TAXUD/2730/2005-EN

/ EUROPEAN COMMISSION
DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
International Affairs and Tariff matters
Convention of HS, combined nomenclature, tariff classification

Brussels, 10.01.2006
Ref.: D/ 8011

DG TAXUD/B/3 D(2006)

CUSTOMS CODE COMMITTEE
Tariff and Statistical Nomenclature Section
(Agriculture/Chemical Sector)


Summary Record of the 384TH MEETING of the Committee

Please find attached the summary record of the 384th meeting of the Tariff and Statistical Nomenclature Section (Agriculture/Chemical Sector) of the Customs Code Committee, held in Brussels from 15 to 16 December 2005.

(Signed)

(Signed)

K. Vangrieken
Head of Unit

Copies: Mr Verrue, Director-General TAXUD
Mr Arnal, Director TAXUD/B, Mr Wiedow, Director TAXUD/C
Heads of Units TAXUD/B and TAXUD/C
Delegates to the Customs Policy Group (Deputies)
Customs Attachés of the Member States

http://regcom.sg.cec.eu.int

Attachments: 1

22

TAXUD/2765/2005-EN

/ EUROPEAN COMMISSION
DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
International Affairs and Tariff matters
Convention of HS, combined nomenclature, tariff classification

Brussels, 10.01.2006

DG TAXUD/B/3

LIMITED

CUSTOMS CODE COMMITTEE
Tariff and Statistical Nomenclature Section
(Agriculture/Chemical Sector)


Summary Record of the 384th MEETING of the Committee
held in Brussels from 15 to 16 December 2005

AGENDA

1. Adoption of the agenda.

2. Draft Commission Regulations and Explanatory Notes submitted to the Committee for an opinion under Article 9 of Regulation (EEC) No. 2658/87 as amended by Article 252 of Regulation (EEC) No. 2913/92.

2.1 Tariff classification of sugar with a small quantity of cocoa. TAXUD/0583/2005 Rev.

2.2 Tariff classification of sugar-mix, TAXUD/0582/2005-Rev. 2

2.3 Tariff classification of a product named "Moldavian Dessert Wine", TAXUD/0619/2005 Rev. 1 (document in preparation).

2.4 Proposal amending the Combined Nomenclature Explanatory Notes (dried leguminous vegetables; subheadings 07139010 and 07139090 (horsegram and guar)), TAXUD/2721/2005.

3. Points soumis au Comité pour discussion au titre de l’article 8 du règlement (CEE) n° 2658/87 modifié par l’article 252 du règlement (CEE) n° 2913/92.

3.1 Tariff classification of yogurt with additives (diverging BTI's), TAXUD/0645/2005 and TAXUD/0692/2005.

3.2 Tariff classification of hazelnuts and sugar preparations (préparations pralinées) from a Candidate Country, TAXUD/2724/2005.

3.3 Tariff classification of two filled wafer products in the combined nomenclature (CN), TAXUD/2704/2005.

3.4 Tariff classification of a product described as "Original Schwedenbitter aus 32 Kraeutern", TAXUD/2715/2005.

3.5 Tariff classification of a cellular plastic plate of ethylene-vinyl acetate copolymer, TAXUD/0599/2005 Rev. 1 .

3.6 Tariff classification of alcoholic herbal preparations, TAXUD/2723/2005 .3.7 Tariff classification of jojoba oil derivatives, TAXUD/0672/2005 and TAXUD/2742/2005

3.8 Tariff classification of a whey product , TAXUD/2720/2005

3.9 Tariff classification of breakfast cereals, TAXUD/0665/2005.

3.10 Tariff classification of a starch product, TAXUD/0674/2005.

3.11 Tariff classification of preparations containing coenzyme Q 10, TAXUD/2736/2005.

3.12 Tariff classification of Magnesium and Calcium preparations, TAXUD/2737/2005

3.13 Tariff classification of Tianshi Zinc Supplement, TAXUD/0659/2005.

3.14 List of pending cases, TAXUD/2743/2005, files to be closed.

4. Pré-coordination de la 21ème session du Sous-Comité Scientifique OMD

Delegates are kindly asked to bring the WCO documents to the meeting.

5. Divers

5.1 Report on the ad hoc group meeting revision heading 20.09 (fruit juices), TAXUD/0663/2005

======


1. Adoption of the agenda.

All Member States, with exception of one Member State, were represented (see the attendance list in Annex III to these minutes).

The agenda was adopted without change.

