TARIFF

CLASSIFICATION

THE PROCESS OF DETERMINING THE

CORRECT AHTN CODE WHERE A PARTICULAR
PRODUCT SHOULD BE PROPERLY CLASSIFIED,
TO THE EXCLUSION OF THE OTHERS WHICH
MERIT CONSIDERATION.
PRE-EXERCISE ON
CLASSIFICATION

IDENTIFY THE RIGHT AHTN

CODE OF THE SUBJECT
ARTICLES. STRICTLY
4 MINUTES PER ITEM.
1.
500 CYLINDRICAL TANKS THAT ARE
SEEMLESS STEEL CONTAINERS WITH 50
LITERS CAPACITY SPECIFICALLY
DESIGNED TO CONTAIN COMPRESSED
OXYGEN.
2.
100 UNITS OF BRAND NEW, FULLY
DISASSEMBLED, SUZUKI MOTORCROSS
MOTORCYCLES WITH RECIPROCATING
INTERNAL COMBUSTION PISTON ENGINE
OF 500 CC CYLINDER CAPACITY.
3.
NON-PEDESTRIAN CONTROLLED
TRACTOR WITH A CYLINDER CAPACITY
OF 1,100 CC CAPABLE OF BEING FITTED
WITH VARIOUS AGRICULTURAL
IMPLEMENTS, IMPORTED FITTED WITH
A DISC HARROW USED FOR BREAKING
UP THE SOIL.
SECTION 1610
GENERAL RULES FOR
INTERPRETATION
a. There are SIX GENERAL RULES.
- the FIRST FIVE rules relate to classification
in the 4-digit headings.
- Rule 6 relates to classification at the subheading
level.

b. The rules set out the principles for classification in the

HS nomenclature.

c. They are an integral part of the Nomenclature, providing

uniform application and interpretation.

d. The GIRs are incorporated in the CMTA, RA 10863

under Section 1610.
APPLICATION OF THE GIRs
• The application of the GIRs 1-4 should always be
in SEQUENTIAL ORDER. Rule 1 is to be
taken into consideration FIRST.
• Rule 5 and 6 stand on their own to be applied
as needed.
• Goods must first be classified in the 4-digit HS
heading whose terms most specifically describe
the goods.
• Only 4-digit headings are comparable.
EXAMPLE
Classification of an electric toothbrush

- Heading 8509 as an “ Electro-mechanical

domestic appliances with self-contained electric
motor. OR
- Subheading 9603.21 which provides for
“Toothbrushes”
(Heading 9603 provides for “Brooms,
brushes…, not motorized)
EXAMPLE:
COMMODITY- Live pure-bred goats
What is the correct AHTN Code?

a. 0102.2100
b. 0103. 1000
c. 0104.1010
d. 0104.2010
GENERAL RULES FOR INTERPRETATION
• RULE 1- TERMS OF THE HEADINGS,
SECTION/CHAPTER NOTES
• RULE 2(A)- INCOMPLETE OR
UNFINISHED;UNASSESEMBLED OR DISASSEMBLED
• RULE 2(B)- MIXTURES OR COMBINATIONS
• RULE 3- 2 OR MORE HEADINGS
• RULE 3(A)- MOST SPECIFIC
• RULE 3(B)- ESSENTIAL CHARACTER
• RULE 3(C)- LAST IN NUMERICAL ORDER
• RULE 4- MOST AKIN
• RULE 5(A)- SPECIAL CONTAINERS
• RULE 5(B)- PACKING MATERIALS & CONTAINERS
• RULE 6- SUBHEADING RULE
Sec. 1610. General Rules for the Interpretation (GRI). –The classification of
goods and its tariff nomenclature as provided pursuant to this Act shall be
governed by the following principles:ChanRoblesVirtualawlibrary

(1) The titles of sections, chapters and

subchapters are provided for easy reference
only. For legal purposes, classification shall be
determined according to the terms of the
headings and any relative section or chapter
notes and, provided such headings or notes do
not otherwise require, according to the following
provisions:
The titles of sections, chapters and
subchapters are provided for easy
reference only.

