TaxTMI 
TaxTMI 
Classification of Goods
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....System" or simply "HS", developed by the World Customs Organization (WCO) which is applied uniformly by more than 137 countries the world over. The Second Schedule contains description of goods chargeable to export duty. As the nomenclature also specifies the Customs duty rates (Tariff), it is called the 'Indian Customs Tariff' or 'Tariff Schedule'. 2. Methodology of classification: 2.1 In the Tariff Schedule, commodities/products are arranged in a fixed pattern with the duty rates specified against each of them. The pattern of arrangement of goods in the Tariff is in increasing degree of manufacture of commodities/products in the sequence of natural products, raw materials; semi finished goods and fully finished good....
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....ation of international commercial arrangements, multilateral tariff agreements etc. should refer to correlation tables showing the transposition of sub-headings from older version to the newer and the newer to the older version of the HS. 2.4 For purposes of uniform interpretation of the HS, the WCO has published detailed Explanatory Notes to various headings/sub-headings. This forms the basis for interpreting the HS. The WCO, in its various committees discusses the classification of individual products and gives classification opinion on them. Such information, though not binding in nature provides a useful guideline for classifying goods. 2.5 The process of arriving at a particular heading/sub-heading code, either at four digit, six dig....
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.... last in the numerical order as per Rule 3(c). Rule 4 states that goods which cannot be classified by application of the preceding rules may be classified under the heading appropriate to the goods to which they are most akin. Rule 5 applies to packing materials / articles in which the goods are carried. Rule 6 is applied to arrive at the appropriate sub-heading within a heading and for that purpose the provisions of Rules 1 to 5 apply mutatis mutandis on the understanding that sub-headings at the same levels are comparable. For the purpose of Rule 6 the relative Section and Chapter Notes also apply unless the context otherwise requires. 2.7 While classifying goods, the foremost consideration is the 'statutory definition' and any g....