European Parliament



[pic] |EUROPEAN COMMISSION

DIRECTORATE-GENERAL

TAXATION AND CUSTOMS UNION

International Affairs and Tariff matters

HS Convention, combined nomenclature, tariff classification

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Brussels, 8 January 2007

TAXUD B3 Adonis D 8003

CUSTOMS CODE COMMITTEE

TARIFF AND STATISTICAL NOMENCLATURE SECTION

Summary of conclusions of the 407th meeting of the Committee

(Mechanical/Miscellaneous Sector)

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|[pic] |EUROPEAN COMMISSION |

| |DIRECTORATE-GENERAL |

| |TAXATION AND CUSTOMS UNION |

| |International Affairs and Tariff matters |

| |HS Convention, combined nomenclature, tariff classification |

| | |

Brussels, 19 December 2006

Customs Code Committee

Tariff and Statistical Nomenclature Section

(Mechanical Sector)

Summary of Conclusions of the 407th meeting of the Customs Code Committee

held in Brussels from 18 to 20 October 2006.

Agenda

1. Approval of the agenda of the 407th meeting of the Customs Code Committee

2. Adoption of the Report of Conclusions of the 402nd meeting of the Customs Code Committee

3. Draft Commission regulations and CN Explanatory Notes submitted to the Committee for an opinion under Articles 9 and 10 of Regulation (EEC) No 2658/87, as amended by Article 252 of Regulation (EEC) No 2913/92:

3.1. Draft classification regulation: Agricultural machines (doc. TAXUD/0616/2006 Rev1)

3.2. Draft regulation: Dumpers (doc. TAXUD/0746/2006; ECJ-case C-396/02)

3.3. Draft classification regulation: Bathroom articles (doc. TAXUD/0770/2006)

3.4. Draft classification regulation: Electrical 2-wheeled vehicle (doc. TAXUD/0735/2006)

3.5. Draft classification regulation: Home cinema systems - Amplifier/tuner (doc. TAXUD/3013/2004 Rev. 6)

3.6. Draft classification regulation: Hygienic toilet seats (doc. TAXUD/0771/2006)

3.7. Draft explanatory notes: Satellite receivers with built-in modem (doc. TAXUD/0667/2006 Rev. 3)

3.8. Draft explanatory notes: HS headings 8471 and 8528 (doc. TAXUD/0666/2006 Rev. 3)

4. Items submitted to the Committee for examination under Article 8 of Regulation (EEC) No 2658/87, as amended by Article 252 of Regulation (EEC) No 2913/92:

Items for a first examination (fact-finding)

4.1. Portable air conditioners (doc. TAXUD/0774/2006 and TAXUD/0842/2006)

4.2. DVD burner (doc. TAXUD/0776/2006)

4.3. Portable DVD (doc. TAXUD/2732/2005)

4.4. Portable DVD player with TV (doc. TAXUD/0775/2006)

4.5. Heading 8701 vs 8703 - ECJ Case C-15/05: Kawasaki (doc. TAXUD/0796/2006)

4.6. Furniture: Tables (doc. TAXUD/0773/2006)

4.7. SODUKU player (doc. TAXUD/0769/2006)

4.8. Prefabricated buildings (doc. TAXUD/0777/2006)

4.9. Wind direction indicator (doc. TAXUD/0799/2006)

4.10 Ball-point pen with laser pointer (doc. TAXUD/0841/2006/)

4.11. Apparatus for hair removal by intense pulsed light (doc. TAXUD/0840/2006)

Items for conclusion

4.12. Draft Explanatory Notes: Vehicles for dual use (doc. TAXUD/0665/2006; TAXUD/0722/2006)

4.13. Wood screws/coach screws (doc. TAXUD/0692/2006)

4.14. Power supply units (doc. TAXUD/2083/2001; TAXUD/1342/2003; TAXUD/2495/2004)

4.15. Electrical accumulators (doc. TAXUD/0601/2006)

4.16. Optical receivers/transmitter (doc. TAXUD/0734/2006)

4.17. Clock radio of the digital type (doc. TAXUD/0651/2006)

4.18. Video wall (doc. TAXUD/0607/2006)

4.19. Telecommunication cables (doc. TAXUD/1953/2001; TAXUD/1954/2001; TAXUD/1614/2002Rev1)

4.20. Optical fibre cables (doc. TAXUD/0684/2006)

4.21. Collector vehicles – pieces (doc. TAXUD/0664/2006)

4.22. Roller skates (doc. TAXUD/0970/1999)

4.23. Terminal tractors (doc. TAXUD/1962/2002; ECJ Case C-495/03)

4.24. High speed digital camera (doc. TAXUD/0695/2006)

4.25. PDA+GPS (doc. TAXUD/0667/2005; TAXUD/0689/2005)

5. Any other business

▪ Court cases

▪ Other

ANNEXES

I List of participants

II Draft classification regulation on "Agricultural machines"

III Draft classification regulation on "Bathroom articles"

IV Draft classification regulation on "Home cinema systems - Amplifier/tuner"

V Draft classification regulation on "Hygienic toilet seats"

VI Draft CN Explanatory Notes on "Satellite receivers with built-in modem"

VII Draft CN Explanatory Notes on "HS headings 8471 and 8528"

VIII Statements on the classification of a "Portable air conditioners", "Video wall", "Wind direction indicator" and "Clock radio of a digital type"

1. Approval of the agenda

All Member States were represented.

The agenda was adopted as read.

2. Adoption of the Report of Conclusions of the 402nd meeting of the Customs Code Committee

The Report of Conclusions of the 402nd meeting of the Customs Code Committee was adopted as read with one correction (one MS gave notice to a typing error in the report – under point 3.3. Draft regulation: Dumpers – reference to "ECJ-case C-392/02" should be "ECJ-case C-396/02").

