JCCC Customs Newsletter 31

JCCC Customs Newsletter 33

Issues in the Customs and International Trade area

October 2011 Edition

1:The Customs Newsletter.

2:Reports from EU/ International meetings

2.1 Customs Code Committee, Tariff & Statistical Nomenclature Section – Statistics Sector:

2.2 Customs Code Committee - Tariff & Statistical Nomenclature Section - Tariff Classification

Mechanical and Miscellaneous Sector – 67th Meeting (26th- 27thSeptember)
Agriculture and Chemical Sector – 68th Meeting (12th – 14th October )
Textile Sector – 69th Meeting (20th-21st October 2011)

3: Reports on projects

3.1 Import Control System

3.2 Regimes in Customs

4: Changes in Customs

4.1 Alterations to Customs Notices

4.2 Anti Dumping Duty Measures

4.3 List of Customs Information Papers (CIPS)

5: What is it?

The Charter

6:Hints on

Reviews

7:Did you know?

1:The Customs Newsletter.

Welcome to Issue 33 of the Customs Newsletter covering August 2011 to October 2011.

The aim of this newsletter is to better inform importers and exporters of changes in the procedures for movement of goods across borders.

2:Reports from EU/ International meetings

2.1 Customs Code Committee, Tariff & Statistical Nomenclature Section – Statistics Sector:

As reported in Newsletter 32, all of the Commodity Code changes to the Combined Nomenclature (CN) for 2012 have been agreed.

Owing to restructuring of the 6-digit Harmonised System (usually every 5 years) – upon which the CN is based – the level of code changes for 2012 is notably higher.

It is advisable, therefore, to take special care when classifying your goods in 2012; Sectors including Fish, Meat, Fruit & Vegetables, Fuels and Chemicals contain particularly complex reclassifications.

The CN was formally published via EU Official Journal L 282 on 28 October 2011 (EC Regulation 1006/2011 – 27.09.2011).

The HMRC sponsored website provides a link to CN 2012 and was announced through its ‘Latest News’ feature on 31 October.

This site also contains Correlation Tables describing the codes affected, with other supporting information on the above.

For any further information on these issues, please Email the contact below.

Contact:

2.2 Customs Code Committee - Tariff & Statistical Nomenclature Section - Tariff Classification

Mechanical and Miscellaneous Sector – 67th Meeting (26th- 27th September 2011)

Summary

Nine Regulations were finalised at this meeting. A CN Explanatory Note was finalised in respect of LCD Modules. A Commission Statement was agreed in respect of a Camcorder with DV-in.

Of the other topics discussed, the UK has particular interest in issues relating to the WTO panel report implementation (Additional note to Chapter 85, Multifunctional digital machines (MFMs), and LCD Monitors),Multifunctional decoder/recorders with communication function, and high speed cameras. Also, clarification of the product covered under the title “TV stands”.

Topics for Voting

Regulations

The following Regulations were adopted.

Pocket sized video recorder

A product with specifications that indicate classification as a digital camera of 8525 80 30 by applying with the CNENs to 8525 80 30;

“Cameras remain classified in this subheading unless they are capable, using the maximum storage capacity, of recording, in a quality of 800 x 600 pixels (or higher) at 23 frames per second (or higher) at least 30 minutes in a single sequence of video.”

However, the product is only capable of recording video; classification in 8525 80 99.

LCD modules (see also CNENs below)

The classification of an LCD module with “source drivers IC”. The “source drivers IC are considered to be more than electrical connectors, excluding the product from classification in heading 9013.

Classification in subheading 8529 90 92 44.

Cervical collars

A product comprising a plastic collar to fit the neck with a shock absorbing foam layer and hook and loop fasteners, used to support a person’s neck and head. Classification in subheading 9021 1010.

Titration device

A product for dispensing a liquid into a container for titrimetric analysis. It is a precision dispensing apparatus, which releases a drop of the titrant into the liquid to be analysed. The drop contains a specific volume of the titrant, and the number of drops dispensed by the titrator is displayed on the counter.

Classification in subheading 8479 89 97.

