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Harmonized Tariff Schedule of the United States (2009)–Supp. 1Annotated for Statistical Reporting PurposesGN p.1GENERAL RULES OF INTERPRETATIONClassification of goods in the tariff schedule shall be governed by the following principles:1.The table of contents, alphabetical index, and 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 chapternotes 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, providedthat, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shallalso include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of thisrule), entered 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 ofthat material or substance with other materials or substances. Any reference to goods of a given material or substance shallbe taken to include a reference to goods consisting wholly or partly of such material or substance. The classification ofgoods 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 generaldescription. However, when two or more headings each refer to part only of the materials or substances contained in mixedor composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equallyspecific 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 forretail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material orcomponent 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(b), they shall be classified under the heading which occurs last innumerical 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 thegoods 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:6.(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 entered with the articlesfor which they are intended, shall be classified with such articles when of a kind normally sold therewith. This 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 entered with the goods therein shallbe classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not bindingwhen such packing materials or packing containers are clearly suitable for repetitive use.For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of thosesubheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that onlysubheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notesalso apply, unless the context otherwise requires.
Harmonized Tariff Schedule of the United States (2009)–Supp. 1Annotated for Statistical Reporting PurposesGN p.2ADDITIONAL U.S. RULES OF INTERPRETATION1.In the absence of special language or context which otherwise requires-(a)a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United Statesat, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and thecontrolling use is the principal use;(b)a tariff classification controlled by the actual use to which the imported goods are put in the United States is satisfied only if suchuse is intended at the time of importation, the goods are so used and proof thereof is furnished within 3 years after the date thegoods are entered;(c)a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for "parts" or"parts and accessories" shall not prevail over a specific provision for such part or accessory; and(d)the principles of section XI regarding mixtures of two or more textile materials shall apply to the classification of goods in anyprovision in which a textile material is named.[COMPILER’S NOTE: The rules of origin provisions for some United States free trade agreements(other than those for the United States-Australia Free Trade Agreement, the United StatesSingapore Free Trade Agreement and the United States-Chile Free Trade Agreement, which doreflect proclaimed rectifications) have NOT been updated to reflect changes to the tariff scheduleresulting from Presidential Proclamation 8097, which modified the HTS to reflect World CustomsOrganization changes to the Harmonized Commodity Description and Coding System and waseffective as of Feb. 3, 2007. You will therefore see tariff heading/subheading numbers in thepertinent general notes which do not correspond to numbers in chapters 1 through 97 or to otherportions of the same general notes. Contact officials of U.S. Customs and Border Protection inorder to ascertain whether affected goods qualify for FTA treatment.]
Harmonized Tariff Schedule of the United States (2009)–Supp. 1Annotated for Statistical Reporting PurposesGN p.3GENERAL NOTES1.Tariff Treatment of Imported Goods and of Vessel Equipments, Parts and Repairs. All goods provided for in this schedule and importedinto the customs territory of the United States from outside thereof, and all vessel equipments, parts, materials and repairs covered bythe provisions of subchapter XVIII to chapter 98 of this schedule, are subject to duty or exempt therefrom as prescribed in general notes3 through 29, inclusive.2.Customs Territory of the United States. The term "customs territory of the United States", as used in the tariff schedule, includes onlythe States, the District of Columbia and Puerto Rico.3.Rates of Duty. The rates of duty in the "Rates of Duty" columns designated 1 ("General" and "Special") and 2 of the tariff schedule applyto goods imported into the customs territory of the United States as hereinafter provided in this note:(a)Rate of Duty Column 1.(i)Except as provided in subparagraph (iv) of this paragraph, the rates of duty in column 1 are rates which are applicable to allproducts other than those of countries enumerated in paragraph (b) of this note. Column 1 is divided into two subcolumns,"General" and "Special", which are applicable as provided below.