Proposal for a Council Regulation amending Regulation (EEC) No 2658/87 as regards suspension on an autonomous basis of the common customs tariff duties on certain industrial products
Date: 2001-10-22
Institutions: European Commission
Subjects: Combined Nomenclature, committee (EU), common customs tariff, tariff nomenclature, tariff preference

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 22.10.2001
COM(2001) 604 final

Proposal for a

COUNCIL REGULATION

amending Regulation (EEC) No 2658/87 as regards suspension on an autonomous basis
of the common customs tariff duties on certain industrial products

(presented by the Commission)

1.

2.

3.

4.

EXPLANATORY MEMORANDUM

Gel preparations designed to be used in human or veterinary medicine as a lubricant
for parts of the body for surgical operations or physical examinations or as a
coupling agent between the body and medical instruments are currently classified in
Harmonised System code 3824 and are subject to a customs duty of 6.5 %. Such
products will be classifiable, from 1 January 2002,
in Chapter 30 of the CN,
following the transposition of the CN into the HS 2002 (as a result of the
amendments to the nomenclature appended as an annex to the International
Convention on the Harmonized Commodity Description and Coding System
accepted pursuant
to the Recommendation of 25 June 1999 of the Customs
Co-operation Council). As an outcome of the Uruguay Round negotiations on
pharmaceutical products, Chapter 30 is free of customs duties. The contracting
parties to the Agreement on trade in pharmaceutical products have reached an
understanding according to which they will provide, on an autonomous basis, duty
free treatment for these gel preparations and it is in the interest of the Community to
autonomously extend this exemption from customs duties to these products.

Unwrought
lead for refining, containing 0.02 % or more by weight of silver
(“Bullion lead”) falling within CN code 7801 99 10 is subject to a duty rate of “free”
provided that the “end use” criteria are met. “Bullion lead” containing by weight
antimony as the principal other element is classified within CN code 7801 91 00 and
subject to a duty rate of 2.5 %. It is in the commercial interest of the Community to
provide the same tariff treatment for both types of “bullion lead”, i.e. by granting an
autonomous duty suspension under CN code 7801 91 00.

Aircraft ground maintenance simulators falling within CN code 9023 00 80 are
currently subject to a duty rate of 1.4 %. The contracting parties to the Agreement on
trade in civil aircraft have reached an understanding according to which they will
provide, on autonomous basis, duty free treatment
for such aircraft ground
maintenance simulators but not for their parts.

In the light of the foregoing it
No 2658/87 should be amended accordingly.

is proposed that Council Regulation (EEC)

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Proposal for a

COUNCIL REGULATION

amending Regulation (EEC) No 2658/87 as regards suspension on an autonomous basis
of the common customs tariff duties on certain industrial products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 26 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

1

2

Council Regulation (EEC) No 2658/871 of 23 July 1987 on the tariff and statistical
nomenclature and on the Common Customs Tariff established a nomenclature of
goods, “the Combined Nomenclature”.

Gel preparations designed to be used in human or veterinary medicine as a lubricant
for parts of the body for surgical operations or physical examinations or as a coupling
agent between the body and medical instruments are classifiable, until 31 December
2001, in code 3824 of the Harmonized System and as such subject to a customs duty
of 6.5 %. Such products will be classifiable, from 1 January 2002, in Chapter 30 of the
CN, following the entry into force of the amendments to the nomenclature appended
as an annex to the International Convention on the Harmonized Commodity
Description and Coding System and accepted pursuant to the Recommendation of
25 June 1999. As an outcome of the Uruguay Round negotiations on pharmaceutical
products, Chapter 30 is free of customs duties. The contracting parties to the
Agreement on trade in pharmaceutical products have reached an understanding
according to which they will provide, on an autonomous basis, duty free treatment for
these gel preparations and it is in the interest of the Community to autonomously
extend this exemption from customs duties to these products.

Unwrought lead for refining, containing 0.02 % or more by weight of silver (“bullion
lead”) falling within CN code 7801 99 10 is subject to a duty rate of “free” provided
that certain conditions laid down in Commission Regulation (EEC) No 2454/93 of
2 July 1993, laying down provisions for the implementation of Council Regulation
(EEC) No 2913/92 establishing the Community Customs Code2 are met. The Customs
Code Committee has determined that “bullion lead” containing by weight antimony as
the principal other element is classified within CN code 7801 91 00 resulting in the

OJ L 256, 7.9.1987. p.1. Regulation last amended by Council Regulation (EC) No …/2001 (OJ L …,
../../2001, p. …).
OJ L 253, 11.10.1993, p. 1, Regulation as last amended by Regulation (EC) No 993/2001 (OJ L 141,
28.5.2001, p. 1).

