Imagine your business is actively pursuing eco-friendly initiatives, striving to find sustainable alternatives to plastic, only to face towering international trade barriers and soaring costs due to information asymmetry. This frustrating scenario is all too familiar for companies committed to green development. Now, a solution is on the horizon. The World Customs Organization (WCO) is introducing a major upgrade to its Harmonized System (HS) code—the 2028 edition—which promises to dismantle trade obstacles and facilitate the global flow of green products.
The HS Code: The "Universal Language" of International Trade
First, let’s understand the significance of HS codes. These codes serve as the "universal language" of international trade, classifying goods to streamline customs management and statistics. Governments rely on HS codes to implement trade measures such as tariffs, licenses, and inspections. Crucially, HS codes enable the collection of trade data, informing more effective policy-making.
The Urgent Need for HS Code Upgrades Amid Rising Plastic Pollution
As plastic pollution reaches critical levels, global calls for environmental action grow louder. In response, the World Trade Organization (WTO) launched the "Dialogue on Plastic Pollution and Environmentally Sustainable Plastics Trade," proposing revisions to the HS code system. The WCO Secretariat, in collaboration with other international organizations, has now finalized the 2028 HS code upgrade to address these challenges.
The 2028 HS Code: More Precise, Transparent, and Effective
What makes the 2028 HS code system a game-changer? In short, it offers greater precision, transparency, and effectiveness, empowering businesses to tackle plastic pollution head-on.
1. Precision Tracking: Identifying Eco-Friendly and Problematic Plastics
The updated HS code system introduces refined classifications for specific polymers, particularly those with environmental significance:
- Biodegradable Plastics: PBS (polybutylene succinate), PBT (polybutylene terephthalate), PBAT (polybutylene adipate terephthalate), and PEF (polyethylene furanoate) are assigned subheadings 3907.92 to 3907.95 . PHBV (polyhydroxybutyrate-valerate) falls under 3913.21 .
- Expanded Polystyrene and PVC Products: Subheadings 3923.11 , 3924.21 , and 3924.22 .
These granular classifications allow governments to monitor trade flows more accurately, incentivizing the use of eco-friendly plastics while restricting problematic materials.
2. Targeting Single-Use Plastics: Curbing Waste and Advancing the Circular Economy
The 2028 HS code explicitly defines single-use plastic products as "items typically discarded or recycled after one use, unsuitable for repeated or long-term use." The following products are now classified as single-use plastics:
- Drinking straws: Subheadings 3917.24 and 3917.34
- Boxes, crates, and similar containers: Subheadings 3923.11 and 3923.12
- Bags and pouches: Subheadings 3923.22 and 3923.23
- Jars, bottles, and similar containers: Subheading 3923.31
- Stoppers, lids, and caps: Subheading 3923.51
- Other plastic packaging: Subheading 3923.91
- Cutlery and kitchenware: Subheadings 3924.21 to 3924.29
- Gloves and mittens: Subheading 3926.21
- Plastic headgear: Subheading 6506.93
By pinpointing single-use plastics, governments can implement measures to reduce their production and encourage reusable alternatives, accelerating the transition to a circular economy.
3. Expanded Scope: Capturing More Plastic Pollution Sources
Beyond plastic products, the 2028 HS code addresses items closely linked to plastic pollution, including:
- Specific plant-based textile fibers: "Unspun, processed or unprocessed" or "waste and scraps" (subheadings 5305.10 and 5305.90 ).
- Plastic-stemmed cotton swabs: Subheading 5601.23
- Fishing nets made of synthetic fibers: Heading 56.08
- Balloons: Subheading 9503.10
- Fishing and butterfly nets made of synthetic textiles: Subheadings 9507.41 and 9507.49
Including these products provides a more comprehensive view of plastic pollution sources, enabling targeted mitigation strategies.
New Opportunities for Businesses Under the 2028 HS Code
The upgraded HS code system not only strengthens government oversight but also unlocks opportunities for businesses:
- Clearer market insights: Detailed HS codes help businesses identify demand and potential partners.
- Fairer competition: Combats illicit trade, protecting legitimate businesses.
- Lower trade costs: Simplified customs procedures reduce barriers and expenses.
- Enhanced brand reputation: Adopting eco-friendly materials aligns with global standards, appealing to consumers.
How Businesses Can Leverage the HS Code Upgrade
To capitalize on these changes, companies should:
- Stay informed: Familiarize with the 2028 HS code to ensure accurate product classification.
- Adapt product lines: Phase out high-pollution plastics in favor of sustainable alternatives.
- Invest in R&D: Develop greener materials and production methods.
- Strengthen branding: Promote sustainability initiatives to build trust.
- Collaborate: Engage with policymakers and industry groups to shape effective regulations.
HS 2028: Paving the Way for Sustainable Trade
The 2028 HS code upgrade marks a pivotal step in global efforts to combat plastic pollution. Equipping governments with better tools and creating opportunities for businesses, it sets the stage for a greener trade future. Together, we can work toward a cleaner, healthier planet.
How Governments Will Benefit from the New HS Code
The refined HS code system will empower governments to:
- Regulate plastic pollution trade: Restrict or ban materials and products contributing to pollution.
- Monitor primary plastic trade: Track flows of virgin plastics and polymers.
- Enhance transparency: Improve visibility into plastic product compositions.
- Promote eco-friendly trade: Facilitate trade in non-plastic alternatives, recyclables, and sustainable goods.
- Implement circular economy policies: Establish standards for plastic recycling, reuse, and labeling.