Category / HS Nomenclature

by Mike Poverello

AfCFTA, EU and WCO join forces to support digital transformation of Customs work

Picture: Damien Patkowski

On 27 January 2022, representatives of the WCO, the AfCFTA Secretariat and the European Commission held a virtual meeting to review the state of play in the implementation of the African Continental Free Trade Area (AfCFTA). The meeting focused on the trade liberalization mechanism envisaged by the AfCFTA Agreement, the management of tariff offers and a possibility of setting up a continental digital platform to handle information on applicable tariff rates covering all African countries.

In opening the meeting, Mrs. Demitta Chinwude Gyang, Head of Customs at the AfCFTA Secretariat, expressed her appreciation for the support provided by the WCO and the EU on the implementation of the Harmonized System (HS) under the EU-WCO Programme for HS in Africa (HS-Africa Programme), funded by the EU. She emphasised that the trade under the AfCFTA had already started from January 2021, and 44 tariff offers had been submitted by AfCFTA signatories already. She explained that the AfCFTA Secretariat intended to create a web-based ‘tariff book’ whereby all the necessary information on tariff offers and applicable tariff rates would be made available in a user-friendly and easily accessible manner.

The representatives of the WCO and the EU welcomed the AfCFTA initiative to set up a digital tariff platform at the continental level, recalling that electronic tariffs had been successfully implemented in some African countries in the recent past, with the support of the HS-Africa Programme. They stressed that such digital tools contributed significantly to trade facilitation efforts of Customs administrations and Regional Economic Communities by providing data that were vital for trade operators. The EU and the WCO reiterated their firm commitment to offering continued support to the AfCFTA in that regard, under the HS-Africa Programme.

In conclusion, the meeting participants agreed that the initiative should start by developing terms of reference for the implementation of the AfCFTA digital ‘tariff book’ and launching a tendering process to select a service provider that would carry out the required technical work. It was felt that this project would contribute to scaling up digital transformation of Customs, announced as the theme of the year 2022, and create a foundation for the next steps in the establishment of the Customs union on the African continent.

For more details, please, contact capacity.building@wcoomd.org.

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by Mike Poverello

Africa and the adoption of HS2022

Picture: Samendra Singh on Unsplash

The new edition of the Harmonised Commodity Description and Coding System 2022 (HS2022) entered into force on the 1st of January 2022. This development means that Customs tariffs, associated Information, Communication and Technology (ICT) management systems as well as accompanying Harmonised System (HS) tools and instruments must have been successfully migrated from the previous edition (HS2017) to the new version (HS2022).

A few weeks prior to entry into force of HS2022, African countries’ experiences in this regard still indicated widely ranging inconsistencies and discrepancies in the application of the HS in general. Whilst all the Contracting Parties were expected to have fully migrated to the HS2017 by then, apparently some had not yet done so. The majority of those were still either using HS2012 or even HS2007, whilst some had huge delays in rolling out HS2017. Only 30 African countries had successfully migrated to HS2017 and were already applying it. At the launch of the operational phase of the African Continental Free Trade Area (AfCFTA) during the 12th Extraordinary Session of the Assembly of the Union on the AfCFTA in Niamey, Niger held on the 7th of July 2019, HS2017 was already in its third year. At that time, half of the African Union Member States were still to ratify the AfCFTA.

Source: TRALAC, Rwatida Mafurutu, 1 February 2022

by Mike Poverello

WCO – 2022 edition of the Harmonized System Nomenclature is now available online.

As of 18 November 2021, the online version of the 2022 edition of the Harmonized System Nomenclature is available through the WCO Website to all HS users.  The HS 2022 edition, as the world’s global standard for classifying goods in international trade, will enter into force on 1 January 2022.

Used by over 200 countries and economic or Customs unions as the basis for their Customs tariffs and for trade statistics, 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 160 Contracting Parties, making it the WCO’s most successful instrument to date.