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application of a duty rate of 2.5 %. It is in the commercial interest of the Community
treatment envisaged under
to provide, under
CN code 7801 99 10 for both types of “bullion lead”.

the same conditions,

the tariff

The contracting parties to the Agreement on trade in civil aircraft have reached an
understanding according to which they will provide, on an autonomous basis, duty free
treatment
falling within
CN code 9023 00 80.

ground maintenance

simulators

aircraft

for

The measures provided for in this Regulation should be accompanied by end-use
provisions if necessary;
the Regulation (EEC) No 2658/87 should therefore be
amended accordingly,

(4)

(5)

HAS ADOPTED THIS REGULATION:

Article 1

Annex I, Part Two (Schedule of Customs Duties) to Regulation (EEC) No 2658/87 is
amended as follows:

(1)

The following footnote is inserted in column 3 for CN code 3006 70 00 in
Chapter 30,
in the version as amended by Commission Regulation (EC)
No …./20013:

“Customs duty autonomously suspended for an indefinite period.”.

(2)

The following footnote is inserted in column 3 for CN code 7801 91 00 in
Chapter 78:

“Customs duty autonomously suspended, for an indefinite period, for “lead for
refining, containing 0.02 % or more by weight of silver (bullion lead) (TARIC code
7801 91 00 10).

Entry under this subheading is subject
to conditions laid down in the relevant
Community provisions [see Articles 291 to 300 of Commission Regulation (EEC)
No 2454/93 (OJ L 253, 11.10.1993, p. 71) and subsequent amendments].”

(3)

The following footnote is inserted in column 3 for CN code 9023 00 80 in
Chapter 90:

« Customs duty autonomously suspended, for an indefinite period, for “aircraft
ground maintenance simulators, for civil use” (TARIC code 9023 00 80 10).

Entry under this subheading is subject
to conditions laid down in the relevant
Community provisions [see Articles 291 to 300 of Commission Regulation (EEC)
No 2454/93 (OJ L 253, 11.10.1993, p. 71) and subsequent amendments].”

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OJ L … , …/10.2001, p. 1.

4

Article 2

This Regulation shall enter into force on the twentieth day following its publication in the
Official Journal of the European Communities.

Article 1 point (1) shall apply from 1 January 2002.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, […]

For the Council
The President

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FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Proposal for a Council Regulation amending Regulation (EEC) No 2658/87 as
regards suspension on an autonomous basis of the common customs tariff duties on
certain industrial products

2.

BUDGET HEADING INVOLVED

Chapter 12 Article 120

3.

LEGAL BASIS

Article 26 of the Treaty

4.

DESCRIPTION OF OPERATION

Autonomous exemption from duties for certain products falling under Chapters 39,
78 and 90 of the Combined Nomenclature

5.

FINANCIAL IMPACT

Bullion lead

The loss of own resources is difficult to calculate since, under the HS code where
this new subheading should be inserted, the use of the product (intended for refining)
is not known. The loss may nevertheless be estimated as follows: on the basis of
trade in 1999 and 2000, bullion lead represents on average 92 % of trade in
(unwrought) lead other than that containing antimony. It may be estimated that the
same proportion of bullion lead is imported where it contains antimony as the
principal element by weight. On the basis of the two years considered, total imports
under HS code 7801 91 00, under which the suspension is planned, are on average
about EUR 11 300 000. The loss in own resources (erga omnes customs duty: 2.5 %)
can therefore be considered to be less than EUR 300 000 a year.

Ground maintenance simulators for civil aircraft

It is extremely difficult to calculate the loss of own resources in view of the lack of
statistics for these products. According to the information received from the Member
States, the European Community would appear to import about five machines of this
kind a year, for a total of not more than some EUR 5 million, which means a loss of
own resources for the Community budget of a maximum of about EUR 70 000
(2000: erga omnes customs duty: 1.4 %).

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Gel preparations designed to be used in human or veterinary medicine as a
lubricant for parts of the body for surgical operations or physical examinations
or as a coupling agent between the body and medical instruments

This product is not identified in the External Trade statistics. It is therefore almost
impossible to calculate the losses in own resources given its very specific nature. It
would nevertheless seem that
imports of certain “Products and preparations for
pharmaceutical or surgical use” falling within Chapter 3824 of the HS amounted to
EUR 28 million (trade base: 2000).

The gels and lubricants represent only a fraction of these imports, which may be
estimated at a maximum of 5 % of the amount indicated, i.e. EUR 1 400 000, subject
to a duty of 6.5 %, no account being taken of any tariff preferences. The resulting
loss of revenue could be evaluated at a maximum of EUR 100 000 a year.

Total

For this draft regulation, the loss of own resources must therefore be estimated at
about EUR 500 000 a year. It should be noted that no account is taken in this
calculation of possible reduced duties as a result of tariff preferences, for example.
The corresponding loss of traditional own resources must be financed by the Member
States through additional use of GNP resources.

6.

FRAUD PREVENTION MEASURES

– Application of the normal measures under the Community Customs Code and, in

particular, of its article 21.

– Checks on the end-use of some of the products covered by this Council
Regulation will be carried out
in accordance with Articles 291 to 300 of
Commission Regulation (EEC) No 2454/93 laying down provisions for the
implementation of the Community Customs Code.

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