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SIC & HS Codes: the AND-rule

BICS SIC & HS Codes: How the AND-Rule Actually Works (With Examples)

Last updated: 10 Aug 2026
· 8 min read
Direct answer

BICS eligibility requires an eligible SIC code and eligible HS product codes at the same site — not either one alone. A business can pass the sector (SIC) gate and still fail on products (HS), or vice versa. This page demonstrates the rule with worked pass/fail examples and shows how to handle mixed product lines.

Most guidance describes the AND-rule; this page demonstrates it. Fact density is the currency here — the examples below are deliberately specific because that specificity is what makes the difference between a confident application and a rejected one.

Worked examples: who passes, who fails

Each row is a real-world shape we screen against. “Pass” on both gates is the only combination that clears the AND-rule.

Business shapeSIC gateHS gateAND-rule outcome
Aluminium re-melt — scrap to primary ingot✓ eligible✓ 7601✓ Passes both
Glass reprocessor — cullet to primary glass✓ eligible✓ 7001✓ Passes both
Plastics recycler — mixed polymer flake only✓ eligible✗ not primary form✗ Fails HS gate
Aggregates producer — crushed inert fill✗ excluded activity✗ excluded✗ Fails both
Paper mill — recovered fibre products~ check✗ effectively excluded✗ Fails HS gate
Food processor — eligible SIC, non-listed output✓ eligible~ product-dependent~ Depends on HS resolution

Illustrative classifications for demonstration. HS resolution is product-specific and confirmed against the official Annex A codes for your actual output.

Mapping mixed product lines

Real manufacturers rarely make one thing. When a site produces several product lines, the AND-rule is applied to the eligible output — which is why product mapping matters as much as the headline SIC. Two practical rules:

  • Split by primary form. For recycled materials especially, eligibility attaches to single-polymer or primary metallic/glass forms. Convert-and-sell operations that stop at flake or mixed grade usually miss the HS gate.
  • Attribute electricity to the eligible line. The proportion of a site’s power feeding the eligible product line drives both the 25% floor test and the pro-rata band — so mapping is an evidence exercise, not just a classification one.
The moat

The AND-rule is mandatory — not an either/or gate. Applications that assume sector fit is sufficient are the ones most likely to be rejected, and the ones we most often rescue.

Resolve the AND-rule for your site

The checker walks the SIC and HS gates in sequence and shows the logic as it resolves.

The ENERGYbubble energy desk
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