General interpretative rule gir 1
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GENERAL INTERPRETATIVE RULE (GIR)1. Objectives. To be able to apply GIR1 while classifying goods To be able to classify goods correctly using GIR1 To be able to use relative sections, chapters and heading notes by the application of GIR1. Introduction.

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GENERAL INTERPRETATIVE RULE (GIR)1

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General interpretative rule gir 1

GENERAL INTERPRETATIVE RULE (GIR)1


Objectives

Objectives

  • To be able to apply GIR1 while classifying goods

  • To be able to classify goods correctly using GIR1

  • To be able to use relative sections, chapters and heading notes by the application of GIR1


Introduction

Introduction

  • Classification of goods in the HS is governed by a set of six General Interpretative Rules (GIRs)

  • These Rules instructs the HS users on how to classifying goods in appropriate headings and subheadings


Introduction cont d

Introduction cont..d

  • They are designed to ensure that a given product is appropriately classified in oneheading and subheading of the HS Nomenclature


Application of girs

Application of GIRs

  • GIRs 1 to 5 apply at the heading level

  • GIRs 1 to 4 must apply in sequence or a hierarchical fashion

    • (GIR1 > GIR2 > GIR3(a) > GIR3(b) > GIR 3(c) > GIR 4)

  • GIR 5 applies individually

  • GIR 6 applies individually at the subheading level


  • Gir 1

    GIR1

    The titles of Sections, Chapters 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


    Gir 1 cont d

    GIR 1 cont..d

    • 1st -Titles are provided “for ease of reference only” means they are not legally binding in classification.

    • 2nd -Terms of the headings and any relative sections or Chapter Notes, have legal force therefore shall be followed

    • 3rd - Notes do not otherwise require …, i.e GIR 2 to 5 shall be considered only if the legal part is silent.


    Gir 1 cont d1

    GIR 1 cont..d

    • Majority of the goods are classified by the application of GIR 1

      For example;

      heading 01.01live horses

    • GIR 2-5 can only be applied when Rule 1 has failed


    Gir 1 cont

    GIR 1 cont…

    • GIR 1 is intended to emphasise that the terms of the headings and any relative Section or Chapter Notesare paramount

      • i.e they are firstly to be considered in classification process.

      • e.g. Notes in chapter 31 provide that certain headings relate only to particular goods.


    Gir 1 examples on use of terms of heading

    GIR 1 (Examples on use of Terms of heading)

    Many items can be classified directly by terms of heading

    Example: A live goat is classified in heading 01.04.


    Gir 1 use of terms of heading

    GIR 1 Use of Terms of Heading…

    • Title of Chapter 22 (for reference)

      “Beverages, spirits and vinegar”

    • The text of heading 22.03

      “Beer made from malt.” (terms of heading)


    Gir 1 use of terms of heading1

    GIR 1 Use of Terms of Heading…

    • “Beer (made from malt)” :

      Heading 22.03.


    Gir 1 use of terms of heading2

    GIR 1 Use of Terms of Heading…

    • The title of Chapter 85 reads :

      “Electrical machinery and equipment and parts thereof;…”(ease of reference)

    • The text of heading 85.16 reads :

      “Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and …”(terms of heading)


    Gir 1 use of terms of heading3

    GIR 1 Use of Terms of Heading…

    Electric immersion heater (Heading 85.16)


    Gir 1 examples on use of notes

    GIR 1 Examples on use of notes

    • Chapter 1 covers all live animals except: (note 1 to chapter 1)

      • fish and crustaceans, molluscs and other aquatic invertebrates, of headings 03.01, 03.06 and 03.07.

      • Cultures of micro-organisms and other products of heading 30.02; and

      • Animals of heading 95.08.


    General interpretative rule gir 1

    GIR 1 Examples on use of notes cont…

    Where do we classify salted crab meat, unfit for human consumption?

    • Salted Crab meat


    Gir 1 examples on use of notes cont

    GIR 1 Examples on use of notes cont…

    • However, by virtue of Note 1(c) of chapter 3, the proper classification of the article “salted crab meat, unfit for human consumption” is under heading 05.11.


    Gir 1 examples on use of notes cont1

    GIR 1 Examples on use of notes cont…

    • Is “Distilled water” classified as “water” of Chapter 22?

    No!!

    “Note 1 (c) to Chapter 22”, and

    “the text of heading 28.53”

    Distilled water (heading 28.53)


    Gir 1 examples on use of notes cont2

    GIR 1 Examples on use of notes cont…

    • Is “Sodium Nitrate” classified as “inorganic compound” of Chapter 28?

    No!!

    “Note 3 (c) to Chapter 28”, and

    “Note 2 (a) to Chapter 31”

    Sodium Nitrate (heading 31.02 as fertilizer)


    Gir 1 examples on use of notes cont3

    GIR 1 Examples on use of notes cont…

    Wooden furniture :

    Article of wood (Chapter 44)?


    Gir 1 examples on use of notes cont4

    GIR 1 Examples on use of notes cont…

    • Note 1 (o) to Chapter 44

      excludes Articles of Chapter 94 (for example, furniture, …)

    • Therefore, “Wooden furniture” is classified in Chapter 94 (heading 94.03 “other furniture”).


    Gir 1 summary

    GIR 1 (Summary)

    Direct classification can be made

    Not only where the item is mentioned in the heading text

    BUT

    Also after consulting the Section and Chapter Notes

    These Notes should be consulted for EVERY classification


    Gir 1 exercise

    GIR 1 EXERCISE

    Classify the given items correctly.


    General interpretative rule gir 1

    END

    THANK YOU


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