Imports HS Reduction Proposal

Background Why reduce the existing coding structure? More difficult to maintain the present HS System. Difficult to ensure quality of trade data. Increase in the number of codes increases the complexity of the system and therefore more difficult to interpret and administer. Opportunity to streamline the system by investigating obsolete codes due to new technology or other reasons, and correct past oversights etc. Therefore, making it a classification that is more efficient and less cumbersome. Opportunity to remove low use codes.

YearImportsExportsPeriodYR/YR-MYR/YR-XEvents ,3951, ,919 5, %314.69%HS Adopted ,886 5, %0.56% ,324 5, %-1.17%Data Exchange ,981 5, %0.81% ,398 5, %0.14% ,051 5, %0.07% ,671 5, %0.19% ,229 5, %0.07% ,816 5, %4.04% ,913 6, %1.04% ,500 6, %1.47%Tariff Simplification ,543 6, % ,564 6, %0.02% ,486 6, %0.33% ,905 6, %0.29% ,951 6, %0.11% ,971 6, %0.06% ,026 6, %0.15% ,033 6, %0.03% HS Net Growth:36.74%8.70% ( ) HS Code Counts

Current Counts Where Tariff or SS ≠ 00 Tariff Item Level: 7,961 Statistical: 13,943 Total Active Codes: 19,032

01 Chapter Live Animals 01 Heading: Live Horses, Asses, Mules & Hinnies.10 Sub-Heading: Pure-bred breeding animals.00 Tariff Item.10 Statistical Suffix: Horses HS Import Code Structure

Effect of Tariff Level Changes 01.01Live Horses, Asses, Mules & Hinnies Initial: Pure-bred breeding animals: Horses Other Change: Pure-bred breeding animals: Legged: Horses Other Other: Horses Other

Project Phases 1)Identify Possible codes for deletion 2)Communication with stakeholders 3)Resource Identification 4)Implementation

Identify possible codes for deletion Considerations: Data Exchange WCO requests (e.g. ozone, chemical weapons, narcotics) Previous data user requests Current data user purchases Codes created for statistical processing Possible Criteria: Low Value Obselence

Communication Major stakeholders: CBSA Department of Finance Data users USBC Importers Brokers Import Associations Other Government Departments

Resources Involves: Subject Matter Officer resources Metadata staff (Concepts & Liaison) Marketing staff Possible systems implications

Implementation Possible 2012 implementation Considerations: On-going Finance/CBSA updates WCO 2012 changes