The Harmonized System Convention. The Harmonized System Convention came into force on 1 January 1988

The Harmonized System Convention came into force on 1 January 1988. Contracting Parties are obliged to ensure that their import customs tariffs and statistical nomenclatures for both imports and exports are in conformity with the Harmonized System.

The Harmonized System is both a multipurpose 6 – digit nomenclature and a structured nomenclature based on a series of subdivided 4 – digit headings. Both in concept and design, the Harmonized System, therefore, represents a valuable instrument that may be used for a variety of purposes. Customs tariffs, trade statistics, internal taxes, trade policy formulation, determination of the origin of goods are just a few examples.

The HS is now used all over the world, in millions of transactions every day. The sphere of influence of the HS as the common economic language for goods is expanding, the uniform application of the HS by all users is the key to its success. Misclassification of goods could lead to loss of revenue, delays in customs clearance, distortion of trade data.

A good nomenclature cannot be an absolutely rigid instrument which is difficult to change. It is designed to serve as a framework for international trade and other needs which are themselves in constant move, and evolution and must therefore be open for current requirements. The periodic updating of the HS in order to prevent it from becoming obsolete, is very important. The updating is a continuous process requiring constant effort by the WCO (the World Customs Organization) in a rapidly changing trade environment. A considerable amount of time and resources have to be devoted to this work so that the latest development in technology, trade could be taken into consideration.

At the same time proper implementation by all HS users is necessary. Measures to assist countries with implementation are being taken to avoid having different versions in existence at the same time, and consequent confusions in trade circles which could affect the reputation of the HS.

Notes: Abbreviation – a short form of a word or expression. As a rule abbreviations are read as individual letters, i.e. as in the alphabet.

the UK – the United Kingdom

the USA – the United States of America

the WTO – the World Trade Organization

the WCO – the World Customs Organization

Acronym – a word made up from the first letters of the name of something such an organization. They are read according to the rule of word pronunciation.

NATO [´neitə] - the North Atlantic Treaty Organization

VAT [væt] – value added tax

TASKS

Task 4. Match the following abbreviations with their meanings and translate them into Russian.

PIN - North America Free Trade Agreement

IMF - United Nations

OECD - Commonwealth of Independent States

G8 - personal identification number

NAFTA - International Monetary Fund

CIS - Group of Eight

UN - Organization for Economic Co-operation and development

Task 5. What do the following abbreviations stand for?

GDP

FRS

EEC

UNESCO

UNFAO

CAD

Task 6. Read the following words formed by means of conversion with a change of the stress.

to export – export

to import – import

to present – present

to increase – increase

to produce – produce

to transport – transport

Task 7. Define from what verbs these words are derived.

conformity classification consideration

formulation clearance implementation

determination requirement existence

application development confusion

Task 8. Arrange the letters in brackets into terms to match the given definitions.

1. The process of gradually becoming better, stronger, or more advanced

(t e e n e p d v m o l)

2. The obeyance of the accepted rules (y c f m r o o i t n)

3. The process of adding the most recent information to something or making something more modern in the way it operates (g p d u i t a n)

4. Unclear and difficult to understand (n i o n f c u g s)

Task 9. Match the adjectives (Column A) to the nouns (Column B) with which they are used in the text.