HS Nomenclature 2017 Edition
The WCO has published the accepted amendments to
the Harmonized System (HS) Nomenclature that will enter into force on 1
January 2017. It includes 233
sets of amendments, divided as follows: agricultural sector 85; chemical
sector 45; wood sector 13; textile sector 15; base metal sector 6; machinery
sector 25; transport sector 18; other sectors 26.
Environmental and social issues of global concern
are the major feature of the HS 2017 amendments. The majority of these changes
to the HS have been broached by the FAO (Food and Agriculture Organization of
the United Nations).
Due to the importance of the HS in the collection
of trade statistics, the HS 2017 amendments for fish and fishery products are
to further enhance the coverage of species and product forms which need to be
monitored for food security purposes and for better management of resources.
The split by more detailed product forms for crustaceans, molluscs
and other invertebrates is motivated by the importance of trade and consumption
of these species in the various product forms. The subdivisions enable a better
correspondence between the HS and the United Nations Central Product
Classification (CPC). The amendment for cuttlefishes and squids is to extend
the coverage of the present codes, in order to have all those species grouped.
At present, a significant share of cuttlefish and squid trade is recorded under
residual codes for molluscs.
The amendment for forestry products aims at one
main area : enhancement of the coverage of wood
species in order to get a better picture of trade patterns, including
endangered species. In particular, separating the data on tropical wood trade
will both serve to focus attention on the important issue of tropical wood use
and clarify data on non-tropical hardwoods. The HS 2017 amendments also include
the creation of new subheadings for the monitoring and control of certain products
of bamboo and rattan, requested by the International Network for Bamboo and
Rattan (INBAR).
Nearly one-half of the world's population lives at
risk of malaria. The HS 2017 amendment aims at detailed information for several
categories of products that are used as antimalarial commodities.
The HS 2017 Edition also 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 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 amendments include clarification of
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.
The recommendation to amend the name "Imbuia" in the text of subheading 4407.22 will not
take effect on 1 January 2017 due to an objection having been lodged by one of
the Contracting Parties to the HS Convention. It has become clear that the
pilot name "Imbuia" is correct.
The Implementation period
While January 2017 may seem far off, the WCO
Secretariat is working on the development of requisite correlation tables
between the old and new editions 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 also have a huge task to
ensure timely implementation of the HS2017 Edition, as required by the HS
Convention. They are therefore encouraged to begin the process of implementing
the HS 2017 in their national Customs tariff or statistical nomenclatures.