Study Guide
14. The Interpretation Rules
14.21. Interpretation Rule 3(b): essential character
By far the more widely used part of Rule 3 is Rule 3(b). It directs:
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Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to Rule 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. |
Rule 3(b) covers the classification of:
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01 Mixtures For example, the chicken feed mix of wheat and oats. |
02 Goods of different materials For example, a glass fruit bowl with an ornamental pewter rim. |
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03 Composite goods (joined) Components are not designed to be separated, for example, a pen incorporating a small calculating machine. |
04 Composite goods (separable) Components are mutually complementary and together form an entity not normally sold separately, for example, an ashtray with a metal stand and removable glass bowl. |
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05 Retail sets Sets put up for retail sale, for example, soap, bath salts, and a flannel. |
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Rule 3(b) directs that goods of these kinds shall be classified according to the component that gives the entity its essential character. The entity is classified as if it consisted entirely of that material or component.
This is the second occurrence of 'essential character' in the Interpretation Rules. Determining essential character for the purposes of Rule 3(b) is no easier than it is for Rule 2(a).
Continuing with the chicken feed mix: a relevant factor may be the proportion or weight of wheat to oats. If the mixture contains twice as much wheat as oats, there is some justification in arguing that wheat gives the mixture its essential character. The classification of the mixture would then fall within heading 10.01.
It is important to realize that the factor that determines essential character will vary between different types of goods. What is required is a consistent and rational approach by the classifier.
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Essential character can be undeterminable On many occasions essential character cannot be determined. This is not necessarily a problem; it is not an absolute necessity to always determine essential character. Indeed, it may not be always possible to determine the essential character. If this exercise requires more than a reasonable amount of deliberation, the answer may be that no one factor gives the goods that character. For a chicken feed mix of equal quantities of wheat and oats, all other factors being equal, neither grain imparts more essentiality than the other. In such cases, Rule 3 provides a further solution: Interpretation Rule 3(c). |