Classification Disputes

Classification is approached through a systematic application of the General Rules for the Interpretation (GIR) of the First Schedule to the CTA 1975. The GIR provide a hierarchical set of principles.

• GIR 1 stipulates that titles of Sections, Chapters, and sub-Chapters are for ease of reference only; classification is determined by the terms of the headings and any relative Section or Chapter Notes.

• GIR 3 provides rules for goods classifiable under two or more headings:

  • GIR 3(a) states that the heading providing the most specific description is preferred to more general descriptions.

  • GIR 3(b) applies to mixtures, composite goods, and sets for retail sale, directing classification based on the material or component giving the essential character, if applicable.

• GIR 4 states that goods not classifiable by GIR 1 to 3 are classified under the heading appropriate to goods to which they are most akin.

For complex products, the interplay between GIR 1 and GIR 3(a) or 3(b) is pivotal. The argument for a certain Heading often centers on the premise that the item imparts the essential character, even if other components like solvents or preservatives are present.

Such conflicts necessitate a detailed analysis by product enduse, technical datasheets, purpose and so on. We specialize in resolving classification disputes in Customs and GST through a very detailed analysis for each product.