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Historical Background And Evolution of the Harmonized System
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Overall Goal of this training;
To be able to classify all tradable goods using the provisions of
the HS Nomenclature
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Overall Course objectives
To outline the historical background
of the HS
To identify the structure of the HS
To apply the principles of
classification-GIRS/Legal notes
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lesson objectives
To define different terminologies
To outline the Background of the HS
To identify the uses and users of the HS
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DEFINITIONS
Nomenclature: A system of naming and
categorizing objects in a particular science, discipline or art in a given category
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Definition cont..d
Tariff means; A system of duties imposed by the
government of a country upon goods imported or exported.
A customs tariff shows how much duty is payable on imported or exported goods.
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Classification is the act of placing goods into the correct category.
Customs Classification refers to a particular category in the Nomenclature in which a product is classified or categorized.
Definition cont..d
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Definitions cont..d
International trade; Exchange of goods between two or
more countries. The Harmonised Commodity
Description and Coding System (HS)
International system for classifying goods for trade purposes
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HISTORICAL BACKGROUND
The Harmonized System took more than 100 years to be designed.
Aim was to facilitate international trade
Classification according to their alphabetical order
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Historical background cont..d In 1853-1922, an International
Statistical Nomenclature (ISN)
Approved by an International Convention and signed by 29 countries
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Historical background cont..d
It consisted of 186 items, arranged in five groups;
Live animals Food and beverages Raw and simply prepared materials Manufactured goods Gold and Silver
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Historical background cont..d
League of Nations Conference 1927
Draft Nomenclature produced 1931(Geneva Nomenclature)
The Nomenclature had 991 headings grouped in 86 Chapters
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Historical background cont..d
The Chapters were arranged into 21 Sections
Revised in 1937
Development stopped by war II
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Brussels Tariff Nomenclature 1948 - European customs study
group continued to work on Geneva nomenclature.
1950- Draft named Brussels Tariff Nomenclature (BTN)
1974- (BTN) renamed ‘The Customs Cooperation Council Nomenclature’ (CCCN).
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CCCN
CCCN had 1241 Headings
Grouped into 99 Chapters
Arranged in 21 Sections
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CCCN
CCCN is supported by:
I. Explanatory Notes for official interpretation
II. Alphabetical index listingIII. A compendium of classification
opinion
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CCCN
1983 CCCN was replaced by the Harmonized Commodity Description and Coding System.
1988 The Harmonized System entered into force.
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Uses of HS
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A common Nomenclature is used to classify goods in the course of International trade for
Customs duties
Statistics
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Uses of HS cont..d
Origin of goods
Controlled goods
Trade barriers
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Advantages of Harmonised System
Uniform and Consistent
No re-classification
Standardised Customs terminology
Facilitate statistical analysis
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HS Users Governments
International Organisations
Importers and exporters
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Users cont..d
Manufacturers
Traders
Shipping agents
Transporters
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Users cont..d
Port Authorities
Statisticians
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HS Convention
Members of WCO
Use HS in the Annex
Use HS as basis for Customs
Administer HSC
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HSC cont..d
Settlement for Classification Questions and Dispute
Updating
HSC came in force 1 January, 1988 5019 HS codes
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HS updates
1992 Editorial amendment HS codes 5018
1996 The Second update 393 sets of amendments. 5113 HS codes
2002 The Third update 374 sets of amendments. HS codes 5224
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Updates
2007 Fourth update. 354 sets of amendments. 5052 HS codes
2012 Fifth update. 220 sets of amendments. 5212 HS codes.
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Conclusion
HS is used by Over 200 countries and economic blocks or Customs unions
The Harmonised System Convention currently has 141 contracting parties as at 30th March 2012 according to HS WCO official documents.
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THE ENDThank you