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

Brussels, 7 October2009

TAXUD/B/3 EJD(2009)301617

CUSTOMS CODE COMMITTEE

Tariff and Statistical Nomenclature Section

HS/WCO Coordination Sector

Report of the conclusions of the 15thmeeting of the Committee

Please find herewith, the summary of the conclusions of the 15thmeeting of the Tariff and Statistical Nomenclature Section (HS/WCO Coordination Sector) of the Customs Code Committee, held in Brusselsfrom9thto 11th September2009.

(signed)

Kristian VANGRIEKEN

Head of Unit

c.c.Delegates (Member States) to the Tariff and Statistical Nomenclature Section

(HS/WCO Coordination Sector) of the Customs Code Committee

Mr. Deffaa, Director General, Mr. Hurtado Roa, Assistant

Mr. Kastrissianakis, Director, TAXUD/B, Mr. Zielinski, Director, TAXUD/C

Heads of Units TAXUD/B, TAXUD/C

Customs attachés of the Member States

Delegates to the Customs Policy Group (Deputies)

TAXUD LIST B-3

1

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

Brussels, 15September 2009

EU LIMITED

CUSTOMS CODE COMMITTEE

Tariff and Statistical Nomenclature Section

HS/WCO Coordination Sector

Summary report of the 15thmeeting held in Brusselsfrom 9th to 11thSeptember2009.

AGENDA

1.Adoption of the agenda

2.Adoption of the minutes of the 12th coordination meeting (6 July 2009)

3.Pre-coordination of the 44th HS Committee meeting. Study of all available documents on the agenda of the aforementioned Committee and fixing of a joint position

Doc. WCO NC 1445

4.Recommendation of the Customs Cooperation Council of XX June 2009, amending the HS Convention. Acceptance by the EC

Second discussion. Doc WCO NG0154B1

5.Classification in the HS Nomenclature of a Rail-Road Operating Machine for Rail Welding "Spark-Rail"

Doc. TAXUD/136491/2009

6.Classification in the HS Nomenclature of a refrigeration plant “Crio Space Cabin”

Doc. TAXUD/194107/2009

7.Classification in the HS nomenclature of a machine for the production of printing plates. Possible dispute with the United States.

Doc. TAXUD/136495/2009

8.Possible amendment of the Explanatory note to heading 48.14

Doc. TAXUD/194124/2009

9.Any other business

10.Working Group with experts from the EC and Associated Countries (on 11thSeptember 2009, starting at 15H00, ending at 18H30):

10.1Mutual information on tariff matters and the setting-up of the Combined Nomenclature 2010

Doc. TAXUD/194114/2009

10.2Consultation between the European Commission / Associated Countries with a view to preparing the 44th meeting of the Harmonized System Committee of the World Customs Organization

Doc. WCO NC 1445

1.Adoption of the agenda

The Chairman announced that under item 5 the document TAXUD/136491 in its revised version was to be discussed.

The agenda was adopted unanimously as amended above.

2.Adoption of the minutes of the 12th coordination meeting (6July 2009).

Doc. 167120 of 8 July 2009

One delegation indicated that they had informed the Commission services of an amendment to one of their own statements made during the 12th meeting with respect to item 7, fourth paragraph, on page 5. This amendment is as follows:

"Another delegation indicated that according to the Explanatory notes to heading 87.05 motor vehicle chassis or lorries combined with working machines had to comprise certain specific mechanical features such as a motor, brake system, gear-box and controls for gear-changing and expressed some doubts if this was really the case for the rail-road operating machine at issue. Therefore, a reference to this Explanatory note might be used in analogy as an argument for excluding the vehicle from heading 8705."

Theminutes of the 12th coordination meeting as set out in document TAXUD/167120/09amended accordinglywere adoptedunanimously.

3.Pre-coordination of the 44th HS Committee meeting. Study of all available documents on the agenda of the aforementioned Committee and fixing of a joint position

Doc. WCO NC 1445

The Committee fixed a common position on all the items put on the agenda of the HSC meeting.

4.Recommendation of the Customs Cooperation Council of 26 June 2009, amending the HS Convention. Acceptance by the EC

Second discussion. Doc WCO NG0154B1

Following an inter-service consultation launched by DG TAXUD several comments had been received from other Commission services. One of these comments was concerning the amendments to Chapter 3. The details of all comments will be presented at the next coordination meeting due in November. MSwere also asked whether their administrations intended to put forward a reservation against any provision contained in the CCC Recommendation of 26 June 2007 on the HS 2012 Nomenclature.One delegation informed the Committee that following the information of the industry no objections had been received.

