UNIVERSITY OF HONG KONG LIBRARY. This book was received in accordance with the Books Registration Ordinance Section 4

Transcription

1

2 UNIVERSITY OF HONG KONG LIBRARY This book was received in accordance with the Books Registration Ordinance Section 4

3 Hong Kong Harmonized Commodity Description and Coding System Handbook Census and Statistics Department Hong Kong

4 Produced by the Census and Statistics Department Printed by the Government Printer, Hong Kong

5 Contents Preface Page Part 1 Facts on the Harmonized Commodity Description and Coding System 1 Part 2 The General Interpretative Rules, the Section Notes and the Chapter Notes 5 Part 3 How to use the Hong Kong Imports and Exports Classification List 9 (Harmonized System) Part 4 Classification of Textiles and Textile Products 12 Part 5 Classification of Machinery and Mechanical Appliances, Electrical Equipment, 22 Sound Recorders and Reproducers Part 6 Classification of Other Goods 27 Annex 1 General Rules for the Interpretation of the HS 47 Annex 2 Telephone Directory for Enquiries on the HS 49 Annex 3 Answers to Classification Exercises 50

6 Preface Hong Kong is expected to adopt, for import and export declaration purposes, a new commodity classification system based on the Customs Co-operation Council's Harmonized Commodity Description and Coding System. The new system will be called the "Hong Kong Harmonized System" (HK HS). When it is implemented, importers and exporters will be legally required to use its commodity descriptions and codes to make import and export declarations instead of using the Standard International Trade Classification (SITC) Revision 2 based system (HK SITC) currently in use. The Census and Statistics Department is responsible for the classification and compilation of import and export statistics and, accordingly, has been responsible for designing the HK HS and for the related publicity and training activities. This Handbook has been compiled by the Census and Statistics Department and is intended to be read in conjunction with the new Hong Kong Imports and Exports Classification List (Harmonized System), or HKIECL(HS) for short, which contains the HK HS. Part 1 of the Handbook gives a comprehensive account of the HS and the changes to be noted by importers and exporters in submitting declarations when the HK HS is implemented. Part 2 discusses the General Interpretative Rules and Section Notes, Chapter Notes and Subheading Notes, with some illustrative examples. Part 3 describes how to locate the correct HK HS description and code from the HKIECL(HS) for a given commodity; methods include the application of the General Interpretative Rules and the Section, Chapter and Subheading Notes in systematic steps; the use of an Alphabetical List; and the use of the conversion table between the HK SITC and the HK HS codes. Parts 4 to 6 of the Handbook focus attention on specific commodity groups. Part 4 is concerned with textiles and textile products; Part 5 with machinery and mechanical appliances, electrical equipment, sound recorders and reproducers; and Part 6 with goods not covered in Parts 4 and 5. In each of these Parts, readers' attention is drawn to the structure of the HK HS, the highlights of the Section Notes and Chapter Notes, with examples illustrating how the correct HK HS descriptions and codes can be found from the HKIECL(HS) in a systematic way. Each Part contains a number of useful exercises for readers to help them to master the new system. The Handbook will be referred to in the HS training seminars which will be organized for importers and exporters by the Census and Statistics Department shortly before the HK HS is implemented. Details of the seminars will be announced in the media at an appropriate time. Further enquiries on the HK HS may be directed to the Census and Statistics Department by reference to the telephone directory provided in Annex 2 of the Handbook. *> Commissioner for Census and Statistics Hong Kong September 1987

7 Part 1: Facts on the Harmonized Commodity Description and Coding System What is the "Harmonized Commodity Description and Coding System"? 1.1 The "Harmonized Commodity Description and Coding System", hereafter referred to as the "Harmonized System" or "HS", has been developed by the Customs Co-operation Council (CCC) for classifying and coding goods in international trade. It is suitable for use by the various interests concerned with international trade, including Customs and statistical authorities. Many countries are planning to implement the HS on 1 January 1988 for Customs and statistical purposes. What does the CCC HS harmonize? 1.2 The HS has been designed to provide a multi-purpose nomenclature that can suit the needs of Customs and statistical authorities and all those concerned with world trade. It harmonizes a variety of Customs, statistical and transport nomenclatures used in different parts of the world. In particular, the United Nations Standard International Trade Classification (SITC) Revision 2 and the Customs Co-operation Council Nomenclature (CCCN), the two most widely adopted international nomenclatures for trade statistics and Customs tariff purposes, have been considered in the design of thehs. What are the advantages of adopting the CCC HS? 1.3 The HS is promoted by the CCC because the international adoption of a standardised multi-purpose international trade classification system will: (i) reduce the expense incurred in redescribing, reclassifying and receding goods as they move from one classification system to another in the course of international trade; (ii) facilitate the standardization of trade documentation and the transmission of data; (iii) facilitate the comparison and analysis of international trade statistics; and (iv) reduce uncertainty in the negotiation and interpretation of trade agreements. What is the Hong Kong Harmonized System (HK HS)? 1.4 Following this international move, Hong Kong will also adopt, in synchronization with her major trading partners, a new CCC HS-based classification system called the Hong Kong Harmonized System (HKHS). It will replace the present classification based on the SITC Revision 2 for trade declaration purposes. This will provide local importers and exporters with a common Customs terminology for their effective communications with overseas suppliers and buyers and will facilitate comparison of trade statistics and trade negotiations with Hong Kong's trading partners. What is the structure of the CCC HS? 1.5 The CCC HS is made up of: (i) General Rules for the Interpretation of the HS (the General Interpretative Rules); (ii) Section and Chapter Notes (including Subheading Notes); and (iii) a list of headings, each comprising a code and a description, arranged in a systematic order and, where appropriate, subdivided into subheadings.

8 1.6 The General Interpretative Rules specify the general classification principles to be followed in applying the HS, so that a given product can always be uniquely classified in one heading and subheading. The Section and Chapter Notes, which appear at the beginning of each Section and Chapter, define the precise scope of the headings and subheadings of that Section and Chapter. They make the commodity description more concise and ensure the precision of interpretation. These Rules and Notes are an integral part of the HS, i.e. they must always be applied together with the HS descriptions and codes. They are discussed in detail in Part 2 of this Handbook. 1.7 The CCC HS headings and subheadings are arranged in 96 Chapters Ch. 1 to Ch. 76 and Ch. 78 to Ch. 97, with Ch. 77 reserved for future use. The Chapters are grouped into 21 Sections. For example, Section VII covers two Chapters: Ch. 39 on "Plastics and articles thereof and Ch. 40 "Rubber and articles thereof". 1.8 Under the 96 Chapters, there is a total of digit headings. The first 2 digits of each heading indicate the Chapter containing that heading, while the latter 2 digits indicate the position of the heading in the Chapter. For example, heading 0103 ("Live swine") is the third heading in Ch. 1 which covers "Live animals". 1.9 Most of the 4-digit headings are subdivided into two or more 1-dash subheadings (characterised by a dash placed in front of the description). Where necessary, these 1-dash subheadings are further subdivided into 2 or more 2-dash subheadings (characterised by 2 dashes placed in front of the description). At the finest level, the CCC HS comprises 5019 separate subheadings of goods, each identified by a 6-digit code. The first 4 digits correspond to the heading number, while the 5th and 6th digits identify the 1-dash and 2-dash subheadings respectively. If a heading is not subdivided, the 5th and 6th digits will be "00"; if a 1-dash subheading is not subdivided, then the 6th digit will be "0". For example, 6-digit Heading CCC No. HS code Description Textile wall coverings Rubberised textile fabrics, other than those of heading No Adhesive tape of a width not exceeding 20 cm Other: Knitted or crocheted Other 1.10 In general, the CCC HS arranges goods in order of their degree of manufacture: raw materials, unworked products, semi-finished products and finished products. For example, the initial Chapters cover animals and agricultural products, while latter Chapters cover industrial and high-technology products. The same progression also exists within the Chapter and at lower levels of disaggregation. What is the structure of the HK HS? 1.11 Except for certain modifications to meet local requirements (to be explained below), the HK HS has the same structure as the CCC HS. The same General Interpretative Rules and Section/ Chapter Notes are followed, subject to conditions mentioned in Part 2 of this Handbook On the classification of commodities, the HK HS differs from the CCC HS in the following manner:

9 Number of Sections Chapters Headings Subheadings Items CCCHS HKHS All the CCC HS Sections, Chapters and headings are adopted without modification in the HK HS (except that the periods in the codes are deleted for easier presentation), as should be the case in all countries adopting the HS. There is, however, an additional heading (9801), contained in Ch. 98 and Section XXII, devoted to commodities and transactions not classified according to kind. In the HK HS, postal packages valued at less than HK$4,000 and declarations of a value of HK$5,000 or less need not be classified according to kind and are identified by items and respectively At the subheading levels, however, the HK HS may differ from the CCC HS in order to suit Hong Kong's local requirements. This is characterised by: (i) Hong Kong's adoption of a partial application of the CCC HS; and (ii) the extension of the CCC HS heading/subheading numbers to 8 digits to accommodate additional local subdivisions By partial application, what is meant is that some, but not all, of the digit subheadings defined in the CCC HS are adopted in Hong Kong. In fact, only about half of the HK HS classification follows the CCC HS up to the 6th digit; for the rest, only the first 5 digits and sometimes the first 4 digits are followed. If only 5 digits are followed, the 6th digit is replaced by "0". If only 4 digits are followed, the 5th and 6th digits are replaced by "00" An individual country may meet its own local requirement for classifying goods in greater detail than the CCC HS by adding more digits to the CCC HS codes. For example, the U.S.A. is going to adopt a 10-digit import nomenclature and another 10-digit export nomenclature. In Hong Kong, an 8-digit nomenclature will be adopted for both imports and exports. If there is no local subclassification, the 7th and 8th digits will be "00". If the number of local subclassifications does not exceed 9, the 7th digit will be used to distinguish the items and the 8th will be "0"; otherwise, both digits will be used to represent the items In any event, the 8-digit HK HS item codes should always be used for import and export declaration when the HK HS is implemented in Hong Kong Some examples illustrating the relation between the HK HS and the CCC HS are given below: HK HS Codes Explanation In the CCC HS, "unworked glass" (heading 7002) is classified by shape, viz. balls ( ), rods ( ) and tubes ( ). Hong Kong does not intend to adopt such detailed breakdowns initially, and only one item is assigned to unworked glass and The CCC HS 1-dash subheading covers backed copper foil of a thickness not exceeding 0.15 mm, and it is subdivided into those of refined copper ( ) and those of copper alloys ( ). This classification is considered unnecessary and only the 1-dash subheading ( ) is adopted. However, there are considerable imports of copper-clad laminates and therefore a separate HK HS code is assigned to it. Since there is no other subclassification, copper-clad laminates are coded under item , and the rest put under

