Judgment of the Court (First Chamber) of 9 February 1984. - Metro International Kommanditgesellschaft v Oberfinanzdirektion München. - Reference for a preliminary ruling: Bundesfinanzhof - Germany. - Tariff classification - Electronic cash registers. - Case 60/83.



European Court reports 1984 Page 00671



Summary

Parties

Subject of the case

Grounds

Decision on costs

Operative part



Keywords

COMMON CUSTOMS TARIFF - TARIFF HEADINGS - ' ' CASH REGISTERS ' ' WITHIN THE MEANING OF SUBHEADING 84.52 B - PRODUCT CONSISTING OF SEVERAL PARTS - CLASSIFICATION PURSUANT TO GENERAL RULE 3 ( B ) ( GOODS PUT UP IN SETS )

A PRODUCT WHICH , ON IMPORTATION , CONSISTS OF SEVERAL PARTS SEPARATELY PACKED IN ONE CARTON , NAMELY A MULTIPURPOSE ELECTRONIC DESK CALCULATOR WITH PRINT-OUT AND A 12-FIGURE LUMINOUS DISPLAY SCREEN ( WHICH IS CAPABLE OF ADDITION , MULTIPLICATION , SUBTRACTION , DIVISION , CALCULATION OF PERCENTAGES AND EXTRACTION OF ROOTS AND CALCULATIONS WITH A CONSTANT ), A LOCKABLE STEEL-PLATE CASH-BOX WITH PLASTIC TILL OR DRAWER IN WHICH CASH MAY BE KEPT AND ACCESSORIES ( ELECTRIC CABLE , DOUBLE-SHEETED ROLL OF PAPER AND DUST-COVER ), CANNOT BE REGARDED AS A FUNCTIONAL UNIT OR , THEREFORE , AS A SINGLE ARTICLE WHICH MAY BE DESCRIBED AS A CASH REGISTER WITHIN THE MEANING OF SUBHEADING 84.52 B OF THE COMMON CUSTOMS TARIFF .

Summary

THE ARTICLES WHICH TOGETHER CONSTITUTE THE PRODUCT REFERRED TO IN THE FIRST QUESTION MUST BE CONSIDERED AS GOODS PUT UP IN SETS WITHIN THE MEANING OF GENERAL RULE 3 ( B ) FOR THE INTERPRETATION OF THE NOMENCLATURE OF THE COMMON CUSTOMS TARIFF , THE TARIFF CLASSIFICATION OF WHICH IS BASED ON THE COMPONENT WHICH GIVES THEM THEIR ESSENTIAL CHARACTER .

Parties

IN CASE 60/83

REFERENCE TO THE COURT UNDER ARTICLE 177 OF THE EEC TREATY BY THE BUNDESFINANZHOF ( FEDERAL FINANCE COURT ) FOR A PRELIMINARY RULING IN THE ACTION PENDING BEFORE THAT COURT BETWEEN

METRO INTERNATIONAL KOMMANDITGESELLSCHAFT , DUSSELDORF ,

AND

OBERFINANZDIREKTION MUNCHEN ( PRINCIPAL REVENUE OFFICE , MUNICH ),

Subject of the case

ON THE INTERPRETATION OF SUBHEADING 84.52 B OR GENERAL RULE 3 ( B ) OF THE RULES FOR THE INTERPRETATION OF THE NOMENCLATURE OF THE COMMON CUSTOMS TARIFF , OR BOTH ,

Grounds

1 BY ORDER OF 1 MARCH 1983 , RECEIVED AT THE COURT ON 11 APRIL 1983 , THE BUNDESFINANZHOF ( FEDERAL FINANCE COURT ) REFERRED TO THE COURT FOR A PRELIMINARY RULING UNDER ARTICLE 177 OF THE EEC TREATY TWO QUESTIONS CONCERNING THE INTERPRETATION OF THE COMMON CUSTOMS TARIFF .

