WCO News – June 2022 Edition

The WCO has published the 98th 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 ongoing discussions and initiatives that aim to “green” trade as well as on the role of Customs in supporting this ambition. Given that one question that comes up repeatedly is how to increase the available data for environmentally friendly goods and ensure they are specified by name under their own Harmonized System (HS) code, the Dossier also provides answers to some of the most common queries about the HS and how to tailor it to meet changing needs.

The “Panorama” section looks at a broad variety of initiatives such as developing an anti-corruption strategy, building Customs-Business partnership, launching research and development programmes and placing scientists at ports of entry to identify unknown substances. 

The “Focus” section brings together articles dealing with gender equality and diversity. The WCO Secretariat presents the latest developments at the WCO in these areas, while two administrations share their experience of creating an inclusive workplace culture where diversity is celebrated and everyone is treated fairly.

Lastly, in the “Point of View” section representatives from the private sector share highlights of some technological breakthroughs aimed at improving Customs controls while facilitating trade and, in one case, protecting importers’ information.

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.

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

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.

New WCO HS standards coming into force on 1 January 2017

OMD_7760The WCO Council, at its 123rd/124th Sessions in June 2014, adopted a Recommendation that lists recommended amendments to the Harmonized System (HS) nomenclature which will enter into force on 1 January 2017 (HS 2017).

This Recommendation is being promulgated under the provisions of Article 16 of the HS Convention, which implies that HS Contracting Parties now have six months to notify the WCO Secretariat of an objection to a recommended amendment.

Since the entry into force of the current version of the HS (HS 2012), the HS Committee has been revising this version of the HS nomenclature for almost five years. HS 2017 will be the sixth version of the HS since the Convention entered into force in 1983. HS 2017 will enter into force for all HS Contracting Parties, but will exclude any amendments objected to during the six month timeframe.

The new version of the HS includes 234 sets of amendments. Environmental and social issues are a major feature of these amendments, due to the importance of the HS as a global tool for collecting trade statistics and monitoring trade. This is borne out by the fact that the HS Convention currently has 150 Contracting Parties, making it the WCO’s most successful international instrument to date.

The majority of the recommended amendments were broached by the Food and Agriculture Organization of the United Nations (FAO):

  • Amendments relating to fish and fishery products are aimed at further enhancing the coverage of species and product forms which need to be monitored for food security purposes, and the better management of resources.
  • Amendments relating to crustaceans, molluscs and other invertebrates are motivated by the importance of the trade in and consumption of these species in their various product forms.
  • Amendments relating to cuttlefish and squid enlarge the coverage of the present HS codes for these species, in order to have all these species grouped together.

The classification of forestry products has also been modified, in order to enhance the coverage of wood species and get a better picture of trade patterns. The modification will enable trade data on tropical wood to be identified, resulting in better statistics on the trade in tropical wood and better data on the use of non-tropical hardwoods. In addition, the amendments include new subheadings for the monitoring and control of certain bamboo and rattan products.

Furthermore, HS 2017 amendments aim to provide detailed information on several categories of products that are used as antimalarial commodities. This will facilitate classification work, and the trade in these life-saving products.

The amendments also introduce specific subheadings to facilitate the collection and comparison of data on the international movement of certain substances controlled under the Chemical Weapons Convention.

New subheadings have also been created for a number of hazardous chemicals controlled under the Rotterdam Convention and for certain persistent organic pollutants (POPs) controlled under the Stockholm Convention. In some cases, there is a confluence of control regimes for chemicals by both the Rotterdam and Stockholm Conventions.

In addition, new subheadings have been created for the monitoring and control of pharmaceutical preparations containing ephedrine, pseudoephedrine or norephedrine, and for alpha-phenylacetoacetonitrile (APAAN), a pre-precursor for drugs.

