The session organized by Luis Oña-Garcés of Ecuador brought together members to discuss environmental measures implemented at borders, going beyond the standard Harmonized System (HS) codes. Delegations shared experiences and addressed key questions regarding tariff classification and additional categories used for environmental purposes.
The European Union presented its approach to tracking trade in products regulated by fluorinated greenhouse gases, ozone-depleting substances, and deforestation. By using the EU TARIC databases, they identify specific products beyond 6-digit HS codes, enhancing customs operations' traceability and efficiency. The EU suggested that the World Customs Organization (WCO) improve green technology classification through refined definitions and international collaboration.
The United Kingdom emphasized the importance of collaboration between trade and customs to overcome HS limitations. They highlighted challenges in differentiating production processes or end-use for environmental products and proposed national tariff lines as alternatives to HS amendments. A case study on textiles recycling revealed difficulties due to imprecise HS code categories.
The Dominican Republic reported success in integrating Multilateral Environmental Agreements into its customs tariff system with further subdivisions beyond HS codes. This initiative includes a Green Customs Department for interagency coordination. Challenges such as outdated legal frameworks were noted, emphasizing technology-driven regulation and staff training.
Jamaica discussed efforts in enforcing policies on plastics pollution, hazardous waste treatment, disposal, and renewable energy development through customs policy. However, challenges remain due to insufficient stakeholder knowledge of MEAs and lack of coordination among institutions.
The HS is an international product nomenclature developed by the WCO with over 5,000 commodity groups identified by six-digit codes. Used by 212 economies for customs tariffs and trade statistics collection, it classifies over 98% of international merchandise trade.
A thematic session on Greening the HS was held in June 2024, discussing potential amendments from organizations like the Food and Agriculture Organization. Nicola Waterfield of Canada noted that presentations offered insights into challenges beyond the HS for implementing environmental policies while highlighting crossovers with transparency efforts in import/export restrictions.
The WTO Secretariat will prepare a factual summary report based on information shared during this session.