IGBT modules

The proposed vote on the Integrated Gate Bipolar Transistors did not take place, as the issue was discussed and voted on by the Harmonised System Committee. The HSC voted to classify the product in heading 8541. It is possible that a contracting country will enter a reservation against the decision.

Video glasses

The classification of electronic eyewear apparatus for displaying 3-D video images for entertainment purposes. Classification in subheading 8528 59 40.

Wireless audio/video transmitter

A product in the form of a set comprising;

(A) A wireless transmitter for TV signals, with a wireless receiver for radio remote control signals incorporating an infrared transmitter and 2 separate antennas

and

(B) A wireless receiver for TV signals, with a wireless transmitter for radio remote control signals incorporating an infrared receiver and 2 separate antennas.

The set is designed for transmission of an audio/video signal from an external source connected to (A), to another audio/video apparatus such as a monitor or a TV connected to (B), within a range of 400m.

Classification in subheading 8528 71 99.

I-O modules

A Regulation covering 2 products;

1) An analogue input module which receives analogue signals representing e.g. measurements of temperature, speed etc. The module converts and processes the signals before sending them to a programmable logic controller.

Classification in subheading 8538 90 99.

2) A discrete output module which processes and converts discrete signals representing an On/Off signal before sending them to various external devices such as contactors, relays and indicator panels.

Classification in subheading 8538 90 99.

Laser handpieces

A Regulation covering 2 products;

1) A device that generates intense pulsed light for specific cosmetic treatments e.g. permanent hair removal. It only works in conjunction with a base unit from which it receives power, control signals and cooling fluid.

Classification in subheading 8543 90 00.

2) A device that generates laser light for the cosmetic treatment of leg veins. It only works in conjunction with a base unit from which it receives power, control signals and cooling fluid.

Classification in subheading 8543 90 00.

Traction system for elevators

A gearless traction machine installed in lift shafts for lifting or lowering the cabin. Classification in subheading 8425 31 00.

CN Explanatory Notes

The following CNEN was adopted.

LCD Modules (see also Regulations above)

A CNEN confirming that subheading 8529 90 92 covers LCD modules equipped with one or more printed or integrated circuits, with control electronics (such as a video converter or a scaler) for video processing.

The Note also states that the subheading does not include liquid crystal devices, whether or not fitted with electrical connections, presented in the piece or cut to special shapes, which are classified in heading 9013.

Classification Statements

A Statement was adopted in respect of “Camcorder with DV-in”

Video camera recorders (so-called "camcorders") for the recording not only of sound and images taken by the camera but also of signals from external sources are classified under subheading 8525 80 99.

In accordance with the CN Explanatory Notes to subheading 8525 80 99 and the rulings of the Court of Justice of the European Union in cases C-208/06, C-209/06 and C-312/07, a camcorder may be classified under subheading 8525 80 99 if the function of recording images and sounds from sources other than the integrated camera or microphone is active at the time of customs clearance, or if that function may be activated subsequently by simple modification of the apparatus by a user who does not have special skills, without modification of the camcorder's hardware.

Where the camcorder is activated subsequently, it is also necessary that at the time of customs clearance:

- it functions in a manner similar to that of another camcorder whose function for recording images and sounds from sources other than the integrated camera or microphone is active at the time of customs clearance, and

- it functions independently.

Topics for Discussion

World Trade Organisation (WTO) Panel Implementation

A WTO disputes panel has ruled that the tariff treatment given to certain IT products by the EU is incorrect. The products at issue are certain types of LCD Monitors, Set-top boxes and multifunction printer copiers. The EU implemented certain measures from 1 July 2011, specifically introducing new codes for set top boxes and multifunctional printer copiers;

Set top boxes (with an in-built tuner)

8528 71 15

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 (so called “set-top boxes which have a communication function”, including those incorporating a device performing a recording or reproducing function, provided that they retain the essential character of a set-top box which has a communication function)”

8528 71 19

Other

Set top boxes (without an in-built tuner)

8528 71 91

8528 71 99

Other

Multifunctional Printer Copiers

Machines which perform two or more of the functions of printing, copying or facsimile transmission, capable of connecting to an automatic data-processing machine or to a network:

8443 31 20

Machines having digital copying as principal function, where the copying is performed by scanning the original and printing the copies by means of an electrostatic print engine

8443 31 80

Other.