10 HK HS Codes Explanation 6! to Heading 6112 covers track suits, ski suits and swimsuits, knitted or crocheted. The HK HS classifies such products in much greater detail. Instead of following the CCC HS 1-dash and 2-dash subheadings, the HK HS codes run from to , covering 36 separate items. Why is Hong Kong going to adopt partial application? 1.19 First, as the CCC HS differs significantly in structure from the SITC Revision 2, which has been used since 1978 in Hong Kong for declaration and statistical purposes, it is difficult for Hong Kong to adopt the CCC HS in full initially. Hong Kong has limited experience in using the CCCN as well as time and resources constraints. Secondly, the digit HK HS codes already represent a 50% increase in the number of codes compared with the present digit SITC-based codes. If the CCC HS is applied in full, the number of HK HS codes might increase to some This is considered undesirable initially, as difficulties would be encountered by importers and exporters in declaring commodities in such detail and by Government staff in processing trade data. What are the changes to be particularly noted by importers and exporters when the HK HS is in force? 1.20 The Hong Kong Imports and Exports Classification List (Harmonized System), hereafter referred 10 as the HKIECL(HS), is now on sale at the Government Publications Centre at Connaught Place, at the Collection Offices of the Customs and Excise Department at Star House and Harbour Building, and at the Census and Statistics Department at Wanchai Tower I. This new classification will be used for trade declaration of commodities imported/exported on or after 1 January 1988, subject to confirmation in early October Under the present SITC-based system, commodities shipped on the same vessel to/from the same country having item code numbers with identical first 3 digits can be declared on the same declaration form. When the HK HS is in force, it is permissible to submit one declaration in respect of commodities having 8-digit HK HS codes with identical first 4 digits, provided that the other conditions are satisfied. However, commodities imported/exported under the same bill of lading can continue to be declared on the same declaration In connection with the changeover to the HK HS, clothing and footwear items, subject to the clothing training levy, specified in the schedule to the Industrial Training (Clothing Industry) Ordinance, Chapter 318, are recoded and redescribed in HK HS. This Schedule is also appended to the HKIECL(HS) In the SITC-based system, a flat rate of HKS5 per declaration (Form 1 A) is applied to imports of food items classified under Section 0 of the SITC. Under the HK HS, food items are scattered in the first 22 Chapters. These items, to which a flat rate is applicable for imported shipments, are specified in the Schedule of Food Items appended to the HKIECL(HS) All the legislative amendments required due to the changeover to the HK HS for trade declaration will be announced in the Government Gazette prior to the implementation date. Based on what classification will future trade statistics be compiled? 1.25 Statistical tabulations in the SITC, as recommended by the United Nations, are most useful for economic and statistical analyses. Both the U.S.A. and the U.K. plan to publish their foreign trade statistics in SITC after they have adopted the HS. The same is planned for Hong Kong. However, some basic statistics analysed by HK HS will also be available from the Census and Statistics Department. Conversion tables between the HK HS and HK SITC codes are available in the HKIECL(HS) and in major trade statistics publications.

11 Part 2 : The General Interpretative Rules, the Section Notes and the Chapter Notes What are the General Interpretative Rules? 2.1 As there is an enormous number of tradeable products, difficulties are often encountered in classifying a product under one of the several thousand codes in a commodity classification system. The six General Interpretative Rules are an integral part of the HS and serve as a set of classification principles to ensure uniform legal interpretation. 2.2 The Rules are listed on page 20 of the HKIECL(HS) and they are reproduced in Annex 1. It is advisable to study them carefully before turning to the details of the classification. When classifying a product, the Rules must be applied in sequence, until the product can be uniquely classified under one item. How to interpret the six Rules 2.3 Rule 1 states that classification is determined, in the first instance, by the terms of the headings and of the Section or Chapter Notes. Example: Chilled apricots should be classified under heading 0809 ("Apricots,..."), since Note 2 to Chapter 8 states that "chilled fruits... are to be classified in the same headings as the corresponding fresh fruits". However, there are cases where the texts of the headings and of these Notes cannot, by themselves, determine the appropriate heading with certainty. Classification is then effected by applying the other Interpretative Rules. 2.4 It should be noted that the Section and Chapter titles are for reference only and have no legal bearing on the classification of goods. Example: Section XV is entitled "Base metals and articles of base metal", but many articles of base metal (e.g. brass buttons) are classified in other Sections. 2.5 Rule 2(a) extends the scope of any heading which refers to a particular article to cover not only the complete article but also that article presented in a form which is: (i) incomplete or unfinished, provided that it has the essential character of the complete or finished article; or (ii) unassembled or disassembled, usually for reasons such as the requirements or convenience of packing, handling or transport. Example: A motor vehicle without an engine is coded as if it were a complete or finished vehicle. 2.6 Rule 2(b) extends the scope of any heading covering a material or substance to include mixtures or combinations of that material or substance. Under this Rule, goods consisting of more than one material or substance must be classified according to the principles of Rule 3, unless another heading refers to them in their mixed or composite state. Example: Milk to which vitamins or minerals have been added is classified as milk, according to Rule 3(&). However, it should be noted that this Rule does not apply where specific provisions exist in the headings or the Section or Chapter Notes. Example: Note 1 of Chapter 9 ("Coffee, tea, mate and spices") governs the classification of mixtures of spices.

12 2.7 Rule 3 provides classification principles for goods which, prima fade, fall under two or more headings. 2.8 Rule 3(d) stipulates that goods should be classified in the heading giving the most specific description. In general, a description by name is more specific than a description by class; and a description which identifies goods clearly and precisely is more specific than one which is less complete. Example: New tyres for motor vehicles should be classified under tyres of rubber (heading 4011) rather than parts and accessories of motor vehicles (heading 8708). However, this rule is not applicable to mixed or composite goods or to items put up in sets for retail sale. In such cases, headings to which the components belong are to be regarded as equally specific, even if one of them gives a more complete description than the other. In such cases, Rules 3(b) and 3(c) should be applied. 2.9 Rule 3(6) deals with mixed or composite goods, goods consisting of an assembly of different articles and goods put up in sets. By application of this Rule, goods are classified in the heading applicable to the material or component which gives them their essential character. The factor which determines essential character varies among different kinds of goods. It may be determined by the nature of the material or component, its bulk, quantity, weight or value or the role of a constituent material in relation to the use made of the goods. Example: A set of foodstuffs containing a packet of uncooked spaghetti, a sachet of grated cheese, a small tin of tomato sauce, packed in a paperboard case, should be classified under "Pasta,... such as spaghetti,..." of heading However, this rule should not be applied if a specific provision is given in the Section or Chapter Notes or is referred to in a particular heading text Rule 3(c) applies only where goods cannot be classified by application of Rule 3(0) or Rule 3(6). It provides that goods should be classified in the heading which occurs last in numerical order amongst those which equally merit consideration in determining their classification. Example: A conveyor belt of plastic on one surface and of vulcanised rubber on the other can be classified under heading 3926 ("Other articles of plastics") or heading 4010 ("Conveyor belts of vulcanised rubber"). The latter cannot be considered as more specific, since each heading refers to only one of the materials of which the belt is made. Hence Rule 3(d) cannot be applied. It is not possible to determine which surface gives the essential character and thus Rule 3(6) does not apply. According to Rule 3(c), the belt should be classified under heading Rule 4 provides that goods which are not specifically covered by any heading of the HS shall be classified in the heading appropriate to the goods to which they are most akin. Kinship can be determined by factors such as description, character or use. In practice this provision is little used, since the HS incorporates many residual headings covering goods not elsewhere specified Rule 5(a) governs the classification of specially shaped cases, boxes and similar containers presented with the articles for which they are intended. Example: Plastic soap boxes should be classified under heading 3401 ("Soap;...") if they are presented with the soap. However, if presented separately, the containers are to be classified in their own appropriate headings. Example: Empty plastic soap boxes should be classified under heading 3924 ("... other household articles and toilet articles, of plastics"). Moreover, this rule does not apply to:

13 (i) containers which, by reason of their unusually high value in relation to their contents, are not normally sold therewith, such as a silver caddy containing tea, and (ii) containers which give the whole or the set its essential character, even if they are normally sold with their contents, such as an ornamental ceramic bowl containing sweets Rule 5(6) applies more generally to packing materials and packing containers presented with the goods they hold. Example: Binocular cases should be classified under heading 9005 with the binoculars. However, this provision does not apply when such packing materials or packing containers are clearly suitable for repetitive use. Example: Metal drums or containers of iron or steel for compressed or liquefied gas Rule 6 states that the classification of any product to its appropriate subheading in the HS may be considered only after the product has been classified to its appropriate 4-digit heading. In any event, the terms of the subheadings or Subheading Notes must be given precedence. The Rule also specifies that only subheadings of the same level are comparable in determining which one is more appropriate (that is, the choice of 1-dash subheading may be made only on the basis of the texts of the 1-dash subheadings of the same heading). Example: For classification to subheading level of a unit of bedroom furniture made of wood and metal, the first step is to decide on the 4-digit heading (heading 9403 "Other furniture and parts thereof"). Then all 1-dash subheadings are reviewed. There are two 1-dash subheadings which merit consideration, viz.: Other metal furniture Wooden furniture of a kind used in the bedroom By virtue of Rule 3(a), neither of them can be regarded as giving a more precise description, since each refers to one of the materials contained in the article (although one describes it more fully). If it is not possible to determine which material gives the article its essential character, the article is classified under 1-dash subheading by application of Rule 3(c). Subsequently, the appropriate item within that subheading would be identified, without regard to the subdivisions of other 1-dash subheadings. What are Section Notes, Chapter Notes and Subheading Notes? 2.15 Certain Sections and Chapters are preceded by Notes which, like the Interpretative Rules, form an integral part of the HS and have the same legal force. Some of these Notes, grouped under the title "Subheading Notes", refer solely to the interpretation of subheadings The function of the Notes is to define the precise scope and limits of each subheading, heading (or group of headings), Chapter or Section. This is achieved by means of: either (a) a general definition delimiting the scope of a subheading or heading or the meaning of particular terms; or or or (b) a non-exhaustive list of typical examples; (c) an exhaustive list of the goods covered by a heading or group of headings; (d) exclusions, which list certain articles that must not be included in a particular subheading, heading (or group of headings), Chapter or Section. Are all the General Interpretative Rules, Section Notes, Chapter Notes and Subheading Notes applicable to Hong Kong? 2.17 Yes. But since Hong Kong applies HS partially, the application of Subheading Notes mentioned in Rule 6 refers to those subheadings adopted in Hong Kong only.

