Meeting of the OSJD Commission on Freight Traffic to consider the subjects “Updating the Harmonised Nomenclature of Goods (GNG)” and “Updating the Catalogue of Freight Stations of the OSJD Railways”

04.04.202210:16

From 22 till 25 March 2022, in accordance with the Work Plan of the OSJD Commission on Freight Traffic for 2022, a meeting was held in a videoconferencing mode (OSJD Committee, Warsaw) to consider the topics “Updating the Harmonised Nomenclature of Goods (GNG)” and “Updating the Catalogue of Freight Stations of the OSJD Railways” (hereinafter referred to as the meeting), which was attended by the representatives of the following railways of the OSJD member countries: Azerbaijani Railways CJSC (AZD CJSC), Afghanistan Railway Authority (ARA), Byelorussian Railway (BC), Vietnamese Railway State Company (VZD), Georgian Railway JSC (GR), “Kazakhstan Temir Zholy National Company” JSC (KZH), China State Railway Corporation (KZD), Korea Railroad Corporation (KORAIL), “Kyrgyz Temir Zholu National Company” State Enterprise (KRG), Latvijas dzelzceļš SJSC (LDZ, Latvian Railway), Lietuvos geležinkeliai JSC (LTG, Lithuanian Railways), Railway of Moldova State Enterprise (CFM), Ulan-Bator Railway JSC (UBZD JSC), Russian Railways OJSC (RZD OJSC), “Rohi Ohani Tojikiston” State Unitary Enterprise (TDZ, Tajik Railway), “O’zbekiston temir yo’llari” JSC (UTI, Uzbek Railways), Ukrainian Railway JSC (UZ), “Czech Railways Cargo” JSC (CD Cargo), Estonian Railway JSC (EVR); OSJD affiliated enterprises – CTM LLC, Unicom Transit JSC and PLASKE JSC, as well as the President of the UIC Steering Committee on NHM/DIUM issues and representatives of the OSJD Committee. Zubaida Aspayeva, Chairperson of the OSJD Commission on Freight Traffic, addressed the meeting participants with a welcoming speech and thanked everyone for participating in the meeting to consider and make decisions on important and practical issues related to updating the GNG and the Catalogue of Freight Stations of the Railways of the OSJD Member Countries, in order to ensure the smooth organisation of the transportation of goods in international traffic, wishing the participants of the meeting fruitful and successful work. As part of the agenda the following items were considered:

- implementation of the decisions of the final meeting of the OSJD Commission on Freight Traffic on the subjects “Updating the Harmonised Nomenclature of Goods (GNG)” and “Updating the Catalogue of Freight Stations of the OSJD Railways” (12-15 October 2021, OSJD Committee, Warsaw, in videoconferencing mode);

- information on the results of the annual meeting of the UIC Steering Committee on NHM/ DIUM issues (16-17 February 2022, in videoconferencing mode);

- consideration of proposals from the railways of the OSJD member countries on:

  • updating GNG,
  • harmonisation of GNG and NHM in 2022,
  • updating the Catalogue of Freight Stations of the OSJD Railways.

The Chairperson informed the meeting participants that the OSJD Committee, as the GNG depositary, announced by an official notice the entry into force from 1 June 2021 of amendments and additions into the Harmonised Nomenclature of Goods (GNG), approved at CGD meeting XXXVI (19-23 April 2021, OSJD Committee, Warsaw, in videoconferencing mode), while an updated text of the GNG was published as of 1 June 2021, the layout of which was prepared by the GNG leading duty holder – Russian Railways OJSC with the participation of the working staff of the Commission, which was sent to all railways of the OSJD member countries, concerned OSJD observers and affiliated enterprises in electronic form, as well as its certified copy. The GNG text as of 1 June 2021 has been posted on the OSJD Website (https://https://osjd.org/).

When considering the implementation of the decisions of the Minutes of the final meeting of the OSJD Commission on Freight Traffic on the issues of improving and updating the GNG and updating the Catalogue of Freight Stations of the OSJD Railways (12-15 October 2021, OSJD Committee, Warsaw, in videoconferencing mode), it was noted that:

- the leading duty holder prepared a draft paper of amendments and additions to the GNG version of 2022 based on the analysis of the following materials: the official electronic version of the Combined Nomenclature of the EU (CN 2022), which entered into force on 1 January 2022, the corresponding tables of the CN 2021/2022, a comparative analysis of NHM differences 2021/2022 and NHM version 2022 and changes to the Harmonised Commodity Description and Coding System (HS) of the World Customs Organisation (WCO).

