Presentation on theme: "Historical Background And Evolution of the Harmonized System"— Presentation transcript:
1Historical Background And Evolution of the Harmonized System
2Overall Goal of this training; To be able to classify all tradable goods using the provisions of the HS Nomenclature
3Overall Course objectives To outline the historical background of the HSTo identify the structure of the HSTo apply the principles of classification-GIRS/Legal notes
4lesson objectives To define different terminologies To outline the Background of the HSTo identify the uses and users of the HS
5DEFINITIONS Nomenclature: A system of naming and categorizing objects in a particular science, discipline or art in a given category
6Definition 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.
7Definition 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.
8Definitions 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
9HISTORICAL BACKGROUND The Harmonized System took more than 100 years to be designed.Aim was to facilitate international tradeClassification according to their alphabetical order
10Historical background cont..d In , an International Statistical Nomenclature (ISN)Approved by an International Convention and signed by 29 countries
11Historical background cont..d It consisted of 186 items, arranged infive groups;Live animalsFood and beveragesRaw and simply prepared materialsManufactured goodsGold and Silver
12Historical background cont..d League of Nations Conference 1927Draft Nomenclature produced 1931(Geneva Nomenclature)The Nomenclature had 991 headings grouped in 86 Chapters
13Historical background cont..d The Chapters were arranged into 21 SectionsRevised in 1937Development stopped by war II
14Brussels 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).
15CCCN CCCN had 1241 Headings Grouped into 99 Chapters Arranged in 21 Sections
16CCCN CCCN is supported by: I. Explanatory Notes for official interpretationII. Alphabetical index listingIII. A compendium of classification opinion
17CCCN1983 CCCN was replaced by the Harmonized Commodity Description and Coding System.The Harmonized System entered into force.
18Uses of HS A common Nomenclature is used to classify goods in the course ofInternational trade forCustoms dutiesStatistics
19Uses of HS cont..dOrigin of goodsControlled goodsTrade barriers
20Advantages of Harmonised System Uniform and ConsistentNo re-classificationStandardised Customs terminologyFacilitate statistical analysis
21HS Users Governments International Organisations Importers and exporters
24HS Convention Members of WCO Use HS in the Annex Use HS as basis for CustomsAdminister HSC
25HSC cont..d Settlement for Classification Questions and Dispute UpdatingHSC came in force 1 January, HS codes
26HS updates 1992 Editorial amendment HS codes 5018 1996 The Second update 393 sets of amendments HS codes2002 The Third update 374 sets of amendments. HS codes 5224
27Updates 2007 Fourth update. 354 sets of amendments. 5052 HS codes 2012 Fifth update. 220 sets of amendments HS codes.
28ConclusionHS 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.