The 2022 edition of the HS Nomenclature includes significant changes with 351 sets of amendments (including some complementary amendments): 77 relating to the agricultural sector; 58 to the chemical sector; 31 to the wood sector; 21 to the textile sector; 27 to the base metal sector; 63 to the machinery sector; 22 to the transport sector and an additional 52 that apply to a variety of other sectors, comprising a total of 1,228 headings identified by a 4-digit code, and 5,612 subheadings identified by a 6-digit code. 

These amendments have been made to update the Harmonized System Nomenclature, taking into consideration public health and safety, protection of society and fight against terrorism, goods especially controlled under various conventions, food security and environment protection, technological progress, trade patterns, and clarification of the HS texts.

Click here for the HS Nomenclature 2022 Edition.

The digital version of the HS 2022 edition is also available for free on WCO Trade Tools, which is the WCO’s new online database platform that encompasses the last five editions of the HS and functionalities to support all those involved in international trade.  The WCO Trade Tools encompasses various free and subscription only tools relating to the classification and valuation of goods, origin determination and the application of preferential rules of origin.

The paper version of the HS 2022 edition can be purchased on WCO’s Bookshop.

by Mike Poverello

Global Trade Braces for a Mini Y2K With Customs Code Overhaul

Picture by Kyle Glen

The following article was published in Supply Lines, Bloomberg

As if the foot soldiers of global trade needed more complications this holiday season, many logistics managers and customs brokers are starting to brace for a mini Y2K moment come Jan. 1.

That’s when changes will take effect to the official nomenclature for hundreds of product groups used to classify imports and exports. So-called Harmonized System numbers — known as HS codes — exist on more than 5,000 product categories developed by the World Customs Organization, an intergovernmental group in Brussels that updates them every five years or so.

In 2022, the biggest changes are coming for electrical machinery and parts, wood, textiles, fish and organic chemicals.

More than 350 global HS codes are getting updated, and some 1,500 harmonized U.S. tariff codes are subject to revisions, according to a recent webinar from Flexport. The categories are important, if a little wonky, because most items of international commerce fall into one and they can determine tariff levels.

Some codes are disappearing. After a respectable run through the 1970s and ‘80s, answering machines are about to lose their HS code. Made obsolete by voicemail, they rank 5,296th among 5,832 U.S. imports this year, according to Flexport data.

Globes — those spinning spheres that taught geography to schoolkids of the 1970s — will have their number (4905.10) retired, too.

“The trade in globes is not quite what it used to be,” Marcus Eeman, a global customs manager with Flexport, lamented about the U.S.’s 4,025th-biggest import.

Chemical Weapons?

Some new HS codes will appear, like one for pomace oil, a lower-grade form of olive oil.

Among the more intriguing additions, Flexport says there’ll be a “new code created for petroleum resins and other organic chemical compounds used in the manufacture of chemical weapons.” That should make it easier for authorities to track which countries are importing it and potentially using them illegally.

Other categories are getting renamed. Lamps will no longer fall under “lamps,” they’ll be classified as “luminaires.” There will be new subheadings for popular gadgets like smart phones, high-speed digital cameras and flat panel displays.

Economies preparing for the changes include the U.S., China, the European Union, Canada and Australia. The U.K., meanwhile, is still “finding their footing with Brexit and we expect them to get their act together by the end of the year,” Eeman said.

For all the changes to take effect on Jan. 1 in the U.S., there will need to be a presidential proclamation published in the Federal Register with the required 30 days of advanced notice.

So it’s worth looking out for that in coming days.

“My fear is that Dec. 1 will come and the presidential proclamation will be published and that’s when people will start to scramble,” said Tom Gould, Flexport’s vice president of global customs. “Then Jan. 1 will hit and you’ll have a bunch of people that have products that they need to import but they don’t know the classification, because the code that they’ve used in the past is no longer a valid code.’’

Source: Bloomberg, authored by Brendan Murray, 24 November 2021

by Mike Poverello

WCO News, October 2021 Edition

The WCO has published the 96th edition of WCO News, the Organization’s magazine aimed at the global Customs community, providing a selection of informative articles that bring the international Customs and trade world to life.