14 2.18 A Subheading Note is applicable to all those 8-digit items with the same first 6 digits as the subheading. If a certain 6-digit subheading is not applied in Hong Kong, but the products referred to in the Subheading Note are all classified under one or more 8-digit HK HS item(s), the subheading code in the Note would be replaced by the item codes and the word "subheading(s) No(s)." would be replaced by "HK HS code(s)" In Parts 4-6, there are some classification examples illustrating the application of the General Interpretative Rules, the Section Notes and the Chapter Notes. They are summarized below for easy reference. Type A. General Interpretative Rules Example no. (a) Rulel 6.2,6.3,6.9 (b) Rule 2 4.6,5.1,6.13 (c) Rule3(a) 5.6,6.15 Rule 3(6) 4.4,5.2,6.12 Rule 3(c) 4.3 (d) Rule 4 (e) Rule (/) Rule 6 B. Section Notes and Chapter Notes (a) definitions 4.1,4.5,5.4,5.5,6.1,6.14 (b) typical examples/exhaustive list 6.5, 6.7, 6.8 (c) exclusions 4.Z , 6.15, 6.16

15 Part 3: How to use the Hong Kong Imports and Exports Classification List (Harmonized System) How does the Hong Kong Imports and Exports Classification List (Harmonized System) compare with the SITC-based Hong Kong Imports and Exports Classification List? 3.1 The Hong Kong Imports and Exports Classification List (Harmonized System), hereunder referred to as the HKIECL(HS) for short, provides importers and exporters with a new classification of commodities, the HK HS, to be used in place of the HK SITC in making trade declarations as from the implementation date to be officially announced. 3.2 The HKIECL(HS) contains the General Interpretative Rules, Section Notes and Chapter Notes (including Subheading Notes applied to Hong Kong) of the CCC HS and the detailed HK HS commodity descriptions and codes. Both an alphabetical list of articles with the corresponding HK HS codes and a conversion table between the HK SITC and the HK HS codes are provided to facilitate users searching for the correct HK HS code and making cross-reference. Moreover, a Schedule of Food Items specifying the items which are subject to a flat charge of HK$5 on lodgement of each import declaration is appended as Appendix 1 to the HKIECL(HS). The Schedule to the Industrial Training (Clothing Industry) Ordinance specifying the clothing (including footwear) items which are subject to the clothing levy for domestic exports is also reproduced as Appendix 2 to the HKIECL(HS) for ease of reference. 3.3 Similar to the SITC-based Hong Kong Imports and Exports Classification List, the HKIECL (HS) also contains a list of country descriptions and codes and an alphabetical list of countries, abbreviations of units of quantity and equivalent weights and measures. How to locate the required HK HS commodity codes from the HKIECL(HS) 3.4 As the commodity classification under the HK HS is by Section, Chapter, 4-digit heading and finally 8-digit item code, users can always search through this hierarchy to look up the commodity code required. However, users must first be familiar with the classification principles given in the General Interpretative Rules. 3.5 The titles of the Sections and Chapters are listed on pages of the HKIECL(HS). Users should first identify from this list the Section and Chapter that would be likely to cover the commodity item before turning to the detailed commodity classification on pages to find the relevant 4-digit heading, 1-dash and 2-dash subheadings, and finally the 8-digit item code. However, it must be noted that the Section and Chapter titles are only for ease of reference and have no legal bearing on classification. 3.6 Users should read through the respective Section and Chapter Notes (if any) before going through the headings and item codes classified in the Section/Chapter. At times, it may be quickly discovered from these Notes that the commodity to be classified is excluded here but classified under another Section or Chapter. After a heading or an item code that seems to be relevant is found, the relevant Section or Chapter Notes relating specifically to the heading or item should be studied in detail. This would enable users to ascertain whether the heading or item code under consideration is really relevant. 3.7 The above procedure can be illustrated by the example below. The commodity to be classified is "women's blouses, knitted, of polyesters".

16 10 Step Action 1 Make sure that the General Interpretative Rules are clearly understood. 2 Look up pages of the HKIECL(HS), and find Section XI (Sec. XI) covering "Textiles and textile articles", under which Chapter 61 (Ch. 61) on "Articles of apparel and clothing accessories, knitted or crocheted" seems relevant. 3 Read the Notes to Sec. XI and Ch. 61. As there is no obvious indication that the product is classified elsewhere, go on to screen the 4-digit headings under Ch Find heading "6106", which reads "women's and girls' blouses, shirts and shirtblouses, knitted or crocheted". 5 There are two 8-digit item codes for man-made fibres. Should it be "synthetic" or "artificial"? This is not specified in the Notes to Sec. XI and Ch. 61, but since the distinction concerns man-made fibres (Ch. 54 and 55), the relevant Notes should also be checked. Note 1 to Ch. 54 (man-made filaments) states that polyesters should be classified as "synthetic". Hence the item should be " women's or girls' blouses, shirts and shirt-blouses, knitted or crocheted, of synthetic fibres". How to use the Alphabetical List of Articles (the Alpha List) on pages of the HKIECL(HS) 3.8 The Alpha List arranges descriptions of popularly traded commodities in lexicographic order, with the relevant item code given against each of them. As the products covered by an 8-digit HK HS item code can sometimes be described by more than one name, there are more entries in the Alpha List than the number of HK HS items. For example, the item code " " appears three times in the Alpha List: HKHS Codes Blouses, knitted or crocheted, of synthetic fibres Shirts, women's or girls', knitted or crocheted, of synthetic fibres Shirt-blouses, women's or girls', knitted or crocheted, of synthetic fibres 3.9 To find the code of a commodity item using the Alpha List, the key word(s) must be identified. The question to ask is "What kind of article is this?" Hence "blouse" should be sought instead of "women's", "knitted", or "polyester", 3.10 The Alpha List is by no means exhaustive and there is no guarantee that one can always find the required commodity code by simply referring to it. Some circumstances may warrant the application of relevant Section/Chapter Notes and the General Interpretative Rules to decide on the correct classification. Even if a commodity description can be located in the Alpha List, the relevant Section/Chapter Notes should be checked to avoid misinterpretation. How to use the conversion table between the HK SITC codes and the HK HS codes 3.11 The conversion table shows the one or more HK HS codes that correspond to each SITC code. In some cases, the conversion, though not perfect, is the best approximation that one can achieve between the two sets of codes. For users who are familiar with the HK SITC, this table offers an efficient means of finding the appropriate HK HS code.

17 If the HK SITC code corresponds to several HK HS item codes, the correct HK HS code for a particular product can be identified by examining the relevant HK HS texts describing the short-listed items. In all cases, including those of one-to-one correspondence, the appropriateness of the HK HS code should be checked by referring to the description and relevant Section/Chapter Notes. How to obtain assistance in case of difficulties 3.13 A series of training seminars on the application of the HK HS will be organised one or two months before the implementation date of the HK HS. Details will be announced in late An Enquiry Team has been set up to provide assistance to importers and exporters. A telephone directory is shown in Annex 2. For the Enquiry Team to operate efficiently, enquirers are urged to read the HKIECL(HS) and this Handbook first, so that the scope of any problem can be narrowed.

18 12 Part 4: Classification of Textiles and Textile Products How are textile goods arranged in HK HS? 4.1 Textiles and textile products are covered in Section (Sec.) XL The first six Chapters (Ch ) classify textile fibres, yarn and fabrics according to their nature, Ch cover various categories of textile articles or special textiles, Ch deal with articles of apparel and clothing accessories and Ch. 63 is for other made up textile articles. Diagram 1 depicts the structure of the textile Chapters. 4.2 Of the six Chapters covering textile material to finished fabric, Chapters 52 (cotton), 54 and 55 (man-made fibres) are relatively long. For ease of reference, the arrangements of headings within each of these three Chapters are shown in Diagrams 2 to 4 respectively. 4.3 To classify a clothing item covered by Ch , the following product information is generally required: (a) whether the article is knitted/crocheted or not; (b) type of article whether it is an overcoat, shirt, undergarment, etc.; (c) users whether it is for men or boys, for women or girls, or for babies; and (d) type of material whether it is of cotton, wool, etc. 4.4 In general, Ch. 61 covers knitted/crocheted articles while Ch. 62 covers those not knitted/crocheted. There is, however, one exception brassieres, girdles and other similar articles, whether or not knitted or crocheted, are all covered in heading Diagram 5 illustrates the structure of articles of apparel and clothing accessories of textile materials. 4.5 Note that worn clothing and rags should fall in Ch. 63 and headgear (which is regarded as a clothing accessory in the SITC) is classified in Ch. 65. Clothing of genuine or artificial leather and furskin are not covered by Sec. XI, but are grouped together with other articles of leather and furskin in Ch Similarly, articles of apparel and clothing accessories of plastic materials and of vulcanised rubber are classified in Ch Note also that the clothing training levy applies to items specified in the Schedule to the Industrial Training (Clothing Industry) Ordinance, which includes articles such as footwear items not classified in Ch Highlights of Section and Chapter Notes 4.6 Mixtures of two or more textile materials should be classified as if consisting wholly of that one textile material which predominates by weight over any other single textile material. This is stated in Note 2(A) to Sec. XL Note 2(B) and (C) define the rules and the scope of Note 2(A). 4.7 Subheading Note 2(A) extends the scope of Section Note 2 to products of Ch. 56 to 63 (i.e. including clothing). 4.8 Man-made fibres are divided into filaments and staple fibres, and are covered by two separate Chapters (Ch. 54 and 55). Note that filament tow as specified in Note 1 to Ch. 55 should be classified under Ch Man-made fibres are further distinguished into synthetic fibres and artificial fibres. The former are those produced by polymerisation of organic monomers such as polyesters and polyamides and the latter by chemical transformation of natural organic polymers such as viscose rayon. Details are in Note 1 to Ch. 54, which also applies to Ch. 55,

19 In the HK HS, the fineness of cotton yarn is measured in the "Tex" system instead of the British system ("s" count) adopted in the SITC Revision 2. The following formula converts the "s" count into "tex" no.: "tex" no. = =-"s" count (for cotton yarn only). Decitex is one tenth of a tex In general, all impregnated or coated textile fabrics fall in Ch. 59, except felts and non-wovens which should be classified in Ch. 56 and knitted pile fabrics in Ch. 60 (Note 3 to Ch. 56 and Note 1 to Ch. 60). On the other hand, although Ch. 60 is reserved for knitted or crocheted fabrics, nevertheless, lace, labels and badges etc. which are knitted or crocheted, should be the subject of Ch. 58 (Note 1 to Ch. 60) Fabrics completely embedded in plastics or rubber, and those entirely coated or covered on both sides with such materials, provided that such coating or covering can be seen with the naked eye, should be classified in Ch. 39 (plastics) or Ch. 40 (rubber). Notes on impregnated or coated fabrics can be found in Note 3 to Ch. 56 and Notes 4-5 to Ch Ch. 57 covers floor coverings in which the textile materials serve as the exposed surface of an article when in use (Note 1 to Ch. 57). Floor coverings with coating or covering applied on a textile backing fall in heading Articles for wall decorations of plastic sheets or strip combined with a textile fabric which is mainly for reinforcing purposes should be classified under Ch. 39 (plastics) "Knitted" goods include stitch-bonded goods in which the chain stitches are formed of textile yarn (Note 3 to Ch. 60) Babies' garments and clothing accessories refer to those for young children of a height not exceeding 86 cm and cover babies napkins (Note 5(d) to Ch. 61 and Note 4(d) to Ch. 62) Garments made up of textile fabrics impregnated or coated, even if they may be classified under other headings, should be put under headings 6113 (knitted or crocheted) or 6210 (not knitted or crocheted) (Note 7 to Ch. 61 and Note 5 to Ch. 62) Garments identified as being for either men or women should be classified as for women (Note 8 to Ch. 61 and 62) For classification purposes, definitions are given for: (i) twine, cordage, ropes and cables (Note 3(A) to Sec. XI); (ii) put up for retail sale (Note 4 to Sec. XI); (iii) sewing thread (Note 5 to Sec. XI); (iv) high tenacity yarn (Note 6 to Sec. XI); (v) made up articles (Note 7 to Sec. XI); (vi) types of yarn and fabrics (Subheading Note 1 to Sec. XI); (vii) wool, fine and coarse animal hair (Note 1 to Ch. 51); (viii) denim (Subheading Note 1 to Ch. 52); (ix) man-made fibres (Note 1 to Ch. 54); (x) man-made filament tow (Note 1 to Ch. 55); (xi) felt (Note 2 to Ch. 56); (xii) carpets and other textile floor coverings (Note 1 to Ch. 57); (xiii) gauze (Note 3 to Ch. 58); (xiv) narrow woven fabrics (Note 5 to Ch. 58); (xv) embroidery (Note 6 to Ch. 58);

