International Convention on the Harmonized Commodity Description and Coding System

SUMMARY OF:

Decision 87/369/EEC — conclusion of the International Convention on the Harmonized Commodity Description and Coding System and of the Protocol of Amendment thereto

Protocol of Amendment to the International Convention on the Harmonized Commodity Description and Coding System

WHAT IS THE AIM OF THE DECISION, THE CONVENTION AND THE PROTOCOL?

The decision confirms that the EU will apply the international convention and the protocol of amendment from 1 January 1988.

The convention aims to facilitate international trade and the collection, comparison and analysis of trade statistics by using agreed classifications.

The protocol of amendment states that the convention will enter into force on 1 January in a given year once at least 17 countries, customs or economic unions have signed it, but not before 1 January 1988.

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.

DATE OF ENTRY INTO FORCE

The convention entered into force on 1 January 1988.

BACKGROUND

The Harmonized Commodity Description and Coding System was developed by the World Customs Organization. It is used by 211 economies, of which 160 are signatories to the convention, for their customs tariffs and for collecting international trade statistics.
It contains some 5,000 commodity groups — each identified by a six-digit code — and classifies over 98% of international trade in goods.
Governments, international organisations and the private sector use the harmonized system for many other purposes, including internal taxes, trade policies, monitoring of controlled goods and freight tariffs. This makes it a universal economic language and a code for goods.
The convention is updated every 5 years. The latest version, containing 351 amendments, will come into force on 1 January 2022 (replacing the current version from 2017).

For more information, see:

The Combined Nomenclature (European Commission).

MAIN DOCUMENTS

Council Decision 87/369/EEC of 7 April 1987 concerning the conclusion of the International Convention on the Harmonized Commodity Description and Coding System and of the Protocol of Amendment thereto (OJ L 198, 20.7.1987, pp. 1-2)

International Convention on the Harmonized Commodity Description and Coding System (OJ L 198, 20.7.1987, pp. 3-10)

Protocol of Amendment to the International Convention on the Harmonized Commodity Description and Coding System (OJ L 198, 20.7.1987, pp. 11-409)

last update 17.09.2020

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