Learn about the 2022 Harmonize System updates and how to stay compliant.
The World Customs Organization (WCO) releases an amended version of the Harmonized System (HS) every five years, and countries update their own codes within the year of the update. January 2022 marks the latest five-year update. The Harmonized System has begun rolling out amendments in January 2022, and as a retailer or anyone involved in global trade, you must be aware of the changes you need to make regarding international sales and imports.
This guide gives an overview of the changes, who is affected, HS compliance tips, and links to helpful resources.
Changes include approximately 350 sets of amendments to the existing HS Nomenclature (2017 version). Some of the categories relevant to ecommerce that are affected include textiles, machinery, articles of metal, articles of wood, and plastics.
If you ship products within any of the impacted chapters discussed above, the HS updates are likely to affect you. You could become noncompliant with local standards, possibly resulting in miscalculated duties, import delays, or fines.
On a higher level, these are the industries most impacted by the 2022 WCO updates:
Although the recipient is technically responsible for the correct HS code being applied to the goods in the shipment, it is best practice for you as the exporter to ensure the HS code accuracy. Otherwise, the consequences of an outdated HS code (rejected or held shipment, fines incurred, etc.) will cause a negative customer experience and reflect badly on you as the seller. Therefore, always assume the responsibility of accurately classifying your goods as yours, and do everything you can to stay compliant.
Here are some tips for HS code compliance:
Keeps all data current
Classify’s database houses up-to-date tariff data sourced by our in-house team of global trade experts. Classify will actively consume and map affected HS codes to the updated codes as they become available, and will continue to update them throughout the year as countries publish their changes.
Classify product update
The new Zonos Dashboard tools for Classify help with classification through the following features:
Classify has upcoming features to further help with automating your classifications, including the Dashboard Catalog [in Zonos Dashboard]. This will allow you to automatically stay up to date with HS codes because Classify will identify the affected products in your catalog, stage the products with updated HS codes, and update them with the new codes when they become effective. Additionally, Dashboard Catalog will also identify products in your catalog that have expired HS codes and will automatically update them to the new codes.
Can Classify manage all of these changes for me?
For now, you will have to track and map your products that are changing on your own. We will have a doc that will stay up to date with countries that have updated recently as well as a subscription to get email alerts each month with countries that have updated. That way you will know when to update your HS codes.