Proposal for a Council Regulation amending Annex I to Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff
Date: 2005-12-09
Institutions: European Commission
Subjects: Combined Nomenclature, committee (EU), common customs tariff, tariff nomenclature, tariff preference

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.12.2005 
COM(2005) 640 final 

Proposal for a 

COUNCIL REGULATION 

amending Annex I to Regulation (EEC) No 2658/87 on the tariff and statistical 
nomenclature and on the Common Customs Tariff 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1) 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

The  aim  of  this  draft  Council  Regulation  is  to  suspend  customs  duty  autonomously  for  an 
indefinite period, on certain goods contained in Chapter 27 (petroleum waste oils), and hence 
amend  Council  Regulation  (EEC)  No  2658/87  on  the tariff and statistical nomenclature and 
on the Common Customs Tariff. 

•  General context 

Chapter  27  of  the  Combined  Nomenclature  covers  various  items,  including  a  number  of 
mineral fuels and mineral oils.  

Heading 2710 relates more specifically to petroleum oils (light oils, oils other than light oils 
and waste oils).  

Petroleum  oils  and  other  products  listed  in  Chapter  27,  when  they  are  processed  in  manner 
described  in  the Chapter's additional notes, are  autonomously  exempted  from  customs  duty, 
provided the processing has taken place. 

This condition is checked in application of the provisions laid down in the Customs Code and 
its implementing measure (Articles 291 to 300 of Commission Regulation (EEC) No 2454/93 
(OJ L 253 of 11.10.1993, p. 1) and subsequent amendments). 

At present, however, waste oils (code 2710 99 00) do not enjoy duty exemption, even when 
they are intended for those specific processes.  

It is in the interest of the Community to apply the same tariff treatment to both the waste oils 
and the oils themselves. It is therefore proposed that customs duties on waste oils be treated 
using  the  specific  processes  described  in  additional  note  4  be  autonomously  suspended, 
subject to the checks laid down in the Customs Code and its implementing provisions.  

•  Existing provisions in the area of the proposal 

Council  Regulation  (EEC)  No  2658/87  on  the  tariff  and  statistical  nomenclature  and  on  the 
Common Customs Tariff. 

•  Consistency with other policies and objectives of the Union 

In line with, trade, enterprise, environmental, energy and external relations policies.  

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2) 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

The Economic Tariff Questions Group representing the industries of each Member State was 
consulted. 

The Tariff and Statistical Nomenclature Section (CN sector) of the Customs Code Committee.  

The  Tariff  and  Statistical  Nomenclature  Section  (Chemical  sector)  of  the  Customs 
Code Committee. 

Summary of responses and how they have been taken into account 

The suspension corresponds to the agreement of the discussions inside the different groups. 

•  Collection and use of expertise 

Scientific/expertise domains concerned 

Tariff Experts representing the MS on the Economic Tariff Questions Group. 

Customs Experts representing the MS on the Customs Code Committee. 

Chemists Experts representing the MS on the Customs Code Committee. 

Methodology used 

Meetings. 

Main organisations/experts consulted 

Experts designated by each of the MS. 

Summary of advice received and used 

The  existence  of  potentially  serious  risks  with  irreversible  consequences  has  not  been 
mentioned. 

Agreement of the above mentioned Committees. 

Means used to make the expert advice publicly available 

Publication of the Proposal. 

•  Impact assessment 

Inter service consultation. 

Environmental benefit. 

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3) 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

Proposal  for  a  COUNCIL  REGULATION  amending  Annex  I  of  Regulation  (EEC) 
No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff.  

•  Legal basis 

Art 26. 

•  Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Community.  The  subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

Not applicable. 

This set of measures is in line with the principles  set out to simplify the  procedures for the 
operators engaged in foreign trade. 

•  Choice of instruments 

Proposed instruments: regulation. 

Other means would not be adequate for the following reason(s). 

By  virtue  of  Article  26  of  the  EC  Treaty  autonomous  tariff  suspensions  and  quotas  are 
approved  by  the  Council  acting  on  a  qualified  majority  on  the  basis  of  a  Commission 
proposal. 

4) 

BUDGETARY IMPLICATION 

Uncollected customs duties. 