There is some uncertainty on the precise coverage of the codes, specifically in relation to the scope of the term “modem” (set-top boxes), and whether it should include other technologies which enable access to the Internet, and to define then term “interactive information exchange”.

In relation to multifunctional printer copiers, how to determine when digital copying is the principal function?

The Commission undertook to provide guidance by the end of 2011, and it is likely that proposals will be voted on at the next Customs Code Committee meeting, due to take place in late November.

A number of member states are participating in Project Groups organised by the Commission, which are intended to formulate guidance and look at the appropriate classification of various products. This will be in accordance with the findings of the WTO panel report.

A second Project Group took place in Denmark from 17 to 19 October (HMRC will attend) in which a number of products were examined and draft Regulation texts prepared. The Group can only make recommendations; only the Customs Code Committee can make a final decision.

The Commission considered that there was no need for measures to implement the findings of the Panel in relation to flat panel displays (LCD monitors). This was because the measures found to be in breach of the EU’s commitments under the GATT 1994 have already been withdrawn.

There is divergent practice amongst member states in relation to the classification of LCD monitors. A product was on the agenda of the Customs Code Committee (26/27 September), but the item was not discussed.

Multifunctional decoder/recorder with communication function

The classification of set-top boxes with a video recording function. In the BskyB/Pace plc European Court case, the Court concluded that the set-top boxes at issue were primarily TV receivers, and classified in heading 8528. The Committee are asked to consider whether there are products in which video recording is the principal function rather than the TV function, with a classification in heading 8521.

There was only an initial discussion at the meeting with no conclusions reached.

High Speed Camera

A high speed camera designed to record images at very high speed, which is used to simulate the effect of e.g. a car crash in a research facility etc.

A UK Lower Tier Tribunal classified a high speed camera as a digital camera in subheading 8525 80 30 (Photron Europe Ltd; LON/2007/7031). A Commission Statement had previously classified these goods as video camera recorders in subheading 8525 80 91. HMRC has asked the Commission/Customs Code Committee to consider the classification once again, with a recommendation that a Commission Regulation is published to clarify the appropriate classification.

HMRC has been granted leave to appeal the classification decision to the Upper Tier Tribunal; a hearing date has not been set.

TV Stands

Please note that this product is not related to the Committee’s discussion on TV stands that resulted in the product being classified in heading 9403, and publication of Commission Regulation 313/2011.

The product currently under discussion sits on the top of the TV stand and includes a mounting bracket to which the TV is attached. The issue is whether the product is a part of a TV of heading 8529, or whether it should be classified according to its constituent material. No firm conclusions have currently been reached by the Committee.

HMRC has asked the Commission to change the subject title.

The next meeting was due to take place w/c 28th November 2011 but has been cancelled. Confirmation of the date of the next meeting is awaited.

Contact: David Harris 01702 367372

Email:

Agriculture and Chemical Sector – 68th Meeting (12th -14th Oct 2011)

Summary

No regulations were finalised at this meeting but 6regulations were adopted:-

Classification of :-

A mixture of 70% ethanol 30% gasoline (2207),

Plastic drinking bottles (3924)

Mixtures of oderiferous substances (3302)

A solid residue from the extraction of soya bean oil (2304)

A gel put up for the relief of pain (3824)

Classification of 5 products were agreed upon:-

products consisting of monosodium glutamate and sodium chloride (3824),

breaded cheese (2106) – UK submission (change of UK practice).

egg yolk powder with additives (2106)

plastic infant feeding bottles (3924)

of vitamin preparations 2106.

Of the other topics discussed, the UK has particular interest:-

Classification of prepared seaweed.

Should seaweed be classified as a plant (Heading 2008) or as an algae (Heading 2106).

Conflicting Botanical reports led to a split decision. Discussion ongoing

Classification of shower gels for washing the hair and skin.

Should shower gels be classified to Heading as a shampoo (Heading 3305) or a preparation to wash the skin (Heading 3401).

Slight majority to Heading 3401. Discussion ongoing.

Statements

No Statements were issued.

