COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 407 final 
Brussels, 1 September 1993 
Proposal for a 
COUNCIL REGULATION (EEC) 
JSYT" amending Regulation (EEC) No 2658/87 
on the tariff and statistical nomenclature 
and on the Common Customs Tariff 
(presented by the Commission) 
z 
EXPLANATORY MEMORANDUM 
In 1991 EUROBIT (the European Association of Manufacturers of 
Business Machines and Data Processing Equipment) made 
representations to the Commission for relief from customs duty 
on Integrated Circuit Test Equipment with support from IBETA 
(the Irish Business Equipment Se Technology Association) and 
the Irish authorities. 
One reason for this request was that manufacturing facilities 
in the integrated circuit industry were being established in 
Ireland (supported by the EC Regional Funds) and that -
without the availability of the equipment within the Community 
- the integrated circuits produced would be tested elsewhere. 
Furthermore, trade stressed that comparable test equipment was 
not currently or foreseen to be produced in the Community. It 
should be noted that relief for duty on parts of the equipment 
which may be subsequently imported was not being sought. 
Test equipment is - as indicated above - used in the 
manufacturing process of integrated circuits. It performs its 
checks by applying electrical signals to the device under 
test, measuring the response to those signals and comparing 
the measurements with theoretically expected values. It checks 
whether an integrated circuit has acceptable performance or 
not. It is also used to identify and discard any packaged 
circuits which fail to comply to specifications. It is, as 
such, the primary tool used to ensure the quality of the 
circuits. The cost of the test equipment for which relief is 
being sought is between 2-5 MECU indicating the complex 
technical nature of the equipment concerned. 
The nature of the equipment and its particular technical 
specifications makes it difficult to define the equipment 
concerned in 'normal' nomenclature terms. The Commission, 
therefore, proposes (after having consulted Member States' 
experts in the Nomenclature Committee) to define the scope of 
this measure by introducing four new end-use tariff lines 
under heading 9030 81 of the Combined nomenclature. Each of 
the descriptions under these headings have been supplemented 
with an associated Additional Note to which the Nomenclature 
Committee has already given an unanimous favourable opinion 
subject to the adoption by the Council of this proposal. 
proposal for a COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 2658/87 
on the tariff and statistical nomenclature 
and on the Common Customs Tariff 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community and in particular Articles 28 and 113 thereof, 
Having regard to the proposal from the Commission, 
Whereas Council Regulation (EEC) No 2658/87 <1>, as last 
amended by Regulation (EEC) No ..../.. (2), established on the 
basis of the Harmonized System a goods nomenclature known as 
the Combined Nomenclature; 
Whereas Commission Regulation (EEC) No 4142/87 (3), as last 
amended by Regulation (EEC) No ..../.. (4> determines the 
conditions under which certain goods are eligible on import 
for a favourable tariff arrangement by reason of their end-
use, 
Whereas goods covered by the end-use provisions benefit on 
their release for free circulation from a reduced or zero rate 
of duty solely on the grounds and on the condition that they 
are being used for a specified purpose; 
Whereas it is considered desirable that certain types of 
integrated circuit test equipment should benefit from relief 
from customs duty under end-use provisions on importation when 
(1) OJ No L 256, 7.9.1987, p.l. 
(2) OJ No L 
(3) OJ No L 387, 31.12.1987, p.81. 
(4) OJ No L 
destined for the functionality testing of integrated circuits; 
whereas it is appropriate to introduce in the combined 
nomenclature subheadings with end-use provisions within HS 
code 9030 81 for such equipment for functionality testing 
purposes; 
Whereas the Combined Nomenclature should therefore be amended, 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. The Combined Nomenclature attached to Regulation (EEC) No 
2658/87 is hereby amended in accordance with the Annex to 
this Regulation. 
2. The amendments to the Combined Nomenclature subheadings 
provided for in this Regulation shall be applied as Taric 
subdivisions until their insertion in the Combined 
Nomenclature under the conditions laid down in Article 12 
of Regulation (EEC) No 2658/87. 
Article 2 
This Regulation shall enter into force on the 21st day 
following that of its publication in the Official Journal of 
the European Communities 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States 
Done in Brussels, For the Council 
The President 
Taric codes for 1993: 9030 81 90 * 10 
9030 81 90 * 20 
9030 81 90 * 30 
9030 81 90 * 40 S 
ANNEX 
CN code Description Rate of Duty 
autonomous conventional Supplementary 
unit 
9030 10 
to 
9030 81 10 
9030 81 20 
9030 81 81 
9030 81 83 
9030 81 85 
9030 81 89 
9030 89 
to 
9030 90 90 (Unchanged) 
— Edge connected semiconductor production 
test apparatus, capable of testing 
the embedded functions in integrated 
circuits ® 
— other: 
— semiconductor production test 
apparatus, capable of testing the 
embedded functions in 
digital integrated circuits w 
• semiconductor production test 
apparatus, capable of testing the 
embedded functions 
in analogue/digital 
integrated circuits @) 
• semiconductor production test 
apparatus, capable of testing the 
embedded functions in 
analogue integrated circuits @) .. 
— other 
(Unchanged) free 11 
free 
free 11 
11 
free 
16 
(2) Entry under this subheading is subject to conditions laid down in relevant Community provisions. 
€ 
FINANCIAL RECORD 
Budget line concerned : Chap. 12 Art. 120 
Title of the tariff measure concerned : Draft proposal 
for a Council Regulation (EEC) amending Regulation (EEC) 
No 2658/87 on the tariff and statistical nomenclature and 
on the Common Customs Tariff 
Legal basis : Art. 28 and 113 of the Treaty 
Objective : Relief of CCT duties by means of end-use 
relief for certain integrated circuits test equipment. 
Cost of this tariff measure to be borne by the EEC-budget 
Difficult to estimate, due to lack of adequate and 
precise Community statistics. 
However, on the assumption that 8 sets of this equipment 
of an average value of 3.5 MECU will be imported a year 
and as the rate of duty for 
CN code 9030 81 is 11 %, the annual cost of the operation 
can be indicated as being 3 080 000 ECU 
-} 
IMPACT ON COMPETITIVENESS AND EMPLOYMENT RECORD 
The present proposal should improve the current situation in 
respect of competitiveness and employment. 
Currently testing of integrated circuits is carried out 
outside the Community. The granting of end use refief of duty 
should encourage manufacturers of integrated circuits within 
the Community to establish testing facilities thus bringing 
expertise and well as employment to the Community. 
i 
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COM(93) 407 final 
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