10/10/2019

REPUBLIC OF THE PHILIPPINES

TARIFF COMMISSION

THE HARMONIZED SYSTEM and

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ASEAN HARMONIZED TARIFF
NOMENCLATURE

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By : RYAN EYMARD C. DIZON
Sr. Tariff Specialist 1
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THE
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HARMONIZED COMMODITY
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DESCRIPTION AND
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CODING SYSTEM
(HS)

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BACKGROUND
The Harmonized Commodity Description and
Coding System or simply Harmonized System
(HS) is an international product nomenclature
divided into commodity groups; each identified
by a SIX-DIGIT CODE, arranged in a logical

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structure and supported by well-defined rules
(GIRs) for uniform product classification.

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It is currently used by more than 200 countries

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and economies, representing 98% of world trade,

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primarily for customs tariffs, the collection of
international trade statistics and Rules of Origin
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It was developed and presently maintained

by the World Customs Organization (WCO).
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The latest amendments to the HS were

incorporated in year 2017.
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The HS nomenclature is governed by, and

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annexed to the International Convention on

the Harmonized Commodity Description
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and Coding System.

Under this Convention, Contracting Parties
are obligated to base their tariff schedules
on the structure of the HS nomenclature,
although Parties set their own rates of
duty.
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Types of Amendment

• Merging of tariff lines

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• Splitting of tariff lines

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• Creation of new lines

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Countries that have adopted the HS are not

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permitted to alter in any way the

descriptions associated to a heading or a
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subheading nor can the numerical codes at

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the four or six-digit levels be altered. This

is what keeps the Harmonized System
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harmonized.

The Philippines began implementing the

harmonized tariff coding system back in
1989 - the 104th country to do so.
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In effect, all countries using the HS nomenclature

have the same commodity classification up to
the six-digit subheadings.
Example: Classification of “SWEET CORN”

HS six-digit classification : 0711.90

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Japan code classification : 0711.90.099

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US code classification : 0711.90.65.00

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Phils. AHTN classification : 0711.90.10

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SAME CLASSIFICATION
AT THE SIX-DIGIT LEVEL 7
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Further, Contracting Parties MAY EXTEND a

HS code BEYOND THE SIX-DIGIT for customs
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purposes as required by their domestic laws.

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Example:
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HS Structure:
7307.11 - - Of non-malleable cast iron
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Incorporation of Phil./ASEAN Requirement:

AHTN Structure (beyond the six digit HS Code)
7307.11 - - Of non-malleable cast iron:
7307.11.10 - - - Hubless tube or pipe fittings
7307.11.90 - - - Other
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What is the Composition of the Harmonized System?

General Interpretative Rules (GIRs)
- 6 Rules providing the principles of classification of goods
under the HS
Sections
- 21 Sections make up the HS
Chapters
- Sections are divided into Chapters

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- There are 99 Chapters under the HS
- However, Chapter 77 is reserved for future use, while

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Chapters 98 & 99 are reserved for special uses by
Contracting Parties to the HS Convention (96 Chapters)
Headings

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- Chapters are divided into headings

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- Headings are assigned with four-digit codes
Subheadings
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- Headings are further divided into subheadings
- HS subheadings are assigned with six-digit codes 9
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THE
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ASEAN HARMONIZED
TARIFF NOMENCLATURE
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(AHTN)

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THE AHTN
The Member States of ASEAN agreed to adopt a
common tariff nomenclature to facilitate the flow
of trade within the region (AFTA).

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The AHTN is based on the Harmonized System
up to the 6-digit subheadings. It is supplemented

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with the national requirements of each ASEAN
Member States in the form of 8-digit

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subheadings.

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Any amendments on the Harmonized System
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would also be reflected on the AHTN.
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AHTN Structure Example:

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Classification of “BLACKCURRANT FRUIT JUICE”

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HS six-digit classification : 2009.89

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US code classification : 2009.89.60.65

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India code classification : 2009.89.90

AHTN code classification : 2009.89.10

Common up to the six-digit subheading for

ALL HS Contracting Parties.
Common up to the eight-digit subheading for
ALL ASEAN Member States. 12

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What is the Composition of the AHTN 2017?

HS with 2017 Amendments

(GIRS, Sections, Chapters,
HS
4-digit headings Nomenclature
and 6-digit subheadings)

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ASEAN Subheadings AHTN

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(8-digit ASEAN subheadings)

AHTN 2017

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Philippine National Subheadings

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(Alphanumeric subheadings: Vol II,
Philippine requirement) 2019 edition
MFN and ATIGA Rates
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AHTN 2017 Sec. 1611 CMTA STRUCTURE

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Section No. and Title of the Section

- For ease of reference only.

