**Case C-312/07**

**JVC France SAS**

**v**

**Administration des douanes – Direction nationale du renseignement et des enquêtes douanières**

(Reference for a preliminary ruling from the Tribunal d’instance du XIe arrondissement de Paris)

(Common Customs Tariff – Tariff classification – Combined Nomenclature – Camcorders – Explanatory notes – Body of legal rules)

Summary of the Judgment

1.        *Preliminary rulings – Jurisdiction of the Court – Limits – Manifestly irrelevant questions*

*(Art. 234 EC; Council Regulation No 2658/87, Annex I)*

2.        *Common Customs Tariff – Tariff headings – Camcorders with DV-in function capable of being activated after customs clearance*

3.        *Common Customs Tariff – Interpretation*

1.        Where the national court has before it an application for remission of customs duty based on Article 239(1) of the Customs
Code and must, on that basis, look for elements likely to constitute a specific circumstance arising from facts which imply
neither deception nor obvious negligence on the part of the importer, the question of the legal scope of the explanatory notes
to the Combined Nomenclature in Annex I to Regulation No 2658/87 on the tariff and statistical nomenclature and on the Common
Customs Tariff is relevant. The question referred, which concerns the legal effect of amendments to those explanatory notes
to the Combined Nomenclature, is thus admissible.

(see paras 28, 32)

2.        A camcorder may be classified under subheading 8525 40 99 of the Combined Nomenclature in Annex I to Regulation No 2658/87
on the tariff and statistical nomenclature and on the Common Customs Tariff only if the function for recording images and
sounds from sources other than the integrated camera or microphone (DV-in function) is active at the time of customs clearance
or if, even though the manufacturer did not intend to promote that characteristic, 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, first, that, once activated, it functions in
a manner similar to that of another camcorder whose DV-in function is active at the time of customs clearance and, second,
that it functions independently. The existence of those conditions must be capable of being ascertained at the time of customs
clearance. It is for the national court to establish whether those conditions are fulfilled. If those conditions are not fulfilled
the camcorder must be classified under subheading 8525 40 91 of the Combined Nomenclature.

(see paras 25-27, operative part 1)

3.        The explanatory notes relating to subheading 8525 40 99, of the Combined Nomenclature in Annex I of Regulation No 2658/87
on the tariff and statistical nomenclature and on the Common Customs Tariff, published on 6 July 2001 and 23 October 2002,
are interpretative in character and do not have legally binding force. They are in accordance with the wording of the Combined
Nomenclature and do not alter its scope. It follows that the adoption of a new classification regulation, as opposed to interpreting
the existing regulation, was not necessary.

(see paras 28, 37, operative part 2)


JUDGMENT OF THE COURT (Seventh Chamber)

5 June 2008 ([\*](#Footnote*))

(Common Customs Tariff – Tariff classification – Combined Nomenclature – Camcorders – Explanatory notes – Body of legal rules)

In Case C‐312/07,

REFERENCE for a preliminary ruling under Article 234 EC, from the Tribunal d’instance du XIe arrondissement de Paris (France), made by decision of 23 January 2007, received at the Court on 6 July 2007, in the proceedings

**JVC France SAS**

v

**Administration des douanes – Direction nationale du renseignement et des enquêtes douanières,**

THE COURT (Seventh Chamber),

composed of U. Lõhmus, President of the Chamber, J. Klučka and P. Lindh (Rapporteur), Judges,

Advocate General: V. Trstenjak,

Registrar: H. von Holstein, Deputy Registrar,

having regard to the written procedure and further to the hearing on 6 March 2008,

after considering the observations submitted on behalf of:

–        JVC France SAS, by F. Goguel and F. Foucault, avocats,

–        the French Government, by G. de Bergues and A.-L. During, acting as Agents,

