Correct HS classification underpins customs compliance globally and requires a structured application of agreed interpretative rules to ensure consistency across jurisdictions.

The General Interpretative Rules (GIR) are a set of six internationally agreed rules used to classify goods under the Harmonized System (HS). They ensure that all customs authorities and traders use the same logic when determining how products are categorised for import, export, and tariff purposes.

Here is a look at each of the rules.

GIR 1

GIR 1 identifies that, for legal purposes, the terms of the headings and of the section or chapter notes determine the classification. In circumstances where the texts of the headings and of these notes cannot determine the appropriate heading with certainty, the other GIR should be considered.

GIR 2

GIR 2 (a) identifies that 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 incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this Rule), in circumstances where it is presented unassembled or disassembled.

The scope of GIR 2 is extended by GIR 2 (b), in reference to mixtures or combinations of that material or substance with other materials or substances. In accordance with this Rule, goods consisting of more than one material or substance must, unless another heading refers to them in their mixed or composite state, be classified in accordance with the principles of Rule 3.

GIR 3

GIR 3 outlines classification principles for goods which, prima facie, fall under two or more headings. GIR 3 (a) indicates that the heading which provides the most specific description should form the basis of classification. However, if two or more headings each refer to only one of the materials or substances contained in mixed or composite goods, or only partially refer to some of the articles included 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 description than the other.

GIR 3 (b) addresses mixed or composite goods, the assembly of different articles, and goods put up in sets. By application of GIR 3 (b), goods are classified in the heading applicable to the material or component which gives them their essential character. This Rule 3 (c) should only apply where goods cannot be classified by application of GIR 3 (a) or GIR 3 (b). In accordance, it provides that the heading which occurs last in numerical order amongst those which equally merit consideration in determining their classification should be used in this specific circumstance.

GIR 4

Rule 4 stipulates that goods which (for example because they have newly appeared on the world market) are not included within any heading of the HS shall be classified in the heading most appropriate to similar goods.

GIR 5

Rule 5 refers to the classification of cases, boxes, and similar containers presented with the articles for which they are intended. It identifies that:

Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially 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;

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.

The WCO identify that the classification of packing materials and containers not covered by Rule 5 (a) or 5 (b) is subject to the discretion of countries, which may take whatever measures they consider appropriate in this area.

GIR 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. In accordance with this Rule, the relative section and chapter notes also apply, unless the context otherwise requires.

This means that classification should only be assessed in comparison with other chapters, at the heading level, classification should only be compared with other headings (that share the same first two digits of the chapter), and at the subheading level, only subheadings (that share the same chapter and heading) should be compared.

For further practical insight into HS classification, valuation, and how customs authorities apply these rules in practice, explore the full Exporters Guide here