GENERAL

INTERPRETATIVE RULES

AUTHORS: Engr. Artemio D. Bernardino, MBA, ME and Engr. Vicente C. Cadayona III, ECE
The General Interpretative Rules of the Harmonized
System are the governing principles of goods
classification under the HS and all other HS-based tariff
nomenclatures, particularly the AHTN and TAP-AHTN.

NOTE: Contracting parties to the HS Convention are

obligated to apply the GIRs for tariff classification
purposes.
 OVERVIEW OF THE GENERAL INTERPRETATIVE RULES

Rule 1: General Rule; Terms of the • GIRs 1 to 5 govern classification of

legal texts up to the Heading Level goods at the Heading level; and
Rule 2(a): Incomplete or unfinished;  The classification of goods and
Unassembled or Disassembled their containers or packaging
Rule 2(b): Mixtures or Combinations material (at the 4-digit Heading
Rule 3: 2 or more Headings are level) is determined using the
considered principles provided by GIRs 1 to
Rule 3(a): Most specific description 5.
Rule 3(b): Essential Character  After determining the
Rule 3(c): Last in Numerical Order classification of the goods at the
Rule 4: Most Akin 4 digit heading level, if the
Rule 5(a): Special containers heading has subdivisions, the
Rule 5(b): Packing materials and next step is to classify subject
containers goods at Subheading level using
Rule 6: Subheading Rule the principles of Rule 6.
APPLICATION OF THE GENERAL INTERPRETATIVE RULES

• GIRs 1 to 4 are applied in a sequential manner.

 GIR 1 is always considered first in the classification of the Goods
at the Heading level. If the provisions of Rule 1 are not applicable,
the next rule to consider is Rule 2 and so on up to Rule 4.
• GIR 5 is used to clarify the classification of cases, boxes, containers, and
packing materials that are presented with the goods subject of classification.
 This rule is applied in addition to the Rule used to classify subject
goods at the Heading level.
• If the heading classification of the good is subdivided, the principle of GIR 6
is used.
 This Rule is applied when classifying goods at the Subheading
level. The principles of GIRs 1 to 5 are applied at the Subheading
level.
 1ST PART OF GIR 1

The 1st part of the rule states that “the titles of Sections,
Chapters, and subchapters are provided for easy reference
only”. These titles have therefore no legal bearing when it
comes to the classification of goods.

EXPLANATION: These titles are used to indicate as concisely

as possible the types of goods they cover. However, the variety
and number of goods classified in a Section or Chapter are such
that it is impossible to cover them all or to cite them specially in
the titles. Therefore, these titles only serve as reference and
have no legal bearing on classification.
 EXAMPLE

Commodity: Classification of rifle buttstock made of wood

The titles of Sections, Chapters and
Subchapters are provided for easy
reference only. Is the subject
article, which is
made of wood,
classified under
The title of Chapter 44 is “Wood and Chapter 44?
articles of wood; wood charcoal.
 EXPLANATION

Commodity: Classification of rifle buttstock made of wood

The titles of Sections, Chapters and
Subchapters are provided for easy No. The premise of basing the
reference only. classification of wooden rifle
buttstock solely on the title of
Chapter 44 “Wood and articles
of wood” is wrong since the
titles are only provided as
reference and do not represent
the complete coverage of the
chapter.
The title of Chapter 44 is “Wood and
articles of wood; wood charcoal.
 2ND PART OF GIR 1

The 2nd part of the Rule states that “for legal purposes, classification
shall be determined according to the terms of the Headings and any
relative Section or Chapter Notes”, and where appropriate, “provided
the Headings or Notes do not otherwise require, according to the
following provisions”.

EXPLANATION: This provision states that for the classification of goods

under the HS to have legal bearing, the classification should be based on
the terms or descriptions of the Headings and where applicable, on any
Section or Chapter Notes referring to the subject goods being classified.
 EXAMPLE
Commodity: Classification of scale model toy cars
GIR 1: Classification determined according to the terms of the
headings.

