Proposal for a Council Regulation amending Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff
Date: 2007-10-17
Institutions: European Commission
Subjects: CCT duties, budget, common customs tariff, statistical nomenclature, tariff nomenclature

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.10.2007 
COM(2007) 615 final 

Proposal for a 

COUNCIL REGULATION 

amending Council 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  provisions  concerning  the  standard  rate  of  duty  have  not  been  changed  since 
1997.  Since  then  the  Common  Customs  Tariff  (CCT)  rates  for  goods  normally 
imported  by  travelers  in  their  personal  luggage  or  sent  in  small  consignments  to 
private  individuals  have  been  reduced  by  about  20  %.  It  is  therefore  appropriate  to 
reduce the standard rate of duty applied in these occasions by one percentage point to 
2,5 % in order to allow private persons to benefit from these reductions. Furthermore, 
given  the  development  of  price  inflation  inside  and  outside  the  Community  for 
products normally imported on these occasions and in view of the increased number 
of  travelers  and  private  consignments,  it  is  appropriate  to  adapt  the  ceiling  which  is 
applicable to the standard rate of duty to EUR 700 in order to facilitate the customs 
clearance in these situations. 

•  General context 

The  review  of  these  provisions  has  to  be  seen  in  the  context  of  the  revisions  of  the 
duty  and  tax  exemption  for  goods  imported  in  the  personal  luggage  of  travellers. 
Furthermore, it has to be seen as a measure which facilitates the customs clearance of 
small consignments sent from private to private for non –commercial purposes. 

•  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 the other policies and objectives of the Union 

The  proposed  amendment  is  in  line  with  the  Commission's  aims  in  respect  of  trade 
facilitation and simplification of customs controls. 

2) CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

The  members  of  the  Customs  Code  Committee  –  General  Legislation  have  been 
consulted in writing. 

Summary of responses and how they have been taken into account 

No objections were raised by the members of the Committee 

•  Collection and use of expertise 

Scientific/expertise domains concerned 

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n. a. 

Methodology used 

n. a. 

Main organisations/experts consulted 

n. a. 

Summary of advice received and used 

n. a. 

Means used to make the expert advice publicly available 

n. a. 

•  Impact assessment 

The proposed measure will significantly reduce the need to classify goods which have 
been  imported  by  private  persons  travelling  to  the  Community  or  which  have  been 
sent in small consignments by private individuals in a third country to private persons 
in the Community for non-commercial purposes. Since the person who declares these 
goods  to  customs  is  normally  obliged  to  classify  the  imported  goods  in  accordance 
with  the  provisions  of  the  CCT  and  since  this  classification  should  be  controlled  by 
the  customs  authorities,  the  elimination  of  this  task  for  most  of  the  cases  concerned 
will significantly simplify and speed up the administrative process for the release into 
free circulation of the goods and thus making customs clearance more efficient. 

3) LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

Proposal for a Council Regulation amending Council 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 

n. a. 

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•  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 Common Customs Tariff duties are approved 
by the Council acting on a qualified majority on the basis of a Commission proposal. 

4) BUDGETARY IMPLICATION 

Uncollected customs duties of an estimated amount of € 7.5 mio. 

5) ADDITIONAL INFORMATION 

•  Simplification 

The  proposal  also  provides  for  the  simplification  of  the  customs  clearance  of  goods 
imported in special circumstances listed in the Regulation 

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Proposal for a 

COUNCIL REGULATION 

amending Council 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 Commission1, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Section  II  D  of  the  preliminary  provisions  of  the  combined  nomenclature  set  out  in 
Annex  I  to  Council  Regulation  (EEC)  No  2658/87  of  23  July  1987  on  the  tariff  and 
statistical nomenclature and on the Common Customs Tariff2 provides for a standard 
rate of customs duty to be charged at the flat rate of 3.5 % ad valorem on goods sent in 
small consignments to private individuals or contained in travelers' personal luggage, 
provided that such importations are not of a commercial nature and that the total value 
of such goods does not exceed EUR 350 per consignment or per traveler; 

