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WCO Commission to Consider Broad Review of Harmonized System

The recent Global Conference on the future of the Harmonized System for tariffs and trade held by the World Customs Organization resulted in some broad policy recommendations, the WCO said in a news release. Those recommendations will now be sent to the WCO Policy Commission for consideration. The event, which took place May 2-3 at the WCO, included "over 300 participants from Member Customs administrations, partner international organizations, industry associations, trade professionals, import/export companies and academia," it said.

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Specifically, the Policy Commission should support "the implementation of a project to further examine potential areas of change for the Harmonized System," according to the recommendations. Such a review should include a gathering of further information about the use of the HS and continue the consultation process, the WCO said. Also recommended is that the WCO support "the implementation of a project to further examine potential areas of change for the Harmonized System," it said. That examination could result in further recommendations to the Policy Commission "on the progressing of viable changes, including on the most appropriate bodies and mechanism to advance these changes," according to the WCO. The WCO Policy Commission next meets in June.

Despite the new effort, the HS remains "one of the most fundamental instruments for facilitating today’s highly interconnected global trade system," Secretary General of the WCO Kunio Mikuriya said at the event. "It provides a unifying structure to assist those involved in trade with navigating the complexities of trade across borders," he said. "Given the rapid pace of change in technology and trade patterns as well as current levels of uncertainty in the global trade environment, this Conference aims to look at today’s HS from a whole-of-system perspective, consider how it is performing against the goals and expectations it carries and determine whether it could be improved against these criteria."

All involved benefit from a "strong and sustainable HS providing predictable classification for traded goods, solid trade data and an internationally shared understanding of the scope of its provisions," he said. The conference also recognized that "HS was still relevant and “fit for purpose,'” even if there is "room for improvement to ensure that the HS remains compatible with 21st Century trade, changes in technology and the needs of users," the WCO said.