Imports HS Reduction Proposal

Background• Why reduce the existing coding structure?• More difficult to maintain the present HS System.• Difficult to ensure quality of trade data. • Increase in the number of codes increases the

complexity of the system and therefore more difficult to interpret and administer.

• Opportunity to streamline the system by investigating obsolete codes due to new technology or other reasons, and correct past oversights etc. Therefore, making it a classification that is more efficient and less cumbersome.

• Opportunity to remove low use codes.

Year Imports Exports Period YR/YR-M YR/YR-X Events

1987 16,395 1,375

1988 13,919 5,702 1988-1987 -15.10% 314.69% HS Adopted

1989 13,886 5,734 1989-1988 -0.24% 0.56%

1990 15,324 5,667 1990-1989 10.36% -1.17% Data Exchange

1991 14,981 5,713 1991-1990 -2.24% 0.81%

1992 14,398 5,721 1992-1991 -3.89% 0.14%

1993 15,051 5,725 1993-1992 4.54% 0.07%

1994 15,671 5,736 1994-1993 4.12% 0.19%

1995 16,229 5,740 1995-1994 3.56% 0.07%

1996 16,816 5,972 1996-1995 3.62% 4.04%

1997 16,913 6,034 1997-1996 0.58% 1.04%

1998 18,500 6,123 1998-1997 9.38% 1.47% Tariff Simplification

1999 18,543 6,137 1999-1998 0.23% 0.23%

2000 18,564 6,138 2000-1999 0.11% 0.02%

2001 18,486 6,158 2001-2000 -0.42% 0.33%

2002 18,905 6,176 2002-2001 2.27% 0.29%

2003 18,951 6,183 2003-2002 0.24% 0.11%

2004 18,971 6,187 2004-2003 0.11% 0.06%

2005 19,026 6,196 2005-2004 0.29% 0.15%

2006 19,033 6,198 2006-2005 0.04% 0.03%

HS Net Growth: 36.74% 8.70%

(1988 - 2006)

HS Code Counts

IMPORTS & EXPORTS

-2,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

YEAR

COUN

T

ImportsExports

HS Code Counts

Current Counts

Where Tariff or SS ≠ 00

• Tariff Item Level: 7,961

• Statistical: 13,943

• Total Active Codes: 19,032

01

Chapter

Live Animals

01

Heading:

Live Horses, Asses, Mules & Hinnies

.10

Sub-Heading:

Pure-bred breeding animals

.00

Tariff Item

.10Statistical Suffix:

Horses

HS Import Code Structure

Effect of Tariff Level Changes01.01 Live Horses, Asses, Mules & Hinnies

Initial:0101.10 - Pure-bred breeding animals:0101.10.00.

10 - - - - - Horses90 - - - - - Other

Change:0101.10 - Pure-bred breeding animals:0101.10.10. - - - 3 Legged:

10 - - - - - Horses 90 - - - - - Other

0101.10.90. - - - Other: 10 - - - - - Horses 90 - - - - - Other

Project Phases1) Identify Possible codes for deletion

2) Communication with stakeholders

3) Resource Identification

4) Implementation

Identify possible codes for deletionConsiderations:

• Data Exchange•WCO requests (e.g. ozone, chemical weapons, narcotics)•Previous data user requests•Current data user purchases•Codes created for statistical processing

Possible Criteria:

•Low Value

•Obselence

CommunicationMajor stakeholders:

•CBSA•Department of Finance•Data users•USBC•Importers•Brokers•Import Associations•Other Government Departments

ResourcesInvolves:

• Subject Matter Officer resources•Metadata staff (Concepts & Liaison)•Marketing staff•Possible systems implications

ImplementationPossible 2012 implementation

Considerations:

•On-going Finance/CBSA updates

•WCO 2012 changes