Training Manual For Harmonized Tariff Schedule (HTS) Classification

 

TRAINING MANUAL FOR HARMONIZED TARIFF SCHEDULE (HTS) CLASSIFICATION Global Tariff Classification Project  Project  Karthik Vijayaranga Vijayarangan n RN03414

Global Tariff Classification - Finance|

Feb 11, 2014

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Training Objectives  Objectives  •  At the end of the the lesson, participants will be able to:  – Define terms used in the Customs Cust oms Nomenclature

 – Outline the evolution of Customs Nomenclature  – State the reasons for tariff classification  – Identify the uses of the Harmonized System  – Outline the structure of the Harmonized System

 – Identify the concept of classification  – Basis of Authority 1 & 2  – Use General Rules of Interpretation (GRI)  – Know about Explanatory Notes and Cross Rulings.

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DEFINITIONS  DEFINITIONS  •

Nomenclature:  –  A systematic naming, or enumerating of all goods found in international international trade along with international rules and interpretations.

•

Customs tariff:  tariff:   –  A systematic classification of goods entering the international trade for National interests together with rates of duties.

•

Classification:   Classification:  –  A process of arriving at a particular heading or sub heading heading of a commodity entering the international trade.

•

International trade:   –  An exchange of goods between between two or more countries.

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HISTORICAL BACKGROUND  BACKGROUND  •

Reasons for tariff classification:  – Systematic Classification of goods  – Uniform Classification of goods  – To have common Custom language  – To ensure simplification and certainty

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DEVELOPMENT   IMPORTANT STAGES OF DEVELOPMENT •

The Harmonized System took more than 100 years to design

•  Aim was to facilitate facilitate international trade trade  – Classification according to commodities‟ alphabetical order  

•

From 1853-1922 an international statistical nomenclature.  –  Approved by an international convention and signed signed by 29 countries.

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DEVELOPMENT   IMPORTANT STAGES OF DEVELOPMENT •

It consisted of 186 items, arranged in five groups namely:  – Live animals  – Food and beverages

 – Raw and simply prepared materials  – Manufactured goods  – Gold and Silver

•

In 1922 International Bureau of Statistics compiled commercial statistics  – Used in the preparation of the harmonized commodity description and coding system.

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IMPORTANT STAGES OF DEVELOPMENT  DEVELOPMENT  •

THE LEAGUE OF NATIONS  – League of Nations Conference 1927  – Draft Nomenclature produced 1931  – Geneva Nomenclature  – The nomenclature had 991 headings grouped in 86 chapters  – The chapters were arranged into 21 sections  – Revised in 1937

 – Development stopped by World War II Internal | 7

 

IMPORTANT STAGES OF DEVELOPMENT  DEVELOPMENT  •

THE BRUSSELS CONVENTION 1950  – 1948 -European customs study group continued to work on Geneva nomenclature.

 – 1950-Draft named Brussels Tariff Nomenclature (BTN)

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IMPORTANT STAGES OF DEVELOPMENT  DEVELOPMENT  •

1974-(BTN) renamed „The Customs Cooperation Council 1974-(BTN) Nomenclature‟ (CCCN).  – CCCN Had 1241 headings

 – Grouped into 99 Chapters  –  Arranged in 21 Sections  – CCCN supported by:

• Explanatory Notes for official interpretation •  Alphabetical index listing •  A compendium of classification opinion

•

1983 CCCN was replaced by the Harmonized Commodity Description and Coding System.

•

1988 The Harmonized System entered into force.

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USES OF HARMONIZED SYSTEM •

Basis for customs tariff

•

Collection of international trade statistics

•

Rules of Origin

•

Collection of government revenue

•

Trade negotiations (e.g. the WTO schedule of tariff concessions) concessions)

•

Transport tariffs and statistics

•

Monitoring prohibited and restricted goods

•  As a vital element of core customs process areas of customs controls and procedures Internal | 10

 

STRUCTURE OF HARMONIZED SYSTEM •  Arrangement of of Harmonized system system  – Raw materials/natural goods  – Un-worked products

 – Semi-finished products  – Finished products

•

Headings covering related products are grouped into chapters

•

Chapters covering related products are grouped into Sections  – 21 Sections  – 99 Chapters • Chapter 77 reserved for future use • Chapters 98 & 99 reserved for National Use

