EUROPEAN COMMISSION
DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
International Affairs and Tariff matters
HS Convention, combined nomenclature, tariff classification
Brussels, 27 July 2005
TAXUD-B3/HM/cd D(2005) 8408
CUSTOMS CODE COMMITTEE
TARIFF AND STATISTICAL NOMENCLATURE SECTION
Report of the conclusions of the 376th meeting of the Committee
(CN Sector)
Please find, herewith, the summary of the conclusions of the 376th meeting of the Tariff and
Statistical Nomenclature Section (CN Sector) of the Customs Code Committee, held in
Brussels on the 14th and 15th of July 2005.
(signed)
Jean-Jacques Belliardo
Acting Head of Unit
c.c.
Delegates (Member States) to the Tariff and Statistical Nomenclature
Section (CN Sector) of the Customs Code Committee
Mr. Verrue, Director General
Messrs. Arnal, TAXUD/B, and Zielinski, TAXUD/C
Head of Units TAXUD/B and TAXUD/C
Customs attachés of the Member States
Delegates to the Customs Policy Group (Deputies)
http://regcom.sg.cec.eu.int
Messrs. Delcroix, Molegraaf, Mrs. Mata (TAXUD)
1
EUROPEAN COMMISSION
DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
CUSTOMS POLICY
Customs Tariff
Brussels, 27/07/2005
Limited
Customs Code Committee
Tariff and Statistical Nomenclature Section
Report of the conclusions of the 376th meeting of the Committee
(CN Sector) held in Brussels on the 14th and 15th July 2005.
AGENDA
1.
Adoption of the agenda.
2.
Items submitted to the Committee for examination under Article 8 of Regulation
(EEC) No 2658/87:
2.1.
Proposal to amend the Combined Nomenclature – Possible amendment of Annex 7
("quotas") – (TAXUD/609/2005-Rev1)
2.2.
Proposal to amend the Combined Nomenclature – Possible deletion of CN codes
for certain cheeses (TAXUD/622/2005).
2.3.
Proposal to amend the Combined Nomenclature – Possible introduction of CN
codes for Gamma-butyrolactone -GBL- (CN code 2932 29 60) and Butane-1,4-diol
((CN Code 2905 39 25) (Doc CNC/STAT 5870 - gamma-Butyrolactone and Doc
CNC/STAT 5877 - butane-1,4-diol)
2.4.
Proposals to amend the Combined Nomenclature – Possible deletion of end-use
lines for civil aircraft and goods for use in civil aircraft (TAXUD/614/2005-REV1;
TAXUD/614/2005-Annex II-Rev1)
2.5.
Draft 2006 Combined Nomenclature (Document TAXUD/653/2005 + Annexes)
2.6.
Draft CN Explanatory notes – Consolidated version (TAXUD- Eurostat/507/2005
+ ADD);
2.7.
HS/CN 2007 Transposition – (TAXUD/537/2005 – Reading of chapters 66-83, 86-88
& 91-97).
3.
Items submitted to the Committee for its opinion under Article 9 of Regulation
(EEC) No 2658/87:
3.1. The Committee will be asked to vote on the draft CN 2006 resulting from the
examination made under items 2.1 to 2.5 above - draft Commission Regulation
amending Annex I to Council Regulation (EEC) No 2658/87.
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3.2. The Committee will be asked to vote on the draft CN explanatory notes –
consolidated version resulting from the examination made under item 2.6.
4.
Any other business
ANNEX:
I
List of participants
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1.
Adoption of the agenda:
All Member States, except one, were present. One candidate country was also
present.
All language versions of document TAXUD/653/2005 + Annexes were
distributed.
The agenda was adopted as read.
2.
Items submitted to the Committee for examination under Article 8 of Regulation
(EEC) No 2658/87:
2.1.
Proposal to amend the Combined Nomenclature - Possible amendment of Annex 7
("quotas") – (TAXUD/609/2005-Rev1)
COM explained the background to the proposal concerning Annex 7 ("Quotas")
of the CN. Deletion of this Annex (because of its informative nature) had to be
postponed until the agricultural legislation making reference to Annex 7 could be
amended. In the meantime, COM proposed to modify Annex 7 by inserting the
following sentence in column 6 of the Annex for all the quotas: "Qualification for
the quota is subject to the conditions laid down in the relevant Community
provisions".