(ii)The "General" subcolumn sets forth the general or normal trade relations (NTR) rates which are applicable to products ofthose countries described in subparagraph (i) above which are not entitled to special tariff treatment as set forth below.(iii)The "Special" subcolumn reflects rates of duty under one or more special tariff treatment programs described in paragraph(c) of this note and identified in parentheses immediately following the duty rate specified in such subcolumn. These ratesapply to those products which are properly classified under a provision for which a special rate is indicated and for which allof the legal requirements for eligibility for such program or programs have been met. Where a product is eligible for specialtreatment under more than one program, the lowest rate of duty provided for any applicable program shall be imposed.Where no special rate of duty is provided for a provision, or where the country from which a product otherwise eligible forspecial treatment was imported is not designated as a beneficiary country under a program appearing with the appropriateprovision, the rates of duty in the "General" subcolumn of column 1 shall apply.(iv)Products of Insular Possessions.(A)Except as provided in additional U.S. note 5 of chapter 91 and except as provided in additional U.S. note 2 of chapter96, and except as provided in section 423 of the Tax Reform Act of 1986, and additional U.S. note 3(e) of chapter 71,goods imported from insular possessions of the United States which are outside the customs territory of the UnitedStates are subject to the rates of duty set forth in column 1 of the tariff schedule, except that all such goods the growthor product of any such possession, or manufactured or produced in any such possession from materials the growth,product or manufacture of any such possession or of the customs territory of the United States, or of both, which do notcontain foreign materials to the value of more than 70 percent of their total value (or more than 50 percent of their totalvalue with respect to goods described in section 213(b) of the Caribbean Basin Economic Recovery Act), coming to thecustoms territory of the United States directly from any such possession, and all goods previously imported into thecustoms territory of the United States with payment of all applicable duties and taxes imposed upon or by reason ofimportation which were shipped from the United States, without remission, refund or drawback of such duties or taxes,directly to the possession from which they are being returned by direct shipment, are exempt from duty.(B)In determining whether goods produced or manufactured in any such insular possession contain foreign materials tothe value of more than 70 percent, no material shall be considered foreign which either-(1)at the time such goods are entered, or(2)at the time such material is imported into the insular possession,may be imported into the customs territory from a foreign country, and entered free of duty; except that no goodscontaining material to which (2) of this subparagraph applies shall be exempt from duty under subparagraph (A) unlessadequate documentation is supplied to show that the material has been incorporated into such goods during the18-month period after the date on which such material is imported into the insular possession.(C)Subject to the limitations imposed under sections 503(a)(2), 503(a)(3) and 503(c) of the Trade Act of 1974, goodsdesignated as eligible under section 503 of such Act which are imported from an insular possession of the UnitedStates shall receive duty treatment no less favorable than the treatment afforded such goods imported from abeneficiary developing country under title V of such Act.
Harmonized Tariff Schedule of the United States (2009)–Supp. 1Annotated for Statistical Reporting PurposesGN p.4Insular possessions/West Bank(v)(D)Subject to the provisions in section 213 of the Caribbean Basin Economic Recovery Act, goods which are importedfrom insular possessions of the United States shall receive duty treatment no less favorable than the treatment affordedsuch goods when they are imported from a beneficiary country under such Act.(E)Subject to the provisions in section 204 of the Andean Trade Preference Act, goods which are imported from insularpossessions of the United States shall receive duty treatment no less favorable than the treatment afforded such goodswhen they are imported from a beneficiary country under such Act.(F)No quantity of an agricultural product that is subject to a tariff-rate quota that exceeds the in-quota quantity shall beeligible for duty-free treatment under this paragraph.Products of the West Bank, the Gaza Strip or a qualifying industrial zone.(A)Subject to the provisions of this paragraph, articles which are imported directly from the West Bank, the Gaza Strip, aqualifying industrial zone as defined in subdivision (G) of this subparagraph or Israel and are-(1)wholly the growth, product or manufacture of the West Bank, the Gaza Strip or a qualifying industrial zone; or(2)new or different articles of commerce that have been grown, produced or manufactured in the West Bank, theGaza Strip or a qualifying industrial zone, and the sum of-(I)the cost or value of the materials produced in the West Bank, the Gaza Strip, a qualifying industrial zone orIsrael, plus(II)the direct costs of processing operations (not including simple combining or packaging operations, and notincluding mere dilution with water or with another substance that does not materially alter the characteristicsof such articles) performed in the West Bank, the Gaza Strip, a qualifying industrial zone or Israel,is not less than 35 percent of the appraised value of such articles;shall be eligible for duty-free entry into the customs territory of the United States. For purposes of subdivision (A)(2),materials which are used in the production of articles in the West Bank, the Gaza Strip or a qualifying industrial zone,and which are the product of the United States, may be counted in an amount up to 15 percent of the appraised valueof such articles.