By virtue of GIR 1, subject toy

cars are classified under
Heading 95.03 since the
subject articles are covered by
the terms (or
95.03 covers “Tricycles, scooters, pedal wordings/description) of the
cars, and similar wheeled toys; dolls; Heading, i.e., “reduced-size
carriages; dolls; other toys; reduced size
(“scale”) models and similar recreational
(“scale” models).
models, working or not; puzzles of all kinds.
 EXAMPLE
Commodity: Classification of scale model toy cars
GIR 1: Classification determined according to any relative section
or chapter notes.
Parts of Firearms, even though
made of wood, are excluded
from the coverage of Chapter
44 by virtue of the relevant
Chapter Note. Therefore,
classification of the subject
article, pursuant to the
The title of Chapter 44 is “Wood and provision of GIR 1, is under
articles of wood; wood charcoal. Note 1 (n) Heading 93.05 as directed by
states that the Chapter does not cover
“Parts of firearms (Heading 93.05).
the Chapter Note.
The premise of GIR 1 is for the user of the HS Nomenclature to
find a heading with a description that is worded in such a way as
to include to include the subject article. Likewise, to carefully
check the relevant Section and Chapter Notes to see if there is a
provision defining the good or if it is specifically mentioned as
being included or excluded.
 B. GIR 2(a)

Rule 2(a) deals with the classification of unfinished, incomplete,

unassembled or disassembled goods.
1. Unfinished and Incomplete Goods
The rule states that unfinished and incomplete goods can be
classified under the same Heading as the same goods in its
finished or complete state provided that they have the essential
character of the finished or complete goods.
a. Essential Character
b. Unassembled or Disassembled
 Essential Character
Essential Character is the attribute which strongly represents
what an article is and distinguishes it from other articles. In
determining the essential character of goods, it is the state or
condition of the goods at the time of importation (“as presented”)
that should be the determining factor.
Unassembled or Disassembled Goods
Similarly, unassembled or disassembled goods may also be
classified the same as the complete finished good. This
category includes both Completely-Knocked Down (CKD) or
Completely Disassembled or Unassembled goods. This rule
allows only simple assembly operations like bolting, riveting or
welding.
 EXAMPLE 1
Commodity: Classification of wooden chairs imported without seat cushion
Incomplete Goods

By virtue of GIR 2a, subject

articles, although incomplete
(lacking the seat cushion), are
stilled classified under Heading
94.01 since as imported these
have the essential character of
Heading 94.01 covers “Seats (other than the complete seats.
those of Heading 94.02), whether or not
convertible into beds, and parts thereof.”
 EXAMPLE 2
Commodity: Classification of key blanks made of stainless steel
Unfinished Goods

By virtue of GIR 2a, subject

articles, although unfinished
(key grooves not yet formed),
are still classified under
Heading 83.01 covers “Padlocks and locks Heading 83.01 since as
(key, combination or electronically imported these have the
operated), of base metal; clasps and essential character of the
frames with clasps, incorporating locks, of
finished keys.
base metal; keys for any of the foregoing
articles, of base metal.”
 EXAMPLE 3
Commodity: Classification of AK-47 assault rifle, imported unassembled
Unassembled Goods

The description of Heading

93.01 does not mention a
provision for unassembled
military weapons. However, by
virtue of Rule 2(a), subject
Heading 93.01 covers “Military weapons,
article, although imported
other than revolvers, pistols and the arms unassembled, is still classified
of Heading 93.07.” under the heading providing
for the subject good in its
assembled condition.
 B. GIR 2(b)

Rule 2(b) concerns mixtures and combinations of materials or

substances, and goods consisting of two or more materials or
substances.
 General Interpretative Rules 3

When by application of Rule 2(b) or for any other reason, goods are, prima
facie, classifiable under two or more headings, classification shall be effected
by the principles of GIR 3. In such instances, these goods are classified
pursuant to the provisions of the three criteria of GIR 3 taken in order, starting
with GIR 3a, if not applicable proceed to 3b, and otherwise proceed to 3c.
Prima Facie= based on the first impression; accepted as correct until proved
otherwise.

GIR 3A= Specific description

GIR 3B= Essential character
GIR 3C= Heading which occurs last in numerical order
 GIR 3A

The rule states that classification under a Heading providing the

most specific description of the goods is preferred over a
heading providing a more general description of the goods. The
rule deals with relative specificity, and to determine the heading
with the most specific description to the goods subject of
classification, take note that:
• A description by name is more specific than a description by
class.
• A description that more clearly identifies a product is more
specific than one which is less complete (or more general in
nature)
 EXAMPLE
Commodity: Classification of a wooden chair convertible into a step ladder.

Headings considered in the classification:

Heading s 94.01 and 44.21.
94.01 covers Seats other than those of
Heading 94.02, whether or not convertible into
beds, and parts thereof. Chairs made up of any
material is classified under this heading.
Wooden ladders, on the other hand, are
classified under Heading 44.21 which covers
“Other articles of wood”.