2 THOSE QUESTIONS AROSE IN THE COURSE OF THE PROCEEDINGS CONCERNING THE TARIFF CLASSIFICATION OF A PRODUCT WHICH HAD BEEN DESCRIBED AS AN ' ' ELECTRONIC CASH REGISTER ' ' BY THE IMPORTING FIRM BUT WHICH , ACCORDING TO THE BINDING CUSTOMS TARIFF RULING ( ' ' VERBINDLICHE ZOLLTARIFAUSKUNFT ' ' ) OF THE COMPETENT CUSTOMS OFFICE , SHOULD BE CONSIDERED TO BE AN ELECTRONIC CALCULATING MACHINE FALLING UNDER SUBHEADING 84.52 A OF THE COMMON CUSTOMS TARIFF .

3 HEADING 84.52 OF THE COMMON CUSTOMS TARIFF READS AS FOLLOWS :

' ' 84.52 CALCULATING MACHINES ; ACCOUNTING MACHINES , CASH REGISTERS , POSTAGE-FRANKING MACHINES , TICKET-ISSUING MACHINES AND SIMILAR MACHINES , INCORPORATING A CALCULATING DEVICE :

A . ELECTRONIC CALCULATING MACHINE

B . OTHER ' ' .

4 FOR THE PURPOSES OF ITS QUESTIONS , THE BUNDESFINANZHOF PROVIDED THE FOLLOWING DESCRIPTION OF THE PRODUCT IN QUESTION : ' ' AN ARTICLE DESCRIBED AS AN ' ELECTRONIC CASH REGISTER ' WHICH ON IMPORTATION CONSISTS OF SEVERAL PARTS SEPARATELY PACKED IN ONE CARTON , NAMELY A MULTIPURPOSE DESK CALCULATOR WITH PRINT-OUT AND A 12-FIGURE LUMINOUS DISPLAY SCREEN ( WHICH IS CAPABLE OF ADDITION , MULTIPLICATION , SUBTRACTION , DIVISION , CALCULATION OF PERCENTAGES AND EXTRACTION OF ROOTS AND CALCULATIONS WITH A CONSTANT ), A LOCKABLE STEEL-PLATE CASH-BOX WITH PLASTIC TILL OR DRAWER IN WHICH CASH MAY BE KEPT AND ACCESSORIES ( ELECTRIC CABLE , DOUBLE-SHEETED ROLL OF PAPER AND DUST-COVER ) ' ' . IT POINTED OUT THAT ' ' BEFORE IT CAN BE USED AS A CASH REGISTER , THE ELECTRONIC DESK CALCULATOR MUST BE PLACED ON TOP OF THE CASH-BOX AND JOINED TO IT NOT BY ANY PERMANENT CONNECTION BUT BY MEANS OF THE ACCOMPANYING ATTACHMENTS ( ELECTRIC CABLE WITH A PLUG ATTACHED TO THE CASH-BOX , CORRESPONDING SOCKET IN THE CALCULATOR , MATCHING RUBBER PADS ON BOTH PARTS ) ' ' .

5 IN ITS FIRST QUESTION , THE BUNDESFINANZHOF ASKS IF SUCH PARTS TAKEN AS A WHOLE MAY BE REGARDED AS A FUNCTIONAL UNIT AND THEREFORE AS A SINGLE ARTICLE WHICH MAY BE DESCRIBED AS A CASH REGISTER WITHIN THE MEANING OF SUBHEADING 84.52 B OF THE COMMON CUSTOMS TARIFF . IF THE ANSWER IS IN THE NEGATIVE , IT ASKS , IN ITS SECOND QUESTION , IF SUCH ARTICLES CONSISTING OF SEVERAL PARTS MAY BE REGARDED AS ' ' GOODS PUT UP IN SETS ' ' OR ' ' GOODS . . . MADE UP OF DIFFERENT COMPONENTS ' ' WITHIN THE MEANING OF GENERAL RULE 3 ( B ) OF THE RULES FOR THE INTERPRETATION OF THE NOMENCLATURE OF THE COMMON CUSTOMS TARIFF .

