Single window valuation system cargo tracking

12.2 Tariff Classification in Practice
The process of classifying goods involves the following stages: 
• Find those headings that appear to describe the goods; 
• Check the section notes for each heading;
• Check the chapter notes for each heading;
• Read the explanatory notes for all of the above; and
• Apply the General Rules for the Interpretation of the 
Nomenclatures (GIRs).
The six GIRs are: 
• GIR1 
General rule
• GIR 2(a) Incomplete or unfinished; unassembled or
disassembled

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• GIR 2(b) Mixtures or combinations
• GIR 3 Two or more headings
• GIR 3(a) Most specific
• GIR 3(b) Essential character
These must be applied to goods from the outset, and in sequential 
order.
GIR 3(c) 
Last in numerical order
GIR 4 
Most akin
GIR 5(a) 
Special containers 
GIR 5(b) 
Packing materials and containers 
GIR 6 
subheading texts, notes and GIR 1 to 5
Help for goods classification is offered by the Customs Valuation 
and Tariff Classification Program and Development Directorate. 
Also, the following WCO publications
65
are helpful in the process 
of classifying goods, all the more so as documents prepared by 
the WCO in relation to the classification of goods are taken as 
conclusive evidence by ERCA:
• The Explanatory Notes;
• The Compendium of Classification Opinions; 
• The Alphabetical Index; and
• The HS Commodity Data Base (CD-ROM)
12.3 Binding Information Regarding Tariff Classification
Binding information regarding tariff classification is a written 
classification decision by ERCA, given on request, which is legally 
binding on all customs branch offices within the customs territory. 
Such binding information is intended to ensure the correct tariff 
65 These publications can be ordered from the WCO, e.g. at http://wcoomdpublications.org/.

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classification but is not a legal requirement. Binding information 
regarding tariff classification decisions are made under the terms of 
Article 103(1)-(4) of the Customs Proclamation.
Binding information can be beneficial for the following reasons:
• It provides certainty that the declarant declares the correct 
commodity code for goods;
• It helps ensure legal obligations are met in respect of correct 
tariff classification, ensuring that liabilities for duties and taxes 
are known in advance 
• It alerts to any import or export licensing requirements; and 
• It contributes to the quality of import and export statistics.
Although binding information decisions are normally valid for one 
(1) year, they may be revoked in the following circumstances:
• The binding tariff classification information was requested 
after the goods had been imported or after a foreign currency 
permit had been obtained;
• The composition of the goods subsequently changes;
• Inaccurate or incomplete information was provided in the 
application;
• Regulations or directives changed and the information no 
longer conforms to the applicable regulations or directives;
• The importer notifies the cancelation of the decision; or
• The binding information decision is made by an unauthorized 
person.
To obtain binding information, a declarant must complete and 
submit an application form “Application to Obtain Binding Tariff 
Classification Information from the Ethiopian Revenues and Customs 
Authority”. A separate application form must be completed for 
each type of good for which a binding information decision is 

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requested. The decision covers all future consignments of identical 
goods. Completed application forms should be sent, together with a 
representative sample and/or technical literature, to ERCA’s Customs 
Valuation and Tariff Classification Program and Development 
Directorate.
Although binding information is supplied free of charge, the 
following costs may be passed on to the requester:
• Laboratory analysis of a sample;
• Expert advice about a sample; or
• Returning a sample (samples may be collected after the 
decision process is finalized, as per Article 159 of the Customs 
Proclamation).
ERCA normally provides binding information decisions within thirty 
(30) working days from the date of application. However, the period 
might be extended for an additional thirty (30) working days due to 
the following reasons:
• If the Directorate believes that additional time is required;
• If the applicant does not respond to queries within ten (10) 
working days; or
• If the laboratory analysis takes more than thirty (30) working 
days.
Furthermore, ERCA can refuse an application for binding 
information decisions if:
• The prerequisites are not properly fulfilled;
• The necessary goods information is not supplied;
• The goods are prohibited;
• The Directorate believes that the classification of goods is 
simple and clear; or
• It is difficult to classify the goods.

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ERCA’s decision is notified on a legal document indicating the 
correct commodity code for the goods and the start date for the 
period of validity of the information. An electronic copy of the 
binding information regarding the tariff classification will be sent to 
all customs branch offices.
Once the declarant has received the decision, the original and a 
copy of it must be submitted to the concerned customs branch 
together with the customs declaration.

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