Imagine a cargo ship loaded with plastic waste arriving at a port. How can customs officials quickly determine whether these materials are destined for legitimate recycling or illegal dumping? Or consider a shipment of timber—how can authorities distinguish between sustainably harvested wood and illegally logged forests? The answers lie in a comprehensive global commodity classification system.
The World Customs Organization (WCO) is pushing for a "green upgrade" of its Harmonized System (HS) to better reflect circular economy principles and support environmentally sustainable trade.
WCO Workshop Focuses on Sustainable Trade
On December 1, 2022, with support from the European Union, the WCO hosted its fourth thematic workshop titled "Visualizing a Greener HS to Support Environmentally Sustainable Trade." The event focused on how the HS can adapt to reflect the shift toward circular economic models and help identify relevant product characteristics at borders.
The workshop's theme— "Reflecting the Life Cycle of Basic Materials: Plastics, Metals, Wood and Other Sustainable Alternatives" —brought together representatives from international and regional organizations, private sector entities, civil society groups, and customs administrations to discuss needs and the HS's role in this space.
Limitations and Challenges of the HS System
In his opening remarks, Konstantinos Kaiopoulos , Director of Tariff and Trade Affairs at WCO, noted that current economic and consumption models have "undoubtedly reached their limits." He emphasized that WCO tools, particularly the HS, must adapt to environmental concerns to contribute to ecological awareness.
"For most goods, the HS doesn't contain provisions to determine whether materials are new or recycled, or whether waste is suitable for recycling operations," Kaiopoulos said. "The question is how to identify these characteristics at borders."
Gael Grooby , WCO Deputy Director of Tariff and Trade Affairs, moderated panel discussions. She explained the workshop focused on identifying materials at different life cycle stages—a concept closely tied to circular economy principles and creating visibility for materials in recycling loops.
Expert Perspectives: Optimizing HS Codes for Key Materials
Plastics: Tracking the Pollution Lifecycle
Dr. Carolyn Deere Birkbeck , Director of the Forum on Trade, Environment & Sustainability, highlighted shortcomings in current HS codes for tracking plastics through their entire lifecycle. This makes it difficult to monitor cross-border flows of plastic waste and assess recycling effectiveness.
She recommended more granular HS classifications—distinguishing between polymer types, virgin versus recycled plastics, and different plastic product uses—along with international cooperation to establish unified standards.
Statistics: HS-Based Circular Economy Indicators
Arturo de la Fuente of Eurostat presented how HS codes enable tracking of waste and recyclable material flows within the EU and with trading partners. While HS codes form a crucial statistical foundation, he noted the need for enhancements to better capture product longevity, repairability, and recyclability metrics.
Wood: Challenges and Opportunities in Classification
FAO forestry experts Iana Arkhipova and Ashley Steel addressed difficulties in distinguishing wood sources, processing levels, and sustainability characteristics within current HS codes. They proposed including data points about origin, harvesting methods, and processing techniques to support sustainable forest management.
Plastic Recycling: Calling for Finer Classification
Chaim Waibel of the European Plastics Recyclers Association argued current HS codes are too broad for the recycling industry. He advocated for distinguishing polymer types, waste sources, and quality grades in plastic waste classifications, plus implementing traceability systems to ensure proper handling.
Metal Recycling: Climate Change Connections
Ross Bartley from the Bureau of International Recycling demonstrated how metal recycling contributes to climate change mitigation through reduced CO₂ emissions. He proposed aligning HS codes with the Basel Convention by clearer distinctions between waste and scrap metal.
Next Steps for the WCO
The workshop concluded with calls to continue developing approaches for a greener HS system. The WCO will review expert recommendations to refine HS codes—making them more precise and intelligent in tracking product lifecycles. This technical upgrade represents a fundamental shift in global trade concepts toward circular economy principles.
As the system evolves, it promises to enhance customs' ability to regulate cross-border trade, combat illegal waste trafficking, and promote resource recovery—steering global commerce toward greater sustainability.