Nov
29

World Trade Organization Versus World Customs Organization Controversy in Matters of Jurisdiction and Interpretations

The Harmonized System Each and every customs-clearing agent as well as every one who deals with for matters related to Customs is well acquainted with the Harmonized System. It is an intricate cataloging system, divided to parts, chapters, headings and sub-headings, enabling the allocation of a catalogue number for a given product. Alongside the detailed structure, the Harmonized System includes also a system of classification instructions. The Harmonized System was developed by the World Customs Organization (WCO) and was published within the framework of a treaty prepared for that purpose in 1983 in Brussels. Its roots are quite old and reach up to the nomenclature of Geneva of 1937. It is a success story: as per the figures of the World Customs Organization, not less than 177 countries and economic regimes apply the Harmonized system within the framework of the Customs Tariffs and their foreign trade s toro lawnmowers tatistics, and 98% of the total international trade in goods make use of the classification codes of the Harmonized System. Thus, the Customs Tariff of the State of Israel as well as the European, the American and others, are built according to the Harmonized System and alongside each and every classification code (“Customs Item”), the customs rate applicable is stated on goods classified in that classification item. The Dispute between Brazil and Thailand opposite the European Community In 2002 a trade dispute became apparent between Brazil and the European Community, to which Thailand joined in 2003, alongside Brazil. Thailand and Brazil are significant exporters of frozen boneless chicken cuts to the European Community. During the years 1996 2000 the chicken cuts were classified under Customs item 02.10.90.20 of the European Customs Tariff, and were charged with customs in the rate of 15.4% ad valorem.

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