What is the Harmonized System?
The Harmonized Commodity Description and Coding Systems generally referred to as "Harmonized System" or simply "HS" is a multipurpose international product nomenclature developed by the World Customs Organization (WCO).
It comprises about 5,000 commodity groups; each identified by a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification. The system is used by more than 200 countries and economies as a basis for their Customs tariffs and for the collection of international trade statistics. Over 98 % of the merchandise in international trade is classified in terms of HS.
The Harmonized System is governed by "The International Convention on the Harmonized Commodity Description and Coding System" (HS Convention). The official interpretation of HS is given in the Explanatory Notes (5 volumes in English and French) published by WCO. The Explanatory Notes are also available on CD-ROM, as part of a commodity database giving the HS classification of more than 200,000 commodities actually traded internationally.
The maintenance of HS is a WCO priority. This activity includes measures to secure uniform interpretation of the HS and its periodic updating in light of developments in technology and changes in trade patterns. WCO manages this process through the Harmonized System Committee (representing the Contracting Parties to the HS Convention), which examines policy matters, takes decisions on classification questions, settles disputes and prepares amendments to the Explanatory Notes. The HS Committee also prepares amendments updating HS every 5 – 6 years.
Thai Customs & HS Convention
The current Customs Tariff of Thailand is based on the WCO’s HS Convention. In implementing its obligations under the WCO HS Convention, Thailand adopted and incorporated into its national tariff system the “core” Harmonized System. The harmonized tariff schedule of Thailand is enforced under the Customs Tariff Decree B.E. 2530 that came into force on 1 January 1988. It replaced the Customs Co-operation Council Nomenclature (CCCN) which had been adopted since 1960.
Tariff Structure Of Thailand
In adopting and incorporating the HS, the legal text of the Customs Tariff Decree B.E. 2530 consists of:
- General Rules for the Interpretation of the Nomenclature
- Import Tariff
- Export Tariff
- Goods Exempted from Payment of Duty
Under the HS, all product categories are set out in 21 sections and 96 chapters. As one of the ASEAN member countries, Thailand has adopted the Protocol Governing the Implementation of the ASEAN Harmonized Tariff Nomenclature (the AHTN Protocol) to harmonize the tariff nomenclature at the eight-digit level. It adheres to the six-digit commodity classification code of the HS Code of WCO but adds two digits or level codes that represent ASEAN subheadings. Thailand has applied the AHTN 2007/1 for both intra-extra ASEAN trade since 1 January 2007.
To know more about the countries applying HS, Click here.
To know more about the position of the contracting parties to HS, Click here.