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STRUCTURE OF HARMONIZED SYSTEM

International – International  – (HS)  (HS) CODE POSITIONS Chapter

1&2

Heading

3&4

Subheading

5&6

8708.29.5060 =

87

8708

870829

Chapter

Heading

Subheading

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STRUCTURE OF HARMONIZED SYSTEM

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STRUCTURE OF HARMONIZED SYSTEM

•

Section I: Live Animals; Animal Products

•

Section VII: Plastics and Articles Thereof Rubber and Articles Thereof

•

Section XV: Base Metals and Articles of Base Metal

•

Section XVII: Vehicles, Aircraft, Vessels and Associated Transport Equipment

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STRUCTURE OF HARMONIZED SYSTEM •

The titles of Sections, Chapters and Subchapters are not legally binding

 – They are for ease of reference only  – They are “pointers” or “labels” used to divide up the nomenclature.  – Help in directing you to areas of the nomenclature.

 – They should not be quoted to support classification.

•

Example: Section XV is entitled “base metal and articles of base metal”   metal”

 – However, many articles of base metal are classified in other Sections.

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STRUCTURE OF HARMONIZED SYSTEM Chapter

Commodities

01-05

Animal & Animal Products

06-15

Vegetable Products

16-24

Foodstuffs

25-27

Mineral Products

28-38

Chemicals & Allied Industries

39-40 41-43

Plastics / Rubbers Raw Hides, Skins, Leather, & Furs

44-49

Wood & Wood Products

50-63

Textiles

64-67

Footwear / Headgear

68-71 72-83

Stone / Glass Metals

84-85

Machinery / Electrical

86-89

Transportation

90-97

Miscellaneous

98-99

Service

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STRUCTURE OF HARMONIZED SYSTEM Sections and Chapters Section VII: Plastics and Articles Thereof Rubber and Articles Thereof Chapter 39 Chapter 40 Section XIII: Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials; Ceramic Products; Glass and Glassware Chapter 70 Section XV: Base Metals and Articles of Base Metal Chapter 73 Chapter 82 Chapter 83 Section XVI: Machinery and Mechanical Appliances; Electrical Equipment;

Commodities Plastics and articles thereof Rubber and articles thereof

Glass and glassware Articles of iron or steel Tools, implements, of base metal; parts thereof of base metal Miscellaneous articles of base metal

Parts Thereof; Sound Recorders and Reproducers, Television T elevision Image and Sound Recorders and Reproducers, and Parts and Accessories of Such  Articles Chapter 84

Chapter 85 Section XVII: Vehicles, Aircraft, Vessels and Associated Transport Equipment Chapter 87 Section XVIII: Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical or Surgical Instruments and Apparatus; Clocks and Watches; Musical Instruments; Parts and Accessories Thereof

Chapter 90 Section XX: Miscellaneous Manufactured Articles

Chapter 94

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof Electrical machinery and equipment and parts thereof; t hereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles

Vehicles other than railway or tramway rolling stock, and parts and accessories thereof

Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated sign illuminated nameplates and the like; prefabricated buildings Internal | 17

 

STRUCTURE OF HARMONIZED SYSTEM •

Goods are grouped in two broad categories:  – Goods which the earth is endowed with. • e.g. Minerals, Animals, Plant Water etc.

 – Goods which are man-made

• e.g. TVs, Motor vehicles, the list is endless because of change in technologies

•

Goods under chapters 1 to 83 are generally classified according to material of manufacture.

•

Goods under chapter 84 to 96 are generally classified according to function

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PRINCIPLES OF TARIFF CLASSIFICATI CLASSIFICATION ON   •

Where is it used? (LOCATION)

•

What material or substance is it made of? (MATERIAL)

•

What is its function or use? (FUNCTION)

•

In what form/spec is it imported? (SPECIFICATION)

•

Is this the only possible classification?

