Changes in the assignment of HS Codes as of January 1, 2022
December 23, 2021
On January 1, 2022, the World Customs Organization (WCO) releases the HS 2022 edition of the nomenclature that updates the Harmonized System code system (HS codes).
The HS code nomenclature is a multi-purpose international nomenclature for goods. The WCO developed it and is also maintaining it. Most countries in the world use it as a universal basis for customs tariffs and international trade of good statistics.
In addition to that, countries use the Harmonized System for:
— Internal taxation
— Trade policies
— Tracking of controlled goods
— Rules of origin
— freight rates
— Quota controls
— Transportation statistics
HS codes provide a coding system, based on a hierarchical structure for classifying internationally traded products (goods). The basic components of the HS code are subheadings, identified by six-digit codes.
The HS nomenclature comprises some 5,000 product groups. HS identifies these groups by the 6-digit code and organizes them according to a structure based on fixed rules.
HS Code 2022 changes
The new system has many new updates that reflect how business models have changed over the years.
— Electrical and electronic waste (e-waste), is an example of a product class, in which important political concerns as well as high commercial value, including specific rules for its classification to help its labor countries.
— The new regulations related to new tobacco products and nicotine are due to the difficulties in classifying these products, the lack of visibility in trade statistics and the very high foreign exchange values of this transaction.
— Unmanned aerial vehicles (UAVs), often called drones, also have their own specific rules to simplify these aircraft classifications.
— Smartphones will get their own subtitles that will clarify and confirm the current classification of these multifunction devices. The relevant prescriptions were made for 70.19 position subheadings for fiberglass and its manufacturers and for 84.62 positions for metal forming machines.
Harmonized codes are the key to successful global shipping. If you need support with your codes Crossborderit (CBIT) has a cost-effective solution. We can help your customers pay the lowest legal duties and taxes as well helping you stay compliant and get you shipments across border challenge free.