What is the structure of the Harmonized System?
At the international level, the Harmonized System (HS) for classifying goods is a six-digit code system. The HS comprises approximately 5,300 article/product descriptions that appear as headings and subheadings, arranged in 99 chapters, grouped in 21 sections. The six digits can be broken down into three parts.
What is the Harmonized Commodity Description and Coding System or simply HS?
The Harmonized commodity description and coding system is a multi-purpose international product nomenclature developed by the World Customs Organization (WCO). It is often simply called Harmonized System and abbreviated as HS. Over 98 % of merchandise in international trade is classified in terms of the HS.
Who issues and maintains the Harmonized Commodity Description and Coding System?
The Harmonized Commodity Description and Coding System (HS) forms the basis of the Customs Tariff. The HS was developed and is maintained by the World Customs Organization (WCO), an independent intergovernmental organization with over 179 members and is based in Brussels, Belgium.
What is the Harmonized System HS )? State why HS is considered as multi purposes tool?
At the international level, the Harmonized System is based on a hierarchy of Sections, Chapters, headings and subheadings. This has given the WCO the framework to respond to the concerns of many governments and international organizations who want to take steps to counter newly emerging problems.
What does the WCO do?
The WCO promotes certainty, predictability and security of the international movement of goods and people accompanying goods by establishing clear and precise standards, e.g. the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade.
How do HS relate to WCO?
The maintenance of the HS is a WCO priority. The WCO manages this process through the Harmonized System Committee (representing the Contracting Parties to the HS Convention), which examines policy matters, takes decisions on classification questions, settles disputes and prepares amendments to the Explanatory Notes.
What is Harmonised system of classification?
The Harmonized System is a standardized numerical method of classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics.
What are the benefits that the Philippines received as a member of WCO?
The Philippines will also become the first country in SE Asia to benefit from use of the WCO Cargo Targeting System which allows detailed analysis of pre-arrival information to target consignments likely to contain illicit goods as well as assist to speed clearance and facilitate licit trade.
How does WCO affect international trade?
The WCO provides Customs administrations with adequate instruments to ensure that legitimate trade is facilitated and that there is a seamless flow of passengers and conveyances but at the same time, Customs need to protect the frontiers against a plethora of safety, security and biosecurity threats including terrorism …
What is the purpose of Harmonised system HS code?
HS codes are in principle harmonised across most countries around the world however some exceptions exist. HS codes are used for a number of purposes. They enable the customs authorities to identify the product and apply the appropriate import duty as well as other taxes and trade measures.
How does WTO help developing countries like the Philippines?
Philippine undertakings under the WTO Agreements included a significant increase in tariff bindings, extensive tariff reductions, elimination of quantitative and other non-tariff measures, and commitments in many services sectors.
Which is part of the WCO Harmonized System database?
The Harmonized System database contains the HS Nomenclature (2007, 2012 and 2017 versions), the HS Explanatory Notes (4th edition – 2007, 5th edition – 2012 and 6th edition – 2017), the Classification Opinions, the Alphabetical Index, the Classification Decisions, the Amendments to the HS implemented as on 1st January 2017 and
What is the Harmonized Commodity Description and coding system?
The Harmonized Commodity Description and Coding System generally referred to as “Harmonized System” or simply “HS” is a multipurpose international product nomenclature developed by the World Customs Organization (WCO).
How does the WCO manage the HS Convention?
The WCO manages this process through the Harmonized System Committee (representing the Contracting Parties to the HS Convention), which examines policy matters, takes decisions on classification questions, settles disputes and prepares amendments to the Explanatory Notes.
How often does the WCO update the HS code?
The WCO manages this process through the Harmonized System Committee (representing the Contracting Parties to the HS Convention), which examines policy matters, takes decisions on classification questions, settles disputes and prepares amendments to the Explanatory Notes. The HS Committee also prepares amendments updating the HS every 5 – 6 years.