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Historical Background And Evolution of the Harmonized System. Overall Goal of this training;. To be able to classify all tradable goods using the provisions of the HS Nomenclature. Overall Course objectives. To outline the historical background of the HS
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Historical Background And Evolution of the Harmonized System
Overall Goal of this training; To be able to classify all tradable goods using the provisions of the HS Nomenclature
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
lesson objectives • To define different terminologies • To outline the Background of the HS • To identify the uses and users of the HS
DEFINITIONS Nomenclature: • A system of naming and categorizing objects in a particular science, discipline or art in a given category
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.
Definition cont..d 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.
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
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
Historical background cont..d • In 1853-1922, an International Statistical Nomenclature (ISN) • Approved by an International Convention and signed by 29 countries
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
Historical background cont..d • League of Nations Conference 1927 • Draft Nomenclature produced 1931(Geneva Nomenclature) • The Nomenclature had 991 headings grouped in 86 Chapters
Historical background cont..d • The Chapters were arranged into 21 Sections • Revised in 1937 • Development stopped by war II
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).
CCCN • CCCN had 1241 Headings • Grouped into 99 Chapters • Arranged in 21 Sections
CCCN CCCN is supported by: I. Explanatory Notes for official interpretation II. Alphabetical index listing III. A compendium of classification opinion
CCCN • 1983 CCCN was replaced by the Harmonized Commodity Description and Coding System. • 1988 The Harmonized System entered into force.
Uses of HS A common Nomenclature is used to classify goods in the course of International trade for Customs duties Statistics
Uses of HS cont..d • Origin of goods • Controlled goods • Trade barriers
Advantages of Harmonised System • Uniform and Consistent • No re-classification • Standardised Customs terminology • Facilitate statistical analysis
HS Users • Governments • International Organisations • Importers and exporters
Users cont..d • Manufacturers • Traders • Shipping agents • Transporters
Users cont..d • Port Authorities • Statisticians
HS Convention Members of WCO • Use HS in the Annex • Use HS as basis for Customs • Administer HSC
HSC cont..d • Settlement for Classification Questions and Dispute • Updating • HSC came in force 1 January, 1988 5019 HS codes
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
Updates • 2007 Fourth update. 354 sets of amendments. 5052 HS codes • 2012 Fifth update. 220 sets of amendments. 5212 HS codes.
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.
THE END Thank you