20 14 (xvi) textile fabrics (Note I to Ch. 59); (xvii) textile wall coverings (Note 3 to Ch. 59); (xviii) rubberised textile fabrics (Note 4 to Ch. 59); (xix) knitted goods (Note 3 to Ch. 60); (xx) suits (Note 3(a) to Ch. 61 and 62); (xxi) ensembles (Note 3(b) to Ch. 61 and 62); (xxii) babies' garments and clothing accessories (Note 5(a) to Ch. 61 and 4(a) to Ch. 62); and (xxiii) ski suits, etc. (Note 6 to Ch. 61 and 62).

21 1 Of animal origin 1 i 1 Silk Wool and animal hair (Ch. 50) Textile fibres, yarn and woven fabrics Of vegetable origin l Man-made fibres i 1 Cotton 1 Other Man-made filaments Man-made staple fibres (Ch. 52) (Ch. 53) (Ch. 51) (Ch. 54) (Ch. 55) i Textiles and textile products l i Textile articles, special yarn and fabrics (e.g. wadding, twine, carpets, embroidery, textile articles for industrial use) (Ch ) Articles of apparel and clothing accessories i Knitted or crocheted (Ch. 61) I Not knitted or crocheted (Ch. 62) 1 Other made up articles; worn textile articles (Ch. 63) Diagram 2 Structure of Cotton Textiles Classification (Chapter 52) Cotton Raw Cotton Carded/Combed Sewing Yarn cotton waste cotton thread (other than sewing thread) [5201] [5202] [5203] [5204] 85% or more cotton Not for retail sale For retail sale i i 1 1 [5207] Not more Not less than Less than than 200 g/m 2 85% cotton 85% cotton [5208] [5205] [5206] i r i More than 200 g/m 2 [5209] 1 Woven fabrics i 1 Less than 85% cotton Mixed with Mixed with man-made other textile fibre fibres Not more More than than 200 g/m g/m 2 i [5210] [5211] [5212] Note: The numbers in square brackets denote HS headings.

22 Diagram 3 Structure of Textiles of Man-made Filaments Classification (Chapter 54) Sewing thread [5401] i Yam and monofilament of less than 67 decitex Man-made filaments l Filament yarn Woven (other than sewing thread but include monofilaments) Of synthetic Not for i etail sale For retail sale filament yarn [5406] [5407J Monofilament of not less than 67 decitex fabrics i Of artificial filament yarn [5408] Synthetic Artificial Synthetic Artificial [5402] [5403] Note: The numbers in square brackets denote HS headings. [5404] [5405] Diagram 4 Structure of Textiles of Man-made Staple Fibres Classification (Chapter 55) Man-made staple fibres Filament tow Staple fibres Synthetic Artificial Not carded/combed Carded/Combed [5501] [5502] i Synthetic Artificial Synthetic Artificial [5503] [5504] [5506] [5507] i Waste of man-made fibres [5505] Sewing thread [5508] Synthetic Yarn (other than sewing thread) Not for retail sale Artificial For retail sale [5511] Of synthetic fibres Woven fabrics Of artificial fibres [5516] Not less than Less than 85% of 85% of synthetic synthetic staple fibres staple fibres _ [5509] [5510] [5512] Mixed mainly with cotton Other [5515] Note: The numbers in square brackets denote HS headings. Not exceeding 170 g/m 2 [5513] Exceeding 170 g/m 2 [5514]

23 i Diagram 5 Structure of Articles of Apparel and Clothing Accessories of Textile Materials Classification (Chapters 61 and 62) Articles of apparel and clothing accessories of textile materials Knitted or crocheted (Ch. 61) Notes: Not knitted or crocheted (Ch. 62) Overcoats, anoraks, [ M t 6101! (except heading 6212) wind-jackets,... 1 F [ 6102 ] _ Suits, ensembles, T~ M t 6103 ] jackets, trousers,... 1 p [ M [6105] Shirts, blouses,... 1 F [6106] _ Briefs, pyjamas, T~ M I 6107! bathrobes,... L_ F [6108] T-shirts, singlets,... Jerseys, pullovers, cardigans, waist-coats,... Babies' garments and clothing accessories Track suits, ski suits and swimwear Garments of rubberized, plastic coated or other coated textile fabrics Other garments (e.g. uniforms, aprons, kimonos, leotards) f^lnthincr npppi'ipirip 0 [6109] [6110] [6111] [6112] L J [6113] [6114] Pantv hose stockings r^, *, L J socks,... Overcoats, anoraks, M wind-jackets,... 1 p Suits, ensembles, 1 M jackets, trousers,... I p Shirts, blouses,.... M 1 F Singlets, briefs, pyjamas, I M dressing gowns,... 1 p Babies' garments and Garments of felt or nonwovens and of rubberized, plastic coated or other coated textile fabrics Track suits, swimwear, uniforms, waist-coats,... ^ *- **"» Jf iiv^o^, otv/x^jviii^o, [Yxl 1 ^\1 fmrttviirurr v-aiwuaiiig, WV-V^VOOVJA ar /" %»c;er4t*i<='e 1^0 Gloves mittens [6116] Other clothing accessories and tmrts [61171 (e.g. shawls, ties, belts)... = and similar articles M = Male F=Female The numbers in square brackets denote HS headings. [6201] [6202] [6203] [6204] [6205] [6206] [6207] [6208] [6209] [6210] [6211] Brassieres, girdles, corsets, suspenders,... and parts thereof, whether or not knitted or crocheted [6212] Handkerchiefs [6213] Shawls, scarves, mufflers,... l J Ip2l4j Ties,... [6215] Gloves, mittens,... [6216] Other clothing accessories and parts [6217] (f* ct ctr\r»lrit-»frc< J-»c»1fo\

24 18 Classification examples Example 4.1 Woven fabrics, grey, of 60% polyester staple fibres and 40% cotton, 180 g/m* 03 See Section and Chapter titles 7 Choose "Man-made staple " fibres" (Ch. 55) or -Cotton" (Ch. 52) Example 4.2 Nylon cut-pieces for umbrella cover, woven 03 See Section and Chapter titles? Choose 'Textile made up articles" (Ch. 63) or "Umbrellas" (Ch. 66) Example 43 Woven fabrics of 50% cotton and 50% polyamides (staple fibre), grey, 210 g/m* 03 See Section and Chapter titles? Choose "Cotton" (Ch. 52) or "Man-made staple fibre" (Ch. 55).)&: Recall Note 2(A) to Sec. XI: products should be classified to material which predominates by weight > polyesters (Ch. 55) Q3 Refer to woven fabrics > headings ? Is polyester "synthetic" or "artificial"? -; ;- Recall Note 1 to Ch. 54, it is "synthetic" i Note that synthetic, < 85%, mixed with cotton, of weight > 1 70 g/m2, falls under heading 5514 i )- Reca11 Rule 2 (^) : if the incomplete or unfinished article has the essential character of the completed or finished article, it is classified under the latter Q3 Turn to Ch. 66 on umbrellas Re &d Chapter Notes (there is no Notes to Sec. XII) I Note cover not fitted to the umbrella is not to be treated as forming part of the article Try Ch. 63 on textile made up articles Read Notes to Sec. XI and Ch. 63 (no mention of inclusion or exclusion of such articles)? Recall Note 2(A) to Sec. XI: mixture of two materials is to be treated as the one predominating by weight, but this fabric is made up equally of cotton and polyamides 03 Read Notes to Sec. XI and Ch. 52 and 55 (no mention of such composite articles).)&: Recall Rule 3 (as Rule 3(a) and (b) cannot be applied, Rule 3(c) seems applicable): heading which occurs last in numerical order Q3 If cotton > heading If polyamides (synthetic according to Note 1 to Ch. 54) > heading Thus, heading Search through Ch. 63, and note that umbrella cover falls under heading

25 19 Example 4.4 Electrically warmed blankets See Section and Chapter titles Example 4.5 Woven shirts for boys, of 65% polyesters and 35% cotton See Section and Chapter titles Example 4.6 Shaped knitted cotton fabric for making gloves See Section and Chapter titles 7 Choose "Textile made up " articles" (Ch. 63) or "Electrical goods" (Ch. 85) Recall Rule 3(A): blanket is the essential character but check Notes to Sec. XI and Ch. 63 first (as Rule 1 requires) QT] Note "Woven shirts" belongs to Ch. 62 and "Shirts for boys" falls under heading 6205 Note there is no code for mixed materials Choose "Cotton fabric" (Ch. 52) or "Gloves" (Ch. 61) Recall Rule 2(a): unfinished article having the essential character of the finished article should be classified therein Note no mention of exclusion/inclusion of such products in the Notes, thus follow the General Rules Vft)- Recall Subheading Note '^ 2(A) to Sec. XI: such products should be classified as if it consists of one material QT] Note knitted gloves fall under heading 6116, but check Section and Chapter Notes first (as Rule 1 requires) QT Refer to blanket which falls under heading Note: If Ch. 85 is referred to first, Note 1 explicitly states that it does not cover electrically warmed blankets. [J] Read Note 2(A) to Sec. XI: polyester predominates by weight? Check if polyester is "synthetic" or "artificial" Recall Note 1 to Ch. 54, it is "synthetic" nn Note no mention of exclusion/inclusion of such products, thus follow Rule 2(0)

