_______________________________________
Concern about possible price increase by 3years retroactive effects of classification
regulation in the European market
Cologne, 23 September, 2008

1. Background
During its meeting of 29 June 2007, the members of theCustoms Code Committee (Repayments Section) adopted
the Working Document No. TAXUD/741/2003-FINAL
which had been drafted by the European Commission.
This Working Document lays down the European
Commission’s position with respect to the retroactive
effects of tariff classification regulations.
More specifically, Section 2.2.2.2. of the Working
Document provides that in case where the classification
specified in a “new” classification regulation (as opposed
to a classification regulation which amends or repeals anearlier classification regulation) results in a higher
customs debt, customs authorities undertake to recover
the customs debt unless the lower duties were paid due
to an error made by themselves (as provided for in
Article 220(2)(b) of the Community Customs Code). In
other words, “new” classification regulations will haveretroactive effects unless the lower duties were paid as aresult of an error on the part of the customs authorities.
Since this is usually not the case, in practice, it implies
that “new” classification regulations will haveretroactive effects in most cases.

2. Our concern and request

We understand that this Working Document is notstrictly speaking legally binding. However, it is in any
case an internal administrative guidance that Member
States should apply. It thus has a direct impact on
traders and therefore requires appropriate disclosure.
As far as we know, the Working Document hassuddenly been uploaded on the DG-TAXUD Website
without being officially published. We therefore doubtthat the EC has complied with its disclosure obligations
under GATT 1994 ArticlesⅩ:1 and Ⅹ:2.
Furthermore, we would like to express our serious

FOTOMKEconcern as to the content of this Working Document. By
conferring retroactive effects to tariff classification
regulations, this Document obviously breaches theconsistent case law of the European Court of Justice(ECJ) according to which classification regulations,being of legislative nature, cannot have retroactive
effects1. Actually, the ECJ position is consistent withthe fundamental principle of legal certainty which
requires, inter alia, that rules imposing charges on thetaxpayer must be clear and precise so that he may know
without ambiguity what are his rights and obligations
and may take steps accordingly as well as to theprinciple of legitimate expectations.
In the light of the foregoing, we would like to sincerely
request the customs authorities of the Member States tocontinue applying tariff classification regulations
non-retroactively in accordance with the consistentcase-law of the ECJ.
- end _____________________________________________________________________________

1. Asociacia Dovozcov Audiovizualnej Techniky (ADAT, Slovakia), 2. Associazione
Italiana Foto & Digital Imaging (AIF, Italy), 3. Associacao Empresarial das SectoresElectrico, Electrodomestico, Fotografico e Electronico (AGEFE, Portugal), 4. Asociatia
Producatorilor si Distribuitorilor de Echipamente de Technologia Informatiei sicomunicatiilor (APDETIC, Romania), 5. Bulgarian Association of Information Technologies(bait, Bulgaria), 6. Camera & Imaging Products Association (CIPA, Japan), 7. The
Association of Electronics Wholesalers (Finland), 8. European Photo and Imaging
Association (EPIA, Pan-Europe), 9. Association of the Hungarian Representatives of the
Photo machineries Manufacturers (FOTOMKE, Hungary), 10. Fotobranchens
Leverandorforening (Denmark), 11. International Imaging Industry Association (i3a, USA),12. Photo Imaging Council (pic, UK), 13. Photoindustie-Verband e.V. (PIV, Germany), 14.
Sindycat des Enterprises de L’image de la Photo et de la Communication (SIPEC, France),
15. Svaz Obchodu a Cestovniho Ruchu Cr – Czech Confederation of Commerce and Tourism(Czech), 16. Photo Marketing Association International (PMA, USA), 17. Greek
Manufacturers, Distributors & Dealers of Photo Products and Image Systems Association(SEKAF, Greece), 18. Photographic Arts Federation of Turkey (TFSF, Turkey) , 19. ZIPSEE(Poland), 20. Elektronik Branschen (Sweden)_____________________________________________________________________________For further information contact: info@cipa.jp

See, e.g., case 158/78, P. Biegi v. Hauptzollamt Bochum; Case C-401/93,
GoldStar Europe BmbH and Hauptzollamt Ludwigshafen; Case C-288/99,
VauDe Sport GmbH & Co. KG v Oberfinanzdirektion Koblenz; Case C-479/99,
CBA Computer Handels- und Beteiliguns GmbH.
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