Every five years the World Customs Organization (WCO) updates the Harmonized Commodity Description and Coding System (HS Tariff). These updates are intended to ensure that the HS stays up to date in light of new technology and provides visibility into new product streams and emerging global issues. The amendments will take effect on January 1, 2022, when the seventh edition of the HS (commonly referred to as HS 2022) enters into force.
The HS 2022 will see some major changes, comprised of 351 sets of amendments, covering a wide range of goods. The key factors driving the HS 2022 amendments include:
- advances in technology;
- new product streams;
- changing trade patterns;
- environment considerations;
- health and safety;
- the fight against terrorism; and
- facilitating implementation of various international Conventions.
The changes to the HS tariff will be implemented by all 158 member countries of the WCO. The amendments are technical in nature and do not involve any changes in tariff policy. For Canada, these changes are rate neutral and revenue neutral.
The changes to the 2022 HS may be either:
- One to One: One HS changes to another, or
- One to Many: Some products under one HS change to a new HS.
All importers should review the concordance tables to determine if any of your goods may be affected and work with your Customs Broker to ensure the applicable changes are implemented for 2022.
For more information, or to find out how Universal Logistics can assist with this project on your behalf, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.