General Explanatory Notes :
There are three general explanatory notes included in the First Schedule. They are-
(a) Relevance of one dash [“-“] and two dash [“–“]
- “-” denotes that the said article or group of articles shall be taken to be subclassification of the article or group of article covered by the said heading.
- “–” denotes that that the said article or group of articles shall be taken to be subclassification of the immediately preceding article/group of articles which has “-“.
(b) Meaning of abbreviation “%” in relation to the rate of duty
The abbreviation “%” in any column of the Schedule in relation to the rate of duty means that the duty shall be computed at the percentage specified on the value of the goods as defined in section 14 of the Customs Act.
(c) Standard rate of duty applicable if no preferential rate specified
In any entry, if no preferential rate of duty has been notified, the standard rate of duty shall be applicable.
Example
The above general explanatory notes can be understood with the following example: –
| Tariff Item | Description of goods | Units | Rate of duty® | |
| Standard | Preferential Areas | |||
| (1) | (2) | (3) | (4) | (5) |
| 0801 | Coconuts, brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled | |||
| – Coconuts: | ||||
| 0801 11 00 | — Desiccated | Kg. | 70% | 60% |
| 0801 19 | — Other | |||
| 0801 19 10 | — Fresh | Kg. | 70% | 60% |
| 0801 19 20 | — Dried | Kg. | 70% | 60% |
| 0801 19 90 | — Other | Kg. | 70% | 60% |
| – Brazil nuts | ||||
| 0801 21 00 | — In shell | Kg. | 30% | 20% |
| 0801 22 00 | — Shelled | Kg. | 30% | 20% |
| – Cashew nuts | ||||
| 0801 31 00 | — In shell | Kg. | 30% | Free |
| 0801 32 | – Shelled: | |||
| 0801 32 10 | — Cashew kemel, broken | Kg. | 30% | 20% |
| 0801 32 20 | — Cashew kenel, whole | Kg. | 30% | 20% |
| 0801 32 90 | — Other | Kg. | 30% | 20% |
In the above entry, following columns are there:-
Column (1): Tariff Item
Column (2): Description of goods
Column (3): Units
Column (4): Standard rate of duty
Column (5): Preferential rate of duty
(a) In the above entry, Coconuts, which is preceded by “-” is classification of the heading Coconuts, Brazil nuts and Cashew nuts, fresh or dried, whether or not Shelled or peeled and Desiccated.
“—” is sub-classification of coconut which is preceded by “-“.
(b) The second explanatory note states that the abbreviation “%” stands for specifying that the rate of duty is ad valorem. It means the duty shall be computed at the rates specified in the First Schedule on the value of the goods determined in accordance with section 14 of the Customs Act. In the above entry, the standard rates are 30% or as the case may be, 70%.