Archives For October 2016

wco-hs2017

The World Customs Organization (WCO) has just released the 2017 edition of the Harmonized System Nomenclature, the world’s global standard for classifying goods in international trade, which will enter into force on 1 January 2017.

Used by over 200 countries and economic or Customs unions as well as by international organizations such as the United Nations Statistical Division (UNSD) and the World Trade Organization (WTO), the Harmonized System (HS) Convention currently has 154 Contracting Parties, making it the WCO’s most successful instrument to date.

The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products. It came into effect in 1988 and has since been developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation Council), an independent intergovernmental organization based in Brussels, Belgium – Wikipedia

The 2017 Edition of the WCO’s HS Nomenclature includes 242 sets of amendments (including some complementary amendments): 85 relating to the agricultural sector; 45 to the chemical sector; 22 to the wood sector; 15 to the textile sector; 6 to the base metal sector; 25 to the machinery sector; 18 to the transport sector and an additional 26 that apply to a variety of other sectors.

The 2017 edition of the Harmonized System comprises a total of 5,387 separate groups of goods identified by a 6-digit code (compared to 5,205 in the 2012 edition).

Click here for the HS Nomenclature 2017 Edition.

HS-related Council Recommendations

The Council, at its 127/128 Sessions in July 2016, adopted two HS-related Recommendations amended consequential to the Council Recommendation of 27 June 2014 concerning the amendment of the HS Nomenclature. First is the revised Recommendation of 18 June 1996 on the insertion in national statistical nomenclatures of subheadings for substances controlled under the Chemical Weapons Convention. Second is the Recommendation on the use of standard units of quantity to facilitate the collection, comparison and analysis of international statistics based on the HS Nomenclature 2017 Edition. With the acceptance of the revised Recommendation, the version of 24 June 2011 has been revoked with effect from 1 January 2017.

Click here for the HS-related Council Recommendations.

Correlation Tables HS 2012 – 2017

Some corrections have been made in the tables correlating the 2012 and 2017 versions of the Harmonized System.

Click here for the Correlation Tables HS 2012 – 2017.

Source: WCO

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sars-edi-user-manualSARS has been operating Electronic Data Interchange (EDI) with its external stakeholders since 2001. More than 98% of all customs declaration (CUSDEC) transactions are today submitted electronically to Customs and the electronic submission of multimodal cargo reports (CUSCAR) is steadily increasing. Today, declaration processing is fully electronic end-to-end thanks to the availability of highly established EDI and Customs software service providers supporting the local customs and logistics community. SARS has also recently introduced a benefit for compliant cargo reporters who will be absolved of certain manual (paper) submission requirements once they attain an acceptable level of electronic submission compliance and data accuracy.

The ultimate objective is to ensure that all Customs-to-Business (C2B) transactions are electronic to enable full supply chain connectivity between the South African business community and Customs. This in turn enables the possibility of SARS accrediting or approving ‘supply chains’ as opposed to just individual trader segments (importers and exporters). The extent of electronic compliance is also a pivotal requirement for traders operating under the new Customs Control Act, to be enacted in the future.

SARS overall EDI capability extends further than declarations and cargo reports. In recent years Customs-to-Government (C2G) messaging has also been successfully established between SARS and the Department of Trade and Industry (dti) as well as the South African Reserve Bank (SARB). SARS is also engaging other government stakeholders concerning IT connectivity and data exchange.

Moreover, developments for cross-border Customs-to-Customs (C2C) data exchange are also in the pipeline and could come to fruition with the partner administrations in Mozambique and Swaziland in the foreseeable future. These initiatives will usher in increased supply chain connectivity through active use of the Unique Consignment Reference (UCR) between participating customs administrations. The ultimate objective here is the creation of mutual recognition benefits for local and cross-border traders based on their accreditation status agreed between the participating customs administrations.

The SARS Electronic Data Interchange (EDI) Manual (which can be downloaded from the SARS EDI webpage) has been updated with the latest versions of SARS Edifact Data Mapping Guides as well as improved diagrams explaining the functional composition of the various electronic messages specified for Customs processing. Also included are the requirements for registering as an EDI user with SARS.

