The 71st Session of the Harmonized System Committee recently concluded with great success. The committee met virtually to discuss important matters related to the Harmonized System (HS), which is used to classify goods traded internationally. The HS is a globally accepted standard used by customs authorities to determine the appropriate customs duty and other charges for imported and exported goods.
What is the Harmonized System Committee?
The Harmonized System Committee is a specialized committee established by the World Customs Organization (WCO) to oversee the development, maintenance, and application of the Harmonized System. The committee is made up of experts from customs administrations, trade organizations, and other stakeholders involved in international trade.
The committee meets annually to discuss and resolve issues related to the interpretation, application, and development of the HS. The HS is updated every five years to reflect changes in international trade practices and to accommodate new products and technologies.
Key Outcomes of the 71st Session
The 71st Session of the Harmonized System Committee focused on several important issues related to the HS. One of the key outcomes was the approval of the HS 2022 edition, which will come into effect on January 1, 2022. The new edition includes several updates and revisions, including the addition of new subheadings to accommodate emerging technologies and new products.
Another important outcome of the session was the discussion and approval of several amendments to the HS Explanatory Notes, which provide guidance on the interpretation of the HS. The amendments aim to clarify the classification of certain goods and to provide guidance on the use of new technologies and methods of production.
Importance of the Harmonized System in International Trade
The Harmonized System plays a critical role in international trade by providing a common language for the classification of goods. It is used by customs authorities worldwide to determine the appropriate customs duty and other charges for imported and exported goods, making it essential for businesses involved in international trade.
The HS also facilitates the collection and analysis of trade statistics, enabling governments and businesses to monitor and analyze international trade flows. This information is critical for the formulation of trade policies and the development of international trade agreements.
In conclusion, the successful conclusion of the 71st Session of the Harmonized System Committee is an important milestone in the ongoing development and application of the HS. The updates and revisions to the HS and the Explanatory Notes will provide greater clarity and guidance on the classification of goods, making it easier for businesses to comply with customs regulations and to facilitate international trade.