INF/MSME/P/3  
 
17 June 2022 
(22-4719) Page: 1/27 
  Original: English  
 
INFORMAL WORKING GROUP ON MSMES  
SIMPLIFIED DUTY COLLECTION CONCEPT FOR LOW VALUE B/C2C IMPORTS:   
POSSIBLE PROCESS ASPECTS  
The following communication , dated 17 June 2022, is  being circulated at the request of the 
Coordinator of the Informal Working Group on MSMEs . 
 
_______________  
 
 
The information reproduced in Annex was provided  by the Global Express Association . This document 
is circulated for information only.  
 
__________ _____  
 
  INF/MSME/P/3  
 
- 2 - 
 
ANNEX  
 
 
 
SIMPLIFIED DUTY COLLECTION CONCEPT FOR LOW VALUE B/C2C IMPORTS:  
 
POSSIBLE PROCESS ASPECTS  
 
 
Foreword  
 
This paper should be read in conjunction with the GEA’s “Proposal on Tax/Duty Collection on Low  
Value Shipments ” (September 2020).  
 
Specifically, it refers to ‘Option 2 – Simplified Duty Collection’ in said proposal, which has in mind  
countries whose primary charges at the border are customs duties. GEA’s proposal contemplates  
two additional options to simplify the assessment a nd collection of revenue on low -value imports:  
Option 1 – A Flat Rate; and Option 3 – Simplified VAT/GST Collection, for countries with a focus on  
consumption taxes. GEA intends to take a deeper look into those options by means of future,  
separate papers. This one refers to Option 2 exclusively.  
 
Option 2 contemplates a simplified duty structure for low -value imports . It draws inspiration from  
the Canadian ‘General Harmonized System 2012’, which groups all imports under 500 CAD into three  
duty bands  or ‘buckets’.  
 
Should a country wish to adopt this approach and group headings for low -value imports into a few  
duty bands or ‘buckets’ (not necessarily three), it will need a method to generate them.  
 
This paper looks into one possible method to generate  such duty -bands. It starts with the  
Harmonized System’s 5,400 six -digit codes. It then eliminates some as not eligible and suggests ways  
to group the remaining ones into duty bands.  
 
The aim is to generate a public discussion and trials or pilots of this idea, in order to fine -tune it.  
 
Comments, suggestions and criticism are welcome. Please address them to info@global -express.org . 
 
 
 
 
Geneva, July 2021  
 
 
 
 
INF/MSME/P/3  
 
- 3 - 
   
 
   Simplified Duty Collection Concept for Low Value B/C2C Imports: Possible Process Aspects  
 
The proposed duty collection system is based on the vendor -collect revenue collection model  
whereby the seller/marketplace/platform in the originating (foreign) country of sale collects the 
duty on behalf of the cou ntry of consumption/destination.  
 
1. The seller/marketplace/platform will be required to have a registration number recognized  
by the destination country.  This can be achieved either through a simple and convenient 
registration process in the country of destination. There should be no requirement in  
particular for micro, small and medium sized sellers to establish a legal or fiscal  
representation  in destination  countries as  this create s non-tariff  barriers.  
2. At the time of the sale , the seller/marketplace/platform will query the database (see 
point  2 below) real -time through an API, identify the applicable duty rate, apply the 
applicable  exchange  rate and calculate  the full landed  cost to the buyer.  
3. The seller/marketplace/platform may/should provide the commercial details about the  
transaction (commodity description, quantity, price paid, etc.) to the authorities at  
destination.  
4. The seller/marketplace/platform will remit the duties , preferably  on a periodic basis, 
directly  to the authorities in the country of destination with reference to the registration 
number and  the transactions.  
5. During the import clearance process the loop will b e closed by including the registration  
number of the overseas vendor in the simplified goods declaration applicable for this  
process. Authorities may also require a commercial invoice to be available which gives 
acces s to relevant  reference  data  of the underlying  purchase.  
6. The compliance and enforcement of this duty collection system should be based on  
cooperation and information exchange between Customs authorities using mutual  
administrative  assistance  arrangements  in place . 
 
What will governments have to do to establish such a system in their country? The GEA has built a  
simulation modeler to enable countries to dry run scenarios.  
 
 Step 1: Determine your criteria:  
Where it is necessary to collect duties, each government would have to d etermine the criteria that  
would be applicable to a duty collection system, including:  
- two value thresholds, e.g. an upper one of 1,000 SDR as per WCO Immediate Release  
Guidelines and a lower one ( de minimis , where applicable).  
- Identify the scope and the list of excluded goods, e.g. prohibited and restricted items, items  
subject to excise duties, etc.  
- Any other parameters that the government requires to be followed in this program.  
After this step, a country will have defined the  scope of its low -value import simplification process.  
The next step will be to group the goods into duty bands to enable import automation and  
transparency.  
 
Step 2: Determine your duty rate bands.  
Based on the scope of the import simplification program d efined in Step 1, governments should  
review and analyse the corresponding applied MFN  duty rates as contained in their national tariff  
schedule and identify duty rate bands around which goods converge. Depending on the goods and  
the variation of applied du ty rates this could inform the number of duty rate bands for this country,  
preferably not more than three.  
 
Country example: The Canadian government has identified three duty rate bands with 20%, 8% 
and 0%. INF/MSME/P/3  
 
- 4 - 
 
 
 
Step 3: Assign goods/ goods groups into the duty rate bands  
This simplified duty collection system is based on a simplified classification standard (see proposed  
international standard below). Governments should be using the proposed international standard of  
headings for goods and groups of goods i n order to come up with a simplified classification scheme  
that corresponds with the simplified duty collection system. Based on the analysis of their tariff  
schedule, governments will assign goods and groups of goods to each of the defined bands and  
maint ain this system going forward.  
Country example: In the Canadian example, the government has grouped all goods falling under  
chapters 61 and 62 of the Harmonized System under “clothing and apparel” and assigned this  
commodity group into band 1.  
 
