Customs & International Trade Communiqué

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Customs &
International Trade
Communiqué
Volume 61
Disclaimer
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usual PwC Indirect Tax Advisor first. This publication has been prepared for general
guidance on matters of interest only, and does not constitute professional advice.
Readers should not act upon the information contained in this publication without
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consequences of readers acting, or refraining to act relying on the information
contained in this publication, or for any decision based on it.
PwC
4
Greetings from
the Editor
Welcome to the sixty-first edition of our
Newsletter on Customs and Trade issues
Network Leadership
team
In this edition you will find articles on the Hungarian case
regarding customs value, the German case regarding the
classification of parts by General Rule 2a, an update on the
Free Trade Agreement between Switzerland and China, the
excise duty rate change in Ireland, the new excise duty rules in
Romania, the road charges in Hungary and updates from the
EU: classification, new decisions of HCS amending its
Compendium of Classification Updates and anti-dumping.
Ruud Tusveld
PwC The Netherlands
[email protected]
Jochen Schmidt
PwC Germany
[email protected]
Claudia Buysing Damsté, Editor
Rotterdam, The Netherlands
[email protected]
Daniel Anghel
PwC Romania
[email protected]
Editor
Claudia Buysing Damsté
PwC The Netherlands
[email protected]
European Customs & Trade Communiqué
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In this edition
1. Hungary / Customs value – Sales between companies established within the EU
2. Judgement of the Fiscal Court of Hamburg regarding the tariff classification of parts
under application of General Rule 2 (a) of the Combined Nomenclature (‘CN’)
3. Excise Duty Rate Changes in Ireland
4. New excise rules in Romania
5. Road charges in Hungary
6. Classification Updates
7. New decisions of the Harmonised System Committee (HSC) amending its
Compendium of Classification Opinions
8. Anti-dumping Updates
European Customs & Trade Communiqué
4
Hungary / Customs value – Sales between companies
established within the EU
Recently we have been involved in an interesting case in Hungary regarding customs value, namely as to whether
the sale price applied between two Community resident entities can be considered as transaction value when the
goods are released for free circulation.
Background of the transaction
The sales chain was as follows:
Russian company “A”
Austrian company “B”
Austrian company “C”
Hungarian company “D”
Hungarian company “D” requested the release
of non-Community goods for free circulation
using the customs value stated on the invoice
issued by Austrian company “C”. The National
Tax and Customs Authority completed the
release for free circulation as requested. Later,
during the post-clearance examination of the
customs declaration the competent
organizational unit of the National Tax and
Customs Authority came to the conclusion that
the price applied between Russian company “A”
and Austrian company “B” should be considered
as customs value.
One of the key suppliers to Austrian company
“C” was Austrian company “B”, which
purchased the product from Russian company
“A”. Austrian company “C” bought the products
on a continuous basis from Austrian company
“B” according to a schedule laid down in a longterm agreement. Company “C” adds the
products to its inventory and later selling them
to related companies in the EU and in third
countries, as well as to unrelated companies.
In the sales chain, Russian company “A” and
Austrian company “B” were regarded as related
parties, Austrian company “B” and Austrian
company “C” were unrelated parties, while
Austrian company “C” and Hungarian company
“D” were also related parties.
European Customs & Trade Communiqué
It should be emphasized that when buying the
product from Austrian company “B”, Austrian
company “C” did not yet know whether it would
sell and ship the product on to a company in the
EU or in a third country.
The fact that the destination stated on the
shipping document and invoice related to the
sale between Russian company “A” and
Austrian company “B” was the permanent
establishment of Hungarian company “D” only
meant that this was where they performed
reloading and storage for logistics purposes in
order that the product could later be sold and
shipped on to either a Community member
state or a non-Community country.
Pricing between Austrian company “B” and
Austrian company “C”, as well as between
Austrian company “C” and Hungarian company
“D”, is based on the global market price applied
by market players, pursuant to a written
agreement signed in advance. In the vast
majority of cases the sale price increases in the
sales chain. It is possible, however, that due to a
significant decline in the global market price of
a product, the price between Austrian company
“C” and Hungarian company “D” is lower than
that between Russian company “A” and
Austrian company “B”, also in view of the fact
that there may be several weeks between the
respective dates of the sale between Russian
company “A” and Austrian company “B” and the
sale between Austrian company “C” and
Hungarian company “D”.
Customs Authority’s standpoint
According to the position of Customs Authority,
the transaction value between two Community
entities (that is, Austrian company “C” and
Hungarian company “D”) could not be
considered as customs value, as it could not be
the price actually paid for the goods at the time
of the actual sale made for the purpose of export
to the customs area of the Community.
5
Instead, the sale between Russian company “A”
and Austrian company “B” should have been
regarded as the sale made for the purpose of
export to the customs area of the Community.
The Customs Authority based its argument on
the fact that the destination stated on the
shipping document and commercial invoice
between Russian company “A” and Austrian
company “B” was the permanent establishment
of Hungarian company “D”, and thus it could be
established that Russian company “A” was the
exporter, as it made the sale that resulted in the
export to the customs area of the Community.
