G/MA/W/124  
 
1 August 2016  
(16-4104)  Page: 1/9  
Committee on Market Access    
 
  PROCEDURE FOR THE INTRODUCTION OF HARMONIZED SYSTEM 2017 CHANGES  
TO SCHEDULES OF CONCESSIONS USING THE CONSOLIDATED  
TARIFF SCHEDULES (CTS) DATABASE 
DRAFT DECISION 
 
The General Council, 
 
Having regard to  Articles IV:2 and IX:1 of the WTO Agreement; 
  Recalling  that the contracting parties to the GATT 1947, by their Decision of 12 July 1983
1, agreed 
on a method to introduce the Harmonized System (HS) into schedules of concessions; 
 Recalling  that the contracting parties to the GATT 1947, by their Decision of 8 October 1991
2, 
decided on simplified procedures to introduce HS changes to schedules of concessions; 
 Noting  that WTO Members established a Consolidated Tariff Schedule (CTS) database which, 
although not legally binding, could serve as a valuable tool for the verification and certification of 
commitments;  Taking into account  the desire of Members to facilitate and simplify the introduction of HS changes 
into WTO schedules by making a better use of the CTS database; 
 Decides that:  
 
1  PREPARATION AND DISTRIBUTION OF THE DRAFT HS2017 FILE  
1.  The Secretariat shall prepare for Members a comprehensive set of information on the 
Harmonized System 2017 nomenclature (HS2017) changes, which shall include - in electronic form 
- the HS2017 nomenclature at the level of HS si x-digit subheading, concordance tables between 
the HS2012 and the HS2017 nomenclatures
3, and the layout of the electronic formats to be used 
for the transposition files.  This information shall be circulated to all Members no later than 
31 December 2016.  
2.  The Secretariat shall transpose the schedules of Members, except for those who undertake to 
prepare their own transposition and submit a notification to this effect no later than [31 December 
2016].  Members that decide to undertake their own transposition shall submit all the required 
information to the Secretariat - in electronic form - no later than 30 September 2017.  A description of the required information is provided in Annex 1. 
3.  The transposition work shall be based on each  Member's latest schedule, as reflected in the 
Consolidated Tariff Schedule (CTS) database.  If  tariff lines affected by changes in the HS2017 
nomenclature are not yet certified in the HS2012 nomenclature, then the draft HS2012 files shall be used as the basis fo r those tariff lines.  
                                               
1 BISD 30S/17. 
2 BISD 39S/300. 
3 The Secretariat shall take into account the Recommendation adopted by the Council of the World 
Customs Organization on 27 June 2014, as well as Recommendation adopted on 11 June 2015, which includes 
corrections and complementary amendments to Chapter 44.   It shall also  take into account subsequent work at 
the Harmonized System Committee of the WCO. G/MA/W/124 
 