3. Draft Commission regulations and CN Explanatory Notes submitted to the Committee for an opinion under Articles 9 and 10 of Regulation (EEC) No 2658/87, as amended by Article 252 of Regulation (EEC) No 2913/92:

3.1. Draft classification regulation: Agricultural machines (doc. TAXUD/0616/2006)

Following some textual amendments, the Committee delivered a favourable opinion (qualified majority) on the draft Regulation reproduced at Annex II.

3.2. Draft regulation: Dumpers (doc. TAXUD/0746/2006); ECJ-case C-392/02)

The vote on this item was postponed for procedural reasons.

Draft Regulation to be presented for vote at a future meeting.

3.3. Draft classification regulation: Bathroom articles (doc. TAXUD/0770/2006)

Following some textual amendments, the Committee delivered a favourable opinion (qualified majority) on the draft Regulation reproduced at Annex III.

3.4. Draft classification regulation: Electrical 2-wheeled vehicle (doc. TAXUD/0735/2006)

The vote on this item was postponed for procedural reasons.

3.5. Draft classification regulation: Home cinema systems - Amplifier/tuner (doc. TAXUD/3013/2004 Rev. 6)

Following some textual amendments, the Committee delivered a unanimous favourable opinion on the draft Regulation reproduced at Annex IV.

3.6. Draft classification regulation: Hygienic toilet seats (doc. TAXUD/0771/2006)

Following some textual amendments, the Committee delivered a favourable opinion (qualified majority) on the draft Regulation reproduced at Annex V.

3.7. Draft Explanatory Notes: Satellite receivers (doc. TAXUD/0667/2006 Rev 2)

Following some textual amendments, the Committee delivered a favourable opinion on the draft Explanatory Note reproduced at Annex VI, with:

- for draft CNEN to CN codes 8528 12 90 to 8528 12 95 - unanimity.

- for draft CNEN to CN code 8528 12 91 – favourable opinion.

- for draft CNEN to CN codes 8528 12 98 - unanimity.

The vote on the first part of the proposal ("set top boxes incorporating a hard disk") was postponed for procedural reasons.

- general comments

The Chairman informed the Committee that the Commission services are working on the preparation of an autonomous duty suspension for certain types of set top boxes classifiable under dutiable headings. It is envisaged that that measure will be published at the same time as voted draft CNEN.

3.8. Draft Explanatory Notes: Video monitors – HS heading 8471 and 8528 (doc. TAXUD/0666/2006 Rev 2)

Following some textual amendments, the Committee delivered a unanimous favourable opinion on the draft Explanatory Note reproduced at Annex VII.

4. Items submitted to the Committee for examination under Article 8 of Regulation (EEC) No 2658/87, as amended by Article 252 of Regulation (EEC) No 2913/92:

Items for a first examination (fact-finding):

4.1. Portable air conditioners (doc. TAXUD/0774/2006 and TAXUD/0842/2006)

Facts:

Divergent BTI issued by MS.

Questions:

Classification under CN code 8415 10 10 as an air-conditioner of the window or wall type or under CN code 8415 82 00 "other"?

Conclusions:

All MS agreed to a clarification of the issue as reflected in the Committee statement in annex VIII.

4.2. DVD burner (doc. TAXUD/0776/2006)

Facts:

Chair presented the draft regulation as prepared by Project group on Digital apparatus (subgroup audio-video).

Headings that merit consideration: 8471, 8521 and 8543.

Questions:

Does the description sufficiently describe the product in question?

Should a reference keep to a "hard disc type" of camera be kept in the text?

Should a paragraph referring to software for an ADP be retained?

Some MS raised the question of whether a product that can read both DVDs and CDs can burn only DVDs or whether it can burn both?

The product can store a video from a camera and data from an ADP. Which legal reasoning should be used? Note 3 to Section XVI or Note 5 E) to Chapter 84?

Conclusions:

MS suggested deleting the reference to a "hard disc type" of camera because it could cause confusion.

As the software is delivered just for the ADP and one can work with the DVD burner without being connected to the ADP (and therefore without using this software), it was suggested that it should be checked whether it is necessary to retain this reference to software.

According the technical data sheets, the product can burn only DVDs.

Majority of MS would classify this product in heading 8521 (See also HSEN to heading 8521: "The heading also includes apparatus which record, generally on a magnetic disc, digital code representing video images and sound, by transferring the digital code from an automatic data processing machine (e.g., digital video recorders).")

Some MS would argues for classification under CN code 8471 90 00 (as a machine for transcribing … data, not elsewhere specified or included). One MS would classify this product under CN code 8471 70 as a "storage unit".

Action points:

A revised draft Regulation will be presented for a vote at a future meeting.

4.3. Portable DVD (doc. TAXUD/2732/2005)

Facts:

Chair presented the draft regulation as prepared by the Project group on Digital apparatus (subgroup audio-video).

Questions:

Interpretation of texts of headings 8521 and 8528. How should products with a screen (display) be classified (it was recalled that Regulation EC 1056/2006 classified a MP4 player incorporating a colour display in heading 8521)?

Is heading 8528 limited to "pure video monitors"?

As products incorporating a screen (display) can be classified both in heading 8521 and heading 8528 – what criteria for screen should be taken into consideration – the size of the screen, the resolution?

When classifying specific products which legal reasoning should be used:

- GIR 1 and 6?

- GIR 1 and 6 and Note 3 to Section XVI?

- GIR 1, 3b) and 6?

- GIR 1, 3c) and 6?

Conclusions:

Majority of MS would classify this product in heading 8521 using the same reasoning as in MP4 case (GIR 1 and 6 and Note 3 to Section XVI).

Some MS argued for classification in heading 8528.

Action points:

Revised draft regulation to be presented at future meeting.

4.4. Portable DVD player with TV (doc. TAXUD/0775/2006)

Facts:

Chair presented the draft regulation as prepared by the Project group on Digital apparatus (subgroup audio-video)

Questions:

Same questions as in a case of a portable DVD.

