Ammendments To The HS Nomenclature Effective From 1 January 2022

1. The World Customs Organization (WCO) has published the amendments to the Harmonized System (HS) Nomenclature accepted by all 158 Contracting Parties to the HS Convention.

2. The accepted amendments include 351 sets of amendments, divided as follows:
2.1    the agricultural, food and tobacco sectors - 77; 
2.2    the chemical sector  58; 
2.3    the wood sector - 31; 
2.4    the textile sector - 21; 
2.5    the base metal sector - 27; 
2.6    the machinery and electrical and electronic goods sector - 63; 
2.7    the transport sector - 22; 
2.8    other sectors - 52.

3. The Preamble of the HS Convention emphasizes the importance of ensuring that the HS is kept up to date in light of changes in technology and patterns of international trade.  Adaptation to current trade through the recognition of new product streams and addressing environmental and social issues of global concern are the major features of the HS 2022 amendments.

4. HS 2022, which is the seventh edition of the Harmonized System (HS) nomenclature used for the uniform classification of goods traded internationally all over the world, has been accepted by the all Contracting Parties to the Harmonized System Convention.  It shall come into force on 1 January 2022.

5. The HS serves as the basis for Customs tariffs and for the compilation of international trade statistics in 211 economies (of which 158 are Contracting Parties to the HS Convention).  The new HS2022 edition makes some major changes to the Harmonized System with a total of 351 sets of amendments covering a wide range of goods moving across borders.  Here are some of the highlights:

6. The following high profile product streams in the 2022 Edition has been introduce due to changing trade patterns:  
6.1 Electrical and electronic waste, commonly referred to as e-waste, is one example of a product class which presents significant policy concerns as well as a high value of trade, hence HS 2022 includes specific provisions for its classification to assist countries in their work under the Basel Convention.  
6.2 New provisions for novel tobacco and nicotine based products resulted from the difficulties of the classification of these products, lack of visibility in trade statistics and the very high monetary value of this trade.
6.3 Unmanned aerial vehicles (UAVs), commonly referred to as drones, also gain their own specific provisions to simplify the classification of these aircraft. 
6.4 Smartphones will gain their own subheading and Note, which will also clarify and confirm the current heading classification of these multifunctional devices.

7. Similarly, major reconfigurations have been undertaken for the subheadings of heading 70.19 for glass fibres and articles thereof and for heading 84.62 for metal forming machinery.These changes recognize that the current subheadings do not adequately represent the technological advances in these sectors, leaving a lack of trade statistics important to the industries and potential classification difficulties.
8. One area which is a focus for the future is the classification of multi-purpose intermediate assemblies.  However, one very important example of such a product has already been addressed in HS 2022.  Flat panel display modules will be classified as a product in their own right which will simplify classification of these modules by removing the need to identify final use.  
9. Health and safety has also featured in the changes. The recognition of the dangers of delays in the deployment of tools for the rapid diagnosis of infectious diseases in outbreaks has led to changes to the provisions for such diagnostic kits to simplify classification.  New provisions for placebos and clinical trial kits for medical research to enable classification without information on the ingredients in placebos will assist in facilitating cross-border medical research.  Cell cultures and cell therapy are among the product classes that have gained new and specific provisions.  On a human security level, a number of new provisions specifically provide for various dual use items.  These range from toxins to laboratory equipment.
10. While January 2022 may seem far off; all Stakeholders are invited to provide comments on the amendments as attached before 30 July 2021.   

HS 2022 Correlation Table-Part 1 of Schedule No 1( 2 June 2021)