The  flat  rate  of  3,5  %  ad  valorem  and  the  ceiling  of  EUR  350  have  been  fixed  by 
Council Regulation (EC) No 866/97 of 12 May 1997 amending Regulation (EEC) No 
tariff  and  statistical 
2658/87  as  regards 
nomenclature3. These provisions have not been adjusted since then; 

the  preliminary  provisions  of 

the 

Since 1997 the rates of customs duty for goods normally imported by travelers in their 
personal  luggage  or  sent  in  small  consignments  to  private  individuals  have  been 
reduced by about 20 %. It is therefore appropriate to reduce the standard rate by one 
percentage  point  to  2.5  %.  This  rate  should  only  be  applied  to  imported  goods  for 
which the rate of the Common Customs Tariff is not "free"; 

Given  the  development  of  price  inflation  inside  and  outside  the  Community  for 
products normally imported on the said occasions and in view of the increased number 
of travelers and private consignments it is appropriate to adapt the ceiling to EUR 700 
in order to facilitate the customs clearance in these situations; 

(5) 

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

1 
2 

3 

OJ C , , p. . 
OJ  L  256,  7.9.1987,  p.1.  Regulation  as  last  amended  by  Regulation  (EC)  No  580/2007  (OJ  L  137; 
30.5.2007, p.1). 
OJ L 124, 16.5.1997, p.1. 

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HAS ADOPTED THIS REGULATION: 

Article 1 

Annex I, Part one, Section II, to Regulation (EEC) No 2658/87 is amended as follows: 

1) 

Point D.1. is replaced by the following: 

"1. Customs duty shall be charged at the flat rate of 2.5 % ad valorem on goods contained in 
consignments  sent  by  one  private  individual  to  another,  or  contained  in  travellers’  personal 
luggage, provided that such importations are not of a commercial nature. 

This flat-rate 2.5 % customs duty shall apply, provided that the intrinsic value of the goods 
subject to import duty does not exceed EUR 700 per consignment or per traveller. 

Such flat-rate assessment shall not apply to goods for which the rate of duty in the schedule of 
customs duties is "free" and to goods of Chapter 24 which are contained in a consignment or 
in  travellers’  personal  luggage  in  amounts  exceeding  those  laid  down  in  Article  31  or  in 
Article 45 of Council Regulation (EEC) No 918/83.4" 

In  point  D.3.  "Articles  29  to  31  and  45  to  49  of  Regulation  (EEC)  No  918/83."  is 

2) 
replaced by "Articles 29 to 31 and 45 of Regulation (EEC) No 918/83." 

3) 

4) 

In point D.4. "€ 350" is replaced by "EUR 700". 

In point D.5. "€ 350" is replaced by "EUR 700". 

Article 2 

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

It shall apply from 1 January 2008. 

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

Done at Brussels,  

For the Council 
The President 

4 

OJ L 105, 23.4.1983, p.1. 

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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 Council 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 

The  loss  for  the  following  years  mentioned  in  the  column  "validity  period"  will  be 
calculated separately by the following regulations. 

Amount budgeted for the year 2008: € 16 431 900 000 

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: 

(€ million to one decimal place) 

Budget line 

Revenue5 

12 month period, 
starting dd/mm/aaaa

[Year 2008] 

Article 120 

Impact on own resources 

01/01/2008 

- 7.5 

4. 

5. 

ANTI-FRAUD MEASURES 

OTHER REMARKS  

Estimated cost of this operation 

There is no evidence available in respect of the value of imported goods subject to 
the standard rate of duty. For the calculation of the estimated loss of revenue it was 
therefore assumed that about 10 mio import declarations of an average value € 100 
would be subject to the standard rate of duty. This would lead to a loss of revenue 
of €100 * 10 mio = € 1,000 mio * 1.0 % = €10.0 mio – 25 %= € 7.5 . 

5 

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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Impact of the operation 

The  proposed  measure  will  significantly  reduce  the  need  to  classify  goods  which 
have  been  imported  by  private  persons  travelling  to  the  Community  or  which  have 
been sent in small consignments by private individuals in a third country to private 
persons  in  the  Community  for  non-commercial  purposes.  Since  the  person  who 
declares these goods to customs is normally obliged to classify the imported goods in 
accordance  with  the  provisions  of  the  CCT  and  since  this  classification  should  be 
controlled  by  the  customs  authorities,  the  elimination  of  this  task  for  most  of  the 
cases concerned will significantly simplify and speed up the administrative process 
for the release into free circulation of the goods and thus making customs clearance 
more efficient. 

EN 

8 

   EN