HS Tariff Regulations
Customs Tariff - Schedule
General Rules for the Interpretation of the Harmonized System
Classification of goods in the nomenclature shall be governed by the following principles:
1. The title of sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, the 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.
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 I incomplete or unfinished article has the essential character of the complete or unfinished article. It shall also be taken to include a reference to that article complete or finished (or failing to classified as complete or finished by virtue of this Rule), presented unassembled or disassembled.
(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or a combination 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 in part 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.
3. When by application of Rule 2 (b) or for any other reason, goods are, prima facia, classifiable under two or more headings, classification shall be effected as follows;
(a) 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 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.
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be criterion is applicable.
(c) When goods cannot be classified by reference to Rule 3 (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
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.
5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein:
(a) Camera Cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specifically 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.
(b) 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 is not binding when such packing materials or packing containers are clearly suitable for repetitive use.
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 the understanding that only subheadings at the same level are comparable. For the purpose of this rule the relative Section and Chapter Notes also apply, unless the context otherwise requires.
Canadian Rules
1. For legal purposes, the classification of goods in the tariff items of a subheading or of a heading shall be determined according to the terms of those tariff items and any related Supplementary Notes and, mutatis mutandis, to the General Rules for the interpretation of the Harmonized System, on the understanding that only tariff items at the same level are comparable. For the purpose of this rule the relative Section, Chapter and Subheading Notes also apply, unless the context otherwise requires.
2. Where both a Canadian term and an international term are presented in this nomenclature, the commonly accepted meaning and scope of the international term shall take precedence.
3. For the purpose of Rule 5 (b) of the General Rules for the interpretation of the Harmonized System, packing materials or packing containers clearly suitable for repetitive use shall be classified under their respective headings.
Explanatory Notes - February 1997
RULE 2 (a)
(Incomplete or unfinished articles)
(I) The first part of Rule 2 (a) extends the scope of any heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished provided that, as presented, it has the essential character of' the complete or finished article.
(11) The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term " blank " means an article not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part.
Semi-manufacturers not yet having the essential shape of the finished articles (such as is generally the case with bars, discs. tubes. etc.) are not regarded as " blanks ".
(111) 1n vicw of the scope of the headings of Sections l to IV, this part of the Rules does not normally apply to goods of these Sections.
(IV) Several cases covered by the Rule are cited in the General Explanatory Notes to Sections or Chapters (e.g.. Section XVI, and Chapters 6l, 62. 86. 87 and 90).
RULE 2 (a)
(Articles presented unassembled or disassembled)
(I) The second part of Rule 2 (a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.
(VI) This rule also applies to incomplete or unfinished articles presented unassembled or disassembled provided that they are to be treated as complete or finished articles by virtue of the first part of this Rule.
(Vll) For the purposes of this Rule, " articles presented unassembled or disassembled " means articles the components of which are to be assembled either by means of fixing devices (screws, nuts, bolts etc.) or by riveting or welding, for example provided only assembly operations are involved.
No account is to be taken in that regard of the complexity of the assembly method. However, the components shall not be subjected to any further working operation for completion into the finished state.
Unassembled components of an article, which are in excess of the number required for that article when complete, are to be classified separately.
(VIII) Cases covered by this Rule are cited in the General Explanatory Notes to Sections or Chapters (e.g. Section XVI, and Chapters 44, 86, 87 and 89).
(IX) 1n view of the scope of the headings of Sections I to VI, this part of the Rule does not normally apply to goods of these Sections.
RULE 2(b)
(Mixtures and combinations of mater4h or substances)
(X) Rule 2 (b) concerns mixtures and combinations of materials or substances and goods consisting of two or more materials or substances. The headings to which it refers are headings in which there is a reference to a material or substance (e.g., heading 05,03 - horsehair), and headings in which there is a reference to goods of a given material or substance (e.g. 45,03 - article of natural cork). It will be noted that the Rule applies only if the headings or the Section or Chapter Notes do not otherwise require (e.g.. heading l5.03 - lard oil, not… mixed)
Mixtures being preparations described as such in a Section or Chapter Note or in a heading text are to he classified under the provisions of Rule I.