(B)Articles are "imported directly" for the purposes of this paragraph if-(1)they are shipped directly from the West Bank, the Gaza Strip, a qualifying industrial zone or Israel into the UnitedStates without passing through the territory of any intermediate country; or(2)they are shipped through the territory of an intermediate country, and the articles in the shipment do not enter intothe commerce of any intermediate country and the invoices, bills of lading and other shipping documents specifythe United States as the final destination; or(3)they are shipped through an intermediate country and the invoices and other documents do not specify the UnitedStates as the final destination, and thearticles-(I)remain under the control of the customs authority in an intermediate country;(II)do not enter into the commerce of an intermediate country except for the purpose of a sale other than atretail, but only if the articles are imported as a result of the original commercial transactions between theimporter and the producer or the producer's sales agent; and(III)have not been subjected to operations other than loading, unloading or other activities necessary topreserve the articles in good condition.(C)The term "new or different articles of commerce" means that articles must have been substantially transformed in theWest Bank, the Gaza Strip or a qualifying industrial zone into articles with a new name, character or use.(D)(1)For the purposes of subdivision (A)(2)(I), the cost or value of materials produced in the West Bank, the GazaStrip or a qualifying industrial zone includes-(I)the manufacturer's actual cost for the materials;(II)when not included in the manufacturer's actual cost for the materials, the freight, insurance, packing and allother costs incurred in transporting the materials to the manufacturer's plant;
Harmonized Tariff Schedule of the United States (2009)–Supp. 1Annotated for Statistical Reporting PurposesGN p.5West Bank(III)the actual cost of waste or spoilage, less the value of recoverable scrap; and(IV) taxes or duties imposed on the materials by the West Bank, the Gaza Strip or a qualifying industrial zone, ifsuch taxes are not remitted on exportation.(2)(E)If a material is provided to the manufacturer without charge, or at less than fair market value, its cost or valueshall be determined by computing the sum of-(I)all expenses incurred in the growth, production or manufacturer of the material, including general expenses;(II)an amount for profit; and(III)freight, insurance, packing and all other costs incurred in transporting the material to the manufacturer'splant.(3)If the information necessary to compute the cost or value of a material is not available, the Customs Service mayascertain or estimate the value thereof using all reasonable methods.(1)For purposes of this paragraph, the "direct costs of processing operations performed in the West Bank, the GazaStrip or a qualifying industrial zone" with respect to an article are those costs either directly incurred in, or whichcan be reasonably allocated to, the growth, production, manufacture or assembly of that article. Such costsinclude, but are not limited to, the following to the extent that they are includible in the appraised value of articlesimported into the United States:(I)All actual labor costs involved in the growth, production, manufacture or assembly of the article, includingfringe benefits, on-the-job training and costs of engineering, supervisory, quality control and similarpersonnel;(II)Dies, molds, tooling and depreciation on machinery and equipment which are allocable to such articles;(III)Research, development, design, engineering and blueprint costs insofar as they are allocable to sucharticles; and(IV) Costs of inspecting and testing such articles.(2)(F)Those items that are not included as direct costs of processing operations with respect to an article are thosewhich are not directly attributable to the article or are not costs of manufacturing the article. Such items include,but are not limited to-(I)profit; and(II)general expenses of doing business which are either not allocable to the article or are not related to thegrowth, production, manufacture or assembly of the article, such as administrative salaries, casualty andliability insurance, advertising and salesmen's salaries, commissions or expenses.Whenever articles are entered with a claim for the duty exemption provided in this paragraph-(1)the importer shall be deemed to certify that such articles meet all of the conditions for duty exemption; and(2)when requested by the Customs Service, the importer, manufacturer or exporter submits a declaration settingforth all pertinent information with respect to such articles, including the following:(I)A description of such articles, quantities, numbers and marks of packages, invoice numbers and bills oflading;(II)A description of the operations performed in the production of such articles in the West Bank, the GazaStrip, a qualifying industrial zone or Israel and an identification of the direct costs of processing operations;(III)A description of the materials used in the production of such articles which are wholly the growth, product ormanufacture of the West Bank, the Gaza Strip, a qualifying industrial zone, Israel or the United States, anda statement as to the cost or value of such materials;(IV) A description of the operations performed on, and a statement as to the origin and cost or value of, anyforeign materials used in such articles which are claimed to have been sufficiently processed in the WestBank, the Gaza Strip, a qualifying industrial zone or Israel so as to be materials produced in the West Bank,the Gaza Strip, a qualifying industrial zone or Israel; and