Conclusions:

Majority of MS would classify a Portable DVD player with TV in heading 8528 (majority of them using GIR 1 and 6, three of them GIR 1, 6 and Note 3 to Section XVI and two of them GIR 1, 3c) and 6.

Some MS argued for classification in heading 8521.

Action points:

A revised draft regulation shall be presented at a future meeting.

4.5. Heading 8701 vs 8703 - ECJ Case C-15/05: Kawasaki (doc. TAXUD/0796/2006)

Facts:

Following the ECJ ruling in Case C-15/05: Kawasaki – a draft CNEN has been prepared.

Action points:

Based on the comments received from MS during, and after, the meeting, a revised CNEN will be put on CIRCA for further discussion.

To be presented for a vote at a future meeting.

4.6. Furniture: Tables (doc. TAXUD/0773/2006)

Facts:

The case concerns tables made of different materials (e. g. frames made of wood, table tops made of glass) and covers 2 issues – simple tables and ornamental tables.

Some MS classify as a general rule tables according the top (some of them classify tables according to the support (legs and frame) when it is "ornamental"). Other MS argue for a general rule according to which classification would be determined by the constituent material of the support (legs and frame) (although some of those MS classify tables according to the top when they are "ornamental"). Some other MS classify these articles on a "case by case" approach using GIR 3 b).

Questions:

Which GIR to use - GIR 3(b) or 3(c)?

Is it possible to draw a borderline based on the "ornamental" character of a part of a table?

Conclusions:

Some MS would favour classification according to the table top unless the support has an ornamental character (nevertheless taking into consideration the value of the components). However, other would prefer classification according to the support (frame and legs). Two MS would apply a "case by case approach".

The issue concerns not only tables but also other types of furniture, e. g. wardrobes with a metal frame covered with fabric.

Action points:

Preparation of draft CNEN seems to be necessary.

4.7. SODUKU player (doc. TAXUD/0769/2006)

Facts:

Divergent BTI issued by MS - classification under CN code 9503 60 90 (as a puzzle), CN code 9503 90 32 (as other toy of plastics not mechanically operated) or CN code 9504 90 90 (as a game).

Description of the product has been drafted by the Project group on Chapter 95.

Previous classification regulations to be taken into consideration:

- Regulation 98/98 classifying a toy, representing a "virtual creature" which has to be kept "alive" by using the input buttons, under CN code 9503 90 32;

- Regulation 2882/83 classifying an electronic device in heading 9504, stating that the product has the essential character of an electronic game and as it provides for the player´s score to be displayed on the screen it is designed for competition against other players on the basis of the number of points scored;

- Regulation 981/98 classifying an "educational" toy under CN code 9503 90 32.

Questions:

How to define what is a "puzzle" and what is a "game"?

Is there any competitive element if the product is used by a single player (competition against an artificial opponent, against own skills or a chance)?

Conclusions:

Majority of MS would classify the product as a game.

The product can be considered as a "puzzle" in the form of an electronic game.

The term "game" also covers "one-player games".

Action points:

A draft regulation classifying the product under CN code 9504 90 90 will be prepared and presented for a vote at future meeting.

4.8. Prefabricated buildings (doc. TAXUD/0777/2006)

Facts:

The product in question is a prefabricated bathroom intended to be incorporated into complete buildings (houses, flats, hotels, etc.). It is made of light concrete and appears in the form of a “box” fully equipped with sanitary equipment.

HSEN provide a definition of what is considered to be "a prefabricated building" stating that: "separately presented parts of buildings and equipment, whether or not identifiable as intended for these buildings, are excluded from the heading and are in all cases classified in their own appropriate headings."

One MS classified this prefabricated bathroom as a prefabricated building in heading 9406 stating that this is a fully assembled and equipped complete building ready for immediate use. Another MS considers this to be only a part of a prefabricated building.

Questions:

Is a fully equipped prefabricated bathroom to be classified as a prefabricated building in heading 9406 or is this classification excluded and this item should be classified according to its constituent material?

If classified according to constituent material which components are to be taken into consideration (classification according to the material of the "box" which is made of - concrete– heading 6810 or according to the ceramic equipment (sanitary ware) – heading 6910)?

Conclusions:

Majority of the MS would not classify the product in heading 9406 as the bathroom can not be used on its own (reference was made to stand alone saunas). Statement would be sufficient for the MS concerned.

As for the constituent material according to which the product should be classified, the majority of MS would prefer classification according to the material the "box" is made of. MS that would not agree with this classification were invited to reflect on whether they need a legal measure or whether a statement would be sufficient.

Action points:

MS concerned are to inform the COM whether they need a legal measure.

If no need for a legal measure a statement will be prepared for a future meeting.

4.9. Wind direction indicator (doc. TAXUD/0799/2006)

Facts:

Divergent views on how to classify the product made of metal, approximately 125 cm in height, with the figure of a girl with an umbrella on top which points in the opposite direction from where the wind comes.

HSEN to heading 9015 refers to wind direction indicators, whether or not fitted with dials.

Questions:

Classification in heading 8306 as an ornamental product or in heading 9015 as a wind direction indicator?

Does the fact that the product is "ornamental" exclude its classification in heading 9015?

Does Chapter 90 cover only highly finished products for scientific and technical purposes?

(See HSEN to Chapter 90: "This Chapter covers a wide variety of instruments and apparatus which are, as a rule, characterised by their high finish and high precision. Most of them are used mainly for scientific purposes (laboratory research work, analysis, astronomy, etc.), for specialised technical or industrial purposes (measuring or checking, observation, etc.) or for medical purposes.")

Conclusions:

Even if the Chapter 90 generally covers more sophisticated instruments for technical purposes, there are also some exemptions for "less technical" products. (See also HSEN to Chapter 90: "There are certain exceptions to the general rule that the instruments and apparatus of this Chapter are high precision types. For example, the Chapter also covers ordinary goggles (heading 90.04), simple magnifying glasses and non-magnifying periscopes (heading 90.13), divided scales and school rules (heading 90.17) and fancy hygrometers, irrespective of their accuracy (heading 90.25).")