26 20 Classification exercises Please supply an appropriate 2-digit Chapter code, 4-digit heading code or 8-digit item code to the following commodity descriptions, or identify the correct term(s) in brackets (answers are given in Annex 3): Sec. XI (Ch. 50^3) Chapter code 1. Cotton denim fabrics 2. Paper yarn 3. Silk ribbons 4. Woollen blankets 5. Cotton woven waist belts Heading code 6. Raw true hemp 7. Nylon fishing line 8. Textile hand-woven carpets 9. Textile fabrics coated with PVC 10. Textile narrow woven fabrics 11. Ladies' acrylic pyjamas, woven 12. Babies' cotton knitted suits 13. Nylon brassieres, knitted 14. Silk ties, not knitted 15. Men's nylon rubberized raincoats, not knitted Item code % silk, 20% polyester brocades 17. Combed cashmere yarn, not put up for retail sale 18. Cotton sewing thread, other than grey, put up for retail sale % flax woven fabrics 20. Jute yarn % dyed viscose rayon filament yarn woven fabrics 22. Nylon felt floor coverings 23. Textile wicks for candles 24. Cotton handkerchiefs, embroidered 25. Girls' rayon ski suits, not knitted

27 21 The following commodities are not classified in Section XL In which Chapter should they be classified? 26. PVC gloves 27. Men's rubber raincoats 28. Ladies' mink coats 29. Polyester hats 30. Women's leather jackets Chapter code Circle the correct term(s) in the brackets: 31. (Common goat hair/tibetan goat hair/lambs wool) is fine animal hair. 32. Synthetic fibres include (polyamides/viscose rayon/cellulose acetate/nylon/polyesters/ polynosic/acrylic). 33. (Cotton towelling/cotton flannel/cotton terry towelling) is a kind of cotton pile fabrics. 34. Bed linen includes (bedspreads/bed sheets/bed valances). 35. Worn clothing or other worn articles are classified in heading (6109/6209/6309). 36. In classifying clothing articles or accessories consisting of two or more textile materials, reference has to be made to (Note 2(A) to Sec. Xl/Subheading Note 2(A) to Sec. XI/Note 8 to Ch. 61). 37. Dolls' hats should be classified in Chapter (62/65/95). 38. Unisex wind-jackets, knitted or crocheted, of man-made fibres, should be classified in heading (6101/6102/6112). 39. Babies' napkins of textile materials are classified in Chapter (61/62/63). 40. The larger the metric number and the "s" count, the (smaller/larger) the "decitex" number.

28 22 Part 5: Classification of Machinery and Mechanical Appliances, Electrical Equipment, Sound Recorders and Reproducers How are electrical equipment and machinery arranged in the HK HS? 5.1 Section XVI comprises only two Chapters: Ch. 84 covers machinery and mechanical appliances and Ch. 85 covers electrical machinery and equipment and sound equipment. 5.2 Broadly speaking, the 4-digit headings in Ch. 84 and Ch. 85 can be divided into the following groups: Chapter Headings Commodities Nuclear reactors, boilers, gas generators, turbines, engines and other non-electric power generating equipment Pumps, compressors, fans and other heating and cooling equipment Calendering machines, centrifuges, dish washing machines, appliances for spraying liquids and weighing machines Handling and construction machinery Agriculture and food making machinery Machinery for paper and printing industries Textile and leather working machinery Machinery for working metal, wood and similar hard materials Office machines and automatic data processing equipment Other industrial machinery Non-electrical machinery parts Electric motors, generators, transformers, electro-magnets and batteries Electro-mechanical appliances with self-contained electric motor Electro-thermic appliances, portable electric lamps, electrical ignition equipment for engines and electrical lighting or signalling equipment for road motor vehicles Telecommunications and sound recording and reproducing apparatus and equipment Electrical/electronic components such as capacitors, resistors, switches, lamps, transistors, integrated circuits, etc Other electrical machines and apparatus

29 23 Highlights of Section Notes and Chapter Notes 5.3 Note 1 to Sec. XVI provides a list of commodities not classified under the Section. In particular, articles and parts of plastics, rubber, leather and textile materials used in machinery or mechanical or electrical appliances should be classified in the respective Chapters according to material. Drill pipes and similar articles of base metal should be classified in Sec. XV. 5.4 According to Note 3 to Sec. XVI, multi-function machines should be classified in the heading describing the principal function of that machine. More details are given in Notes 2 and 7 to Ch. 84. A machine consisting of several components combined to perform a clearly defined function covered by one of the headings in Ch. 84 or Ch. 85 should be classified under the heading appropriate to the function (Note 4 to Sec. XVI). 5.5 For the classification of machinery parts, the following guidelines apply: (i) Parts which are goods specifically covered by the terms of particular headings in Ch. 84 and 85 should be classified to the relevant headings. (ii) Other parts, if suitable for use solely or principally with a particular kind of machine or group of machines in the same heading, are to be classified with the machine(s) of that kind or group. (iii) Miscellaneous parts that cannot be classified using the above guidelines are to be covered by items or which are the catch-all items. Details can be found in Note 2 to Sec. XVI. 5.6 Most of the domestic household appliances such as electric fans, sewing machines, washing machines, clothes-dryers and refrigerators are classified in Ch. 84, but vacuum cleaners, floor polishers, food grinders and mixers, fruit or vegetable juice extractors, as well as other household electro-mechanical appliances which weigh not more than 20 kg are classified in Ch. 85 (Note 3 to Ch. 85). 5.7 Records, cassette tapes and video tapes are classified together with the sound recording and reproducing equipment in Ch. 85 (Note 6 to Ch. 85). 5.8 For classification purposes, definitions are given for: (i) machines (Note 5 to Sec. XVI); (ii) automatic data processing machines (Note 5 to Ch. 84); (iii) printed circuits and film circuits (Note 4 to Ch. 85); (iv) diodes, transistors and similar semi-conductor devices (Note 5(A) to Ch. 85); and (v) electronic integrated circuits and microassemblies (Note 5(B) to Ch. 85).

30 24 Classification examples Example 5.1 Domestic refrigerator, complete but for its compressor Note according to paragraph 5.2, "Cooling equipment" belongs to headings Q Note "Refrigerator" falls under heading 8418 but there is no compressor (incomplete refrigerator) ;v Recall Rule 2(a): incomplete article having the essential character of the complete article should be classified therein Check Notes to Sec. XVI, Ch. 84 and, to play safe, also Ch. 85 (no mention of exclusion/inclusion of such products, hence follow Rule 2(fl)) Example 5.2 Hair-dressing set containing a pair of electric hair clippers, a comb, a brush, a pair of scissors, a towel, put up in a leather case for sale? Note the set contains electrical appliances; articles of plastics, of textile materials and of base metals; and a case of leather where should it be classified? QT Check Section and Chapter Notes (no mention of set of articles) fc Recall Rule 3(6), the set should be classified as if it consists of the component which gives the essential character: in this case it is "Electrical hair clipper" (the leather case, sold with the set, is not sufficiently expensive to give the whole its essential character) Q"] Note according to paragraph 5.2, "Electromechanical appliances with self-contained electric motor" falls under headings Example 5.3 PVC cases for portable FM radio not presented with the radio? Choose "Articles of plastics" (Ch. 39) or "Radios" (Ch. 85) &. Recall Rule 5(d): only cases presented with the articles for which they are intended should be classified with such articles; if the cases are separately consigned, they should be classified by material Note "Articles of plastics" falls under headings Check Section and Chapter Notes (no mention of exclusion of such articles) Note: If the cases are presented with the FM radios, the essential character is the radio and the whole should be classified in heading Q3 Find u Hair clippers" under heading

31 25 Example 5.4 A desizing and dyeing machine _ Note according to paragraph 5.2, "Textile machinery" falls under headings Find "Machinery for dyeing, desizing and similar processing" under heading 8451 i Choose "Dyeing machine" in or "Desizing machine" in Recall Note 3 to Sec. XVI: CK" 0 a composite machine should be classified as being that machine which performs the principal function; in this case it is a dyeing machine, since desizing is a function that prepares cloth for dyeing Q7 Check Section and Chapter Notes (no mention of such and similar articles) \ Example 5.5 Centrifugal water pump suitable for agricultural use without measuring device? Choose "Pumps" (headings ) or "Agricultural machinery" (headings ) g Recall Note 2 to Ch. 84: a machine which answers to a description in headings and at the same time to another in headings is to be classified under the former Choose "Pump for liquids" under heading Example 5.6 Automobile electric windscreen wipers? Choose "Parts of automobile" (Ch. 87) or "Electrical equipment" (Ch. 85) Check Notes to Sec. XVI and XVII, Ch. 85 and Ch. 87 (no mention of such and similar articles) '- Recall Rule 3(a): the heading which provides the most specific description is preferred m Search through Ch. 85 and 87: heading 8512 > "... windscreen wipers,.., of a kind used for cycles or motor vehicles", heading 8708 > "Parts and accessories of the motor vehicles of headings Nos to 8705"; the former is more specific I v/

32 26 Classification exercises Please supply an appropriate 4-digit heading code or 8-digit item code to the following commodity descriptions (answers are given in Annex 3): Sec. XVI (Ch ) Heading code 1. Microcomputers 2. Centrifugal dryers for garments 3. Electric table fans 4. Electric shavers 5. Television sets 6. Vacuum pumps 7. Household dish washing machines 8. Carding machines, textile 9. Plastic injection moulds Item code 10. Ball bearings 11. Pocket size battery-operated calculators 12. Spark plugs 13. Electric portable torches 14. Mounted monolithic integrated circuits 15. Video cassette recorders The following commodities are not classified in Section XVI. In which Chapter should they be classified? 16. Electric locomotives 17. Photo-copying machines 18. Drill pipes 19. Electric organs 20. Electrically wanned blankets Chapter code

33 27 Part 6: Classification of Other Goods 6.1 This Part discusses the highlights of the Section Notes and Chapter Notes for all Sections other than Sec. XI (discussed in Part 4) and Sec. XVI (discussed in Part 5). They are by no means exhaustive, and users should always refer to the HKIECL(HS). Classification examples for selected Sections are presented after the highlights. Highlights of Section Notes and Chapter Notes 6.2 Section I (Ch. 1-5) Live animals; animal products (a) Meat unfit or unsuitable for human consumption is not covered in Ch. 2 but in Ch. 5 (Note l(d) to Ch. 2). Similarly, dead fish unfit or unsuitable for human consumption is not covered in Ch. 3 but in Ch. 5 (Note l(b) to Ch. 3). (b) Edible meat offals are classified in Ch. 2, but guts, bladders and stomachs are classified in Ch. 5, and blood in Ch. 5 or Ch. 30 (Note \(b) to Ch. 2 and Note 1(0) to Ch. 5). (c) The definitions of "ivory" and "horsehair" are given in Notes 3 and 4 to Ch Section II (Ch. 6-14) Vegetable products (a) Chilled fruits and nuts are classified in the same headings as the fresh counterparts (Note 2 to Ch. 8). (b) Vegetable materials or their fibres for manufacture of textiles should be classified in Sec. XI on textiles (Note 1 to Ch. 14). (c) Definitions are provided for: (i) pellets (Note 1 to Sec. II); (ii) vegetables (Note 2 to Ch. 7); (iii) durum wheat (Subheading Note 1 to Ch. 10); (iv) products from the milling of cereals (Note 2 to Ch. 11); and (v) groats and meal (Note 3 to Ch. 11). 6.4 Section III (Ch. 15) Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes (a) Pig fat or poultry fat is covered in Ch. 2 (Note l(d) to Ch. 15), (b) Edible products containing more than 15% by weight of butter, etc. are not covered in Sec.III(Notel(c)toCh. 15). 6.5 Section IV (Ch ) Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes (a) Food preparations containing more than 20% by weight of meat and fish etc. are classified in Ch. 16 (Note 2 to Ch. 16 and Note l(d) to Ch. 21). Preparations containing two or more products of meat and fish etc. are classified in the heading for the product predominating in weight (Note 2 to Ch. 16). (b) Products of cocoa and preparations containing more than 8% by weight of cocoa powder etc, are classified in Ch. 18 (Note l(b) to Ch. 15, Note l(a) to Ch. 17 and Note 3 to Ch. 19).

