GENERAL RULES FOR THE INTERPRETATION OF THE HARMINIZED SYSTEM

  Classification of goods in the Nomenclature shall be governed by the
following principles :

1.   The 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 Chapter
     Notes 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, provided that, as 
        presented, the incomplete or unfinished article has the essential character 
        of the complete or finished article. It shall also be taken to include a 
        reference to that article complete or finished (or falling to be classified 
        as complete or finished by virtue of this Rule), presented 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 of that material or 
        substance with other materials or substances. Any reference to goods of a 
        given material or substance shall be taken to include a reference to goods 
        consisting wholly or partly of such material or substance. The 
        classification of goods 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 general description. 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 of the goods.



     (b) Mixtures, composite goods consisting of different materials or made up of 
         different components, and goods put up in sets for retail sale, which 
         cannot be classified by reference to 3 (a), shall be classified as if they 
         consisted of the material or component which gives them their essential 
         character, insofar as this criteria in 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 in numerical
         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 the goods 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 :

     (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 presented with the articles for 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 presented with the goods therein shall be classified 
         with the goods if they are of a kind normally used for packing such goods. 
         However, this provision is not binding when such packing materials or 
         packing containers are clearly suitable for repetitive use.


6.   For legal purposes, the classification of goods in the subheadings of a heading 
     shall be determined according to the terms of those subheadings and any related 
     Subheading Notes and, mutatis mutandis, to the above Rules, on the 
     understanding that only subheadings at the same level are comparable. For the 
     purposes of this Rule the relative Section and Chapter Notes also apply, unless 
     the context otherwise requires.

*7.  Throughout the Nomenclature the expression “packed for sale by retail” shall 
     man that the goods concerned are put up for sale in containers in quantities of 
     1200 grams or less; and the expression “tablet form” shall mean that goods are 
     made in the shape of tablets, pills, discs, sticks, rods, balls or other form 
     and that the weight of each article (or if the shapes are composed of smaller 
     shapes, the weight of each of the smaller shapes) does not exceed 200 grams, 
     n.e.s.

*8.  Throughout the Nomenclature the term “containers” shall mean any container  
     of wood, metal, glass, paperboard, plastic or other material, provided that
     they are in immediate contact with the goods therein. 

*9.  The expression “CKD” means completely knocked down condition as determined
     by The Decree of The Minister of of Industry and  Trade that has been
     delivered and accepted by The Minister of Finance.


*10. If there is any doubt in interpretation of the texts provided for in this
     Nomenclature, as long as the text are related to :
     - General Rules for the interpretation of the Harmonized System,
       Paragraph 1 to 6;
     - Section Notes, Chapter Notes, Subheading Notes;
     - Description of goods in 4 digits level;
     - Description of goods in 6 digits level;
     - Description of goods in 8 digits level;
     - Description of goods in 10 digits level in which the last two digits are
       “00” (e.g. 7608.10.00.00)
       the English texts shall bind as stated in the original text of the HS or
       AHTN. As long as the texts are related to especially Chapter 98 and
       national subheading at 10 digit level, the Indonesia texts shall bind.


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