with the terms of headings &
relevant section or chapter notes.

ii In terms of Note 2 to chapter 84 a machine

which answers the description in one or
more of heading 84.01 to 84.24 & at the
same time to a description in one or other of
heading No. 84.25 to 84.86 is to be classified
under the appropriate heading of the former
group.
Pump for liquid 84.13
Agriculture Machinery 84.36 26
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.

Kinship depends on many factors e.g.

i) Description
ii) Character
iii) Purpose.

27
 Rule 5 (a)
Camera cases, Musical Instruments cases,
Gun cases, Drawing Instrument cases,
Necklace cases & similar containers, specially
shaped or fitted to contain a specific article or
set of articles, suitable for long term use &
presented with the article for which they are
intended, shall be classified with such articles
when of a kind normally sold therewith. This
rule doest not, however, apply to containers
which give the whole its essential character
28
 Rule 5 (a)
This rule covers containers which are:-
i) Specially shaped or fitted to contain a
specific articles.
ii) Suitable for long term use

iii) Presented with the articles whether or

not the articles are packed separately
iv) of a kind normally sold with such
articles.
v) Dont give the whole its essential
character.
29
 Example
i) Plastic boxes for fancy soap 31.0
ii) Jewelry boxes 1
71.1
iii) Electric shaver cases 3
85.1
vi) Binocular cases 0
90.0
v) Musical Instruments cases 5
92.0
Important vi) Gun cases 2
93.0
If the cases are imported separately without
3 the
articles they shall be classified in their respective
headings depending upon constituent material
39.23, 42.02, 44.15, 43.03.
Example of containers not covered by this Rule
are containers such as silver caddy containing tea
or ornamental ceramic bowl containing sweets.
30
 Rule 5 (b)

Subject to the provisions of rule 5 (a) above,

packing materials & 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 is not binding when
such packing materials or packing
containers are clearly suitable for repetitive
use.

31
 Rule 6
For legal purpose, 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 subheading at the
same level are comparable. For the purposes of
this rule the relative section & chapter notes
also apply, unless the context otherwise
requires.
32
 PakistanRules
Rule-1 For the purpose of interpretation,
Explanatory Notes to the Harmonized
Commodity Description and Coding
System (2007 version) published by
World Customs Organization, Brussels as
amended from time to time shall be
considered authentic source of
interpretation.

33
 RULE 2
For the purpose of classification in the First
Schedule to Customs Act, 1969 (IV of 1969), the
Board shall be the final authority to determine
classification of any item meant to be imported or
exported

34
 Special Classification Provisions
Chapter 99
1) The provision of this Chapter are not subject to
the rule of specificity in General Interpretative
Rule 3 (a) and have over riding effect on
classification made under Chapter 1 to 97.
2) Classification in chapter 99 is subject to:
i) Determination of Eight Digit classification
under chapter 1 to 97.
ii) Determination of Four Digit classification
under chapter 99 and
Fulfillment of condition mentioned in the
chapter, sub-chapter, Headings;
35
 SALE OR DISPOSAL OF GOODS OF
CHAPTER 99

In case of sale or disposal of goods in

violation of the prescribed condition,
limitation or restriction, duty shall be
recovered at the rates specified in Chapter 1
to 97 without prejudice to any other action
required under the Customs Act, 1969.
 CLASSIFICATION COMMITTEE
FBR has constituted a Classification Committee in the MCC Appraisement
East, Custom House, Karachi.
Objectives:
In order to implement the recommendations of the World Customs
Organization regarding the introduction of the program for binding pre-entry
classification information
improvement of Tariff Classification Work and related infrastructure,
Routine classification issues are to be decided by the respective
Collectorates at their own level.