6 NOTE 3 TO SECTION XVI OF THE TARIFF , OF WHICH CHAPTER 84 IS PART , PROVIDES THAT COMPOSITE MACHINES CONSISTING OF TWO OR MORE MACHINES FITTED TOGETHER TO FORM A WHOLE AND OTHER MACHINES ADAPTED FOR THE PURPOSE OF PERFORMING TWO OR MORE COMPLEMENTARY OR ALTERNATIVE FUNCTIONS ARE TO BE CLASSIFIED AS IF CONSISTING ONLY OF THAT COMPONENT OR AS BEING THAT MACHINE WHICH PERFORMS THE PRINCIPAL FUNCTION .

7 ACCORDING TO THE CUSTOMS COOPERATION COUNCIL ' S EXPLANATORY NOTES , NOTE 3 TO SECTION XVI DOES NOT APPLY WHEN A MACHINE OR APPLIANCE CONSISTS OF SEPARATE COMPONENTS WHICH ARE DESIGNED TO CONTRIBUTE TOGETHER TO A SINGLE CLEARLY-DEFINED FUNCTION DESCRIBED BY ONE OF THE HEADINGS IN CHAPTER 84 . THE EXPLANATORY NOTES ADD THAT THE WHOLE FALLS TO BE CLASSIFIED IN THE HEADING APPROPRIATE TO THAT FUNCTION EVEN IF , AS A MATTER OF CONVENIENCE , FOR EXAMPLE , THE VARIOUS COMPONENTS REMAIN SEPARATE AND ARE MERELY INTERCONNECTED BY DEVICES USED TO TRANSMIT POWER OR BY ELECTRIC CABLES .

8 THE NATIONAL COURT ASKS IF THE CASH-BOX AND THE ELECTRONIC CALCULATOR WHICH ARE SIMPLY PLACED ONE ON TOP OF THE OTHER AND JOINED TO EACH OTHER BY MEANS OF AN ELECTRIC CABLE , MAY BE REGARDED AS A FUNCTIONAL UNIT OF THE KIND DESCRIBED IN THOSE EXPLANATORY NOTES . IF SUCH IS THE CASE , ALL THE COMPONENTS OF THE PRODUCT WOULD BE INTENDED TO CONTRIBUTE TOGETHER TO A SINGLE CLEARLY-DEFINED FUNCTION , NAMELY , THAT OF A CASH REGISTER WITHIN THE MEANING OF SUBHEADING 84.52 B OF THE COMMON CUSTOMS TARIFF . THE FACT THAT THE ELECTRONIC CALCULATOR , ONE COMPONENT OF THE UNIT , MAY ALSO BE USED SEPARATELY DOES NOT NECESSARILY EXCLUDE SUCH A POSSIBILITY .

9 IT SHOULD BE POINTED OUT HOWEVER THAT THE EXPLANATORY NOTES ARE INTENDED TO ALLOW CLASSIFICATION UNDER A GIVEN HEADING OF MACHINES AND APPLIANCES MADE UP OF COMPONENTS FALLING UNDER SEVERAL TARIFF HEADINGS , IN CASES WHERE THOSE COMPONENTS AS A WHOLE ARE INTENDED TO PERFORM THE SINGLE CLEARLY-DEFINED FUNCTION REFERRED TO IN THE TARIFF HEADING IN QUESTION . THUS , THE EXPLANATORY NOTES DO NOT COVER THE PRODUCT DESCRIBED BY THE NATIONAL COURT , IN VIEW OF THE FACT THAT IT CONSISTS , AMONG OTHER COMPONENTS , OF AN ELECTRONIC CALCULATOR WHICH MAY BE USED INDEPENDENTLY OF THE OTHER COMPONENTS AND FOR FUNCTIONS OTHER THAN THOSE WHICH MAY BE PERFORMED BY ALL THE COMPONENTS TOGETHER .