Regarding the ornamental feature/nature of the product, reference was made to HSEN to heading 8306 (Excluded from this heading are the instruments and apparatus of Chapter 90 - e.g., barometers and thermometers even if in an essentially decorative presentation.)

Therefore, because of the current HSEN to heading 9015, the majority of MS would classify even this simple and decorative wind direction indicator in heading 9015.

All MS agreed to a clarification of the issue as reflected in the Committee statement in annex VIII.

4.10 Ball-point pen with laser pointer (doc. TAXUD/0841/2006)

Facts:

A ball-point pen with a laser pointer was classified by some MS in heading 9013 as a laser and by other MS in heading 9608 as a ball point pen using different legal reasoning (GIR 1 and 6 or GIR 1, 3b) and 6)

Questions:

Are the products in question identical?

Which legal rules to be used for classification of such a product (GIR 1 and 6 or GIR 1, 3b) and 6)?

Is it feasible to provide guidance on how to determine the essential character of the product(s) under examination?

Conclusions:

More information needed.

Action points:

MS concerned were asked to check their BTI to see whether the products are identical or not.

MS that submitted the note was asked to provide the COM with the technical details of the products. This information will be distributed to other MS.

4.11. Apparatus for hair removal by intense pulsed light (doc. TAXUD/0840/2006)

Facts:

Divergent classification in MS:

- as a hair-removing appliance, with self-contained electric motor in heading 8510 or

- as a machine having an individual function in heading 8543.

Various types of hair removal apparatus exist:

- type containing an electric motor that functions physically in the hair removing process,

- type using IPL (intense pulsed light) technology for removing hair and containing electric motor that serves e.g. for the cooling,

- type using IPL technology and not containing the electric motor.

For the second type there are divergent views on how to classify it.

Questions:

Is it necessary for the electric motor to physically take part in the hair removing process?

Conclusions:

Headings that merit consideration: 8510, 8543, 9013 or 9018.

More information on the product needed.

Action points:

MS concerned were asked to check their BTI.

More information on the product will be provided by MS – will be uploaded on CIRCA when received.

Items for conclusion

4.12. Draft Explanatory Notes: Vehicles for dual use (doc. TAXUD/0665/2006; TAXUD/0722/2006)

Facts:

The draft CNEN as prepared by Project group on vehicles and redrafted following the comments from MS was presented by the Chairman.

For the ""pick-up" type of vehicle:

One MS suggested not using the "wheel-base criterion" but to use a "weight criterion" instead.

Another MS suggested using the maximum length limitation.

A third MS suggested not referring to the inner length of the vehicle.

It was suggested that the car industry should be consulted before making a decision about which percentage (40%, 45 % or 50 % - percentage of the load area compared to the length of the wheelbase) should be used.

Questions:

Which percentage should be used for a pick-up type of vehicle?

Conclusions:

The comments of MS will be taken into consideration when preparing the revised draft.

Action points:

MS that have not informed the COM on their preferred percentage and have not yet completed the table available on CIRCA were invited to do so.

4.13. Wood screws/coach screws (doc. TAXUD/0692/2006)

Facts:

Different opinions exist among MS on how to distinguish between coach screws of CN code 7318 11 00 and "other" wood screws of subheading 7318 12

Commission Regulation (EC) No 771/2005 of 20 May 2005 imposes a provisional anti-dumping duty on imports of certain stainless steel fasteners and parts thereof (also fasteners of CN code 7318 12 10 but not 7318 11 00).

One MS had suggested using DIN norms for distinguishing coach screws from "other" wood screws stating that current CNEN do not provide sufficient information and other MS classify any large screw as a coach screw. Consequently, an additional document (TAXUD/0692/2006Addendum) with information on DIN norms and images of the products has been issued.

Questions:

How to define a coach screw (based on the DIN norm or on physical appearance of the screw, e. g. square or hexagonal cap for a wrench)? Where is the borderline between CN code 7318 11 00 and HS subheading 7318 12?

Conclusions:

Two samples of screws and texts of the DIN norm were presented. However, there seems to be a linguistic problem. In German the term "coach screw" is more restrictive (only the bigger of the two samples would be considered as a coach screw) than in English or French (both samples to be considered as coach screws). Majority of the MS would classify both samples as coach screws.

Action points:

If this linguistic problem cannot be solved preparation of a CNEN is envisaged.

DG TAXUD will inform DG TRADE (antidumping) about the issue and seek its views

4.14. Power supply units (doc. TAXUD/2083/2001; TAXUD/1342/2003; TAXUD/2495/2004)

Facts:

Classification of multiple use power supply units.

CN codes that merit consideration:

- 8504 40 30 - static converters of a kind used with telecommunications apparatus, automatic data-processing machines and units thereof

- 8504 40 90 - other static converters (more restrictive interpretation)

DG ENTR and DG TRADE were consulted – they favour the more restrictive interpretation.

Questions:

Some MS raised the question of how to distinguish between those that are used solely with telecommunication apparatus, ADPs and units thereof and those which can be used both with the abovementioned apparatus as well as other products (multifunctional types) and asked also whether multifunctional types should be classified under CN code 8504 40 30?

Conclusions:

Current CNEN already give some technical criteria for goods falling under CN code 8504 40 30.

The intention of the current draft is to state that power supply units dedicated to multipurpose use are not considered to be of a kind used with telecommunication apparatus, automatic data-processing machines and units thereof.

4.15. Electrical accumulators (doc. TAXUD/0601/2006)

Facts:

Current contacts between WCO Sector and third country concerned.

Conclusions:

When COM receives the reply from the third country further steps will be considered.

4.16. Optical receivers/transmitter (doc. TAXUD/0734/2006)

Facts:

When discussed at last meeting, classification in headings 8517 and 8525 was excluded.

