The World Customs Organization (WCO) updates the Harmonized System (HS) every five years. Understanding these changes is crucial for anyone involved in global trade. Here's a summary of the recent updates and tips for maintaining compliance.
2022 HS Updates
The latest revision of the Harmonized System was implemented in January 2022, with the next update scheduled for 2027. This update includes about 350 amendments to the 2017 version of the HS Nomenclature, affecting various sectors, including textiles, machinery, articles of metal, wood, and plastics. The key industries impacted by these changes are:
- Chemicals
- Textiles
- Automotive
- Furniture
Impact on Industries
If your business deals with products in the affected categories, staying compliant with the updated HS codes is important to avoid miscalculating duties, import delays, or fines.
Ensuring HS Code Compliance
While the recipient is often responsible for correctly applying HS codes, as an exporter, you should ensure their accuracy to prevent shipment issues and maintain a positive customer experience. Here's how to stay compliant:
Compliance Tips
- Review HS Changes: Stay updated with the latest amendments.
- Identify Affected Products: Determine which of your products are impacted by the changes.
- Map Updated HS Codes: Relate your products to the new HS codes.
- Track Country-Specific Updates: Monitor when countries you ship to implement their changes.
- Reclassify Products: Update your product classifications to match each country's rollout.
By following these steps, you can ensure smooth operations and compliance in your international trade activities.