10 CONSEQUENTLY THE ANSWER TO THE FIRST QUESTION MUST BE THAT A PRODUCT WHICH , ON IMPORTATION , CONSISTS OF SEVERAL PARTS SEPARATELY PACKED IN ONE CARTON , NAMELY A MULTIPURPOSE ELECTRONIC DESK CALCULATOR WITH PRINT-OUT AND A 12-FIGURE LUMINOUS DISPLAY SCREEN ( WHICH IS CAPABLE OF ADDITION , MULTIPLICATION , SUBTRACTION , DIVISION , CALCULATION OF PERCENTAGES AND EXTRACTION OF ROOTS AND CALCULATIONS WITH A CONSTANT ), A LOCKABLE STEEL-PLATE CASH-BOX WITH PLASTIC TILL OR DRAWER IN WHICH CASH MAY BE KEPT AND ACCESSORIES ( ELECTRIC CABLE , DOUBLE-SHEETED ROLL OF PAPER AND DUST-COVER ), CANNOT BE REGARDED AS A FUNCTIONAL UNIT OR , THEREFORE , AS A SINGLE ARTICLE WHICH MAY BE DESCRIBED AS A CASH REGISTER WITHIN THE MEANING OF SUBHEADING 84.52 B OF THE COMMON CUSTOMS TARIFF .

11 THE ANSWER TO THE FIRST QUESTION BEING NEGATIVE , THE SECOND QUESTION RELATING TO GENERAL RULE 3 ( B ) FOR THE INTERPRETATION OF THE COMMON CUSTOMS TARIFF MUST BE EXAMINED . ACCORDING TO THAT RULE , COMPOSITE GOODS CONSISTING OF DIFFERENT MATERIALS OR MADE UP OF DIFFERENT COMPONENTS , AND GOODS PUT UP IN SETS , ARE TO BE CLASSIFIED ' ' AS IF THEY CONSISTED OF THE MATERIAL OR COMPONENT WHICH GIVES THEM THEIR ESSENTIAL CHARACTER ' ' , WHEN THEY CANNOT BE CLASSIFIED BY REFERENCE TO RULE 3 ( A ). THAT RULE LAYS DOWN THAT THE HEADING WHICH PROVIDES THE MOST SPECIFIC DESCRIPTION SHALL BE PREFERRED TO HEADINGS PROVIDING A MORE GENERAL DESCRIPTION .

12 THE ORDER FOR REFERENCE POINTS OUT THAT IF THE PRODUCT IN QUESTION IS TO BE CONSIDERED AS ' ' GOODS PUT UP IN SETS ' ' OR ' ' GOODS . . . MADE UP OF DIFFERENT COMPONENTS ' ' WITHIN THE MEANING OF THE SAID GENERAL RULE 3 ( B ), THE ESSENTIAL CHARACTER OF THE GOODS IS RATHER DETERMINED BY THE CALCULATOR , IN VIEW OF ITS GREATER VALUE IN COMPARISON TO THE OTHER COMPONENTS AND THE USE WHICH MAY BE MADE OF THE COMPOSITE ARTICLE , NAMELY , THE PERFORMANCE OF MORE COMPLICATED ARITHMETICAL OPERATIONS IN ADDITION TO RECORDING BY CALCULATION AND ADDITION OF NUMBERS .

13 AS REGARDS GENERAL RULE 3 ( B ), THE CUSTOMS COOPERATION COUNCIL ' S EXPLANATORY NOTES STATE THAT THE EXPRESSION ' ' GOODS PUT UP IN SETS ' ' IS TO BE TAKEN TO MEAN GOODS WHICH CONSIST OF PRODUCTS OR ARTICLES HAVING INDEPENDENT OR COMPLEMENTARY USES , GROUPED TOGETHER FOR MEETING A NEED OR CARRYING OUT A SPECIFIC ACTIVITY , AND ARE PUT UP IN RETAIL PACKINGS .