Example:
Subject article: Rifle buttstock made of wood

What is the correct chapter of the subject

article in the AHTN?
CHAPTER 44 OR CHAPTER 93?
Titles of Chapters:

Chapter 44- “ Woods and Articles of Woods; wood

charcoal
VS
Chapter 93- “Arms and ammunition; parts and
accessories thereof”
REMEMBER:
The classification of goods cannot be
justified based solely on the title of the
Section, Chapter or Sub-chapter which is
only provided to point the part of the HS
Nomenclature where the classification of
the subject goods are likely to be found.
Classification shall be determined according to
the terms of the headings and any relative
section or chapter notes and, provided such
headings or notes do not otherwise require.

Example: ( TERMS OF THE HEADINGS)

Subject articles: Playstation 4 video game
consoles.

What is the correct heading in the AHTN?

“ Heading 95.04 covers “Video game consoles and
machines, articles for funfair, table or parlour games,
including pintables, billiards, special tables for casino
games and automatic bowling alley equipment”

EXPLANATION:
By virtue of GIR 1 (terms of the heading), Playstation
4 video game consoles are classified under Heading
95.04 since the subject articles are covered by the
terms (or wordings) of the Heading, “ video
game consoles”
 RELATIVE SECTION OR CHAPTER
NOTES
Subject Article:
Rifle buttstock made of wood

What is the correct heading in the AHTN?

93.05

Title of Chapter 44 is “Wood and Articles of Wood; wood

charcoal”

HOWEVER, Note 1(n) to Chapter 44 states that the Chapter

DOES NOT cover parts of Firearms (Heading 93.05)
(2)(a) Any reference in a heading to the goods
shall be taken to include a reference to the same in
their incomplete or unfinished form or
state: Provided, That the incomplete or
unfinished goods have the essential
character, as presented, of the complete or
finished goods. It shall also be taken to include a
reference to the same, in their complete or
finished form or state (or falling- to be classified
as complete or finished by virtue of this Rule),
presented unassembled or disassembled.
TAKE NOTE:

THIS RULE DOES NOT APPLY IF THE TEXT

OF THE HEADING OR THE RELEVANT LEGAL
NOTES EXCLUDE THE UNFINISHED OR
UNASSEMBLED PRODUCT UNDER
CONSIDERATION.
EXAMPLE (INCOMPLETE GOODS)

SUBJECT ARTICLE:

WOODEN CHAIRS IMPORTED WITHOUT SEAT

CUSHION.

WHAT IS THE CORRECT AHTN CODE?

9401.6990
EXAMPLE (UNASSEMBLED GOODS)
SUBJECT ARTICLE:

AK-47 ASSAULT RIFLE, IMPORTED

UNASSEMBLED

WHAT IS THE CORRECT AHTN CODE?

9301.9000
(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.
EXAMPLE
SUBJECT ARTICLES:
LPG STEEL TANKS, EACH FITTED WITH A
BRASS CYLINDER VALVE

WHAT IS THE CORRECT AHTN CODE?

7311.0029
(3) When by application of Rule 2(b) or for any
other reason, goods are, prima facie, classifiable
under two (2) or more headings, classification
shall be effected as follows:
(a) The heading which provides the most
specific description shall be preferred to
headings providing a more general description.
However, when two (2) or more headings each
refer to part only of the materials or substances
contained in mixed or composite goods or to part
only of the items in a set put up for retail sale,
those headings are to be regarded as equally
specific in relation to those goods, even if one of
them gives a more complete or precise description
of the goods.
“ A DESCRIPTION BY NAME
IS MORE SPECIFIC THAN A
DESCRIPTION BY CLASS”
EXAMPLE: (A. SPECIFIC DESCRIPTION)
SUBJECT ARTICLES:

WOODEN CHAIRS CONVERTIBLE INTO A

STEP LADDER

WHAT IS THE CORRECT HEADING?

