Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff
Date: 1993-09-01
Institutions: European Commission
Subjects: common customs tariff, electronic device, statistical nomenclature, tariff nomenclature, testing

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(93) 407 final 

Brussels, 1 September  1993 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

amending Regulation  (EEC) No  2658/87 

on the tariff and  statistical  nomenclature 
and on the Common  Customs Tariff 

(presented by the Commission) 

JSYT" 

EXPLANATORY MEMORANDUM 

z 

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 

CN code 

Description 

Rate of Duty 

autonomous  conventional 

S 

ANNEX 

Supplementary 
unit 

9030  10 
to 
9030 81  10 

(Unchanged) 

9030 81  20 

— Edge connected semiconductor production 

test apparatus, capable of testing 
the embedded  functions in integrated 
circuits ® 

free 

11 

— other: 

9030 81  81 

—  semiconductor production test 

9030 81  83 

9030 81  85 

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 @) .. 

9030  81  89 

—  other 

9030  89 
to 
9030 90 90 

(Unchanged) 

free 

11 

free 

11 

free 

16 

Taric codes for 1993: 

9030 81 90 * 10 
9030 81 90 * 20 
9030 81 90 * 30 
9030 81 90 * 40 

(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 
for 
rate 
CN code 9030 81 is 11 %, the annual cost of the operation 
can be indicated as being 3 080 000 ECU 

duty 

the 

as 

of 

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 

ISSN 0254-1475 

H47S  ^W 

COM(93) 407 final 

DOCUMENTS 

EN 

02 

Catalogue number : CB-CO-93-445-EN-C 

ISBN 92-77-58967-1 

Office for Official Publications of the European Communities 
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