Harmonized Tariff Schedule of the United States (2009)–Supp. 1Annotated for Statistical Reporting PurposesGN p.6West Bank/Col. 2/Special symbols(V)(G)(b)A description of the origin and cost or value of any foreign materials used in the article which have not beensubstantially transformed in the West Bank, the Gaza Strip or a qualifying industrial zone.For the purposes of this paragraph, a "qualifying industrial zone" means any area that-(1) encompasses portions of the territory of Israel and Jordan or Israel and Egypt;(2)has been designated by local authorities as an enclave where merchandise may enter without payment of duty orexcise taxes; and(3)has been designated by the United States Trade Representative in a notice published in the Federal Register asa qualifying industrial zone.Rate of Duty Column 2. Notwithstanding any of the foregoing provisions of this note, the rates of duty shown in column 2 shallapply to products, whether imported directly or indirectly, of the following countries and areas pursuant to section 401 of the TariffClassification Act of 1962, to section 231 or 257(e)(2) of the Trade Expansion Act of 1962, to section 404(a) of the Trade Act of1974 or to any other applicable section of law, or to action taken by the President thereunder:CubaNorth Korea(c) Products Eligible for Special Tariff Treatment.(i)Programs under which special tariff treatment may be provided, and the corresponding symbols for such programs as theyare indicated in the "Special" subcolumn, are as follows:Generalized System of Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .United States-Australia Free Trade Agreement . . . . . . . . . . . . . . . . . . . . . . . . .Automotive Products Trade Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .United States-Bahrain Free Trade Agreement Implementation Act . . . . . . . . . .Agreement on Trade in Civil Aircraft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .North American Free Trade Agreement:Goods of Canada, under the terms ofgeneral note 12 to this schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Goods of Mexico, under the terms ofgeneral note 12 to this schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .United States-Chile Free Trade Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . .African Growth and Opportunity Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Caribbean Basin Economic Recovery Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . .United States-Israel Free Trade Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Andean Trade Preference Act orAndean Trade Promotion and Drug Eradication Act . . . . . . . . . . . . . . . .United States-Jordan Free Trade Area Implementation Act . . . . . . . . . . . . . . . .Agreement on Trade in Pharmaceutical Products . . . . . . . . . . . . . . . . . . . . . . .Dominican Republic-Central America-United StatesFree Trade Agreement Implementation Act . . . . . . . . . . . . . . . . . . . . . . .Uruguay Round Concessions on IntermediateChemicals for Dyes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .United States-Caribbean Basin Trade Partnership Act . . . . . . . . . . . . . . . . . . .United States-Morocco Free Trade Agreement Implementation Act . . . . . . . . .United States-Singapore Free Trade Agreement . . . . . . . . . . . . . . . . . . . . . . . .United States-Oman Free Trade Agreement Implementation Act . . . . . . . . . . .“United States-Peru Trade Promotion Agreement Implementation Act . . . . . . .A, A* or A AUBBHCCAMXCLDE or E*ILJ, J* or J JOKP or P LRMASGOMPE
Harmonized Tariff Schedule of the United States (2009)–Supp. 1Annotated for Statistical Reporting PurposesGN p.7Duty treatment/Motor vehicles(ii)(d)Articles which are eligible for the special tariff treatment provided for in general notes 4 through 14 and which are subjectto temporary modification under any provision of subchapters I, II and VII of chapter 99 shall be subject, for the periodindicated in the "Effective Period" column in chapter 99, to rates of duty as follows:(A)if a rate of duty for which the article may be eligible is set forth in the "Special" subcolumn in chapter 99 followed byone or more symbols described above, such rate shall apply in lieu of the rate followed by the correspondingsymbol(s) set forth for such article in the "Special" subcolumn in chapters 1 to 98; or(B)if "No change" appears in the "Special" subcolumn in chapter 99 and subdivision (c)(ii)(A) above does not apply,the rate of duty in the "General" subcolumn in chapter 99 or the applicable rate(s) of duty set forth in the "Special"subcolumn in chapters 1 to 98, whichever is lower, shall apply.