The Chairman urged delegations to send any comments they might have on the CCC Recommendation to the Commission services in time for the November coordination.

5.Classification in the HS Nomenclature of a Rail-Road Operating Machine for Rail Welding "Spark-Rail"

Doc. TAXUD/136491/09 Rev

In the meeting the requesting delegation presented additional information received from the producer showing similar machinery but having wheels for railroad tracks.According to several delegations this information did not help in the classification of the vehicle in question.

The core question seems to be whether Note 4 (a) to Section XVII can be applied as several characteristics clearly refer to a classification as a railway vehicle in Chapter 86 (purpose, structure, engine, very slow speed, breaking system, limited steering). However some features may be those of a lorry (chassis, wheels).

As the discussion had already been pursued during 4 meetings the chairman asked the MS for their opinion on the classification. The majority was in favour of heading 86.04 whereas some MS considered heading 87.05 as the correct classification. One delegation abstained.

Following the views expressed to consider this vehicle as a railroad vehicle and classifying it in heading 86.04 the Commission services will prepare a draft letter to the Moroccan customs administration for presentation at the next meeting due in November. Most probably the issue will have to be presented for discussion by the HSC at its next session due in March 2010.

6.Classification in the HS Nomenclature of a refrigeration plant “Crio Space Cabin”

Doc. TAXUD/194107/2009

The requesting delegation informed the Committee of the reception of a letter from the Customs administration of Belarusindicating that they maintained their views in favour of the classification of this type of apparatus in heading 84.18.

One delegation indicated that following a national court decision an infra-red therapeutic apparatus was not considered as a medical apparatus of Chapter 90, and that the "Crio Space Cabin" might not be a medical apparatus either.This delegation referred also to Classification Regulation N° 1231/2007 of 19.10.2007 (O.J. L 279 of 23.10.2007, p.3) of an infra-red sauna in heading 85.16 for which the medical character had been denied.

Following the views expressed by Belarusto consider this cabin as a medical apparatus and classifying it in heading 90.18 the Commission will prepare a draft letter to the Belarus customs administration for presentation for the next meeting due in November. Most probably the issue will have to be presented for discussion by the HSC at its next session due in March 2010.

The requesting delegation was asked to provide technical and commercial information from the producer on the product at issue.

7.Classification in the HS nomenclature of a machine for the production of printing plates. Possible dispute with the United States.

Doc. TAXUD/136495/2009

The Commission had been contacted by the International Chamber of Commerce. The producer of this machine will probably make a presentation to Commission officials in order to explain the way of working of this apparatus. The CCC-mechanical sector has also been contacted in order to give their views on the classification.

One delegation (explained that they had issued classification decisions and not BTIs to the importer for classification in heading 90.06 and that the importer had filed an objection to this decision. This administrative procedure had not been settled yet by their administration. Referring to their BTI issued for classification in heading 84.42 this delegation would need a justification in order to recall it.

From the commentsmade by some delegationsit became obvious that more information is needed if the thermal process for setting printing plates is similar or different to a photosensitive process.The Committee will wait for the results of the presentation by the producers and an opinion of the CCC-mechanical sector before further discussing the issue.

8.Possible amendment of the Explanatory note to heading 48.14

Doc. TAXUD/194124/2009

It seems that there is still no clear opinion on the conflict between Note 9, last sentence to Chapter 48 and the exclusion under letter c) in the Explanatory Notes to heading 48.14. According to the opinion of the CCC-mechanical sector Note 9, last sentence applies to all products for mixed use as floor and wall coverings (see also the CN-Explanatory notes to heading 48.11). It might therefore be necessary to replace the reference to heading 48.11 by heading 48.23 in the Explanatory Notes to heading 48.14, under letter c).

The Chairman concluded that for the next meeting due in November a new document should be drafted for presenting the issue to the HSC Secretariat.

9.Any other business

None

10.Working Group with experts from the EC and Associated Countries (on 11th September 2009, starting at 15H00, ending at 18H30):

10.1Mutual information on tariff matters and the setting-up of the Combined Nomenclature 2010

Doc. TAXUD/194114/2009

The representatives of the associated countries were informed on the state of play of the CN 2010.The structure of wines in heading 22.04 has been completely updated due to the coming into force of an amendment of the CMO for wines.Further efforts for reducing the number of CN codes have been undertaken with the result that the total number of codes for CN 2010 is the lowest since 1988. However, due to the number of HS-codes (around 5.000) is seems that this exercise now has reached its limits.CN 2010 will be published by the end of October. Copies of the draft are available in .pdf format.

