· “The 1983 International Convention on the Harmonized Commodity Description and Coding System
· The 2008 Customs Code
· The 2008 Customs Tariffs and Customs Duties Law
About the Harmonized Commodity Description and Coding System
The International Convention on the Harmonized Commodity Description and Coding System was developed by the World Customs Organization and adopted in 1983. The Convention comprises of the Preamble, 20 Article and its Annex. As of April 2009, there are 137 Contracting Parties.
The Harmonized Commodity Description and Coding System, generally referred to as “Harmonized System” or simply “HS”, is a multipurpose international product nomenclature. The "Harmonized System" means the Nomenclature comprising the headings and subheadings and their related numerical codes, the Section, Chapter and Subheading Notes and the General Rules for the interpretation of the Harmonized System, set out in the Annex to The International Convention on the Harmonized Commodity Description and Coding System
The HS Nomenclature comprises about 5,000 commodity groups, each identified by a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification. While the basic system uses a 6-digit number to identify basic commodities, each country is allowed to add additional digits for statistical purposes.
The system is applied by more than 200 countries and economies (including Economic or Customs Unions) as a basis for their Customs tariffs and for the collection of international trade statistics. The system is also used for duty exemptions and reductions or non-tariff restrictions, in international trade negotiations and for conclusion of sales contracts.>
Over 98 % of the merchandise in international trade is legally classified in terms of the HS.
The maintenance of the HS is a WCO priority. This activity includes measures to secure uniform interpretation of the HS and its periodic updating in light of developments in technology and changes in trade patterns (particularly, taking into account the ratio of a particular product in the world trade, actual application practices, technological progress, new products and environment protection, etc). The WCO manages this process through the Harmonized System Committee (representing the Contracting Parties to the HS Convention), which examines policy matters, takes decisions on classification questions, settles disputes and prepares amendments to the Explanatory Notes. The HS Committee also prepares amendments updating the HS every 4 to 6 years (according to Article 16 of the HS Convention). HS had been amended 4 times, in 1992, 1996, 2002 and 2007. The 2007 version of HS is effective from 1 January 2007.
Mongolia has acceded to the HS Convention on 17 September 1991 and the Convention became effective for Mongolia since 1 January 1993.
The HS Nomenclature is currently used in Mongolia in order to develop Consolidated Tariff Nomenclature, for compilation of foreign trade statistics, application of non-tariff measures and duty exemptions, in international trade negotiations or for conclusion of sales contracts.
Information for Stakeholders
The stakeholders (persons involved in foreign trade activities) may, upon making a request to Customs, have determined the classification codes of imported goods in advance.
For pre-entry classification of imported goods, the stakeholders should:
1. apply a written request with the Customs, using the approved form;
2. to file the following documents with the Customs in order to prove the truth and accuracy of the information supplied:
- foreign trade (sales) contract;
- commercial documents;
- the Certificate of Origin;
- the Certificate of Conformity;
- the import or export permits or licenses or certificates for goods subject to non-tariff restrictions (where necessary).
Appeals against the Classification Decisions and Classification Disputes
The Stakeholders (persons involved in foreign trade activities) may appeal the classification decisions taken by the Customs according to the Article 17 of the Customs Code in the following manners:
1. in respect of a decision of State Customs Inspector, to a head of the appropriate Customs branch or a director of the Customhouse concerned;
2. when they do not agree with the decision of the head of the Customs branch or the director of the Customhouse concerned, to the appropriate Customs or an official of the next higher authority within the Customs;
3. when they do not agree with the decision of the Customs or the official of the next higher instance, to a court.
The stakeholders may appeal the classification decisions of the Customs or the Customs official concerned within 30 days after the receipt or notification of the decision.
The appeals against the classification decisions of the Customs or the Customs officials concerned should be made in written.
The appeals should have met the requirements provided for in Article 10 of the Law on Settlement of Civil Petitions or Complaints Submitted to the Public Authorities or Public Servants.
When a declarant does not agree with a classification code determined by Customs and proved the truth or accuracy of his declared code by presenting additional evidences within 45 days after the date when the code is so determined by the Customs, the Customs may re-determine the classification code on the basis of the code determined and declared by the declarant.
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