Headings still remaining under consideration are: 8541, 8543 and 9013.

Technical documentation available on CIRCA and MS have been invited to comment on the issue.

Questions:

Is it a laser product or an optical product?

Is the product a laser or a laser diode?

Conclusions:

The technical details should be checked and the description of the product prepared.

It was also mentioned that due to the change of the structure of the CN, heading 8517 can be applicable from 1. 1. 2007 – to be examined.

4.17. Clock radio of the digital type (doc. TAXUD/0651/2006)

Questions:

How to distinguish between alarm clock radios and others?

Conclusions:

All MS agreed to a clarification of the issue as reflected in the Committee statement at annex VIII.

4.18. Video wall (doc. TAXUD/0607/2006)

Questions:

How to classify a product consisting of a screen and a projector unit in a single housing and is equipped with an S-video interface? The video projector is behind the screen and the image is projected on an internal surface but viewed on an external surface.

Some MS would classify this product under CN code 8528 21 90 as a video monitor; other MS under CN code 8528 30 05 as a projector

Conclusions:

It was stated that new HSEN will clearly state that there has to be projection on to an external surface in order that the product can be classified as a projector.

All MS agreed to a clarification of the issue as reflected in the Committee statement at annex VIII.

4.19. Telecommunication cables (doc. TAXUD/1953/2001; TAXUD/1954/2001; TAXUD/1614/2002Rev1)

Facts:

Interpretation of the term "telecommunication" is necessary.

Question:

Apart from the fact that the legal text does not refer to ADP machines and units thereof, how can one distinguish between those dedicated to "telecommunication" and those for "ADP"?

Action points:

Draft CNEN to be presented at a future meeting.

4.20. Optical fibre cables (doc. TAXUD/0684/2006)

Facts:

Divergent BTI in MS.

Court ruling in one MS.

Heading 8544 covers optical fibre cables, made up of individually sheathed fibres whereas heading 9001 covers "other optical fibre cables".

The cables in question are of a kind used for telecommunication (the optical fibres are individually coated within a single housing of metal).

Questions:

Are cables that are coated considered to be also sheathed?

Conclusions:

WCO document 39.728 E from 1995 gives examples of cables that are not sheathed. This document could support classification of the cables in question in heading 9001. However, the HS Committee may wish to review the case in the light of more up-to-date information.

Action points:

MS to inform the COM on their positions.

4.21. Collectors vehicles – pieces (doc. TAXUD/0664/2006)

Facts:

Draft CNEN with different options prepared by Project group on Chapter 87.

Action points:

MS were invited to inform the COM on their preferred options.

Revised draft CNEN to be presented at a future meeting.

4.22. Roller skates (doc. TAXUD/0970/1999)

Facts:

A draft statement classifying the product in heading 9506 was prepared by the Project group on Chapter 95.

Currently DG ENTR is being consulted with relation to "Toy safety directive".

Action points:

DG TAXUD will contact DG ENTR to explain that classification for tariff purposes in heading 9506 as an article for sport does not exclude compliance with the requirements of the "Toy safety directive". Indeed, products of heading 9506 are often of a kind meeting high technical standards; otherwise they would not be suited for the uses mentioned in the heading text.

4.23. Terminal tractors (doc. TAXUD/1962/2002; ECJ Case C-495/03)

Insufficient time was available for conclusion to be reached.

4.24. High speed digital camera (doc. TAXUD/0695/2006)

This classification issue is to be solved in connection with the issue of digital cameras with camcorder function (TAXUD/686/2005 and TAXUD/2708/2005).

4.25. PDA+GPS (doc. TAXUD/0667/2005; TAXUD/0689/2005)

Chair informed the Committee that a draft regulation has been prepared by Project group on Digital apparatus (subgroup audio-video).

An importer of the product has made a submission to the Committee arguing for classification outside heading 8526 (a sample was circulated at the meeting)..

Headings that merit consideration are: 8471 and 8526.

Action points:

Due to insufficient time for discussion a draft regulation will be presented at a future meeting.

5. Any other business

Autonomous Common Customs Tariff duty suspension for monitors: the Chairman informed delegations about the ongoing process concerning the prolongation of Council Regulation (CE) No. 493/2005 of 16 March 2005 that temporarily suspended the autonomous Common Customs Tariff duty for certain type of the monitors for a period ending on 31 December 2006.

The working hypothesis has been to propose in a single proposal the prolongation of the current measure by 2 years and to include a proposal for expanding the scope to certain types of professional monitors. The Chairman informed the Committee on the results of the consultation with European industry concerning the expansion of the scope and briefed it on the proposed texts. Even if, initially, a single proposal was envisaged, due to the difficulty in defining the expansion, the proposal for the prolongation only will go forward whereas work will continue on the expansion.

Project groups:

Finished

- second meeting of a Project group on Chapter 95,

- second meeting of a Project group on Digital apparatus (subgroup audio-video

COM briefly reported on the results of the Project group on Chapter 95, Project group on Digital apparatus (subgroup audio-video) and Project group on Digital apparatus (subgroup cameras).

Planned

- joint project group with Textile sector is envisaged for November 2006,

- Project group on CNEN's and Classification Regulations – "high technology sector" 2007 is envisaged for December 2006

DVD player with two monitors:

One MS raised a question concerning the classification of a product put up as a set for retail sale comprising a DVD player with two monitors. To be discussed at a future meeting.

Outboard motors for boats:

Is the motor to be classified as an accessory for boats or separately? Divergent views in the Committee. Issue to be discussed at a future meeting.

Control box exclusively used in an actuator system for hospital beds:

The actuator system comprises an electrical motor, the control box and a cable connected hand control. Should the control box be classified in subheading 8537 10 by virtue of GIR 1, 3a), 3b) and 6 or as a part of a hospital bed? Majority of MS would classify the product in heading 8537.

