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: 2011-04-28
Institutions: European Commission
Subjects: Combined Nomenclature, common customs tariff, customs duties, tariff preference

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EUROPEAN COMMISSION 

Brussels, 28.4.2011 
COM(2011) 231 final 

2011/0099 (NLE) 

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 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  aim  of  this  draft  Council  Regulation  is to  prolong  the  autonomous  duty  suspension  for 
certain  types  of  monitors  for  which  customs  duties  were  autonomously  suspended  until  31 
December 2010. 

Council  Regulation  (EC)  No  179/2009  of  5  March  2009  amending  Annex  I  to  Regulation 
(EEC)  No  2658/87  on  the  tariff  and  statistical  nomenclature  and  on  the  Common  Customs 
Tariff, for a limited period of time, autonomously suspended the conventional rate of duty in 
the Common Customs Tariff for certain black and white monitors of subheading 8528 59 101 
and  for  certain  colour  monitors  of  subheading  8528  59  902.  This  measure  expired  on  31 
December 2010. 

European industry represented by DigitalEurope requested that the above duty suspension is 
prolonged. 

The convergence of IT and consumer electronics has led to a situation where many monitors 
may  be  used  in  automatic  data  processing  systems  as  well  as  in  conjunction  with  different 
consumer electronic  devices  such  as DVD  players,  video  game  machines,  car  entertainment 
systems.  

Considering  the  interest  expressed  by  European  industry  in  a  prolongation  of  the  duty 
suspension and having taken into account consumer interests, it is in the interest of the Union 
to prolong the autonomous duty suspension for certain types of monitors until 30 June 2011, 
and to amend Annex I to Council Regulation (EEC) 2658/87 accordingly. 

Furthermore, in order to avoid a gap in the granting of the suspension, it is proposed that this 
Council Regulation has retroactive effect as from 1 January 2011. 

The proposal is in line with the Union's external trade and industry policies. 

In view of the above, it is proposed that the Commission forward to the Council this proposal 
to  prolong  the  current  autonomous  duty  suspension,  and  that  the  Annex  I  to  Council 
Regulation (EEC) No 2658/87 be amended accordingly. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The Economic Tariff Questions Group of the Customs Code Committee was consulted on 17 
December 2010. 

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Black  and  white  or  other  monochrome  monitors,  using  liquid  crystal  display  technology  with  either 
digital visual interface or a video graphics array connector or both with a diagonal measurement of the 
screen not exceeding 77,50 cm (i.e. 30.5 inches), with an aspect ratio of 1:1, 4:3, 5:4 or 16:10, with a 
pixel resolution exceeding 1,92 mega pixels, and with a dot pitch not exceeding 0,3 mm. 
Colour monitors, using liquid crystal display technology, with a diagonal measurement of the screen not 
exceeding 55,9 cm (i.e. 22 inches), with an aspect ratio of 1:1, 4:3, 5:4 or 16:10. 

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The tariff and statistical nomenclature section of the Customs Code Committee was consulted 
on 9 February 2011. 

European industry represented by DigitalEurope was in favour of a prolongation. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The  legal  basis  of  this  regulation  proposal  is  Article  31  and  32  of  the  Treaty  on  the 
Functioning of the European Union. 

The  subsidiarity  principle  does  not  apply,  as  the  proposal  falls  under  the  exclusive 
competence of the Union. 

The proposal complies with the proportionality principle given that, as foreseen in the Treaty, 
it  promotes  trade  between  Member  States  and  third  countries  and  balances  the  commercial 
interest of economic operators (manufacturers in the Union and importers) without changing 
the EU WTO schedule. 

By virtue of Article 31 of the Treaty on the Functioning of the European Union autonomous 
tariff  suspensions  and  quotas  are  fixed  by  the  Council  acting  by  qualified  majority  on  the 
basis of a Commission proposal. 

4. 

BUDGETARY IMPLICATION 

Uncollected  customs  duties  in  the  range  of  45.17  MEURO  (based  on  the  import  figures  of 
2009). 

5. 

OPTIONAL ELEMENTS 

As  the  proposed  regulation  would  expire  by  30  June  2011,  its  speedy  adoption  is 
recommended. 

