The Structure of the Harmonized System (HS)

The Structure of the Harmonized System (HS)

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Objectives

To identify the structure of the Harmonized System

To outline the principles used in the arrangement of the HS

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IntroductionThe HS comprises; Sections Chapters Headings Subheadings General Rules for the

interpretation of the system(GIRs) Legal notes

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Structure of the HS Cont… 21 Sections – broad range of goods 96 Chapters –In use- narrow range of

goodsChapter 77 reserved for future use 98 & 99 reserved for National use 1244 Headings- more specific 5212 Subheadings (HS code)

identified by a 6-digit code, very narrow range/very specific

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Structure of the HS

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96 Chapters(2 digit)

1224 Headings(4 digits)

5212 Subheadings(6digits)

21 Sections

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Principles of the arrangement of Sections

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

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Principles cont..d

Stage of processing

Live Cattle Hides Shoes

Sect.I Sect.VIII Sect.XII

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Numbering of Sections and Chapters

Sections are numbered in Roman numerals for example I,II,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

.

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Principles of the arrangement of Chapters

The same principles used in the arrangement of the Sections also apply to the arrangement of Chapters

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Materials content

Example; Rubber –Chapter 40 Wood - Chapter 44 Cotton- Chapter 52

Principles of the arrangement of Chapters

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Arrangement of Chapters cont...

Usage or function

Pharmaceutical- Chapter 30 Motor Vehicles- Chapter 87 Arms and Ammunition- Chapter 93

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Principles cont..d

Stage of processing or manufacture Paper Pulp Chapter 47 Paper- Chapter 48 Books- Chapter 49

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Structure Cont..dNumber of Chapters in a SectionA Section may contain one or more Chapters e.g. Section I has 5 Chapters Section III has only Chapter 15

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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

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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 .

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Division of Chapters

Example; Chapter 71 is divided into 3 Sub-Chapters;

Sub Chapter ISub Chapter II Sub Chapter III

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Headings 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)

Structure Cont..d

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Structure Cont..dSub-HeadingsA 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. 1804/22/23

Arrangement of HeadingsStage of processing within a ChapterExample Chapter 79;

79.01,79.02 Raw material79.03, 79.04,79.05 Semi finished

and finished79.07 Finished articles

e.g. Zinc tubes1904/22/23

Structure Cont..dThe Six digit only apply at International levelRegional tariff( EAC-CET) has 8 digits and may be division into 3 groups: Heading Subheading Regional subdivision

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Structure Cont..d

For Example ;

84.44 Heading8444.00 Subheading

(International level HS code)

8444.00.00 Regional subheading or Tariff number.

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Structure Cont..d GIRsThere are 6 General Interpretative

Rules(GIRs) which govern classification of goods Legal Notes Sections and Chapters have "Notes" which provide mandatory instructions for classifying Goods and subheading Notes which guide classification within subheadings

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Conclusion

Hierarchical structure of the HS Sections/Chapters/Heading/

subheading/and GIRs/Notes Principles used in the arrangement

of the nomenclature

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The end

THANK YOU

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