RULE 3

(I)    This Rule provides three methods of classifying goods which, prima facie, fall under two or more headings, either under the terms of Rule 2 (b) or for any other reason. These methods operate in the order in which they are set out in the Rule. Thus Rule 3 (b) operates only if Rule 3 (a) fails in classification, and if both Rules 3 (a) and (b) fail, Rule 3 (c) will apply. The order of priority is therefore (a) specific description; (b) essential character; (c) heading which occurs last in numerical order.

(II)   The Rule can only take effect provided the terms of headings or Section or Chapter Notes do not otherwise require. For instance, Note 5 (B) to Chapter 97 requires that goods covered both by the description in one of the headings  97.01 to 97.05 and by the description in heading  97.06 shall be classified in one of the former headings. Such goods are to be classified according to Note 5 (B) to Chapter 97 and not according to this Rule.  

RULE 3 ( a)

(III)  The first method of classification is provided in Rule 3 (a), under which the heading which provides the most specific description of the goods is to be preferred to a heading which provides a more general description.

(IV)  It is not practicable to lay down hard and fast rules by which to determine whether one heading more specifically describes the goods than another, but in general it may be said that :

(a)  A description by name is more specific than a description by class (e.g., shavers and hair clippers, with self‑contained electric motor, are classified in heading 85.10 and not in heading 84.67 as tools for working in the hand with self‑contained electric motor or in heading 85.09 as electro‑mechanical domestic appliances with self‑contained electric motor).

(b) If the goods answer to a description which more clearly identifies them, that description is more specific than one where identification is less complete.

      Examples of the latter category of goods are :

(1)         Tufted textile carpets, identifiable for use in motor cars, which are to be classified not as accessories of motor cars in heading 87.08 but in heading 57.03, where they are more specifically described as carpets.

(2)       Unframed safety glass consisting of toughened or laminated glass, identifiable for use in aircraft but not advanced beyond having been shaped, is to be classified not in heading 88.07 as parts of goods of heading 88.01, 88.02 or 88.06 but in heading 70.07, where it is more specifically described as safety glass.

(V)  However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description than the others. In such cases, the classification of the goods shall be determined by Rule 3 (b) or 3 (c).

RULE 3 (b)

(VI)   This second method relates only to :

(i)      Mixtures.

(ii)     Composite goods consisting of different materials.

(iii)    Composite goods consisting of different components.

(iv)    Goods put up in sets for retail sales.

It applies only if Rule 3 (a) fails.

(VII)  In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

(VIII) The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

(IX)   For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.

Examples of the latter category of goods are :

(1)   Ashtrays consisting of a stand incorporating a removable ash bowl.

(2)  Household spice racks consisting of a specially designed frame (usually of wood) and an appropriate number of empty spice jars of suitable shape and size.

As a general rule, the components of these composite goods are put up in a common packing.

(X)   For the purposes of this Rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which :

(a) consist of at least two different articles which are, prima facie, classifiable in different headings. Therefore, for example, six fondue forks cannot be regarded as a set within the meaning of this Rule;

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and 

(c) are put up in a manner suitable for sale directly to end users without repacking (e.g., in boxes or cases or on boards).

     “Retail sale” does not include sales of products which are intended to be re-sold after further manufacture, preparation, repacking or incorporation with or into other goods.

     The term “goods put up in sets for retail sale” therefore only covers sets consisting of goods which are intended to be sold to the end user where the individual goods are intended to be used together. For example, different foodstuffs intended to be used together in the preparation of a ready-to-eat dish or meal, packaged together and intended for consumption by the purchaser would be a “set put up for retail sale”.

           Examples of sets which can be classified by reference to Rule 3 (b) are :

(1)     (a)   Sets consisting of a sandwich made of beef, with or without cheese, in a bun (heading 16.02), packaged with potato chips (French fries) (heading 20.04) :

                 Classification in heading 16.02.

          (b)   Sets, the components of which are intended to be used together in the preparation of a spaghetti meal, consisting of a packet of uncooked spaghetti (heading 19.02), a sachet of grated cheese (heading 04.06) and a small tin of tomato sauce (heading 21.03), put up in a carton :

                 Classification in heading 19.02.

     The Rule does not, however, cover selections of products put up together and consisting, for example, of :

  ‑      a can of shrimps (heading 16.05), a can of  pâté de foie (heading 16.02), a can of cheese (heading 04.06), a can of sliced bacon (heading 16.02), and a can of cocktail sausages (heading 16.01); or

  ‑      a bottle of spirits of heading 22.08 and a bottle of wine of heading 22.04.

     In the case of these two examples and similar selections of products, each item is to be classified separately in its own appropriate heading. This also applies, for example, to soluble coffee in a glass jar (heading 21.01), a ceramic cup (heading 69.12) and a ceramic saucer (heading 69.12) put up together for retail sale in a paperboard box .

(2) Hairdressing sets consisting of a pair of electric hair clippers (heading 85.10), a comb (heading 96.15), a pair of scissors (heading 82.13), a brush (heading 96.03) and a towel of textile material (heading 63.02), put up in a leather case (heading 42.02) :

      Classification in heading 85.10.

(3) Drawing kits comprising a ruler (heading 90.17), a disc calculator (heading 90.17), a drawing compass (heading 90.17), a pencil (heading 96.09) and a pencil‑sharpener (heading 82.14), put up in a case of plastic sheeting (heading 42.02) :

      Classification in heading 90.17.

     For the sets mentioned above, the classification is made according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character.

(XI)  This Rule does not apply to goods consisting of separately packed constituents put up together, whether or not in a common packing, in fixed proportions for the industrial manufacture of, for example, beverages.

RULE 3 (c)

(XII)  When goods cannot be classified by reference to Rule 3 (a) or 3 (b), they are to be classified in the heading which occurs last in numerical order among those which equally merit consideration in determining their classification.