After discussion and suggestion from one MS, it was decided to insert the abovementioned sentence, in principle, on the main page (under the main title of Annex
7) and to delete the aforesaid sentence whenever it appears in column 6.
Depending on the outcome of the examination of the agricultural legislation, a
new working document, proposing the deletion of annex 7 as initially foreseen,
will be elaborated and presented to a future Committee.
2.2.
Proposal to amend the Combined Nomenclature – Possible deletion of CN codes
for certain cheeses (TAXUD/622/2005).
COM explained the proposal for the possible removal of CN codes 0406 90 02 to
0406 90 06 for certain cheeses. The reason behind this proposal is that other
legislation has made the use of these codes obsolete; furthermore the products at
stake are now part of the bilateral agreement with Switzerland.
All MS agreed with the proposal but some misprints in the working document
were pointed out. COM will correct the final document containing the draft 2006
CN.
As a result, it was also agreed to delete additional note 02 to Chapter 04.
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2.3.
Proposal to amend the Combined Nomenclature – Possible introduction of CN
codes for Gamma-butyrolactone-GBL- (CN code 2932 29 60) and Butane-1,4-diol
((CN Code 2905 39 25) (Doc CNC/STAT 5870 - gamma-Butyrolactone and Doc
CNC/STAT 5877 - butane-1,4-diol)
COM explained the background to this proposal, jointly presented by the French
and Swedish administrations, for the insertion of two new CN codes in chapter 29
for two chemical substances (Gamma-butyrolactone -GBL- and Butane-1,4-diol)
(usefulness of obtaining statistical data for these products that can be used as
narcotics). Some MS presented their objections and doubts about the usefulness
of this measure for fighting fraud. COM explained that this measure would be
only one of the many tools used in the surveillance of these products and it would
contribute to the knowledge of trade flows.
After discussion, the proposal was approved by a majority of MS with the
following reservation: MS requesting the measures will report to the Committee
on the situation.
2.4.
Proposals to amend the Combined Nomenclature – Possible deletion of end-use
lines for civil aircraft and goods for use in civil aircraft (TAXUD/614/2005-REV1;
TAXUD/614/2005-Annex II-Rev1)
COM presented the proposal for the possible removal of "End-Use" lines for civil
aircraft and goods for use in civil aircraft from the CN. COM explained that
technical considerations and remarks made by MS in the various earlier
Committees or sent to COM had been included in the document.
Two MS explained that –albeit being in favour of the proposal- they needed more
time to implement all changes in their statistical/national systems; they proposed
to postpone the deletion of end-use lines until 2007.
One MS pointed out that many BTI's would have to be amended due to the
change of numbering in CN codes.
As a strong majority of MS were in favour of the proposals, COM asked MS to
consider the following options: remove the "End-Use" lines for civil aircraft and
goods for use in civil aircraft in January 2006 or wait until 2007 and implement
both the HS 2007 and the removal of end-use lines together.
After discussion, a majority of MS indicated their preference to implement the
measure in 2006 (265 for, one MS against, one MS abstaining).
2.5.
Draft 2006 Combined Nomenclature (Document TAXUD/653/2005 + Annexes):
The proposal presented was read chapter by chapter.
EUROSTAT summed up the proposals included in the draft CN 2006 (Chapter
20 –canned tropical fruits, 40 –rubber-, 62 –deletion of some CN codes). MS
accepted these proposals.
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One MS recalled the question of the proposed deletion of CN code 8531 10 20.
COM indicated its willingness to propose the deletion of this CN code but
internal discussion would have to be carried out first. COM asked MS to send
opinions regarding this matter within fifteen days.
Other MS pointed out that subheading 8543 89 79 includes goods consisting of
components included in other headings for which Court rulings exist. Thus, this
heading should remain empty. COM replied that this has to be seen in the broader
context of all the divergences of classification of ITA-products but agreed that a
proposal should be made to the Committee for 2007, if not for the whole ITA
questions –this last question depending also on the findings in the WTO- , then at
least for the ones for which rulings exist.
Other remarks were made by MS and taken into account by the COM for the final
document.
Commission will put the revised versions on CIRCA.
2.6.
