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Customs Tariff – Legal Notes and Explanatory Notes
LEGAL NOTES
Essentially, legal notes are consolidated notes that outline conditions that apply to all goods that are to be found within a given Section or Chapter. These critical notes appear at the beginning of each Section and Chapter within the tariff.
A precise interpretation of the heading or subheading cannot be made without using the Legal and Explanatory notes.
Four Levels of Legal Notes
1) Section
2) Chapter
3) Sub-Heading
4) Supplementary
• Form part of the Customs Tariff legislation
• Distinct from the Explanatory Notes, which are instructive only
• Essential tool in the classification process
• Located at beginning of Sections and Chapters
• There are both International and National notes.
Inclusions: what goods are covered in a particular section, chapter, or heading; including conditions to qualify.
Exclusions: list goods which are excluded from a section, chapter, or heading; & directs us to the appropriate section, chapter, or heading.
Directions: specify how a commodity is to be classified.
Parts: provisions for the classification of parts within a particular section, chapter, or heading.
HS EXPLANATORY NOTES
Available for order from WCO
• Same sequence/structure as the HS
• Reprint Section/Chapter Notes
• Give direction as to goods covered
§ Define/explain terminology
§ Lists of goods
§ Exclusions and inclusions
§ Technical descriptions (appearance, properties, etc.)
§ Methods of production or uses
5 LEVELS
1) General Content of the Section Section XVI
2) General Notes to the Chapter Chapter 84
3) To the Heading 84.07
4) To the Subheading 8407.10
5) Canadian Notes
TO SUBHEADING (6 DIGIT)
• Tool to assist in classification
• Indicated if (+) at end of exp.. note to heading
• More detail: specific to subheading
• Example: 17.01(+)
1701.11
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