34 28 (c) Definitions are provided for: (i) pellets (Note 1 to Sec. IV); (ii) homogenised preparations of meat, fish, fruit and vegetables (Subheading Note 1 to Ch. 16, Subheading Notes 1 and 2 to Ch and Note 3 to Ch. 21); (iii) raw sugar (Subheading Note 1 to Ch. 17); (iv) juices (Note 5 to Ch. 20); and (v) non-alcoholic beverages (Note 3 to Ch, 22). 6.6 Section V (Ch ) Mineral products (a) Of the separate chemically defined organic compounds, only pure methane and propane are classified in Ch. 27 of this Section (Note \(a) to Ch. 27). (b) Definitions are provided for: (i) ores (Note 2 to Ch. 26); and (ii) anthracite, bituminous coal, and products such as benzole, toluole, etc. (Subheading Notes 1-3 to Ch. 27). 6.7 Section VI (Ch ) Products of the chemical or allied industries (A) Inorganic and organic chemicals (Ch ) Users are advised to study the Notes to Sec. VI, Ch. 28 and Ch. 29 in detail before classifying the products. For ease of reference, Ch. 28 and 29 are partitioned into sub-chapters: Ch. Sub- Chapter Headings Commodities I II III IV V VI I II III IV Chemical elements Inorganic acids and inorganic oxygen compounds of non-metals Halogen or sulphur compounds of non-metals Inorganic bases and oxides, hydroxides and peroxides of metals Salts and peroxysalts, of inorganic acids and metals Miscellaneous Hydrocarbons and their halogenated, sulphonated, nitrated or nitrosated derivatives Alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives Phenols, phenol-alcohols, and their halogenated, sulphonated, nitrated or nitrosated derivatives Ethers, alcohol peroxides, ether peroxides, ketone peroxides, epoxides with a three-membered ring, acetals and hemiacetals, and their halogenated, sulphonated, nitrated or nitrosated derivatives V Aldehyde-function compounds

35 29 Sub- Ch. Chapter Headings Commodities 29 VI 2914 Ketone-function compounds and quinone-function compounds VII Carboxylic acids and their anhydrides, halides, peroxides and peroxyacids and their halogenated, sulphonated, nitrated or nitrosated derivatives VIII Esters of inorganic acids and their salts, and their halogenated, sulphonated, nitrated or nitrosated derivatives IX Nitrogen-function compounds X Organo-inorganic compounds, heterocyclic compounds, nucleic acids and their salts, and sulphonamides XI Provitamins, vitamins and hormones XII Glycosides and vegetable alkaloids, natural or reproduced by synthesis, and their salts, ethers, esters and other derivatives XIII Other organic compounds (B) Highlights of Notes to Ch. 28 and Ch, 29 (a) They cover separate chemical elements (Ch. 28 only) and separate chemically defined compounds, whether or not containing impurities, dissolved in water or other solvent, with added stabiliser, anti-dusting agents, etc., for safety, transport or preservation purposes (Note 1 to Ch. 28 and Note 1 to Ch. 29). (b) Note 3 to Ch. 28 states that Ch. 28 does not cover: sodium chloride or magnesium oxide or other mineral products of Sec. V most organo-inorganic compounds (Ch. 29), except those listed in Note 2 to Ch. 28 fertilizers (e.g. sodium nitrate) (Ch. 31) precious or semi-precious stones (Ch. 71) metal or metal alloys (Sec. XV) optical elements (Ch. 90). (c) Note 2 to Ch. 29 states that Ch. 29 does not cover: ethyl alcohol (Ch. 22) methane or propane (Ch. 27) urea (Ch. 31) products for special purposes, e.g. used as fluorescent brightening agents or dyes (Ch. 32), fuels for filling or refilling cigarette lighters (Ch. 36), charges for fireextinguishers (Ch. 38), etc. enzymes (Ch. 35) optical elements (Ch. 90).

36 30 (d) Complex acids of Ch. 28 consisting of a non-metal acid and metallic acid are to be classified in heading 2811 (acids of non-metal) (Note 4 to Ch. 28). (e) Unworked chemical elements doped for use in electronics are covered in Ch. 28, but if they are cut in the form of discs, wafers etc., they fall in Ch. 38 (Note 8 to Ch. 28). (/) Inorganic salts of organic compounds (except those mentioned in Note 1 to Sec. VI and Note 2 to Ch. 28) are classified in Ch. 29 (Note 5(c) to Ch. 29). (g) Within a heading of Ch. 29, derivatives of a compound are classified in the same item as that compound, provided that there is no residual item named "Other" (Subheading Note 1 to Ch. 29). (C) Other products of the chemical industries (Ch ) (a) Chemical compounds used as fertilizers are listed/defined in Notes 2-5 to Ch. 31. (b) Definitions are provided for: (i) unmixed and mixed products (Note 2 to Ch. 30); (ii) colouring materials (Note 5 to Ch. 32); (iii) stamping foils (Note 6 to Ch. 32); (iv) perfumery, cosmetic or toilet preparations (Note 3 to Ch. 33); (v) soap (Note 2 to Ch. 34); (vi) organic surface-active agents (Note 3 to Ch. 34); (vii) artificial waxes and prepared waxes (Note 5 to Ch. 34); (viii) dextrins (Note 2 to Ch. 35); (ix) articles of combustible materials (Note 2 to Ch. 36); and (x) photographic (Note 2 to Ch. 37). 6.8 Section VU (Ch ) Plastics and articles thereof; rubber and articles thereof (a) This Section does not cover articles made of plastics or rubber which are described more specifically in other Sections, e.g. footwear, toys, furniture (Note 2 to Ch. 39 and Note 2 to Ch. 40). Furthermore, articles printed with motifs, characters or pictorial representations fall in Ch. 49 (Note 2 to Sec. VII). (b) However, rubber tyres (Note 2(/) to Ch. 40) and conveyor/transmission belts of textile fabric or made from yarn impregnated with rubber (Note 8 to Ch. 40) are covered in Ch. 40. (c) Plastics in primary forms (sub-chapter I of Ch. 39) are covered in headings , of which headings apply only to goods produced by chemical synthesis (Note 3 to Ch. 39). (d) Copolymers and polymer blends are, in general, classified in the heading covering polymers of that comonomer which predominates by weight. If no single comonomer predominates, then follow Rule 3(c). Copolymer covers all polymers in which no single monomer contributes 95% or more by weight (Note 4 to Ch. 39). (e) Except for graft copolymers, all chemically modified polymers are classified in the heading for unmodified polymers (Note 5 to Ch. 39). (/) Within a heading, copolymers are classified in the same item as homopolymers of the predominant comonomer and modified polymers as unmodified polymers, provided that

37 31 there is no residual item named "Other". Polymer blends are treated as copolymers or homopolymers of the same monomers in the same proportions (Subheading Note 1 to Ch. 39). (g) Definitions are provided for: (i) plastics (Note 1 to Ch. 39); (ii) primary forms of plastics (Note 6 to Ch. 39); (iii) tubes, pipes and hoses of plastics (Note 8 to Ch. 39); (iv) rubber (Note 1 to Ch. 40); (v) synthetic rubber (Note 4 to Ch. 40); (vi) primary forms of rubber (Note 3 to Ch. 40); and (vii) plates, sheets, film, foil and strip of plastics and rubber (Note 10 to Ch. 39 and Note 9 to Ch. 40). 6.9 Section VIII (Ch ) Raw hides and skins, leather, furskins and articles thereof; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut) (a) Birdskins are not covered in this Section (Note 1(6) to Ch. 41). (b) Raw furskins are covered in Ch. 43 but raw hides or skins with hair or wool on, of bovine animals etc. are classified in Ch. 41 (Note l(c) to Ch. 41). (c) Articles of leather do not include those which can be more specifically classified in other Sections, e.g. footwear, toys, furniture, etc. but with the exception of gloves (Note 1 to Ch. 42). (d) Articles of apparel and clothing accessories of leather covered in Ch. 42 are listed in Note 3 to Ch. 42. However, leather watch straps are not included. (e) Gloves consisting of leather and furskin are classified in Ch. 42 as articles of leather (Note 2(c) to Ch. 43). But other articles of apparel and clothing accessories lined with furskin are classified in Ch. 43 (Note 1(4) to Ch. 42 and Note 4 to Ch. 43). (/) Definitions are provided for: (i) composition leather (Note 2 to Ch. 41); (ii) furskins (Note 1 to Ch. 43); and (iii) artificial fur (Note 5 to Ch. 43) Section IX (Ch ) Wood and articles of wood; wood charcoal; cork and articles of cork; manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork (a) Wood, in chips, etc., for specific purposes (e.g. pharmacy, dyeing), plaiting materials and activated charcoal are not covered by Ch. 44 (Note 1 to Ch. 44) but bamboo and other materials of a woody nature (except those for plaiting purposes) are regarded as "wood" (Note 6 to Ch. 44). (4) Articles such as footwear, furniture, clock cases, toys, etc. of wood, cork or straw are not covered in this Section (Note 1 to Ch. 44, Note 1 to Ch. 45 and Note 2 to Ch. 46), (c) Definitions are given for "densified wood" (Note 2 to Ch. 44) and "plaiting materials" (Note 1 to Ch. 46).

