Presentation on theme: "Historical Background And Evolution of the Harmonized System"— Presentation transcript:
1 Historical Background And Evolution of the Harmonized System
2 Overall Goal of this training; To be able to classify all tradable goods using the provisions of the HS Nomenclature
3 Overall Course objectives To outline the historical background of the HSTo identify the structure of the HSTo apply the principles of classification-GIRS/Legal notes
4 lesson objectives To define different terminologies To outline the Background of the HSTo identify the uses and users of the HS
5 DEFINITIONS Nomenclature: A system of naming and categorizing objects in a particular science, discipline or art in a given category
6 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.
7 Definition cont..dClassification 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.
8 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
9 HISTORICAL BACKGROUND The Harmonized System took more than 100 years to be designed.Aim was to facilitate international tradeClassification according to their alphabetical order
10 Historical background cont..d In , an International Statistical Nomenclature (ISN)Approved by an International Convention and signed by 29 countries
11 Historical background cont..d It consisted of 186 items, arranged infive groups;Live animalsFood and beveragesRaw and simply prepared materialsManufactured goodsGold and Silver
12 Historical background cont..d League of Nations Conference 1927Draft Nomenclature produced 1931(Geneva Nomenclature)The Nomenclature had 991 headings grouped in 86 Chapters
13 Historical background cont..d The Chapters were arranged into 21 SectionsRevised in 1937Development stopped by war II
14 Brussels Tariff Nomenclature European customs study group continued to work on Geneva nomenclature.Draft named Brussels Tariff Nomenclature (BTN)1974- (BTN) renamed ‘The Customs Cooperation Council Nomenclature’ (CCCN).
15 CCCN CCCN had 1241 Headings Grouped into 99 Chapters Arranged in 21 Sections
16 CCCN CCCN is supported by: I. Explanatory Notes for official interpretationII. Alphabetical index listingIII. A compendium of classification opinion
17 CCCN1983 CCCN was replaced by the Harmonized Commodity Description and Coding System.The Harmonized System entered into force.
18 Uses of HS A common Nomenclature is used to classify goods in the course ofInternational trade forCustoms dutiesStatistics
19 Uses of HS cont..dOrigin of goodsControlled goodsTrade barriers
20 Advantages of Harmonised System Uniform and ConsistentNo re-classificationStandardised Customs terminologyFacilitate statistical analysis
21 HS Users Governments International Organisations Importers and exporters
28 ConclusionHS is used by Over 200 countries and economic blocks or Customs unionsThe Harmonised System Convention currently has 141 contracting parties as at 30th March 2012 according to HS WCO official documents.