Study Guide
11. Structure of a chapter – Headings, subheadings and the dash system
11.3. Subheadings
The Harmonized System Committee has seen a need to subdivide headings 09.01, 09.02 and 09.04. In so doing, the Committee must observe a number of structural principles.
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Stay within scope A subdivision cannot accommodate products outside the scope of the parent text. · the content of the 5-figure subheadings cannot exceed the scope of the heading that has been subdivided · the content of the 6-figure subheadings cannot exceed the scope of the 5-figure subheading that has been subdivided. |
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Exhaust the parent The subdivisions must exhaust the parent heading (and/or subheading where appropriate). Hence the requirement in many subheadings for a residual classification, usually referred to as ‘Other’. |
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Mutually exclusive Each subdivision at the same level must be mutually exclusive of the others. |
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Example: Heading 09.01 broken down (coffee) Heading 09.01 has been subdivided into 5- and 6-figure subheadings. The 5- and 6-figure subheadings are largely based on the Standard International Trade Classification (SITC). Reading the format · Heading 09.01 contains three 5-figure subheadings (0901.1, 0901.2 and 0901.90) for coffee that is not roasted, roasted coffee and other. · The subheading 0901.90 is a residual subheading. It picks up everything that is classified within heading 09.01 that is not classified within the two previous 5-figure subheadings, (that is, 0901.1 and 0901.2). The normal drafting protocol is to signify the residual subheading with the number ‘9’ (or ‘99’). However, there are exceptions. · Note that neither 5-figure subheadings 0901.1 nor 0901.2 are set out in that format, but are left blank, whereas subheading 0901.90 is listed as such and has a zero (‘0’) as the sixth figure. Examination of these subheadings reveals that both subheadings 0901.1 and 0901.2 are further subdivided into 6-figure subheadings, whereas subheading 0901.90 is not. · The HS is an international six-figure classification system. The final figure in any particular classification hierarchy is always expressed as six figures. |
In classification structures such as this, it is very important for the classifier to work their way down the classification hierarchy:
1. first select the heading
2. then the 5-figure subheading
3. then the 6-figure subheading.
Do not merely select a 6-figure classification at random.
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Example continued: Heading 09.01 broken down (coffee) In heading 09.01, both subheadings 0901.1 and 0901.2 are further subdivided into: · subheadings 0901.11 and 0901.12 · subheadings 0901.21 and 0901.22 for goods being ‘not decaffeinated’ and ‘decaffeinated’. Choosing 0901.12 (decaffeinated) just because the word “decaffeinated” appears there would ignore the fact that the coffee may be roasted. Roasted decaffeinated coffee belongs at 0901.22. |