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2011/0099 (NLE) 

Proposal for a 

COUNCIL REGULATION 

of […] 

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  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 31 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Council  Regulation  (EC)  No  179/2009  of  5  March  2009  amending  Annex  I  to 
Regulation  (EEC)  No  2658/87  on  the  tariff  and  statistical  nomenclature  and  on  the 
Common Customs Tariff3 suspended totally, for a period of two years, the autonomous 
Common Customs Tariff duties for certain black and white or other monochrome, and 
certain colour monitors using liquid crystal display technology and falling under CN 
codes 8528 59 10 and 8528 59 90. 

On economic and industrial policy grounds, it is in the interest of the Union to prolong 
the autonomous duty suspension provided for in Regulation (EC) No 179/2009 for a 
period of six months starting from 1 January 2011. 

Following  a  restructuring  of  heading  8528  of  the  Combined  Nomenclature,  the 
monitors in question are covered now by CN codes 8528 59 10 and 8528 59 40. The 
tariff suspensions provided for in this Regulation should therefore concern those CN 
codes.  

Council Regulation (EEC) No 2658/874 should therefore be amended accordingly.  

The suspensions provided for in this Regulation are a prolongation of the suspensions 
granted by Regulation (EC) No 179/2009 that expired on 31 December 2010. Since it 
is not in the interest of the Union that there be any interruption of the tariff treatment 
of  the  monitors  covered  by  the  suspension,  this  Regulation  should  apply  from  1 
January 2011, 

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OJ L 63, 7.3.2009, p. 1. 
OJ L 256, 7.9.1987, p. 1. 

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HAS ADOPTED THIS REGULATION: 

Article 1 

Part Two, Section XVI, Chapter 85 of Annex I to Regulation (EEC) No 2658/87 is amended 
as follows: 

(1). the text in column 3 for CN code 8528 59 10 is replaced by the following: 

'14 (*) 

_________ 

(*)  Customs  duty  autonomously  suspended  until  30  June  2011  for  black  and  white  or  other 
monochrome  monitors,  using  liquid  crystal  display  technology,  equipped  with  either  digital 
visual  interface  (DVI)  or  a  video  graphics  array  (VGA)  connector  or  both  with  a  diagonal 
measurement of the screen not exceeding 77,50 cm (i.e. 30.5 inches), with an aspect ratio of 
1:1, 4:3, 5:4 or 16:10, with a pixel resolution exceeding 1,92 mega pixels, and with a dot pitch 
not exceeding 0,3 mm. (TARIC code 8528 59 10 10)'; 

(2). the text in column 3 for CN code 8528 59 40 is replaced by the following: 

'14 (*) 

_________ 

(*)  Customs  duty  autonomously  suspended  until  30  June  2011  for  colour  monitors,  using 
liquid  crystal  display  technology,  with  a  diagonal  measurement  of  the  screen  not  exceeding 
55,9 cm (i.e. 22 inches), with an aspect ratio of 1:1, 4:3, 5:4 or 16:10. (TARIC code 8528 59 
40 40)'. 

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 2011. 

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: Chapter 12, Article 120 

Amount budgeted for the year concerned: EUR 16 653 700 000 (B2011) 

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: 

On the basis of the imports realised in 2009, the maximum loss of revenue has been 
estimated to 45.17 MEURO. 

Budget 
line 

Revenue5 

(€ million to one decimal place)  

6 month period, 
starting 
dd/mm/aaaa 

[Year: First 
semester of 2011] 

Article 120 

Impact on own resources 

01/01/2011 

45 166 000 

4. 

ANTI-FRAUD MEASURES 

Application of the normal measures under the Community Customs Code. 

5. 

OTHER REMARKS  

The following method of calculation was used: 

Data  on  the  value  of  imports  of  monitors  under  TARIC  codes  8528  59  10  10  and 
8528 59 90 40 have been extracted for the year 2009 (complete data for 2010 were 
not available at that time). The corresponding duty rate (14%) has been applied to the 

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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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value  extracted  in  order  to obtain  the  loss of duties on the imports for these codes. 
Finally, the amount of the collection costs (25%) has been deduced to obtain the final 
amount  of  loss  of  own  ressources  for  the  year  2009.  It  is  assumed  that  the  trade 
volume  in  the  products  concerned  will  remain  unchanged  for  the  period  under 
consideration in the present proposal for an autonomous duty suspension.  

€m 860.30 (import value) * 0,14 = €m 120.44 (gross value)* 0,75 = €m 90.33 (net 
value per year) * 0,5 = € 45.17 (net value 6 month period) 

The loss of revenue in Traditional Own Resources shall be compensated by Member 
States contributions based on the GNI.  

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