–        the Commission of the European Communities, by J.-P. Keppenne and S. Schønberg, acting as Agents,

having decided, after hearing the Advocate General, to proceed to judgment without an opinion,

gives the following

**Judgment**

1        This reference for a preliminary ruling concerns the interpretation of the subheadings 8525 40 91 and 8525 40 99 of the Combined
Nomenclature in Annex 1 to Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature
and on the Common Customs Tariff (OJ 1987 L 256, p. 1), as amended by Commission Regulation (EC) No 2261/98 of 26 October
1998 (OJ 1998 L 292, p. 1), Commission Regulation (EC) No 2204/1999 of 12 October 1999 (OJ 1999 L 278, p. 1), Commission Regulation
(EC) No 2388/2000 of 13 October 2000 (OJ 2000 L 264, p. 1, and corrigendum OJ 2000 L 276, p. 92) and Commission Regulation
(EC) No 2031/2001 of 6 August 2001 (OJ 2001 L 279, p. 1) (‘the CN’), and the legal scope of the explanatory notes to the Combined
Nomenclature of the European Community (‘the explanatory notes’) published in accordance with Article 9(1) of Regulation No 2658/87.

2        The reference has been made in the course of proceedings between JVC France SAS (‘JVC’) and the Administration des Douanes
(French Customs authorities) in respect of customs duties which the Administration des Douanes are claiming from JVC and which
relate to the importing of digital camcorders originating in Japan and Singapore.

**Legal context**

*The Customs Code*

3        Article 220(1) of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (OJ 1992
L 302, p. 1) (‘the Customs Code’) states as follows:

‘Where the amount of duty resulting from a customs debt has not been entered in the accounts in accordance with Articles 218
and 219 or has been entered in the accounts at a level lower than the amount legally owed, the amount of duty to be recovered
or which remains to be recovered shall be entered in the accounts within two days of the date on which the customs authorities
become aware of the situation and are in a position to calculate the amount legally owed and to determine the debtor (subsequent
entry in the accounts). That time-limit may be extended in accordance with Article 219.’

4        Article 239 of that code states:

‘1.      Import duties or export duties may be repaid or remitted in situations other than those referred to in Articles 236, 237,
and 238:

–        to be determined in accordance with the procedure of the committee;

–        resulting from circumstances in which no deception or obvious negligence may be attributed to the person concerned. The situations
in which this provision may be applied and the procedures to be followed to that end shall be defined in accordance with the
Committee procedure. Repayment or remission may be made subject to special conditions.

2.      Duties shall be repaid or remitted for the reasons set out in paragraph 1 upon submission of an application to the appropriate
customs office within 12 months from the date on which the amount of the duties was communicated to the debtor.

However, the customs authorities may permit this period to be exceeded in duly justified exceptional cases.’

*The CN*

5        The CN, established by Regulation No 2658/87, is based on the international Harmonised Commodity Description and Coding System
(‘the HS’) drawn up by the Customs Cooperation Council, now the World Customs Organisation, and established by the International
Convention concluded at Brussels on 14 June 1983 and approved on behalf of the Community by Council Decision 87/369/EEC of
7 April 1987 (OJ 1987 L 198, p. 1). The CN takes six-digit headings and subheadings from the HS, only the seventh and eighth
digits forming subdivisions that are specific to it.

6        Section XVI, in Part Two of the CN, contains Chapter 85, entitled ‘Electrical machinery and equipment and parts thereof, sound
recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles’.

7        Subheading 8525 40, entitled ‘Still image video cameras and other video cameras; digital cameras’ contains subheading 8525
40 91, entitled ‘Other video camera recorders: Only able to record sound and images taken by the television camera’ and subheading
8525 40 99, entitled ‘Other video camera recorders: Other’.

8        The wording of subheadings 8525 40 91 and 8525 40 99 is identical in Regulations No 2261/98, No 2204/1999, No 2263/2000, No 2031/2001.

9        The camcorders classified under subheading 8525 40 91 are subject to a customs duty of 4.9%, while for camcorders under subheading
8525 40 99 it is 14%.

*The explanatory notes*

10      The Commission of the European Communities publishes in the *Official Journal of the European Union*, at regular intervals, explanatory notes to the CN.