Topics for Discussion

Classification of “Partner cigarillos”

This itemwas discussed to establish if the product should be classified to Heading 240210 as a cigarillo or to Heading 240220 as a cigarette.

MS votes were split. Case ongoing.

The next meeting of the Ag/Chem Committee will be on 7th – 9th December.

Contact: Rob Accleton 01702 367251

Email:

Textile Sector – 69th Meeting (20th- 21ST October 2011)

Summary

8 draft regulations discussed. A CN Explanatory Note was finalised in respect of single use non woven gowns and made up non woven drapes.

Topics for Voting

The following CNEN was adopted.

Single use gowns made up of fabrics of heading 5603, of a kind used by patients or surgeons during surgical procedures classified within heading 6210 10 92 and single use drapes made up of fabrics of heading 5603, of a kind used during surgical procedures within heading 6307 90 92.

Topics for Discussion

Draft regulations under discussion awaiting approval were:-

Santa hats possibly classified to either Chapter 65 hats or Chapter 95 festive articles. Discussions ongoing.

Safety net for a trampoline possibly classified within Chapter 5608 as other nets or Chapter 9506 accessories to a trampoline. Discussions ongoing.

Wooden lacquered perfume bottle possibly Chapter 42 due to its resin coating or 4420 due to it being a lacquered wooden box. Discussions ongoing.

Radiation protective garments possibly Chapter 62 under clothing or Chapter 81 to the material which gives it its essential character. Discussions ongoing.

Panel curtain made from non-woven material, paper and bamboo sticks possibly Chapter 4823 or Chapter 6303. Discussions ongoing.

Classification of a moulded case which has wheels, a handle and a child could sit on it. Possible headings 4202 as a suitcase or 9503 as a wheeled toy. Discussions ongoing.

Classification of a control strip bracelet with printed numbers on it. Possible headings under Chapter 56 non woven strip, Chapter 49 essential character the printing, or Chapter 6307 other made up articles. Discussions ongoing.

Classification of garlands with artificial flowers placed around the neck. Possible headings under Chapter 71 necklace, Chapter 67 artificial flowers in the shape of a garland, Chapter 95 festive article and Chapter 63 other made up articles. Discussions ongoing.

The next meeting to take place w/c 6th February 2012.

Contact: Beth Earwicker 01702 361880

Email:

3: Reports on projects

3.1 Import Control System Seminar

On 6 -7 October the UK hosted a seminar in Richmond to evaluate the Import Control System (ICS) project. The seminar brought together policy and operational staff, IT staff, and those responsible for risk management. Apart from evaluating the overall project implementation and comparing aims with outcomes the seminar also looked for areas of improvement.

The member states were helped by two traders who gave presentations on their experiences of ICS.

One of the lessons learned from ICS is the need to ensure a consistent approach to publicity outside the EU. It was felt that some of the information provided to the trade had been sketchy in places. In addition earlier publication of guidance and a clearer vision of long term goals would have helped in the initial stages.

On the positive side the seminar noted that the system had not adversely affected the movement of goods within the community and had led to increased collaboration between the trade and member states when developing the guidelines. The introduction of the grace period had also been beneficial way of proving trade systems and processes without fear of penalty.

The seminar concluded that there are 5 main high level areas for improving the effectiveness of ICS and associated risk management.

The affect of the Air cargo security review needs to be given the highest priority as it is thedirect result of a specific incident affecting EU security.
Improvements of the content of ENS without changing the current ENS structure. Suchchanges are related to introducing stricter rules for the content of the ENS and couldpotentially be implemented in the next 2 years.
Data improvements where a new process has to be added or a change of the structure of ENS isrequired where implementation is feasible in 3-4 years.
Improvements based on new solutions such as for example the use of a central solution, allowing a standard EU interface to trade for Security and Safety or the storage and re-use of shared data on an EU level.
Changes related to the Modernised Customs Code (MCC) and its Implementing Provisions,including Annex 52 defining datasets used in declarations. The date of implementation is yetto be decided but will be reflected upon during the process of the re-cast of MCC.

The Commission have drafted a report of the Seminar and it is expected that this will be widely available in early December.

JCCC Customs Newsletter 31

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