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TMI BlogClassification of GoodsX X X X Extracts X X X X X X X X Extracts X X X X ..... Harmonized System or simply HS , developed by the World Customs Organization (WCO) which is applied uniformly by more than 137 countries the world over. The Second Schedule contains description of goods chargeable to export duty. As the nomenclature also specifies the Customs duty rates (Tariff), it is called the 'Indian Customs Tariff' or 'Tariff Schedule'. 2. Methodology of classification: 2.1 In the Tariff Schedule, commodities/products are arranged in a fixed pattern with the duty rates specified against each of them. The pattern of arrangement of goods in the Tariff is in increasing degree of manufacture of commodities/products in the sequence of natural products, raw materials; semi finished goods and fully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lved in the negotiation of international commercial arrangements, multilateral tariff agreements etc. should refer to correlation tables showing the transposition of sub-headings from older version to the newer and the newer to the older version of the HS. 2.4 For purposes of uniform interpretation of the HS, the WCO has published detailed Explanatory Notes to various headings/sub-headings. This forms the basis for interpreting the HS. The WCO, in its various committees discusses the classification of individual products and gives classification opinion on them. Such information, though not binding in nature provides a useful guideline for classifying goods. 2.5 The process of arriving at a particular heading/sub-heading code, either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the heading that occurs last in the numerical order as per Rule 3(c). Rule 4 states that goods which cannot be classified by application of the preceding rules may be classified under the heading appropriate to the goods to which they are most akin. Rule 5 applies to packing materials / articles in which the goods are carried. Rule 6 is applied to arrive at the appropriate sub-heading within a heading and for that purpose the provisions of Rules 1 to 5 apply mutatis mutandis on the understanding that sub-headings at the same levels are comparable. For the purpose of Rule 6 the relative Section and Chapter Notes also apply unless the context otherwise requires. 2.7 While classifying goods, the foremost consideration is the 'statuto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de to supplementary texts like the Explanatory Notes to the HS. 2.9 The rate of duty specified in the Tariff Schedule is called 'Tariff rate of duty'. Goods which are not levied concessional rate of duty or exempted from duty by an exemption notification issued under the Customs Act, 1962 are levied the Tariff rate of duty. The Export Tariff Schedule mentions only the commodities on which export tariff is levied. Likewise the Central Excise Tariff prescribed Excise duties against each sub-heading, which is relevant for the purpose of computing the Additional Duty of Customs. Goods which are prescribed 'nil' rates of duty in the Tariff are those goods which are levied to 'free' rates of duty. 2.10 Board issues T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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