11      Those adopted on 15 September 1998 (OJ 1998 C 287, p. 1) and on 13 July 2000 (OJ 2000 C 199, p. 1) under the subheading 8525
40 99 state:

‘others

This subheading covers apparatus combinations consisting of a video camera and a video recording or reproducing apparatus
(so-called “camcorders”) for the recording not only of images taken by the camera but also of television programmes. The images
thus recorded can be reproduced by means of an external television receiver.

However, “camcorders” with which only the images taken by the video camera can be recorded and reproduced by means of an external
television receiver fall within subheading 8525 40 91.’

12      The explanatory notes were amended following a Commission notice of 6 July 2001 (OJ 2001 C 190, p. 10). With respect to subheading
8525 40 99, the previous wording was repeated and a second paragraph was added:

‘This subheading also includes “camcorders” in which the video input is obstructed by a plate, or in another way, or in which
the video interface can be subsequently activated as video import by means of software. The apparatus is nevertheless designed
to record TV programmes and other externally incoming video signals.’

13      Following a Commission notice of 23 October 2002 (OJ 2002 C 256, p. 1), the last sentence of that text was slightly amended:

‘...TV programmes or other externally incoming video signals’.

**The dispute in the main proceedings and the questions referred for a preliminary ruling**

14      Following an investigation, the Administration des Douanes disputed the tariff classification used by JVC when importing digital
camcorders in two categories originating in Japan and Singapore.

15      By a first notice of 11 October 2002, the customs officers recorded that between 29 June 1999 and 23 July 2001 JVC had imported
camcorders with an enabled digital input/output terminal (‘DV in/out’). That type of camcorder can record not only images
and sound but also an external signal, via a dedicated connection. It can be connected directly to a computer or to a television
for the transfer of digital video images taken by the camcorder (DV-out function) and in return it can record digital clips
from any source processed by the computer (DV-in function).

16      The customs officers considered that the appropriate tariff classification was subheading 8525 40 99 and not the classification
used by JVC, namely, subheading 8525 40 91.

17      JVC did not challenge that classification and paid the amount of duty outstanding. However, it applied for remission of the
duty under Article 239 of the Customs Code claiming that the error arose due to a change in Community practice. That application
was rejected by a first decision of 16 December 2004.

18      By a second notice of 11 October 2002, the customs officers recorded that between 22 June 1999 and 28 August 2002 JVC had
imported digital camcorders having only the DV-out function activated, it being possible to activate the DV-in function after
customs clearance.

19      The customs agents again considered that the appropriate tariff classification was subheading 8525 40 99 and not the classification
used by JVC, namely, subheading 8525 40 91 and issued a notice to pay on 6 January 2004. JVC, on the one hand, challenged
that notice and, on the other hand, applied for remission of duty. That application was rejected by a second decision of 16
December 2004.

20      JVC then brought two actions before the Tribunal d’instance du XIe arrondissement de Paris (District Court for the 11th arrondissement of Paris) (France).

21      By its first action, brought on 7 March 2005, JVC sought the annulment of the notice to pay of 6 January 2004, claiming that
the relevant camcorders should be classed under subheading 8525 40 91.

22      By its second action, brought on 2 February 2006, JVC sought the annulment of the two decisions of 16 December 2004 rejecting
the applications for remission of duties. JVC maintained that the notices to pay are the result of a change in Community practice
on account of the publication of amended versions of the explanatory notes to the CN. That change constitutes a special circumstance
within the meaning of Article 239(1) of the Customs Code.

23      Before the national court, JVC claimed that, before 2001, importers and the customs authorities classified camcorders, having
only the DV-out function activated at the time of import, under subheading 8525 40 91. It was not until after the amendment
of the explanatory notes by the Commission notice of 6 July 2001 that the customs practice was changed. According to JVC,
while the German and British customs authorities decided to apply the new interpretation only for imports after 6 July 2001,
the French customs authorities decided to apply the interpretation retrospectively, which is contrary to the Customs Code.