Draft CN Explanatory notes – Consolidated version (TAXUD- Eurostat/507/2005
+ ADD)
COM thanked all MS for their contributions in elaborating this draft in the
various linguistic versions. Special mention was also made of the efforts made by
new MS administrations in translating this volume. This work has allowed the
COM to put this consolidated version on the agenda for discussion and vote.
The Committee went through the document and some minor adjustments were
made.
CN Explanatory Notes, adopted before the publication of this consolidated
version, will be inserted.
One MS indicated that, when published, the consolidated version will not be in
phase with the newly adopted CN 2006 and suggested that the consolidated
version should be published at the beginning of the year. COM answered that the
situation is exceptional due to the accession and the necessity to publish, for the
first time, in 19 languages but that the idea should be kept in mind for the next
version, especially taking into consideration the introduction of the HS 2007.
2.7.
HS/CN 2007 Transposition – (TAXUD/537/2005 – Reading of chapters 66-83, 86-88
& 91-97).
Before examining the document, COM explained the current situation regarding
the 'project group' for transposition of chapters 84, 85 and 90. 5 MS had already
communicated their wish to participate in the working group and the deadline
fixed by COM for showing interest in participating was fixed at one week after
the meeting (Note: Other requests for participation were received directly after
the meeting; the project group will therefore consist of the following MS: CZ;
DE; DK; FR; IT; MT; NL; PL; UK).
Referring to the transposition of chapters 28, 29, 38, COM explained that
discussions will take place in the Agri-Chemical Committee on the 7th and 8th of
October 2005.
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Document, TAXUD/537/2005, was examined chapter by chapter. COM asked
MS to send comments and a new revised version will be made available and
published on CIRCA.
3.
3.1.
Items submitted to the Committee for its opinion under Article 9 of Regulation
(EEC) No 2658/87:
The Committee was asked to vote on the draft CN 2006 resulting from the
examination made under items 2.1 to 2.5 above - draft Commission Regulation
amending Annex I to Council Regulation (EEC) No 2658/87.
The draft of the 2006 Combined Nomenclature was adopted by a qualified
majority (265 in favour, 1 MS against (27votes) and 1 MS abstained (29 votes).
Linguistic reservations were made by delegations in order to allow for
proofreading of their own language versions. COM asked MS to forward all
linguistic corrections by the end of August at the latest in order to elaborate a
final document to be approved by the Commission.
3.2.
The Committee was asked to vote on the draft CN explanatory notes –
consolidated version resulting from the examination made under item 2.6.
The draft CN explanatory notes – consolidation version – was adopted
unanimously (321 in favour). All MS approved the proposal with the different
linguistics reservations.
COM asked MS to send back, by email, all linguistic corrections by the end of
September.
4.
Any other business:
– Export of EU cheeses to NO (Definition of "net weight" as regards certain
cheeses in brine). COM explained that NO has admitted a change in custom
practice while stressing that the NO tariff provisions imply that “net weight”
includes liquids (brine or marinade are not packaging). COM has stressed to
NO the prejudice to preferential trade and proposed several ways ahead to
address the issue (TRQ increase at the next art 19 negotiations; adjustment to
be made to the CN as regards non-preferential trade; clarification as regards
preferential trade, before resumption of art 19 negotiations, to be brought to
the Agreement thanks to an exchange of letters, specifying that the drained
weight has to be used for TRQ calculation). However, possible way out
depends to some extent on the outcome of the administrative appeal put
forward by Norwegian importers against customs. Therefore, it may be
premature to act unilaterally at CN level.
– One Delegation reminded that MS should refrain from issuing BTIs for
products when their classification was on the agenda of the Customs Code
Committee for discussion. By issuing a BTI, which may be divergent,
Customs from other MS are likely to face problems. The MS in question
called upon the respect of the guidelines issued. COM indicated that this
matter could be a possible subject for discussion in the Head of Tariff Unit
Seminar to be held in December and invited MS to send their comments to
COM (TAXUD B/3).
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– The same Delegation asked for information about the dates of two Seminars.
COM indicated that one will be held on the 30th and 31st of August (AGRICHEMI; Lithuania) and the other one from the 5th to 9th of September
(Germany). Customs 2007 coordinators in the national administrations would
be in a position to give any further details.