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Proposal for a 

COUNCIL REGULATION 

amending Annex I to Regulation (EEC) No 2658/87 on the tariff and statistical 
nomenclature and on the Common Customs Tariff 

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) 

In the Combined Nomenclature in Annex I to Council Regulation (EEC) No 2658/871, 
customs  duty  is  suspended,  autonomously  and  for  an  indefinite  period,  on  certain 
goods  in  Chapter  27  when  they  are  intended  for  specific  processes,  provided  that 
in  Commission  Regulation  (EEC)  No 2454/93 
certain  conditions 
of 2 July 1993 
implementation  of  Council 
Regulation (EEC) No 2913/92 establishing the Customs Code2 are met. 

laying  down  provisions 

laid  down 

the 

for 

Certain  waste  oils  intended  for  recycling,  classed  under  heading  NC  2710  99  00,  do 
not currently enjoy this exemption. 

For  environmental  reasons  connected  to  the  recycling  of  waste  oils,  the  same  tariff 
treatment should be applied to waste oils and oils from the same group, provided that 
the  legal  and  technical  conditions  are  met.  It  is  therefore  in  the  interest  of  the 
Community  to  suspend,  autonomously  and  for  an  indefinite  period,  customs  duty  on 
such products. 

(4) 

Regulation (EEC) No 2658/87 should therefore be amended accordingly. 

(5) 

Since  the  amendment  introduced  by  this  Regulation  is  to  be  applied  from  the  same 
date  as  the  Combined  Nomenclature  for  2006,  laid  down  in  Regulation  (EC) 
No 1719/2005,  this  Regulation  should  enter  into  force  immediately  and  apply  from 
1 January 2006, 

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2 

OJ L 256, 7.9.1987, p. 1. Regulation as last amended by Commission Regulation (EC) No 1719/2005 
(OJ L 286, 28.10.2005, p. 1). 
OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 883/2005 (OJ L 148, 
11.6.2005, p. 5). 

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HAS ADOPTED THIS REGULATION: 

Article 1 

In  Section  V,  Chapter  27  of  Part  Two  (Schedule  of  Duties)  of  Annex  I  to  Council 
Regulation (EEC) No 2658/87, in the entry for heading CN 2710 99 00, the text in the third 
column is replaced by the following: 

“3,5* 

___________________ 
* 

Duty is suspended, autonomously and for an indefinite period, on products destined 
for undergoing a specific process (TARIC code 2710 99 00 10). This suspension of 
duties  is  subject  to  the  conditions  laid  down  in  the  relevant  Community  legislation 
being met [see Articles 291 to 300 of Regulation (EEC) No 2454/93, (OJ L 253 of 
11.10.1993, p. 1)].” 

Article 2 

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

It shall apply from 1 January 2006. 

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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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL : 

Proposal for a Council Regulation amending Annex I to Regulation (EEC) No 2658/87 
on the tariff and statistical nomenclature and on the Common Customs Tariff 

2. 

BUDGET LINES : 

Chapter and Article: Chap. 12 art. 120 

3. 

FINANCIAL IMPACT  

(cid:133) 

Proposal has no financial implications 

Proposal  has  no  financial  impact  on  expenditure  but  has  a  financial  impact  on 

X 
revenue – the effect is as follows: 

It is very difficult to estimate the loss of own resources involved.  Precise statistics for 
the  products  possibly  intended  for  these  precise  uses  are  not  available  at  import. 
Nevertheless, on the basis of the imports realized in 2004, the maximum loss of revenue 
has been estimated to EURO 744 000 (before deduction of the 25 %), which would be 
the loss for 2004 if the whole heading would have been duty free. 

(€ million to one decimal place) 

Budget line 

Revenue3 

starting 

[Year n] 

Article 120 

Impact on own resources 

01/01/2006 

- 0,5 

4. 

ANTI-FRAUD MEASURES 

Application of the end use control (Article 291 to 300 of the implementing provisions of 
the Customs Code) plus the normal measures under the Community Customs Code. 

5. 

OTHER REMARKS  

Autonomous  exemption  from  customs  duties  for  waste  oils  for  undergoing  a  specific 
process (CN code ex 2710 99 00). 

3 

Regarding traditional own resources (agricultural duties, sugar levies, customs duties) the amounts indicated 
must be net amounts, i.e. gross amounts after deduction of 25 % of collection costs. 

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