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PRINCIPLES OF TARIFF CLASSIFICATI CLASSIFICATION ON   •

HOOD ASSY  – Location: Body  – Material: Metal  – Function: Car Hood

•

Section XVII

• •

Chapter 87 Heading 8708

•

Subheading 870829

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PRINCIPLES OF TARIFF CLASSIFICATI CLASSIFICATION ON   •

To properly arrive at the correct classification of a good, the following must be understood and applied:  – Structure and arrangement of Sections, Chapters and Subchapters

 – How to apply the Sections, Chapter and Subchapter Notes

 – How to apply the General Rules of Interpretation  – How to search Cross Rulings

 – How to read the Explanatory Notes.

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PRINCIPLES OF TARIFF CLASSIFICATI CLASSIFICATION ON   •  A commodity can be classified either by:  – Terms of the Heading  – Notes to the Sections, Chapters C hapters or Subheadings  – The General Interpretative Rules (GRI)

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PRINCIPLES OF TARIFF CLASSIFICATI CLASSIFICATION ON   •

This can be further categorized into five parts:  – Lists of Description  – Legal Notes (Legal Force)  – General Rules of Interpretation  – Explanatory Notes (No legal force)  – Classification Rulings

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NOTES  SECTION, CHAPTER AND HEADING NOTES  •

The Legal Notes which appear in front of most Sections and Chapters are known as Section Notes and Chapter Notes

•

Sectio Section n XI is is the the only only Secti Section on with with „Sub „Subhea headin ding g Notes' Notes' which which refe referr to the interpretation of Subheadings

•

The Legal Notes for each Section and Chapter provide:

 – Exclusions  – Definitions

 – Classificat Classification ion Provisions  – Limitations of Scope

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SECTION, CHAPTER AND HEADING NOTES  NOTES  •

Exclusion: Note 1 Chapter 87  – VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLINGSTOCK,AND PARTS AND ACCESSORIES THEREOF

 – This chapter does not cover

• This chapter does not cover railway or tramway rolling-stock designed solely for running on rails. • Heading 8712 includes all children's bicycles. Other children's cycles fall in heading 9503.

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SECTION, CHAPTER AND HEADING NOTES  NOTES  •

Definition: Note 2 Chapter 87  – Note 2: For the purposes of this t his chapter, "tractors" means vehicles constructed essentially essentially for hauling or pushing another vehicle, appliance or load, whether or not they contain subsidiary provision for f or the transport, in connection with the main use of the tractor, of tools, seeds,fertilizers or other goods.

 – Machines and working tools designed for fitting to tractors of heading 8701 as interchangeable equipment remain classified in their respective headings even if presented with the tractor, and whether or not mounted on it.

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NOTES   SECTION, CHAPTER AND HEADING NOTES •

Classification Provision: Note 4 to Section XVII  – These notes establish the classification of certain goods.  – Example: Note 4 to section XVII establishes the classification of “amphibious motor vehicles”  vehicles” 

Note 4. For the purposes of this section: (b) Amphibious motor vehicles are classified under the appropriate heading of chapter 87;

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NOTES   SECTION, CHAPTER AND HEADING NOTES •

Limitation of Scope: Note 2 to section XVII  – These notes limit the scope of goods to be classified in the section.  – Example: Note 2 to section XVII (which limits the scope of the expressions “Parts” and “Parts and accessories”).  accessories”).  Note 2. The expression expressions s "parts" and "parts and accessories accessories"" do not apply to the following articles, whether or not they are identifiable as for the goods of this section:

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INTERPRETATION   GENERAL RULES OF INTERPRETATION •

The General Rules of Interpretation (GRI) are designed to ensure that a given product is always classified in the same heading and subheading with the exclusion of any other heading meriting consideration.

•

They illustrate and provide step-by-step basis for classification of goods in the harmonized system.  –  A clear route to the classification of any item can be made  – Provide authority and justification for any classification classif ication  – Uniform system operated throughout t hroughout the world.

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INTERPRETATION   GENERAL RULES OF INTERPRETATION •

There are six rules which are applied in hierarchical order.  – No GRI can be used until the preceding GRI has failed

•

They should be quoted to support classification.  –  All goods must be classified according to the terms of the heading texts in the nomenclature

 AND  – any relative section or chapter notes.

