CLASSIFICATION

Logo AND ORIGIN OF GOODS

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REFERENCE DOCUMENTS

 Giáo trình Phân loại và xuất xứ hàng hoá HVTC 2012.

 Câu hỏi và bài tập phân loại, xuất xứ hàng hoá HVTC 2016.
 Tariff Nomenclature: https://tinyurl.com/um9zbb9
 Law on origin of goods : https://tinyurl.com/wou5uwl
 Website:
 http://www.wcoomd.org/
 http://www.ecosys.gov.vn
 http://comis.covcci.com.vn
 https://www.facebook.com/groups/giaidapthutuchaiquan
 https://www.facebook.com/groups/thutuchaiquanxuatnhapkhau/

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Chapter 1
GENERAL OVERVIEW OF HARMONIZED SYSTEM (HS)

1.1 INTRODUCTION TO HARMONIZED SYSTEM (HS).

1.2 STRUCTURE OF THE HARMONISED SYSTEM (HS).

1.3 GENERAL INTERPRETATIVE RULES (GIRs)

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1.1. INTRODUCTION TO HARMONIZED SYSTEM (HS).
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1.1.1.Historical background of the HS.

 The first international Customs nomenclature was created in

1931 in Geneva : the Geneva Nomenclature.
 The Customs Co-operation Council published Brussels Tariff
Nomenclature (BTN) in 1955.
 The HS Nomenclature was largely based on the CCCN.

1.1.2.DEFINITION OF HARMONIZED SYSTEML (HS).

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What is HS?
 multipurpose international product
nomenclature developed by the World
Customs Organization (WCO)
 the headings and subheadings and their
related numerical codes, the Section, Chapter,
and Subheading Notes,
 and the General Rules for the interpretation of
the Harmonized System
 set out in the Annex to this Convention.

Harmonized Commodity Description and LCoding

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System
• Implemented internationally in 1988 by the HS Convention
• Annex to the Convention: the HS Nomenclature
• Harmonized System is now the 7th edition, the 2022 version
• Multipurpose Goods Nomenclature
• Basis for Customs Tariffs and Trade Statistics of 200 countries and
economies. 160 Contracting Parties
• More than 98 % of World trade in terms of the HS
• The universal economic language and code for transportable goods
• Vietnam ratified the HS Convention on March 6, 1998
• The HS Convention had come into force in Viet Nam on 1 January
2000.

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Amended 85.39 (HS 2017) LED lamps

Why to Amend the HS :

 Changes in trade patterns
 Technological progress
 Clarification of texts
 Environmental issues
 Simplification

New subheadings for hybrid and electric

Deletion of heading 84.69 and references
vehicles in Chapter 87 (HS 2017) to “typewriters”. (HS 2017)

Classification: ‘LED light bulbs’’ Logo

HS-2012

8543.70- Other machines and

apparatus:
 85.39- Electric filament or discharge
lamps, including sealed beam lamp
units and ultra violet or infra-red
lamps; arc-lamps
=> HS2017: 8539.50

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HS 2017- Heading 96.20

selfie stick

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 Rotterdam Convention Logo

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(Explanatory Notes)

• Not an integral part of the HS

• Official interpretation of the HS
• Indispensable complement to the System

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Compendium
of
Classification
Opinions
• Set out in the order of the headings and
subheadings of the HS
• Classification Opinions adopted by the WCO
• Specific nature of these Classification
Opinions

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 The Harmonized System (HS) L o g o

Main objectives :

– To facilitate international trade

– Collection, comparison and analysis of trade statistics

– Standardization of trade documentation and

transmission of data

The Harmonized System (HS)L o g o

Many purposes, such as :

Customs tariffs
international trade statistics
rules of origin
internal taxes
trade negotiations
transport tariffs and statistics
controlled goods
Customs controls and procedures

1.2-STRUCTURE OF THE HARMONISED SYSTEM

L o g(HS)
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6 GIRs
General Interpretative Rules LEGAL NOTES
(GIRs)

Headings and subheadings

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 The Structure of the Harmonized SystemL(HS)
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2017 edition 2022 edition
• 21 Sections
The structure
• 21 Sections