What will b e required at the international level to facilitate this duty collection system at the  
global level?  
 
1. Simplified classification  
For the application of step 3 of this simplified duty collection system for low value shipments  
groups of goods should be defined with reference to the Harmonized System. The simplified  
classification standard would comprise of high -level headings, each grouping together a  
range of commodities typically purchased by individuals for consumption, hobby, sport and  
other private activities and sharing common characteristics in terms of material or use. For  
example, shoes and other footwear and parts thereof contained in chapter 42 of the HS  
would be categorized as “footwear and parts”.  
The simplified classification standard would not contain commodities that are by nature out  
of scope for this simplified duty collection system, often subject to prohibitions and  
restrictions such as  
o Chapters 1 -29 (agricultural products chapters 1 -24, minerals chapters 25 and 26 and  
chemicals chapter s 27-29) 
o Solid goods of precious nature (e.g. diamonds, precious metals)  
o Goods subject to excise taxes (e.g. alcohol or tobacco products) or licensing  
requirements, e.g. dual -use goods  
o Goods not suitable for B2C e -commerce low value shipments (e.g. automob iles) 
o Goods for industrial use (e.g. iron ore, heavy duty machinery, nuclear reactor, etc.)  
 
This simplified classification standard will facilitate the lookup of duty rates by enabling a key  
word search instead of a full -fledged HS classification based on these headings across  
countries. This will facilitate in particular the export business activities of small and medium  
size enterprises in all participating countries. A proposed version of such a simplified  
classification standard is contained as an Annex to this document.  
 
2. Global database and API  
There is a need for a global database that would be the central reference point for the  
applicable duty bands, their corresponding rates as well as the applicable exchange rate.  
Such a global database should be located at a central point, for example an international  
organization such as the WTO, and would be provided with the information from the  
participating governments through an API (Application Programming Interface).  
 
INF/MSME/P/3  
 
- 5 - 
   
 
   Annex  
Suggested Simplified Classification for low -value B2C Shipments  
 
 
No. Suggested Simplified headings  
(56 headings incl. NES)  Scope  
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub - 
chapter headings as per HS 2017  
1. Medicaments, pharmaceutical  
and medical products and  
equipment  30.04  Medicaments (excluding goods of heading 
3002, 3005 or 3006) consisting of mixed or 
unmixed products for therapeutic or 
prophylactic uses, put up in measured doses 
(including those in the form of trans dermal 
administration systems) or in forms or 
packings for retail sale  
30.05  Wadding, gauze, bandages and similar 
articles (for example, dressings, adhesive 
plasters, poultices), impregnated or coated 
with pharmaceutical substances or put up in 
forms or packings for retail sale for medical, 
surgical, dental or veterinary  
purposes  
3006.50  First -aid boxes and kits  
90.20  Other breathing appliances and gas masks, 
excluding protective masks having neither 
mechanical parts nor  
replaceable filters  
2. Beauty aids/Cosmetics/Toiletries  32.01  Tanning extracts of vegetable origin; tannins 
and their salts, ethers, esters and other 
derivatives  
32.02  Synthetic organic tanning substances; 
inorganic tanning substances; tanning 
preparations, whether or not containing 
natural tanning substances; enzymatic 
preparations for pre -tanning  
3203.00  Colouring matter of vegetable or animal 
origin (including dyeing extracts but 
excluding animal black), whether or not 
chemically defined; preparations as specified 
in note 3 to this chapter based on colouring 
matter of vegetable  
or animal origin  
 
 
 
 
 
 
 INF/MSME/P/3  
 
- 6 - 
 
 
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
  32.04  Synthetic organic colouring matter, whether 
or not  chemically defined; preparations as 
specified in note 3 to this chapter based on 
synthetic organic colouring matter; synthetic 
organic products of a kind used as 
fluorescent brightening agents or as 
luminophores,  
whether or not chemically defined  
3205. 00 Colour lakes; preparations as specified in 
note 3 to this chapter based on colour lakes  
32.06  Other colouring matter;  preparations as 
specified in note 3 to this chapter, other than 
those of heading 3203, 3204 or 3205; 
inorganic products of a kind used as 
luminophores, whether or not  
chemically defined  
33 Essential oils and resinoids; perfumery, 
cosmetic or toilet preparations.  
9605.00  Travel sets for personal toilet, sewing or shoe 
or clothes cleaning  
96.15  Combs, hair -slides and the like; hairpins, 
curling pins, curling grips, hair - curlers and 
the like, other than those of  
heading 8516, and parts thereof  
96.16  Scent sprays and similar toilet sprays, and 
mounts and heads therefor; powder -puffs 
and pads for the application of cosmetics or 
toilet preparations  
3. Paints and pigments  32.07  Prepared pigments, prepared opacifiers and 
prepared colours, vitrifiable enamels and 
glazes, engobes (slips), liquid lustres and 
similar preparations, of a kind used in the 
ceramic,  
enamelling or glass industry; glass frit  
 
 
INF/MSME/P/3  
 
- 7 - 
   
 
   No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
   and other glass, in the form of powder, 
granules or flakes  
32.08  Paints and varnishes (including enamels and 
lacquers) based on synthetic polymers or 
chemically modified natural polymers, 
dispersed or dissolved in a non -aqueous 
medium; solutions as defined in note 4 to 
this chapter  
32.09  Paints and varnishes (including enamels and 
lacquers) based on synthetic polymers or 
chemically modified natural polymers, 
dispersed or  
dissolved in an aqueous medium  
3210.00  Other paints and varnishes (including 
enamels, lacquers and distempers); prepared 
water pigments of a kind used for finishing 
leather  
32.12  Pigments (including metallic powders and 
flakes) dispersed in non -aqueous media, in 
liquid or paste form, of a kind used in the 
manufacture of paints (including enamels); 
stamping foils; dyes and other colouring 
matter put up  
in forms or packings for retail sale  
32.13  Artists', students' or signboard painters' 
colours, modifying tints, amusement colours 
and the like, in tablets, tubes, jars, bottles, 
pans or in similar forms or  
packings  
4. Cleaning/Polishing/Lubricating 
products  34 Soap, organic surface -active agents, washing 
preparations, lubricating preparations, 
artificial waxes, prepared waxes, polishing or 
scouring preparations, candles and similar 
articles, modelling pastes, "dental  
 