10.2Consultation between the European Commission and Associated Countries with a view to preparing the 44th meeting of the Harmonized System Committee of the World Customs Organization

Doc. WCO NC 1445

The Chairman informed the representatives of the associated countries on the position of the EU as indicated above.

Annex 1

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

Brussels, 24August 2009

TAXUD/B/3EJ D(2009) 215247

15th Customs Code Committee
Tariff and Statistical Nomenclature Section
(HS/WCO Coordination Sector)
to be held in Brussels in the Albert Borschette Conference Centre,
36, rue Froissart, Brussels
from 9th to 11th September 2009 (commencing 10h00, ending 18h30)

AGENDA

1.Adoption of the agenda

2.Adoption of the minutes of the 12th coordination meeting (6 July 2009)

3.Pre-coordination of the 44th HS Committee meeting. Study of all available documents on the agenda of the aforementioned Committee and fixing of a joint position

Doc. WCO NC 1445

4.Recommendation of the Customs Cooperation Council of XX June 2009, amending the HS Convention. Acceptance by the EC

Second discussion. Doc WCO NG0154B1

5.Classification in the HS Nomenclature of a Rail-Road Operating Machine for Rail Welding "Spark-Rail"

Doc. TAXUD/136491/2009

6.Classification in the HS Nomenclature of a refrigeration plant “Crio Space Cabin”

Doc. TAXUD/194107/2009

7.Classification in the HS nomenclature of a machine for the production of printing plates. Possible dispute with the United States.

Doc. TAXUD/136495/2009

8.Possible amendment of the Explanatory note to heading 48.14

Doc. TAXUD/194124/2009

9.Any other business

10.Working Group with experts from the EC and Associated Countries (on 11thSeptember 2009, starting at 15H00, ending at 18H30):

10.1Mutual information on tariff matters and the setting-up of the Combined Nomenclature 2010

Doc. TAXUD/194114/2009

10.2Consultation between the European Commission / Associated Countries with a view to preparing the 44th meeting of the Harmonized System Committee of the World Customs Organization

Doc. WCO NC 1445

If a MemberState administration is unable to be represented, they are requested to inform DG TAXUD-B3 (Mr. K. Vangrieken) accordingly.

MemberState delegates are informed that the above-mentioned working documents can be found on CIRCA and paper copies will not be provided in the meeting room.

The European Commission will reimburse travel expenses for one delegate per MemberState administration.

Detailed Guidelines for the reimbursement of travel expenses can be found on CIRCA.

(Signed)

Kristian Vangrieken

Head of Unit

Annex 2

15th meeting of the Customs Code Committee

Tariff and Statistical Nomenclature Section

(HS/WCO Coordination Sector)

held in Brussels from 9th to 11th July 2009

Chairman:Mr. Eric Jouangrand

Commission:Mr. Christian Patermann (TAXUD/B 3)

Mr. Ioannis Tsiberidis (TAXUD/B3)

Mrs. A.M. De Vos-Ballegeer (TAXUD/B3)

Mr. Philippe Delcroix (TAXUD/B3) – Items 3, 10.1

Member States:

BELGIUMF.O.D. Financiën/S.P.F. Finances

BULGARIANOT PRESENT

CZECH REPUBLICGeneral Directorate of Customs

DENMARKCentral Customs and Tax Administration

GERMANYBundesministerium der Finanzen

ESTONIAEstonian Tax and Customs Board

IRELANDPermanent Representation

GREECEMinistry of Economy & Finance

SPAINAgencia Estatal de Administracion Tributaria
FRANCEDirection Générale des Douanes et Droits Indirects

ITALYAgenzia delle Dogane

CYPRUSMinistry of Finance – Customs and Excise department

LATVIAState Revenue Service

LITHUANIACustoms Department, Ministry of Finance

LUXEMBURGNOT PRESENT

HUNGARYCustoms and Finance Guard

MALTANOT PRESENT

NETHERLANDSMinistry of Finance

AUSTRIABundesministerium für Finanzen

POLANDMinistry of Finance

PORTUGALMinistério das Finanças, DGAIEC

ROMANIANational Customs Authority

SLOVENIACustoms Administration

SLOVAKIANOT PRESENT

FINLANDFinnish Board of Customs

SWEDENSwedish Customs

UNITED KINGDOMHM Revenue and Customs

1