Our position
Hungarian company “D” acted in compliance
with applicable law when it took into account
the invoice issued by Austrian company “C” in
determining the customs value, as
 based on the Incoterms stated on the
invoices involved in the transaction and the
relevant sale and purchase agreements, all
the sales preceding the sale between Austrian
company “C” and Hungarian company “D”
took place outside the customs area of the
European Union,
 the permanent establishment of Hungarian
company “D” was stated as a destination on
the consignment note and the invoice for
reloading and storage “for logistics purposes”
only (as at that time it was not yet known
whether the product would be sold in the EU
market or that of a third country) during the
transactions preceding the sale between
Austrian company “C” and Hungarian
company “D”,
 it only became known at the time of the sale
between Austrian company “C” and
Hungarian company “D” that the destination
of the product would be the EC market, and
so this sale qualified as a sale made for the
purpose of export to the customs area of the
Community, as it transpired then that the
goods were actually intended for the EC
market,
European Customs & Trade Communiqué
 pursuant to the applicable customs
legislation and European Court judgements
(the Unifert case, No C-11/89, and the
Carboni case, No C-263/06), the sale price
between two Community entities could also
be considered as transaction value for the
purpose of calculating customs value, if proof
is presented that this was the price actually
paid,
 during the sale in the customs area of the
Community, the sale made prior to the
release for free circulation had to be taken
into consideration,
 the Customs Authority did not examine
whether the relationship between Russian
company “A” and Austrian company “B” had
any influence on the price,
 the price applied between Russian company
“A” and Austrian company “B” was
unjustifiably higher compared to the global
market price prevailing at the time,
 it was proved that the relationship between
Austrian company “C” and Hungarian
company “D” did not influence the sale price,
which was thus very close to the transaction
value in an arm’s length sale.
Conclusion of the professional debate
The appellate body of the Customs Authority
accepted our arguments during the remedial
proceedings, and thus the sale price between
Austrian company “C” and Hungarian company
“D” are accepted as customs value.
Dorottya Palik
Hungary
[email protected]
Kornel Szeocs
Hungary
[email protected]
6
Judgement of the Fiscal Court of Hamburg regarding the
tariff classification of parts under application of General
Rule 2 (a) of the Combined Nomenclature (‘CN’)
On 12 August 2013, the Fiscal Court of Hamburg decided on the application of General Rule 2(a) in a specific case
of separately packaged satellite receivers and tuners which were presented to the customs authorities under
separate import declarations but at the same point in time. The Court stated that the goods in question should,
under application of General Rule 2(a), not be considered parts of subheading (TARIC) 8529 90 92 99 but
unassembled receivers of subheading (TARIC) 8528 71 19 00.
Background
On 31 May 2010, one consignment of satellite
receivers and the same number of tuners were
placed into free circulation in Germany by the
plaintiff. The receivers and tuners were
packaged separately. Furthermore, separate
import declarations were filed. Both, receivers
and tuners, were declared under subheading
(TARIC) 8529 90 92 99 (parts of goods of
headings 8527 and 8528) and both were
presented at the customs office of entry at the
same point in time. The defendant requested
that the goods should be examined by the
customs office of entry in order to verify the
nature and quality of the declared goods. Said
examination resulted in a re-classification of all
goods under subheading (TARIC) 8528 71 19 00
(other receivers, not designed to incorporate a
video display or screen) and according import
duties and import VAT were assessed.
The plaintiff filed an appeal against the import
duty assessment notification, arguing that
General Rule 2(a) should not have been applied,
but that General Rule 1 is applicable instead.
According to General Rule 1, “classification shall
be determined according to the terms of the
headings and any relative Section or Chapter
Notes”. The terms of subheading (TARIC) 8529
90 92 99 include parts of goods coming under
headings 8527 and 8528. The plaintiff considers
the unassembled receivers and tuners
components to need further treatment in the
EU (installation of software, integration of a
HD-card) before they can be finally assembled
and the function of a HD-receiver can be
fulfilled. Accordingly, the application of General
Rule 2(a) should, in compliance with General
Rule 1, sentence 2, be subject to the principle of
subsidiarity and consequently not be applicable
in the case at hand.
European Customs & Trade Communiqué
The plaintiff furthermore states that goods
subject to two separate customs declarations,
cannot be considered as presented together.
Moreover, the wording of tariff heading 8529
90 92 99 explicitly includes parts of receivers.
The defendant counters that the goods in
questions are to be considered as unassembled
tuners and should thus be classified under
subheading (CN) 8528 71 19, due to their
common presentation at the customs office. The
receivers and tuners together, possess all
relevant characteristics of assembled receivers.
As subsidiarity of the General Rules to the
wording of the tariff headings is not generally
defined, General Rule 2(a) should be applied on
the presented “incomplete or unfinished”
articles. A separate consideration of both
products, receivers and tuners, should thus not
be possible.
Furthermore, the tariff classification of the
goods is not influenced by the submission of
separate import declarations.