 
 
 
 
 
 
 INF/MSME/P/3  
 
- 8 - 
 
  
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
   waxes" and dental preparations with a basis 
of plaster.  
5. Photographic articles  37 Photographic or cinematographic goods.  
6. Plastics and articles thereof.  39 Plastics and articles thereof.  
7. Rubber and articles thereof.  40 Rubber and articles thereof.  
8. Articles of leather (apparel, belts, 
wallets, handbags, bags, other)  42 Articles of leather; saddlery and harness; 
travel goods, handbags and similar 
containers; articles of animal gut (other than 
silk-worm gut).  
9. Articles of fur, incl artificial fur  43 Furskins and artificial fur; manufactures 
thereof.  
10. Articles of wood  44 Wood and articles of wood; wood charcoal.  
11. Articles of cork  45 Cork and articles of cork.  
12. Articles of straw and other plaiting 
materials  46 Manufactures of straw, of esparto or of  
other plaiting materials; basketware and 
wickerwork.  
13. Paper and articles of paper  48 Paper and paperboard; articles of paper 
pulp, of paper or of paperboard.  
14. Books, newspapers and other 
printed articles  49 Printed books, newspapers, pictures and 
other products of the printing industry; 
manuscripts, typescripts and plans.  
15. Textiles  50 Silk. 
51 Wool, fine or coarse animal hair; horsehair 
yarn and woven fabric.  
52 Cotton.  
53 Other vegetable textile fibres; paper yarn 
and woven fabrics of paper yarn.  
 
 
 
 
INF/MSME/P/3  
 
- 9 - 
   
 
   No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
  54 Man -made filaments.  
55 Man -made staple fibres.  
56 Wadding, felt and nonwovens; special yarns; 
twine, cordage, ropes and cables and articles 
thereof.  
58 Special woven fabrics; tufted textile  
fabrics; lace; tapestries; trimmings; 
embroidery.  
59 Impregnated, coated, covered or laminated 
textile fabrics; textile articles of a kind 
suitable for industrial use.  
60 Knitted or crocheted fabrics.  
16. Carpets and floor coverings  57 Carpets and other textile floor coverings.  
17. Clothing and apparel  61 Articles of apparel and clothing accessories, 
knitted or crocheted.  
62 Articles of apparel and clothing accessories, 
not knitted or crocheted.  
18. Bedding/Linen/Towels/Curtains  63 Other made up textile articles; sets;  
worn clothing and worn textile articles; rags.  
19. Footwear and parts  64 Footwear, gaiters and the like; parts of such 
articles.  
20. Headgear and parts  65 Headgear and parts thereof.  
21. Umbrellas, walking sticks, and parts  66 Umbrellas, sun umbrellas, walking - sticks, 
seat -sticks, whips, riding -crops and parts 
thereof.  
22. Articles of feathers and down  67 Prepared feathers and down and articles 
made of feathers or of down; artificial 
flowers; articles of human  
hair.  
23. Articles of ceramic  69 Ceramic products.  
24. Glass and glassware  70 Glass and glassware.  
 
 
 
 INF/MSME/P/3  
 
- 10 - 
 
  
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
25. Precious gems and articles thereof  71.01  Pearls, natural or cultured, whether or not  
worked or graded but not strung, mounted 
or set; pearls, natural or cultured, 
temporarily strung for  
convenience of transport  
71.03  Precious stones (other than diamonds) and 
semi -precious stones, whether or not 
worked or graded but not strung, mounted 
or set; ungraded precious stones (other than 
diamonds) and semi -precious stones, 
temporarily strung for convenience of 
transport  
71.04  Synthetic or reconstructed precious or semi -
precious stones, whether or not worked or 
graded but not strung, mounted or set; 
ungraded synthetic or reconstructed 
precious or semi - precious stones, 
temporarily strung for convenience of 
transport  
71.05  Dust and powder of natural or  
synthetic precious or semi -precious stones  
26. Jewelry (Finished/Imitation)  71.13  Articles of jewellery and parts thereof, of 
precious metal or of metal clad with precious 
metal  
71.14  Articles of goldsmiths' or silversmiths' wares 
and parts thereof, of precious metal or of 
metal clad with precious  
metal  
71.15  Other articles of precious metal or of metal 
clad with precious metal  
71.16  Articles of natural or cultured pearls,  
precious or semi -precious stones (natural, 
synthetic or reconstructed)  
71.17  Imitation jewellery  
 
 
INF/MSME/P/3  
 
- 11 - 
   
 
   No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
27. DIY and household articles of metal  73.15  Chain and parts thereof, of iron or steel  
7317.00  Nails, tacks, drawing pins, corrugated nails, 
staples (other than those of heading 8305) 
and similar articles, of iron or steel, whether 
or not with heads of other material, but 
excluding  
such articles with heads of copper  
73.18  Screws, bolts, nuts, coach screws, screw 
hooks, rivets, cotters, cotter pins, washers 
(including spring washers) and similar 
articles, of iron or steel  
73.19  Sewing needles, knitting needles, bodkins, 
crochet hooks, embroidery stilettos and 
similar articles, for use in the hand, of iron or 
steel; safety pins and other pins of iron or 
steel, not  
elsewhere specified or included  
73.20  Springs and leaves for springs, of iron or steel  
73.21  Stoves, ranges, grates, cookers (including 
those with subsidiary boilers for central 
heating), barbecues, braziers, gas rings, plate 
warmers and similar non -electric domestic 
appliances, and parts thereof, of iron or steel  
73.22  Radiators for central heating, not electrically 
heated, and parts thereof, of iron or steel; air 
heaters and hot -air distributors (including 
distributors which can also distribute fresh or 
conditioned air), not electrically heated, 
incorporating a motor -driven fan or blower, 
and parts thereof, of  
iron or steel  
73.23  Table, kitchen or other household articles 
and parts thereof, of iron or steel; iron or 
steel wool; pot scourers  
 