This edition’s “Dossier” focuses on cross-border e-commerce, in other words those “transactions which are effected digitally through a computer network (e.g. the internet), and result in physical goods flows subject to Customs formalities”. We have invited several administrations to share information on the initiatives they are taking to build their capacity for monitoring the compliance of such flows. Despite every country’s situation being unique, we still believe that it is important to share experiences and explain initiatives.

The “Panorama” section addresses a broad variety of topics such as rules or origin, goods classification, training and reforms. It also includes two articles which respectively present, from a Customs perspective, two recent regional Free Trade Agreements: the Regional Comprehensive Economic Partnership (RCEP) and the African Continental Free Trade Area.

The “Focus” section brings together two articles dealing with non-intrusive inspection (NII). In the first one, the WCO Secretariat shows how some Customs administrations and manufacturers manage the decommissioning of NII equipment when it has reached the end of its life. The second article describes the challenges of X-ray image analysis and the value of training.

Lastly, in the “Point of View” section, Dutch Customs explains the structure of the ISO Audit Data Collection Standard and why it supports the Standard’s extension to cover data related to Customs and indirect tax audits, while an attorney from Israel argues that governments should consider waiving taxes on transport costs until we are back to “normal” and the effects of the COVID-19 pandemic are no longer being felt.

To discover the full content of this edition please visit the magazine website.

by Mike Poverello

WCO launches Trade Tools, a new online database for the Harmonized System, Origin and Valuation

The World Customs Organization (WCO) is proud to announce the release of its new online tool, www.wcotradetools.org, which compiles information to support international trade actors in the classification of goods and the determination of the corresponding Customs tariffs and taxes. This new database offers a single point of access to the Harmonized System, preferential Rules of Origin and Valuation, through a completely new, user-centric and ergonomic interface.

In addition to a new interface design and new search engines, this new platform offers the following key features: 

  • Ability to cross-reference information by using a comparison tool in the Harmonized System (HS) and Rules of Origin
  • A direct overview of the most recent HS updates, highlighting the changes introduced
  • A system for tracking the evolution of the HS codes across editions, using a “History” tool
  • A facility for searching through the Product Specific Rules in more than 200 Free Trade Agreements, and access to the corresponding HS entry.

The new platform will also promote cooperation among the different teams within Customs administrations, as well as with Customs brokers and companies, through various features such as the possibility to tag information, write comments and share folders. It offers the possibility of further enhancing use of the platform; users can search through the extensive databases, as well as organizing and storing the content according to their personal preferences.

This new tool includes the 2002, 2007, 2012 and 2017 editions of the HS, around 200 Free Trade Agreements with their preferential Rules of Origin/product specific recommendations, and the set list of Valuation texts, including those of the Technical Committee on Customs Valuation.

In addition to this new professional database, the WCO is also proud to announce the release of its new online bookshop, www.wcoomdpublications.org, where users can navigate through the range of WCO publications, purchase them, and subscribe to the Organization’s online services, including WCO Trade Tools. The website has benefited from a complete revamp, to facilitate users’ access to the publications and enhance their navigation experience.

For more information, please contact the Publications & Data Solutions Service: publications@wcoomd.org.

by Mike Poverello

WCO – HS Classification for Vaccines and other associated medical supplies

In this new stage of the COVID-19 pandemic, in which vaccines are ready for distribution, the WCO Council has tasked the Secretariat to work with relevant international organizations to develop guidance materials to facilitate the cross-border movement of situationally critical medicines and vaccines, including highlighting existing HS classification for critical medicines, vaccines and associated medical supplies necessary for their manufacture, distribution and use.

The WCO’s Tariff and Trade Affairs Directorate, in close cooperation with the World Health Organization, has prepared a new HS classification reference for vaccines and the medical consumables normally used during the vaccination process, including the equipment used for their storage and transportation.

The New HS classification reference for vaccines and related supplies and equipment can be found in the WCO COVID-19 vaccines distribution dedicated page:  http://www.wcoomd.org/en/topics/facilitation/activities-and-programmes/natural-disaster/covid19-vaccines-distribution.aspx

http://www.wcoomd.org/-/media/wco/public/global/pdf/topics/facilitation/activities-and-programmes/natural-disaster/covid-19-list-for-vaccines/hs-classification-reference-vaccines-english.pdf?la=en

Source: WCO, 29 January 2021

by Mike Poverello

WCO – HS Codes for HFCs

The WCO participated in the virtual side event, organized by UNEP OzonAction, at the 32nd Meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer.  The event aimed to inform participants about how the WCO Recommendation can help implement national measures to identify hydrofluorocarbons (HFCs) before the new international Harmonized System codes come into force.