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  4.  In preparing the HS2017 transposition, and to the extent possible, the scope of the concessions 
and other commitments shall remain unchanged.  Any tariff line for which a change in the scope of a concession may have occurred due to the complex technical nature of the transposition shall be clearly flagged.  Paragraph 5 of Annex 2 and paragraph 15 below describe how these situations 
shall be addressed.  
Transposition work by the Secretariat 5.  The Secretariat shall introduce into the Member's schedule, as reflected in the CTS database, 
all HS2017 changes, as well as the Recommendation adopted by the Council of the World Customs 
Organization on 11 June 2015, which includes corrections and complementary amendments to Chapter 44.  The Secretariat shall update all the tariff codes and descriptions that change due to 
the introduction of the HS2017 nomenclature, including those relating to tariff quotas and export 
subsidies, if applicable.  In doing this work, the Secretariat shall abide by the technical procedures 
described in Annex 2 to this Decision.  The Secr etariat shall prepare, based on the updated CTS 
database in the HS2017 nomenclature, a separate file to reflect the changes in nomenclature that 
were introduced.  This separate file shall be prepared as described in Annex 1 and shall be 
considered the "draft HS2017 file" for the purpose of this Decision. 
6.  The Secretariat shall send to the Member its draft HS2017 file for examination as soon as the 
technical work has been completed.  The date of this communication shall hereinafter be referred 
to as the "first date for a file prepared by the Se cretariat".  Upon receipt of this file, the Member 
shall have the possibility to seek clarifications from the Secretariat and propose changes as laid out in Section II.    
Members preparing their own transposition 
7.  Members that undertake to prepare their own transposition shall update all the tariff codes and 
descriptions that change due to the introducti on of the HS2017 nomenclature, including those 
relating to tariff quotas and export subsidies, if applicable.  In doing this work, they shall abide by 
the technical procedures described in Annex 2 to this Decision.  These Members are expected to submit to the Secretariat their draft HS2017 files for examination and final formatting not later 
than the date provided to this effect in paragr aph 2.  The date of receipt shall hereinafter be 
referred to as the "first date for a file prepared by the Member".   
2  EXAMINATION OF DRAFT HS2017 FILES AND RELEASE FOR MULTILATERAL REVIEW 8.  Members for whom the Secretariat has prepar ed a draft HS2017 file are expected to examine 
their file and to provide the Secretariat with a written communication that either approves the file 
(case 1), or provides specific comments on its contents (case 2).  Such communications should reach the Secretariat no later than 60 days follow ing the "first date" for a file prepared by the 
Secretariat. 
9.  The Secretariat shall review the draft HS2017 files prepared by Members pursuant to 
paragraph 7 before their release for multilateral review.  If the Secretariat has no comments on 
the file, it shall then be released for multilateral review (case 1).  If the Secretariat has comments 
(case 2), these will then be transmitted to the Member concerned no later than 60 days following the "first date" for a file prepared by the Member.  
10.  In case 1, the Secretariat shall release the draft HS2017 file for multilateral review with a 
headnote indicating that it has been approved by the Member. 
11.  In case 2, both the Member concerned and the Secretariat shall endeavour to reach a 
common understanding on the issue(s) raised, and reflect any changes accordingly in the draft 
HS2017 file, with a view to releasing it for multilateral review no later than 90 days from the 
appropriate "first date".  In this regard,  
(a) When a common understanding is reached and no change is required, the Secretariat shall 
release the original draft HS2017 file for multilateral review with a headnote indicating that 
the file has been approved by the Member. G/MA/W/124 
 
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  (b) When a common understanding is reached and changes to the draft HS2017 file are 
required, the Secretariat shall prepare a revised file and release it for multilateral review 
with a headnote indicating that the file has been approved by the Member. 
 
(c)  When a common understanding has not been reached, the Secretariat shall prepare a 
revised draft HS2017 file including the specific changes proposed by the Member and release the file for multilateral review.  The revised file shall include a headnote indicating that the 
file has been approved by the Member, and sha ll also describe the Secretariat's observations 
on the file.  
 12.  If the Secretariat does not receive any response from the Member concerned within 90 days 
from the appropriate "first date", the draft HS2017 fi le will be released for multilateral review with 
a headnote indicating that the Member concerned has neither provided any comments nor approved the file. 
3  MULTILATERAL REVIEW PROCESS 
13.  Multilateral review of draft HS2017 files rele ased pursuant to Section II of these procedures 
shall take place in the framework of informal dedicated sessions of the Committee on Market 
Access, which shall be scheduled by the Secretaria t as required.  The Secretariat will post these 
files three or four times a year on the Tariff Analysis Online (TAO)
4  and on dates that should be at 
least six weeks prior to the informal sessions scheduled to this effect.  Members shall be notified of such postings through a communication by the Secretariat.  
14.  Modifications agreed at the multilateral review sessions shall be incorporated by the 
Secretariat into a revised version of the file, which shall then be resubmitted for multilateral review in accordance with paragraph 13.  In case a Member has a query or comment concerning another 
Member's draft HS2017 file, but is unable to attend the meeting at which these changes are to be 
reviewed, it may request the Chair to convey those queries/comments to the other Member at the time of the multilateral review.  
15.  Where the scope of a concession is modified as a result of the transposition in a way that 
impairs its value, consultations and renegotiations pursuant to Article XXVIII of the GATT 1994 shall be entered into by the Member concerned.
5  The status of discussions and consultations 
between Members, including Article XXVIII renegotiations, should be reported  to other Members at 
the multilateral sessions to ensure full transparency.   
4  CERTIFICATION OF HS2017 CHANGES 16.  When there is no objection remaining on a draft HS2017 file at a multilateral review session, 
such file will then be considered approved by the Committee on Market Access.  The file will be 
submitted for certification as provided for in paragraph 17 below, with the exception of any draft HS2017 file released under paragraph 12 where the Member concerned has still neither provided any 
comments nor approved the file.  The latter files sh all also be submitted for certification as provided 
for in paragraph 17 below, unless the Member concerned submits in writing to the Secretariat a reservation within one month from the date of appr oval of its draft HS2017 file at the multilateral 
review session. 
17.  Members having submitted such a reservation shall also provide in writing to the Secretariat 
details of the specific reasons no later than 2 months from the date of their initial communication containing their reservation.  If such specific reasons are not provided within the deadline, the 
certification of their HS2017 file shall take place as provided for in paragraph 18 below.  In case any 
amendment is introduced to the HS2017 file, the multilateral review process provided for in Part III shall be resumed for such a file. 
18.  The Secretariat shall prepare a draft paper version of the changes, as contained in the 
approved HS2017 file  which shall be circulated pursuant to the 1980 Decision on Procedures for Modification and Rectification of Schedules of Tariff Concessions (L/4962).    
                                               
