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: 2006-12-12
Institutions: European Commission
Subjects: Combined Nomenclature, common customs tariff, screen, suspension of customs duties, tariff nomenclature

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.12.2006 
COM(2006) 788 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  prolong  the  current  autonomous  duty 
suspension for certain types of video monitors for which the Common Customs Tariff duties 
are totally suspended until 31 December 2006.  

•  General context 

In view of the rapid evolution of technology and challenges with regard to the classification of 
new products in the electronics area, Council Regulation (EC) No 493/2005 of 16 March 2005 
amending Annex I to Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature 
and on the Common Customs Tariff was adopted suspending totally, for a limited period, the 
autonomous  Common  Customs  Tariff  duties  for  monitors  using  liquid  crystal  display 
technology, with a diagonal measurement of the screen of 48,5 cm or less and a screen aspect 
ratio  of  4:3  or  5:4  and  classifiable  under  CN  code  8528  21 90.  This  measure  expires  on  31 
December 2006, unless the Council decides to prolong it.  

The question whether to prolong the tariff suspension was discussed on 18 May 2006 by the 
Council's working group on the Customs Union (CCT).  

Following  discussions  with  member  states  and  European  industry  represented  by  EICTA,  it 
has been concluded that a prolongation of the current autonomous duty suspension for another 
2 years starting 1 January 2007 is appropriate. 

It  should  be  noted  that  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  26  June  2004  of  the  Customs 
Co-operation  Council  and  the  transposition  of  the  CN  into  the  HS  2007  products  currently 
classifiable  under  CN  code  8528  21  90  will  be  classified,  from  1  January  2007,  under  CN 
code 8528 59 90 of the Combined Nomenclature. Therefore it is also necessary to amend the 
CN code.  

Hence,  the  Commission  is  submitting  the  attached  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.  

•  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. 

Council  Regulation  (EC)  No  493/2005  of  16  March  2005  amending  Annex  I  to  Regulation 
(EEC)  No  2658/87  on  the  tariff  and  statistical  nomenclature  and  on  the  Common  Customs. 
This Council regulation will expire by 31 December 2006.  

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•  Consistency with other policies and objectives of the Union 

In line with external trade and industry policies.  

2) 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

The Council's working group on the Customs Union (CCT).  

The  Tariff  and  Statistical  Nomenclature  Section  (Mechanical/Miscellaneous  Sector)  of  the 
Customs Code Committee.  

EICTA  (European  Information,  Communications  and  Consumer  Electronics  Technology 
Industry Association). 

Summary of responses and how they have been taken into account 

The proposal is in accordance with the views expressed by the interested parties. 

•  Collection and use of expertise 

Scientific/expertise domains concerned 

Customs nomenclature, external trade and industry policy 

Methodology used 

Meetings with experts representing Member States. 

Consultations with EICTA.  

Main organisations/experts consulted 

Council's  working  group  on  the  Customs  Union  (CCT),  the  Tariff  and  Statistical 
Nomenclature Section of the Customs Code and EICTA.  

Summary of advice received and used 

It is for consumer benefit reasons and in order to promote the trade between Member states 
and third countries in the interest of the Community to prolong the current autonomous duty 
suspension for certain types of video monitors for another 2 years starting 1 January 2007. 

Means used to make the expert advice publicly available 

Publication of the Proposal. 

•  Impact assessment 

Trade facilitation 

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3) 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

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.  

•  Legal basis 

Art 26 of the Treaty. 

•  Subsidiarity principle 

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

•  Proportionality principle 

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

As foreseen in the Treaty it promotes the trade between Member states and third countries and 
balances the commercial interest of economic operators (manufacturers in the Community and 
importers) without changing the EC WTO schedule. 

•  Choice of instruments 

Proposed instruments: Council 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 in the range of 300 MEURO.  

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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) 

(4) 

(5) 

(6) 

1 

2 

In  the  Combined  Nomenclature  set  out  in  Annex  I  to  Council  Regulation  (EEC)  No 
2658/871, the CN codes for monitors are 8471 and 8528. 

For the classification of the monitors outside CN code 8528, certain conditions are to 
be  met.  The  convergence  of  information  technology,  consumer  electronic  industries 
and new technologies has created a situation where it is not possible, when classifying 
monitors,  to  determine,  by  reference  to  simple  technical  characteristics,  the  main 
purpose of a particular monitor. It is not feasible to establish unambiguous criteria for 
the classification of the products to be based on objective and quantifiable data.  

Taking  into  consideration  the  trade  and  technical  data  it  is  in  the  interest  of  the 
Community  to  suspend  totally,  for  a  limited  period,  the  autonomous  Common 
Customs Tariff duties for certain type of monitors. 

For those reasons Council Regulation (EC) No 493/2005 of 16 March 2005 amending 
Annex I to Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and 
on  the  Common  Customs  Tariff2  suspended  totally,  for  a  limited  period,  the 
autonomous Common Customs Tariff duties for monitors using liquid crystal display 
technology, with a diagonal measurement of the screen of 48,5 cm or less and a screen 
aspect ratio of 4:3 or 5:4 and classifiable under CN code 8528 21 90.  

This suspension measure introduced by the Regulation (EC) No 493/2005 expires by 
31 December 2006.  

On  consumer  benefit  grounds,  to  ensure  rational  development  of  production  and  an 
expansion  of  consumption  within  the  Community  and  in  order  to  promote  trade 
between Member states and third countries, it is in the interest of the Community to 

OJ L 256, 7.9.1987, p. 1. Regulation as last amended by Commission Regulation (EC) No 1549/2006 
(OJ L 301, 31.10.2006, p.1) 
OJ L 82, 31.3.2005, p.1 

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prolong  the  current  autonomous  duty  suspension  for  another  two  years  starting  1 
January 2007. 

(7) 

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  26  June  2004  of  the  Customs 
Co-operation  Council  and  the  transposition  of  the  CN  into  the  HS  2007  products 
classifiable under CN code 8528 21 90 will be classified, from 1 January 2007, under 
CN code 8528 59 90 of the Combined Nomenclature.  

(8) 

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

(9) 

As  the  suspension  introduced  by  this  Regulation  is  a  prolongation  of  a  suspension 
introduced  by  Regulation  (EC)  No  493/2005  that  expires  by  31  December  2006  and 
since it is not in the interest of the Community that there is an interruption of the tariff 
treatment of the monitors covered by this suspension, this Regulation should enter into 
force immediately and apply from 1 January 2007. 

HAS ADOPTED THIS REGULATION: 

Article 1 

The  text  in  column  3  for  CN  code  8528  59  90  in  Chapter  85,  Section  XVI  of  Part  Two, 
Schedule of Customs Duties, of Annex 1 to Regulation (EEC) No 2658/87 shall be replaced 
by the following: 

“14(*) 
___________________ 
* 

Customs duty autonomously suspended, until 31 December 2008, for monitors with a 
diagonal measurement of the screen of 48,5 cm or less and with an aspect ratio of 4:3 
or 5:4 (TARIC code 8528 59 90 30) 

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 2007 

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 
are not available on the imports of this kind of products given that many are currently 
being misclassified in headings which are subject to a duty free treatment. 

On the basis of the imports realized in 2005, the maximum loss of revenue has been 
estimated to 300 MEURO.  

(€ million to one decimal place) 

Budget line 

Revenue 

starting 

[Year n] 

Article 120 

Impact on own resources 

01/01/2007 

300 

4. 

ANTI-FRAUD MEASURES 

Application of the normal measures under the Community Customs Code. 

5. 

OTHER REMARKS 

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