ach 4 years, the World Customs Organization (hereinafter, the “WCO”) reviews the Harmonized System and updates it in accordance with trade needs. The latest review made by the WCO led to the VII Edition of the Harmonized System, which came into force on January 1, 2022.
 
The VII Edition includes 351 changes to the nomenclature, distributed in the following sectors:

• Agriculture, food, and tobacco: 77 changes.
• Chemicals: 58 changes.
• Wood: 31 changes.
• Textiles: 21 changes.
• Metals: 27 changes.
• Machinery: 63 changes.
• Transportation: 22 changes.
• Others: 52 changes.

 
The VII Edition was approved for the Central American Customs Duties System, through Decision No. 450-2021 of the Economic Integration Ministers Council. These are some of the most important changes:
 

1. Unification of headings to declare the flours of aquatic invertebrates:  

Heading 03.09 was included in Chapter 3, which centralizes the declaration of flour, dust and pellets of fish, crustaceans, mollusks and the rest of aquatic invertebrates, fit for human consumption.
 

1. Clarification for yogurt declarations:  

Because many yogurts are mixed with other products, the VII Edition included note 2 of Chapter 4, which clarifies the products that may be declared in heading 04.03. Prior to the VII Edition, yogurt used to be declared in heading 04.03.10. This heading was eliminated and heading 04.03.20 was created to declare yogurt.
 

1. Separate classification for nicotine products and novel tobacco products:  

The VII Edition created heading 24.04, including new notes 2 and 3 of Chapter 24. A new subheading 8543.40 was also created for electronic cigarettes and similar electronic vaporization devices, which have an assigned 0% of Import Customs Duties in the Central American Customs Duties System.
 

1. Dual-use products:  

To facilitate the monitoring and control of certain products considered by the WCO experts as strategic dual-use products which may be deviated to unauthorized uses, headings were created to have more control of said products, such as: radioactive materials (headings 28.44 and 28.45), toxins (heading 30.02), zirconium (heading 81.09), industrial robots (heading 84.28), radiation-hardened chambers and high-velocity chambers (heading 85.25), among others.
 

1. Textiles:  

The classification of “electronic textiles” was clarified in the VII Edition. It was also created a new Note 3 to Chapter 59, which defines laminated fabrics with plastic. It was created Note 8 of Chapter 59, which clarifies the classification of filtering or straining cloth.
 

1. Metals:  

Section XV of Chapter 72, Common Metals and Manufacturing of these Metals was simplified: Casting, iron, and steel to Chapter 83: Several manufacturing of common metal. The definitions of the Notes of Chapters 74 to 76 and of 78 to 81 was united in Note 9 of Section XV. Therefore, there are similar definitions for bars, profiles, wires, plates, blades, strips, and pipes.
 

1. 3D printers, smartphones, and drones:  

A new Note 10 of Chapter 84 was created, which defines what is a machine for additive manufacturing or 3D printing. In the subheadings of heading 84.85, the Central American Customs Duties System assigns 0% of Import Customs Duties to all types of machines for additive manufacturing. Note 5 of Chapter 85 was created, to define the scope of smartphones, and heading 85.17.12 “Cellphones and telephones of other wireless networks” was eliminated. Because of the technological developments, the VII Edition introduced a new Note 1 of Chapter 88, which defines what an “unmanned aircraft” is; heading 88.06 was created for unmanned aircraft and heading 88.07 is created for the parts of the aircraft included in headings 88.01, 88.02, and 88.06. Most of the subheadings of heading 88.06 have 0% of Import Customs Duties.
 

1. Vehicles for the transportation of goods:

Heading 87.04 “Automobile vehicles for the transportation of goods” was changed, to identify electric and hybrid vehicles. 0% of Import Customs Duties corresponds to the three subheadings.

For further information please contact:

• Maria Lourdes Villanueva maria.villanueva@carrillolaw.com