4 https://tao.wto.org . 
5 Where a request for renegotiation or consultati on has been made under Article XXVIII of the 
GATT 1994, the Procedures for Negotiations under  Article XXVIII (BISD27S/26) shall apply. G/MA/W/124 
 
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  5  PERIODIC REPORT BY THE SECRETARIAT 
19.  The Secretariat shall prepare a periodic report on the status of work, which shall include - to 
the extent possible - the following information: (i) a list of the Members that will prepare their own 
draft HS2017 files, (ii) a list of the draft HS2017 files that remain to be prepared by the 
Secretariat, (iii) the draft HS2017 files that have  been completed by the Secretariat and the date 
when they were sent to Members, (iv) the draft HS2017 files released for multilateral review, including a mention of any relevant explanatory note, (v) the progress made on each draft HS2017 
file, including Members having raised reservations , the tariff lines subject to reservation, and a 
summary of the reasons; (vi) the draft HS2017 files that have been approved in the multilateral review and the date of circulation pursuant to the 1980 Procedures ; (vii) the approved HS2017 
changes that have been certified.   
 
  G/MA/W/124 
 
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  ANNEX 1 
DRAFT HS2017 FILE 
1.  The draft HS2017 file shall cover all tariff lines under headings with changes introduced by the 
HS nomenclature, as well as the corresponding concordance tables with the concessions and 
commitments in the HS2012 nomenclature.  The Secretariat and Members that undertake to 
prepare their own transposition are expected to provide - as a separate file which will not be subject to multilateral review - a complete dr aft CTS file in the HS2017 nomenclature.  This 
additional file will facilitate the preparation of  an updated version of the CTS database once the 
transposition procedures are finalized and certified.   2.  The draft HS2017 file shall contain for each bound tariff line, inter alia , the following data 
elements: 
  Tariff line code in HS2017 nomenclature (including suffix or ex) 
 Product description 
 Base duty (if the final bound duty is not fully implemented at the date of the transposition)   
 Final bound duty 
 Other duties and charges 
 Special safeguard 
 Legal instrument (present and earlier) 
 INR (present and earlier if available in the CTS) 
 Implementation period (if the final bound duty is not fully implemented at the date of the 
transposition) 
 Certification indicator 
 
3.  Additional tables containing other relevant concessions and commitments that may be affected by the HS2017 transposition (e.g. tariff quotas and agricultural export subsidies; ITA, ITA 
Expansion, and Pharma special sections; etc.) shall also be included.  
 4.  Members who undertake to prepare their own transposition shall submit all the above mentioned information in electronic format and follow the layout that will be circulated by the 
Secretariat in accordance with Paragraph 1 of this Decision. 
  
