TMI BlogClassification of GoodsX X X X Extracts X X X X X X X X Extracts X X X X ..... monized 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 finished goods/article / ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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/subheadings. 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/subheading code, either at four digit, six digit or eight digit level for a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 subheading within a heading and for that purpose the provisions of Rules 1 to 5 apply mutatis mutandis on the understanding that subheadings 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 statutory definition and any guideline provided by HS Explanatory Notes. In their absence, the cardinal princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 subheading, 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 Tariff Advices in the form of circulars to ensure uniformity in classification of goods at an All India level. Such issues also get discussed and resolved ..... X X X X Extracts X X X X X X X X Extracts X X X X
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