In January 2022, the OSJD Committee received from the President of the UIC Steering Committee on NHM/DIUM issues the following documents: comparative tables of NHM 2021/2022 differences, draft electronic version of NHM 2022 in Excel format, Access database in English, German and French languages, electronic version of the NHM project 2022, which were subsequently sent to the leading duty holder and used in the preparation of the draft paper of the GNG amendments and updates.

The meeting participants were informed about the outcomes of the annual meeting of the UIC Steering Committee on NHM/DIUM issues, held on 16-17 February 2022 in a videoconferencing mode.

During the meeting, the Report of the President of the UIC Freight Steering Committee on NHM/DIUM issues (UIC SC) was delivered, which presented the progress of work to bring in line the NHM version of 2021. The changes and amendments into this NHM version came into effect on 1 May 2021. There were no problems with the introduction of these changes and amendments within the European railways.

Based on the materials provided by Eurostat, in January 2022, the data concerning updates and amendments into the NHM version of 2022 were entered into the Access database; in addition, tables were also compiled in Excel format in the official languages (English, German and French), as well as a comparative table of changes introduced in 2021/2022 was prepared. The new data were published on the UIC Extranet website and sent to the OSJD Committee and the leading duty holder in January 2022.

The updates and amendments into the NHM, approved at the annual meeting of the UIC SC, will come into force on 1 May 2022. The text of the NHM version of 2022 was published on the UIC website in March 2022.

President of the UIC Steering Committee on NHM/DIUM Rocsana Simoiu informed that she would send a corresponding letter to the OSJD Committee and the leading duty holder informing about the entry into force of NHM version of 2022 as of 1 May 2022.

Based on the proposal of the UIC Working Group on NHM (UIC NHM Support Group) regarding the migration of the UIC Leaflet No. 221 into the IRS solution No. 20221 “Harmonised Commodity Code (NHM)”, the UIC SC, without any changes, approved last year the migration of this Leaflet into the IRS format. Thus this migration has been completed.

During the annual meeting of the UIC SC, the OSJD delegation raised the issue of establishing a code for international postal items transported in freight wagons. The UIC SC President Rocsana Simoiu noted that this issue would be proposed for consideration at the meetings of the UIC NHM Working Group (UIC NHM Support Group).

At the meeting, the OSJD delegation proposed to reconsider the issue of bringing the Combined Nomenclature of the EU Customs Union (CU) in line with the Commodity Nomenclature for Foreign Economic Activities of the Eurasian Economic Union (CN FEA EAEU). In order to correctly classify the commodities when transporting goods in international traffic, the leading developer conducted an analysis of the compliance of the Combined Nomenclature of the Customs Union of the EU (CN) and the Commodity Nomenclature for Foreign Economic Activities of the Eurasian Economic Union (CN FEA EAEU). As a result, a discrepancy was found between these nomenclatures for more than 700 values (there were no codes in one of the nomenclatures, different percentages of the composition of freight components under the same code, etc.).

During the meeting, the President of the UIC Steering Committee on NHM/DIUM Rocsana Simoiu was provided with the information about the changes in the NHM version of 2022.

It was noted that the changes in NHM-2022 were made on the basis of the adopted updates in the Harmonised Commodity Description and Coding System of the World Customs Organisation (WCO) and in the Combined Nomenclature of the EU Customs Union – CN.

The NHM received 1128 updates in 2022, with 299 items more in the 2022 version as compared to the version of 2021.

The updates in the NHM were as follows: 665 items removed, 827 items added, 465 items split, as well a number of items changed or moved to sub-items.

In her speech, Rocsana Simoiu made note of the fruitful cooperation between the UIC and the OSJD, which is carried out at a high professional level and in the interests of both Organisations.

Also during the meeting, Rocsana Simoiu provided information about UIC IRS No. 20221 “Harmonised Commodity Code (NHM)” for review.

During the meeting it was noted that the materials provided by the UIC NHM President (the 2022 NHM electronic version and the Excel table in English, German and French languages, as well as the comparative table with the NHM changes for 2021-2022) were used in the preparation of the draft paper of amendments and updates into the GNG version of 2022.

Rocsana Simoiu also put forward an initiative to hold a working meeting with representatives of the Customs Administration of the European Commission (TAXUD) to discuss the issue of harmonising the Combined Nomenclature of the Customs Union of the EU (CN) and the Commodity Nomenclature for Foreign Economic Activities of the Eurasian Economic Union (CN FEA EAEU) with the invitation of the representatives of OSJD and the Eurasian Economic Commission.

