DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
International Affairs and Tariff matters
HS Convention, combined nomenclature, tariff classification
Brussels, 28th April 2010
TAXUD-B3 ED/HP/EV - (2010)
LIMITED
CUSTOMS CODE COMMITTEE
TARIFF AND STATISTICAL NOMENCLATURE SECTION
Summary report of the 31stmeeting of the Customs Code Committee
(Mechanical/Miscellaneous Sector)
/ EUROPEAN COMMISSIONDIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
International Affairs and Tariff matters
HS Convention, combined nomenclature, tariff classification
Brussels, 28th April, 2010
Limited
Customs Code Committee
Tariff and Statistical Nomenclature Section
(Mechanical/Miscellaneous Sector)
Minutes of the 31stmeeting of the Customs Code Committee
held in Brusselsfrom 7 to 9 April 2010
AGENDA
1.Approval of the agenda of the 31st meeting of the Customs Code Committee.
2.Adoption of the Minutes of the 26th 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:
3.1 Draft regulation: Mattress support (TAXUD/359433/2009 Rev1) *
3.2 Draft regulation: UV light system (TAXUD/337535/2009 Rev1) *
4.Items submitted to the Committee for examination under Article 8 of Regulation (EEC) No 2658/87:
Items for a first examination (fact-finding)
4.1E-book (TAXUD/31147/2010)
4.2 Transformer module with RJ 45 plug (TAXUD/31386/2010)
4.3 Video glasses (TAXUD/30620/2010)
4.4Gas generator (TAXUD/ 51402/2010)
4.5 Self drilling screws (TAXUD/60507/2010)
4.6 Parts of safety seat belts (TAXUD/118262/2010)
Items for further examination:
4.7Printer cartridges (TAXUD/152194/2009)
4.8IGBT modules (TAXUD/342442/2009)
4.9Christmas articles (TAXUD/0676/2009+Annex)
4.10"Fußelastic" insoles (TAXUD/221457/2009, TAXUD/118410/2010)
Items for conclusion
4.11Draft CNEN: TV tuners (TAXUD/127279/2010) *
4.12Draft Regulation: Shower heads with and without valves (TAXUD/60554/2010)*
4.13Draft regulation: Textile roller (TAXUD/137791/2010)*
4.14Draft regulation: Amplifiers(TAXUD/152438/2010)*
4.15Draft regulation: Ultrasonic sensors (TAXUD/337493/2009 Rev1)*
4.16Draft regulation: DVD multimedia centre (TAXUD/0822/2008 Rev2)*
4.17Draft statement: Pocket sized video recorder (TAXUD/137042/2010)*
4.18Draft regulation: Current Compensated Inductors (TAXUD/154055/2010)*
4.19Draft regulation: Video surveillance apparatus for babies (TAXUD/242864/2009)*
4.20Draft regulation: X and Y (TAXUD/0770/2008 Rev1) *
4.21Draft regulation: Gas analyzer (TAXUD/392733/2009)*
4.22Draft statement: Aerosol Dispenser (TAXUD/154336/2010)*
4.23Draft CN Explanatory Notes: Note 4 to Chapter 95 (TAXUD/13065/2010) *
4.24Draft regulation: Implant screws for teeth (TAXUD/133107/2010)*
5. Proposal of the UK for a duty suspension on electro scooters (TAXUD/383482/2009)
6.Any other business
- Court cases
- Other
Modification of text of CN code 9503 00 70 (TAXUD/13071/2010)
Ringbinders
- List of pending cases:
Files to be closed:
Docking station s for digital camera – closing of the file (see also TAXUD/0579/2007)
Quad bikes/agriculture tractors (TAXUD/0682/2009)
1.Approval of the agenda of the 31stmeeting of the Customs Code Committee.
All Member Stateswere present.
The agenda was adopted as read.
2.Adoption of the Minutes of the26th meeting of the Customs Code Committee.
The Minutes of the 26thmeeting of the Customs Code Committee were adopted.
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:
3.1 Draft regulation: Mattress support (TAXUD/359433/2009 Rev. 1) *
Following some textual amendments, the Committee delivered a favourable opinion (qualified majority) on the draft regulation reproduced at Annex II.
3.2 Draft regulation: UV light system (TAXUD/337535/2009 Rev. 1) *
Following some textual amendments, the Committee delivered a favourable opinion (qualified majority) on the draft regulation reproduced at Annex III.