The manual includes recent updates relating to cargo reporting (manifests) as well as the updated customs declaration message incorporating recent inclusion of customs surety, penalty and forfeiture requirements. The latter enhancement removes another document based requirement (the Form DA70 Provisional Payment) for Customs Brokers with the view streamlining data requirements, enhancing customs billing and customs status reporting with the trade and logistics community. This EDI Manual will be an important document over the coming months and years in that it will feature updated electronic requirements in support of the new Customs Control Act. Watch this space!

customs-taxThe “Guidelines for strengthening cooperation and exchange of information between Customs and Tax authorities at the national level” have been formulated with the support of WCO Members and development partners, especially the Organisation for Economic Co-operation and Development (OECD) and the International Chamber of Commerce (ICC). The Guidelines aim to provide reference guidance to Customs and Tax authorities who wish to go further in their cooperation and develop operational models which enable agencies to work together to their mutual benefit.

Although there is no limit to the ways in which these two agencies can work together, and countries should consider new and innovative methods based on their organizational structure, needs and operational requirements, the Guidelines highlight some overarching principles and associated benefits concerning enhancement of Customs-Tax cooperation.

The WCO Guidelines for Strengthening Cooperation and the Exchange Of Information between Customs and Tax Authorities at the National Level are intended to supplement the ongoing initiatives in this domain. The aim is to provide general, overarching principles for cooperation which take account of operational considerations, bearing in mind the different organizational structures and national requirements of countries. It is expected that these Guidelines will be useful to Member Customs administrations in developing a sustainable cooperation mechanism (including a MoU where needed) tailored to their unique situation, in close cooperation with their respective Tax authorities

In particular, the Guidelines provide a comprehensive overview of the enablers for mutual cooperation and the exchange of information, address the scope and remit of information exchange, cover different information exchange mechanisms, list the type of activities that Customs and Tax authorities may undertake together, and provide key principles and points to consider when developing a Memorandum of Understanding/Agreement (MOU/MOA). Source: WCO

wco-news

This edition of WCO News features a special dossier on the 2016 Council Sessions, in particular the latest developments in the core WCO areas of work: tariff and trade affairs, trade facilitation, enforcement, and capacity building.

It also puts a spotlight, in its focus section, on the Customs brokers profession, including the practices adopted by some Customs administrations related to licensing and regulatory regimes.

Other highlights include articles covering the quantification and taxation of carbon emissions, the protection of cultural heritage through enhanced cooperation between Customs officers and museum professionals, and much more.

The magazine is published and distributed free of charge three times a year, in February, June and October, and is available online or in paper format.

If you do not want to miss future issues of WCO News, the WCO  invites you to fill out the online subscription form – click here!

Source: WCO

nzc-wco

Photograph: (left to right) Philip Hague, Craig Chitty and Brian Cotton from New Zealand Customs Service’s Integrated Targeting Operations Centre (ITOC) are joined by the WCO’s Cristian Moldovan and Robert White for the launch of the WCO CTS air cargo pilot.

New Zealand Customs Service (NZCS) is assisting the WCO by conducting a pilot of the newly developed air cargo capability for the WCO Cargo Targeting System (WCO CTS). NZCS has extensive experience and expertise in cargo risk assessment and targeting and will be fully testing and evaluating the WCO CTS during a 3 month trial.

The WCO travelled to New Zealand during week commencing 10 October 2016 to launch the pilot and conduct training with NZCS personnel who will be using the WCO CTS. The findings of the pilot will be incorporated into the system before existing WCO CTS deployments are upgraded and the new capability becomes available to all WCO Members.

The enhancement of the WCO CTS to include conventional air cargo and express consignments comes 3 years after the WCO first launched the system for maritime containers. During that time the WCO CTS has been deployed to a number of WCO Members with more scheduled in the coming months

The WCO CTS is a cargo manifest risk assessment and targeting solution developed by the WCO for Customs administrations across the globe that require such capability. It allows those adopting the solution to implement international best practice cargo risk assessment including key pillars of the WCO’s SAFE Framework of Standards to Secure and Facilitate Global Trade.

For more information on the WCO CTS project please contact – cargotargetingsystem@wcoomd.org