 
 
 
 
 INF/MSME/P/3  
 
- 12 - 
 
  
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
   and scouring or polishing pads, gloves and 
the like, of iron or steel  
73.24  Sanitary ware and parts thereof, of iron or 
steel  
73.25  Other cast articles of iron or steel  
73.26  Other articles of iron or steel  
74.15  Nails, tacks, drawing pins, staples (other than 
those of heading 8305) and similar articles, 
of copper or of iron or steel with heads of 
copper; screws, bolts, nuts, screw hooks, 
rivets, cotters, cotter pins, washers (including 
spring  
washers) and similar articles, of copper  
74.18  Table, kitchen or other household articles 
and parts thereof, of copper; pot scourers  
and scouring or polishing pads, gloves and 
the like, of copper; sanitary ware and parts 
thereof, of copper  
74.19  Other articles of copper  
76.15  Table, kitchen or other household articles 
and parts thereof, of aluminium; pot 
scourers and scouring or polishing pads, 
gloves and the like, of aluminium; sanitary 
ware and parts thereof, of aluminium  
76.16  Other articles of aluminium  
28. Tools, handheld, kitchenware and 
tableware  82 Tools, implements, cutlery, spoons and forks, 
of base metal; parts thereof of base metal.  
29. Household appliances (electric and 
mechanical), machinery and parts 
thereof  84.14  Air or vacuum pumps, air or other gas 
compressors and fans; ventilating or 
recycling hoods incorporating a fan, whether 
or not fitted with filters  
 
 
 
INF/MSME/P/3  
 
- 13 - 
   
 
   No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub - 
chapter headings as per HS 2017  
  84.15  Air-conditioning machines, comprising a 
motor -driven fan and elements for changing 
the temperature and humidity, including 
those machines in which the humidity cannot 
be separately regulated  
84.16  Furnace burners for liquid fuel, for pulverised 
solid fuel or for gas; mechanical stokers, 
including their mechanical grates, 
mechanical ash  
dischargers and similar appliances  
84.18  Refrigerators, freezers and other 
refrigerating or freezing equipment, electric 
or other; heat pumps other than air -
conditioning machines of  
heading 8415  
84.22  Dishwashing machines; machinery for 
cleaning or drying bottles or other 
containers; machinery for filling, closing, 
sealing or labelling bottles, cans, boxes, bags 
or other containers; machinery for capsuling 
bottles, jars, tubes and similar containers; 
other packing or wrapping machinery 
(including heat -shrink wrapping machinery); 
machinery for aerating beverages  
84.23  Weighing machinery (excluding balances of a 
sensitivity of 5 cg or better), including 
weight -operated counting or checking 
machines;  
weighing machine weights of all kinds  
84.24  Mechanical appliances (whether or not  hand -
operated) for projecting, dispersing or 
spraying liquids or powders; fire 
extinguishers, whether or not charged; spray 
guns and similar appliances; steam or 
sandblasting machines and similar jet 
projecting  
machines  
 
 
 
 
 
 
 INF/MSME/P/3  
 
- 14 - 
 
  
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub - 
chapter headings as per HS 2017  
  84.50  Household or laundry -type washing  
machines, including machines which both 
wash and dry  
84.51  Machinery (other than machines of heading 
8450) for washing, cleaning, wringing, drying, 
ironing, pressing (including fusing presses), 
bleaching, dyeing, dressing, finishing, coating 
or impregnating textile yarns, fabrics or 
made -up textile articles and ma chines for 
applying the paste to the base fabric or other 
support used in the manufacture of floor 
coverings such as linoleum; machines for 
reeling, unreeling, folding, cutting or pinking  
textile fabrics  
84.52  Sewing machines, other than book - sewing 
machines of heading 8440; furniture, bases 
and covers specially designed for sewing 
machines; sewing machine needles  
84.67  Tools for working in the hand, pneumatic, 
hydraulic or with self - contained electric or 
non-electric  
motor  
85.08  Vacuum cleaners  
85.09  Electromechanical domestic appliances, with 
self-contained electric motor, other than 
vacuum cleaners of  
heading 8508  
85.10  Shavers, hair clippers and hair - removing 
appliances, with self - contained electric 
motor  
 
 
 
 
 
 
 
INF/MSME/P/3  
 
- 15 - 
   
 
   No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub - 
chapter headings as per HS 2017  
  85.16  Electric instantaneous or storage water 
heaters and immersion heaters; electric 
space -heating apparatus and soil - heating 
apparatus; electrothermic hairdressing 
apparatus (for example, hairdryers, hair 
curlers, curling tong heaters) and hand 
dryers; electric smoothing irons; other 
electrothermic appliances of a kind used for 
domestic purposes; electric heating resistors,  
other than those of heading 8545  
96.03  Brooms, brushes (including brushes 
constituting parts of machines, appliances or 
vehicles), hand -operated mechanical floor 
sweepers, not motorised, mops and feather 
dusters; prepared knots and tufts for broom 
or brush making; paint pads and rollers; 
squeegees (other than roller squeegees)  
9604.00  Hand sieves and hand riddles  
30. Computer, office machines and 
parts thereof  84.70  Calculating machines and pocket -size data -
recording, reproducing and displaying 
machines with calculating functions; 
accounting machines, postage -franking 
machines, ticket - issuing machines and 
similar machines, incorporating a calculating 
device; cash registers  
84.71  Automatic data -processing machines and 
units thereof; magnetic or optical readers, 
machines for transcribing data onto data 
media in coded form and machines for 
processing such data, not elsewhere 
specified or included  
84.72  Other office machines (for example, 
hectograph or stencil duplicating machines, 
addressing machines, automatic banknote 
dispensers, coin - 
sorting machines, coin -counting or - 
 
