ECONOMIC CLASSIFICATIONS Advanced course Day 3 – first afternoon session Custom classifications Marie-Madeleine Fuger INSEE – France Gheorghe Constantinescu INSSE -Romania Bucarest, 12–15 November 2013

Foreign trade classification Harmonized System (HS) Since 1988, revision every 5 years Classification built and managed by the WCO (World Customs Organization) Only commodities (transportable goods) A little more than 5 000 products grouped into 21 sections and 97 chapters 4 levels The sections are coded in roman numerals The chapters in 2-digits numbers (01 – 97) Headings and subheading, respectively in 4 and 6-digits numbers Very precise rules to classify imports and exports: Customs taxes 2000 pages of explanatory notes

Foreign trade classification Harmonized System (HS): Focus at the rules Rule 1 :titles of sections, Chapters and sub‑Chapters are provided for ease of reference only Rule 2: Incomplete or unfinished articles; Articles presented unassembled or disassembled Rule 3: classification of goods classifiable under two or more headings Rule 4: classification of goods when rules 1 to 3 are useless Rule 5: Packing materials and packing containers Rule 6: classification of goods within the subheading

Foreign trade classification Harmonized System (HS): Amendments of HS 2012 220 amendments divised into: agricultural sector 98; chemical sector 27; paper sector 9; textile sector 14; base metal sector 5; machinery sector 30; other sectors 37

Foreign trade classification Combined nomenclature (CN) Strictly linked to HS + details About 14,400 headings (of which about 9,300 CN subheadings) organized in five hierarchical levels Same rules than HS + some specific notes Updated each year Used for Foreign trade statistics Custom duty purposes Classification rules the General Rules for the Interpretation of the Harmonized System the Section and Chapter explantory notes The relevant criteria for HS and CN are : The material (substance) The degree of transformation The function

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