4.Items submitted to the Committee for examination under Article 8 of Regulation (EEC) No 2658/87:
Items for a first examination (fact-finding)
4.1 E-book (TAXUD/31147/2010)
Facts:
Multifunctional apparatus capable of recording and displaying specific formats of text, still images and sound. It comprises a microprocessor, a monochrome screen (E-ink technology), a memory of 450 MB, a USB interface, slots for memory cards, control buttons.
Files are transferred to the apparatus' internal memory and to an SD card from an automatic data-processing machine via the USB interface.
Existence of divergent BTI (divergent BTI is no longer valid).
Questions and discussion:
The MS submitting the issue supports classification under HS heading 8528, as a monitor, considering that the visualising function gives the product its essential character. Furthermore, a parallel can be drawn with the products covered by Regulation 1172/2008(photo-frames) which have features comparable to the product under examination, especially taking into consideration the future e-books capable of displaying colour images, games, etc.The Committee was informed that the importer requested classification under HS heading 8471 and underlined the significant economic consequence of the classification decision.
Some MS have issued BTI under HS heading 8543 for similar products by application of GIR 1, 3 c) and 6 considering the product to be much more complex than a monitor of HS heading 8528. Other MS would support this classification for the specific product under examination.
One MS pointed out that if the product can also be used, for example, as a game console, then classification by application of GIR 3 c) under HS heading 8543 appears to be incorrect. HS heading 9504 seems more appropriate.
The MS submitting the issue offered to provide a sample of the product.
In order to decide on the correct classification, the establishment of the different functions of the apparatus is necessary. This entails further factual research on the physical characteristics of the product that indicate its capability to perform different types of functions (for example, the presence of a SIM card, the type of wireless interface or the type of control buttons). Further reflection would be needed if it is established that the various functions of the apparatus are software based.
Eventually, a general reflection on what constitutes a monitor of HS heading 8528 will be needed. When is a monitor/display combined with other components no longer a monitor of HS heading 8528 but a product classifiable elsewhere? Before 2007, the main criterion to distinguish between types of monitors was their capability of displaying video: is this capability still a valid characteristic today? Can Notes 3 and 4 to Section XVI be applied for the classification of composite products?
Conclusions:
The following HS headings were identified as relevant when determining the classification of the product under examination: 8471, 8517, 8519, 8528, 8531, 8543 and 9504.
The PG on monitors has prepared a draft description of the product.
MS to reflect on arguments in favour and against classification under the above HS headings.
It was agreed that the PG would prepare a revised draft with a description and proposal(s) for the reasons for the classification which would form the basis for the Committee's further work.
4.2 Transformer module with RJ 45 plug (TAXUD/31386/2010)
Facts:
A product consisting of a circuit board equipped with four transformers, onecapacitor, four resistors and two LED status lamps, in a single housing, with an RJ-45 plug (female type) and contacts.
The transformer module with RJ 45 plug is used to establish connections for signal transmission in local area networks (LAN) (for example, Ethernet 10/100 BASE-T), to providegalvanic separation (isolation) and to protect against over-voltage and common mode noise.
Divergent BTI have been issued: under HS headings 8517 as parts of telecommunication equipment and HS heading 8536 as connectors.
Questions:
- Is connection the main function of the product (connector)?
- Or does the transformer module give the device a more important function than that of a single connection?
- Do we need more information about the product?
Discussion:
The MS submitting the case stated that the product is to be classified under HS heading 8517 as a part of LAN equipment because HS heading 8536 covers only plugs and sockets and not products with additional components such as transformers, resistors or capacitors. In its view,HS heading 8536 only covers products for “making connections in electrical circuits” and not products forgalvanic separation and protection against over-currents. The product is used in LAN networks and should be classified as a part thereof.
One MS has issued BTI under HS heading 8536, as a socket, because the product is intended for products of HS heading 8521 connectable to a LAN and its purpose is to filter the signal. It has 16 contacts, 8 for the plug and 8 for the printed circuit board (PCB). It believes that Note 2(a) to Section XVI applies.
One MS mentioned HS heading 8522 as a heading which merits consideration because this module is used as a part of products of HS heading 8521.
One MS would excludeHS heading 8536 as the product is more than a plug. Another MS favoured HS heading 8517 because it is used in computer networks. Another MS suggested classification in CN code 8517 62 00 as a complete communication product.
No clear tendency in favour of a particular HS heading emerged. The MS who have issued BTI asked for a regulation.
Conclusion:
The products inthe BTI issued are similar. Note 2(a) to Section XVI would be applicable in case of classification under HS heading 8536. Note 2(b) to Section XVI would be applicable in case of classification under HS heading 8517.
