The World Customs Organisation (WCO) announced on October 7 that, just over a month ago, on September 5, it had formally established a small project team for a two-year period to conduct an exploratory study on a possible strategic review of the Harmonised Commodity Description and Coding System. Generally referred to as the Harmonised System, or simply HS, it’s a WCO-developed multipurpose international product nomenclature comprising more than 5 000 commodity groups each identified by a six-digit code, arranged in a legal and logical structure and which is supported by well-defined rules to achieve uniform classification.
The study’s objective is to assess the usability, sufficiency and health of the current HS system and conduct a preliminary inquiry into any arising options and strategies that could be pursued to ensure its long-term viability. The outcome of the study is expected to allow WCO members to make an informed decision on whether they wish to undertake a strategic review.
The study provides an opportunity to look at the HS as an overall trade tool, including looking at the complexities of classification; the current system of supporting tools such as Explanatory Notes (ENs), the Compendium of Classification Opinions and the Alphabetical Index; the maintenance of the relevance of the HS to current trade developments; and the HS’s ability to keep pace with changing policy and trade needs.
The ENs, consisting of five volumes and amending supplements, do not form an integral part of the HS convention. However, they constitute the official interpretation of the HS at the international level and are an indispensable complement to the HS. The ENs provide commentary on the scope of each heading, giving a list of the main products included and excluded, together with technical descriptions of the goods concerned (their appearance, properties, method of production and uses) and practical guidance for their identification. Where appropriate, they also clarify the scope of particular tariff subheadings.
The Compendium of Classification Opinions includes the most significant/difficult classification decisions taken by the HS Committee. The Classification Opinions contained in this volume carry the same status as the ENs but refer to specific products. The latest decisions concerning amendments to the HS Compendium of Classification Opinions, taken in March and applicable from June 1, are accessible on the WCO’s website.
The Alphabetical Index, published by the WCO, facilitates the location of references in the HS Nomenclature or in the ENs to any of the products or articles mentioned therein. It is an alphabetical list of the articles and goods mentioned in the HS and its ENs.
The ENs, the Compendium of Classification Opinions and the Alphabetical Index are available by subscription on www.wcotradetools.org or can be bought from the WCO’s online bookshop.
The WCO argues that, owing to the changing face of trade, it is crucial that we continue to nurture the HS as a living document that has undergone various amendments in the past to help keep it abreast of current needs and to address the constant evolution of international trade. The latest HS revision came into effect on January 1. However, these changes have primarily focused on updating individual provisions. With the workload generated by the changing needs of governments and trade in relation to which traded goods require greater specification in the HS, there has been little opportunity to focus on a more holistic consideration of the HS.
The WCO intends to invite interested stakeholders to participate in, and contribute to, the study to ensure that it represents the views and needs of a broad cross-section of users. The link to the WCO’s online survey is expected to be shortly published on its website and on various social media platforms. In the interim, the project team can be contacted at project.HSStudy@wcoomd.org.