24      It is in those circumstances that the Tribunal d’instance du XIe arrondissement de Paris, having joined the two actions, decided to stay proceedings and refer the following questions to
the Court of Justice for a preliminary ruling:

‘1.      Must a camcorder, which when imported is unable to record external video signals, be classified under subheading 8525 40 99,
if its video interface can subsequently be set as a video input by using software or an enabler (widget) equipped with electronic
circuitry enabling it to record an external video sound signal, even though the manufacturer and the seller have not mentioned
this possibility and do not endorse it?

2.      If so, to the extent that the subsequent amendments of the explanatory notes entail a change in Community practice with regard
to the classification of camcorders and an exception to the principle that goods must be classified according to their actual
characteristics at the time of customs clearance, was the European Commission entitled to make this change by amending the
explanatory notes and hence with retrospective effect, rather than by adopting a classification regulation that was applicable
only in the future?’

**The questions referred for a preliminary ruling**

*The first question*

25      By its first question, the national court asks, essentially, whether, for the classification of the camcorders, the possibility
of activating the DV-in function may or must be taken into account if it has not been activated at the time of customs clearance,
but if it may subsequently be activated manually or by the addition of software. It also queries the significance of the fact
that the manufacturer did not mention or endorse that possibility at the time of customs clearance.

26      In Joined Cases C-208/06 and C-209/06 *Medion and Canon Deutschland* [2007] ECR I-7963 the Court of Justice replied to a question referred for a preliminary ruling identical to that referred
by the national court in the present case. Accordingly, an identical reply must be given to this question.

27      Therefore, the answer to the first question must be that a camcorder may be classified under subheading 8525 40 99 of the
CN only if the function for recording images and sounds from sources other than the integrated camera or microphone is active
at the time of customs clearance or if, even though the manufacturer did not intend to promote that characteristic, 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, first, that,
once activated, 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, second, that it
functions independently. The existence of those conditions must be capable of being ascertained at the time of customs clearance.
It is for the national court to establish whether those conditions are fulfilled. If those conditions are not fulfilled the
camcorder must be classified under subheading 8525 40 91 of the CN.

*The second question*

28      By its second question, the national court wishes to know, in essence, the legal effect of amendments to the explanatory notes
to the CN, in particular with regard to the classification of the goods in question in the main proceedings and enquires whether
the Commission should not have proceeded by way of adoption of a new classification regulation rather than an interpretation
of the existing regulation.

 The admissibility of the question

29      The Commission takes the view that the question is inadmissible as it is hypothetical and does not assist in determining the
outcome of the dispute. In its view, the amendments to the explanatory notes to the CN do not constitute a change in relation
to an earlier legal position. Those notes do not have legal effect as such. Their amendment does not therefore affect the
rights of economic operators. Finally, the order for reference did not contain sufficient factual information to allow the
Court to broaden the question and possibly reword it.

30      In that regard, it must be observed that, according to established case-law, it is solely for the national court before which
the dispute has been brought, and which must assume responsibility for the subsequent judicial decision, to determine in the
light of the particular circumstances of the case both the need for a preliminary ruling in order to enable it to deliver
judgment and the relevance of the questions which it submits to the Court (see, in particular, Case C-415/93 *Bosman* [1995] ECR I-4921, paragraph 59, and Case C-466/04 *Acereda Herrera* [2006] ECR I‐5341, paragraph 47).

31      The Court can refuse the request from the national court only where it is quite obvious that the interpretation of Community
law sought by that court bears no relation to the actual facts of the main action or its purpose or where the problem is hypothetical
(see *Bosman*, paragraph 61, and *Acereda Herrera*, paragraph 48).

32      In the dispute at issue in the main proceedings, the national court has before it an application for remission of customs
duty based on Article 239(1) of the Customs Code and must, on that basis, look for elements likely to constitute a specific
circumstance arising from facts which imply neither deception nor obvious negligence on the part of JVC. In that context,
the question of the legal scope of the explanatory notes to the CN seems relevant. The question is thus admissible.