 
 
 
 
 INF/MSME/P/3  
 
- 16 - 
 
  
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
   wrapping machines, pencil -sharpening 
machines, perforating or stapling machines)  
84.73  Parts and accessories (other than covers, 
carrying cases and the like) suitable for use 
solely or principally with machines of 
headings 8470 to 8472  
31. Electric articles  85.01  Electric motors and generators (excluding 
generating sets)  
85.06  Primary cells and primary batteries  
32. Autoparts and accessories  85.11  Electrical ignition or starting equipment of a 
kind used for spark -ignition or compression -
ignition internal combustion engines (for 
example, ignition magnetos, magneto -
dynamos, ignition coils, sparking plugs and 
glow plugs, starter motors); generators (for 
example, dynamos, alternators) and cut -outs 
of a kind used in conjunction  
with such engines  
87.08  Parts and accessories of the motor vehicles 
of headings 8701 to 8705  
87.16  Trailers and semi -trailers; other  
vehicles, not mechanically propelled; parts 
thereof  
33. Lighting and parts thereof  85.12  Electrical lighting or signalling equipment 
(excluding articles of heading 8539), 
windscreen wipers, defrosters and 
demisters, of a kind used for cycles or motor 
vehicles  
85.13  Portable electric lamps designed to function 
by their own source of energy (for example, 
dry batteries,  
 
 
 
 
 
INF/MSME/P/3  
 
- 17 - 
   
 
   No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
   accumulators, magnetos), other than lighting 
equipment of heading 8512  
94.05  Lamps and lighting fittings including 
searchlights and spotlights and parts thereof, 
not elsewhere specified or included; 
illuminated signs, illuminated nameplates 
and the like, having a permanently fixed light 
source, and parts thereof not elsewhere 
specified  or included  
34. Telephones, cellphones, walky - 
talkies,  85.17  Telephone sets, including telephones for 
cellular networks or for other wireless 
networks; other apparatus for the 
transmission or reception of voice, images or 
other data, including apparatus for 
communication in a wired or wireless 
network (such as a local or wide area 
network), other than transmission or 
reception apparatus of  
heading 8443, 8525, 8 527 or 8528  
35. Microphones, earphones, 
loudspeakers and other audio 
articles and parts thereof  85.18  Microphones and stands therefor; 
loudspeakers, whether or not  mounted in 
their enclosures; headphones and 
earphones, whether or not combined with a 
microphone, and sets consisting of a 
microphone and one or more loudspeakers; 
audio -frequency electric  
amplifiers; electric sound amplifier sets  
36. Audio and video recording 
apparatus, parts and accessories 
thereof  85.19  Sound recording or sound reproducing 
apparatus  
85.21  Video recording or reproducing apparatus, 
whether or not  
incorporating a video tuner  
85.22  Parts and accessories suitable for use solely 
or principally with the apparatus of heading 
8519 or 8521  
 
 
 
 
 
 
 
 INF/MSME/P/3  
 
- 18 - 
 
  
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
  85.23  Discs, tapes, solid -state non -volatile storage 
devices, ‘smart cards’ and other media for 
the recording of sound or of other 
phenomena, whether or not recorded, 
including matrices and masters for the 
production of discs, but  
excluding products of Chapter 3 7 
37. Radio, TV apparatus and parts 
thereof  85.25  Transmission apparatus for radio - 
broadcasting or television, whether or not 
incorporating reception apparatus or sound 
recording or reproducing apparatus; 
television cameras, digital cameras and video 
cam era recorders  
85.26  Radar apparatus, radio navigational aid 
apparatus and radio remote control 
apparatus  
85.27  Reception apparatus for radio - broadcasting, 
whether or not  combined, in the same 
housing, with sound recording or 
reproducing  apparatus or a clock  
85.28  Monitors and projectors, not incorporating 
television reception apparatus; reception 
apparatus for television, whether or not 
incorporating radio -broadcast receivers or 
sound or video recording or reproducing 
apparatus  
85.29  Parts suitable for use solely or  
principally with the apparatus of headings 
8525 to 8528  
38. Electrical apparatus 
(Switches/Plugs/Sockets etc.) and 
parts thereof  85.31  Electric sound or visual signalling apparatus 
(for example, bells, sirens, indicator panels, 
burglar or fire alarms), other than those of 
heading 8512 or 8530  
 
 
 
 
INF/MSME/P/3  
 
- 19 - 
   
 
   No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub - 
chapter headings as per HS 2017  
  85.36  Electrical apparatus for switching or 
protecting electrical circuits, or for making 
connections to or in electrical circuits (for 
example, switches, relays, fuses, surge 
suppressors, plugs, sockets, lamp holders 
and other connectors, junction boxes), for a 
voltage not exceeding 10 00 V; connectors for 
optical fibres, optical fibre bundles or cables  
85.43  Electrical machines and apparatus, having 
individual functions, not specified or included 
elsewhere in this chapter  
85.44  Insulated (including enamelled or anodised) 
wire, cable (including coaxial cable) and 
other insulated electric conductors, whether 
or not fitted with connectors; optical fibre 
cables, made up of individually sheathed 
fibres, whether or not assembled with 
electric  conductors or fitted with connectors  
39. Bicycles, motorcycles and parts  87.12  Bicycles and other cycles (including delivery 
tricycles), not motorised  
87.14  Parts and accessories of vehicles of headings 
8711 to 8713  
40. Carriages for infants, disabled 
persons and parts thereof  87.13  Carriages for disabled persons, whether or 
not motorised or otherwise mechanically 
propelled  
87.15  Baby carriages and parts thereof  
41. Sporting and recreational articles, 
requisites and equipment, parts and 
accessories thereof  89.03  Yachts and other vessels for pleasure or 
sports; rowing boats and canoes  
95.06  Articles and equipment for general physical 
exercise, gymnastics, athletics, other sports 
(including table tennis) or outdoor games, 
not specified or included elsewhere in this 
chapter;  swimming pools and paddling pools  
 
