The Harmonized System facing technological innovations
The private sector continues to innovate, so the work to amend the Harmonized System never ends. To illustrate this phenomenon, we will use the example of the evolution of lighting technologies and the consequent adaptations of the HS.
Starting point
Every five years, at the global level, there is a revision cycle of the HS leading to amendments. Any contracting party to the HS can propose an amendment, these proposals often come from requests from the innovative industry sector. In this case, the U.S. lighting industry proposed an amendment to the HS Committee in 2012 when LED products first appeared. It took a few years to fully understand and adapt the HS to this new product. Indeed, the invention of blue LEDs paved the way for several other technological advances such as the screens of cell phones, computers, televisions, tablets etc.
The reflection on the amendments
It was found that lamps were classified under heading 85.39, covering “electric filament or discharge lamps and tubes, including articles known as headlamps and sealed beam projectors and ultraviolet or infrared lamps and tubes; arc lamps.”
85.39 does not cover LEDs, and prior to this revision, most jurisdictions classified LEDs under 85.43, covering “machinery and mechanical appliances having a function of their own, not specified or included elsewhere in this Chapter. “
In April 2012, the subcommittee considered two proposed amendments, the EU’s and South Korea’s, based on the positions cited above. The debate to decide between the two focused on the clarifications towards OLED and PHOLED technology products. The debate finally tipped in favor of Korea’s proposal.
The HS amendment work continues, with the US, EU and Japan submitting draft amendments for new LED products. The Subcommittee will aim to clarify their classification for the 2022 version of the HS.
This illustrates the challenge of the HS revision cycle. This work is necessary for the customs community and international trade actors to rely on the HS nomenclature to ensure smooth trade flows and consistent customs measures.
