Exploratory Study on the possible Strategic Review of the Harmonized System: A Step Toward Modernization

29 October 2024

The World Customs Organization (WCO) Secretariat is releasing a report summarizing the findings of the "Exploratory Study on the Possible Strategic Review of the Harmonized System (HS)."

This study marks a critical step in evaluating the current state and long-term sustainability of the HS, which has served as the backbone of global customs classification for decades.

The HS now faces new challenges, including the rapid growth of e-commerce, increasing complexity of product lines, and diversification of users, as well as increasing demands for sustainability and climate action in trade. These shifts prompted crucial questions about whether the HS, in its current form, could continue to meet the evolving needs of its users in an effective and timely manner.

The WCO’s Exploratory Study is a response to these concerns, providing an opportunity to consider and assess how the HS can evolve and adapt to these changes while maintaining its role as a global standard. The report highlights key observations and recommendations from an in‑depth review of the HS and its related tools, offering insights into potential areas for improvement.

This study, launched two years ago, aimed to deliver an analysis of the Harmonized System's "health." Its ultimate goal was to identify enhancement opportunities and propose strategic options to ensure that the HS remains a relevant and effective tool in an evolving global trade landscape. With the world moving toward digitalization, new trade patterns, and a stronger emphasis on sustainability, the WCO recognizes the need for the HS to stay adaptable, user-friendly, and future-proof.

As an exploratory study, its focus was to promote focused discussion by giving concrete ideas to start the discussions among WCO members on the HS’s future.  In this it has succeeded as the Harmonized System Committee, Policy Commission and Council have taken up the challenge to critically examine the report to assess which findings and recommendations should be further explored or developed into specific change proposals. 

The publication of this final report marks the conclusion of the initial study but also the beginning of a new chapter in the evolution of the Harmonized System.

The final report is available here.