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

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study of the classification characteristics of goods showed illustrative examples characterizing the presence of outdated and inappropriate terms and concepts that do not correspond to modern practice, which limits the use of the texts of the items of the nomenclature.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.

Keywords

• harmonized system
• commodity nomenclature of foreign economic activity
• international trade
• classification
• goods