Findings
The Fiscal Court decided that in the present
case General Rule 2(a) is to be applied. It states
that receivers and tuners were presented at the
same point of time and in unassembled
condition but bearing the same quality features
as the assembled product.
In the scope of a tariff classification, both, the
wording of the subheading and the General
Rules are to be taken into consideration. This is
defined in General Rule 1, sentence 2.
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The Fiscal Court points out that the wording of
subheading (TARIC) 8528 71 19 00 and the
stipulations of General Rule 2(a) do not exclude
each other and that the goods may be
considered parts intended to be assembled to a
finished product by use of according
implements (screws etc.).
The Court furthermore accentuates that only
the common presentation of the goods at the
customs office but not their common
declaration is a prerequisite for their common
tariff classification. According to the plaintiff,
the receivers had already been prepared for the
integration of the tuners at the time of
importation. This supports the application of
General Rule 2(a), which refers to unassembled
parts showing the quality features of the future
assembled good. The Fiscal Court claims that
consisting of a receiver and a tuner, the
presented goods possess all hardware
components of an assembled receiver and
consequently provide the essential character.
The software required for the use of the product
should not be considered a constitutive quality
feature.
In order to avoid the tariff classification of the
goods under subheading (TARIC) 8528 71 19
00, the plaintiff should have presented them to
Customs separately.
Conclusion
The decision of the Fiscal Court constitutes a
valid guideline for similar cases regarding the
application of the General Rules for tariff
classification. The case stands for a significant
number of cases where declarants are in doubt
of the correct interpretation of these rules. In
order to provide clarity, it encourages the
consideration of the wordings of other tariff
headings and the related chapter notes for the
classification of a specific product.
The question on whether goods are to be
declared as parts in the original sense or, with
regard to their future use, as constituents of a
finished product, is another critical issue
addressed in this decision.
The decision also clarifies that the General
Rules are not of subsidiary character but are to
be considered together with the wording of the
tariff headings and chapter notes.
Certainty is provided on the fact that the
presentation and not the declaration of parts of
the same finished product at the customs office
of entry is the decisive procedure for their
common classification. The present decision
constitutes thus another point of orientation for
questions on the correct interpretation of the
General Rules, but will, as its predecessors, not
avoid similar cases in the future.
Sarah Schrick
Germany
[email protected]
Excise Duty Rate Changes in Ireland
Ireland’s second budget of 2013 was publicised
on 15 October and new excise duty rates were
introduced from midnight on that date on
tobacco and alcohol products.
European Customs & Trade Communiqué
The duty rates for alcohol products have been
increased by approximately 15 – 18% and by
approximately 1% for tobacco products.
Deirdre Lavery
Dublin
[email protected]
8
New excise rules in Romania
The Romanian authorities recently implemented a series of measures related to excise duties. The majority of
these measures enter into force as of 1 January 2014, with the exception of the new excise duties level for still
fermented beverages which entered into force on 22 November 2013.
Changes in excise duties level
The excise duties level for leaded and unleaded
petrol, gas oil, kerosene and LPG is increased by
7 eurocents / litre in order to fund road
infrastructure investments.
Excise duties for still fermented beverages other
than beer and wine are reduced from EUR
100/hl to 10 EUR/hl. Furthermore, the excise
duties level for apple and pear cider and for
mead is nil.
New rule concerning the exchange
rates
A new method of calculating the value in RON
of excise duties and tax on oil from internal
production is to be used if the value of the
exchange rate from the year of reference is
lower than that valid for the previous year. In
this specific situation, the exchange rate to be
used is obtained by multiplying the exchange
rate from the previous year by the consumer
price index (inflation index) communicated by
the National Statistics Institute for the month of
September.
Clarifications on rules for tax
warehouses’ guarantees
The excise duties legislation in Romania
provides both for a minimum and maximum
threshold for the guarantees that must be
constituted by tax warehousekeepers. Under the
new Tax Code amendments, a guarantee’s
maximum threshold may be reduced if certain
conditions are met. A guarantee may not be
reduced to below the minimum threshold set by
the law, however.
Alexandru Banu
Romania
[email protected]
Ludmila Leontiev
Romania
[email protected]
In 2014, the value in RON for excise duties and
for tax on oil from internal production is to be
calculated using the exchange rate for 2013
(4.5223 RON/EUR) multiplied by the consumer
price index for September 2013 (104.77%).
Special rules for excise goods subject
to fiscal marking
Processed tobacco and spirits which are marked
using stamps and banderoles will no longer be
sold using the system “buy one, get one free”.
Moreover, the sale of cigarettes to individuals at
a price lower than the declared retail price is
prohibited.
Failure to comply with these provisions will be
sanctioned with a fine ranging between RON
20,000 and 100,000, but also by the seizure of
the goods and, if the goods were sold, with the
seizure of income generated by those sales.