The event, held 24 November 2020 and attended by 78 participants, addressed a major issue for countries.  One of the important requirements of the Kigali Amendment to the Montreal Protocol is that an import and export licencing system for hydrofluorocarbons (HFCs) needs to be in place by 1/1/2021 at the latest, in each country that is Party to the Amendment.

To enable a licencing system to function effectively, governments need to be able to monitor and record imports and exports of each specific HFC. Import and export statistics are normally collected by customs officers using the Harmonized System. 

The HS will be amended in 2022 to incorporate specific subheadings for the most commonly traded HFCs and their mixtures. However, until the HS is amended in 2022, all HFCs are contained in a single HS code which does not allow differentiation of individual chemicals or mixtures. 

This side event provided an overview of the issue and explained a proactive interim approach, recommended by the WCO, to open national subheadings under the existing international HS codes to identify specific HFCs until 2022.

A technical officer from Tariff and Trade Affairs (Nomenclature) explained the classification of HFCs in the current HS 2017 and the changes to be implemented in 2022.  He also explained how the “WCO Recommendation on the insertion in national statistical nomenclatures of subheadings to facilitate the collection and comparison of data on the international movement of substances controlled by virtue of the Kigali amendment to the Montreal Protocol on substances that deplete the ozone layer” could be implemented by Regions or individual countries.

Practical examples of the implementations of the WCO Recommendation at regional and national levels were given by representatives of the European Commission and the Oceania Customs Organization.   

Countries were encouraged to expeditiously insert additional national subheadings for HFCs and HFC-containing mixtures, as guided by the WCO Recommendation, to ensure a proper implementation of the Kigali amendment to the Montreal Protocol. 

Related information –

by Mike Poverello

WCO Publishes HS 2022 Correlation Tables

The WCO has released the HS 2022 Correlation Tables.

The Harmonized System Committee (HSC) completed its examination of the correlations prepared by the Secretariat at its 66th Session in October 2020. Upon the adoption of the HSC/66 Report on 13 November 2020, the Correlation Tables were cleared by the HSC for release on the WCO website.

While not legal instruments, the Correlation Tables have become essential tools for Members and the wider trade community in preparing for the introduction of a new edition of the HS. These tables provide guidance on the correlations between the Seventh Edition of the Harmonized System (HS), which comes into force on 1 January 2022 and the current HS 2017 (Sixth Edition) of the HS. There are two tables released.

Table І establishes the correlation between the 2022 version and the 2017 version of the HS. It also includes remarks against many of the correlations, briefly specifying the nature of the goods transferred and, where appropriate, referencing other relevant amended legal provisions in the HS.

Table ІІ establishes the correlation starting from the 2017 version to the 2022 version. As a simple mechanical transposition of Table І, it does not include a reproduction of the remarks.

Access the Correlation Tables here!

Source: World Customs Organisation, 13 November 2020

by Mike Poverello

WCO issues updated joint WCO/WHO HS classification list for COVID-19 medical supplies

The WCO continues its close cooperation with the World Health Organization (WHO) to contribute to the rapid cross-border movement of medical supplies and medicines needed urgently during the current COVID-19 global pandemic. Following the coordinated response adopted by the two organizations, a WHO/WCO List of Priority Medicines was released and the Joint WCO/WHO HS Classification List for COVID-19 Medical Supplies was further updated. 

The clinical characteristics of the COVID-19 and its evolution makes it challenging for the health system of many countries and shortage of medicines can worsen the situation. Potential supply chain disruptions may jeopardize the timely supply of all essential medicines, including those not directly related to COVID-19. 