Set top boxes without modem:

Company in one MS alleges that STB with no modem inside but containing communication processor should be classified under CN code 8528 12 91. The Chairman stated that the opinion of the Committee is that the modem has to be incorporated in order the set top box could be classified under CN code 8528 12 91. See also draft CNEN as voted.

The Chairman informed that DG TAXUD is currently working on a Standard form for submissions from MS in order to have as much as possible of the relevant facts available at the time of the submission.

The Chairman informed the Committee that Regulation EC 888/2006 that classified a security device under CN code 8543 89 97 had been challenged at the Court of First Instance (Luxembourg).

Meeting schedule: The Chairman informed the Committee that there will be no meeting in December as planned. Envisaged dates for the next two meetings in 2007 are: 8-12 January and 16-20 April.

ANNEX I

List of Participants

407th meeting of the Customs Code Committee

Tariff and Statistical Nomenclature Section

(Mechanical/Miscellaneous Sector)

held in Brussels from to 18 to 20 October 2006.

Chairman: Mr. Foltmar

Commission: Mr. De Greve; Ms. Procházková

Member States: Authorities or bodies/represented by

AUSTRIA Finanzministerium

BELGIUM Ministerie van Financiën/ Douane en accijnzen

CYPRUS Ministry of Finance

CZECH REPUBLIC General Directorate of Customs

DENMARK Ministry of Taxation

ESTONIA Tax- and Customs department

GERMANY Bundesministerium der Finanzen

FINLAND National Board of Customs

FRANCE DGDDI

GREECE Ministry of Economy and Finance

HUNGARY Ministry of Finance

IRELAND Revenue Commissioners

ITALY Agenzia delle dogane

LATVIA State Revenue Service

LITHUANIA Customs department

LUXEMBOURG Ministerie van Financiën/ Douane en accijnzen (Belgium)

MALTA HM Customs and Excise (United Kingdom)

THE NETHERLANDS Ministerie van Financiën / Belastingdienst / CPP

POLAND Ministry of Finance

PORTUGAL Ministério das Finanças, DGAIEC

SPAIN Agencia Estatal de Administracion Tributaria

SLOVAKIA Customs Administration

SLOVENIA Ministry of Finance

SWEDEN Swedish Customs

UNITED KINGDOM HM Customs and Excise

Observers:

BULGARIA

ROUMANIA

TURKEY

ANNEX II

Draft classification regulation on "Agricultural machines":

|Description of the goods |Classification |Reasons |

| |(CN-code) | |

|(1) |(2) |(3) |

|1. A new 3-wheeled motor vehicle with a |8704 23 91 |Classification is determined by General Rules 1 and 6 for |

|compression-ignition internal combustion piston engine and| |the interpretation of the Combined Nomenclature, Note 3 to|

|a gross vehicle weight of more than 20 t. | |Chapter 87 and by the wording of CN codes 8704, 8704 23 |

| | |and 8704 23 91. |

|The vehicle consists of a motor chassis fitted with a | | |

|cabin. | |A motor chassis fitted with a cabin, on which different |

| | |kinds of transport construction equipment or agricultural |

|It is not fitted with transport construction equipment or | |machinery can be mounted (not forming an integral |

|agricultural machinery when presented. | |mechanical unit), cannot be classified in Chapter 84. |

| | | |

| | |In accordance with Note 3 to Chapter 87, it is |

| | |classifiable under heading 8704. |

| | | |

| | |See also the HS Explanatory Notes to headings 8432, 8704 |

| | |and 8705. |

|2. A new 3-wheeled motor vehicle with a |8705 90 90 |Classification is determined by General Rules 1 and 6 for |

|compression-ignition internal combustion piston engine and| |the interpretation of the Combined Nomenclature and by the|

|a gross vehicle weight of more than 20 t. | |wording of CN codes 8705, 8705 90 and 8705 90 90. |

| | | |

|The vehicle consists of a motor chassis fitted with a | |The vehicle is not a self-propelled wheeled machine of |

|cabin. A spreader for solid substances (working machinery)| |heading 8432 because several types of working machinery |

|for agricultural purposes is mounted on the chassis. | |can be mounted on the motor chassis. |

| | | |

|The vehicle may also be driven on the public road. | |Since the motor chassis fitted with a cabin and the |

| | |working machinery do not form an integral mechanical unit,|

| | |the vehicle is considered to be a special purpose motor |

| | |vehicle of heading 8705. |

| | | |

| | |See also the HS Explanatory Notes to headings 8432 and |

| | |8705. |

ANNEX III

Draft classification regulation on "Bathroom articles":

|Description of the goods |Classification |Reasons |

| |(CN code) | |

|(1) |(2) |(3) |

|A set of toilet articles put up for retail sale, |6912 00 50 |Classification is determined by General Rules 1, 3 |

|consisting of: | |(b) and 6 for the interpretation of the Combined |

|- a beaker; | |Nomenclature, and by the wording of CN codes 6912 |

|- a soap dish; | |00 and 6912 00 50. |

|- a cylindrical toothbrush holder, and | |The toilet articles, as presented, constitute a set|

|- a liquid soap dispenser. | |in the sense of General Interpretative Rule 3 (b). |

|The liquid soap dispenser consists of an earthenware | |It is to be classified according to the material, |

|container equipped with a plastic pump. The other articles| |ceramic, which gives the set its essential |

|are made of earthenware. | |character. |

|All articles have the same design. | | |

|They are for use as toilet articles. | | |

|See photograph (*) | | |

(*) The photograph is purely for information.

