Study Guide

14. The Interpretation Rules

14.16. Interpretation Rule 2(b)

Rule 2(b) directs:

(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3.

Like Rule 2(a), this Rule contains separate principles.

Three principles inside Rules 2(b)

01 Mixtures and combinations

A heading referring to a material includes mixtures or combinations of that material with other materials or substances.

02 Goods made of given material

A reference to goods of a given material includes goods consisting wholly or partly of that material or substance.

03 Resolve under Rule 3

The classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3.

First principle: heading reference includes mixtures

Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances...

This part of Rule 2(b) directs that any reference in a heading to a particular good can be expanded to include mixtures or combinations of that good with other goods.

Example: chicken feed of wheat and oats

Consider a chicken feed mix comprising only of a mixture of wheat and oats. There is no heading that covers mixtures of these goods. if there were, the classification would be resolved by virtue of Interpretation Rule 1.

Although there is no heading that covers mixtures of wheat and oats, there is a heading that covers wheat (10.01) and there is a heading that covers oats (10.04).

Heading	What it covers
Heading 10.01	Covers wheat
Heading 10.04	Covers oats
No mixture heading	There is no heading that specifically covers a wheat-and-oats mixture

Let’s substitute the ingredients of the mix for the words ‘material or substance’ in Rule 2(b):

Any reference in a heading to...[wheat]...shall be taken to include a reference to mixtures or combinations of...[wheat]...with...[oats].

And conversely:

Any reference in a heading to...[oats]...shall be taken to include a reference to mixtures or combinations of...[oats]...with...[wheat].

If Rule 2(b) didn’t exist, there would be nowhere to classify mixtures such as this.

So this part of Rule 2(b) directs that, because there is a heading for wheat (10.01) and a heading for oats (10.04), it is possible to classify this wheat and oats mixture in one of those headings.

Note:

It is most important to realize that this is all the first principle is stating. It is not providing a classification answer.

Second principle: goods of a material include partial-material goods

The second part of Rule 2(b) directs:

...any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance…

Like the first part of Rule 2(b), this is extending the scope of headings, in this instance to include goods that are made out of different materials.

As with the sentence concerning mixtures, this part of Rule 2(b) is not providing a classification answer.

Third principle: when two or more headings apply, use Rule 3

When applying either of the first or second principles of Rule 2(b), the result will be a situation where two or more headings will be made available for consideration in determining where a product is to be classified. In determining which heading is to apply, the classifier is required to proceed as directed by the final sentence in Rule 2(b). It directs:

...The classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3.

The final sentence confirms that mixtures, combinations of materials or substances, and goods consisting of more than one material or substance cannot be classified by virtue of the provisions of Rule 2(b). If mixtures/combinations/goods are considered to potentially fall within two or more headings, they must be classified according to the principles set out in Interpretation Rule 3.

From Rule 2(b) to Rule 3 at a glance

Rule 2(b)

Extends heading scope to mixtures and composite goods

→

Two or more headings apply

Multiple potential classifications now exist

→

Rule 3

Resolves which heading applies

Note:

Rule 2(b) extends the terms of the headings. It does not provide a classification answer.