The List of WHO/WCO Priority Medicines for Customs Used during COVID-19 aims at assisting Customs and economic operators in classifying these medicines. The list contains the suggested HS codes for medicines used in the general medical care administered to hospitalized patients; as part of the direct treatment of the COVID-19 disease; and for which interrupted supply could result in serious health consequences. 

The new list, which will now be continuously updated, is the result of an efficient collaboration between the WHO and the WCO. The medicines and active substances were compiled by the WHO taking into account various information published by National Health Authorities, scientific societies or pharmacology experts, and with suggested HS codes provided by the WCO Secretariat. 

The List of WHO/WCO priority medicines used during COVID-19 can be found on the WCO COVID-19 dedicated webpage.

HS classification reference for Covid-19 medical supplies 2.1 Edition

Taking into consideration the suggestions received from Members and other stakeholders, the WCO/WHO HS Classification Reference for Covid-19 Medical Supplies was once more updated with additional items that could be used during this pandemic situation. COVID-19 medical supplies list update:

Future initiative foreseen by the WCO for COVID-19 medical supplies list

The WCO is aware that some countries have used the WCO list as a reference when making their own national lists of medical supplies. In order to further facilitate trade in medical supplies and present information in a coordinated manner, the WCO is considering, for the next edition of the medical supplies list, to include links to specific national classification lists of medical supplies.  Members wishing to include information on their national classification lists of medical supplies can send their links to: hs@wcoomd.org. 

Further assistance in identifying essential items can be found on the website of WHO. The COVID-19 Critical Items List from the WHO can be found at:

https://www.who.int/emergencies/diseases/novel-coronavirus-2019/technical-guidance/covid-19-critical-items

Source: World Customs Organisation, 30 April 2020

by Mike Poverello

WCO issues 2nd Edition HS classification list for COVID-19 medical supplies

To respond to the unprecedented demand in medical supplies amid the current global COVID-19 pandemic around the world, and in order to help countries speed up the cross-border movement of these critical products,  the WCO and the World Health Organization (WHO) joined hands to strengthen their cooperation by establishing a coordinated approach in their response to the pandemic. 

As a result of this joint effort of the two organizations, the HS Classification Reference for COVID-19 Medical Supplies was updated, in a more structured and user-friendly format, to reflect more of the products that would be required in the professional opinion and experience of the WHO in public health. The first HS classification reference for COVID-19 medical supplies, published by the WCO at the dedicated section of its website two weeks ago, was an initial response of the Secretariat to help countries in their fight against the spread of COVID-19.  The initial list contained the classification of essential products needed such as COVID-19 diagnostic test kits and masks, certain protective personal equipment and medical devices such as ventilators and ECMO (extracorporeal membrane oxygenation), consumables and disinfectant products that may be used for the prevention and treatment of the disease.  The latest edition expands this list to cover a greater range of medical equipment and supplies that are required as critical items by the WHO, such as oxygen concentrators and sample collection sets.

The list of HS-coded medical supplies was widely appreciated by stakeholders and taken into consideration by governments when preparing their responses to secure and facilitate trade in these supplies. It serves as the basis for identifying the cross-border movement of the products needed during the pandemic, applying contingent tariff and non-tariff relief policies, monitoring and combating falsified supplies, and even for taking responsive actions to address shortages.

The updated list is provided as an indicative list with a view to facilitating the classification of COVID-19 medical supplies at the international level (6 digit of the HS). Economic operators are kindly advised to consult with the relevant Customs administrations in relation to classification at domestic levels (7 or more digits) or in the event of any discrepancy between their practices and this list. 

The Second Edition of the HS Classification reference list for COVID-19 medical supplies can be found in the WCO COVID-19 dedicated page.

Source: WCO, 9 April 2020

by Mike Poverello

WCO News – February 2020

This edition’s “Dossier” focuses on how Customs can foster sustainability for people, prosperity and the planet, the WCO’s theme for 2020, and includes a selection of articles on the implementation of Multilateral Environmental Agreements, the role of the Harmonized System, the trade in illegal timber, and tools for logistics planning and supply chain optimization.

The “Panorama” section covers various topics such as internal communication, cultural goods, partnership with express couriers to fight illicit trade, management of e-commerce transactions via blockchains, and measurement of the time required to process imports in order to boost logistic service providers’ efficiency.