[pic]

ANNEX IV

Draft classification regulation on "Home cinema systems - Amplifier/tuner":

|Description of the goods |Classification |Reasons |

| |(CN-code) | |

|(1) |(2) |(3) |

|Apparatus consisting of: |8527 39 80 |Classification is determined by the provisions of General |

|an AM/FM radio-broadcast receiver, | |Rules 1 and 6 for the interpretation of the Combined |

|7-channel amplifier section, | |Nomenclature, Note 3 to Section XVI and by the wording of |

|a digital sound processor, | |CN codes 8527, 8527 39 and 8527 39 80. |

|a video converter, and | |Within the meaning of Note 3 to Section XVI, the component|

|a remote control. | |which provides for the principal function of the composite|

|The product is designed to provide audio and video | |machine is the radio-broadcast receiver. |

|entertainment in the home. | |The amplification and processing of sound and the |

|The device is capable of receiving signals from different | |synchronisation and amplification of video are considered |

|sources (e.g., DVD player, satellite receiver, cassette | |to be secondary functions compared with the reception of |

|player, video recorder). | |radio-broadcasting. |

|The sound signals may be decoded and passed to | |Consequently, the composite machine is classifiable as |

|digital/analogue converters before being amplified. | |radio-broadcast reception apparatus under CN-code 8527 39 |

|The video signals are synchronised with the sound signal. | |80 |

|They may also be amplified to provide an improved picture | | |

|quality. | | |

ANNEX V

Draft classification regulation on "Hygienic toilet seats":

|Description of the goods |Classification |Reasons |

| |(CN-code) | |

|(1) |(2) |(3) |

|An article consisting of: |8516 79 70 |Classification is determined by General rules 1, 3(c) and |

|- a plastic lavatory seat with cover, | |6 for the interpretation of the Combined Nomenclature and |

|- an electro-mechanical movable sprayer and | |by the wording of CN codes 8516, 8516 79 and 8516 79 70. |

|- an electrothermic device. | | |

|The product performs several functions such as heating | |The product is a composite article consisting of different|

|water, spraying water and drying the area. | |components. Each component is classifiable under a |

| | |different heading (as a sanitary ware of plastics in |

| | |heading 3922, as an electro-mechanical domestic spraying |

| | |appliance in heading 8509, and as an electrothermic |

| | |appliance in heading 8516). |

| | |None of the components confers upon the product its |

| | |essential character. |

| | |Therefore the product is classifiable, in accordance with |

| | |GIR 3(c), in heading 8516 (last in numerical order among |

| | |those headings which equally merit consideration). |

ANNEX VI

Draft CNEN on "Satellite receivers with built-in modem ":

UNIFORM APPLICATION OF THE COMBINED NOMENCLATURE (CN)

(Classification of goods)

(2006/C …../..)

Explanatory notes adopted in accordance with the procedure defined in Article 10 (1) of Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff [1]

The explanatory notes to the Combined Nomenclature of the European Communities[2] shall be amended as follows:

On page 338:

8528 12 90 Video tuners

to

8528 12 95

The existing text shall be replaced by the following:

"These subheadings cover apparatus incorporating a video tuner which converts high-frequency television signals into signals usable by video recording or reproducing apparatus or video monitors.

Video tuners incorporate selector circuits, which permit tuning to a special channel or carrier frequency, and demodulation circuits. They are generally designed to operate with an individual aerial or a shared aerial (high-frequency cable distribution). The output signal can be used as an input signal for video monitors or for video recording or reproducing apparatus. It consists of the original camera signal (i.e. not modulated for transmission purposes).

Sometimes, the apparatus are also equipped with a decoding device (colour) or separator circuitry for synchronization."

On page 339, the following texts are inserted:

"8528 12 91 Apparatus with a microprocessor-based device incorporating a modem for gaining access to the Internet, and having a function of interactive information exchange, capable of receiving television signals ('set-top boxes with communication function')

This subheading covers apparatus without a screen, so-called 'set-top boxes with communication function', consisting of the following main components:

- a microprocessor

- a video tuner

The presence of an RF connector is an indicator that a video tuner may be present.

- a modem.

Modems modulate and demodulate outgoing as well as incoming data signals. This enables bidirectional communication for the purposes of gaining access to the Internet. Examples of such modems are: V.34-, V.90-, V.92-, DSL- or cable modems. An indication of the presence of such a modem could be an RJ 11 connector.

Devices performing a similar function to that of a modem but which do not modulate and demodulate signals are not considered to be modems. Examples of such apparatus are ISDN-, WLAN- or Ethernet devices. An indication of the presence of such a device could be an RJ 45 connector.

The modem must be built into the set-top box. Set-top boxes which do not have a built-in modem but use an external modem are excluded from this subheading (e.g., a set consisting of a set-top box and an external modem).

The Transmission Control Protocol/ Internet Protocol (TCP/IP) must be present as firmware in the set-top box.

Set-top boxes of this subheading must enable the user of the apparatus to access the Internet by accessing any IP address. The apparatus must also be able to run Internet applications in an 'interactive information exchange' mode such as an e-mail client or a messaging application using UDP or TCP/IP sockets.

8528 12 98 Other

This subheading includes products without a screen which are reception apparatus for television but which do not incorporate a video tuner (for example, so-called 'IP-streaming boxes')."

ANNEX VII

Draft CNEN on "HS headings 8471 and 8528":

UNIFORM APPLICATION OF THE COMBINED NOMENCLATURE (CN)

(Classification of goods)

(2005/C …../..)

Explanatory notes adopted in accordance with the procedure defined in Article 10 (1) of Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff [3]

The explanatory notes to the Combined Nomenclature of the European Communities'[4] shall be amended as follows:

On page 324 the following text is inserted:

"8471 60 80 Other

Monitors of this subheading work on different display technologies such as cathode ray tube (CRT) and liquid crystal display (LCD).

They are, subject to Note 5(E) to chapter 84, of a kind solely or principally used in an automatic data-processing system.

The characteristics of monitors of this subheading generally facilitate prolonged periods of viewing at close proximity.

Monitors of this subheading have the following characteristics:

- they are capable of accepting a signal only from the central processing unit of an automatic data-processing machine of heading 8471;

- they have generally an aspect ratio of 4:3 or 5:4;

- they frequently incorporate tilt and swivel adjusting mechanisms and glare-free surfaces;

- they may incorporate up to two loudspeakers.