•

Where Where not possib possible, le, then then “acco “accordi rding ng to the the foll followi owing ng provi provisio sions” ns”  

•  A systematic and consecutive approach to the rules must must be taken  – Remember, Headings and the Legal Note must first be considered when determining classification

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INTERPRETATION   GENERAL RULES OF INTERPRETATION •

General Rule of Interpretation 1: The titles of sections, chapters c hapters and sub-chapters are provided for ease of reference only; for legal purposes, 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.

 – Used when direct classification can be made

 – Many items can be classified using GRI 1 only: •  A live sheep is classified in 0104

•  A leather suitcase is classified in 4202 •  A base metal is classified in 8301 •  A car door is classified in 8708

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INTERPRETATION  GENERAL RULES OF INTERPRETATION  •

General Rule of Interpretation 1  – Not only where the item is mentioned in the heading text

BUT  – Only after consulting the Section and Chapter Notes • These Notes should be consulted for EVERY classification

 – Because of the direction given in GRI 1, use of GRI 2 is allowed only where classification using GRI 1 is not possible.

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GENERAL RULES OF INTERPRETATION INTERPRETATION   •

General Rule of Interpretation 2  – Can only be used if GRI 1 has failed.  – This rule refers to: • Incomplete • Unfinished • Unassembled or • Disassembled Articles • Mixtures or combinations of materials or substances

 – There are two parts to this rule: GRI 2(a) & GRI 2(b)

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GENERAL RULES OF INTERPRETATION  INTERPRETATION  •

Genera Generall Rule Rule of Inte Interpr rpreta etatio tion n 2(a) 2(a):: “Ess “Essent ential ial Charac Character ter””   Any reference in a heading to an article shall be taken to include 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 include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.  – GRI 2(a) covers: • Incomplete • Unfinished

• Unassembled or • Disassembled articles

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INTERPRETATION   GENERAL RULES OF INTERPRETATION •

Genera Generall Rule Rule of Inte Interpr rpreta etatio tion n 2(a) 2(a):: “Ess “Essent ential ial Charac Character ter””   – Where you can clearly recognize in an unfinished or incomplete article the essential character of the goods described in a particular heading.

 – The article only lacks a component(s) or part(s) or assembly.

 – Classify as if complete under GRI 2(a)

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GENERAL RULES OF INTERPRETATION  INTERPRETATION  •

Genera Generall Rule Rule of Inte Interpr rpreta etatio tion n 2(a) 2(a):: “Ess “Essent ential ial Charac Character ter””   – Question to ask • What is the essential function of the item?

Or • What is its main purpose and use?

 – Influencing factors: • The kind of goods being considered • The nature of the material or components • Their bulk, quality or weight • The role of a particular constituent material or component in relation to the use of the goods

• The w way ay th the e goo goods ds a are re pa pack ckage aged…. d…..an .and d so o on. n.  

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INTERPRETATION   GENERAL RULES OF INTERPRETATION •

Genera Generall Rule Rule of Inte Interpr rpreta etatio tion n 2(a) 2(a):: “Ess “Essent ential ial Charac Character ter””   – Examples: • Bottle performs of plastic in tubular shape, with one closed end and one open end threaded to secure screw type closure • Motor vehicles without engine or wheels

• Freezer without a compressor •  An unassembled bicycle with all the components components of a finished bicycle •  An unassembled table with all the components components of a finished table •  A rough forging that has the profile shape of the finished good

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GENERAL RULES OF INTERPRETATION INTERPRETATION   •

General Rule of Interpretation 2(b):  Any reference in a heading to a material or substance shall shall be taken to include a reference to mixtures or combinations of that material or substance with other materials 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 s uch material or substance. The classification of goods consisting of more than one material or substance s ubstance shall be according to the principles of rule 3.  – GRI 2(b) covers mixtures or combinations of materials or substances but only if the headings or Section/Chapter Notes do not otherwise require

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GENERAL RULES OF INTERPRETATION  INTERPRETATION  •

General Rule of Interpretation 2(b):  – Refers to three situations: • Heading reference to a material or substance • Reference to goods of a given material or substance • Goods consisting of more than one material or substance i.e., classifiable under two or more headings

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GENERAL RULES OF INTERPRETATION  INTERPRETATION  •

General Rule of Interpretation 2(b):  – Heading reference to a material or substance

• Under GRI 2(b), a stainless steel travel mug with a plastic handle would be classifiable in heading 7323 as a table, kitchen or other household article of steel despite the plastic handle, as it retains the essential character of a table, kitchen or other household article of steel as mentioned in heading 7323.  – Reference to goods of a given material or substance • If a travel mug, however, contained relatively equal amounts of stainless steel and plastic (e.g., the outside or outer surface of the mug is made of plastic and the inside or inner surface (lining) of the mug is made of stainless steel), then the travel mug would be potentially classifiable under two headings: heading 3924 as tableware, kitchenware or other household article of plastic and heading 7323 as a table, kitchen or other household article of steel.

