WRITTEN QUESTION E-2626/02

by Klaus-Heiner Lehne (PPE-DE) to the Commission

(18 September 2002)

Subject: Customs classification of granules, containing sugar, for the manufacture of lemon tea drinks

For German suppliers, the Commission classifies lemon tea under Customs Tariff No 21069098 Food preparations containing more than 5 % sucrose, and for Polish suppliers under CCT No 2101209092, preparations with a basis of extracts, essences or concentrates of tea or mate.

This classification means that Polish lemon tea can be imported free of customs duty from Poland. The price of sugar in Poland, which is considerably lower than that in the EU, and the lack of a compensation in the form of the customs duty which would be incurred by correct classification under CCT No 21069098, results in Polish suppliers being able to supply a comparable lemon tea product at a significantly lower price than firms producing the product in Germany.

The same distortions of competition arise between German and Slovenian drinks manufacturers, because the latter's competitive advantages are also not levelled out by customs duty. The parties who suffer as a result of this classification are the German firms, who will eventually cease to be competitive, leading to their closure and to higher unemployment in the EU.

1. How does it come about that a lemon tea drink comprising 90,1 % sugar and 2,5 % instant tea, produced in Poland and imported into Germany, is classified under the customs-free CCT No 2101209092, while tea produced in Germany comprising 95 % sugar and ca 1,2-1,8 % tea extract is classified under CCT No 21069098, which does attract customs duty?

2. How can this action by the Commission be justified under Article 27(b) of the EC Treaty?

3. Will the Commission be improving the CCT classification of granulates for European firms in future, thereby creating balanced conditions of competition, e.g. by amending the CCT and statistical nomenclature?

Answer given by Mr Bolkestein on behalf of the Commission

(29 October 2002)

In order to eliminate divergences in the tariff classification of sweet preparations based on tea extract, classified by some Member State customs authorities under heading 2101 20 92, by others under 2106 90 98, on 12 February 2001 the Commission adopted Commission Regulation (EC) No 306/2001 of 12 February 2001 concerning the classification of certain goods in the Combined Nomenclature(1) which classifies a product known as lemon tea, in powdered form, comprising 90,1 % sugar, 2,5 % tea extract and lemon flavouring under heading 2101 20 92. Under the EC-Poland and EC-Slovenia Agreements, this heading qualifies for exemption from import duties.

As regards the two products mentioned by the Honourable Member, and on the basis of the information provided, the Commission considers that the two products comprising 90,1 % sugar and 2,5 % tea extract and 95 % sugar and 1,2 to 1,8 % tea extract, respectively, can be classified under heading 2101 20 92 on the basis of the abovementioned Regulation.

In view of the above, the Commission considers that it has taken all appropriate measures to ensure the uniform application in the Community of the Combined Nomenclature under the powers conferred upon it by Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff(2) and in the spirit of Article 27 of the EC Treaty.

The Commission reiterates that tariff classifications cannot be tailored to the economic interests of a sector, as this could lead to distortions of competition. The classification of products is not determined by the customs duties pertaining to different tariff headings, but by objective and verifiable criteria based on the nature of the products themselves.

No change to the classification can be made without amending the legal texts of the Harmonised System which is an international Convention and therefore cannot be amended unilaterally by the Commission.

(1) OJ L 44, 15.2.2001.

(2) OJ L 256, 7.9.1987.