38 Section X (Ch ) Pulp of wood or of other fibrous ceuulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof (a) Paper, paperboard, cellulose wadding and webs of cellulose fibres which can be classified in two or more headings within 4801 to 4811 should be put in the one occurring last in numerical order (Note 6 to Ch. 48). (b) Sensitized paper, photographic negatives or positives, paper yarn, maps, playing cards, stamps etc. are not covered in this Section (Note 1 to Ch. 48 and Note 1 to Ch. 49). (c) Bound volumes or sets of newspapers, journals and periodicals comprising more than one kind under a single cover are classified in heading 4901 (Note 3 to Ch. 49). (d) Definitions are provided for: (i) chemical wood pulp, dissolving grades (Note 1 to Ch. 47); (ii) newsprint (Note 3 to Ch. 48); (iii) kraft paper and paperboard (Note 5 to Ch. 48); (iv) wallpaper and similar wall coverings (Note 8 to Ch. 48); (v) printed (Note 2 to Ch. 49); and (vi) children's picture books (Note 6 to Ch. 49) Section XI (Ch ) Textiles and textile articles (Please see Part 4 on pages 12-17) 6.13 Section XII (Ch ) Footwear, headgear, umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops and parts thereof; prepared feathers and articles made therewith; artificial flowers; articles of human hair (a) Worn footwear and headgear are classified in Ch. 63 (worn articles) (Note 1(6) to Ch. 64 and Note l(a) to Ch. 65). (b) Material of the upper/outer sole of footwear is that having the greatest surface area, no account being taken of accessories and reinforcements (Note 4 to Ch. 64). (c) Parts, trimmings or accessories of textile material or covers, cases etc. of any materials for umbrellas or walking-sticks etc., presented with but not fitted to the latter are not considered part of the latter (Note 2 to Ch, 66). (d) Artificial flowers, foliage and fruit do not cover articles of glass which should be included in Ch. 70. Those of pottery, stone, metal, wood or other materials, obtained in one piece or consisting of parts assembled by methods other than binding, glueing or fitting are also not covered (Note 3 to Ch. 67), 6.14 Section XIH (Ch ) Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware (a) This Section does not cover articles of the above-mentioned materials which are more specifically described elsewhere (Note 1 to Ch. 68, Note 2 to Ch. 69 and Note 1 to Ch. 70) e.g., (i) imitation jewellery (Ch. 71); (ii) electrical insulators or insulating fittings (Ch. 85); (iii) artificial teeth or dental burrs (Ch. 90); (iv) lamps or lighting fittings (Ch. 94); and (v) works of art (Ch. 97).

39 33 (b) Ch. 69 applies to ceramic products which have been fired after shaping. (c) "Glass" includes fused quartz and other fused silica (Note 5 to Ch. 70). (d) Definitions are provided for: (i) absorbent or reflecting layer (Note 2(c) to Ch. 70); and (ii) glass wool (Note 4 to Ch. 70) Section XIV (Ch. 71) Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery; coin (a) Articles of precious metal do not include those in which precious metal or metal clad with precious metal is present as minor constituents only (Note 2(a) to Ch. 71). (b) In general, "platinum" means platinum, iridium, osmium, palladium, rhodium and ruthenium (Note 4(b) to Ch. 71). But for the purposes of items and , "platinum" covers platinum only (Subheading Note 2 to Ch. 71). (c) An alloy containing precious metal is treated as an alloy of precious metal if any one precious metal constitutes as much as 2% by weight of the alloy (details in Note 5 to Ch. 71). Unless otherwise specified, it is classified in the same heading as the precious metal (Note 6 to Ch. 71). (d) Definitions are provided for: (i) precious metals, precious or semi-precious stones (Note 4 to Ch. 71); (ii) metals clad with precious metal (Note 7 to Ch. 71); (iii) articles of jewellery (Note 8 to Ch. 71); (iv) articles of goldsmiths' or silversmiths' wares (Note 9 to Ch. 71); and (v) imitation jewellery (Note 10 to Ch. 71) Section XV (Ch and 78-83) Base metals and articles of base metal (a) Sec. XV covers Ch , with Ch. 77 reserved for future use. (b) The definitions and meanings of various types of alloys and various products/forms of base metals are given in Chapter Notes and Subheading Notes. Please note that the same term may have different meanings in different Chapters. (c) Apart from ferro-alloys (defined in Note l(c) to Ch. 72) and master alloys (defined in Note l(c) to Ch. 74), classification of alloys is explained in Note 3 to Sec. XV. (d) Composite articles containing two or more base metals are treated as articles of the base metal predominating by weight (Note 5 to Sec. XV). (e) Parts of base metal of the articles of Ch. 82 are classified with the articles but "parts of general use" (as defined in Note 2 to Sec. XV) are excluded from the Chapter. Also, heads and blades for electric shavers and clippers are classified in Ch. 85 (Note 2 to Ch. 82). (/) Sets consisting of knives and at least an equal number of articles in heading 8215 (spoons, forks etc.) are classified in heading 8215 (Note 3 to Ch. 82). (g) Definitions are also provided for: (i) waste and scrap and powders (Note 6 to Sec. XV); (ii) cast iron (Note 1 to Ch. 73); and (iii) castors (Note 2 to Ch. 83).

40 Section XVI (Ch ) Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles (Please see Part 5 on pages 22-23) 6.18 Section XVII (Ch ) Vehicles, aircraft, vessels and associated transport equipment (a) Restrictions to the application of "parts" or "accessories" are listed in Notes 2-3 to Sec. XVII. (b) Aircraft which can also be used as road vehicles are classified as aircraft. Amphibious motor vehicles are classified as motor vehicles (Note 4 to Sec. XVII). (c) Railway sleepers of wood or of concrete, track construction materials of iron and steel, traffic control equipment, etc. are not classified in this Section (Note 1 to Ch. 86). (d) Bicycles, including children's bicycles, and cycles for transport are classified in Ch. 87 but other children's cycles are classified in Ch. 95 (Note 5 to Ch. 87). (e) Definitions are given for "tractors" and "public-transport type passenger motor vehicles" (Notes 2 and 3 to Ch. 87) Section XVIII (Ch ) Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; clocks and watches; musical instruments; parts and accessories thereof (a) Machinery in which the measuring/checking/testing etc. device does not form the essential character of the machine is classified in Ch. 84 or Ch. 85. For details, see Note 1 to Ch. 90. (b) Parts and accessories of the goods included in a heading of Ch. 90 or Ch. 91 are classified in the relevant headings. Other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, are classified with the machine. All other parts and accessories are classified in heading 9033 (Note 2 to Ch. 90). (c) Clock or watch glasses or weights are classified according to their constituent materials and not in Ch. 91 (Note l(a) to Ch. 91). (rf) The definition of "watch movements" is given in Note 3 to Ch. 91. Movements and other parts suitable for use both in watches/clocks and in other articles are classified in Ch. 91 (Note 4 to Ch. 91) Section XIX (Ch. 93) Arms and ammunition; parts and accessories thereof (a) Radio or radar apparatus (classified in heading 8526) are not considered parts of munitions (Note 2 to Ch. 93) Section XX (Ch ) Miscellaneous manufactured articles This Section covers furniture, toys and games and sports requisites and other miscellaneous manufactured articles. Users are advised to check the articles excluded from each Chapter (Note 1 to Ch. 94, 95 and 96) first. (a) Some exclusions are: (i) pneumatic or water mattresses (Ch. 39, 40 or 63); (ii) lamps and lightings for specified purposes and portable electric lamps etc. described in Ch. 85; (Hi) furniture specially designed as parts of other articles;

41 35 (iv) sports clothing, footwear, bags, vehicles, craft, goggles or the like; (v) children bicycles (Ch. 87); and (vi) pens and brushes for specialised purposes (e.g. cosmetic, medical). (b) Parts of furniture do not include sheets or slabs of glass (including mirrors), marble or materials referred to in Ch. 68 or 69. Articles which are described in heading 9404 should not be considered parts of furniture of headings (Note 3 to Ch. 94). (c) Articles in which pearls, precious or semi-precious stones etc. constitute only minor constituents remain classified in their respective Chapters (Note 2 to Ch. 95 and Note 4 to Ch. 96). (d) Definitions are provided for: (i) prefabricated buildings (Note 4 to Ch. 94); (ii) vegetable or mineral carving materials (Note 2 to Ch. 96); and (iii) prepared knots and tufts for broom or brush making (Note 3 to Ch. 96) Section XXI (Ch. 97) Works of art, collectors' pieces and antiques (a) "Original engravings, prints and lithographs" means impressions produced directly and wholly executed by hand by the artist and does not include any mechanical or photomechanical process (Note 2 to Ch. 97). (b) Mass-produced reproductions or works for commercial purpose are not included (Note 3 to Ch. 97). (c) "Antiques of an age exceeding one hundred years" (heading 9706) does not apply to articles of preceding headings (Note 4(b) to Ch. 97) Section XXII (Ch. 98) Commodities and transactions not classified according to kind Postal packages of value of HK$4,000 or less and declarations of value HK$5,000 or less need not be classified according to kind.

42 36 Classification examples Example 6.1 _ Hair obtained from ox tail See Section and Chapter titles Q] Note "Hair" falls in Ch. 5 7 Note no mention of ox tail. Should it be under heading 0511 "Other"? Read Note 4 to Ch. 5: "Horsehair" includes tails of bovine animals; hence heading Example 6.2 Live horses (for travelling circuses) See Section and Chapter \ titles Note "Live animal" belongs to Ch. 1 I Read Notes first: Note l(c) states that live animals of heading 9508 are not included \ : Check heading 9508: "Travelling circuses" is mentioned v' Example 6.3 Live cock, weighing more than 185 g [J] See Section and Chapter \ titles [JQ Note "Live animal" belongs to Ch. 1 Find "Live poultry" under heading 0105? What is "Callus domesticus"! Call Trade Classification Section of Census and Statistics Department (see Annex 2) I Note that it covers hens, cocks, chicken, etc Note: Please enquire on difficult terms. The trade statistics will be misleading if traders arbitrarily choose, say, (other fowls) for live hens, cocks and chicken.

