historical background and evolution of the harmonized system

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Historical Background And Evolution of the Harmonized System

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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 - PowerPoint PPT Presentation

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Page 1: Historical Background And Evolution of the Harmonized System

Historical Background And Evolution of the Harmonized System

Page 2: 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

Page 3: Historical Background And Evolution of the Harmonized System

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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Page 4: Historical Background And Evolution of the Harmonized System

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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Page 5: Historical Background And Evolution of the Harmonized System

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.

Page 7: Historical Background And Evolution of the Harmonized System

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

Page 8: Historical Background And Evolution of the Harmonized System

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

Page 9: Historical Background And Evolution of the Harmonized System

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

Page 10: Historical Background And Evolution of the Harmonized System

Historical background cont..d In 1853-1922, an International

Statistical Nomenclature (ISN)

Approved by an International Convention and signed by 29 countries

Page 11: Historical Background And Evolution of the Harmonized System

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

Page 12: Historical Background And Evolution of the Harmonized System

Historical background cont..d

League of Nations Conference 1927

Draft Nomenclature produced 1931(Geneva Nomenclature)

The Nomenclature had 991 headings grouped in 86 Chapters

Page 13: Historical Background And Evolution of the Harmonized System

Historical background cont..d

The Chapters were arranged into 21 Sections

Revised in 1937

Development stopped by war II

Page 14: Historical Background And Evolution of the Harmonized System

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).

Page 15: Historical Background And Evolution of the Harmonized System

CCCN

CCCN had 1241 Headings

Grouped into 99 Chapters

Arranged in 21 Sections

Page 16: Historical Background And Evolution of the Harmonized System

CCCN

CCCN is supported by:

I. Explanatory Notes for official interpretation

II. Alphabetical index listingIII. A compendium of classification

opinion

Page 17: Historical Background And Evolution of the Harmonized System

CCCN

1983 CCCN was replaced by the Harmonized Commodity Description and Coding System.

1988 The Harmonized System entered into force.

Page 18: Historical Background And Evolution of the Harmonized System

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

Page 19: Historical Background And Evolution of the Harmonized System

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