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Customs

Exploratory Study on the Possible Strategic Review of the HS: A Step toward Modernisation

Publish Date: 
04 Nov 2024

On 29 October 2024, the World Customs Organization (WCO) Secretariat released a report summarising the findings of the “Exploratory Study on the Possible Strategic Review of the Harmonized System (HS)”.

This report marks a critical step in evaluating the current state and long-term sustainability of the HS, which has served as the backbone of global customs classification for decades.

The HS now faces new challenges, including the rapid growth of e-commerce, increasing complexity of product lines, and diversification of users, as well as increasing demands for sustainability and climate action in trade. These shifts prompted crucial questions about whether the HS, in its current form, could continue to meet the evolving needs of its users in an effective and timely manner.

The WCO’s Exploratory Study is a response to these concerns, providing an opportunity to consider and assess how the HS can evolve and adapt to these changes while maintaining its role as a global standard. The report highlights key observations and recommendations from an in‑depth review of the HS and its related tools, offering insights into potential areas for improvement.

This study, launched two years ago, aimed to analyse the HS's “health”. Its ultimate goal was to identify enhancement opportunities and propose strategic options to ensure the HS remains a relevant and effective tool in an evolving global trade landscape. With the world moving toward digitalisation, new trade patterns, and a stronger emphasis on sustainability, the WCO recognises the need for the HS to stay adaptable, user-friendly, and future-proof.

As an Exploratory Study, its focus was to promote focused discussion by giving concrete ideas to start the discussions among WCO members on the HS’s future. It has succeeded as the HS Committee (HSC), Policy Commission, and Council have taken up the challenge to critically examine the report to assess which findings and recommendations should be further explored or developed into specific change proposals.

The publication of this report marks the conclusion of the Initial study and the beginning of a new chapter on the evolution of HS.

The Final Report is accessible at:

https://www.wcoomd.org/en/topics/nomenclature/activities-and-programmes/exploratory-study-on-a-possible-strategic-review-of-the-hs.aspx

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