Study Guide

The Harmonized System Committee is also the arbitrator of classification disputes between Contracting Parties. Disputes follow an escalation path below.

Step 1 — Direct negotiation between parties

Parties are encouraged to reach agreement among themselves in the first instance. Members that resolve issues in this manner should advise the HSC Secretariat accordingly.

Step 2 — Referral to the Committee

Disputes that cannot be settled by direct negotiation are referred to the Committee for adjudication at its bi-annual meetings. After examination, the Committee makes recommendations for their solution.

Step 3 — Referral to the Council (rare)

In the unlikely situation that the Committee is unable to settle a dispute, it may refer the matter to the Council for a recommendation.

Step 4 — Right of appeal

A member unsatisfied with the result may appeal by lodging a reservation with the HSC Secretariat, on or before the last day of the two full subsequent calendar months after the Committee meeting ends.