A lot of goods affected by new hs codes

We have summarised some key takeaways you need to know from the major 2022 updates to the HS codes.

The Harmonized System (HS) is used worldwide for the uniform classification of goods traded internationally. HS 2022, which is the seventh edition, will be applied from 1 January 2022. The 2022 update is a global update, as opposed to the annual, local EU updates.

The HS serves as the basis for customs tariffs and for the compilation of international trade statistics. The new HS 2022 edition makes some major changes to the Harmonized System, with a total of 351 sets of amendments covering a wide range of goods moving across borders.

 

We also have summarised some key takeaways from the updates of the HS codes below.

Altered trade patterns

To recognise evolving trade patterns, one major change is that there will be increased visibility for a number of high-profile product streams in the 2022 edition. Some examples include unmanned aerial vehicles (UAVs), commonly referred to as drones, smartphones and flat panel display modules.

Adjustments for policy-heavy goods

There will also be changes made to products that present significant policy concerns, a lack of visibility in trade statistics, as well as a high value of trade. Some examples are electrical and electronic waste, and novel tobacco and nicotine-based products.

Catching up with technological advances

Some more extensive reconfigurations have been made regarding glass fibres and articles thereof, and for metal forming machinery. These changes recognise that the current subheadings do not effectively represent technological advances in these sectors, resulting in potential classification difficulties and a lack of complete trade statistics.

Increased focus on health

Changes have been made to recognise the dangers of delays in the deployment of tools for rapid diagnosis of infectious diseases in outbreaks. This has led to alterations in the provisions for such diagnostic kits to simplify classification.

More secure borders

Safe borders are increasingly important in the protection of society and the fight against terrorism. Several new subheadings have been created for dual use goods that could be diverted for unauthorised use. Such examples might be radioactive materials and biological safety cabinets. The same applies for items required for the construction of improvised explosive devices, such as detonators.

Goods controlled under conventions

Another important update is related to goods specifically controlled under various conventions. These updates involve, for example, certain hazardous chemicals and certain persistent organic pollutants (POPs). Some changes have also been introduced to improve the monitoring and control of fentanyls and their derivatives, as well as two fentanyl precursors. Major changes have also been introduced for gases controlled under the Kigali Amendment of the Montreal Protocol.

Want to learn more? Download our overview

If you would like to get into the details of the updates to the HS codes, our overview of the sections affected by the changes is available for free download. Just enter your contact details in the form in the right column.

Also, if you have any questions, please don’t hesitate to contact us at consulting@kghcustoms.com.

 

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