 G/MA/W/124 
 
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  ANNEX 2 
TECHNICAL NOTE ON TRANSPOSITION PROCEDURE 
1.  The following note describes the relevant technical procedures, which shall be applied in the 
preparation of the draft HS2017 files.  
 
Concession elements 
2.  The CTS database contains not only tariff concessions, but also a number of other 
commitments.  Although several of these are expressed at the tariff-line level in the different Parts 
and Sections of the schedules, there are some which are not.  As a result, not all elements currently included in the CTS are required for the HS2017 transposition.  It is therefore suggested 
to retain in the draft HS2017 file only those elements which are required for this purpose (see 
Annex 1).  
 Procedural issues 
3.  All affected tariff lines shall be converted into the HS2017 nomenclature and shall be clearly 
flagged.  Detailed tariff line codes and descripti ons may have to be adjusted in certain instances 
(e.g. example 1, table 3b) in order to generate  a meaningful and intelligible schedule.  The 
transposition of any tariff line requiring manual modifications shall also be clearly flagged for 
verification and approval by Members.  
 Methodological issues 
4.  Each new HS2017 subheading/tariff line will be derived from one or more HS2012 tariff lines or 
part of these lines.  If a HS2017 subheading/tariff line matches with two or more HS2012 tariff lines and if these lines have the same levels or contents of concessions (e.g. same bound duties, 
INRs, etc.), the original concession elements can be merged into one new concession at the level 
of the new HS2017 subheading/tariff line.  If the concessions of the original HS2012 tariff lines are 
different, the concession elements of the new HS2017 subheading/tariff line should reflect this.  In 
this case, the HS2017 subheading/tariff line should normally be broken down to a more detailed 
level so that the draft HS2017 file reflects fully the same level of concessions as the CTS in HS2012.  
5.  In case where it is unavoidable to combine tariff lines or parts of tariff lines with different 
concessions, there are four possible methodologies that could be used to arrive at the new rate in accordance to the 1983 procedures on a method to introduce the Harmonized System (HS) into 
schedules of concessions
1  These are:  1) applying the lowest rate of any previous tariff line to the 
whole of the new tariff line, 2) applying the rate previously applied to the tariff line with the majority of trade, 3) applying the trade weight ed average rate of duty for the new line, or 
4) applying the arithmetic average of the prev ious rates of duty where no basis exists for 
establishing reasonably accurate trade allocations.  In the context of the HS2007 transposition, the Secretariat suggested to use the duty rate with the most frequent occurrence (i.e. the mode) for special cases.
2  If any of the above methodologies is used , the selected option shall be specified at 
the tariff line level.  The choice of methodology shall also be explained, except for those situations 
in which the first option is selected (i.e. selecting the lowest duty).  If options 2) or 3) are selected, the Member concerned shall also supply the necessary import data (last three years 
available).  The implication of a combination of ta riff lines on other elements of the concessions, 
such as INRs, ODCs and SSGs, shall also be taken into account by Members to assess whether the value of the concession has been impaired and GATT Article XXVIII negotiations need to be 
followed (See paragraph 15 above). 
 6 .   E x a m p l e s  2  s h o w  t h a t  t h e  " c o l l a p s i n g "  o f  t a riff lines to HS 6-digit subheadings significantly 
simplifies the tariff structure and the workload in volved.  It requires less manual intervention and 
is, thus, less likely to be controversial.  Having a maximum number of concessions defined at the 
                                               
1 Decision of 12 July 1983, BISD 30S/17. 
2 This was the case of HS2007 Heading 84.86.  See paragraph 1.4 of JOB/MA/108. G/MA/W/124 
 