2. Draft Commission Regulations and Explanatory Notes submitted to the Committee for an opinion under Article 9 of Regulation (EEC) No. 2658/87 as amended by Article 252 of Regulation (EEC) No. 2913/92.

2.1 Tariff classification of sugar with a small quantity of cocoa. TAXUD/0583/2005-Rev.1.

The Committee examined a draft classification regulation on a product imported in Latvia consisting of sugar with small quantities of cocoa powder.

The proposal, as redrafted by an ad-hoc working group on sugars held in Brussels in November 2005, confirmed that the food preparation is to be classified under subheading 1806 10 90 because of Note 2 to chapter 18, which is legally binding, even if cocoa powder is present in very small percentages (0.4% around on a totally defatted basis).

A round of the table indicated that a large majority of the delegations could agree with the revised proposal after some editorial amendments have been made. The Committee then delivered a favourable opinion (one Member State was absent), to the proposal for a classification regulation as set out in Annex I to these minutes.

Two members abstained. One of these Member States abstained because of national inner considerations. The other Member State abstained because, owing to problems of interpretation in their language, preferred to define the product as a mixture of sugar and cocoa powder rather than as a preparation.

2.2 Tariff classification of sugar-mix, TAXUD/0582/2005-Rev.2

The Committee examined a draft classification regulation of some products (No 1 to 11 of the list in Annex II) consisting of sucrose or white sugar and small quantities of other substances. The proposal, as redrafted by an ad-hoc working group on sugars held in Brussels in November 2005, classified these mixtures in different subheadings according to the percentages of other substances added to sucrose. As a consequent of that, the Chairman felt that different rounds of the table were necessary to let MS show their advice on the main groups of products.

As to the first group (No 1, 2, 3, 4), a round of the table indicated that classification in subheading 1701 99 90 was shared by a large majority of MS. The Committee then delivered a favourable opinion (one Member State was absent), to the proposal for a classification regulation as set out in Annex II (No 1, 2, 3, 4) to these minutes.

As to the second group of products (No 5, 6), in which cocoa butter is present in small percentages, classification in subheading 2106 90 98 was approved by the same consensus of MS and after some editorial amendments have been made. The Committee then delivered a favourable opinion (one Member State was absent), to the proposal for a classification regulation as set out in Annex II (No 5, 6) to these minutes.

A third round of the table showed that all delegations could accept classification in subheading 1701 99 90 for product No 7 as cocoa butter is present in so small percentages that are not sufficient to alter its sugar characteristics. The Committee then delivered a favourable opinion, after some editorial amendments have been made (one Member State was absent), to the proposal for a classification regulation as set out in Annex II (No 7) to these minutes.

As to product No 8, in which the content of sucrose and sodium chloride was measured by AT laboratories' chemical analysis (in particular, the content of sucrose was measured both by HPLC (98,65 %) and by polarimetric method (97,53 %), while that of the sodium chloride by potentiometric method (2,29 %)), the majority of MS reached an agreement on the classification proposal and after some editorial amendments have been made. Nevertheless, on the one hand, one Member State asked to add in the minutes one of its document to be sent from the national customs administration, on the other hand, another Member State abstained because preferred classifying the concerned product as a food preparation of heading 2106. The Committee then delivered a favourable opinion (one Member State was absent), to the proposal for a classification regulation as set out in Annex II (No 8) to these minutes.

As to product No 9, the majority of MS reached an agreement on the classification proposal after some editorial amendments have been made. PL abstained because, owing to problems of interpretation in Polish language, preferred to define the product as a mixture of sugar and common wheat rather than as a preparation. The Committee then delivered a favourable opinion (one Member State was absent), to the proposal for a classification regulation as set out in Annex II (No 9) to these minutes.

Two further rounds of the table indicated that for products No 10 and 11 a large majority of the delegations could agree with the revised proposal after some editorial amendments have been made. The Committee then delivered a favourable opinion (one Member State was absent), to the proposal for a classification regulation as set out Annex II (No 10, 11) to these minutes.

2.3 Tariff classification of a product named "Moldavian Dessert Wine", TAXUD/0619/2005-Rev. 1 (document in preparation).

The issue was not discussed due to the fact that translations into MS languages did not yet arrived before the deadline date of the Committee's meeting (owing to work overload of the relevant Commission Service).

2.4 Proposal amending the Combined Nomenclature Explanatory Notes (dried leguminous vegetables; subheadings 07139010 and 07139090 (horsegram and guar)), TAXUD/2721/2005.

