Study Guide

Case study: Identifying a sports bag

The following case study runs through Part 3. It shows how the classification process comes together.

Step 1: Independent assessment

The assessment is to be made independently of the Nomenclature and should start with the basics:

•    What are the goods?

•    What function do the goods perform?

•    How do the goods perform their function?

•    What are the goods made of?

•    Who sells, buys or uses the goods?

Most of this information can be obtained by examining samples or descriptive literature, together with the classifier’s own general knowledge. With goods such as these, it should be easy for the importer to supply a sample, however, it may be necessary to consult trade experts or trade journals or publications such as encyclopedias. Again, classifiers should be aware of the limitations of trade experts, as discussed above.

In making the assessment, you should bear in mind goods must be assessed in the condition they are imported, having regard to their inherent features only.

Let’s examine our sports bag. Let’s say an examination shows the following:

•    it is made of woven cotton canvas

•    it has motifs on the side to indicate sporting activities

•    accompanying advertising indicates its purpose is to carry sporting attire such as sports shoes, a tracksuit, a change of clothes and a towel, to sporting venues or a gymnasium.

Step 2: List possible areas of the Nomenclature

Once satisfied that an independent assessment has been made, the next step is to list all the possible areas of the Nomenclature where the goods may be classified. This list should include all the headings that are appropriate to the goods description, including any headings that relate to the material from which the goods are made - the ‘materials’ areas of the Nomenclature. The list may include headings, chapters, sections, or all three.

The ‘must know’ chapters (42, 83 and 96) should also be automatically included, until their contents become familiar.

After an examination of the contents of the Nomenclature, the following becomes apparent:

•    Equipment for sports is classified within heading 95.06.

•    Travel bags and similar containers are classified within heading 42.02.

•    Section XI covers textile articles, in particular:

o   The headings of Chapter 52 cover cotton and fabrics but not articles thereof. The headings of Chapter 52 may therefore be disregarded.

o   The headings of Chapter 62 cover cotton apparel, other than knitted apparel. The subject goods are not articles of apparel. The headings of Chapter 62 may therefore be disregarded.

o   The headings of Chapter 63 cover other made-up textile goods. In particular, heading 63.07 covers other made-up articles.

•    The headings of two of the ‘must know’ chapters (83 and 96) are not relevant.

Having gone through those steps, three identified headings - namely 42.02, 63.07 and 95.06 - are left for consideration when proceeding to the next step in the classification process.

The next step is to obtain a 4-figure classification for the goods, in accordance with Interpretation Rule 1. We will look at this shortly.

01 Identify the goods

Describe the goods independently of the Nomenclature, based on what they actually are.

02 Locate areas

Identify sections and chapters where the goods may be covered.

03 Select headings

Identify and select appropriate headings within those areas.