The East African Community updates its Common External Tariff 2022 to align with the World Customs Organization

The Harmonized Description and Coding System (HS) is a nomenclature used for the uniform classification of goods or items traded in international commerce and it classifies products by a unique numerical code.

The HS is a publication of the WCO and the 184 Member States of the WCO use it for classification of goods. The HS contains guidance (General Interpretative Rules) on how to classify goods.

The WCO undertakes reviews of the HS every five years and thus currently there is a HS 2022 in place. The East African Community (EAC) customs union transposes the HS at the regional level as the seven partner states of the EAC are Member States of the WCO.

The EAC Customs Union thus uses the EAC Common External Tariff (EACCET). The amendments to the HS normally reflect advancement in technology, changes in business patterns, concerns on food security, the need to tackle topical issues of importance, e.g., climate change, terrorism and environmental issues and, provision of clarity.

The Agricultural, food and tobacco sector had the majority of amendments at 77 followed by the machinery and chemical sectors with 63 and 58 amendments respectively. Other sectors that were amended include wood (31), textile (21), base metal (27), and transportation (22), among others.

Amendments to the HS are undertaken for different reasons including:

• Protection of society and enhancement of the fight against terrorism
• Goods specifically controlled under various International Conventions
• Food security and environment protection priorities leading to a need to keep track of cross border movement of certain goods/items
• Technological progress and innovation leading to new products
• Trade patterns monitoring
• Clarification of the HS text and goods which have raised classification controversy

Some of the new HS codes arising from splits in headings introduced across the different sectors include test kits for diagnosis of various infectious diseases to facilitate rapid deployment and placebos for medical research. Various novel products of tobacco and nicotine, three dimensional printers and drones have been specifically provided for to take into account increased trade volumes and the need to maintain trade statistics. International treaty obligations have also been considered with specific provisions made for e-waste, hazardous and other chemicals to permit easier monitoring in addition to the dual use goods e.g., detonators that may be used by terrorists, to facilitate the protection of society.

Source: Tax News