 
 
 
 
 
 
 INF/MSME/P/3  
 
- 20 - 
 
  
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
  95.07  Fishing rods, fish -hooks and other line fishing 
tackle; fish landing nets, butterfly nets and 
similar nets; decoy ‘birds’ (other than those 
of heading 9208 or 9705) and similar  
hunting or shooting requisites  
95.08  Roundabouts, swings, shooting galleries and 
other fairground amusements; travelling 
circuses and travelling menageries; travelling 
theatres  
42. Eyewear  90.01  Optical fibres and optical fibre bundles; 
optical fibre cables other than those of 
heading 8544; sheets and plates of polarising 
material; lenses (including contact lenses), 
prisms, mirrors and other optical elements, 
of any material, unmounted, other than such 
elements  of glass not optically worked  
90.02  Lenses, prisms, mirrors and other optical 
elements, of any material, mounted, being 
parts of or fittings for instruments or 
apparatus, other than such elements of glass 
not optically  worked  
90.03  Frames and mountings for spectacles, 
goggles or the like, and parts thereof  
90.04  Spectacles, goggles and the like, corrective, 
protective or other  
43. Microscopes, telescopes and other 
optical articles  90.05  Binoculars, monoculars , other optical 
telescopes, and mountings therefor; other 
astronomical instruments and mountings 
therefor, but not including instruments for 
radio -astronomy  
90.11  Compound optical microscopes, including 
those for photomicrography,  
 
 
 
 
 
INF/MSME/P/3  
 
- 21 - 
   
 
   No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
   cinephotomicrography or microprojection  
44. Photo and video cameras and parts 
and accessories thereof  90.06  Photographic (other than cinematographic) 
cameras; photographic flashlight apparatus 
and flashbulbs other than discharge lamps  
of heading 8539  
90.08  Image projectors, other than 
cinematographic; photographic (other than 
cinematographic) enlargers and reducers  
9620.00  Monopods, bipods, tripods and similar 
articles  
45. Navigational and atmospheric 
measuring instruments (e.g. 
thermometers, hydrometers, 
compasses and other)  90.14  Direction finding compasses; other 
navigational instruments and appliances  
90.17  Drawing, marking -out or mathematical 
calculating instruments (for example, 
drafting machines, pantographs, protractors, 
drawing sets, slide rules, disc calculators); 
instruments for measuring length, for use in 
the hand (for example, measuring rods and 
tapes, micrometers, callipers), not specified 
or included elsewhere in this chapter  
90.25  Hydrometers and similar floating 
instruments, thermometers, pyrometers, 
barometers, hygrometers and 
psychrometers, recording or not, and any 
combination of these  
instruments  
46. Orthopaedic appliances, including 
crutches  90.21  Orthopaedic appliances, including crutches, 
surgical belts and trusses; splints and other 
fracture appliances; artificial parts of the 
body; hearing aids and other appliances 
which are worn or  
 
 
 
 
 
 
 
 
 
 INF/MSME/P/3  
 
- 22 - 
 
  
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub - 
chapter headings as per HS 2017  
   carried, or implanted in the body, to 
compensate for a defect or disability  
47. Clocks and watches and parts 
thereof.  91 Clocks and watches and parts thereof.  
48. Musical instruments; parts and 
accessories of such articles.  92 Musical instruments; parts and accessories of 
such articles.  
49. Furniture; bedding, mattresses,  94.01  Seats (other than those of heading 9402), 
whether or not  convertible into beds, and 
parts thereof  
94.03  Other furniture and parts thereof  
94.04  Mattress supports; articles of bedding and 
similar furnishing (for example, mattresses, 
quilts, eiderdowns, cushions, pouffes and 
pillows) fitted with springs or stuffed or 
internally fitted with any material or of 
cellular rubber or plastics, whether or n ot 
covered  
50. Toys and games, incl. Video games 
and consoles  9503.00  Tricycles, scooters, pedal cars and similar 
wheeled toys; dolls' carriages; dolls; other 
toys; reduced -size (‘scale’) models and 
similar recreational models, working or not; 
puzzles of all kinds  
95.04  Video game consoles and machines, articles 
for funfair, table or parlour games, including 
pintables, billiards, special tables for casino 
games and  automatic bowling alley 
equipment  
51. Festive articles  95.05  Festive, carnival or other entertainment 
articles, including conjuring tricks and 
novelty jokes  
 
 
 
 
 
 
 
INF/MSME/P/3  
 
- 23 - 
   
 
   No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub - 
chapter headings as per HS 2017  
52. Parts and accessories for clothing 
and apparel  96.06  Buttons, press -fasteners, snap - fasteners and 
press studs, button moulds and other parts 
of these articles; button blanks  
96.07  Slide fasteners and parts thereof  
53. Instruments for 
writing/drawing/painting  96.08  Ballpoint pens; felt -tipped and other porous -
tipped pens and markers; fountain pens, 
stylograph pens and other pens; duplicating 
stylos; propelling or sliding pencils; pen - 
holders, pencil -holders and similar holders; 
parts (including caps and clips) of th e 
foregoing articles, other than those of 
heading 9609  
96.09  Pencils (other than pencils of heading 9608), 
crayons, pencil leads, pastels, drawing 
charcoals, writing or drawing chalks and 
tailors' chalks  
96.12  Typewriter or similar ribbons, inked or 
otherwise prepared for giving impressions, 
whether or not on spools or in cartridges; 
ink-pads, whether or  not inked, with or 
without boxes  
54. Art work, paintings, drawings and 
pastels, executed entirely by hand  97.01  Paintings, drawings and pastels, executed 
entirely by hand, other than drawings of 
heading 4906 and other than hand -painted 
or hand -decorated manufactured articles; 
collages and similar decorative plaques  
9702.00  Original engravings, prints and lithographs  
9703.00  Original sculptures and statuary, in any 
material  
55. Collector items  9704.00  Postage or revenue stamps, stamp - 
postmarks, first -day covers, postal stationery 
(stamped paper), and the like, used or 
unused, other than those  
of heading 4907  
 
