"Rules of the Customs Tariff": The General Rules for the Interpretation of the Harmonized System

In times of new trade conflicts, customs classification is increasingly discussed in the media. Are there at least internationally uniform rules that regulate customs classification "timelessly"? The so-called "General Rules of Interpretation" (GRI) of the Harmonized System are the core of the customs tariff classification. They set the rules for how goods are classified into the various headings of the Combined Nomenclature (CN). This is crucial because only a correct classification allows smooth customs clearance and accurate calculation of import duties.

In order for all users to achieve the same result, "rules of the game" are needed. These "rules of the game" should ensure a uniform classification of goods. These are considered international law; they are legally binding, and one must adhere to the rules of the game and be able to argue accordingly with customs authorities when there are discrepancies.

The so-called General Rules of Interpretation are a kind of checklist that should be followed step by step. Please click on the links below to view the nomenclature at subheading level.

There are six General Rules of Interpretation. The fifth is a special rule that governs how packaged goods are classified. The majority of all goods are already classified using the first rule. It states:

General Rule 1 (Goods conform to wording of the first four digits = heading)

💡 The term "heading" is frequently encountered and simply means "the first four digits" of the customs tariff numbers.

👉 If we therefore want to classify a "plastic plate" in the nomenclature, the following wording of heading 3924 is the most suitable: "Tableware, other household or kitchen articles, hygiene or toilet articles, of plastics"

👉 However, if this plastic plate is a toy (for example, a plastic plate for LEGO), it will be excluded from Chapter 39 due to the Note 2y to Chapter 39 "Goods of Chapter 95 (e.g., toys, games, sports equipment) (GRI E3902Y00);". It will be classified under Chapter 95.

General Rule 2a (Dismantled, incomplete goods)

💡 This provision is intended to prevent abuse and ensure that products are not deliberately dismantled to classify their parts under other headings with potentially lower duty rates.

👉 Goods that have to be shipped disassembled for transport reasons (for example, a cableway with drive, towing and carrying cables, supports, and cabins), are classified under heading 8428. This means that in a customs declaration, the entire cableway is declared under one heading and not with multiple headings for the individual parts – even if the transport takes place in several containers.

💡 Of course, this regulation does not apply to spare parts shipped individually at a later date and billed separately.

General Rule 2b (Raw material positions also apply to mixed goods)

👉 Simply put: All plastic goods of Chapter 39 can also contain shares of other raw materials. For example, a "plastic plate with a decorative steel rim" would still be classified under heading 3924 – provided the plate is predominantly made of plastic.

General Rule 3a (Multiple headings viable = more specific wording prevails)

💡 A heading that specifies a specific product by name is more precise than one that covers an entire area of merchandise: e.g., razors belong to heading 8510 (”Razors, … with built-in electric motor”) and not to heading 8467 (”… hand-held tools with electric motor (electric ...)) or to heading 8509 (”Electromechanical household appliances with built-in electric motor, ...”).

General Rule 3b (Classification according to the essential character of composite or mixed goods)

The feature that determines the essential character depends on the nature of the good and will be determined from case to case. The character of the good may be derived from:

• the material nature, or

• the components it is composed of,

• its volume,

• its quantity,

• its weight,

• its value, or

• the importance of a material in relation to the use of the good.

Examples:

• An empty yogurt cup, inside made of plastic (Pos. 3923) and outside made of cardboard (Pos. 4819) → by the significance of the material due to the plastic cup's function as a container for yogurt

• Frozen berry mix containing 60% strawberries (subheading 0811.10) and 40% blueberries (subheading 0811.90) → Volume (predominantly strawberries)

• A hammer with a wooden handle (Pos. 4421) and a rubber head (Pos. 4016) → by significance of the material due to the head being the working part

General Rule 3c ("Last-Resort-Rule", classification according to the last applicable heading in order of enumeration)

👉 Example: A glass body that can equally function as a vase (glassware for interior decoration of heading 7013) and as a candle holder (lighting fittings of heading 9405).

Neither the more specific designation (GRI 3a) nor the essential character (GRI 3b) can be defined here, so the heading last in numerical order (GRI 3c) is applied.

Heading 7013 → "Glassware ... for interior use or similar purposes (excluding goods of heading 7010 or 7018)"

Heading 9405 → "Lamps and lighting fittings (including spotlights) and parts thereof, …"

→ Classification under the last listed heading in sequence: 9405

General Rule 4 (for groundbreaking innovations (!), so please do not argue with it 😉)

💡 This rule is rarely applied by customs authorities that issue binding tariff information (BTIs), as most goods should be classified under GRIs 1-3.

General Rule 5 (Goods in packaging are classified according to their contents)

👉 Thus, a yogurt cup filled with strawberry yogurt, inside made of plastic (Pos. 3923) and outside made of cardboard (Pos. 4819), is classified under heading 0403 "Yogurt (...)".

General Rule 6 (All preceding rules also apply for determining the subheadings)

👉 Natural yogurt with a fat content of 3.8% is initially assigned to heading 0403 under GRI 1. The further subheadings are determined as follows:

👉 Example of an exclusion note: Vegan yogurts based on coconut milk are excluded due to Note 5c to Chapter 4 and classified in heading 2106.

Manual classification of "frozen durians"

• Find the appropriate wording in Access2Markets

• Click on the plus on the left in Section II = "Vegetable Products"

• Click on the plus on the left in Chapter 08 = "Edible fruit and nuts; peels of citrus fruits or melons".

😉 The wording of heading 0810 "Other fruit, fresh" does not apply here.

• A more appropriate wording according to GRI 1 is therefore to be found in heading 0811

👉 "Fruit and nuts, even cooked in water or steam, frozen, even with added sugar or other sweeteners"

• Next, the appropriate subheading within heading 0811 should be determined.

• Since neither "strawberries" (0811.10) nor "raspberries, blackberries, mulberries, loganberries, black, white or red currants, and gooseberries" (0811.20) are applicable, the HS subheading 0811.90 "others" should be selected.

• Even when choosing between “with added sugar or other sweeteners” and “others”, the case is clear. It pertains to fresh durian fruits without added sugar; thus, the plus on the left of "others" is to be clicked.

• Upon reviewing the remaining subheadings, it becomes clear: Neither blueberries nor cherries are relevant. But could perhaps subheading 0811 90 85 with the wording "tropical fruits and tropical nuts" be applicable? "Of course!", many would promptly answer. But as we know according to GRI 1, not only are the wordings of headings legally relevant but also the section and chapter notes related to them.

• Notes are not easily found in many customs tariff applications. While "Access2Markets" does not contain notes, these are available in the German Customs Tariff – more precisely in the "Electronic Customs Tariff" (EZT).

• Please click on the following link: https://auskunft.ezt-online.de/ezto/Welcome.do

• Click directly on “Texts” in the header.

• Click on "Contents Notes” in the newly opened tab.

• Now click on “Chapter 08” (EDIBLE FRUIT AND NUTS; PEELS OF CITRUS FRUITS OR MELONS)

• In the Additional Notes 2, you will find the definition of "tropical fruits" in the context of subheading 0811 90 85. You will find: Frozen durian fruits are not included in the enumeration and thus do not count as tropical fruits.

• Returning to the tariff tree of "Access2Markets", we can establish the final customs tariff number: 0811 90 95 90.