1. Why the order matters
The Harmonized System has six General Interpretive Rules.
They are applied in order. A rule is only reached if the earlier rules do not settle the question.
2. Rule 1
Classification is determined by the terms of the headings and any relative section or chapter notes.
What this does
Most goods are classified by Rule 1 alone.
The point people miss
Section and chapter notes override heading text. Many exclusions live in the notes, not in the headings.
3. Rule 2
2(a)
Incomplete or unfinished articles that have the essential character of the finished article are classified as the finished article.
2(b)
Mixtures and combinations of materials.
In practice
This rule decides how unassembled goods and mixed materials are treated.
4. Rule 3
When goods appear classifiable under two or more headings:
3(a)
The most specific heading prevails.
3(b)
Classification by essential character.
3(c)
The heading that occurs last in numerical order.
The sequence
(a) first, then (b), and only then (c).
5. Rule 4
Goods most akin to those being classified.
Rarely used. It is the fallback.
6. Rule 5
Packing containers and packing materials.
7. Rule 6
Classification at the subheading level, by the terms of the subheadings and the subheading notes, applying the rules above by analogy.
8. The order in practice
Start with the heading text and the notes.
If two headings both appear to fit, apply Rule 3.
Determine the subheading under Rule 6.
Do not skip to Rule 3 when Rule 1 already answers the question.
9. Closing view
The sequence is a discipline, not a formality.
Most classification disputes trace back to a rule applied out of order.
*This article is based on the General Interpretive Rules of the Harmonized System. Exporters should confirm classification with the relevant customs authority.*