14 THE COURT CONSIDERS THAT THE PRODUCT DESCRIBED BY THE NATIONAL COURT CORRESPONDS TO THOSE CRITERIA AND THUS FALLS UNDER GENERAL RULE 3 ( B ). IN THOSE CONDITIONS , ITS CLASSIFICATION FOR TARIFF PURPOSES MUST BE DETERMINED , AS THE NATIONAL COURT HAS RIGHTLY HELD , BY THE COMPONENT WHICH GIVES IT ITS ESSENTIAL CHARACTER .

15 THE REPLY TO THE SECOND QUESTION SHOULD THEREFORE BE THAT THE ARTICLES WHICH TOGETHER CONSTITUTE THE PRODUCT REFERRED TO IN THE FIRST QUESTION MUST BE REGARDED AS GOODS PUT UP IN SETS WITHIN THE MEANING OF GENERAL RULE 3 ( B ) FOR THE INTERPRETATION OF THE COMMON CUSTOMS TARIFF , THE TARIFF CLASSIFICATION OF WHICH IS BASED ON THE COMPONENT WHICH GIVES THEM THEIR ESSENTIAL CHARACTER .

Decision on costs

COSTS

16 THE COSTS INCURRED BY THE COMMISSION OF THE EUROPEAN COMMUNITIES , WHICH HAS SUBMITTED OBSERVATIONS TO THE COURT , ARE NOT RECOVERABLE . SINCE THESE PROCEEDINGS ARE , IN SO FAR AS THE PARTIES TO THE MAIN ACTION ARE CONCERNED , IN THE NATURE OF A STEP IN THE ACTION PENDING BEFORE THE NATIONAL COURT , THE DECISION ON COSTS IS A MATTER FOR THAT COURT .

Operative part

ON THOSE GROUNDS ,

THE COURT ( FIRST CHAMBER ),

IN ANSWER TO THE QUESTIONS REFERRED TO IT BY THE BUNDESFINANZHOF BY ORDER OF 1 MARCH 1983 , HEREBY RULES :

1 . A PRODUCT WHICH , ON IMPORTATION , CONSISTS OF SEVERAL PARTS SEPARATELY PACKED IN ONE CARTON , NAMELY A MULTIPURPOSE ELECTRONIC DESK CALCULATOR WITH PRINT-OUT AND A 12-FIGURE LUMINOUS DISPLAY SCREEN ( WHICH IS CAPABLE OF ADDITION , MULTIPLICATION , SUBTRACTION , DIVISION , CALCULATION OF PERCENTAGES AND EXTRACTION OF ROOTS AND CALCULATIONS WITH A CONSTANT ), A LOCKABLE STEEL-PLATE CASH-BOX WITH PLASTIC TILL OR DRAWER IN WHICH CASH MAY BE KEPT AND ACCESSORIES ( ELECTRIC CABLE , DOUBLE-SHEETED ROLL OF PAPER AND DUST-COVER ), CANNOT BE REGARDED AS A FUNCTIONAL UNIT OR , THEREFORE , AS A SINGLE ARTICLE WHICH MAY BE DESCRIBED AS A CASH REGISTER WITHIN THE MEANING OF SUBHEADING 84.52 B OF THE COMMON CUSTOMS TARIFF .

2 . THE ARTICLES WHICH TOGETHER CONSTITUTE THE PRODUCT REFERRED TO IN THE FIRST QUESTION MUST BE REGARDED AS GOODS PUT UP IN SETS WITHIN THE MEANING OF GENERAL RULE 3 ( B ) FOR THE INTERPRETATION OF THE NOMENCLATURE OF THE COMMON CUSTOMS TARIFF , THE TARIFF CLASSIFICATION OF WHICH IS BASED ON THE COMPONENT WHICH GIVES THEM THEIR ESSENTIAL CHARACTER .