The Structure of the Harmonized System HS 12162021

The Structure of the Harmonized System (HS) 12/16/2021 1

Objectives n n To identify the structure of the Harmonized System To outline the principles used in the arrangement of the HS 12/16/2021 2

Introduction The HS comprises; n Sections n Chapters n Headings n Subheadings n General Rules for the interpretation of the system(GIRs) n Legal notes 12/16/2021 3

Structure of the HS Cont… 21 Sections – broad range of goods n 96 Chapters –In use- narrow range of goods Chapter 77 reserved for future use 98 & 99 reserved for National use n 1244 Headings- more specific n 5212 Subheadings (HS code) identified by a 6 -digit code, very narrow range/very specific n 4

Structure of the HS 21 Sections 96 Chapters(2 digit) 1224 Headings(4 digits) 5212 Subheadings(6 digits) 12/16/2021 5

Principles of the arrangement of Sections n n Based on material content e. g. vegetable products in Section II, Textiles and textile articles Section XI Based on usage or function e. g. Vehicles, Aircrafts, vessels Section XVII 12/16/2021 6

Principles cont. . d n Stage of processing Live Cattle Sect. I 12/16/2021 Hides Sect. VIII Shoes Sect. XII 7

Numbering of Sections and Chapters n n n Sections are numbered in Roman numerals for example I, III up to XXI Chapters are numbered in Arabic numerals for example 01, 02, 10, 15 up to 97 The first two digits indicate a Chapter Number for example 01 for Chapter 1 . 12/16/2021 8

Principles of the arrangement of Chapters n The same principles used in the arrangement of the Sections also apply to the arrangement of Chapters 12/16/2021 9

Principles of the arrangement of Chapters Materials content Example; n Rubber –Chapter 40 n Wood - Chapter 44 n Cotton- Chapter 52 12/16/2021 10

Arrangement of Chapters cont. . . Usage or function n Pharmaceutical- Chapter 30 Motor Vehicles. Chapter 87 Arms and Ammunition- Chapter 93 12/16/2021 11

Principles cont. . d Stage of processing or manufacture n Paper Pulp Chapter 47 n Paper. Chapter 48 n Books. Chapter 49 12/16/2021 12

Structure Cont. . d Number of Chapters in a Section A Section may contain one or more Chapters e. g. Section I has 5 Chapters Section III has only Chapter 15 12/16/2021 13

Structure cont. . d Number of Headings in a Chapter The number of headings may also vary from Chapter to Chapter e. g. Chapter 13 has 2 headings Chapter 84 has 87 headings 12/16/2021 14

Structure cont. . d Division of Chapters into sub-Chapters A Chapter may be subdivided into sub. Chapters to identify certain classes of goods within the Chapter. This shows a level of processing or a combination thereof. 12/16/2021 15

Division of Chapters Example; Chapter 71 is divided into 3 Sub-Chapters; Sub Chapter III 12/16/2021 16

Structure Cont. . d Headings n n n Provide a more specific grouping of goods and approximate description Consist of a four digit number(01. 04) Describes the commodity (terms of the heading) 12/16/2021 17

Structure Cont. . d Sub-Headings A heading may be further subdivided into subheadings, where deemed appropriate, individualizing narrower categories of commodities. In the case that a heading is not further subdivided , two zeros are added to the four digits code number. 12/16/2021 18

Arrangement of Headings Stage of processing within a Chapter Example Chapter 79; 79. 01, 79. 02 79. 03, 79. 04, 79. 05 79. 07 12/16/2021 Raw material Semi finished and finished Finished articles e. g. Zinc tubes 19

Structure Cont. . d The Six digit only apply at International level Regional tariff( EAC-CET) has 8 digits and may be division into 3 groups: n Heading n Subheading n Regional subdivision 12/16/2021 20

Structure Cont. . d For Example ; 84. 44 8444. 00. 00 12/16/2021 Heading Subheading (International level HS code) Regional subheading or Tariff number. 21

Structure Cont. . d GIRs There are 6 General Interpretative Rules(GIRs) which govern classification of goods n Legal Notes Sections and Chapters have "Notes" which provide mandatory instructions for classifying Goods and subheading Notes which guide classification within subheadings n 12/16/2021 22

Conclusion n Hierarchical structure of the HS Sections/Chapters/Heading/subheading/and GIRs/Notes Principles used in the arrangement of the nomenclature 12/16/2021 23

The end THANK YOU 12/16/2021 24