Would the imported article falls with the

heading 94.01 or 44.21? Justify your
answer.
 EXAMPLE
Commodity: Classification of a wooden chair convertible into a step ladder.

94.01. Looking at the headings under

consideration, which one provides a more
specific description to the subject article and
clearly identifies it? Heading 44.21 provides for
a general description of articles (“Other articles
of wood”) which covers a vast variety of wood
products. On the other hand, Heading 94.01
covers, among others, “Seats” which is clearly
specific in describing the subject article.

Therefore, by virtue of GIR 3(a), subject

article is classified under Heading 94.01,
being the Heading which provides for a
more specific description.
 EXAMPLE: MIXTURES
Commodity: Classification of a chocolate truffle coffee consisting of decaffeinated coffee
(40% by weight) mixed with sweetened cocoa powder (60% by weight)

Headings considered in the classification:

Heading s 18.06 and 21.01.
Preparations containing cocoa are classified under
Heading 18.06 which covers “Chocolate and other
food preparations containing cocoa.”
Preparations containing coffee are classified under
Heading 21.01 which covers “Extracts, essences
and concentrates, of coffee, tea, or mate, and
preparations with a basis of these products or with a
basis of coffee, tea or mate, roasted chicory and
other roasted coffee substitutes, and extracts,
essences, and concentrates thereof.

Would the imported article falls with the heading

18.06 or 21.01? Justify your answer.
 GIR 3B

When a product is potentially classifiable in more than one

heading because it consists of two or more different
components or articles and no heading in the HS Nomenclature
covers such a product as a whole, the product is to be classified
according to the component or article that gives the product its
“essential character”.
 EXAMPLE: MIXTURES
Commodity: Classification of a chocolate truffle coffee consisting of decaffeinated coffee
(40% by weight) mixed with sweetened cocoa powder (60% by weight)

For this example, the basis of

determining which ingredient exhibits
the essential character of the subject
article is by its weight. Since the cocoa
is the ingredient predominating by
weight (60%), it is the component that
gives the subject article its essential
character- as a beverage that is
essentially a chocolate drink.
Therefore, by virtue of GIR 3(b),
subject article is classified under 18.06.
 EXAMPLE: COMPOSITE GOODS
Commodity: Classification of a glass flower vase with iron stand.

Headings considered in the classification:

Headings 70.13 and 73.23.
Glass vases are classified under 70.13 which
covers “Glassware of a kind used for table,
kitchen, toilet, office, indoor decoration or
similar purposes (other than that of Heading
70.10 or 70.18.
Iron stands are classified under Heading 73.23
which covers “Table, kitchen, or other
household articles and other parts thereof of
iron and steel”

Would the imported article falls with the

heading 70.13 or 73.23? Justify your
answer.
 EXAMPLE: COMPOSITE GOODS
Commodity: Classification of a glass flower vase with iron stand.

The essential character is conveyed by the

glass vase component of the subject composite
good and that the iron stand only serves as a
support for the vase. Classification therefore is
under Heading 70.13 by virtue of GIR 3(b)
WHAT IS THE ESSENTIAL CHARACTER OF A PPRODUCT?

The ESSENTIAL CHARACTER of a product may be determined

by the following factors:
• Nature of the component or article in relation to the product
as a whole;
• Bulk, Quality, Weight, or Value of the component or article;
• Preference of the buyer;
• The role of the component or article in relation to the use of
the product.
 GIR 3C

If the goods cannot be classified by reference to GIR 3b, this

rule states that those goods should be classified under the
heading which occurs last in numerical order from among those
that equally merit consideration.
 EXAMPLE
Commodity: Classification of a 2-in-1 ball-pen/pencil.

Heading considered in the classification 96.08

and 96.09.

Ball-pens are classified under heading 96.08

which covers “Ball point pens, felt tipped and
other porous-tipped pens and markers; fountain
pens, stylograph pens and other pens.
Pencils are classified under heading 96.09
which covers “Pencils other than pencils of
heading 96.08, crayons, pencil leads, pastels,
drawing charcoals, writing or drawing chalks
and tailors.

Would the imported article falls with the

heading 96.08 or 96.09? Justify your
answer.
 EXAMPLE
Commodity: Classification of a 2-in-1 ball-pen/pencil.