European Customs & Trade Communiqué
9
Road charges in Hungary
The e-toll (i.e. road charges) introduced in Hungary on 1 July 2013 – as well as the toll sticker sales system valid
for motorways introduced earlier – raises many questions with regard to value added tax. These questions include
who is obliged to pay VAT, when, and at what VAT rate, especially if the Hungarian toll is sold in a country other
than Hungary to companies who intend to use Hungarian roads. A potentially different interpretation of the law
by one or other member state may lead to a regulatory inconsistency, which, in turn, could even result in double
taxation.
What you should know about the
recently introduced e-toll
As a result of the new law, Hungary has also
implemented a toll payment system where the
toll is proportionate to the number of
kilometers traveled. The e-toll currently applies
to distances traveled by vehicles with a gross
weight of over 3.5 tons, and at present covers
roads of more than 6,500 kilometers in
Hungary.
As for the points of sale, the e-toll can be sold in
Hungary as well as in any neighboring country,
similarly to toll stickers.
Who has to pay VAT and what kind of
VAT is it?
At present, roads in Hungary are considered
real estate property, the use of which must be
treated as the use of real estate-related services
under the VAT regulations. Several neighboring
member states (for example Slovakia, Romania
and Slovenia) have a similar interpretation of
the law. The specific interpretation of the law in
the various countries, however, should be
examined on a case-by-case basis. Each
neighboring country decides, based on its own
laws and the interpretations of its own tax
authorities, whether the Hungarian toll sold in
the given country, is treated as consideration
paid for a real estate-related service (and thus
becomes a transaction with Hungary as the
place of performance) or a different type of
service. If it is a different type of service, as a
general rule for the place of performance, the
country of residence of the taxpayer using the
service (typically a carrier company), may
determine the place of performance of the
service. Therefore, pursuant to the above, the
evaluation of the Hungarian toll for VAT
purposes depends on the VAT regulations of the
country in question (i.e. where the supply takes
place), and thus on its rules pertaining to place
European Customs & Trade Communiqué
of performance, and on the country of residence
of the seller and the buyer. Note that under
Implementing Regulation 282/2011/EU, it is a
common goal of the EU that the transfer of a
licence to use real estate should be classified as
a real estate-related service.
To illustrate the above, the following examples
present some possible scenarios for the sale of
the Hungarian toll.
1. HU Co. => EU Co.
A Hungarian company sells a service related to
the use of Hungarian roads to a carrier
company resident in another EU member state.
• Place of performance: Hungary
• Party obliged to pay tax: Hungarian seller
• Tax treatment from supplier’s perspective:
service provision subject to Hungarian VAT
2. EU Co. => HU Co.
A non-Hungarian company (resident in an EU
member state) sells a service related to the use
of Hungarian roads to a carrier company
resident in Hungary (assumption: the seller’s
member state considers road use a real estaterelated service).
 Place of performance: Hungary
 Party obliged to pay tax: Hungarian buyer
 Tax treatment from supplier’s perspective:
transaction outside the scope of VAT in the
member state of supply
3. EU Co. => “other” EU Co.
Assumption: The seller’s member state regards
road use as a real estate-related service.
• Place of performance: Hungary
• Party obliged to pay tax: seller; in the
absence of a Hungarian tax number, it has a
registration obligation
• Tax treatment from supplier’s perspective:
service provision subject to Hungarian VAT
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Supplier
Hungarian Company
EU Company (country X)
Hungarian company
√
?
EU company (country X)
√
?
EU company (neither X nor Hungary)
√
?
√
The VAT treatment is clear
?
The VAT treatment is unclear, if the suppliers’ country is not
treating the road charges in consideration as supply of services
connected to real property
Purchaser
The examples above clearly show that the VAT
treatment of the transaction depends on several
factors, and thus it is important for companies
selling the toll or using the service to determine
the proper VAT treatment of the transactions.
European Customs & Trade Communiqué
Szabolcs Varga
Hungary
[email protected]
Kornel Szeocs
Hungary
[email protected]
11
Classification Updates
The EU Commission has recently published classification regulations on the following products:
Rubber Wheel
A wheel with a diameter of approximately 20
cm and a width of approximately 5 cm,
consisting of a plastic rim and a solid plastic
tyre. The rim has a central hole and a ball
bearing made of carbon steel. The wheel can be
mounted on various articles such as carriages
for disabled persons, walkers/ rollators and
hospital beds.
Classification is determined by General Rules
1, 3(b) and 6 for the interpretation of the
Combined Nomenclature and by the wording
of CN codes 3926, 3926 90 and 3926 90 97.
The intended principal use of the wheel is not
inherent to its objective characteristics, as it is
equally suitable for goods of, for example,
heading 8713 (carriages for disabled persons),
heding 9021 (wakjers/rollators) and heading
9402 (hospital beds). Classification as a part
of a specific article is therefore excluded. The
wheel is a composite good consisting of
different materials (plastics and carbon steel).
The component that gives the wheel its
essential character is the rim made of plastic,
as it contributes the most to the structure of
the wheel. The article is therefore to be
classified under CN code 3926 90 97 as other
articles of plastics.
Toy Figurine
An unassembled toy figurine of plastic,
approximately 4,5 cm tall, consisting of two
parts. It is presented in a plastic container in
the shape of an egg consisting of two separable
halves which fit snugly together at the edges.