(iii)Unless the context requires otherwise, articles which are eligible for the special tariff treatment provided for in generalnotes 4 through 14 and which are subject to temporary modification under any provision of subchapters III or IV ofchapter 99 shall be subject, for the period indicated in chapter 99, to the rates of duty in the "General" subcolumn in suchchapter.(iv)Whenever any rate of duty set forth in the "Special" subcolumn in chapters 1 to 98 is equal to or higher than, thecorresponding rate of duty provided in the "General" subcolumn in such chapters, such rate of duty in the "Special"subcolumn shall be deleted; except that, if the rate of duty in the "Special" subcolumn is an intermediate stage in a seriesof staged rate reductions for that provision, such rate shall be treated as a suspended rate and shall be set forth in the"Special" subcolumn, followed by one or more symbols described above, and followed by an "s" in parentheses. If norate of duty for which the article may be eligible is provided in the "Special" subcolumn for a particular provision inchapters 1 to 98, the rate of duty provided in the "General" subcolumn shall apply.Certain Motor Vehicles Manufactured in Foreign Trade Zones.(i)Duty imposed. Notwithstanding any other provision of law, the duty imposed on a qualified article shall be the amountdetermined by multiplying the applicable foreign value content of such article by the applicable rate of duty for sucharticle.(ii)Qualified article. For purposes of this subdivision, the term "qualified article" means an article that is--(iii)(iv)(A)classifiable under any of subheadings 8702.10 through 8704.90 of the Harmonized Tariff Schedule of the UnitedStates,(B)produced or manufactured in a foreign trade zone before January 1, 1996,(C)exported therefrom to a NAFTA country (as defined in section 2(4) of the North American Free Trade AgreementImplementation Act (19 U.S.C. 3301(4)), and(D)subsequently imported from that NAFTA country into the customs territory of the United States-(I)on or after the effective date of this subdivision, or(II)on or after January 1, 1994, and before such effective date, if the entry of such article is unliquidated, underprotest, or in litigation, or liquidation is otherwise not final on such effective date.Applicable foreign value content.(A)Applicable foreign value content. For purposes of this subdivision, the term "applicable foreign value content"means the amound determined by multiplying the value of a qualified article by the applicable percentage.(B)Applicable percentage. The term "applicable percentage" means the FTZ percentage for the article plus 5percentage points.Other definitions and special rules. For purposes of this subdivision-(A)FTZ percentage. The FTZ percentage for a qualified article shall be the percentage determined in accordancewith subparagraph (I), (II), or (III) of this paragraph, whichever is applicable.(I)Report for year published. If, at the time a qualified article is entered, the FTZ Annual Report for the year inwhich the article was manufactured has been published, the FTZ percentage for the article shall be thepercentage of foreign status merchandise set forth in that report for the subzone in which the qualifiedarticle was manufactured, or if not manufactured in a subzone, the foreign trade zone in which the qualifiedarticle was manufactured.
Harmonized Tariff Schedule of the United States (2009)–Supp. 1Annotated for Statistical Reporting PurposesGN p.8Motor vehicles/Exemptions/Commingling(II)(e)Report for year not published. If, at the time a qualified article is entered, the FTZ Annual Report for theyear in which the article was manufactured has not been published, the FTZ percentage for the article shallbe the percentage of foreign status merchandise set forth in the most recently published FTZ Annual Reportfor the subzone in which the article was manufactured, or if not manufactured in a subzone, the foreigntrade zone in which the qualified article was manufactured.(B)Applicable rate of duty. The term "applicable duty rate" means the rate of duty set forth in any of subheadings8702.10 through 8704.90 of the Harmonized Tariff Schedule of the United States that is applicable to the qualifiedarticle and which would apply to that article if the article were directly entered for consumption into the UnitedStates from the foreign trade zone with non-privileged foreign status having been claimed for all foreignmerchandise used in the manufacture or production of the qualified article.(C)Foreign trade zone; subzone. The terms "foreign trade zone" and "subzone" mean a zone or subzone establishedpursuant to the Act of June 18, 1934, commonly known as the Foreign Trade Zones Act (19 U.S.C. 81a et seq.).(D)FTZ annual report. The term "FTZ Annual Report" means the Annual Report to the Congress published inaccordance with section 16 of the Foreign Trade Zones Act (19 U.S.C. 81p(c)).(E)Non-privileged foreign status. The term "non-privileged foreign status" means that privilege has not beenrequested with respect to an article pursuant to section 3 of the Foreign Trade Zones Act.Exemptions. For the purposes of general note 1-(i)corpses, together with their coffins and accompanying flowers,(ii)telecommunications transmissions,(iii)records, diagrams and other data with regard to any business, engineering or exploration operation whether on paper,cards, photographs, blueprints, tapes or other media,(iv)articles returned from space within the purview of section 484a of the Tariff Act
GN p.2 ADDITIONAL U.S. RULES OF INTERPRETATION 1. In the absence of special language or context which otherwise requires--(a) a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States
