EN Official Journal of the European Union CE 88/425

(2004/C 88 E/0431)

WRITTEN QUESTION P-2646/03

by Elizabeth Lynne (ELDR) to the Commission

(28 August 2003)

Subject: Customs classification of ostomy appliances

Is it true that the European Commission is proposing to reclassify ostomy appliances under CN Heading 3926 (general plastic) instead of Heading 9021 (appliances that compensate for a disability)?

Is the Commission aware that in practice this would make ostomy appliances more expensive, because of import duties, which would be zero-rated if the appliances were classified under Heading 9021?

Is the Commission aware that if the proposed classification is used in the World Customs Organisation, the access of ostomates to such products in Eastern Europe and developing countries would be extremely difficult and expensive, due to higher import duties in these countries?

With which organisations has the European Commission consulted when it decided to propose the reclassification?

Does the Commission agree that ostomy appliances perform the function of the removed part of the gut or urinary tract?

Could they not be considered ‘appliances which are worn or carried or implanted in the body, to compensate for a defect and disability’ (CN Heading 9021)?

In any event, what does the Commission intend to do in order to ensure that disabled people (ostomates) in the EU and developing countries are not affected by this customs classification?

Answer given by Mr Bolkestein on behalf of the Commission

(23 September 2003)

No. The Commission is not proposing to reclassify ostomy appliances. The Commission has taken action to clarify the classification of the two main components of ostomy appliances which are presented separately, namely the adhesive wafer and the pouch. Therefore, the Commission adopted in 1999 Decision 2000/41/EC (1) invalidating a number of decisions issued by Member States, so-called binding tariff information (BTIs) classifying incorrectly certain components of ostomy products under CN codes 9018 90 85 and 9021 90 90. Furthermore, in 2002 the Commission published an Explanatory Note to the Combined Nomenclature (2) clarifying what is meant by the expression ‘to compensate for a defect or disability’, the result of which is that the adhesive wafer and the pouch are not classifiable in the Harmonised System (HS) heading 9021 but according to the constituent material.

Yes. The Commission is aware of the economic consequences of the application of the correct products classification. However, classification decisions are not taken on the basis of their economic consequences but in order to ensure the correct and uniform application of the Combined Nomenclature within the Union.

When determining the duty rate to be applied, correct heading in the nomenclature used in the Community's Common Customs Tariff (CCT) (3) in accordance with the General Interpretative Rules, must be identified. These rules can be found in the introductory part of the tariff. It should be noted that the duty rates in question are the outcome of tariff negotiations based on the HS nomenclature in the World Trade Organisation/General Agreement on Tariffs and Trade (WTO/GATT).

Yes. The Commission is aware that some contracting parties to the HS Convention, such as the United States and Norway, classify the two main components of ostomy appliance, namely the adhesive wafer and the pouch, under HS heading 3962 when made of plastics.

None. When the Commission adopts classification measures, this is done to ensure a uniform application within the Union of the Common Customs Tariff as foreseen by Article 23 of the consolidated version of the EC Treaty. In order to adopt such measures, the Commission applies the rules for the interpretation of the nomenclature to the product concerned on the basis of the available documentation including laboratory controls.

The products to be classified are the adhesive wafer and the pouch. The Honourable Member will find the answer in the Explanatory Note referred to above.

At international level the Commission envisages two types of action.

The first will address part of the classification issue by suggesting a transfer of the adhesive wafers from Chapter 39 to Chapter 30. A transfer of products from one HS heading to another will unfortunately not resolve all economic issues resulting from the classification of products.

Therefore, a second action will be envisaged when reviewing tariff levels on all products in the context of the next round of multilateral market access negotiations for industrial products to take into account demands from European industry.

(1) Commission Decision 2000/41/EC of 29 December 1999 concerning the validity of certain binding tariff information, OJ L 13, 19.1.2000.

(2) OJ C 256, 23.10.2002.

(3) The CCT rates for 2003 are published in the OJ L 290, 28.10.2002.