– One MS explained that Annex I of Regulation (EC) No 705/2005 (regulation
amending or repealing some classifications regulations) was incomplete in the
sense that the reasons column of the classification regulations were not yet
amended, thus leading to some legal uncertainty. COM answered that there is
a general problem of updating all legislation containing CN codes. COM
understood the comments as a wish to "consolidate" these classification
regulations, task which needs a lot of resources. However, a working
document containing the comments made by the delegation will be
elaborated. COM also invited other MS to comment in order to make the
document as complete as possible.
– CN, Preliminary Provisions, SECTION II, SPECIAL PROVISIONS, letter A:
"Goods for certain categories of ships, boats and other vessels and for drilling
or production platforms": COM brought to the Committee's attention that, at
the 371st Customs Code Committee (TARIC sector), one MS asked the
Commission to check the feasibility of giving a list of products for which duty
free suspensions are granted. This request would make the automated
clearance of such goods possible. COM indicated that although feasible in
theory, such a task would be time-consuming and would necessitate the help
of MS's experts. It has also to be noted that being a tariff suspension, the
Council may have to be involved. COM asked MS to inform the Commission
before end of September on their opinion on this matter.
– One MS reminded COM that, in their opinion, the preliminary provisions of
the CN would need to be modernised. COM agreed but explained that the
modification of the CN Preliminary Provisions will be a complex task and
that any suggestion made by MS would be welcome. Two MS reminded the
Committee that they are jointly working on a document containing proposals
for modifying the CN Preliminary Provisions. That document will be
presented in the Head of Unit Seminar to be held in December.
– Miscellaneous corrections:
 Report of the 365th of the Tariff and Statistical Nomenclature Section (CN
Sector) of the Customs Code Committee, held in Brussels on 14 and 15
March 2005: On page 7, paragraph n° 3, instead of "2204 29 77 in the CN
2006", read 2204 21 81 in the CN 2005"
 Report of the 371st meeting of the Tariff and Statistical Nomenclature
Section (CN Sector) of the Customs Code Committee, held in Brussels on
the 1st of June 2005, in annex I, list of participants:
instead of " Held in Brussels on the 1st of March 2005" read "Held in
Brussels on the 1st of June 2005"
After Italy, insert " Ireland Permanent Representation (Customs)"
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ANNEX I
List of participants
376th meeting of the Tariff and Statistical Nomenclature Section (CN Sector) of the
Customs Code Committee
Held in Brussels on the 14th and 15th of July 2005
Chair:
Mr. Delcroix
Member States:
Belgium
Ministerie van Financiën / Douane.
Nationale Bank van Belgie (Statistics)
Czech Republic
General Directorate of Customs
Czech Statistical Office
Denmark
Ministry of Taxation
Denmark Statistical Office
Germany
Bundesministerium der Finanzen
Statistisches Bundesamt
Estonia
Estonian Tax and Customs Board
Greece
Ministry of Economy and Finance
Spain
A.E.A.T. (Customs)
A.E.A.T. (Statistics)
France
Ministère de l'Economie et des Finances (Customs)
Ministère de l'Economie et des Finances (Statistics)
Ireland
Permanent Representation (Customs)
Italy
Agenzia delle Dogane (Customs)
ISTAT (Statistics)
Cyprus
Customs and Excise Department
Latvia
Permanent Representation
Lithuania
Customs Department
Statistics Department
Hungary
Hungarian Customs and Finance Guard (Customs Directorate)
Malta
Customs Department
Nederlands
Ministerie van Financiën
Austria
Bundesministerium für Finanzen
Poland
Ministry of Finance
Ministry of Economic Affairs
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Portugal
DGAIEC (Min. Finanças) (Csutoms)
INE (Statistics)
Slovenia
Customs Administration
Statistical Office.
Slovakia
Customs Directorate of Slovak Republic
Finland
Board of Customs (Customs)
Board of Customs (Statistics)
Sweden
Swedish Customs
Swedish Statistics
United Kingdom
HM Revenue & Customs
HM Revenue & Customs
Non Member States:
Romania
Douanes (Customs)
Commission:
Mr. Molegraaf, Mrs. Mata Inesta TAXUD/B3
MM. Jouangrand (14th), Patermann ESTAT/F2
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