The figurine has humanoid features of a man.
It does not have movable parts or detachable
clothing and it maintains its position
unsupported. The figurine represents a wizard
from a comic-book series and forms a part of a
collection together with the other characters
from the series.
European Customs & Trade Communiqué
Classification is determined by General Rules
1, 2(a), 5(b) and 6 for the interpretation of the
Combined Nomenclature and by the wording
of CN codes 9503 00 and 9503 00 95.
Classification under CN code 9503 00 21 as
dolls is excluded, as the product is not a doll. A
doll is a model of a human male or female
character, typically of a baby, a little girl or boy
or a fashion model. Small rigid figurines that
can maintain their position unsupported are
not perceived as dolls. Classification under CN
code 9503 00 49 as toys representing animals
or non-human creatures, other than stuffed, is
also excluded, as the objective characteristics
of the character represented by the figurine are
those of a man; it has no animal or non-human
features. It is a humanoid figurine representing
a comic book character (see also the CN
Explanatory Notes to CN codes 9503 00 81 to
9503 00 99). The figurine is therefore to be
classified under CN code 9503 00 95 as other
toys of plastics.
Traffic Message Channel (TMC)
receiver
A device comprising an FM receiver, an aerial
cable (antenna) and a power supply. It is
equipped with a USB-connector. The device
receives telemetric signals containing traffic
information using a traffic message channel
through FM radio broadcast band. The device
is to be connected with a USB- connector to a
global positioning system (GPS) receiver,
which processes the telemetric signals received
and displays the traffic information on the
screen. The device does not receive sound
broadcast signals.
Classification is determined by General Rules 1
and 6 for the interpretation of the Combined
Nomenclature and by the wording of CN codes
8517, 8517 69 and 8517 69 39. As the device
only works when connected to a GPS,
increasing the GPS’ functionality, it is
considered an accessory of a GPS and is
therefore to be classified on its own merits. The
device does not receive any sound signals.
Consequently, classification under heading
12
8527 as a reception apparatus for radiobroadcasting is excluded. The device is not
portable as it only works when connected to a
GPS. In addition, the device cannot perform
alone the calling, alerting or paging function as
it only receives telemetric signals.
Consequently, classification under subheading
8517 69 31 as portable receivers for calling,
alerting or paging is excluded. The device is
therefore to be classified under CN code 8517
69 39 as other apparatus for the transmission
or reception of voice, images or other data,
including apparatus for communication in a
wired or wireless network (see also the CN
Explanatory Notes to subheading 8517 69 39,
item 6).
Exhaust Gas Temperature sensor
A product consisting of a thermistor with a
power handling capacity not exceeding 20 W,
in its own housing; a fixing bolt; a shaft
facilitating fixation inside a vehicle’s exhaust
system; an electrical cable, with a heat
resistant sleeve, which connects the product to
a plug and which, in turn, enables connection
to the vehicle’s engine management system.
Depending on the temperature, the thermistor
changes its resistance. When connected, this
change of resistance produces a change of
electrical current, which is transmitted to the
engine management system. The product
cannot convert the electrical current output
into a temperature measurement or display the
temperature.
Classification is determined by General Rules 1
and 6 for the interpretation of the Combined
Nomenclature and by the wording of CN codes
8533 and 8533 21 00. Classification under
heading 9025 as a thermometer or as a part
thereof is excluded as the product cannot
measure nor display temperature. The product
is a non-linear resistor the resistance of which
changes with temperature and is not variable
at will (see also the Harmonised System
Explanatory Notes to heading 8533 (A)(5) and
(B)). It is therefore to be classified under CN
code 8533 21 00 as other fixed resistors for a
power handling capacity not exceeding 20 W.
diodes. The components are assembled in a
printed circuit in the form of a flexible metallic
strip with an adhesive layer protected by a
detachable paper on the bottom with
dimensions of approximately 17 × 1 cm. The
components are interconnected. Contacts at
the ends of the strip prepared for soldering (for
example, wires) allow connection to a 12 V DC
power supply. The article provides light when
supplied with electrical current. The article is a
lighting fitting designed to be used, for
example, in furniture.
Classification is determined by General Rules
1, 2(a) and 6 for the interpretation of the
Combined Nomenclature and by the wording
of CN codes 9405, 9405 40 and 9405 40 99. As
the article consists of a printed circuit
assembly (see also the CN Explanatory Notes
to subheading 8443 99 10, covering electronic
assemblies), it does not fulfil either the
conditions for semiconductor devices or a
discrete LED within the meaning of heading
8541. Consequently, classification under
heading 8541 is excluded. The article has all
the objective characteristics of a lighting fitting
of heading 9405. Consequently, classification
under heading 8543 is excluded. Given its
objective characteristics the article has the
essential character of a complete lighting
fitting of heading 9405 as to function it only
needs to be connected to a power supply. It is
therefore to be classified under CN code 9405
40 99 as other lighting fittings.