 
 
 
 INF/MSME/P/3  
 
- 24 - 
 
  
 
 
No. Suggested Simplified headings 
(56 headings incl. NES)  Scope 
(HS2,  
HS4 or  
HS6)  Selected section, chapter and sub -  
chapter headings as per HS 2017  
  9705.00  Collections and collectors' pieces of 
zoological, botanical, mineralogical, 
anatomical, historical, archaeological, 
palaeontological, ethnographic or  
numismatic interest  
9706.00  Antiques of an age exceeding 100 years  
56. Miscellaneous goods not elsewhere 
specified (NES)  Other  Other  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INF/MSME/P/3  
 
- 25 - 
   
 
   ADDENDUM: WTO MEMBER EXAMPLES  
 
Canada: General Harmonized System - Currently in Place  
The Canadian GHS duty rate bands (commonly known as ‘buckets’) that have been 
operational since  2012  are laid out in the following  chart.  Effectively,  this becomes  the chart  that 
is programmed into  the API, and there  would  be one sheet  for each  participating  country  with 
its tailored  categories for each  band:  
 
 
Bedding/Linen/Towels/Curtains  20% FREE  5% 8% 9.975%  
Clothing/Apparel (excluding religious  & saris)  20% FREE  5% 8% 9.975%  
Footwear & parts thereof  (including  skates)  20% FREE  5% 8% 9.975% 
Textiles  20% FREE  5% 8% 9.975%  
Auto Parts  (excluding  engine/ignition)  8% FREE  5% 8% 9.975%  
Beauty  aids/Cosmetics/Toiletries/Wax/Travel  Sets 8% FREE  5% 8% 9.975%  
Bicycles/Tricycles  8% FREE  5% 8% 9.975%  
Brushes  8% FREE  5% 8% 9.975%  
Candy, Chocolate,  Snack  Foods  8% FREE  5% 8% 9.975%  
CD/DVD’s  (prerecorded  music)  8% FREE  5% 8% 9.975%  
Ceramics  8% FREE  5% 8% 9.975%  
BAND 2 Continued – HS 9825200000  MFN RATE  FTA RATE   
Cleaning/Polishing/Lubricating  products  8% FREE  5% 8% 9.975%  
Clock  8% FREE  5% 8% 9.975%  
Coffee/Tea  Makers  8% FREE  5% 8% 9.975%  
Cookware/Kitchenware/Tableware  8% FREE  5% 8% 9.975%  
Golf Clubs/Balls  8% FREE  5% 8% 9.975%  
Handbags/Wallets  8% FREE  5% 8% 9.975%  
Hats 8% FREE  5% 8% 9.975%  
Instruments  for writing/drawing/painting  8% FREE  5% 8% 9.975%  
Jewelry  (Finished/Imitation)  8% FREE  5% 8% 9.975%  
Leather &  goods  thereof  8% FREE  5% 8% 9.975%  
Luggage  8% FREE  5% 8% 9.975%  
Miscellaneous goods not  elsewhere  specified  8% FREE  5% 8% 9.975%  
Musical Instruments (Guitars, Keyboards, Drums etc 8%  FREE  5% 8% 9.975%  
Plastic  Articles,  NES 8% FREE  5% 8% 9.975%  
Saris  8% FREE  5% 8% 9.975%  
Sports Equipment (excluding downhill  
skis/rackets/hockey sticks/football)  8% FREE  5% 8% 9.975%  
Textile floor coverings  8% FREE  5% 8% 9.975%  
Tools, hand held (not powered)  8% FREE  5% 8% 9.975%  
Umbrellas/Walking sticks/Whips/Crops  8% FREE  5% 8% 9.975%  
BAND 3 – HS 9825300000  MFN RATE  FTA RATE     
Auto parts for engine/ignition  FREE  FREE  5% 8% 9.975%  
Bicycle parts  FREE  FREE  5% 8% 9.975%  
Cameras & parts/accessories thereof  FREE  FREE  5% 8% 9.975%  
CD/DVD’s (blanks/unrecorded)  FREE  FREE  5% 8% 9.975%  
Computers/Laptops & parts/accessories thereof  FREE  FREE  5% 8% 9.975%  
Downhill skis/Hockey sticks/Racquets/Football 
equipment  FREE  FREE  5% 8% 9.975%  
Electrical apparatus (Switches/Plugs/Sockets etc.)  FREE  FREE  5% 8% 9.975%  
Exercise Bicycles/Stair climbers & parts thereof  FREE  FREE  5% 8% 9.975%  
Eyewear (Sunglasses etc.)  FREE  FREE  5% 8% 9.975%  
Machinery parts, NES  FREE  FREE  5% 8% 9.975%  
Microscopes  FREE  FREE  5% 8% 9.975%  
Motorcycle parts  FREE  FREE  5% 8% 9.975%  
Musical Instrument parts & accessories  FREE  FREE  5% 8% 9.975%  
Novelty/Festive items  FREE  FREE  5% 8% 9.975%  
Phones – Tele/Cell/Head/Ear/Micro  FREE  FREE  5% 8% 9.975%  
Power tools (hand held)  FREE  FREE  5% 8% 9.975%  
Precious gems/metal findings  FREE  FREE  5% 8% 9.975%  
BAND 1 – HS 9825100000  
Ontario  Quebec  Column for 
MFN RATE  FTA RATE  Federal  Tax Provincial  Provincial  each  
Tax Tax additional  
  Province  
 
BAND 2 – HS 9825200000  MFN RATE  FTA RATE  INF/MSME/P/3  
 
- 26 - 
 
  
 
