The CN constitutes the basis for customs declaration of goods and is also used for excise duties, VAT, and intrastate purposes. The CN determines the tariff code and the rate of customs duties that applies to a particular product. This new version of the CN reflects the latest changes to the Harmonized System Nomenclature (HSN2022), following the recommendation of the Customs Cooperation Council of 28 June 2019, and includes some interesting new features for businesses active in global markets.
The new HSN2022 updates several customs headings, aligning them with the technological evolution of goods and better responding to market needs.
As reported on the World Customs Organization website, Harmonized System 2022 will feature 351 changes to allow identification of new types of products traded globally, as well as monitoring of products of social and environmental concern, which are priorities in international trade. For example, the new edition will include ad hoc codes for electrical and electronic waste, new tobacco and nicotine products, unmanned aerial vehicles (UAVs), flat panel display modules, and diagnostic kits. It will also contain changes to codes VD 70.19 on glass fibers and glass items and VD 84.62 on metal-forming machinery. The aim is to adapt the system to respond to technological advances, as well as to offer specific codes for chemicals and dual-use goods that have potential for unauthorized use. These include certain radioactive materials, biological safety cabinets, and articles used to make improvised explosive devices, such as detonators.
With reference to transactions as of January 1, 2022, the HSN2022 update requires companies to identify new codes or codes whose content has been changed by the European Commission. To make it easier for companies to identify such new and modified codes, the European Commission has placed an asterisk next to the new codes on the list and a square next to codes that existed previously but now encompass different products in their classification than they did previously.