CORRECTLY classifying imported goods is crucial for international trade. It influences trade statistics, regulations and the determination of duty rates. The Harmonized System (HS), a globally adopted framework developed by the World Customs Organization, provides a standardized numerical approach to classify traded products.

Under the HS, there are six General Rules of Interpretation (GRI) that govern the classification of imported goods. These rules were adopted under Section 1610 of the Customs Modernization and Tariff Act (CMTA) as a guide for imports to the Philippines.