Action Points:
Draft regulation will be prepared for a forthcoming meeting.
4.3 Video glasses (TAXUD/30620/2010)
Facts:
Portable, battery-powered electronic eyewear device for displaying images, incorporating a small LCD screen with a resolution of 640 x 480 pixels (virtual equivalent of 80” screen) and stereo sound-processing circuits.
There are divergent BTI: under CN code 8528 51 00 as a monitor of the kind solely or principally used with an ADP system of heading 8471 and under CN code 8528 59 90 as other monitors.
Function:
The apparatus enables the users to view images using an LCD screen fitted to a glasses-like frame with incorporated audio output and the device can be connected, through its VGA input, to a PC or Notebook and through an AV connector to other multimedia devices, such as video players, MP4 players, personal media players, portable DVD players, games consoles or television receivers. According to its technical characteristics, it is designed for, for example, video gaming and for watching films, making use of its 3D stereoscopic effects.
Questions:
- Are all the video glasses devices identical?
- How to classifythe types with a VGA connection only?
Discussion:
The MS submitting the case explained that some types of video glasses can be connected to various apparatus whereas other types can only be connected to computers as they have only the VGA connector.
Two MS argued that, after the ruling in ECJ Case C-367/07 (Kamino), the criterion of connectors is no longer valid and that the analysis has to be done on a case-by-case basis.
One MS informed that it has issued BTI under HS subheading 8528 51 for video glasses connectable solely to a PC and under HS subheading 8528 59 when connectable to other devices. It also suggested that HS heading 8543 is an option for the ones with 3D effects.
Some MS would consider the video glasses to be a kind of monitor and therefore classify the device under HS heading 8528 59, as it can receive signals from various sources so that it cannot be solely or principally for ADP systems. Other MS support this opinion.
Conclusion:
Majority in favour of classification under HS subheading 8528 59. No MS would classify the device under HS subheading 8528 51 or HS heading 8543.
Action Points:
Draft statement will be prepared for the PG on monitors.
4.4Gas generator (TAXUD/ 51402/2010)
Facts:
A gas generator used to inflate passenger airbags. The gas mixture is 20 percent nitrous oxide, 70 percent argon and 10 percent helium. The bottle is made of steel. When the initiator is activated by an electrical signal, the inert gases are heated and released to fill the airbag.
BTI have been issued: under HS subheadings 8405 as producer gas generators and under HS heading 8708 as parts of vehicles.
COM provided MS with the minutes of the 248th and 256th meetings, held in 1993, where all MS accepted to classify the gas generators as parts of vehicles under HS heading 8708.
Questions:
- How do these gas generators work? Are there different types?
- Does the text of HS heading 8504 "Producer gas or water gas generators" cover this type of gas generator?
Discussion:
The MS submitting the case explained that gas generators are to be classified under HS heading 8708 by application of Note 3 to Section XVII, as they are recognizable for installation exclusively in vehicles and used in airbags systems. It also pointed out that, at the 248th meeting, MS concluded that gas generators are to be classified under HS heading 8708.Another MS supports this classification and pointed out that there have been no changes in the Nomenclature since 1993.
One MS said that Note 2(e) to Section XVII excludes articles of Chapter 84 because these are properly classified under HS heading 8405. Other MS also support classification under this HS heading as these articles are not used exclusively in airbags but also as components in other machines.
A MS said that it is a pyrotechnic article of Chapter 36. It cannot be classified under HS heading 8405 because it has electric ignition. Another MS would classify the product either in Chapters 28 or 29 because it is an incomplete gas generator without an ignition. With an ignition it would classify the product in Chapter 36.
A MS would excludeHS heading 8405 as it only covers specific types of gas generators. Another MS agrees with classification under HS heading 8708 as the product does not fall within the text of the HS heading 8405. It also explained that there are two main types of gas generators for airbags, the pyrotechnic and hybrid, and the latter is a container with gas compounds where the nitrous oxide function spreads, very quickly, the other gases (argon and helium) into the bag. Other MS also support classification under HS heading 8708.
Conclusion:
HS headings in Chapters 28, 29, 36, 84 and 87 seems to merit consideration. There might be a need to take a closer look at the description of the product.
Action Points:
Draft regulation will be prepared for a forthcoming meeting.
4.5 Selfdrilling screws (TAXUD/60507/2010)
Facts:
A self tapping (parker) screw of HS subheading 7318 14 has the ability to cut its own thread into whichever material it is being inserted.
However, there are divergent views on how to classify so called "selfdrilling screws" which are also self tapping but have bifurcated tips to enable them to drill their own pilot hole.
