Preview

Administrative Consulting

Advanced search

Harmonized Commodity Description and Coding System as the Basis of Commodity Nomenclature of Foreign Economic Activity of EAEU: Problems and Future Focus

https://doi.org/10.22394/1726-1139-2022-1-84-102

Abstract

The article presents the results of a study of the problems of using the Harmonized System (HS) for Description and Coding of Goods as the main element of the Commodity Nomenclature of Foreign Economic Activity (CN FEA) of the EAEU. Given the global nature of the nomenclature, the author focuses on the practical features of using the system in international trade and customs purposes. Based on the analysis of literary sources, the author highlighted the main problems of using the HS and CN FEA of the EAEU. In the work, quantitative and qualitative research methods were used: a comparative semantic analysis of the use of a product name allowed the author to identify difficulties in application and incomplete compliance with the requirements of international trade. An empirical study of the classification characteristics of goods showed illustrative examples characterizing the presence of outdated and inappropriate terms and concepts that do not correspond to modern practice, which limits the use of the texts of the items of the nomenclature. The investigated compliance of the classification characteristics of goods used in the HS and CN FEA of the EAEU showed a lack of uniformity between the identification criteria and marking information in technical regulations, in terms of use for the purposes of compliance with prohibitions and restrictions. The structural analysis of the HS and CN FEA of the EAEU showed examples of the lack of structural uniformity in the assignment of goods made of the same material.
The study of the possibility of using the HS and CN FEA of the EAEU for search queries showed restrictions on their use for automatically determining the product code. Based on the totality of the study, the author has shown the discrepancy between the HS and CN FEA of the EAEU with the modern requirements of international trade in terms of the application of concepts, classification signs, systematization and the growing need for a radical revision of the HS.

About the Author

G. Yu. Fedotova
Russian Presidential Academy of National Economy and Public Administration (North-West Institute of Management, Branch of RANEPA)
Russian Federation

Galina Yu. Fedotova, Associate Professor of the Chair of Customs Administration, PhD in Technical Science, Associate Professor 

Saint Petersburg



References

1. Algazina A. F. Current problems of customs classification (using the example of the Commodity Nomenclature of foreign economic activity of the Eurasian Economic Union) // Enforcement [Pravoprimenenie]. 2019. V. 3. N 1. P. 72–78. (in Rus)

2. Alekseeva N. N. Analysis of judicial practice on challenging the legality of decisions of customs authorities on the classification of goods according to the EAEU TN VED // Russian customs policy in the Far East [amozhennaya politika Rossii na Dal’nem Vostoke]. 2018. N 3 (84). P. 5–17. (in Rus)

3. Andreeva E. I., Govorov V. V. Methodological provision of customs control of the correctness of classification of goods in modern conditions // Bulletin of the Russian Customs Academy [Vestnik Rossiiskoi tamozhennoi akademii]. 2019. N 3. P. 69–77. (in Rus)

4. Andreeva E. I., Epov A. E. Problems of terminology in customs practice // Russian Foreign Economic Journal [Rossiiskii vneshneekonomicheskii vestnik]. 2018. N 2. P. 53–61. (in Rus)

5. Vorotyntseva T. M., Krasilnikova E. V., Karaulova A. N. Harmonization of terminology as the basis for the unambiguous classification of goods for customs purposes // Bulletin of the Russian Customs Academy [Vestnik Rossiiskoi tamozhennoi akademii]. 2013. N 2. P. 58–64. (in Rus)

6. Gladkov A. R. Mechanism for the formation of a preliminary solution for the purposes of customs control // Bulletin of the Russian Customs Academy [Vestnik Rossiiskoi tamozhennoi akademii]. 2018. N 4. P. 110–117. (in Rus)

7. Dianova V. Yu. The role of customs is control or service? // Customs regulation. Customs control [Tamozhennoe regulirovanie. Tamozhennyi kontrol’]. 2011. N 6. P. 54–59. (in Rus)

8. Osenniy A. S., Lebedev A. I. Trends in international trade // International economy [Mezhdunarodnaya ekonomika]. 2017. N 2. P. 48–56. (in Rus)

9. Sidorov A. A. Harmonized system of description and coding of goods: evolution and modern problems // Social and humanities sciences: Domestic and foreign literature [Sotsial’nye i gumanitarnye nauki: Otechestvennaya i zarubezhnaya literature]. Ser. 2, Economics: Abstract Journal. 2019. N 1. P. 43–48. (in Rus)

10. Fedotova G.Yu., Fedotova V. M. On the importance of accurate translation of the nomenclature of the harmonized system of description and coding of goods of the World Customs Organization // Customs readings–2017. Modern science and education on the guard of economic interests of the Russian Federation: a collection of materials from the All-Russian Scientific and Practical Conference with international participation: In 3 vols. 2017. P. 173–178. (in Rus)

11. Fedotova G. Yu. Topical problems of describing goods for customs purposes // Scientific works of the North-West Institute of Management of the RANEPA [Nauchnye trudy Severo-Zapadnogo instituta upravleniya RANKhiGS]. 2018. V. 9. N 3 (35). P. 298–304. (in Rus)

12. Fedotova G. Yu. Preliminary decisions on the classification of goods as a result of the performance of the state function of the customs authorities of the Russian Federation // Theory and practice of the management of state functions and services. Tariff regulation: a collection of scientific works based on the results of the IV national scientific and practical conference. St. Petersburg, 2021. P. 167–173. (in Rus)

13. Fedotova G. Yu. Topical issues of commodity classification management in the EAEU // Modern management: problems and prospects. A collection of articles based on the results of the XVI international scientific and practical conference. St. Petersburg, 2021. P. 869–874. (in Rus)