Section Notes
- With legal bearing,
re: classification 14

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AHTN 2017 Sec. 1611 CMTA STRUCTURE

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Chapter No. and Title of the Chapter

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- For ease of reference only.

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Chapter and Subheading Notes
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- With legal bearing,
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AHTN 2017 Sec. 1611 CMTA STRUCTURE

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4-Digit Hdg. Code

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6-Digit HS/AHTN
Subhdg. Code
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8-Digit AHTN
Subhdg.
Code

Phil.
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Alphanumeric Code

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AHTN 2017 Sec. 1611 CMTA STRUCTURE

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MFN rates per EO’s 20, 21 & 23 s. of 2017

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ATIGA rates per EO’s 892 and 894 s. of 2010

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Column “9” Lists which ASEAN Member States are
qualified/not qualified for ATIGA rates
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COLUMN “9” under AHTN 2017

Sec. 1611 CMTA , as amended
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ASEAN MEMBER STATES ABBREVIATIONS:

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1. BRUNEI - BN
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2. CAMBODIA - KH
3. INDONESIA - ID
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4. LAOS - LA
5. MALAYSIA - MY
6. MYANMAR - MM
7. PHILIPPINES - PH
8. SINGAPORE - SG
9. THAILAND - TH
10. VIET NAM - VN 18

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COLUMN “9” under Section 1611 of the

CMTA, as amended
EXPLANATION OF REMARKS
All. All Member States are eligible to
avail the ATIGA rate of duty.

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Imports coming from Viet Nam

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Except VN.
cannot avail the ATIGA rate of
duty.

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Only for SG Only imports coming from
and TH. Singapore and Thailand are
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eligible to avail the ATIGA rate19
of duty.
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COLUMN “9” under Section 1611 of the

CMTA, as amended
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EXPLANATION OF REMARKS
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All. Except All Member States are

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for: Isonicotinic eligible to avail the ATIGA

acid hydrazide, rate of duty, EXCEPT for the
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and its salts, products mentioned coming

esters and from Cambodia.
derivatives,
pharmaceutical
grade from KH.

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STRUCTURE AND

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NUMBERING SYSTEM

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SECTIONS
 Sections are designated by Roman numerals, from
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“I” to “XXI”.
CHAPTERS
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 The numbers/codes are laid down in an ascending

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manner.
 The first Chapter is designated by the 2-digit
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number “01” (Chapter 1 - “Live animals”),

 the second Chapter (Chapter 2 - “Meat and edible
meat offal”) is “02”,
 the third (Chapter 3 - “Fish and crustaceans,
molluscs and other aquatic invertebrates”) is “03”,
 the tenth Chapter (Chapter 10 - “Cereals”) is “10”
and so on and so forth. 22

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HEADING NUMBERS
 The numbering/coding pattern is followed in the
headings and, if there are any, in subheadings.
Example: Chapter 10 (Cereals)
10.01 Wheat and meslin.
10.02 Rye.
10.03 Barley.

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10.04 Oats.
10.05 Maize (corn).

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10.06 Rice.
10.07 Grain sorghum.
10.08 Buckwheat, millet and canary seed; other cereals.

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 The first heading is assigned with the numbers

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“10.01”, the second with “10.02”, then “10.03”
and the last “10.08”.
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 In a heading code, notice that a dot is added after
the second digit of the chapter number.
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SUBHEADING NUMBERS
 Subheadings in the Harmonized System (HS) are up
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to 6-digits;
 Subheadings in the AHTN are up to 8-digits;
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 HS subheadings in the AHTN that are not further

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divided are assigned “.00” after the 6th digit (example:

“1002.10.00”);
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 Similarly, headings in the AHTN with no subheadings

are assigned “.00.00” after the 4th digit (example:
“0205.00.00”); and
 To incorporate tariff requirements unique to the
Philippines, alphanumeric subheadings are created
and incorporated in the AHTN 2017 (example:
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“8413.91.90A”, “0301.99.21B”).

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The AHTN STRUCTURE
CODING SYSTEM
0 1 0 4.2 0 .9 0A

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Alphanumeric Subheading

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AHTN Subheading
(up to the 8-digit)
Subheading

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(up to the 6-digit : HS)

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[one-dash when ending with a
zero, else two-dashes]
Heading Number (4-digit)
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Chapter Number
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