The UIC NHM President Rocsana Simoiu noted that the UIC NHM SC understands the importance of the issue raised, confirming the consideration of this issue by the experts at the meetings of the UIC NHM Working Group (UIC NHM Support Group).

The meeting Chairperson kindly requested that the President of the UIC NHM/DIUM Steering Committee send to the OSJD Committee in December 2022 the information on the planned updates and amendments into the NHM version of 2023 and relevant materials related to the updates (comparative tables, etc.) in order to update the GNG (development of a draft of changes and additions to the GNG, taking into account the introduced updates and amendments into the Combined Nomenclature of the EU Customs Union (CU)), for the preparation of a draft GNG version of 2023.

The meeting participants have deemed it expedient to participate in 2023 of the leading duty holder, representatives of concerned OSJD railways, OSJD affiliated enterprises and the OSJD Committee in the meetings of the UIC NHM Working Group (UIC NHM Support Group) and in the annual meeting of the UIC SC within the framework of cooperation between OSJD and UIC.

The meeting considered the draft amendments and updates into the GNG, developed by the leading duty holder on the basis of the draft NHM version of 2022, amendments to the Harmonised Commodity Description and Coding System of the World Customs Organisation (WCO HS) and to the European Union Combined Nomenclature (CN), introduced since 1 January 2022. Taking into account the proposals, comments and positions received from the KZH, KRG, LTG, CFM, TDZ, UZ and the OSJD Committee, as the GNG depository, the draft amendments and updates into the GNG were agreed.

The leading duty holder presented analytical materials and comparative tables regarding the comparison of changes in international classifications related to the transition to the WCO HS edition of 2022, as well as a reference table on the conformity of tropical wood nomenclature.

Having considered the proposals and comments of the “Ukrzaliznytsia” JSC on the draft amendments to the GNG, the meeting participants have agreed to introduce the amendments and updates into the “Notes to Section XI and to individual chapters of the GNG” of Annex 1 to the Foreword of the GNG regarding the notes to subposition 1509 30 of Chapter 15; to Chapter 30; to subheadings 4403 41-4403 49, 4407 24-4407 29, 4408 31-4408 39 and 4412 13-4412 99 of Chapter 44; to Chapters 55, 85, 86 and 87.

Having discussed the proposal of the OSJD Committee, as a GNG depository, on the issue of establishing a new GNG code for the carriage of postal items in a freight wagon, the meeting participants agreed on a new position and a new GNG code for postal items, namely the introduction of amendments and updates to Part 1 “List of Items”, in Part 2 “Analytical List of Goods”, in Part 3 “Alphabetical List of Goods” of GNG and in “Note to Chapter 99” of Annex 2 to the GNG Foreword.

The meeting participants have decided to include these agreed amendments and updates into the draft paper of amendments and updates to the GNG.

The meeting participants requested that the OSJD Committee submit an agreed draft paper of amendments and updates to the GNG for the approval by meeting XXXVII of the Conference of General Directors (Authorised Representatives) of OSJD Railways (2022) with effect from 1 June 2022.

During the meeting, a discussion took place on the issue of compliance of the GNG codes with the commodity codes in accordance with the Harmonised Commodity Description and Coding System of the World Customs Organisation (WCO HS) or the Commodity Nomenclature for Foreign Economic Activities of the Eurasian Economic Union (CN FEA EAEU).

The leading duty holder has given the following explanations.

The GNG was developed on the basis of the Harmonised Commodity Description and Coding System of the World Customs Organisation (WCO HS) and the Combined Nomenclature of the EU Customs Union (EU CN). The GNG complies with the Harmonised Commodity Code of the International Union of Railways (UIC NHM).

An eight-digit code is used to designate goods in the GNG. The first six figures correspond to the HS, of which:

- the first four digits identify the position, of which the first and second digits indicate the corresponding chapter, and the third and fourth digits indicate the serial number of the position in this chapter;

- the fifth and sixth digits identify the subposition of the commodity within the position.

The seventh and eighth characters are used to achieve special accuracy in describing the goods in accordance with the Combined Nomenclature of the EU Customs Union (EU CN).

The GNG codes at the level of at least the first six characters correspond to the codes of the Commodity Nomenclature for Foreign Economic Activities of the Eurasian Economic Union (CN FEA EAEU).

The amendments and updates into the GNG based solely on the WCO HS (1-6th code characters) are made only after changes are made to the HS, as a rule, once every five years.