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  level of HS 6-digit subheadings would also make it easier to transpose the new schedule into any 
new national applied schedule based on HS2017 nomenclature.3 
 Reference documents  
7.  The transposition shall be based on the information provided by the World Customs 
Organization, which is included in the WTO documents G/MA/W/121, G/MA/W/122, and G/MA/W/122/Corr.1.  A detailed concordance table between the HS2012 and the HS2017 
nomenclatures shall be prepared by the Secretariat using these documents as the basis.  
 Example 1: Split  
8.  HS2012 subheading 0805.20 is split into three new HS2017 subheadings due to the 
amendments adopted as a result of the proposal by FAO:   
 Table 1.a HS 2012   Table 1.b HS 2017 
HS 
code Product description  HS 
code Product description 
0805 Citrus fruit, fresh or dried.   0805 Citrus fruit, fresh or dried . 
0805.10 - Oranges  0805.10 - Oranges 
0805.20 - Mandarins (including tangerines 
and satsumas); clementines, 
wilkings and similar citrus hybrids   - Mandarins (including tangerines 
and satsumas); clementines, 
wilkings and similar citrus hybrids 
   0805.21 -- Mandarins (including tangerines 
and satsumas) 
   0805.22 -- Clementines 
   0805.29 -- Other 
0805.40 - Grapefruit, including pomelos  0805.40 - Grapefruit, including pomelos 
0805.50 - Lemons (Citrus limon, Citrus 
limonum) and limes (Citrus aurantifolia, Citrus latifolia)  0805.50 - Lemons ( Citrus limon, Citrus 
limonum ) and limes ( Citrus  
aurantifolia, Citrus latifolia ) 
0805.90 - Other  0805.90 - Other 
 
9.  In the CTS database, a Member has four national tariff lines under HS2012 
subheading 0805.20: 
 
Table 2     CTS in HS2012 
TL code Product description Bound 
duty 
0805 Citrus fruit, fresh or dried.  
0805.20 - Mandarins (including tangerines and 
satsumas);  
  clementines, wilkings and similar citrus 
hybrids  
0805.2010 -- Mandarins (including tangerines and 
satsumas) 10 
0805.2020 -- Clementines 20 
0805.2030 -- Wilkings  30 
0805.2090 -- Other 30 
 10.  In theory, all four national tariff lines could go under each of the three new HS2017 subheadings. If the conversion is done by a co mputer program, it would generate 12 possible 
HS2017 tariff lines.  However, not all of the 12 ne w national tariff lines are appropriate when the 
product descriptions are considered.  For instance, HS2012 national tariff line "0805.2010 – 
Mandarins (including tangerines and satsumas)" cannot not be kept under the HS2017 subheading "0805.22 - Clementines", and it should stay only under "0805.2100 "Mandarins (including 
tangerines and satsumas)".  Similarly, the HS2012 national tariff line "0805.2020 -- Clementines" 
can only stay under HS2017 subheading "0805.2200 - Clementines".  Therefore, each tariff line 
generated by computer program shall be reviewed manually to determine whether it shall stay 
                                               
3 This would not preclude that concessions defined only at the level of subheadings could be broken 
down again into tariff line detail by the Members concerned. G/MA/W/124 
 
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  under the corresponding new HS2017 subheading.  In  this example, Table 3 shows the tariff lines 
which are retained under each HS2017 subheadings and their corresponding tariff lines in HS2012.    Table 3.a   CTS in HS2012       Table 3.b   CTS in HS2017  
TL code Product description Bound 
duty  TL code Product description Bound 
duty 
0805 Citrus fruit, fresh or 
dried.   0805 Citrus fruit, fresh or 
dried.  
0805.1000 - Oranges   0805.1000 - Oranges  
0805.20 - Mandarins (including 
tangerines and 
satsumas); 
clementines, wilkings 
and similar citrus 
hybrids   0805.2 - Mandarins (including 
tangerines and 
satsumas); 
clementines, wilkings 
and similar citrus 
hybrids :  
0805.2010 -- Mandarins (including 
tangerines and 
satsumas) 10  0805.2100 -- Mandarins 
(including 
tangerines and 
satsumas) 10 
0805.2020 -- Clementines 20  0805.2200 -- Clementines 20 
0805.2030 -- Wilkings  30  0805.2900 -- Other 30 
0805.2090 -- Other 30     
0805.4000 - Grapefruit, including 
pomelos   0805.4000 - Grapefruit, including 
pomelos  
0805.5000 - Lemons (Citrus 
limon, Citrus limonum) 
and limes (Citrus 
aurantifolia, Citrus latifolia)   0805.5000 - Lemons ( Citrus limon, 
Citrus limonum ) and 
limes ( Citrus  
aurantifolia, Citrus latifolia )  
0805.9000 - Other   08059.000 - Other  
 
