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Permanent link for Harmonized System Updates Your Company Needs to Know on October 27, 2021

The 7th edition of the Harmonized System (HS) nomenclature will enter into force on January 1, 2022.

Why is this important to your business?

The Harmonized System (HS) nomenclature allows for goods to uniformly be imported and exported to/from countries around the globe, 211 economies participate in this system. The Harmonized System allows for customs tariffs international trade statistics to be tracked and reported as goods flow throughout the global supply chain.

The 7th edition of the HS will include 351 amendments to the current system according to the World Customs Organization.   

Some of the major changes include classifications that deal with advancing technology, health & safety equipment, and society protections.

Advancing Technology

Technological advances are occurring daily. Thus, current heading classifications and provisions are not able to properly track new technology that is being created and traded around the world. Updated 2022 HS provisions and classifications will include e-waste, tobacco products, drones, smartphones, and other multifunctional devices.  

Health & Safety Equipment

Recent years have highlighted the need for a quicker and more streamlined way to deploy tools that help diagnose and treat infectious diseases. Classification for these tools has been simplified and provisions have been put into place in the 7th edition for supporting medical research occurring on a global scale.

Protecting Society from Dual-Use Goods

The World Customs Organization has increased its efforts to combat world terrorism. Subheadings within the HS have been created for dual-use goods that could potentially be converted to an unauthorized use product such as an explosive device.

Conventions & Clarifications

A number of goods controlled by global Conventions such as chemicals controlled under the Chemical Weapons Convention and the Rotterdam Convention to name a few, have also been updated and reflect clarifications of verbiage to ease the process in classifying products correctly.

Van Andel Global Trade Center recommends companies review the United States HS for 2022 and be ready for any changes that may be implemented on January 1, 2022, that could impact the products your business buys and sells globally. Communicate 2022 changes to suppliers, export customers, dealers/distributors, customs brokers, and international freight forwarders. In some cases, it may be beneficial to obtain binding rulings from Customs to ensure there are no issues/delays moving goods around the world.

The official announcement from the World Customs Organization of amendments effective January 1, 2022, can be found here.

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Page last modified October 27, 2021