The amendments and updates into the GNG, based on the EU CN (7-8th code characters), are introduced only after changes and additions are made in it, as a rule, annually as of 1 January.

The amendments and updates into the GNG are also introduced on the basis of changes and additions made to the NHM.

The meeting participants have deemed it necessary, within the framework of the meeting of the representatives of the Parties to the Agreement on the Uniform Transit Tariff (ETT) (17-20 May 2022, OSJD Committee, Warsaw, videoconferencing mode), to determine the tariff classes of the ETT for the commodities of GNG version 2022.

The meeting participants have requested that the OSJD Committee:

- post the GNG text as of 1 June 2022 in a PDF format on the OSJD Website (https://https://osjd.org/) no later than 1 June 2022;

- send to the railways of those OSJD member countries applying GNG, as well as to the concerned OSJD observers and affiliated enterprises, the GNG text as of 1 June 2022 in Word and PDF electronic formats no later than 5 June 2022;

- publish an updated version of the GNG as of 1 June 2022 and send, no later than 1 August 2022, to all railways of the OSJD member countries, concerned OSJD observers and affiliated enterprises, a certified copy of the GNG text, as well as its electronic version.

The meeting Chairperson informed about the work carried out by the railways of the OSJD member countries to update their data in the Catalogue of Freight Stations of OSJD Railways in accordance with OSJD Leaflet O 405 “Regulations for the introduction and follow up of the Catalogue of Freight Stations of OSJD Railways” (3rd edition).

During 2021 and from January to March 2022, the railways of the OSJD member countries updated the data contained in the Catalogue of freight stations.

The up-to-date Catalogue of Freight Stations of the OSJD Railways in a PDF format and the current text of OSJD Leaflet O 405 (as of 1 August 2020) have been posted on the OSJD Website.

The meeting participants again drew the attention of the railways of the OSJD member countries to the fact that the updated data on their railways is to be sent to the OSJD Committee in full in Word (all data is to be in a single file), PDF (for posting on the Website) and Excel formats (all tables are to be in a single file), with the amendments and updates highlighted, including the indication of dates, the updates were introduced, and their entry into force.

The importance was noted for the railways of the OSJD member countries to keep their data in the Catalogue of Freight Stations of the OSJD Railways up to date in connection with their use when filling in the SMGS and CIM/SMGS consignment notes. In addition, the updating of the Catalogue of Freight Stations of the Railways of the OSJD member countries is aimed at creating a single information space within the OSJD in the organisation of the carriage of goods in international traffic by rail.

The President of the UIC SC, Rocsana Simoiu, informed about the new version of DIUM – “Unified distance indicator for international freight traffic: Catalogue of railway stations. List of points of acceptance and transfer of goods” and about the procedure for checking the quality of data provided by the European railways in DIUM. DIUM contains the information about the stations, points of reception and departure, which are open for international traffic – codes and their characteristics; provides information for completing the consignment note. The tariff distances for shipments are set based on the distances taken from DIUM.

It was noted that the main reasons for the DIUM changes have become:

- TAF-TSI requirements;

- the need to fill in the Central Reference Files Database (CRD) with the “Subsidiary Loca- tions” codes; - the need for DIUM to take an important place among the working tools for railway transport undertakings (RTU) and customers.

The changes affected Section 1 “General”, which has included the following updates:

- in the codes of freight stations, which are the “Secondary Location Code”;

- in each code number of a freight traffic point, which is to contain the corresponding “Primary Location Code” in accordance with TAF-TSI;

- in each pick-up/delivery point, where the “primary location code” according to TAF-TSI is to be indicated for the freight traffic point with which the pick-up/delivery point is associated.

Besides, it has been noted that two editions of DIUM were prepared in 2021 (dated 1 July and 12 December 2021); UIC leaflet No. 219 on the preparation of DIUM is generally observed, the quality of information submission has improved.

In accordance with the decisions of the UIC General Assembly, the works are currently in progress to migrate this leaflet into the format of an international railway solution – IRS No. 20219, which has not been completed yet.

The meeting agreed to include into the draft Work Plan of the OSJD Commission on Freight Traffic for 2023 the activities associated with the subjects “Updating the Harmonised Nomenclature of Goods” and “Updating the Catalogue of Freight Stations of the OSJD Railways”.

The meeting Chairperson has expressed her gratitude and appreciation to the delegations of the railways of the OSJD member countries and the participants of the meeting for the work performed at a high professional level when considering the agenda items and taking the agreed decisions.

The meeting participants noted a high level of organisation and conduct of the meeting using a videoconferencing format.