You can also read an insightful “Point of View” article on how machine learning can automate the determination of the valuation of goods, as well as an “Events” article containing highlights from the WCO Communication Strategies Conference held in October 2019.

Source: WCO, WCO News, February 2020

by Mike Poverello

New 2022 Edition of the Harmonized System has been accepted

Photo by Ricardo Gomez Angel on Unsplash

HS 2022, which is the seventh edition of the Harmonized System (HS) nomenclature used for the uniform classification of goods traded internationally all over the world, has been accepted by the all Contracting Parties to the Harmonized System Convention.  It shall come into force on 1 January 2022.

The HS serves as the basis for Customs tariffs and for the compilation of international trade statistics in 211 economies (of which 158 are Contracting Parties to the HS Convention).  The new HS2022 edition makes some major changes to the Harmonized System with a total of 351 sets of amendments covering a wide range of goods moving across borders.  Here are some of the highlights:

Adaption to current trade through the recognition of new product streams and addressing environmental and social issues of global concern are the major features of the HS 2022 amendments.

Visibility will be introduced to a number of high profile product streams in the 2022 Edition to recognise the changing trade patterns.  Electrical and electronic waste, commonly referred to as e-waste, is one example of a product class which presents significant policy concerns as well as a high value of trade, hence HS 2022 includes specific provisions for its classification to assist countries in their work under the Basel Convention.  New provisions for novel tobacco and nicotine based products resulted from the difficulties of the classification of these products, lack of visibility in trade statistics and the very high monetary value of this trade.  Unmanned aerial vehicles (UAVs), commonly referred to as drones, also gain their own specific provisions to simplify the classification of these aircraft.  Smartphones will gain their own subheading and Note, which will also clarify and confirm the current heading classification of these multifunctional devices.

Major reconfigurations have been undertaken for the subheadings of heading 70.19 for glass fibres and articles thereof and for heading 84.62 for metal forming machinery.  These changes recognize that the current subheadings do not adequately represent the technological advances in these sectors, leaving a lack of trade statistics important to the industries and potential classification difficulties.

One area which is a focus for the future is the classification of multi-purpose intermediate assemblies.  However, one very important example of such a product has already been addressed in HS 2022.  Flat panel display modules will be classified as a product in their own right which will simplify classification of these modules by removing the need to identify final use.  Health and safety has also featured in the changes.  The recognition of the dangers of delays in the deployment of tools for the rapid diagnosis of infectious diseases in outbreaks has led to changes to the provisions for such diagnostic kits to simplify classification.  New provisions for placebos and clinical trial kits for medical research to enable classification without information on the ingredients in a placebos will assist in facilitating cross-border medical research.  Cell cultures and cell therapy are among the product classes that have gained new and specific provisions.  On a human security level, a number of new provisions specifically provide for various dual use items.  These range from toxins to laboratory equipment.

Protection of society and the fight against terrorism are increasingly important roles for Customs.  Many new subheadings have been created for dual use goods that could be diverted for unauthorized use, such as radioactive materials and biological safety cabinets, as well as for items required for the construction of improvised explosive devices, such as detonators.

Goods specifically controlled under various Conventions have also been updated.  The HS 2022 Edition introduces new subheadings for specific chemicals controlled under the Chemical Weapons Convention (CWC), for certain hazardous chemicals controlled under the Rotterdam Convention and for certain persistent organic pollutants (POPs) controlled under the Stockholm Convention.  Furthermore, at the request of the International Narcotics Control Board (INCB), new subheadings have been introduced for the monitoring and control of fentanyls and their derivatives as well as two fentanyl precursors.  Major changes, including new heading Note 4 to Section VI and new heading 38.27, have been introduced for gases controlled under the Kigali Amendment of the Montreal Protocol.

The changes are not confined to creating new specific provisions for various goods.  The amendments also include clarification of texts to ensure uniform application of the nomenclature.  For example, there are changes for the clarification and alignment between French and English of the appropriate way to measure wood in the rough for the purposes of subheadings under heading 44.03.