The Committee examined the draft proposal for amendment submitted by the Commission which takes into account the changes to be undertaken in the CN-Explanatory Notes (CNEN) on the basis of new scientific research in botanic classification of Vigna. Consequently, horsegram, presently classified under subheading 07139000, has to be correctly classified under subheading 07133900 in order to follow the botanic classification system. Furthermore, the addition of the Latin name "Cyamopsis tetragonoloba" for guar in subheading 07139000 was agreed.

Subheading 07139000 was created in 2003 by suppressing subheadings 07139010 and 07139090 (for statistical reasons). The presently existing CNEN have been published in 2002, still showing those – in the meantime obsolete – subheadings. Consequently, the proposed amendment takes also care of this point in view of the new publication of the CNEN in 2006.

A round of the table indicated that the delegations could agree with the proposal after some minor changes to the text. The Committee then delivered a favourable opinion (one Member State was absent), to the proposal for an amendment of the CNEN as set out in Annex III to these minutes.

3. 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.

3.1 Tariff classification of yogurt with additives (diverging BTI's), TAXUD/0645/2005 and TAXUD/0692/2005.

One Member State asked for a discussion on the interpretation of additives permitted in yogurts of heading 0403. While this Member State classifies yogurt with added aloe vera in position 2202, another Member State regards it as product of heading 0403 (containing more than 70% of yogurt), respectively of heading 1901 (containing less than 70% of yogurt). Yogurt with added stanol ester is regarded by the first Member State as product of heading 0403 while the other Member State classifies it in heading 2202. BTI's have been issued accordingly and the problem could not be solved bilaterally.

Reference to classification regulation (EC) No 306/2001 (product No 4 in the annex) on a similar product has been made. Discussions at WCO level in May 2005 (in the HS Review Subcommittee) on the possibility of setting up an exhaustive list of substances allowed in products of headings 0401 to 0404 have not yielded results. The chairman stated that consultations have to take place before setting up classification regulations for both kinds of products. He concluded that draft classification regulations will be submitted to one of the forthcoming meetings of the Committee.

3.2 Tariff classification of hazelnuts and sugar preparations (preparations pralinées) from a Candidate Country, TAXUD/2724/2005.

The Committee examined two hazelnuts and sugar preparations (preparations pralinées) imported from a Candidate Country and presented in the form of granules or of a fluid paste. The composition of both products is identical and no cocoa traces are present.

The majority of MS could accept for both of them classification in subheading 2008 19 19 following the Commission proposal. Some MS felt, however, that the second product could not be excluded from heading 1704. Another MS thought, on the contrary, that this last heading could cover solid or semisolid products but not liquid products or those consisting of a fluid paste.

The representative of the Candidate Country, which had been asked to give a complete overview on the issue, showed the samples of the two products and sustained classification in subheading 2008 19 19. On the one hand, he suggested some slight amendments to the proposal so as to take into account the current market needs (a more flexible range of percentages of hazelnut and added sucrose). On the other hand, he asked adding in the same proposal and under the same subheading a third product which differs only because it is generally presented in the form of flakes.

Most MS shared the Candidate Country's opinion that these preparations are intermediate products generally used for ice-creams or chocolates, but asked more information on the production process. Specification of the moment in which sugar is added to hazelnuts (if before, during or after their roasting) was felt as a key-element for classification.

The Chairman then invited the Candidate Country to provide more details about the production process and, as to the third product, about the dimension and shape of the flakes with a view of preparing a classification regulation for discussion in one of the forthcoming meetings.

3.3 Tariff classification of two filled wafer products in the combined nomenclature (CN), TAXUD/2704/2005.

One Member State asked for a discussion on the interpretation of filled wafer products. The products in question have been classified by the HS Committee in 1995 (not published as classification opinion) in heading 1704.90 and in heading 1806.90 whereas this Member State classifies them both in heading 1905 as it regards the wafer as essential and characterising element.

Another Member State prefers the classification by the HS but could not solve the problem in bilateral consultations. A table round showed that only five Member States would classify these products in heading 1905 while the others followed the HS classification. The chairman stated that DG TAXUD will ask the Legal Service for advice on this issue, i.e. if a decision to revoke the existing BTI's from that Member State (DE) has to be taken in case the HS classification - although not published as classification opinion - is regarded as binding, or if a draft classification regulation has to be set up. The Committee will be informed accordingly by the DG TAXUD.

3.4 Tariff classification of a product described as "Original Schwedenbitter aus 32 Kraeutern", TAXUD/2715/2005.