No divergent BTIs, but according to the MS that submitted the issue, many of the BTIs issued do not reflect the presence of the bifurcated tip. Also multilateral contacts indicate divergent views.
A national tribunal in one MS issued a ruling for a similar type of screw, excluding its classification in HS subheading 7318 14.
Questions and discussion:
Are "self drilling screws" to be classified as self tapping screws in HS subheading 7318 14?
Or does the fact that they have the ability to drill their own pilot hole, (not a feature of a self tapping screw (as described in the HSEN to 7318), mean that this product goes beyond the terms of 731814 and should be classified under HS subheadings 7318 15 51 to 7318 15 90 depending on the particular characteristics of the product?
Is the product covered by the national court ruling similar to those pictured in the annex to document TAXUD/60507/2010?
Some MS would classify self drilling screws under HS subheading 7318 14, as the conditions for the classification under these subheading are met;in their view the additional features do not alter the character of the screws.
Some MS pointed out that the terms "self drilling" and "self tapping" are usually interchangeable.
One MS referred to a WCO classification opinion for self drilling screws in HS subheading 7318 14
Conclusions:
Majority of MS agreed with classification of self drilling screws under HS subheading 7318 14.
Action points:
Draft statement to be prepared for a future meeting.
MS involved will inform the COM:
- whether the product covered by the national court ruling is the same as one of those illustrated in the annex of document TAXUD/60507/2010 and, if so, which one?
and
- whether a draft Regulation is requested by any MS and, if so, for which product?
4.6 Parts of safety seat belts (TAXUD/118262/2010)
Facts:
Divergent classification of parts of safety seat belts. One MS has issued a BTI for the so-called “wave” (the product under discussion) under HS subheading 8708 29. Another MS has issued a BTI forparts of safety seat belts in HS subheading 8709 21. The MS who submitted the issue has received a BTI application for the so-called "wave" and would also classify it in HS subheading 8709 21.
Multilateral contacts showed that there are divergent views among MS (HS (sub)headings 8709 21, 8709 29 or 8425)
Question:
Classification under HS subheading 8708 21(as a part of a seat belt), HS subheading 8709 29 (as other parts of vehicles)or HS heading 8425 (as pulley tackle and hoist)?
Discussion:
Some MS argued for classification in HS subheading 8709 29, as the text of HS subheading 8709 21 (Safety seat belts) does not contain "and parts thereof" as it is in case of other codes for car parts (for example HS subheading 8708 30 - brakes and parts thereof).
Other MS were of the opinion that the general principle is to classify "parts" of the product with this product (if identifiable) and the product should,therefore, be classified in HS subheading 8708 21.
Some MS were of the opinion that the complete safety belts are to be classified in Chapter 87 while their parts should be classified out of this chapter – in this case in HS heading 8425 that explicitly mentions this type of product. Other MS opposed stating that this heading covers only simple lifting or handling equipment.
Conclusions:
Majority of MS would classify the product in Chapter 87 whereas other MS argued for classification elsewhere.
Action points:
The MS that submitted the issue is asked to provide more information on the product (sample, diagram etc.).
Items for further examination:
4.7Printer cartridges (TAXUD/152194/2009)
The MS submitting the issue has provided copies of its national court rulings as well as samples of the products concerned to DG TAXUD. Further factual research is currently being undertaken by COM and this MS.
One MS asked whether copies of these rulings can be distributed to all participants of the Committee. COM will check with the MS concerned.
4.8IGBT modules (TAXUD/342442/2009)
Discussion on the item was postponed because of lack of time.
4.9Christmas articles (TAXUD/0676/2009+Annex)
Discussion on the item was postponed because of lack of time.
4.10"Fußelastic" insoles (TAXUD/221457/2009, TAXUD/118410/2010)
Discussion on the item was postponed because of lack of time.
Items for conclusion
4.11Draft CNEN: TV tuners (TAXUD/127279/2010) *
Facts:
Chair presented a draft proposal for updating the CNEN, reflecting that there are three types of TV tuners: (1) for analogue television only, (2) for digital television only and (3) a mixed type for both types of reception.
Discussion:
One MS questioned the meaning of "incomplete or unfinished" in the draft. One MS would delete it. COM explained that the text "video tuners" in the HS subheading applies to complete reception apparatus for television - such as a satellite receiver or a cable receiver - and the product under examination (TV tuner module) is only a component of such apparatus but is, nevertheless,considered to be "incomplete or unfinished" by application of GIR 2(a).