Welded pipes of non-alloy steel
Welded pipes of non-alloy steel, of circular
cross–section of a length of 3 or 6 m, wall
thickness of 2,6 to 3,6 mm and an external
diameter of 33,7 to 114,2 mm, with grooves at
both ends. They are intended to be used as
pipes in sprinkler systems.
Classification is determined by General Rules 1
and 6 for the interpretation of the Combined
Nomenclature and by the wording of CN codes
7306, 7306 30 and 7306 30 77. Given its
objective characteristics and properties, the
goods meet the terms of heading 7306.
LED Strip
An article comprising of light-emitting diodes
(LEDs), transistors, resistors and protection
European Customs & Trade Communiqué
13
This heading covers also pipes and tubes that
are used, for example, in machines of Chapter
84 (see also the Harmonised System
Explanatory Notes to heading 7306). The
intended use of the pipes is not inherent to
their objective characteristics as they are not of
a particular shape, they are not made up into
specific identifiable articles and therefore,
upon presentation, they cannot be identified as
parts of a mechanical appliance for projecting,
dispersing or spraying liquids or powders of
heading 8424. The grooves just serve for
connecting the pipes. Consequently,
classification as parts of mechanical appliances
of heading 8424 is excluded. The pipes are
therefore to be classified under CN code 7306
30 77 as other welded pipes of non-alloy steel.
A control unit consisting of a printed
circuit assembly
A control unit consisting of a printed circuit
assembly containing integrated circuits (for
example, a controller obtained by
semiconductor technology), passive elements
(for example, resistors, capacitors and
inductors), active elements (for example,
diodes and transistors) and a heat sink for a
voltage not exceeding 1 000 V, in a housing
with dimensions of approximately 24 × 13 × 5
cm. After the installation of the appropriate
software, the control unit is incorporated in a
washing machine whose functions it is
intended to control (for example, starting and
stopping the motor and the water heating
system, opening and closing the water valves).
Classification is determined by General Rules 1
and 6 for the interpretation of the Combined
Nomenclature, Note 2(a) to Section XVI and by
the wording of CN codes 8537, 8537 10 and
8537 10 91. Classification under heading 8450
as a part of a washing machine is excluded as
the unit is a product included in a heading of
Chapter 85. As the unit consists of a printed
circuit assembly it does not fulfil the
conditions for electronic integrated circuits
laid down in Note 8(b) to Chapter 85.
Classification under heading 8542 is therefore
also excluded. Since the unit is programmable
and used for the electric control of the
functions of a washing machine, it is therefore
to be classified under CN code 8537 10 91 as
European Customs & Trade Communiqué
programmable memory controllers for a
voltage not exceeding 1 000 V.
Aircraft passenger handset
A handheld device comprising a control unit
incorporating a microphone and a
loudspeaker, various buttons on the front and
back, a display, a magnetic card-reader and a
connection socket, for a voltage not exceeding 1
000 V, with dimensions of approximately 16 ×
4 × 2,5 cm. The device is designed to be
installed into the passenger seat of an aircraft
for performing the following functions: acting
as a switch and control device for various
external devices, for example, audio/video
equipment, game consoles or other on-board
services; making telephone calls through the
public on-board communication network as it
converts audio-frequency pulses into sound
waves and vice versa; reading data from swipe
cards. The device cannot connect directly to a
communication network.
Classification is determined by General Rules 1
and 6 for the interpretation of the Combined
Nomenclature, Note 3 to Section XVI and by
the wording of CN codes 8537, 8537 10 and
8537 10 99. The device cannot connect directly
to a communication network. Consequently,
classification under heading 8517 as a
telephone set or other apparatus for the
transmission or reception of voice, images or
other data is excluded. The device is a
composite machine consisting of machines
classified under different headings of Section
XVI. By virtue of Note 3 to Section XVI and
due to its objective characteristics, the
component performing the electric control
function is considered the machine’s principal
function, as it is principally used for selecting
and controlling various external devices.
Consequently, classification under heading
8471 as a card reader or under heading 8518 as
a microphone and a loudspeaker is excluded.
The article is therefore to be classified under
CN code 8537 10 99 as other boards, panels,
consoles, desks, cabinets and other bases for
electric control for a voltage not exceeding 1
000 V.
14
Body Control Module
Smart Key
An electronic control unit for a working voltage
not exceeding 1 000 V, designed as a
component of the electronic control system of
a motor vehicle with dimensions of
approximately 16 × 13 × 3 cm, comprising: a
programmable memory controller with active
and passive components, for example,
transistors, diodes, a processor, resistors,
capacitors and inductors, a built-in receiver
and an attached antenna. The unit receives
signals from manually operated buttons and
from sensors (for example, rain sensors and
photo sensors), processes them and on this
basis controls various devices in the vehicle,
for example, windscreen wipers, window
heating, interior lighting, front and rear fog
lamps, daytime running lights. It also controls
the activation of signalling devices, for
example, seatbelt reminder and over speed
warning. It receives signals from the key
remote control enabling the vehicle doors to be
locked or unlocked. The unit is to be classified
under CN code 8537 10 99 as other boards,
panels, consoles, desks, cabinets and other
bases for electric control for a voltage not
exceeding 1 000 V.
