A.P.

KOTHARI
JOINT COMMISSIONER
DIRECTORATE GENERAL OF VALUATION
MINISTRY OF FINANCE, GOVT. OF INDIA

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HS AS INTERNATIONAL
CONVENTION
 The HS convention came in to force on 1st January 1988
 It is reviewed every 4 to 6 years to reflect changes in
technology and international trade patterns
 It was amended in 1992, 1996, 2002, 2004 and 2012
addition.
 About 149 Countries have signed the convention and
are contracting parties
 About 207 countries use the HS as on December 2013.

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HS CONVENTION DETAILS
HS convention among other things
 Incorporates the HS nomenclature
 Requires that the contracting parties apply the HS for
their Customs Tariffs and Trade statistics
 Establishes the HS committee to administer the
nomenclature
 Provides for settlement of classification questions and
disputes to a secure uniform interpretation and
application of the HS
 Provides for periodic updating of the HS
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US UPDATE
 The 1st amendment was made in 1992 which was
mainly editorial and consisted of 5018 HS codes
 The 2nd update in 1996 consisted of 393 amendment
with 5113 HS codes
 3rd Up date in 2002 consisted of 374 amendment with
5224 HS codes
 4th Update 2007 consisted of 354 amendments with
5052 HS codes
 Las amendment in 2012 consisted of 222 amendment
with 5212 HS codes

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PRIOR HISTORY OF HS
 The first international statistical nomenclature was
adopted at the 2nd International Conference on
Commercial Statistic in Brussels in 1913
 The idea of having common frame work of Custom
Tariff arose during the World Economic Conference in
Geneva in 1927
 Economic Depression of 1929 paralyzed International
Trade. The League of Nations helped evolve first
International Customs nomenclature in 1931 in
Geneva. This nomenclature however, did not meet the
expectation and with the League of Nations becoming
powerless was soon replaced by the end of WW II in
1945 .
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STANDARD INTERNATIONAL TRADE
CLASSIFICATION (SITC)
 The League of Nations published “Minimum list of
commodities for International Trade Statistics” in
1938 based on the 1937 revision of the League’s
Draft Customs Nomenclature. This minimum list
required many modifications and therefore the
united nations with the help of expert consultant
drew up the 1950 edition of the United Nations
Standard International Trade Classification (SITC)

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CUSTOMS CO-OPERATION COUNCIL
(CCC)
 In 1947, thirteen Governments represented in the
Committee for European Economic Cooperation set up
a study group to examine the possibility of
establishing one or more Customs Union between the
various European Countries in accordance with GATT
principle
 1948 the study group decided to establish two
committees .
 One of the committees later became the Customs Co-
operation Council.

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BRUSSELS TARIFF
NOMENCLATURE (BTN)
 The Convention establishing the CCC came into
force on 4th November 1952
 The CCC published Brussels Tariff Nomenclature
in 1955 which was renamed Customs Co-
operations Council Nomenclature (CCCN) in 1974.
 The CCCN had 21 sections, 99 chapter and 1241
headings.

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HARMONIZED SYSETM (HS)
 The HS was largely based on CCCN. It drew
inspiration from SITC, European Community
Nomenclature, United Nations Nomenclature as
well as Canadian and Japanese Nomenclature .
 The Components were augmented to form
harmonized system which entered in to force on 1st
January 1988
 The HS nomenclature is a system of naming and
categorising objects or goods in given group for
Custom Tariff purposes

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CHANGES MADE IN HS - 2012
 Environmental and social issues of global concern are
the major feature of the HS 2012 amendments,
particularly the use of the HS as the standard for
classifying and coding goods of specific importance to
food security and the early warning data system of the
United Nations’ Food and Agriculture Organisation.
 The amendments include inter alia, improved
specifications for species from the Southern
hemisphere. These amendments will enable economic
trends in products other than those familiar to North
Atlantic consumers to be monitored.
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CHANGES MADE IN HS - 2012
 HS 2012 also features new subheadings for specific
chemicals controlled under the Rotterdam Convention and
ozone-depleting substances controlled under the Montreal
Protocol.
 Other amendment resulted from changes in international
trade patterns. These include deleting more than 40
subheadings due to the low volume of trade in specific
products, separately identifying certain commodities in
either existing or new headings, and reflecting advances in
technology where possible. Finally, a number of
amendments aim to clarify tests to ensure uniform
application of the HS Nomenclature.
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CHANGES MADE IN HS - 2012
Examples – I

 Creation of new heading 96.19 for sanitary towels

(pads) and tampons, napkins and napkin liners for
babies and similar articles, of any material.
 Earlier classified in 3926.20, 3926.90, 4818.40, 5601.10,
6108.21, 6108.22, 6108.29, 6111.20, 6111.30, 6111.90
6113.00, 6208.91, 6208.92, 6208.99, 6209.20, 6209.30,
6209.90, 6210.50, 6307.90

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CHANGES MADE IN HS - 2012
Examples – II

 Subheading 8523.40 has been subdivided into 8523.41

and 8523.49 to provide separately for unrecorded
optical media.
 Earlier classified in 8523.40,

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CHANGES MADE IN HS - 2012
Examples – III

 Heading 09.07 has been subdivided into 0907.10 and

0907.20 to provide separately for crushed or ground
cloves. Amendment adopted as a result of the FAO
proposal to enhance the monitoring of the global food
security.

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CHANGES MADE IN HS - 2012
Examples – IV

 Creation of new subheading 2009.81 for cranberry

juice.

 Earlier classified in 2009.80

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CHANGES MADE IN HS - 2012
Examples – V
 The scope of subheading 3808.50 has been expanded
to cover the products listed in new subheading Note 1
to Chapter 38. Amendments made consequential to
the Rotterdam convention on the prior informed
consent procedure (PIC) for certain hazardous
chemicals and pesticides in international trade.

 Earlier classified in 3808.91, 3808.92, 3808.93, 3808.94,

3808.99,

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