International Convention on the Harmonized Commodity Description and Coding System

KEY POINTS

The convention:

• confirms all the signatories:
  • guarantee their customs tariff and statistical headings will conform to the harmonized system (HS) once the convention enters into force,
  • apply the convention’s general rules,
  • make publicly available their import and export trade statistics in line with the HS’s six-digit codes,
  • may apply subdivisions to classify goods below the level of the HS;
• allows developing countries:
  • to delay using some or all of the HS’s subheadings, but urges them to adopt the system within 5 years;
• notes that developed countries, if requested, will provide technical assistance to developing countries to help them apply the HS;
• establishes a harmonized system committee, which:
  • has one representative from each signatory,
  • meets normally at least twice a year,
  • proposes amendments to the convention,
  • prepares explanatory notes, classification opinions and recommendations to ensure the HS is uniformly applied,
  • collates and circulates information on the HS;
• states that the World Customs Organization (WCO) (formerly the Customs Cooperation Council) examines proposed amendments to the convention and recommends these to the signatories;
• requires any dispute between signatories on the interpretation or application of the convention to be settled by negotiation — failing this, the issue is referred to the harmonized system committee of the WCO;
• sets out that the following may sign up to the convention:
  • member countries of the WCO,
  • customs or economic unions with the power to sign treaties,
  • countries invited to do so;
• gives signatories the right to decide whether the convention applies to any of their dependent territories;
• is of unlimited duration.

The convention replaces the Convention on Nomenclature signed in Brussels on 15 December 1950.