Table of Contents

I. INTRODUCTION

II. REVISION OF THE INTERNATIONAL TRADE CLASSIFICATION CHAPTER 41

ANNEX A: OUTLINE OF REVISIONS

I. INTRODUCTION

1. Recent sessions of the Sub-Group have developed and promoted a proposal for a revision to the international trade classification of hides and skins in order to better reflect the composition of trade. As result of the efforts of the Sub-Group, an improved classification is to be introduced in January 2002. This document reports on this proposal and provides an outline of the revision.

II. REVISION OF THE INTERNATIONAL TRADE CLASSIFICATION CHAPTER 41

2. Trade in hides, skins, leather and leather manufactures has undergone significant changes during the past two decades, and consequently commodity trade patterns have changed. In particular, an increasing proportion of trade is now in the form of wet-blue, crust and ready to finish leathers. Despite the significance in volume and value terms of international trade in these items, they are not identified separately in the existing international trade classifications.¹ These tanned hide and skins are typically arbitrarily classified in trade statistics either as rawhides and skins, or as finished leather, whereas they are, in fact, neither of these.

3. Following the request by the Sub-Group at its Fourth Session, the Secretariat approached the World Customs Organization (WCO), the body responsible for international trade classifications, to seek assistance. Subsequently the Sub-Group, at its Fifth Session in May 1996, agreed that revision of the trade classification was necessary, and requested the Secretariat to consult with government, industry, trade and international organization experts to draft appropriate definitions. During that session, an informal technical working group discussed the requirements for revision, and a proposed new schedule was subsequently developed by the secretariat of the Confederation of National Associations of Tanners and Dressers of the European Community (COTANCE) and distributed for comment. Following a process of consultation among industry experts, during which revisions were made to the earlier draft to take account of technical requirements, a proposal was developed and submitted to the Sixth Session of the Sub -Group in 1998. The Sub-Group endorsed the proposal which was subsequently forwarded to the WCO for consideration and approval. It was discussed at various WCO meetings in 1999 and 2000 and amendments, which by and large reflected the suggestions of the Sub-Group, were finally accepted.

4. The amendments to the International Trade Classification will be implemented as of 1 January 2002.

ANNEX A: OUTLINE OF REVISIONS

a. The existing system:

41.01: Raw bovine hides and skins, limed or pickled but not tanned;
41.02: Raw sheep and lamb, limed or pickled but not tanned;
41.03: Other raw hides and skins (includes goat, reptiles);
41.04: Bovine leather;
41.05: Sheep and lamb leather;
41.06: Goat and kid leather;
41.07: Leather of other animals;
41.08: Chamois leather;
41.09: Patent leather, patent laminated and metallised leather;
41.10: Parings and waste; and
41.11: Composition leather.

b. The new system:

41.01:	Raw hides and skins of bovine (including buffalo) or equine animals (fresh, or salted, dried, limed pickled or otherwise preserved, but not tanned, parchment dressed or further prepared) whether or not dehaired or split. 4101.20 - Whole hides and skins of a weight per skins not exceeding 8 kg when simply dried, 10 kg when dry salted, or 16 kg when fresh, wet-salted or otherwise preserved. (The present weight criterion has been amended to increase the maximum weight from 14Kg. to 16 Kg. of whole hides and skins, fresh, wet salted, or otherwise simply dried or dry salted.) 4101.50 - Whole hides and skins, of weight exceeding 16 kg 4101.90 - Other, including butts bends and bellies.
41.02	Raw skins of sheep or lambs (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared), whether or not with wool on or split. These raw skins may be fresh (green) or temporarily preserved by salting, drying, liming, pickling or any other method to prevent putrefaction in the short term. They may also be cleaned, split or scraped, or may have undergone a tanning (including pre-tanning) process which is irreversible, but not subject to any other tanning or equivalent process (such as parchment-dressing) nor further prepared 4102.10 - - With wool on Without wool on 4102.21 - Pickled 4102.29 - Other
41.03	Other raw hides and skins 4103.10 - Of goats or kids 4103.20 - Of reptiles 4103.03 - Of swine 4103.90 - Other
41.04:	Tanned or crust bovine hides and skins (including buffalo) or equine animals without hair on, whether or not split, but not further prepared. 4104.11 - Full grains, unsplit; grains splits - in the wet state including wet-blue 4104.19 - Other- in the wet state including wet-blue 4104.41 - Full grains, unsplit; grains splits -In the dry state crust: 4104.49 - Other - In the dry state (crust):
41.05:	Tanned or crust skins of sheep and lamb skins, without wool on whether or not split, but not further prepared. 4105.10 - In the wet state including wet-blue 4105.30 - In the dry state (crust) This heading covers the skins of sheep or lambs including those of crossed sheep and goats.
41.06:	Tanned or crust hides and skins of other animal, without wool or hair on, whether or not split, but not further prepared. 4106.21. - Of goats or kids in the wet state including wet-blue 4106.22 - Of goats or kids in the dry state including crust 4106.31. - Of swine in the wet state including wet-blue 4106.32 - Of swine in the dry state including crust 4106.40 - Of reptiles 4106.91 - Of other animals in the wet state including wet-blue 4106.92 - Of other animals in the dry state including crust
41.07:	Leather further prepared after tanning or crusting, including parchment- dressed, leather of bovine (including buffalo) or equine animals, without hair on, whether or not split, other than leather of heading 41.14. 4107.11 - Whole hides and skins full grains, unsplit 4107.12 - Whole hides and skins grains, split 4107.19 - Whole hides and skins other 4107.91. - Other including sides: full grains, unsplit 4107.92 - Other including sides: grains, split 4107.99 - Other
(41.08	Chamois (including combination chamois) leather is now included in chapter 4114.10)
(41.09	Patent Leather and patent laminated leather; metallised leather are now included in Chapter 4114.20)
(41.10	Parings and other waste of leather and leather composition leather, not suitable for the manufacture of leather article; leather dust, powder and flour are now included in 4115.20)
41.11	Composition leather with a basis of leather or leather fibre, in slabs, sheets or strips, whether or not in rolls; are now included in 4115.10
41.12	Leather further prepared after tanning or crusting, including parchment-dressed, leather of sheep or lamb, without wool on, whether or not split, other than leather of heading 41.14.
41.13	Leather further prepared after tanning or crusting, including parchment-dressed, leather of other animals, without wool or hair on, whether or not split, other than leather of heading 41.14. 4113.10 - Of goats or kid 4113.20 - Of swine 4113.30 - Of reptiles 4113.90 - Of others
41.14	Chamois (including combination chamois) leather: patent leather and patent laminated leather; metallised leather 4114.10 - Chamois (including combination chamois) leather 4114.20 - Patent leather and patent laminated leather; metallised leather
41.15	Composition leather with a basis of leather or leather fibre, in slabs, sheets or strips, whether or not in rolls; parings and other waste of leather or of composition leather, not suitable for manufacture of leather article; leather dust, powder and flour. 4115.10 - Composition leather with a basis of leather or leather fibre, in slabs, sheets or strips, whether or not in rolls; 4115.20 - Parings and other waste of leather or of composition leather, not suitable for manufacture of leather article; leather dust, powder and flour.

1 The Standard International Trade Classification (SITC) and the Harmonized Commodity Description and Coding System (HS) are currently the most common trade classifications used by national statistical offices to report on trade flows, although some counries in Latin America and Africa still use the Custom Cooperation Council Nomenclature (CCCN). Over the years the former two classification systems have undergone a number of modifications aimed at removing the inherent conflict between a classification for customs purposes (CCCN) and one for analytical purposes (SITC). These revisions resulted in the development of the HS which has added more levels of detail to the CCCN nomenclature, and led to two substantive revisions in the SITC classification.