1. 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

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 subheading, 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
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

5. 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

6. Thank you!