But why amend the HSN?
• Technological progress
Most of the electronic equipment today is capable of performing several functions. Take the example of a mobile phone with built-in camera and perhaps also an MP3 player or the multi-function office machine which is a printer, fax, copier and phone. As a result, the amendments include a revised definition of computers - or automatic data processing machines as they are called in the HS - to reflect that these machines are basically all digital, as well as a clarification of the classification of separately presented printers, network equipment, loudspeakers, microphones, cameras, and monitors and projectors used in conjunction with a computer. All printers, for example, have been grouped in a single heading. To give just one example, heading 85.17 will now will be as follows
85.17 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28.
instead of
Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones
as at present.
• Trade practice
Some products become obsolete in international trade whereas other merchandise becomes more important. As a general rule, headings and subheadings are deleted if the annual world trade is less than USD 100 million and 50 million, respectively. However, these thresholds do not apply for headings and subheadings covering products of social or environmental concern. To reflect this change in trade patterns, a number of headings and numerous subheadings have been deleted. On the other hand, new subheadings have been created for some varieties of cut flowers, macadamia nuts, bamboo shoots, and drinking glasses, to mention but a few.
• Necessity of uniform application
During their daily work, HS users come across terms and expressions that may be interpreted differently and thus leading to non-uniform application of the HS. Since uniform classification in the HS is one of the WCO’s main objectives, it is necessary to improve the wording whenever required. As an example, the term “assembled parquet panels” has created some difficulties in the past since there are different views on the meaning of the term “parquet” in different parts of the world. Whereas “parquet” must show a kind of mosaic pattern in one part of the world, a striped flooring would qualify as “parquet” in other parts. To avoid this confusion, the term “assembled parquet panels” has been replaced by “assembled flooring panels”.
• Social and environmental concerns
As a multi-purpose nomenclature, the HS is also used to facilitate the monitoring and control of various products of social and environmental concern. To accommodate this important issue, often at the request of other international organizations, new subheadings have been created for certain species of fish (e.g. swordfish and toothfish), hazardous chemicals covered by the Rotterdam Convention (all compounds of mercury, excluding amalgams, grouped in a new heading), mixtures containing ozone-layer depleting substances covered by the Montreal Protocol, bamboo products, and products containing asbestos.
For us in Taxindiaonline, this means, both the Customs and Excise Tariffs will be changed and with much difficulty we had put these tariffs in our Taxindiaonline’s XCuSE and we will have to redo them all over again. We will.