Complicated classification disputes are referred to the Classification

Centre which issues public notice after detailed deliberations on the
proposed /disputed PCTs.
The referral of complicated dispute to Classification Committee and
procedure adopted is done in line with para 2 of CGO 12/2002 dated
15.06.2002.
 PROCEDURE FOR REFERRING TO
CLASSIFICATION COMMITTEE.
For this, consignment is provisionally assessed against
Pay Order or Bank Guarantee under Section 81 of the
Customs Act, 1969
The matter is referred to Chairman Classification
Committee in the MCC Appraisement East, Custom
House, Karachi in a letter (hard copy) issued by an
officer not below the rank of Collector
Referral is to be accompanied with three sealed
samples and literature and record of
proceedings/opinions in favor of various PCTs
considered within the Collectorate.
 METHODOLOGY FOR CLASSIFICATION
RULINGS
Rulings are issued as warranted under para 2 of CGO 12 of 2002 dated 15.06.2002
The Centre will seek opinion from the relevant group of Appraisement
Collectorate, Karachi within fifteen (15) days of the receipt of the request.
During discussion, the importer or his representative shall also be invited.
The committee may also direct the importer to supply any further information or
document .
The classification determined shall be subject to approval by Collector of Customs
Appraisement. The Collector may agree with the findings of the committee,
change the classification or refer back for denovo consideration.
The ruling shall be communicated in writing to the importer and all Customs
Collectorates as soon as possible but not later than ten days of the approval by the
Collector.
The classification communicated will be binding for a period of one year.
The classification ruling will be treated as annulled if it is found subsequently that
the same was obtained by providing false, misleading or incomplete information
by the applicant.
 FUNCTIONS OF CLASSIFICATION
CENTRE/COMMITTEE
a) to determine pre-entry classification;
b) to examine and settle classification disputes/references/queries
referred either by various Customs stations or by the traders;
c) to compile and print classification rulings on yearly basis;
d) to monitor and ensure that uniform and accurate classification
decisions are made at all customs stations;
e) to devise appropriate software/program to monitor the quality of
classification work through networked computer system;
f) to create and preserve a database containing all classification
matters and the related documents/publications/information;
g) to maintain contacts and exchange information regarding
classification matters with other customs administrations in the world;
h) to groom and train officers and staff, in the field on HS classifications
and classification mis-declarations, in co-ordination with the
Directorate General of Training and Research (Customs).
 ISSUANCE OF PUBLIC NOTICE
Decisions of Classification Committee are announced and
widely circulated through issuance of Public Notice. This type
of Public Notices has following mandatory elements.
It gives a complete physical and chemical (if needed) description of
product whose HS Code is being determined. This description includes
its main characteristics so that product is identified in the mind of a
reader.
It explains possible headings/HS Codes/PCTs.
It explains why certain headings have been excluded i.e product has
not been classified in those headings
It explains why product has been classified in a certain heading.
It explains how this PCT has been determined and under what GIR.
It explains how other Rules have been exhausted.
 Currency of the Classification Ruling.
The ruling shall cease to be valid where:
It becomes incompatible with new fiscal tariff measures or judicial
decisions; and
where the holder of such information is notified in writing of its
withdrawal, revocation or amendment on account of further
details/information having surfaced casting doubts about the
correctness of the ruling.
In cases where the classification committee is unable to
resolve the dispute,
the same will be referred to the Board through the Collector of
Customs Appraisement for its decision or
onward submission to the World customs Organization, Brussels for a
ruling on the subject.
 ISSUANCE OF PRE-ENTRY
CLASSIFICATION RULINGS
The centre also issues binding pre-entry classification rulings on the specific request of an
importer.

Regarding pre-entry classification, the importer, prior to making actual import,

mayrequest in writing for a binding pre-entry classification ruling to the classification
Centre
The said request shall be accompanied by the following;

a) Full description of goods along with necessary details required for determining
classification, including trade name, generic name, etc;

b) technical literature/certificate showing structure composition, laboratory test

reports etc;

c) trade sample, photograph, drawings, if any;

d) correspondence or preliminary import documents, proforma invoice etc. along

with proposed HS classification; and

e) any other relevant information.

 SOURCES OF CLASSIFICATION
The Explanatory Notes to the Harmonized Commodity Description and
Coding System published by World Customs organization (WCO), Brussels
as amended from time to time shall be considered authentic source of
interpretation as mentioned in Pakistan Rule-1.
The second authentic source is Compendium of Classification published by
WCO and usually available with Explanatory Notes.
Classification available at the end of tariff published by FBR is another
source to consult.
Collection of Public Notices issued previously by Classification Committee.
For chemicals, European Chemical Dictionary and websites is very helpful.
Following is web address of classification done by European Union. For
this, first CAS number is to be determined by consulting Google and other
search engines.
http://ec.europa.eu/taxation_customs/dds2/ecics/chemicalsubstance_co
nsultation.jsp?Lang=en
Thank
You
36