 Substance

33      It should be recalled, first of all, that it is settled case-law that, in the interests of legal certainty and for ease of
verification, the decisive criterion for the classification of goods for customs purposes is in general to be sought in their
objective characteristics and properties as defined in the wording of the relevant heading of the CN and the notes to the
sections or chapters (see, in particular, Case C-42/99 *Eru Portuguesa* [2000] ECR I-7691, paragraph 13; Case C-495/03 *Intermodal Transports* [2005] ECR I-8151, paragraph 47; Case C-445/04 *Possehl Erzkontor* [2005] ECR I-10721, paragraph 19; and Case C-500/04 *Proxxon* [2006] ECR I-1545, paragraph 21).

34      The Court has also held that the explanatory notes to the CN and those to the HS are an important aid for interpreting the
scope of the various tariff headings but do not have legally binding force. The wording of those notes must therefore be consistent
with the provisions of the CN and cannot alter their scope (see *Intermodal Transports*, paragraph 48; *Possehl Erzkontor*, paragraph 20; and *Proxxon*, paragraph 22). Where it is apparent that they are contrary to the wording of the headings of the CN and the section or chapter
notes, the explanatory notes to the CN must be disregarded (see Case C-229/06 *Sunshine Deutschland Handelsgesellschaft* [2007] ECR I-3251, paragraph 31).

35      As regards the subheadings of the CN which are relevant for the disputes in the main proceedings, it should be noted that
the wording of subheading 8525 40 99 comprises only the term ‘others’. That subheading thus contains all camcorders other
than those ‘only able to record sound and images taken by the television camera’, (DV out function), which come under subheading
8525 40 91. The Commission was therefore led to interpret, in the explanatory notes to the CN, the content of subheading 8525 40 99.
Those explanatory notes indicated, from 15 September 1998, that the camcorders covered by subheading 8525 40 99 were those
having the DV in function and the DV out function. On 6 July 2001, the Commission again amended the explanatory notes to the
CN specifying that subheading 8525 40 99 also includes camcorders designed with the DV in function without that function being
activated at the time of customs clearance.

36      It should be stated that, having regard to the respective wording of subheadings 8525 40 91 and 8525 40 99, the explanatory
notes to the CN in relation to the latter are in accordance with the provisions of the CN and do not alter its scope.

37      It follows from all of the foregoing considerations that the reply to the second question must be that the explanatory notes
to the CN relating to subheading 8525 40 99, published on 6 July 2001 and 23 October 2002, are interpretative in character
and do not have legally binding force. They are in accordance with the wording of the CN and do not alter its scope. It follows
that the adoption of a new classification regulation was not necessary.

**Costs**

38      Since these proceedings are, for the parties to the main proceedings, a step in the action pending before the national court,
the decision on costs is a matter for that court. Costs incurred in submitting observations to the Court, other than the costs
of those parties, are not recoverable.

On those grounds, the Court (Seventh Chamber) hereby rules:

1.      **A camcorder may be classified under subheading 8525 40 99 of the Combined Nomenclature in Annex 1 to Council Regulation (EEC)
No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff as amended by Commission
Regulation (EC) No 2261/98 of 26 October 1998, Commission Regulation (EC) No 2204/1999 of 12 October 1999, Commission Regulation
(EC) No 2388/2000 of 13 October 2000 and Commission Regulation (EC) No 2031/2001 of 6 August 2001 only if the function for
recording images and sounds from sources other than the integrated camera or microphone is active at the time of customs clearance
or if, even though the manufacturer did not intend to promote that characteristic, 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, first, that, once activated, 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, second, that it functions independently. The existence
of those conditions must be capable of being ascertained at the time of customs clearance. It is for the national court to
establish whether those conditions are fulfilled. If those conditions are not fulfilled the camcorder must be classified under
subheading 8525 40 91 of the Combined Nomenclature.**

2.      **The explanatory notes to that Combined Nomenclature relating to subheading 8525 40 99, published on 6 July 2001 and 23 October
2002, are interpretative in character and do not have legally binding force. They are in accordance with the wording of the
Combined Nomenclature and do not alter its scope. It follows that the adoption of a new classification regulation was not
necessary.**

[Signatures]

---

[\*](#Footref*) Language of the case: French.