Page 142 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 6: Custom Clearance of Import and Export Cargo

The system is used by more than 200 countries and economies as a basis for their Customs tariffs Notes
and for the collection of international trade statistics. Over 98 % of the merchandise in international
trade is classified in terms of the HS.
The HS contributes to the harmonization of Customs and trade procedures, and the non-
documentary trade data interchange in connection with such procedures, thus reducing the costs
related to international trade.
It is also extensively used by governments, international organizations and the private sector
for many other purposes such as internal taxes, trade policies, monitoring of controlled goods,
rules of origin, freight tariffs, transport statistics, price monitoring, quota controls, compilation
of national accounts, and economic research and analysis. The HS is thus a universal economic
language and code for goods, and an indispensable tool for international trade.
The Harmonized System is governed by “The International Convention on the Harmonized
Commodity Description and Coding System”. The official interpretation of the HS is given in
the Explanatory Notes (5 volumes in English and French) published by the WCO. The Explanatory
Notes are also available online and on CD-ROM, as part of a database which groups all the
available HS Tools, by adding to the information on the Nomenclature, the Compendium of
Classification Opinions and the Explanatory Notes, the information relating to the Alphabetical
Index and the Brochure on Classification Decisions taken by the Harmonized System Committee.
The maintenance of the HS is a WCO priority. This activity includes measures to secure uniform
interpretation of the HS and its periodic updating in light of developments in technology and
changes in trade patterns. The WCO manages this process through the Harmonized System
Committee (representing the Contracting Parties to the HS Convention), which examines policy
matters, takes decisions on classification questions, settles disputes and prepares amendments
to the Explanatory Notes. The HS Committee also prepares amendments updating the HS every
5 – 6 years.

6.5 Carnets

A carnet may refer to (in international law):

A document allowing the importation of certain goods to countries without paying customs
duty. Three types exist:
ATA Carnet, for temporary importation of goods and equipment

Carnet de Passage, for motor vehicles
TIR Carnet, to simplify administrative formalities of transit commercial goods carried by
international road transport.

6.5.1 ATA Carnet

The ATA Carnet is an international Customs document that a traveller may use temporarily to
import certain goods into a country without having to engage in the Customs formalities
usually required for the importation of goods, and without having to pay duty or value-added
taxes on the goods.
The United States allows for the temporary importation of commercial samples, professional
equipment and certain advertising materials by a non-resident individual.
Carnets are a security that participating countries accept as a guarantee against the payment of
Customs duties that may become due on goods temporarily imported under a carnet and not
exported as required. “ATA” stands for the combined French and English words “Admission
Temporaire-Temporary Admission.”

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