11.  A concordance table between the HS2012 and HS2017 nomenclature at the tariff line level 
would be constructed as follows:  
Table 4.a     Correlating HS2012 to HS2017
  Table 4.b     Correlating HS2017 to HS2012  
HS2012 e
x Bound 
duty 
HS12 HS2017 e
x Bound 
duty 
HS17  HS2017 e
x Bound  
duty  
HS17  HS2012 e
x Bound 
duty 
HS12 
0805.2010  10 0805.2100  10  0805.2100   10 0805.2010  10 
0805.2020  20 0805.2200  20  0805.2200   20 0805.2020  20 
0805.2030  30 0805.2900 x 30  0805.2900  x 30 0805.2030  30 
0805.2090  30 0805.2900 x 30  0805.2900  x 30 0805.2090  30 
 
Example 2: Merger  12.  Two HS2012 subheadings are merged to one new HS2017 subheading: 
 
 Table 5.a HS 2012   Table 5.b HS 2017 
HS code Product description  HS 
code Product description 
3705 Photographic plates and film, 
exposed and developed, other 
than cinematographic film.  3705.00 Photographic plates and film, 
exposed and developed, other 
than cinematographic film 
3705.10 - For offset reproduction    
3705.90 - Other    
 G/MA/W/124 
 
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  13.  In the CTS database, a Member has four tariff lines listed under the two subheadings: 
 
Table 6     CTS in HS2012 
TL code Product description Bound duty 
3705 Photographic plates and film, exposed 
and developed, other than 
cinematographic film.  
3705.10 - For offset reproduction   
3705.1010 -- Containing news or educational 
material 10 
3705.1090 -- Other 10 
3705.90 - Other  
3705.9010 -- Microfilms 10 
3705.9090 -- Other 10 
 
14.  If the first six digits of the HS2012 tariff lines are substituted by the codes of new HS2017 
subheadings: 
 Table 7.a HS2012 Table 7.b HS2017 
TL code  TL code Product description 
3705.1010 Substitute first 6 digits with 
3705.00 
 3705.0010  -- Containing news or educational  
material 
3705.1090 3705.0090  -- Other 
3705.9010 3705.0010  -- Microfilms 
3705.9090 3705.0090  -- Other 
 
15.  If all national tariff lines under a HS 6-digit subheading have the same duties (and other concession elements), these lines could be collapsed to the HS 6-digit subheading level and the 
transposition exercise will be significantly simplified as shown below. According to Table 6, all 
HS2012 tariff lines have a duty of 10%. Therefore, the new HS2017 tariff lines could be collapsed to one tariff line 3705.0000 with bound duty 10%.   
Table 8.a HS 2017 before collapsing  Table 8.b HS 2017 before 
collapsing 
TL code Product description Bound 
duty  TL code Product 
description Bound 
duty 
3705.1010 - For offset reproduction, 
containing news or 
educational material 10  3705.0000  Photographic 
plates and film, 
exposed and developed, other 
than 
cinematographic film 10 
3705.1090 - For offset reproduction, 
other  10 
3705.9010 - Microfilms 10 
3705.9090 - Other 10 
 
16.  A concordance table between the HS2012 and HS2017 nomenclature at the tariff line level 
shall be constructed as follows:  
Table 10.a     Correlating HS2012 to 
HS2017   Table 10.b     Correlating HS2017 to HS2012
 
HS2012 e
x Bound  
duty 
HS12 HS2017 e
x Bound  
duty 
HS17   HS2017 e
x Bound 
duty  
HS17 HS2012 e
x Bound 
duty 
HS12 
3705.1010  10 3705.0000 x 10  3705.0000  x 10 3705.1010  10 
3705.1090  10 3705.0000 x 10  3705.0000  x 10 3705.1090  10 
3705.9010  10 3705.0000 x 10  3705.0000  x 10 3705.9010  10 
3705.9090  10 3705.0000 x 10  3705.0000  x 10 3705.9090  10 
 
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