Harmonized Tariff Systems Code Act 2023

[Istkalen]

Harmonized Tariff System Codes Act

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Proposed by Councillor-General Wesley Greene (Duxburian Union) :: Passed (7-0) 27 January 2023 :: Unamended

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Preamble:
This Act establishes a standardized, numerical product classification system to faciliate international trade.

This act does not:
-Establish or mandate any trade policies or trade zones
-Change the status of any national tariffs, taxes, duties, or other fees.
-Modify the legal or illegal status of any goods
-Require completely replacing national classification systems

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Section I: Harmonized Tariff System Codes

1. All types of goods for import and/or export from European member-states shall be classified on a Master Schedule of Goods (MSG), sorted into chapters, sections, and sub-sections.
2. Each good shall be assigned a universal 6 digit Harmonized System (HS) code number.
3. Each HS code number shall consist of 2 digits denoting its chapter, 2 digits denoting its section, and 2 digits denoting its sub-section.
   a. Member States may append additional digits to HS code numbers for internal purposes.
   b. Member States may add their own existing national classification code numbers into the MSG, to be used, referenced, and generated alongside HS code numbers.
4. It may be possible for a single type of good to have multiple valid HS code number options.
   a. Member States shall decide how multiple valid matches are to be treated within their jurisdictions.
   b. Member States shall decide how mixed derivative goods, unclassified goods, and other special/unusual circumstances are to be treated within their jurisdictions.

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Section II: European Trade Standards Organization

1. This act creates the European Trade Standards Organization (ETSO) for the purposes of operating the Harmonized Tariff System Code system. The ETSO shall:
   a. Manage HS code numbers classifications and the Master Schedule of Goods.
   b. Develop, maintain, update, host, and disseminate software and hardware for manual and automated uses of HS code numbers.
   c. Assist, educate, and train system users.
   c. Arbitrate user disputes involving HS code number classifications.

2. The European Trade Standards Organization shall be comprised of:
   a. Executive staff, appointed by the European Internal Affairs Commissioner (IAC).
   b. Classification staff, whom must be qualified legal experts
   c. Programming staff, whom must be qualified technical experts
   d. Arbitration staff, whom must be qualified legal experts

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Section III: Accessibility

1. Harmonized System code numbers shall be encodable and decodable as bar codes, QR codes, and other standard formats.
   a. Encoding and decoding devices shall support vision-impaired and hearing-impaired users
   b. Member States may use their own pre-existing equipment if it can support encoding/decoding the HS code numbers.
2. The Master Schedule of Goods and HS code numbers shall be uploadable/downloadable and/or importable/exportable to/from national customs and border control systems, shipping software, shipping manifests, tax software, and other systems of trade, using manual and automated methods.
3. HS code numbers shall be seamlessly convertable to and from major national languages and numeric systems, by automated and electronic methods where feasible.
4. The MSG, HS code numbers, and associated software shall be provided to users free of charge.

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Section IV: Implementation

1. All Member States of the European Union are required to harmonize their national law(s) with this act within 1 year from its approval by the European Council.

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