• 96 Chapters
• 96 Chapters
• 1,228 Headings (4
• 1,222 Headings (4
digits)
digits)
• 5,609 Groups of
• 5,387 Groups of
commodities
commodities
identified by
identified by
description (6
description (6 digits)
digits)

L oHS
Principles used in the Arrangement of the go

Materials of the commodity

Uses or functions of the commodity
Stage of processing or degree of manufacturing

L oHS
Principles used in the Arrangement of the go
 Materials content

 Example at the Section level:

 Vegetable products -Section II,
 Base metals and articles of base metals -Section XV.
 Examples at the Chapter level:
 Rubber –Chapter 40
 Wood - Chapter 44
 Cotton- Chapter 52

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 L oHS
Principles used in the Arrangement of the go
 Uses or Functions of Articles
 Example at the Section level
- Vehicles, Vessels and Aircraft : Section XVII.
- Arms and Ammunitions : Section XIX.
 Examples at the Chapter level
- Tools of base metal : Chapter 82
- Motorcars : Chapter 87.
- Aircraft : Chapter 88.

L oHS
Principles used in the Arrangement of the go
Example of degree of processing as related to Sections

Live Animals Section VIII Section XX

Section I (semi-processed) (finished product)
(unprocessed)

Unworked Semi-finished Finished

Raw materials products products products

41.02 43.04 94.03

01.04
Live sheep Sheep Skin Fur paddings Sofa

L oHS
Principles used in the Arrangement of the go

Sub-Chapters

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

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 L oHS
Principles used in the Arrangement of the go

Arrangement of Headings
Example on degree of processing

Rough wood 44.03 (Raw materials)

Chemical wood pulp 47.04 (Unprocessed)
News print 48.01 (Semi finished products)
Newspaper 49.02 (Finished products

Numbering System Logo

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

Numbering System Logo

Headings: XX.XX
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)

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 Numbering System Logo
Sub-Headings

XXXX.XX
Chapter numbers sub heading numbers
Heading numbers

Dash System Logo

• At the subheading level classification must be at the 1-

dash level first, then the 2-dash, 3-dash, etc. level
• The HS uses only 1- and 2-dash subheadings

LEGAL NOTES
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Legal Notes
Sections and Chapters have "Notes" which
provide mandatory instructions for classifying
Goods and subheading Notes which guide
classification within subheadings.

Types of Notes
There are three types of notes;
 Section notes
 Chapter notes
 Subheading notes

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 LEGAL NOTES
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• Section, Chapter and Subheading Notes

–To define the Scope of a

• Section
• Chapter
• Heading (or group of headings)
• Subheading

– Form an integral part of the HS

– To be able to apply legal notes in classification

LEGAL NOTES
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Section
Notes

Chapter Notes

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Chapter Notes

Subheading Notes

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 Functions of notes Logo
1. Illustrative Notes; these are

(a)Exhaustive:
Exhaustive enumerates what is contained in
Sections, Chapters, terms of headings.
For example;
Note 11 to Chapter 39

(b)Non-exhaustive:
These point out a non-exhaustive list of goods
falling in a heading.
For example;
Note 4 to Chapter 15

Functions of notes Logo

(2). Exclusion Notes
These exclude some articles from a
Section, Chapter or a heading
Keywords: “does not cover” or“covers all . .. . except:”

(EX): Notes 1 chapter 17:

1. This Chapter does not cover:
(a) Sugar confectionery containing cocoa (heading 18.06);
(c) Medicaments or other products of Chapter 30.

Functions of notes Logo

(3).Definitions Notes
These notes ascertain the meanings of
particular terms or expressions

Keywords: “means”

For example;
Note 5 to Section XVI defines “machine” as articles
of Chapter 84 and 85

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 Functions of notes Logo

(4). Classification notes

These notes instruct users how to classify
goods falling in two or more headings
For example;
Note 4 to Section XVII

Functions of notes Logo

(5).Limitation Notes

Clarify the scopes

lists of classifiable goods
 expressions “… apply only to …” or “… covers only
…” or “..does not cover. .”
 Note 1 to Chapter 82 (This chapter cover only)

Functions of notes Logo

(6). Preference Notes

Give priority to one or several headings
over one or several other headings
For example;
Note 2 to Chapter 84
Heading 84.01 to 84.24 take prefererence
over heading 84.25 to 84.80

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 Functions of notes Logo

(7).Constructive Notes
Expression like “… to be regarded as …” or
“applies only...”

