A presentation given at the Global Bamboo and Rattan Congress (BARC 2018), 25-27 June 2018.

1. The Importance and complementarity of
B&R HS Codes with B&R ISO International
standards
Presenter – Ms. Gael Grooby, Deputy Director Tariff and Trade Affairs, World Customs
Organization

2. The World Customs Organization (WCO)
Who are we? An independent Intergovernmental Organization (IGO),
we were established in 1952 as the Customs Co-operation Council. Our
mission is to enhance the effectiveness and efficiency of Customs
administrations. We represent and support 182 Customs
Administrations around the globe.
The global centre for Customs
expertise, we provide a forum
for dialogue, learning and
development and administer a
range of Conventions and other
international instruments on
Customs matters.
Most importantly for us here,
the WCO is the creator and
custodian of the International
Convention on the Harmonized
Commodity Description and
Coding System

3. The Harmonized Commodity Description
and Coding System
Commonly called the Harmonized System
or simply “the HS”

4. A (very) brief introduction to the HS
Governments (and industry) want to know what is being
traded
… but the vast variety of goods traded today makes it
impossible to create, maintain and use a list of all goods.
So the HS creates named groups into which every traded
physical good (including electricity) can be categorised.
This then enables governments to make provisions for the
accounting, treatment and consideration of the groups of
goods rather than for the individual products.

5. All goods will fit into a group represented by a four digit number.
These groups may be subdivided into smaller groups to give more
specific trade data or control.
39.15
Waste, parings and
scrap, of plastics.
3915.10
Of polymers of ethylene
3915.20
Of polymers of styrene
3915.30
Of polymers of vinyl
chloride
3915.90
Of other plastics

6. • Groups and subgroups may be very specific,
85.08 Vacuum cleaners.
- With self-contained electric motor :
8502.10 - - Of a power not exceeding 1,500 W and
having a dust bag or other receptacle capacity
not exceeding 20 l
• Or very broad.
81.11 Manganese and articles thereof, including waste and
scrap.

7. • ALL products are classified in the HS, but some are invisible as
individual product types, for example:
85.09 Electro-mechanical domestic appliances, with self-
contained electric motor, other than vacuum cleaners of
heading 85.08
8509.80 - Other appliances
8509.80 covers a wide range of products such as electric
toothbrushes, kitchen waste disposal units and air humidifiers, but
all of these diverse goods are treated as one category.

8. International Standards and HS codes
International Standards and the HS share some common aims and
values. Both seek to:
• create a standard and harmonized understanding of goods
between countries; and
• provide a language which can identify like goods globally.
If two trading parties refer to a good as a product meeting a
particular ISO standard or as belonging to a particular HS
classification, then there is an understanding of a number of the
characteristics and features of the good.

9. Working together
•Both standards and the HS seek to define
goods.
•Standards define a good by its technical
characteristics
•The HS seeks to define a good by
categorising it under particular “terms”, for
example “plywood, veneered panels and
similar laminated wood”.

10. Definition of terms in the HS
In establishing the meaning of terms within the HS there are three
common methods used by legal systems.
• Terms defined by legal Note in the HS: these have a fixed
and legally binding meaning within the HS. These cannot be
changed by individual countries.
• Terms clarified by the Harmonized System Explanatory
Notes (HSEN): explain the intended meaning and scope of the
provisions and are usually given weight (although not legally
binding in most countries).
• Other terms: these are taken to carry their common meaning:
unless a universal trade meaning can be clearly established.

11. Working together
• Establishing a universal trade meaning
The definition of a term in an accepted international standard is often
used to provide evidence of a trade meaning when looking at the HS.
• Referenced in the HSEN to establish common test methods
The Harmonized System Explanatory Notes will often reference
standards to enable consistent decisions. For example:
“To avoid discrepancies which can result from the use of different methods, it is highly
desirable that all administrations use the International Organization for Standardization (ISO)
test methods to determine the physical properties of paper and paperboard of Chapter 48.
Whenever the following analytical and physical criteria are mentioned throughout this Chapter,
the ISO Standards listed below should be used :”
- General Explanatory Note to Chapter
48

12. Working together (cont.)
• Reference in the legal texts of the HS
For a very few goods, a standard will be referenced directly in
legal definitions. For example:
Chapter 27 Subheading Note 4
4.- For the purposes of subheading 2710.12, “light oils and
preparations” are those of which 90 % or more by volume
(including losses) distil at 210 °C according to the
ISO 3405 method (equivalent to the ASTM D 86 method).

13. When it goes wrong …
How can standards definitions cause problems in relation to classification in
the HS?
Different definitions
• Domestic (national) standards that provide a definition that diverges from
international standards or practice can cause classification disputes on an
international level.
• If any standard defines a term differently from a legal definition in the HS, this
definition can not be used for classification purposes and importers attempting
to do so can be faced with legal penalties.
Over-reliance
• Reliance by traders on standards to determine if their goods fall under a term in
the tariff that is not legally defined can also pose a risk, especially definitions
that narrow or broaden the common meaning of a term can also find
themselves facing penalties if this is not the view of the administration or courts.

14. Synergy – creating a better outcome
for industry
An optimal outcome is achieved when:
• Code development in one informs the other – if a type of commodity
requires an HS code, then it is important to trade and the need for a
standard should be considered and likewise if it is important enough
for a standard, then HS placement should be considered;
• for the same terms, HS and standards have definitions with the same
scope;
• where necessary divergences of coverage occur, the divergences are
clear and acknowledged; and
• people and organizations involved in standards development and
trade regulation, including HS development, share information and
their understanding of goods of mutual interest.