Mastering HS Code Classification with GIR Rules: Practical Examples and Insights

In my previous article, "Understanding HS Codes: A Comprehensive Guide", we explored the fundamentals of HS codes and their importance in international trade. As a follow-up, this article focuses on the practical application of the General Interpretative Rules (GIR) for accurate product classification. By examining real-world examples such as e-cigarettes, travel sets, kitchen pans, electric shavers, and platinum, we will enhance our understanding of how to correctly navigate the complexities of HS codes.

Example 1: Classification of a Disposable E-Cigarette Pre-Filled with Nicotine Liquid

Commodity in Question: A disposable e-cigarette pre-filled with nicotine liquid

Classification Method:

1.????? Understanding the Product:

• Electronic Device: Heats nicotine liquid to produce vapor.
• Nicotine Liquid: Intended for inhalation.

2.????? Applying the General Interpretative Rules (GIR):

• GIR 1: Examine relevant headings: Heading 8543: Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter. Heading 2404: Products containing nicotine intended for inhalation without combustion.
• GIR 3(b): Determine the essential character of the product. The nicotine liquid is central to the product's use as it provides the primary function of nicotine delivery.
• GIR 6: Reference to Subheading Notes for additional clarification. Specifically: For Heading 2404, Subheading Note 2 clarifies that this heading includes disposable e-cigarettes and similar devices that combine both the nicotine liquid and the delivery mechanism in a single unit designed for disposal once depleted.

Conclusion:

The disposable e-cigarette pre-filled with nicotine liquid should be classified under HS Code 2404.12.00.90 in the UK. This classification accurately reflects the product's essential character as a nicotine delivery system, in accordance with the specific Subheading Notes and General Interpretative Rules.

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Example 2: Classification of Travel Sets for Personal Toilet, Sewing, or Shoe or Clothes Cleaning

When classifying travel sets under the UK tariff code system, we apply the General Interpretative Rules (GIR) to determine the most accurate classification. This example shows how to classify a travel set designed for personal care, sewing, or cleaning.

Understanding the Product

A travel set may contain:

• Toiletry items: Toothbrush, toothpaste, soap, comb.
• Sewing items: Needles, thread, scissors.
• Shoe cleaning items: Shoe polish, brush.

Applying the General Interpretative Rules (GIR)

• GIR 1: Classification is determined according to the terms of the headings and any relevant section or chapter notes. In this case: Heading 9605: Travel sets for personal toilet, sewing, or shoe or clothes cleaning.
• GIR 6: Classification of goods in subheadings is based on the terms of those subheadings and any related notes. This rule ensures the set is classified according to its full description under Heading 9605.

Review of Relevant Chapter Notes

The chapter notes list exclusions for Chapter 96, but none directly refer to typical items in a travel set.

Final Classification

Given the specificity of Heading 9605, which covers travel sets for personal toilet, sewing, or shoe or clothes cleaning, and considering GIR 1 and GIR 6, the travel set should be classified as follows:

UK Tariff Code: 9605.00.00.00 — Travel sets for personal toilet, sewing, or shoe or clothes cleaning.

Conclusion

Heading 96.05 encompasses the entire set by name and is the only heading where the full set is covered. As such it clearly indicates the intent of coverage and “otherwise requires”, therefore GIR 3 cannot be invoked to classify it to a component. It is classified by GIR 1 at heading level.

Example 3: Classification of Kitchen Pans Made from Enamelled Iron and Copper

Understanding the Product: Kitchen pans can be made from:

• Copper: Pans made from copper.
• Enamelled Iron: Pans made from cast iron with an enamel coating.

Applying the General Interpretative Rules (GIR):

• GIR 1: Classification is based on headings and any relevant notes.

1. Heading 7418: Kitchen or other household articles of copper.
2. Heading 7323: Articles of iron or steel, including those with coatings.

• GIR 2(b): Used when goods are composed of more than one material. This rule helps determine classification when there is a choice of headings.
• GIR 2(b): Goods made from different materials are classified according to the material that gives the product its essential character.

Application of GIR 2(b) for Kitchen Pans:

• Copper Pans: Made from copper, classified under HS Code 7418.10.10.00.
• Enamelled Iron Pans: Made from Pans made from cast iron with an enamel coating, classified under HS Code 7323.92.00.00.

Final Classification:

• Copper Pans: HS Code 7418.10.10.00 — Kitchen or other household articles of copper.
• Enamelled Iron Pans: HS Code 7323.92.00.00 — Other household articles of iron or steel.

