WCO Council Approves 2012 Amendments to Harmonized System

(The WCO Harmonized Systems Committee (HSC) had adopted these amendments at its 43rd Session in March 2009 and submitted them to the WCO Council for approval. The Council then approved these amendments - a result of the fourth review cycle for the HS - at its annual session in June 2009).

HS Contracting Parties Have 6 Months to Object to an Amendment

HS Contracting Parties have six months during which they can object to a recommended HS amendment. According to ITC sources, if a Party objects to an amendment, it will be dropped from this round of recommendations (for all Parties) and can be brought up again for the next round of recommendations.

HS Amendments to Enter into Force on January 1, 2012

The HS amendments, excluding those objected to during the 6 months timeframe, will enter into force for all Contracting Parties to the HS Convention on January 1, 2012.

U.S. Would Align its Tariff Schedule to HS Changes

As with the first three HS review cycles, the International Trade Commission is expected to develop a set of proposed U.S. Harmonized Tariff Schedule changes that will align the HTS with the HS. Changes in the international HS that will result from this review cycle will not necessarily affect tariff rates for products imported into the U.S.; however, some consequential tariff changes may occur.

221 Sets of Amendments, Includes Food Security, Chemicals, Pesticides, Etc.

There are 221 sets of amendments to the HS. Environmental and social issues are a major feature of the amendments, 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 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; and

advances in technology would be reflected where possible.

Amendments would also be made to clarify texts, to ensure uniform application of the HS.

54 HS Chapters Would be Amended

HS amendments resulting from this fourth cycle will affect 54 Chapters. These changes are listed on 57 pages, 15 of which cover Chapter 3 (Fish, etc.) and 3 of which cover Chapter 29 (Organic chemicals). The affected chapters are (see recommended amendments for details):

(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 04/03/09 news, 09040335, for BP summary of the WCO HSC adopting the amendments.)

WCO press release (06/26/09) available at http://www.wcoomd.org/home_wco_topics_hsoverviewboxes_tools_and_instruments_backgrounddocumenths2012.htm

HS 2012 Amendments (dated 06/26/09) available at http://www.wcoomd.org/files/1.%20Public%20files/PDFandDocuments/HarmonizedSystem/HS2012_SH2012.pdf