 
Printed Matter (Printed art/Books/Brochures etc)  FREE  FREE  5% 8% 9.975%  
Safety Headgear  FREE  FREE  5% 8% 9.975%  
Software  FREE  FREE  5% 8% 9.975%  
Toys/Cards/Handicrafts/Hobby crafts  FREE  FREE  5% 8% 9.975%  
Video game consoles & Electronic games  FREE  FREE  5% 8% 9.975%  
Video/Digital cameras  FREE  FREE  5% 8% 9.975%  
Watches & Watch/Clock parts & accessories  FREE  FREE  5% 8% 9.975%  
 
Exceptions:  
1. Alcohol, Tobacco, and regulated or controlled goods by any Other Government Agency  (OGA).  
2. Goods that qualify for any HST/GST exemption. (Shipper must defer to actual HTS classification if the good is tax  exempt.)  
3. Items subject to additional customs duties (e.g. Excise Tax/SIMA) are not  eligible for GHS.   
Rules:  
 
1. Individual  item value  cannot  exceed  CA$500  (per the commercial  invoice).  Goods  in the formal/high -value  or informal/low -
value  streams may qualify, based on individual values of the goods  imported.  
2. Products classified under BAND 1 or 2 that originate from an FTA country, require that the respective tariff treatment 
coded/applied is noted on the B3 to ensure DUTY FREE status.  
3. Formal FTA agreement or statement is not required to use the FTA  rates.  
 
 
Sample EU: General Harmonized System - Notional Chart for Illustrative Purposes  
 
 
Bedding/Linen/Towels/Curtains  20% FREE   19% 21% 
Clothing/Apparel (excluding religious  & saris)  20% FREE   19% 21% 
Footwear & parts thereof  (including  skates)  20% FREE   19% 21% 
Textiles  20% FREE   19% 21% 
Auto Parts  (excluding  engine/ignition)  8% FREE   19% 21% 
Beauty  aids/Cosmetics/Toiletries/Wax/Travel  Sets 8% FREE   19% 21% 
Bicycles/Tricycles  8% FREE   19% 21% 
Brushes  8% FREE   19% 21% 
Candy, Chocolate,  Snack  Foods  8% FREE   19% 21% 
CD/DVD’s  (prerecorded  music)  8% FREE   19% 21% 
Ceramics  8% FREE   19% 21% 
BAND 2 Continued – HS 9825200000  MFN RATE    
Cleaning/Polishing/Lubricating  products  8% FREE   19% 21% 
Clock  8% FREE   19% 21% 
Coffee/Tea  Makers  8% FREE   19% 21% 
Cookware/Kitchenware/Tableware  8% FREE   19% 21% 
Golf Clubs/Balls  8% FREE   19% 21% 
Handbags/Wallets  8% FREE   19% 21% 
Hats 8% FREE   19% 21% 
Instruments  for writing/drawing/painting  8% FREE   19% 21% 
Jewelry  (Finished/Imitation)  8% FREE   19% 21% 
Leather &  goods  thereof  8% FREE   19% 21% 
Luggage  8% FREE   19% 21% 
Miscellaneous goods not  elsewhere  specified  8% FREE   19% 21% 
Musical Instruments (Guitars, Keyboards, Drums etc 8%  FREE   19% 21% 
Plastic  Articles,  NES 8% FREE   19% 21% 
Saris  8% FREE   19% 21% 
Sports Equipment (excluding downhill  
skis/rackets/hockey sticks/football)  8% FREE   19% 21% 
Textile floor coverings  8% FREE   19% 21% 
Tools, hand held (not powered)  8% FREE     19% 21% 
Umbrellas/Walking sticks/Whips/Crops  8% FREE   19% 21% 
BAND 2 – HS 9825200000  MFN RATE   
BAND 1 – HS 9825100000  
VAT Rate  VAT Rate  Column for 
MFN RATE  EU CUSTOMS        UNION  Germany  Belgium  each  
 FTA RATE     additional  
  EU Country  
 INF/MSME/P/3  
 
- 27 - 
   
 
   BAND 3 – HS 9825300000  MFN RATE      
Auto parts for engine/ignition  FREE  FREE   19% 21% 
Bicycle parts  FREE  FREE   19% 21% 
Cameras & parts/accessories thereof  FREE  FREE   19% 21% 
CD/DVD’s (blanks/unrecorded)  FREE  FREE   19% 21% 
Computers/Laptops & parts/accessories thereof  FREE  FREE   19% 21% 
Downhill skis/Hockey sticks/Racquets/Football 
equipment  FREE  FREE   19% 21% 
Electrical apparatus (Switches/Plugs/Sockets etc.)  FREE  FREE   19% 21% 
Exercise Bicycles/Stair climbers & parts thereof  FREE  FREE   19% 21% 
Eyewear (Sunglasses etc.)  FREE  FREE   19% 21% 
Machinery parts, NES  FREE  FREE   19% 21% 
Microscopes  FREE  FREE   19% 21% 
Motorcycle parts  FREE  FREE   19% 21% 
Musical Instrument parts & accessories  FREE  FREE   19% 21% 
Novelty/Festive items  FREE  FREE   19% 21% 
Phones – Tele/Cell/Head/Ear/Micro  FREE  FREE   19% 21% 
Power tools (hand held)  FREE  FREE   19% 21% 
Precious gems/metal findings  FREE  FREE   19% 21% 
Printed Matter (Printed art/Books/Brochures etc)  FREE  FREE   19% 21% 
Safety Headgear  FREE  FREE   19% 21% 
Software  FREE  FREE   19% 21% 
Toys/Cards/Handicrafts/Hobby crafts  FREE  FREE   19% 21% 
Video game consoles & Electronic games  FREE  FREE   19% 21% 
Video/Digital cameras  FREE  FREE   19% 21% 
Watches & Watch/Clock parts & accessories  FREE  FREE   19% 21% 
 
 
 
__________