Imagine a cargo ship loaded with plastic waste arriving at a port. How can customs officers quickly and accurately determine whether these materials represent valuable recyclable resources or potential environmental hazards? This critical question was at the heart of the fourth workshop in the "Visualizing Green HS to Support Environmentally Sustainable Trade" series, organized by the World Customs Organization (WCO) with EU support on December 1, 2022.
The workshop, titled "Reflecting the Life Cycle of Basic Materials - Plastics, Metals, Wood and Other Sustainable Alternatives," brought together participants from international and regional organizations, private sector representatives, civil society groups, and customs administrations to explore how the Harmonized System (HS) could better reflect trade flows in a circular economy and help identify key product characteristics at borders.
The Need for HS Code Reform
Konstantinos Kaiopoulos, Director of Tariff and Trade Affairs (TTA) at WCO, opened the event by stating that current economic and consumption models are unsustainable. He emphasized that WCO tools, particularly the HS, must adapt to environmental concerns to contribute to ecological awareness. However, he noted a significant challenge: the HS generally doesn't distinguish between virgin and recycled materials or specify whether waste is suitable for recycling.
"How can we identify these characteristics at the border?" Kaiopoulos asked, framing the workshop's central objective: exploring how the HS can reflect the evolution toward more circular economic models.
Plastics: The Transparency Challenge
Dr. Carolyn Deere Birkbeck from the Forum on Trade, Environment and SDGs (TESS) highlighted shortcomings in tracking plastics through their life cycle under the current HS system. The inability to clearly differentiate between virgin plastics, recycled plastics, and various plastic waste types creates obstacles for effective pollution monitoring and circular economy implementation.
Her recommendations included introducing new HS codes to classify different plastic waste types and their recyclability, along with mechanisms to track plastic origin and destination. These changes would provide policymakers with better data to support recycling initiatives and monitor global plastic pollution flows.
EU's Statistical Approach
Arturo de la Fuente from Eurostat presented the EU's methodology for circular economy statistics based on HS codes. The system tracks key indicators like waste generation, recycling rates, raw material consumption, and recycled material usage. This data integration helps assess environmental impacts and monitor cross-border waste movements to combat illegal trafficking.
Wood and Metal: Sector-Specific Solutions
FAO forestry experts Iana Arkhipova and Ashley Steel addressed challenges in wood product classification, including illegal logging and waste management. They proposed HS code improvements to enhance timber tracking and promote wood waste recycling.
Ross Bartley of the Bureau of International Recycling emphasized metals' role in circular systems and climate change mitigation. He advocated for new HS codes to distinguish metal scrap types and align with Basel Convention standards for hazardous waste management.
The Path Forward
The workshop concluded with moderator Gael Grooby encouraging continued dialogue on creating a "greener" HS system. The discussions highlighted the need for collaborative efforts among customs authorities, international organizations, businesses, and civil society to develop HS codes that better support circular economy objectives and sustainable trade practices.