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Chapter 3

Chapter 3 discusses the Canadian Harmonized System of Tariff Classification, which is essential for classifying imported goods using the Harmonized Commodity Description and Coding System (HS). It outlines the hierarchical structure of classification numbers and the General Interpretive Rules (GIR) that guide the classification process. Additionally, it introduces Canadian General Interpretive Rules (CGIR) that adapt the international rules for Canadian customs procedures.

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Chapter 3

Chapter 3 discusses the Canadian Harmonized System of Tariff Classification, which is essential for classifying imported goods using the Harmonized Commodity Description and Coding System (HS). It outlines the hierarchical structure of classification numbers and the General Interpretive Rules (GIR) that guide the classification process. Additionally, it introduces Canadian General Interpretive Rules (CGIR) that adapt the international rules for Canadian customs procedures.

Uploaded by

kotlerworld
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© All Rights Reserved
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1

Chapter 3: The Canadian


Harmonized System of Tariff
Classification

Introduction to Customs Administration and Procedures, Second Edition: Chapter 3. Copyright © 2020 Emond Montgomery Publications. All rights reserved.
2

Customs Tariff
• Full name of the Customs Tariff used in Canada is
the Harmonized Commodity Description and Coding
System — usually referred to as the “Harmonized
System” or the “HS.”
• All imported goods must be classified.
• International tool of World Customs Organization
(WCO).

Introduction to Customs Administration and Procedures, Second Edition: Chapter 3. Copyright © 2020 Emond Montgomery Publications. All rights reserved.
3

Classification Numbers
• First six digits are the same in all countries that use the
HS to classify goods.
• Goods classified numerically in hierarchical system made
up of:
• Chapter (first 2 digits).

• Heading (first 4 digits).

• Subheading (first 6 digits).

• Tariff item (first 8 digits).

• Classification number (all 10 digits).

Introduction to Customs Administration and Procedures, Second Edition: Chapter 3. Copyright © 2020 Emond Montgomery Publications. All rights reserved.
4

General Interpretive Rules (GIR)

• Six International Rules:

• GIR 1: titles are for ease of reference only.

• GIR 2(a): unfinished item may be included if it has


essential character of the finished product.
• GIR 2(b): items that are made up of parts may belong to
more than one heading — must refer to GIR 3.
• GIR 3(a): items made up of parts belong to category
that best describes them.

Introduction to Customs Administration and Procedures, Second Edition: Chapter 3. Copyright © 2020 Emond Montgomery Publications. All rights reserved.
5

General Interpretive Rules (GIR) (cont’d.)

• GIR 3(b): if item cannot be categorized according to


GIR 3(a), look to essential character.
• GIR 3(c): if item cannot be categorized according to
GIR 3(a) or 3(b), use heading that occurs last in
numerical order.
• GIR 4: items that cannot be otherwise classified, to
be classified in same way as goods to which they are
most similar.

Introduction to Customs Administration and Procedures, Second Edition: Chapter 3. Copyright © 2020 Emond Montgomery Publications. All rights reserved.
6

General Interpretive Rules (GIR) (cont’d.)

• GIR 5(a): cases and containers to be categorized the


same as goods they hold.
• GIR 6: principles applied in rules 1–4 must now be
applied at the subheading.

Introduction to Customs Administration and Procedures, Second Edition: Chapter 3. Copyright © 2020 Emond Montgomery Publications. All rights reserved.
7

CGIR (Canadian)

• CGIR 1: process described in GIR 6 applies to 8th


and 10th digit levels of classification.
• CGIR 2: international term to be used where conflict
with Canadian term.
• CGIR 3: clarification of GIR 5(b).

Introduction to Customs Administration and Procedures, Second Edition: Chapter 3. Copyright © 2020 Emond Montgomery Publications. All rights reserved.

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