Illustrations for the GIR

Rule 1: Stuffed Animal Toys

First impression is that the above item is classifiable under chapter 1 (live animals). However, under the
chapter notes exclusion (does not cover) paragraph (c), the classifier is directed to chapter 95.03 (stuffed
toys representing animals or non-human creatures), TH 9503.00.60 at 10% ad valorem duty.

Rule 2 (a) INCOMPLETE OR UNFINISHED RULE

Illustration: Wooden chairs imported without seat cushion

Although the above article is without the seat cushion, however the significant parts are present and it
has the essential character of the complete or finished article, the same shall be classified as complete
or finished goods. TH is 9401.40.00 at 15% ad valorem.

Illustration: Brassieres of cotton imported without its hook and eye

Although the bra is presented without its lock (hook and eye) as long the essential character is present
(the cup, strap, pad, etc.), the same shall be classified as complete or finished bra. TH 6212.10.19 at 15%
ad valorem.

Illustration: Cigarette Ashtrays (porcelain China, unpainted) that will be painted after importation shall
be classified as complete or finished article. TH 6913.10.10 at 10% ad valorem.

UNASSEMBLED OR DISASSEMBLED RULE

Illustration: A shipment of one box consigned to single consignee covered by one bill of lading consisting
of saddle, brake pedal, chain, sprocket, fork, top tube, rim, tire, frame and spokes when assembled
becomes a racing bike is classifiable under TH 8712. 00.10 at 15% ad valorem.

Illustration: AK-47 assault rifle, imported in disassemble state

Although unassembled, the same shall be classified under TH 9301.90.00 at 10% ad valorem

Rule 2 (b) This rule provides the provision in dealing with products composed of a mixture of materials
or substances, not classifiable through the use Rule 1 or Rule 2 (a). Also, this rule extends the scope of
Heading referring to a material or substance to include mixtures or substance.

Illustrations:

LPG steel tank fitted with a brass cylinder valve (lock valve), Heading 73.11 (containers for compressed
or liquified gas, of iron or steel (brass cylinder valve will not change or affect the heading 73.11 as steel
or iron container for gas, mixture or combination)

Shoe Brush made of wood with horse hair, TH 9603.90.40 at 7% ad valorem (combination or mixture
rule)

Articles of Natural Cork with Tin Lining used as bottle stopper or cork, TH 4503.10.00 at 1% ad valorem
(combination or mixture rule)
Stainless Steel Table Fork with handle that is coated with plastic is under Heading 73.23 (combination or
mixture rule)

Rule 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 made under the following rules:

Rule 3 (a): The most specific description rule. This rule applies to mixed or composite goods or
substances set or put up for retail sale. One of the description or classification is general and the other is
specific. Specific classification shall be preferred (Specific versus General).

Illustrations:
Wooden chair convertible into a step ladder
Heading 44.21 (other articles of wood) is a general description while 94.01 (seats) is specific description.
Applying the most specific description rule, the item shall be classified under TH 9401.40.00 at 15%

Corsets
Heading 62-08 (woman’s undergarments) is a general description while heading 62.12 (corselettes) is
specific description. Applying the most specific rule, corsets is classifiable under 6212.30.10/6212.30.90,
of cotton or of other textile materials, respectively.

Molded nylon carpet for cars

Heading 57.03 covers carpets and other textile floor coverings, tufted, whether or made up while 87.08
(parts and accessories of motor vehicles). Heading 57.03 is specific and 87.08 is general. Applying the
rule, the item shall be classified under TH 5703.20.90 at 15% ad valorem

Rule 3 (b) Mixture and Composite Goods Rule (Classification by Set Rule). This rule applies when the
item presented consist of 2 or more materials combined or mixed in one (1) set and put up in sets for
retail sale.

Illustrations:
(Mixture or Predominating Rule or which is greater rule) Chocolate truffle coffee consisting of
decaffeinated coffee mixes (40% by weight) with sweetened cocoa powder (60% by weight)
Heading 21.01 covers preparations of coffee while Heading 18.06 includes preparations containing
cocoa. Applying the predominating or greater rule, the item is classifiable under Heading 18.06, the
greater weight.

Sack containing mixed or combined 70% wheat (10.01) and 30% barley (10.03) to be used in making
beer. Applying the predominating or greater rule, the item is classifiable under Heading 10.01, the
predominant rule.

(Classification by Set Rule) A can of pineapple juice made of pineapple, sugar, food coloring and water
shall be classified as one set under Heading 20.09 (juices)

(Composite Goods Rule or Principal Components Rule) Watch Strap fitted with a compass imported
without watch
Compasses are covered by Heading 90.14 which includes “direction finding compasses while watch
straps is under Heading 91.13 (watch straps, watch bands or watch bracelets). Heading 91.13 is the
principal object while Heading 90.14 is accessory object. The item is classifiable under Heading 91.13

Rule 3(c) The last numerical order rule. This Rule states that goods should be classified under the
Heading that OCCURS LAST IN NUMERICAL ORDER from among those that equally merits consideration
(item is squarely or equally classifiable under 2 Headings or TH if the goods cannot be classified under
Rule 3 (a) or 3 (b).

Illustration:
2 in 1 ball pen and pencil (equally classified under 96.08 and 96.09)
Ball pens are classified under Heading 96.08 which includes “ball point pens and pencils are classified
under 96.09. Applying the last numerical order rule, the last Heading which appears last in the numerical
order is 96.09. Item is classifiable under Heading 96.09

A shipment of one sack containing mixed barley (50%) and oats (50%). Barley is under Heading 10.03
while oats is Heading 10.04. 10.04 appears last in the numerical order.

