1. Imports HS Reduction Proposal

2. 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.

3. YearImportsExportsPeriodYR/YR-MYR/YR-XEvents 198716,3951,375 1988 13,919 5,7021988-1987-15.10%314.69%HS Adopted 1989 13,886 5,7341989-1988-0.24%0.56% 1990 15,324 5,6671990-198910.36%-1.17%Data Exchange 1991 14,981 5,7131991-1990-2.24%0.81% 1992 14,398 5,7211992-1991-3.89%0.14% 1993 15,051 5,7251993-19924.54%0.07% 1994 15,671 5,7361994-19934.12%0.19% 1995 16,229 5,7401995-19943.56%0.07% 1996 16,816 5,9721996-19953.62%4.04% 1997 16,913 6,0341997-19960.58%1.04% 1998 18,500 6,1231998-19979.38%1.47%Tariff Simplification 1999 18,543 6,1371999-19980.23% 2000 18,564 6,1382000-19990.11%0.02% 2001 18,486 6,1582001-2000-0.42%0.33% 2002 18,905 6,1762002-20012.27%0.29% 2003 18,951 6,1832003-20020.24%0.11% 2004 18,971 6,1872004-20030.11%0.06% 2005 19,026 6,1962005-20040.29%0.15% 2006 19,033 6,1982006-20050.04%0.03% HS Net Growth:36.74%8.70% (1988 - 2006) HS Code Counts

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

6. 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

7. Effect of Tariff Level Changes 01.01Live Horses, Asses, Mules & Hinnies Initial: 0101.10- Pure-bred breeding animals: 0101.10.00. 10- - - - - Horses 90- - - - - Other Change: 0101.10- Pure-bred breeding animals: 0101.10.10.- - - 3 Legged: 10- - - - - Horses 90- - - - - Other 0101.10.90.- - - Other: 10- - - - - Horses 90- - - - - Other

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

9. 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

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

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

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