Tariff Classification:

PRINCIPLES GOVERNING
CLASSIFICATION OF GOODS.

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Tariff classification

n WHY TARIFF CLASSIFICATION?:

n For the purpose of applying the

correct rate of duty.

n To have the correct classification for

statistical purposes.
Principles of tariff classification

A commodity can be classified either by:

q Terms of the heading (rule 1)

q Notes to sections, chapters or

subheadings

q General interpretative rules 2 to 6

ITA 3
 Principles cont…

This can further be expounded into five parts;

n Terms of the heading

n Legal Notes Legal Force

n General interpretative rule

n Titles - Sections, chapters

n Explanatory notes No legal Force
n Alphabetical index
n Classification Opinions 4
 Legal Notes

q Section Notes
q Chapter Notes
q Subheading Notes

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 Legal Notes

n Classification by the use of section, chapter

and subheading notes.
n These are legal notes which appear on

most sections and chapters

ITA 6
 Types of the notes and their
functions
n Exclusions Notes.

n Definitions Notes.

n Classification Notes

n Notes for limitation/extension of scope

ITA 7
 Types of notes…..

Exclusion notes:
These notes provide list articles that must
not be included; e.g. Note 1 Chapter 3,
Note 1 Chapter 26 etc.
n Mostly used words like:
n This chapter does not cover
n Does not include,
n Does not apply.
ITA 8
 Types of Notes

Definition notes
These notes establish the meaning of
particular terms
n Example
n Note 4 Chapter 5
n Subheading Note 1 to chapter 17
n Note 2 to chapter 44
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 Types of Notes
Notes for classification provisions.

These notes which establish the

classification of certain goods.

n Note 1 to section VII

n Note 4 to section XVII
ITA 10
 Types of Notes

Notes for limitation and extension of scope

These notes limit/extent the scope of goods to be
classified in the section, chapter or subheading.
I. Limitation notes basically includes expressions;
“……applies only to…..” Note 2 to chapter 31
Note 9 to chapter 48.. limit
II. Extension notes basically includes expressions;
“……applies inter-alia (among other) to….”
q Note 4 to chapter 42

q Note 11 to chapter 48 ….extent

ITA 11
 Classification Procedure

A commodity can be classified either by;

q Terms of the heading,

q Notes to section, chapter or subheading.

ITA 12
 CLASSIFICATION PRINCIPLES
l When classifying a commodity you are suppose to
answer the following questions:
– What is it?
– What material is it made of?
– What is its functions or use?
– In what form is it usually imported?
– Is this the only possible classification?
l Theseare very important questions to consider for one
to come up with the most appropriate classification
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 Steps in classification

l Identify the commodity – (name, sub-class, class)

l Consider the material of manufacture
l Consider the function or use
l Consider the form it is presented for retail sale
– Then look for the
l Possible Section
l Possible Chapter
l Possible Heading
– If it is not in the terms of the heading consult chapter or
section notes
l Subheading
– N.B: Goods from Chapter 1 to Chapter 83 are generally
classified with reference to the material of manufacture while
goods above chapter 83 are classified with reference to their
function/use.
 Examples

n Classify the following commodities;

n Laptop computer

n Fork of wood

n Printed paper playing cards

n Chalk for writing on the blackboard.

 GROUP ASSIGNMENT 1

Systematically and logically classify the

following commodities to the heading level
1. Vanilla in powder form

2. Flours of Octopus unfit for human

consumption
3. Meat of dolphin

4. Natural butter derived from milk

5. Donkey’s teeth
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 The end

THANK YOU

11/26/22 17