1. ECONOMIC CLASSIFICATIONS Advanced course Day 3: first morning session Custom classifications / HS and CN
Zsófia Ercsey - KSH – Hungary
Marie-Madeleine Fuger - INSEE – France
Hans Van Hooff - CBS - Netherlands
THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

2. 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 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 subheadings, respectively in 4 and 6-digits numbers
Very precise rules to classify imports and exports:
Customs taxes
2000 pages of explanatory notes

3. 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

4. Foreign trade classification
HS is updated every 5 years to:
take into account change in consumption patterns
Introduce new products (>50 million US $)
Suppress items with low level of trade (<100 million US $)
Be fitted for monitoring specific products (for environment concerns/environmental impact, food safety and public security)
Agriculture
Chemicals
Reach a more simple HS (because of lower tax duty rates)

5. Foreign trade classification
Last revision in ⇒ HS 2017
234 amendments mainly in
agricultural sector (among which fish and wood)
Chemical and pharmaceutical sector
Better description for ICT products (smartphones, multimedia devices)
Introduction of LED lamps, hybrid vehicles

6. 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 as 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 explanatory notes
The relevant criteria for HS and CN are:
The material (substance)
The degree of transformation
The function

7. Foreign trade classification: CN2016
Birds’ eggs, in shell, fresh, preserved or cooked
- Of poultry
-- For hatching
--- Of turkeys or geese
--- Other
-- Other
- Other
Self-explanatory text
Birds’ eggs, in shell, fresh, preserved or cooked
Turkey or goose eggs for hatching
Poultry eggs for hatching (excluding turkey or goose)
Poultry eggs, in shell, fresh, preserved or cooked (excluding for hatching)
Birds’ eggs, in shell, fresh, preserved or cooked (excluding for hatching)

8. Foreign trade classification: tools and help for classifying goods
Harmonized system:
Combined nomenclature (CN):
Ramon is a very rich source of information
For the record, CN 2017:

9. CN2016: helpful links

10. Thank you!