Given the wide scope of the changes, there are many important changes not mentioned in this short introduction.  All interested parties are encourage to read the Recommendation carefully (to be published soon).

Implementation

While January 2022 may seem far off, a lot of work needs to be done at WCO, national and regional levels for the timely implementation of the new HS edition.  The WCO is currently working on the development of requisite correlation tables between the current 2017 and the new edition of the HS, and on updating the HS publications, such as the Explanatory Notes, the Classification Opinions, the Alphabetical Index and the HS online database.

Customs administrations and regional economic communities have a huge task to ensure timely implementation of the 2022 HS Edition, as required by the HS Convention.  They are therefore encouraged to begin the process of preparing for the implementation of HS 2022 in their national Customs tariff or statistical nomenclatures. The WCO will step up its capacity building efforts to assist Members with their implementation.

Source: hs@wcoomd.org

by Mike Poverello

Customs Tariff – Mobile-learning course on the HS 2017 Edition

WCO-HS-Mob-App.jpg

A new online course on the 2017 Edition of the Harmonized System (HS) has just been released by the WCO.

Through educational videos and a knowledge test, this course allows you to learn about the major changes in the 2017 version of the HS.

This course is available on CLiKC!, the WCO online learning platform, but is also the first WCO e-learning course which is built using mobile learning technologies. By downloading the app, available on the App Store and on Google Play, users will benefit from more features such as a search engine which indicates if a specific HS code has been amended in the 2017 version.

The app is available for free to anybody who wishes to learn about HS2017.  The added feature for our Member administrations’ Customs officers, who have an account on this website, is that it will be synchronized with CLiKC!

Source: WCO

by Mike Poverello

30th anniversary of the Harmonized System (HS) – a universal language for international trade

HS_30_GalleryThe Harmonized System (HS) allows a world of many languages to speak with one. A multipurpose nomenclature for trade, the HS is one of the most successful instruments developed by the World Customs Organization. Its Convention has 156 Contracting Parties and the HS is used by more than 200 countries, territories and Customs or Economic Unions. It forms the basis for Customs tariffs and statistical nomenclatures around the world, and is used for around 98% of world trade. The year 2018 marks the 30thAnniversary of the HS which came into effect on 1stJanuary, 1988.

As an international standard with global application, the HS plays a key role in facilitating world trade. The HS is used as the basis for:

  • Customs tariffs;
  • Trade policies and quota controls;
  • Collection of international trade statistics and data exchange;
  • Rules of origin;
  • Trade negotiations such as the WTO Information Technology Agreement and Free Trade Agreements;
  • Monitoring of controlled goods, for example, chemical weapons precursors, hazardous wastes and persistent organic pollutants, ozone depleting substances and endangered species;
  • Many Customs controls and procedures, including risk assessments and profiling, electronic data input and matching and compliance activities; and Economic research and analysis..

The HS is crucial to the development of global trade. It is also fundamental to achieving fair, efficient, and effective revenue collection, a primary Strategic Goal of the WCO. In addition, as it provides an essential tool for the simplification and harmonization of customs procedures and provides the basis of knowing what trade goods are crossing borders, it contributes to other major strategic goals of Customs administrations and of the WCO.

The HS is a living language. The HS is now in it’s 6th edition and in the process of preparing for the Seventh Edition of the HS (HS 2022). During the life of the HS, there have been 60 meetings of the Harmonized System Committee (HSC) where 4,144 agenda items were discussed, 10 Recommendations were produced concerning the application of the HS Convention, 2280 classification decisions made and 871 Classification Opinions adopted to ensure the harmonization of classification. On 1st of January 2018, Members can be congratulated on having worked through the 60 HSC meetings, 53 meetings of the Review Sub-Committee (RSC) and 32 meetings of the Scientific Sub-Committee (SSC) to maintain and update the HS to keep it responsive and relevant to current needs.

On the occasion of this anniversary, the WCO calls for the international Customs community, in partnership with the international trade community, to continue to be proactive and pursue its efforts to develop and maintain the HS, especially in terms of the application and uniform interpretation of the HS, so as to safeguard and further grow the benefits of this success. Source: WCO, 3 January 2018.