An electronic control unit for a working voltage
not exceeding 1 000 V, designed as a
component of the electronic control system of
a motor vehicle with dimensions of
approximately 15 × 12 × 4 cm, comprising: a
programmable memory controller with active
and passive components, for example,
transistors, diodes, a processor, resistors,
capacitors and inductors, a built-in receiver for
transponder communication (localization of
the key) between the key and the unit. The unit
is connected to antennae already incorporated
in the vehicle allowing the detection of the
presence of the key near the vehicle. The unit
receives signals from manually operated
buttons and from the antennae, processes
them and on this basis controls devices, for
example, locks or unlocks the vehicle doors,
starts up the engine. It also controls the
activation of signalling devices, for example,
the control functions for key- free access
including acoustic warning when the electronic
key has left the vehicle. The unit is therefore to
be classified under CN code 8537 10 99 as
other boards, panels, consoles, desks, cabinets
and other bases for electric control for a
voltage not exceeding 1 000 V.
Automatic transmission
An electronic control unit for a working voltage
not exceeding 1 000 V, designed as a
component of the electronic control system of
a motor vehicle, with dimensions of
approximately 8 × 6 × 3 cm. It comprises a
controller with active and passive components,
for example, transistors, diodes, a processor,
resistors, capacitors and inductors. The
controller is not programmable. The unit
receives signals from sensors recording the
position of the gear lever, processes them and
on this basis controls the engagement of the
appropriate gear of the automatic transmission
of a motor vehicle. The unit is to be classified
under CN code 8537 10 99 as other boards,
panels, consoles, desks, cabinets and other
bases for electric control for a voltage not
exceeding 1 000 V.
European Customs & Trade Communiqué
Deirdre Lavery
Dublin
[email protected]
15
New decisions of the Harmonised System Committee (HSC)
amending its Compendium of Classification Opinions
Following the 51st session of the HS
Committee, the HS Compendium of
Classification Opinions, published by the
WCO, will be updated to reflect the following
new Opinions which have been approved:
• A plastic dog collar, impregnated with an
insecticide and an acaricide to protect dogs
against fleas and ticks – HS Code 3808 91 –
Application of GIRs 1 and 6
• 3 types of plastic drinking bottles, designed
to be used on bicycles and fitted with screwtop closures – HS Code 3924 90 Application of GIRs 1 and 6
• Terracotta cladding elements used for
exterior or interior classing purposes –
HS Code 6907 90 – Application of GIRs 1
and 6
• A glass fibre (glass wool) product, suitable
for heat or sound insulation, presented in
rolls – HS Code 7019 39 – Application of
GIRs 1 and 6
• Charcoal chimney starter in the form of a
steel drum with openings at both ends,
fitted with a handle on the side and divided
into two interior chambers by a perforated
metal plate –HS Code 7321 89 –
Application of GIRs 1 and 6
• A connecting link, of steel, designed to be
used with a hoisting device to form a
hoisting assembly – HS Code 7326 90 –
Application of GIRs 1 and 6
• 2 types of fruit and vegetable peelers
containing a metal cutting blade – HS Code
8205 51 – Application of GIRs 1 and 6
• A self-propelled mobile crane – HS Code
8426 41 – Application of GIRs 1 and 6
• A tablet computer designed to be primarily
operated by using its touch screen – HS
Code 8471 30 – Application of GIRs 1 (Note
3 to Section XVI and Note 5(A) to Chapter
84) and 6
European Customs & Trade Communiqué
• 3 different types of colour monitors for use
solely or principally with automatic data
processing machines – HS Code 8528 51 –
Application of GIRs 1 and 6
• A packaged Insulated Gate Bipolar
Transistor (IGBT) device – HS Code 8541
29 – Application of GIRs 1 (Note 8 to
Chapter 85) and 6
• A vehicle for the transport of goods
permanently converted into a “motorhome” to provide accommodation for
persons – HS Code 8703 33 – Application
of GIRs 1 and 6
• A motor vehicle capable of being driven on a
railway track as well as on the road. The
vehicle has a driving cabin with controls, a
welding head attached to a double boom
mounted on a rotating turret designed for
electric rail welding operations, and a
generator – HS Code 8705 90 – Application
of GIRs 1 (Note 4(a) to Section XVII) and 6
• A roof cargo box composed of a top and
bottom shell of moulded plastic; and a
foldable roof cargo box composed of a base
of moulded plastic and an exterior surface
made of waterproof textile material – HS
Code 8708 99 – Application of GIRs 1 and 6
• A photographic camera, separately
presented, intended to be mounted inside
an x-ray apparatus for the examination of
patients – HS Code 9006 30 – Application
of GIRs 1 (Note 3 to Chapter 90) and 6
• A three-legged camera support (tripod)
made from an alloy of aluminium,
magnesium and titanium (AMT) and on
which can be mounted a digital,
photographic or video camera – HS Code
9006 91 – Application of GIRs 1 (Note 2(b)
to Chapter 90) and 6
Deirdre Lavery
Dublin
[email protected]
16
Anti-dumping Updates
• Council Implementing Regulation imposing
a definitive countervailing duty and
collecting definitively the provisional duty
imposed on imports of certain stainless steel
wires originating in India;
• Council Implementing Regulation extending
the definitive anti-dumping duty imposed on
imports of molybdenum wire, containing by
weight at least 99,95 % of molybdenum, of
which the maximum cross-sectional
dimension exceeds 1,35 mm but does not
exceed 4,0 mm, originating in the People’s
Republic of China to imports of molybdenum
wire, containing by weight at least 97 % of
molybdenum, of which the maximum crosssectional dimension exceeds 1,35 mm but
does not exceed 4,0 mm, originating in the
People’s Republic of China;
• Council Implementing Regulation imposing
a definitive anti-dumping duty on imports of
certain prepared or preserved sweetcorn in
kernels originating in Thailand following an
expiry review;
• Notice concerning the anti-dumping
measures in force in respect of imports into
the Union of certain prepared or preserved
citrus fruits (namely mandarins, etc.)