HEADING 9401
HEADING 4421
9401.6990
(b) 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 3(a), shall be classified as if they
consisted of their essential character, insofar
as this criterion is applicable.
WHAT IS ESSENTIAL CHARACTER?
The essential character of a product may be
determined by the following factors:
a. Nature of the component or article in
relation to the product as a whole;
b. Bulk, Quality, Weight or Value of the
component or article;
c. Preference of the buyer; or
d. The role of the component or article in
relation to the use of the product.
HOWEVER,
THE STATED FACTORS IN DETERMINING THE
ESSENTIAL CHARACTER VARY BETWEEN
DIFFERENT KINDS OF PRODUCTS AND
THEREFORE, THE ESSENTIAL CHARACTER
MUST BE DETERMINED ON A
CASE-TO-CASE BASIS DEPENDING ON THE
PRODUCT.
EXAMPLE: (B. ESSENTIAL CHARACTER)
SUBJECT ARTICLES:
CHOCOLATE TRUFFLE COFFEE CONSISTING
OF DECAFFEINATED COFFEE MIXED (40% BY
WEIGHT) WITH SWEETENED COCOA
POWDER (60% BY WEIGHT)

ON WHAT HEADING IS IT
CLASSIFIABLE?
HEADING 21.01
HEADING 18.06
1806.1000
EXAMPLE: (B.ESSENTIAL CHARACTER)
SUBJECT ARTICLES:
WATCH STRAP FITTED WITH A COMPASS
IMPORTED WITHOUT THE WATCH.

ON WHAT HEADING IS IT
CLASSIFIABLE?
1. 90.14 (COMPASS)
2. 91.13 (WATCH STRAPS)
9113.9000
EXAMPLE: ( ESSENTIAL CHARACTER)
SUBJECT ARTICLES:
SET CONSISTING OF A BATTERY CHARGER
AND 4 PCS AA RECHARGEABLE BATTERIES.

ON WHAT HEADING IS IT
CLASSIFIABLE?
HEADING 85.04
HEADING 85.07
8504.4090
(c) When goods cannot be classified by
reference to 3(a) or 3(b), they shall be
classified under the heading which
occurs last in numerical order among
those which equally merit
consideration;
EXAMPLE (C. LAST IN NUMERICAL
ORDER)
SUBJECT ARTICLES:
2-IN-1 BALLPEN/PENCIL

ON WHAT HEADING IS IT
CLASSIFIABLE?
HEADING 96.08
HEADING 96.09
9609.1090
(4) Goods which cannot be classified in
accordance with the above Rules shall be classified
under the heading appropriate to the goods to
which they are most akin.
(5) In addition to the foregoing provisions, the
following Rules shall apply with respect to the goods
referred to therein:
(a) Camera cases, musical instrument cases, gun
cases, drawing instrument cases, necklace cases and
similar containers, specially shaped or fitted to contain
specific goods or set of goods, suitable for long-term
use and presented with the goods for which they are
intended, shall be classified with such goods when of a
kind normally sold therewith. The Rule does not,
however, apply to containers which give the whole its
essential character; and
EXAMPLE:
SUBJECT ARTICLES:
FLUTE WITH METAL CARRYING CASE

IDENTIFY THE CORRECT AHTN CODE.

9205.9090
(b) Subject to the provisions of Rule 5(a), packing
materials and packing containers presented with
the goods therein shall be classified with the goods
if they are of a kind normally used for packing
such goods. However, this provision does not
apply when such packing materials or packing
containers are clearly suitable for repetitive use.
EXAMPLE
SUBJECT ARTICLES:
6 PIECES CHOCOLATES, EACH WRAPPED IN
FOIL AND PACKED IN CARDBOARD BOXES.

IDENTIFY THE CORRECT AHTN.

1806.9090
EXAMPLE
SUBJECT ARTICLES:
GLASS COOKIE JAR WITH METAL CAP,
IMPORTED WITH CHOCOLATE COOKIES.

IDENTIFY THE CORRECT HEADING

70.10
(6) For legal purposes, the classification of goods
in the subheadings of a heading shall be
determined according to the terms of those
subheadings and any related subheading notes
and, mutatis mutandis, to the above Rules, on the
understanding that only subheadings at the same
level are comparable. For the purposes of the
Rule, the relative section and Chapter Notes also
apply, unless the context otherwise requires.
END OF MODULE TEST
GIRs 1 & 6
GIR 2a
GIR 3b
GIR 3b
GIR 5a
GIR 4
GIR 1
GIR 1 & 6
GIR 1
GIR 5b
 GRI 1- 9605.0000
Sewing kit designed as a travel set which includes:
scissors, different colors of thread, needles,
measuring tape etc.