Other amendments resulted from changes in international trade patterns. Headings 69.07 (unglazed ceramic products) and 69.08 (glazed ceramic products) were merged to take account of the fact that the main subheadings within these headings concern products which are essentially no longer manufactured, and the industry and trade no longer make a distinction between unglazed and glazed ceramic products, whilst new products with a very high trade volume are classified under subheadings 6907.90 and 6908.90 (“Other”).

Furthermore, for purposes of adapting the HS to current trade practices, certain important products will be separately identified in either existing or new subheadings.

Advances in technology are also reflected in the amendments, inter alia, the size criteria for newsprint, light-emitting diode (LED) lamps, multi-component integrated circuits (MCOs), and hybrid, plug-in hybrid and all-electric vehicles.

Finally, the HS 2017 Recommendation includes amendments to clarify texts to ensure uniform application of the nomenclature. For example, the regrouping of monopods, bipods, tripods and similar articles in a new heading, namely 96.20. Source: The WCO

Angola’s new customs tariff expected to increase tax revenues

National Customs building in Luanda. [Photo - Lino Guimarães.]

National Customs building in Luanda. [Photo – Lino Guimarães.]

Angola’s new customs tariff, which came into effect on 1 March, is expected to increase tax revenues by around 23 billion kwanzas per year, according to Angolan news agency Angop.

Citing official figures, the agency said that the figure was a 10 percent increase on customs taxes provided by the previous tariff list, which came into effect in 2007.

The director of the Tariff and Trade department of the Angolan National Customs Service said recently that of a total of 6,651 products on the new tariff list, 2,942 are free from taxes and 1,150 products had their tariff reduced to 2 percent.

On the 2007 tariff list there were 2.576 tax-free products and 914 charged at a rate of 2 percent, of a total 6,011 products.

Amongst the items that can no longer enter the country, according to the new tariff list, are home-made medications, goods that breach copyright and industrial copyright and pornography.

The new customs tariff, which will be in place until 2017, is intended to improve circulation of Angolan goods and encourage exports. Source: macauhub

Philippine Customs Launches Transparency Portal

bocBigLogoBureau of Customs (BOC) unveiled a new website called “Customs ng Bayan” (Customs of the Nation) as part of newly-appointed Customs Commissioner John Phillip Sevilla’s initiatives to “uproot” the agency from its long history of institutionalised corruption.  “We are publishing reports of almost every importation into the Philippines in December 2013. Going forward, we intend to publish this list every month,” Sevilla said in an official statement.

Each item in the list represents a specific quantity (measured by weight) of a specific item that was imported by a specific importer on a specific day. The list – 88,006 items in December 2013 alone – is organised by major product groups, using the Harmonised Standard (HS) Code classification system.

“For each item, we include information such as a description of the item imported, its HS code number and standard HS code description, what country the item came from, its value and the amount of duties and taxes collected on that item.”

The Bureau of Customs, for the past years, has been one of the country’s most prominent faces of corruption in the government. According to Sevilla, all of that is about to change as they make drastic shifts in leadership, personnel and processes. In particular, he highlighted the importance of leveraging ICT to support the administration’s reform agenda.

“We need to improve the capacity of our IT systems to comply with needed reforms,” he said, adding that the Bureau is now studying the feasibility of implementing a single IT platform for all transactions, which involves improving the planned Php 442.3 million (US$9.8 million) National Single Window (NSW) project.

The NSW will facilitate trade through efficiencies in the Customs and authorisation processes. It will allow single submission and accelerated processing of applications for licenses, permits and other authorisations required prior to undertaking a trade transaction.Source: www.futuregov.asia

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WCO Classification Decisions (2013)

RACThe World Customs Organisation (WCO) has published the classification decisions taken at the last Session of the Harmonized System Committee (52nd Session) in September 2013 : the Classification Rulings, the Amendments to the Explanatory Notes and to the Compendium of Classification Opinions. You can locate the decisions via the following links:

Classification Rulings – HS Committee 52nd Session

Amendments to the Compendium of Classification Opinions – HS Committee 52nd Session

Amendments to the Harmonized System Explanatory Notes  – HS Committee 52nd Session

Source: WCO