The seventh edition of the Harmonized System (HS) nomenclature, used for the uniform classification of internationally traded goods throughout the world, has been accepted by all Contracting Parties to the Harmonized System Convention, the World Customs Organization (WCO) reported on Tuesday (08.01.2020/XNUMX/XNUMX).
The international organization also announced that The new HS will come into force on 1 January 2022.
The HS serves as the basis for customs tariffs and the compilation of international trade statistics in 211 economies (of which 158 are Contracting Parties to the HS Convention). The new HS 2022 edition makes some important changes to the Harmonized System with a total of 351 sets of amendments covering a wide range of products moving across borders.
The highlights of HS 2022 are as follows::
1. Adaptation to current trade through the recognition of new product flows and the resolution of environmental and social problems of global interest are the main features of the HS 2022 amendments.
2. Visibility will be introduced into a number of high-profile product streams in the 2022 edition to recognise changing trade patterns. Electrical and electronic waste, commonly known as e-waste, is an example of a product class that presents significant policy concerns as well as high trade value, therefore HS 2022 includes specific provisions for its classification to assist countries in their work under the Basel Convention. New provisions for new tobacco and nicotine-based products resulted from the difficulties in classifying these products, the lack of visibility in trade statistics and the very high monetary value of this trade. Unmanned aerial vehicles (UAVs), commonly known as drones, also get their own specific provisions to simplify the classification of these aircraft. Smartphones will get their own subheading and Note, which will also clarify and confirm the current header classification of these multi-functional devices.
3. Significant reconfigurations have been made to the subheadings of heading 70.19 for glass fibres and articles thereof and heading 84.62 for metal forming machinery. These changes recognise that the current subheadings do not adequately represent technological developments in these sectors, leaving a lack of important trade statistics for the industries and potential classification difficulties.
4. One area that is a focus for the future is the classification of multipurpose intermediate assemblies. However, a very important example of such a product has already been addressed at HS 2022. Flat panel display modules will be classified as a product in their own right, simplifying the classification of these modules by removing the need to identify the end use. Health and safety have also featured in the changes. Recognition of the dangers of delays in deploying tools for rapid diagnosis of infectious diseases in outbreaks has led to changes in the provisions for such diagnostic kits to simplify classification. New provisions for placebos and clinical trial kits for medical research to allow classification without information on the ingredients in a placebo will help facilitate cross-border medical research. Cell cultures and cell therapy are among the product classes that have gained new, specific provisions. At the level of human safety, a number of new provisions specifically provide for various dual-use items. These range from toxins to laboratory equipment.
5. The protection of society and the fight against terrorism are increasingly important roles for Customs. Many new subheadings have been created for dual-use items that could be diverted for unauthorized use, such as radioactive materials and biological safety cabinets, as well as for items necessary for the construction of improvised explosive devices, such as detonators.
6. Products specifically controlled under various conventions have also been updated. HS 2022 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. In addition, 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. Important changes have been introduced, including new Note 4 to Section VI and new heading 38.27, for gases controlled under the Kigali Amendment to the Montreal Protocol.
7. The changes are not limited 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 to clarify and align between French and English the appropriate way to measure wood in the rough for the purposes of the subheadings of heading 44.03.
Given the broad scope of the changes, there are many important changes not mentioned in this brief introduction. All interested parties are encouraged to read the Recommendation carefully (it will be published shortly).
Implementación
While January 2022 may seem far away, much work is needed from the WCO, at national and regional levels for the timely implementation of the new edition of the HS. The WCO is currently working on developing the required correlation tables between the current 2017 and the new edition of the HS, and on updating HS publications such as the Explanatory Notes, Classification Opinions, the Alphabetical Index and the HS online database.
Customs administrations and regional economic communities have a huge task to ensure the timely implementation of the HS 2022 edition, as required by the HS Convention. They are therefore encouraged to start the process of preparing for the implementation of HS 2022 in their national customs tariffs or statistical nomenclatures.
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