originating in the People’s Republic of China:
change of the name of a company subject to
an individual anti-dumping duty;
• Notice of the impending expiry of certain
anti-dumping measures in relation to certain
candles, tapers and the like from the People’s
Republic of China;
• Notice of the impending expiry of certain
anti-dumping measures in relation to certain
PSC wires and strands from the People’s
Republic of China;
• Council Implementing Regulation imposing
a definitive countervailing duty and
collecting definitely the provisional duty
imposed on imports of certain polyethylene
terephthalate originating in Iran, Pakistan
and the United Arab Emirates;
European Customs & Trade Communiqué
• Notice of the impending expiry of certain
anti-dumping measures with respect to
Biodiesel from the United States of America;
• Notice concerning the anti-dumping
measures in force in respect of imports into
the Union of fatty alcohols and their blends
originating in India: modification of the
corporate name of a company subject to an
individual anti-dumping duty rate;
• Notice concerning the judgments by the
Court of Justice of the European Union
imposing a definitive anti-dumping duty and
collecting definitely the provisional duty
imposed on imports of certain footwear with
uppers of leather originating in the People's
Republic of China and Vietnam;
• Council Implementing Regulation
terminating the partial interim review
concerning the anti-dumping measures
applicable to imports of certain iron or steel
fasteners originating in the People’s Republic
of China, as extended to imports consigned
from Malaysia, whether declared as
originating in Malaysia or not;
• Notice of initiation of an expiry review of the
anti-dumping measures applicable to
imports of certain prepared or preserved
citrus fruits (namely mandarins, etc.)
originating in the People's Republic of China;
• Case before the General court of the
European Union regarding an action for the
annulment of anti-dumping duties on
imports of polyester staple fibres originating
in Belarus, the People’s Republic of China,
Saudi Arabia and Korea following a partial
interim review;
• Notice of the impending expiry of certain
anti-dumping measures in relation to wire
rod from the People’s Republic of China.
David Harrington
Dublin
[email protected]
17
European Contact Details
Country
Name
E-mail
Telephone
Austria
Albania
Azerbaijan
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
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Dorthe Higham
Ain Veide
Ilona Paakkala
Stéphanie Thomas
Jochen Schmidt*
Panagiotis Tsouramanis
László Deák
Anne Williams
Jonathan Nissim
Luca Lavazza
Nazira Nurbayeva
Maris Juruss
Kristina KrišciuniaiteBartuseviciene
Barbara Berckmoes
Katerina Carceva
David Ferry
Ruud Tusveld*
Yngvar Solheim
Jakub Matusiak
Hugo Salgueirnho Maia
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Marina Volkova
[email protected]
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(43) 1 501 88 3605
(355) 4 242 254
(99412) 497 74 05
(32) 3 259 3214
(359) 2 91 003
(385) 1 6328 802
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(420) 251 152 575
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hugo.salgueirinho.maia @po.pwc.com
[email protected]
[email protected]
(352) 49 48 48 3083
(389) 02 3111 012
(356) 21 247 000
(31) 88 79 23473
(47) 95 26 06 57
(48) 22 523 4044
(351) 225 433 135
(40) 21 202 8688
(7) 495 967 6223
Nebosja Jovanovic
[email protected]
(381) 11 3302 100
Eva Fricová
Darja Bernik
Kayn Woomer
Pilar Salinas
Magnus Almgren
Simeon Probst
Cenk Ulu
Matthew Paul Clark
Abdulkhamid Muminov
[email protected]
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(421) 2 59 350 613
(386) 1 58 36 031
(27) 11 797 4242
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Spain
Sweden
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Turkey
United Kingdom
Uzbekistan
Global Contact Details
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Name
E-mail
Telephone
Europe
Americas
Asia
Ruud Tusveld
Domenick Gambardella
Frank Debets
[email protected]
(31) 88 79 23473
[email protected] (1) 646 471 3791
(65) 6236 7302
[email protected]
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