For example;

Note 3 to Chapter 12
(Are to be regarded as seeds of a kind used for
sowing)

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Features of the heading texts

(i)Article with Specific or with broad

meanings
(ii)Headings with Punctuation Marks
 Semicolon (;)
 Commas(,)
 Heading with a colon(:)
(iii)Special provisions (Not otherwise
required)

Features of the heading texts

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(i)Article with Specific or with broad meanings

(i)(a)Product or articles-Specific meaning

 Heading 10.06 “Rice”
 Heading 95.03 “tricycles and scooters, other toys”
(b)Products or articles-broad meaning
 Heading 39.26 “other articles of plastics
 Heading 09.01 “ Coffee which includes roasted or not
roasted”

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 Features of the heading texts
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(ii) Punctuation Marks
(a) Semicolon “;”
Separates items.
For example 42.02
“Trunks, suit-cases, vanity-cases, executive- cases, brief- cases, school
satchels, spectacle cases, binocular cases, camera cases, musical instrument cases,
gun cases, holsters and similar containers ; travelling-bags, insulated food or
beverages bags, toilet bags, rucksacks, handbags, shopping-bags, wallets, purses,
map- cases, cigarette-cases, tobacco-pouches, tool bags, sports bags, bottle-cases,
jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather
or of composition leather, of sheeting of plastics, of textile materials, of vulcanised
fibre or of paperboard, or wholly or mainly covered with such materials or with
paper”.

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Features of the heading texts

(b) commas(,)
Commas are distributive
For example, heading 69.11
Tableware, kitchenware, other household
articles and toilet articles, of porcelain or china.

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Features of the heading texts

(c) Heading with a colon(:) at the end of the

description indicates that the one dash sub
heading is futher divided.
For example;
Heading 01.03 Live swine
0103.10 -Pure bred breeding animals
- Other:
0103.91 - -Weighing less than 50kg
0103.92 - -Weighing 50 kg or more

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Features of the heading texts

(iii) Special provisions

The expression “Otherwise requires”.
Example:
Note 1 to Chapter 25 reads “Except where their context or Note 4
to this Chapter otherwise requires, the headings of this
Chapter cover only products which are in the crude state or
which have been washed (even with chemical substances
eliminating the impurities without changing the structure of
the product), crushed, ground, powdered, levigated, sifted,
screened, concentrated by flotation, magnetic separation or other
mechanical or physical processes (except crystallisation), but not
products which have been roasted, calcined, obtained by
mixing or subjected to processing beyond that mentioned in
each heading.”

Customs Classification Logo

Definition

Classification is the act of placing goods

into the correct category.

Customs Classification refers to a

particular category in the Nomenclature
in which a product is classified or
categorized.

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Identify the commodity as presented

What material or substance is it made of ?

classifying What is its function or use ?

goods ?
Under what form is it presented/imported/exported?

Taking into account any potential HS provision

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1.3. GENERAL INTERPRETATIVE RULES
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(GIRs).
General Interpretative Rules
• There are six General Rules
• They are an Integral part of the Nomenclature
• THE Rules set out The Principles for classification in
the HS
• They provide for Uniform Application of the HS
Nomenclature
•They should be applied in hierarchical order
•The first five GIRs relate to the 4-digit headings; GIR 6
relates to classification in the 5- or 6-digit subheadings

GENERAL INTERPRETATIVE RULE

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GIR 1 GENERAL RULE

GIR 2 (a) INCOMPLETE OR UNFINISHED, UNASSEMBLED
OR DISASSEMBLED
GIR 2 (b) MIXTURES OR COMBINATIONS- SINGLE HEADING
GIR 3 MIXTURES,SETS IN TWO OR MORE HEADINGS
GIR 3 (a) MOST SPECIFIC
GIR 3 (b) ESSENTIAL CHARACTER
GIR 3 (c) LAST IN NUMERICAL ORDER
GIR 4 MOST AKIN
GIR 5 (a) SPECIAL CONTAINERS
GIR 5 (b) PACKING MATERIALS & CONTAINERS
GIR 6 SUBHEADING TEXTS, 5,6-DIGIT LEVEL

GENERAL
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