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GENERAL RULES OF INTERPRETATION INTERPRETATION   •

General Rule of Interpretation 3  – Can only be used after GRI 1, 2(a) and 2(b) fail  – Covers goods consisting of more than one material or substance and classifiable under two or more headings, i.e., when there t here is no essential character • Example: travel mug consisting of relatively equal amounts of stainless steel and plastic does not have the essential character of a table, kitchen or other household article of steel as mentioned in heading 7323. In this situation we must go to GRI 3 for classification of the product.

 – There are three parts to this rule: GRI 3(a), GRI 3(b) and GRI 3(c)

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GENERAL RULES OF INTERPRETATION  INTERPRETATION  •

Genera Generall Rule Rule of of Interp Interpret retati ation on 3(a) 3(a):: “Most “Most Specif Specific ic Descr Descript iption ion””  The heading which provides the most specific description shall be preferred to headings 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 r etail 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

 – Most specific description • Tufted textile carpet for automobiles: 5703 or 8708? Answer: 5703  – “Carpets and other textile floor coverings, tufted, tuft ed, whether or not made up” is more specific than “Parts “Parts and accessories of the motor vehicles of headings 8701 to 8705”   8705”

• Seats for automobiles: 8708 or 9401? Answer: 9401  – “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof” is more specific than “Parts and accessories of the motor vehicles of headings 8701 to 8705”  8705”  

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INTERPRETATION  GENERAL RULES OF INTERPRETATION  •

Genera Generall Rule Rule of Inte Interpr rpreta etatio tion n 3(b) 3(b):: “Ess “Essent ential ial Charac Character ter””  Mixtures, composite goods consisting of different materials or made m ade up of different components, and goods put up in sets for retail sale, which cannot be classified classi fied 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 c riterion is applicable  –

For the purposes of GRI 3(b) goods must be: • Mixtures • Composite goods of different materials • Composite goods of different Components • Goods put up in sets for retail sale.

 –

For the Purposes of GRI 3(b) goods put up in set for retail sale means: • Consist of at least two different articles. • Consist of products or articles put up together to meet a particular need or carry out a specific activity. •  Are put in manner suitable for sale directly to users w without ithout repacking.

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INTERPRETATION  GENERAL RULES OF INTERPRETATION  •

Genera Generall Rule Rule of Inte Interpr rpreta etatio tion n 3(b) 3(b):: “Ess “Essent ential ial Charac Character ter””   –

MIXTURE: A mixture of barley of heading 1003 and oats oat s of heading 1004 in equal amounts. In such an instance, there is a product consisting of two or more ingredients with each ingredient having a provision in which it could potentially be classified and no provision exists in the Harmonized System that provides for the mixture as a whole.

 –

COMPOSITE GOOD: combined flashlight of heading 8513 radioconsisting of headingof8527 contained in the same A housing. In such an instance, there is aand product two or more different units or components that are located in the t he same housing with each component having a provision in which it could potentially be classified and no provision exists in the Harmonized System that provides for the t he composite good as a whole.

 –

SET: A hairdressing kit consisting of a pair of electric hair clippers of heading 8510, a comb of heading 9615, a pair of scissors of heading 8213, and a brush of heading 9603. In such an instance, there is a product that consists of more than one item or article with each article having a provision in which it could potentially be classified and no provision exists in the Harmonized System that provides for the set as a whole. In the above-mentioned hairdressing kit, the articles are put up together to meet the particular need or carry out the specific activity of grooming hair.

