WCO Committee Adopts Amendments to International HS (Expected to Take Effect in 2012)
The World Customs Organization's Harmonized System Committee (HSC) has adopted amendments to the Harmonized System, the international level tariff schedule, at its 43rd Session from March 9-20, 2009. The HSC adopted these amendments to the HS in the context of the fourth review cycle.1
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Fourth Review Cycle Amendments to Enter into Force on January 1, 2012
The HSC's adopted amendments will be submitted to the WCO Council for approval in June 2009. Once approved by the WCO Council, all amendments, except those for which an objection has been timely notified to the WCO Secretariat, will enter into force for all Contracting Parties to the HS Convention on January 1, 2012.
U.S. Would Align HTS to International HS Changes
The International Trade Commission has previously stated that changes in the international HS that result from this review cycle will not necessarily affect tariff rates for products imported into the U.S. However, as with the first three HS review cycles, the ITC plans to develop a set of proposed U.S. Harmonized Tariff Schedule changes that will align the HTS with the HS.
Certain Amendments Would Cover Food Security, Chemicals, Pesticides, Etc.
According to the WCO, environmental and social issues are a major feature of the amendments adopted by the HSC, particularly the use of the HS as the standard for classifying and coding goods of specific importance to food security and early warning data falling within the ambit of the Food Security Information for Action Program of the UN Food and Agricultural Organization (FAO).
In addition, certain amendments would create additional subheadings for the identification of chemicals and pesticides controlled under the Rotterdam Convention and ozone depleting substances controlled under the Montreal Protocol.
Other Amendments Would Reflect Changes in Trade Patterns/Technology
The WCO states that other amendments adopted by HSC are a result of changes in international trade patterns and technology. For example:
the HS would be simplified by the deletion of more than 40 headings or subheadings in the nomenclature due to their low volume of trade;
certain important products would be separately identified in either existing or new headings to adapt the HS to current trade practices;
advances in technology would be reflected where possible; and
amendments would be made to clarify texts to ensure uniform application of the HS.
1The WCO began a series of reviews of the entire HS in 1988. This fourth review cycle began in 2005.
(Broker Power issued a 35-part series of summaries of the WCO changes as reported by the ITC for the third review cycle. See ITT's Online Archives or 10/25/06 news, 06102530, for last BP summary, with links to the 34 prior ones.)
(See ITT's Online Archives or 02/18/09 news, 09021850, for BP summary of U.S. Customs and Border Protection's February 5th Bulletin Notice on the draft agenda for this 43rd Session of the WCO's HSC.
See ITT's Online Archives or 01/04/07 news, 07010410, for BP summary of the ITC's January 2007 posting of HTS changes implemented to conform U.S. law to the HS as a result of HSC decisions associated with the third cycle review, etc.
See ITT's Online Archives or 08/30/05 news, 05083005, for BP summary of ITC's 2005 request for proposals to amend the HS in 2012 as part of the WCO fourth review.)
WCO press release available at http://www.wcoomd.org/files/1.%20Public%20files/PDFandDocuments/Highlights/HS%202012%20-%20HSC%20EN%20v3.pdf