Monitors of the CRT type falling within this subheading have the following additional characteristics:

- they are fitted with particular connectors such as SUB-D connectors;

- their dot screen pitch starts at 0,41 mm for medium resolution and gets smaller as the resolution increases.

Monitors other than of the CRT type (e.g., LCD) falling within this subheading have the following additional characteristic, namely generally having a diagonal measurement of the screen of 48,5 cm (19 inches) or less.

Monitors of this subheading cannot:

- be connected to a video source such as a DVD recorder or reproducer, a camera or a video camera recorder, a satellite receiver or a video game machine;

- incorporate components (e.g., a chroma decoder, a Y/C separator) which enable the monitor to display an image from a composite video baseband signal (CVBS) or composite video signal (whose waveform conforms to a television broadcast standard such as NTSC, SECAM, PAL, D-MAC) or S-Video signal or when they are capable of reproducing an image by accepting signals such as component video (e.g., YUV, YCBCR, YPBPR), Serial Digital Interface (SDI), High-Definition-SDI (HD-SDI) and digital video “DV” (e.g., MPEG1, MPEG2, MPEG4);

- be equipped with an infrared receiver for the reception of signals from an infrared remote control;

- have a programme channel up/down button;

- be fitted with interfaces such as DVI-D, DVI-I and High-Definition Multi-media Interface (HDMI) even if these interfaces do not support high-bandwidth digital content protection (HDCP) encryption;

- be fitted with interfaces for "slot-in" modules or for other devices which enable a connection to a video source or the reception of television signals;

- be used in systems other than automatic data-processing systems (e.g., home cinema systems, video editing systems, systems for medical imaging or systems of the printing or graphics industry for pre-press colour proofs).

This subheading does not include:

(a) reception apparatus for television (heading 8528);

(b) video monitors of heading 8528;

(c) indicator panels of heading 8531."

On page 339:

8528 21 14 Colour

to

8528 21 90

The existing text shall be replaced by the following:

"Video monitors whether they work on different display technologies such as cathode ray tube (CRT), liquid crystal display (LCD), organic light emitting diode (OLED) or plasma fall within these subheadings unless it can be demonstrated that they are of a kind solely or principally used in an automatic data-processing system.

The characteristics of monitors of these subheadings generally facilitate prolonged periods of viewing at a distance, for example at exhibitions and in home cinema systems, television studios and video surveillance systems.

Some monitors facilitate viewing at close proximity, for example for measuring, checking or medical applications, rear view camera surveillance for vehicles or radio navigational aid apparatus.

Certain monitors are fitted with connectors or interfaces such as Cinch/RCA, BNC, SCART, Mini DIN 4-pin/Hosiden, DVI-D, DVI-I and High-Definition Multi-media Interface (HDMI). These connectors or interfaces allow for the reception of a signal from a video source such as a DVD recorder or reproducer, a camera or a video camera recorder, a satellite receiver or a video game machine. These monitors may also be fitted with interfaces for automatic data-processing machines of heading 8471.

Some monitors may have interfaces that allow for the reception of signals from sources such as a cash register, an automatic teller machine (ATM), a radio navigational aid apparatus, a numerical control panel or a programmable memory controller, apparatus for measuring, checking or medical applications of chapter 90.

They may have separate inputs for red (R), green (G) and blue (B), or they may incorporate components (e.g., a chroma decoder, a Y/C separator) which enable the monitor to display an image from a composite video baseband signal (CVBS) or composite video signal (whose waveform conforms to a broadcast standard such as NTSC, SECAM, PAL, D-MAC) or S-Video signal or when they are capable of reproducing an image by accepting signals such as component video (e.g., YUV, YCBCR, YPBPR), Serial Digital Interface (SDI), High-Definition-SDI (HD-SDI) and digital video “DV” (e.g., MPEG1, MPEG2, MPEG4).

They may be fitted with connectors for the reception of audio signals.

For the monitors other than of the CRT type (e.g., LCD and plasma) the aspect ratio is often 16:9 or 16:10.

These subheadings do not include:

(a) monitors of a kind solely or principally used in an automatic data-processing system (subheading 8471 60 80);

(b) videophones (subheading 8517 19 10);

(c) indicator panels of heading 8531."

ANNEX VIII

STATEMENTS

Statement on the classification of a "Portable air conditioners "

The Committee concluded that:

Since this apparatus is portable and is supplied with a hose, it is not intended to be placed permanently in a window or a wall, it is excluded from HS subheading 8415 10. Consequently the apparatus is classifiable under CN-code 8415 82 00.

Statement on the classification "Video wall"

The Committee concluded that:

An apparatus which consists of a screen and a video projector, in the form of a single unit, is to be classified as a monitor.

Statement on the classification "Wind direction indicators"

A Wind direction indicators not fitted with dials and not of a high precision types, although it has an ornamental character, remains classifiable in heading 95 15 by virtue of GIR 1 and 6 and the HS explanatory notes to Chapter 90(see General, point (I), second last paragraph) and heading 9015 (see point (V)(2)

Statement on the classification of "Clock radio of a digital type"

The Committee concluded that:

A digital radio not combined with sound recording or reproducing apparatus but combined with a clock, with the appropriate control buttons enabling it to function as an alarm clock is to be classified in CN code 8527 32 10.

-----------------------

[1] OJ L 256, 7.9.1987, p.1. Regulation as last amended by Council Regulation (EC) No 683/2006 (OJ L 120, 5.5..2006, p. 1).

[2] OJ C 50, 28.02.2006, p. 1.

[3] OJ L 256, 7.9.1987, p.1. Regulation as last amended by Council Regulation (EC) No 683/2006 (OJ L 120, 5.5.2006, p.1.)

[4] OJ C 50, 28.2.2006, p. 1.

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