Subject article is a writing instrument consisting

of ball point pen and a pencil encased in a
single plastic body. GIR 3b cannot be applied
for subject article since both pen and pencil are
equally important in the function of this writing
instrument and determining which one among
the writing components imparts the essential
character of the good as a whole is impossible.

Therefore, applying the provision of GIR 3c,

subject article is classified under the
heading which occurs last in numerical
order among those considered, Heading
96.09.
 GIR 4

Goods which cannot be classified in accordance with the previous rules

shall be classified under the heading appropriate to the goods to which
they are most akin. “Akin” is defined as essentially similar (in character or
quality).
Therefore, classification under GIR 4 is by rule of similitude or similarity
in appearance or character.
GIR 4 is the most unpopular of the GIRs in terms of usage, as GIRs
1 to 3 will cover the classification of almost all goods.
 FACTORS TO DETERMINE KINSHIP IN GOODS:

• Description
• Character
• Purpose/intended use
• Designation
• Production Process
• Nature of the product
 EXAMPLE
Commodity: Classification of a full-body powered exoskeleton. Subject article is a
wearable robot shell that enables operators to lift as much as 90 kgs and is designed to prevent on-
the job- injuries by reducing the strain of manual labor.

Subject article is not the conventional type of

lifting machinery and is not specifically provided
for under any heading. The heading which
covers goods that are the most similar with the
subject article is Heading 84.28..

Heading 84.28 covers “Other lifting, handling,

loading, or unloading machinery (for example,
lifts, escalators, conveyors, teleferics).”

Therefore, by virtue of GIR 4, subject

exoskeleton is classified under heading
84.28 as a LIFTING MACHINE.
 GIR 5A

This rule is concerned with the classification of long-term use cases,

boxes, and similar containers which are presented with the articles they
are specially shaped or fitted to contain.

These containers should be durable and therefore capable of long

term use, and can provide protection for the articles they are designed
to contain during storage or transport. These traits would distinguish
these containers from simple packaging materials.
 EXAMPLE
Commodity: Classification of a flute with metal carrying case.
Flutes are classified under heading 92.05 which
covers “Wind musical instruments (for example,
keyboard pipe organs, accordions, clarinets,
trumpets, bagpipes), other than fairground
organs and mechanical street organs.
The flute was imported and presented at
Customs encased in its metal carrying case
which is sturdy and designed for the
instrument’s protection during storage or
transport.
GIR 5A provides that cases imported with the
items they are intended for are to be classified
under the Heading where the encased items
are classified.
Therefore, by virtue of GIR 5A , the flute
imported with its carrying case is classified
under Heading 92.05.
 REMINDER FOR GIR 5A

If the containers are presented or imported separately, then these are

classified in their own respective headings.
 GIR 5B

GIR 5(b) deals with packing materials and packing containers , other
than those stated under GIR 5(a) and of a kind normally used for
packing goods they are presented with.

This rule provides that these packaging materials and packing

containers, not normally intended to be reused, are to be classified
with the articles in which they are presented or imported.
 EXAMPLE
Commodity: Classification of 8 pieces chocolates, each wrapped in foil and
packed in cardboard boxes.

Chocolate confectioneries are classified under

Heading 18.06 which covers “chocolate and
other food preparations containing cocoa”.
EXPLANATION:
GIR 5(b) provides that packaging materials
normally used to package imported articles are
classified under the heading where the goods
they encased are classified. Therefore, by virtue
of GIR 5b, subject article, including its
packaging are classified under Heading 18.06.
However, the provisions of Rule 5b cannot be applied under the
following circumstances:
• To containers that give the imported article its essential
character.
• To packaging materials or packing containers clearly suitable for
repetitive use.

Under these circumstances, the packing materials or packing containers

are classified separately from its content.
 EXAMPLE
Commodity: Classification of a glass cookie jar with metal cap, imported
with chocolate chips.

Per the terms of GIR 5A, the rule does not apply
to containers which give the whole its essential
character. Such merchandise is to be classified
under the heading for the container.
 GIR 6

The Latin word mutatis mutandis is used when comparing to or

more cases or situations and is defined as making necessary
alterations while not affecting the main point at issue. (Oxford
Dictionary)
Note: This is the last rule of the GIRs and is used to govern
classification at the Subheading level. It provides that
classification is governed by the provisions of GIRs 1 to 5 but
applied at the Subheading levels within the same heading.
 EXAMPLE
Commodity: Classification of a necklace made up of pearls and semi-
precious stones.