14. Fedotova G. Yu. Uniform interpretation of commodity nomenclature as the basis for regulation of international trade // Administrative consulting [Upravlencheskoe konsul’tirovanie]. 2020. N 2 (134). P. 67–79. (in Rus)

15. Fedotova G. Yu. Study of the effect of functional dependence of classification features on foreign economic activity // Scientific works of the North-Western Institute of Management of the RANEPA [Nauchnye trudy Severo-Zapadnogo instituta upravleniya RANKhiGS]. 2019. V. 10. N 3 (40). P. 42–52. (in Rus)

16. Frolova N. S. Modern trends in the development of international trade in the context of globalization [Electronic resource] // Online journal “Science” [Internet-zhurnal «Naukovedenie»]. 2017. N 3 (40). URL: https://elibrary.ru/download/elibrary_29901550_34503304.pdf (case date: 27.12.2021). (in Rus)

17. Altaheri F., Shaalan K. Lecture Exploring machine learning models to predict harmonized system code Notes in Business Information Processing // 381 LNBIP. 2020. P. 291–303.

18. Chen Shu-Chien. In the name of legal certainty? Comparison of advanced ruling system for tariff classification in the European Union, China and Taiwan // World Customs Journal. 2016. Vol. 10. N 2. P. 47–64.

19. Cho Jeong Cheol. Overview of the Korean Classification Regime and Notable Matters (Part I) // Global Trade and Customs Journal. 2018. Vol. 13. Is. 2. P. 75–77.

20. Drobot E. V., Klevleeva A. R., Afonin P. N., Gamidullaev S. N. Risk management in customs control Economy of Region, 2017 [Электронный ресурс]. URL: https://www.scopus.com/record/display.uri?eid=2-s2.0-85021179700&origin=resultslist&zone=contextBox (дата обращения: 27.12.2021).

21. Ding L., Fan Z., Chen D. Auto-categorization of HS code using background net approach // Procedia Computer Science. 2015. N 60 (1), P. 1462–1471.

22. Danilo Desiderio. Data analysis techniques for enhancing the performance of customs // World Customs Journal. Vol. 13. N 2 (September 2019). P. 17–23.

23. Dulguerova E., Rodríguez E. V. Blues at the Border: The Quest for Uniform Tariff Classification in the European Union // Global Trade and Customs Journal. 2013. Is. 11. P. 368–381.

24. Indrajit Siddhant, Srivastava Garima. The Solace of the Residuary Category: The Need to Change an Age-Old Classification Regime in India // Global Trade and Customs Journal. 2020. Vol. 15. Is. 8. P. 406–411.

25. Foltmar Jan (2007). The Saga of the Customs Classification of the Sony PlayStation in the European Community // Global Trade and Customs Journal. Vol. 2. Pp. 311–318.

26. Grayston John. The Panel Report on Tariff Treatment of Certain Information Technology Products: Classification Is the Key to Effective Implementation // Global Trade and Customs Journal. 2011. Vol. 6. Is. 3. P. 149–155.

27. Kanters Leon. Friday the 13th or, How to Classify ‘Parts and Accessories’ in the European Union // Global Trade and Customs Journal. 2014. Vol. 9. Is. 6. Pp. 280–282.

28. Kuplewatzky N. The Divergence in Theoretical and Practical Use of Combined Nomenclature Explanatory Notes and Tariff Classification Regulations in the EU // Global Trade and Customs Journal. 2012. Vol. 7. Is. 11/12. P. 454–460.

29. Li Y., Ma Z., Xie W., Laing C. Inspection-oriented coding service based on machine learning and semantics mining // Expert Systems with Applications. 2006. N 31 (4). P. 835–848.

30. Makarenko A. Components of procedure for adoption of preliminary decisions on classification of goods according to UCDACS // Customs Scientific Journal. 2019. N 1. P. 43–50.

31. Marx A. The ITA II: Successful Trade Liberalization // Global Trade and Customs Journal. 2015. Vol. 10. Is. 10. P. 346–354.

32. Harsani P., Suhendra A., Wulandari L., WahyuCaturWibowo. A study using machine learning with Ngram model in harmonized system classification // J. Adv. Res. Dyn. Control Syst. 2020. N 12, Special Is. 6. P. 145–153.

33. Rovetta Davide. Tariff Classification Regulations in the EC: Legal Remedies and Concurrent Jurisdiction // Global Trade and Customs Journal. 2006. Vol. 1. Is. 2. P. 101–106.

34. Smiszek M. R. The Loneliest Rule: A Practical Examination of GIR 4, the Harmonized System’s Least Frequently Applied Interpretive Rule // Global Trade and Customs Journal. 2020. Vol. 15. Is. 6. P. 295–307.

35. Voytov S. G. Commodities clasification as an instrument of customs-tariff regulation: The aspect of definition and control // Actual Problems of Economics. 2013. Vol. 147 (9). P. 42–48.

36. Weerth C. HS 2002–HS 2017: Notes of the tariff nomenclature and the additional notes of the EU revisited // World customs journal. Vol. 11. N 1, march 2017. P. 49–68.

37. Weerth C. Basic Principles of Customs Classifications under the Harmonized System // Global Trade Customs Journal. 2008. Vol. 3. Is. 2. P. 61–67.

38. Xin Zhou. Data mining in customs risk detection with cost-sensitive classification // World customs Journal. Vol. 13. N 2 (September 2019). P. 115–131.


Review

For citations:


Fedotova G.Yu. Harmonized Commodity Description and Coding System as the Basis of Commodity Nomenclature of Foreign Economic Activity of EAEU: Problems and Future Focus. Administrative Consulting. 2022;(1):84-102. (In Russ.) https://doi.org/10.22394/1726-1139-2022-1-84-102

Views: 1466


ISSN 1726-1139 (Print)
ISSN 1816-8590 (Online)