It forms the basis for Customs tariffs and statistical nomenclatures around the world and is used for around 98% of world trade.
he Harmonized System (HS) allows a world of many languages to speak with one. A multipurpose nomenclature for trade, the HS is one of the most successful instruments developed by the World Customs Organization. Its Convention has 156 Contracting Parties and the HS is used by more than 200 countries, territories and Customs or Economic Unions. It forms the basis for Customs tariffs and statistical nomenclatures around the world, and is used for around 98% of world trade. The year 2018 marks the 30thAnniversary of the HS which came into effect on 1stJanuary, 1988.
As an international standard with global application, the HS plays a key role in facilitating world trade. The HS is used as the basis for:
- Customs tariffs;
- Trade policies and quota controls;
- Collection of international trade statistics and data exchange;
- Rules of origin;
- Trade negotiations such as the WTO Information Technology Agreement and Free Trade Agreements;
- Monitoring of controlled goods, for example, chemical weapons precursors, hazardous wastes and persistent organic pollutants, ozone-depleting substances and endangered species;
- Many Customs controls and procedures, including risk assessments and profiling, electronic data input and matching and compliance activities; and Economic research and analysis..