Rule 4 (Similitude Rule or Kinship Rule) If the goods cannot be classified under Rule 3(c), the same shall
be classified under the Heading appropriate to the goods to which they are most akin or similar.
This rule relates to goods which cannot be classified in any Heading or subheading of the nomenclature
because there is no heading which even prima facie covers the articles to be classified. In classifying, the
first process is to make a comparison of the imported articles with other articles which are similar or
akin, so that articles to which the imported articles are most akin can be determined. Having determined
which the articles are akin, the next step is to determine the proper Heading and TH. This rule is
designed to take care of a situation where, owing to technical advances in science, inventions, (goods
are not yet included in the AHTN) articles may be produced which is not really classifiable under any of
the present Heading or subheading of the nomenclature.
In applying this rule, the following are to be considered: description, character or materials, quality
and purpose.

Illustrations:
Urinary Test Paper – This article consists of strips of test paper (glucose, protein and glucose protein
test paper) pasted on a plastic holder that when dipped in a stirred urine sample, develop a certain color
corresponding to the color table of the specific test.
Subject article is a modern invention in the field of bio-chemistry where no specific heading or
subheading is provided for under the AHTN. However, although the test paper is treated with chemicals,
the fact that it is an instrument for testing color for chemical analysis is deemed most akin to a
colorimeter falling under Heading 90.18 where it should be classified.

Kat Knapp Apparatus -This article consists of a vibrator with built-in electronic motor and automatic
control timer-switch designed for installation under the bed which when switch on, produces vibrations
capable if effecting body massage, relieving muscle fatigue and tension of the person lying on the bed.
Subject article is a modern invention and as such it is not specifically provided for in any Heading or
subheading of the nomenclature. In accordance with Rule 4, Kat Knapp apparatus should be classified
under Heading 90.19 (Massage apparatus/appliances by virtue of its functions which is most akin to a
massage apparatus or appliances).

Rule 5 (a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases
and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable
for long-term use and presented with the articles for which they are intended, shall be classified with
such article when of kind normally sold therewith. Contents of the container rule.

Illustrations:
Guitar imported with the specially shaped or fitted case for the said musical instrument shall be
classified under Heading 92.02 (guitar and the guitar case), TH 9202.90.00 at 10% ad valorem.
NOTE: When guitar case is imported without the guitar, the case shall be classified under Heading 42.02

Gold Necklace imported with the specially shaped or fitted case for the said jewelry shall be classified
under Heading 71.14 (gold necklace and jewelry case), TH 7114. 19.00 at 10% ad valorem.
NOTE: When necklace case or box is imported without the necklace, the case shall be classified under
Heading 42.02

.45 Caliber Gun imported with the specially shaped or fitted case for the said firearm shall be classified
under Heading 93.02 (gun and gun case), TH 9302.00.00, at 15% ad valorem.
NOTE: When .45 Caliber Gun case or holster is imported without the gun, the case shall be classified
under Heading 42.02

The above rule however shall NOT apply to containers which give the whole its essential character.
Illustrations:
Glass cookie jar with metal cap, imported with assorted chocolate cookies and candies
By reason of the last part of the Rule 5(a), the jar gives the whole its essential character. It specially
designed container or jar which has the essential character of container used for the conveyance or
packing of goods, the same shall be classified under Heading 70.10.

Container for liquid with a pump has the essential the essential character of container used for the
conveyance or packing of liquid, the same shall be classified under Heading 70.10.

Rule 5(b) Contents of the container rule

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 goods.

Illustration:
6 pieces chocolates, each wrapped in foil and packed in cardboard boxes are all classifiable under
Heading 18.06 (chocolate and other food preparations containing cocoa). If the cardboard box is
presented without the chocolates, the same shall be classified under section 48 (paper and
paperboard).
3 pieces red roses, each wrapped packed in cardboard boxes with transparent plastic are all classifiable
under Heading 06.03 (cut flowers). If the cardboard box is presented without the roses, the same shall
be classified under section 48 (paper and paperboard).

However, this provision is NOT binding when such packing materials or packing containers are clearly
suitable for repetitive use.

Illustrations: Butane filled steek tanks and Propane filled steel tanks
In the above items, the butane and propane shall be classified under Heading 27.11 (petroleum gases)
while the steel tanks shall be classified separately under Heading 73.11 because the steel tanks as
container for gases are suitable for repetitive use.

Reusable plastic drums (39.25) filled with vinegar (22.09)

Rule 6 (Classification of Goods at the Subheadings Level/Same Level Within the same Heading) 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 (Rule 1) and,
mutatis mutandis (comparison of two (2) materials/goods), to the above rules, on the understanding
that the only subheadings at the same level are comparable. For the purposes of this Rule the relative
section and chapter notes (Rule 1) shall also apply, unless the context otherwise requires.

Illustration: A necklace made up of pearls and precious stones

Above item is classifiable under Heading 71.16 which covers “articles of natural or cultured pearls,
precious or semi-precious stones. TH 7116.10.00 provides for pearls and TH 7116.20.00 is for precious or
semi-precious stones. The necklace made of both pearls and precious stones, hence classifiable in both
TH. By comparing (mutatis mutandis) the materials used in the necklace, the necklace is within the
same Heading 71.16 and classifiable under 2 subheadings. Rule 3(a) cannot be applied because the
necklace is not composite and both TH 7116.10.00 and 7116.20.00 are specific classification and
description. Rule 3(b) on the hand cannot be also applied because necklace is the essential character
(this is not a mixture or composite of items which gives the essential character. The classification falls
under Rule 3(c), the last numerical order rule. Therefor, the classification is TH7116.20.00, the TH which
occurs last in the numerical order.