The World Customs Organization has published the new Harmonized System list for 2022, to be followed by Local Customs Authorities worldwide. The new list will become effective on 1 January 2022, giving little time for importers and exporters to assess the impact to their businesses and update their product database.
Amendments to the 2017 HS list
The changes have affected over 1500 HS codes, most of them in Chapters 84 and 85, relating to different types of machinery and their parts. Moreover, new technologies such as smartphones, vapes and drones received specific subheadings in the updated list.
The new changes will affect mostly companies dealing with agricultural, chemical, wood, textile, metal and machinery goods. However, every company dealing goods in cross-border transactions must be ready to identify possible impacts to their database.
Implications for businesses
Importers and exporters will be required to use the new codes starting 1 January 2022. The correct use of the HS codes will lead to compliance during customs clearance, correct duty payment and use of trade agreements.
Now is the right time for companies to review and adapt their product database in preparation for the changes. This can be combined with a full review of all codes used on imports for compliance and optimization of customs processes.
For more information on this topic or to learn more about KPMG’s Trade & Customs services in the Lower Gulf, kindly contact our Trade & Customs team at KPMG.