43 37 Example 6.4 Opium sap Q~] See Section and Chapter titles Example 6.5 Example 6.6 Pig fat, not rendered [J] See Section and Chapter titles Sugar confectionery containing cocoa See Section and Chapter titles m Note "Vegetable saps and extracts" falls under Ch. 13 and heading 1302 Read Notes to Sec. II and Ch. 13: Note 1 to Ch. 13 indicates that heading 1302 applies to extract of opium but Note!(/) states that medicaments are excluded Find if "Opium sap" is a kind of medicament [J] Look it up or call Trade ^ Classification Section of ^^ Census and Statistics Department (see Annex 2) Note "Animal fat" belongs toch. 15 Read Chapter Notes: Note l(a) states that pig fat is not covered in Ch. 15, but in heading 0209 Turn to Ch. 2 and read Notes: Note l(c) confirms correctness of classification m Note "Sugar confectionery" belongs to Ch. 17 but "Cocoa preparation" belongs to Ch. 18 Turn to Ch. 17 and read Chapter Notes: Note \(d) explicitly states that the above product is covered in heading 1806 </ Note raw opium sap cannot be used as medicaments but the extracts processed from opium sap can be; hence heading

44 38 Example 6.7 Example 6.8 Example 6.9 Methane (in gaseous state) Q3 See Section and Chapter titles rn Note "Organic chemicals" belongs to Ch. 29 Q3 Read Notes to Sec. VI (no mention of such products) Read Notes to Ch. 29: Note 2(c) explicitly states that "Methane" is under heading Note: The same information is given in Note 1 (a) to Ch. 27. Sodium nitrate 03 See Section and Chapter titles Note "Inorganic chemicals'" belongs to Ch. 28 but "Fertilizers" belongs to Ch Read Notes to Sec. VI (no mention of such products) Try Ch. 28, read Chapter Notes Note 3(c) states that products mentioned in Notes 2-5 to Ch. 31 are not covered Check Notes 2-5 to Ch. 31: Note 2(A)(i) explicitly states that "Sodium nitrate" is covered in heading 3102 %/ Conveyor belts of textile material covered with rubber (V~belts) 03 See Section and Chapter titles Note "Rubber articles" belongs to Ch. 40 but "Textile articles for industrial use" belongs to Ch. 59 and "Machinery and mechanical appliances" belongs to Ch. 84 Q3 Try Ch. 84 in Sec. XVI; read Section Notes: Notes l(d) and (e) state that such products are not covered in Sec. XVI Q3 Try Ch. 59 in Sec. XI; read Section Notes (no mention of such products) -(o)- Continue to read Notes to ^ Ch. 59: Note 6(6) states that the product should be classified under rubber articles Note: If one misses the Chapter Notes and search through Ch. 28, one would locate heading 2834 (nitrites; nitrates) and misclassify "Sodium nitrate" as " " (other nitrates). Q3 Go through headings of Ch. 40; note "Conveyor belt of vulcanised rubber" falls under heading Note: If the Chapter Notes are not read, one might find heading 5910 equally suitable. If one arbitrarily assigns to the product or applies Rule 3(c) (which one should not, according to Rule 1), the product will be misclassified.

45 39 Example 6.10 Example 6.11 Plastic chairs for children See Section and Chapter titles Brief-cases with outer surface of textile materials QT] See Section and Chapter titles Example 6.12 Musical greeting card [J] See Section and Chapter titles Note "Plastic articles" belongs to Ch. 39 ] Screen through the headings no heading for furniture Read Chapter Notes: Note 2(0 states that furniture is covered in Ch. 94 Read Notes to Ch. 94 (no mention of inclusion/ exclusion of such products) Note "Seats" falls under headings Note "Textile articles" falls under Ch. 63 but "Travel goods, handbags, etc." belongs to Ch. 42 Try "Textile articles" and read Notes to Sec. XI: Note 1(1) mentions articles of textile materials of heading 4201 or 4202 are not covered [J] Turn to Ch. 42, read heading 4202: brief-cases of textile materials are covered Note "Electronic goods" belongs to Sec. XVI but "Products of printing industry" falls under Ch. 49 Recall Rule 3(Z>): greeting card gives the essential character, but check the relevant Section and Chapter Notes first (as Rule 1 requires) QQ Read Notes to Ch. 49 (no mention of such and similar products) Read Notes to Sec. XVI, Ch. 84 and Ch. 85 (no mention of such or similar products) Apply Rule 3(Z>) and search through Ch. 49, "Printed cards" falls in heading

46 40 Example 6.13 Example 6.14 Example 6.15 Stainless steel blanks for making table knives CD See Section and Chapter titles 4? Note "Articles of iron and steel" belongs to Ch. 72 but "Cutlery" belongs to Ch. 82 Cutlery sets comprising knives, spoons and forks of stainless steel CD See Section and Chapter titles QU Note "Cutlery" belongs to Ch. 82 Rubber tyres for buses (new) See Section and Chapter titles Note "Articles of rubber" belongs to Ch. 40 but "Parts & accessories for motor vehicles" falls under Ch. 87 &. Recall Rule 2(d): N incomplete or unfinished article having the essential character of the complete or finished article should be classified therein; but check Section and Chapter Notes first (as Rule 1 requires) Q] Read Notes to Sec. XV (no mention of such products) 4 Read Notes to Ch. 72 and Ch. 82 (no mention of exclusion/inclusion) 4 Apply Rule 2(a): "Knives" belongs to heading Read Chapter Notes: Note 3 states that sets containing knives and at least an equal number of articles of heading 8215 (spoons, forks) are to be classified in the latter heading CD Try Ch. 87 and read Notes to Sec. XVII and Ch. 87: Note 2(0) to Sec. XVII states that articles of vulcanised rubber are not covered i CD Read Notes to Sec. VII and Ch. 40 (no mention of exclusion/inclusion of such products) CD Search through Ch CD Note "Rubber tyres" falls under headings i %/ Note: Rule 3(0) states that if, on the face of it, an article is classifiable under two or more headings, the one which provides the most specific description is preferred. In this case, "New pneumatic tyres, of rubber" (heading 401 1) is preferable to "Parts and accessories of motor vehicles" (heading 8708).

47 41 Example 6.16 Sporting guns and rifles See Section and Chapter titles Note "Arms and ammunition" belongs to Ch. 93 but "Toys, games and sports requisites" falls under Ch. 95 QQ Try Ch. 95 and read Chapter Notes: Note l(s) states that arms are not covered in Ch. 95 Turn to Ch. 93 and read Chapter Notes (no mention of such products) Search through Ch. 93, "Sporting shotguns and rifles" appears in heading 9303 v/

48 42 Classification exercises Please supply an appropriate 2-digit Chapter code, 4-digit heading code or 8-digit item code to the following commodity descriptions (answers are given in Annex 3): Sec. I-IV (Oi. 1-24) Chapter code 1. Fresh milk 2. Apple juice 3. Groundnuts in shells 4. Brandy 5. Refined sugar Heading code 6. Poultry wings 7. Ornamental fish 8. Coffee 9. Soya bean oil 10. Tobacco refuse 11. Soya beans 12. Bamboo poles 13. Hop extracts 14. Sea shells, unworked 15. Chewing gum Item code 16. Live pigeons 17. Fresh cream 18. Fresh sweet potatoes 19. Chicken essence 20. Instant noodles 21. Cheese 22. Raw human hair 23. Cultivated ginseng roots 24. Seagrass 25. Cigars

49 43 Sec. V-VII (Ch ) Chapter code 1. Coal gas 2. Paints 3. Hair cream 4. Table salt 5. Glues Heading code 6. Cement clinkers 7. Motor spirit 8. Monophenols 9. Rubber new pneumatic tyres 10. Natural fish fertilizers 11. Shampoos 12. Zinc oxide 13. Rubber gloves 14. Perfumes 15. Plastic cups Item code 16. China clay 17. Petroleum jelly 18. Red lead 19. Eyedrops, put up for retail sale 20. Dental cements 21. Printing ink 22. Joss sticks 23. Propellent powders 24. Waste of polymers of styrene 25. Self-adhesive plastic tapes 26. Plastic bottles 27. X-ray film 28. Butadiene rubber (BR)

50 44 Sec. VIII-X (Ch ) Chapter code 1. Raw hides 2. Fur skins 3. Wood pulp 4. Paper 5. Wood logs Heading code 6. Cowhide leather 7. Fur garment 8. Wood charcoal 9. Newsprint 10. Paper cartons Item code 11. Pig's leather 12. Mink skins, raw 13. Plywood, each ply not exceeding 6 mm thickness 14. Toilet paper, in rolls 15. Paper photo albums Sec. XI (Ch ) (Please see pages 20-21) Sec. XH-XIV (Ch ) Chapter code 1. Hats 2. Sun umbrellas 3. Cement pipes 4. China tableware 5. Glass sheets Heading code 6. Polished marble slabs 7. Sports footwear 8. Glass fibres 9. Monetary gold 10. Imitation jewellery

51 45 Item code 11. Plastic artificial flowers 12. Rear-view glass mirrors for vehicles 13. Ceramic chimney-pots 14. Jade, polished 15. Corrugated asbestos-cement sheets Sec. XV (Ch ) Chapter code 1. Iron and steel 2. Articles of iron and steel 3. Cutlery of base metal 4. Hand tools of base metal 5. Locks Heading code 6. Wire of iron or non-alloy steel 7. Steel pipe fittings 8. Brass door locks 9. Filing cabinets 10. Aluminium foil of 0.1 mm thickness Item code 11. Kerosene stoves 12. Aluminium window frames 13. Can openers 14. Stainless steel pocket knives 15. Metal curtain rails Sec. XVI (Ch ) (Please see page 26) Sec. XVH-XXI (Ch ) Chapter code 1. Public light buses 2. Toys 3. Watches 4. Furniture 5. Buttons

52 46 Heading code 6. Bicycles 7. Lighting fittings 8. Photographic cameras 9. Cigarette lighters 10. Mattresses Item code 11. Sunglasses 12. Table lamps 13. LCD wrist watches 14. Dolls' dresses 15. Camphorwood chests 16. Plastic toys containing electric motor, not radio controlled 17. Mah Jong sets 18. Ball point pens 19. Rulers 20. Plastic dolls

53 47 Annex 1: General Rules for the Interpretation of the Harmonized System Classification of goods in the Nomenclature shall be governed by the following principles: 1 The titles of Sections, Chapters and sub-chapters are provided for ease of 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: 2 (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled. (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. 3 When by application of Rule 2(b) or for any other reason, goods are, prima facie, classifiable under two 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 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. (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(0), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3(a) or 3( ), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 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 in respect of 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 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 articles when of a kind normally sold therewith. The Rule does not, however, apply to containers which give the whole its essential character; (b) Subject to the provisions of Rule 5(a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind

54 48 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. 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.

55 49 Annex 2: Telephone Directory for Enquiries on the HS Subject Enquiry Telephone No. 1 Hong Kong HS commodity classification Transport equipment; watches and clocks; precious stones; optical and scientific equipment; furniture; toys; lighting fittings; other miscellaneous manufactured articles Clothing and footwear Machinery; computers; electronics; radios; televisions; electrical appliances Chemicals and Pharmaceuticals; plastic materials; hides and skins; leather; travel goods Textiles Petroleum products; mineral products; wood, paper and base metal and articles thereof; ceramic products; glass and glassware Food; beverages and tobacco General enquiries Hong Kong trade statistics and indexes Trade statistics general enquiries Trade statistics subscriptions Trade indexes Hong Kong Harmonized System General information

56 50 Annex 3: Answers to Classification Exercises Part 4 Part 5 Part 6 Sec. XI Sec. XVI Sec. I-IV L Tibetan goat hair 32. polyamides, nylon, polyesters, acrylic 33. cotton terry towelling 34. bed sheets Subheading Note 2(A) to Sec. XI and smaller

57 51 Part 6 (Cont'd) Sec. V-VII Sec. VIH-X Sec. XII-XIV Sec. XV Sec. XVH-XXI

58

59

60 XDimi?17 )(fp] H7h1 X H7 hi Hong Kong. Census and t.i st.i r»<s Date Due

61