Conclusion

For kitchen pans, GIR 2(b) applies when a product consists of more than one material. Copper pans are classified under HS Code 7418.10.10.00, while enamelled cast iron pans are classified under HS Code 7323.92.00.00, based on the material that gives the product its essential character.

?Example 4: Classification of an Electric Shaver

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• Commodity 1 (8467.21.10.00)

Description: Tools for working in the hand, pneumatic, hydraulic, or with a self-contained electric or non-electric motor, with a self-contained electric motor capable of operation without an external source of power.

Scope: Generally, includes various power tools but not specifically personal grooming appliances.

• Commodity 2 (8509.80.00.00)

Description: Electromechanical domestic appliances with a self-contained electric motor, other than vacuum cleaners.

Scope: Covers various household appliances with electric motors, excluding specific items like vacuum cleaners.

• Commodity 3 (8510.10.00.00)

Description: Shavers, hair clippers, and hair-removing appliances with a self-contained electric motor.

Scope: Specifically includes personal grooming appliances such as electric shavers.

Step 2: Review Chapter Notes

• Chapter Note 4 for Commodity 2 (8509) specifies that it does not apply to appliances like electric scissors, which suggests that appliances specifically meant for personal grooming, like electric shavers, are excluded from this heading.

Step 3: Apply General Interpretative Rule 3(a)

According to Rule 3(a), you should use the heading that provides the most specific description when there are multiple headings that might apply.

Conclusion

Given that:

• Commodity 1 covers general power tools, which are not specific to personal grooming.
• Commodity 2 is excluded by the chapter notes for personal grooming appliances.
• Commodity 3 specifically covers electric shavers and similar devices.

Commodity 3 (8510.10.00.00) is the most specific and appropriate heading for an electric shaver. Therefore, the correct classification for an electric shaver is 8510.10.00.00.

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Example 5: Classification of Platinum, Unwrought or in Semi-Manufactured Forms, or in Powder Form

Understanding the Product

The product consists of:

• Platinum in unwrought form, semi-manufactured forms, or in powder form.

Key Considerations for Classification

Heading 7110: This heading covers platinum, unwrought or in semi-manufactured forms, or in powder form.

Applying the General Interpretative Rules (GIR)

• GIR 1: Classification is determined according to the terms of the headings and any relative section or chapter notes. Here, we refer to: Heading 7110: Platinum, unwrought or in semi-manufactured forms, or in powder form.
• GIR 6: The classification of goods in the subheadings of a heading is determined according to the terms of those subheadings and any related notes.

Chapter Note Details

• Note 4(B) to Chapter 71: The expression ‘platinum’ includes platinum, iridium, osmium, palladium, rhodium, and ruthenium.

Subheading Note Considerations

• Subheading Note 2: "Notwithstanding the provisions of Chapter Note 4(B), for the purposes of subheadings 7110.11 and 7110.19, the expression ‘platinum’ does not include iridium, osmium, palladium, rhodium, or ruthenium."

Key Points on Classification

Without considering GIR 6 and the subheading notes, platinum would be broadly classified under Heading 7110. However, GIR 6 directs us to examine the subheadings closely:

• For subheadings 7110.11 and 7110.19, the term ‘platinum’ excludes iridium, osmium, palladium, rhodium, and ruthenium.

Final Classification

Given the application of GIR 6 and the subheading notes, we identify the specific commodity code for platinum:

• Commodity Code for Unwrought Platinum or in Powder Form: 7110 11 00 00

This code is used because it is specifically designated for platinum in powder form, ensuring compliance with the detailed subheading notes.

Conclusion

What GIR 6 does, is it tells you to go through the whole process you used for the heading again to find the correct 5-digit subheading, and then go through it again to find the correct 6-digit subheading.

By integrating GIR 6 and the relevant subheading notes, we determine that platinum, in unwrought or powder form, should be classified under 7110 11 00 00. This ensures the product is correctly categorized according to the latest tariff regulations.

I've just published a new article that builds on our previous discussion about HS Codes. This time, I'm diving into the practical application of General Interpretative Rules (GIR) for accurate product classification. It took a lot of effort to put this together, and I believe it will be incredibly useful for anyone involved in international trade and customs compliance.

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Read the full article here: Mastering HS Code Classification with GIR Rules: Practical Examples and Insights

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