CELEX: 51993PC0407
Language: en
Date: 1993-09-01
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           C0M(93) 407 final
                                           Brussels, 1 September 1993
                              Proposal for a
                         COUNCIL REGULATION (EEC)
                amending Regulation (EEC) No 2658/87
             on the tariff and statistical nomenclature
                  and on the Common Customs Tariff
                       (presented by the Commission)
JSYT"
 ---pagebreak---                                                            z
                    EXPLANATORY MEMORANDUM
In 1991 EUROBIT (the European Association of Manufacturers of
Business Machines and Data Processing         Equipment) made
representations to the Commission for relief from customs duty
on Integrated Circuit Test Equipment with support from IBETA
(the Irish Business Equipment Se Technology Association) and
the Irish authorities.
One reason for this request was that manufacturing facilities
in the integrated circuit industry were being established in
Ireland (supported by the EC Regional Funds) and that -
without the availability of the equipment within the Community
- the integrated circuits produced would be tested elsewhere.
Furthermore, trade stressed that comparable test equipment was
not currently or foreseen to be produced in the Community. It
should be noted that relief for duty on parts of the equipment
which may be subsequently imported was not being sought.
Test equipment is - as indicated above - used in the
manufacturing process of integrated circuits. It performs its
checks by applying electrical signals to the device under
test, measuring the response to those signals and comparing
the measurements with theoretically expected values. It checks
whether an integrated circuit has acceptable performance or
not. It is also used to identify and discard any packaged
circuits which fail to comply to specifications. It is, as
such, the primary tool used to ensure the quality of the
circuits. The cost of the test equipment for which relief is
being sought is between 2-5 MECU indicating the complex
technical nature of the equipment concerned.
The nature of the equipment and its particular technical
specifications makes it difficult to define the equipment
concerned in 'normal' nomenclature terms. The Commission,
therefore, proposes (after having consulted Member States'
experts in the Nomenclature Committee) to define the scope of
this measure by introducing four new end-use tariff lines
under heading 9030 81 of the Combined nomenclature. Each of
the descriptions under these headings have been supplemented
with an associated Additional Note to which the Nomenclature
Committee has already given an unanimous favourable opinion
subject to the adoption by the Council of this proposal.
 ---pagebreak---                 proposal for a COUNCIL REGULATION (EEC)
               amending Regulation (EEC) No 2658/87
           on the tariff and statistical nomenclature
                 and on the Common Customs Tariff
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community and in particular Articles 28 and 113 thereof,
Having regard to the proposal from the Commission,
Whereas   Council   Regulation    (EEC)  No    2658/87    <1>,   as   last
                                             (2)
amended by Regulation     (EEC) No ..../..      , established on the
basis of the Harmonized System a goods nomenclature known as
the Combined Nomenclature;
                                                           (3)
Whereas  Commission    Regulation   (EEC) No     4142/87      , as    last
                                                   (4>
amended   by  Regulation    (EEC)  No   ..../..        determines      the
conditions under which certain goods are eligible on                import
for a favourable tariff      arrangement by reason of their end-
use,
Whereas goods    covered   by  the  end-use   provisions      benefit   on
their release for free circulation from a reduced or zero rate
of duty solely on the grounds and on the condition that they
are being used for a specified purpose;
Whereas   it  is   considered   desirable   that     certain    types    of
integrated circuit test equipment should benefit from relief
from customs duty under end-use provisions on importation when
 (1) OJ No L 256, 7.9.1987, p.l.
 (2) OJ No L
 (3) OJ No L 387, 31.12.1987, p.81.
 (4) OJ No  L
 ---pagebreak--- destined for the functionality testing of integrated circuits;
whereas it is appropriate to introduce in the combined
nomenclature subheadings with end-use provisions within HS
code 9030 81 for such equipment for functionality testing
purposes;
Whereas the Combined Nomenclature should therefore be amended,
HAS ADOPTED THIS REGULATION:
                           Article 1
1.   The Combined Nomenclature attached to Regulation (EEC) No
     2658/87 is hereby amended in accordance with the Annex to
     this Regulation.
2.   The amendments to the Combined Nomenclature subheadings
     provided for in this Regulation shall be applied as Taric
     subdivisions until their insertion in the Combined
     Nomenclature under the conditions laid down in Article 12
     of Regulation (EEC) No 2658/87.
                           Article 2
This Regulation shall enter into force on the 21st day
following that of its publication in the Official Journal of
the European Communities
This Regulation shall be binding in its entirety and directly
applicable in all Member States
Done in Brussels,                       For the Council
                                        The President
 ---pagebreak---                                                                                                            S
                                                                                                              ANNEX
CN code           Description                                              Rate of Duty               Supplementary
                                                                                                      unit
                                                                           autonomous conventional
9030 10
to
9030 81 10        (Unchanged)
9030 81 20        — Edge connected semiconductor production
                     test apparatus, capable of testing
                     the embedded functions in integrated
                     circuits ®                                             free        11
                  — other:
9030 81 81        — semiconductor production test
                      apparatus, capable of testing the
                      embedded functions in
                      digital integrated circuits w                         free        11
9030 81 83           • semiconductor production test
                      apparatus, capable of testing the
                      embedded functions
                      in analogue/digital
                      integrated circuits @)                                free        11
 9030 81 85          • semiconductor production test
                      apparatus, capable of testing the
                      embedded functions in
                      analogue integrated circuits @) ..                    free
 9030 81 89        — other                                                   16
 9030 89
 to
 9030 90 90        (Unchanged)
 Taric codes for 1993:                        9030 81 90 * 10
                                              9030 81 90 * 20
                                              9030 81 90 * 30
                                              9030 81 90 * 40
 (2) Entry under this subheading is subject to conditions laid down in relevant Community provisions.
 ---pagebreak---                                                           €
FINANCIAL RECORD
     Budget line concerned : Chap. 12 Art. 120
     Title of the  tariff measure concerned : Draft proposal
     for a Council  Regulation (EEC) amending Regulation (EEC)
     No 2658/87 on the tariff and statistical nomenclature and
     on the Common Customs Tariff
     Legal basis : Art. 28 and 113 of the Treaty
     Objective : Relief of CCT duties by means of end-use
     relief for certain integrated circuits test equipment.
     Cost of this tariff measure to be borne by the EEC-budget
     Difficult to estimate, due     to  lack  of  adequate  and
     precise Community statistics.
     However, on the assumption that 8 sets of this equipment
     of an average value of 3.5 MECU will be imported a year
     and      as       the     rate       of      duty      for
     CN code 9030 81 is 11 %, the annual cost of the operation
     can be indicated as being 3 080 000 ECU
 ---pagebreak---                                                          -}
IMPACT ON COMPETITIVENESS AND EMPLOYMENT RECORD
The present proposal should improve the current situation in
respect of competitiveness and employment.
Currently testing of integrated circuits is carried out
outside the Community. The granting of end use refief of duty
should encourage manufacturers of integrated circuits within
the Community to establish testing facilities thus bringing
expertise and well as employment to the Community.
                                                              i
 ---pagebreak---                                                                              H47S ^ W
                                                                     ISSN 0254-1475
                                                              COM(93) 407 final
                                                      DOCUMENTS
EN                                                                              02
                                 Catalogue number : CB-CO-93-445-EN-C
                                                             ISBN 92-77-58967-1
Office for Official Publications of the European Communities
L-2985 Luxembourg