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GENERAL RULES OF INTERPRETATION INTERPRETATION   •

Gene Genera rall Rule Rule of of Inter Interpr pret etat atio ion n 3(c) 3(c):: “Las “Lastt in Tar Tarif iff” f”   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.  – No ingredient, material, component or article can be found to impart the essential character to a particular good  – Goods are to be classified in the heading which occurs last in numerical order among those which equally merit consideration.

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GENERAL RULES OF INTERPRETATION  INTERPRETATION  •

Gene Genera rall Rul Rule e of of Inte Interp rpre reta tati tion on 4: “Most “Most Akin Akin””  Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the

 – This is a "last resort" rule.

 – Most often used with new technologies.

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GENERAL RULES OF INTERPRETATION  INTERPRETATION  •

Gene Genera rall Rul Rule e of of Inte Interp rpre reta tati tion on 5(a) 5(a):: “Ca “Case ses” s”   Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This Rule does not, however, apply to containers which give the whole its essential character;  – Specifies how to classify containers which: •  Are shaped or fitted for the article they will contain, •  Are suitable for long-term use, • Protect the article when not in use, •  Are of a kind normally sold with such articles, •  Are presented with with the articles they are designed to contain.

 – Containers which have these characteristics can be classified with the products which they contain. However, in cases where the container gives the product its essential character it would be the container which would have to be classified.

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GENERAL RULES OF INTERPRETATION  INTERPRETATION  •

Gene Genera rall Rul Rule e of Int Inter erpr pret etat atio ion n 5(b 5(b): ): “Pac “Packi king ng””  Subject to the provisions of Rule 5 (a) above, packing materials and 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 does not apply when such packing materials or packing containers are clearly suitable for repetitive use.  – Deals with packing containers and materials.  – These items should be classified with the goods they contain if they are of a kind normally used for packing such s uch goods and are not suitable for repetitive use. • Example: An importer bringing in goods and using styrofoam chips c hips for padding. Styrofoam chips are normally used for the padding and insulation of many goods and are rarely reused.

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GENERAL RULES OF INTERPRETATION  INTERPRETATION  •

General Rule of Interpretation 6 For legal purposes, 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 theFor understanding only subheadings atSection the same level are comparable. the purposethat of this Rule the relative and Chapter Notes also apply, unless the context c ontext otherwise requires.  – Once goods have been classified to the Heading H eading level by the use of GRI 1 through GRI 5, classification thetaking Subheading level can place by repeating 1 through 5to and into account any take related Legal Notes.

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NOTES  EXPLANTORY NOTES  •

The Explanatory Notes represent the official interpretation of the Customs Cooperation Council (hereafter referred to as the “World Customs Organization”) on the scope of each heading of the Harmonized System at the international level.

•

They are intended to be applicable at the 4-digit (heading) numerical code level, and sometimes at the 6-digit (subheading) numerical code level.

•  At times, however, the Explanatory Notes may provide provide guidance at the national numerical code level (i.e., beyond the 6-digit numerical code level) in a contracting party's tariff system.

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NOTES   EXPLANTORY NOTES •  Although they are neither bindingnor onconsidered the contracting to the Harmonized Systemlegally Convention to beparties dispositive in the interpretation of the Harmonized System, the generally accepted view is that the Explanatory Notes should be consulted for guidance and considered as persuasive authority in interpreting the Harmonized System treat the Explanatory Notes as having(although the samesome legalcountries authority may as the legal text of the Harmonized System). •

The Explanatory Notes are periodically amended by the Harmonized System Committee (which is a committee of the World Customs Organization that is charged with interpreting and maintaining the Harmonized System--see discussion below). All such amendments to the Explanatory Notes are periodically published by the World Customs Organization as amending supplements to that document.

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CUSTOMS RULINGS ONLINE SEARCH SYSTEM (CROSS)  (CROSS)  •  A tariff classification ruling is a legally binding binding opinion on the classification of a specific good issued by U.S. Customs Office of Regulations and Rulings. •

CROSS is a searchable database of CBP rulings that can be retrieved based on simple or complex search characteristics using keywords and Boolean operators. CROSS has the added functionality of CROSS  referencing rulings from the initial search CROSS referencing result set with their modified, revoked or referenced counterparts.

•

Rulings collections are separated into Headquarters and New York and span the years 1989 to present. Collections can be searched individually or collectively.

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Thank You