Medion AG (C-208/06) v Hauptzollamt Duisburg and Canon Deutschland GmbH (C-209/06) v Hauptzollamt Krefeld.
Date: 2007-09-27
34. First of all, that it is settled case-law that, in the interests of legal certainty and for ease of verification, the decisive criterion for the classification of goods for customs purposes is in general to be sought in their objective characteristics and properties as defined in the wording of the relevant heading of the CN and the notes to the sections or chapters (see, in particular, Case C‑42/99 Eru Portuguesa  [2000] ECR I‑7691, paragraph 13; Case C‑500/04 Proxxon  [2006] ECR I‑1545, paragraph 21; and Case C‑183/06 RUMA [2007] ECR I-0000, paragraph 27).
36. Furthermore, the Court has held that the decisive criterion for the customs classification of goods under the common customs tariff must be sought in the objective characteristics and properties of the products at the time of their presentation for customs clearance (Case 175/82 Dinter  [1983] ECR 969, paragraph 10, and Case C‑33/92 Gausepohl‑Fleisch  [1993] ECR I‑3047, paragraph 9). The objective characteristics and properties of products must be capable of being assessed at the time of customs clearance (see, to that effect, Case C‑233/88 van de Kolk [1990] ECR I‑265, paragraph 12; Case C‑38/95 Foods Import  [1996] ECR I‑6543, paragraph 17; and Case C‑14/05 Anagram International  [2006] ECR I‑6763, paragraph 26).
37. Furthermore, the intended use of a product may constitute an objective criterion for classification if it is inherent to the product, and that inherent character must be capable of being assessed on the basis of the product’s objective characteristics and properties (see Case C-459/93 Thyssen Haniel Logistic  [1995] ECR I‑1381, paragraph 13, and Case C‑400/05 B.A.S. Trucks  [2007] ECR I-313, paragraph 29).
38. Finally, the Court has held that it is clear from Article 2(a) of the General Rules for the interpretation of the CN that, for the purposes of customs classification, an incomplete or unfinished article is to be treated in the same way as a complete or finished article, provided that it has the essential character of the complete or finished article (see Case C‑280/97 ROSE Elektrotechnic [1999] ECR I‑689, paragraph 18). The part of the product must be sufficiently large to give the product its essential character (see, to that effect, Case C‑151/93 Voogd Vleesimport en -export [1994] ECR I‑4915, paragraph 20, and Case C‑401/93 Goldstar Europe  [1994] ECR I‑5587, paragraphs 26 to 28).
39. It is clear from the explanatory notes that what differentiates the camcorders covered by subheading 8525 40 91 from those under subheading 8525 40 99 is the capability of the latter, in addition to the recording of sounds and images with the integrated camera or microphone, to be able to record sounds and images where they originate from sources other than the integrated camera or microphone. The essential characteristic of a camcorder classified under subheading 8525 40 99 is therefore, in particular, the DV-in function, that is to say its capability to record video signals from external sources.
40. That capability may be accessible directly by the user where the manufacturer has provided for easy activation of the DV-in function, that activation being explained in the instruction manual provided to the purchaser of the apparatus. If the procedure is not mentioned in the instruction manual, it is necessary, in order for the DV-in function to constitute the essential characteristic of the camcorder, that the modification can be effected easily by a user who lacks any special skills, without the camcorder being subjected to modification of its hardware. It is therefore necessary that, before activation of the DV‑in function, the camcorders have a structure containing the essential characteristics of that function and that the ways of enabling it to be active do not involve additional external hardware.
41. Furthermore, in order for a camcorder to be classified under subheading 8525 40 99, it is necessary, where the modification has been made and the DV‑in function is activated, that the camcorder functions in the same way as another camcorder expressly designed for the DV-in function. In particular, it is necessary that the camcorder may, in the same way as an expressly designed DV-in camcorder, be used to record external video signals independently, without relying on external hardware or software.
42. In the main proceedings, it is clear from the documents on the file and, in particular, from the expert reports commissioned by the national court, that the modification of the camcorders in order to activate the DV-in function is relatively complicated. It required an internet search for the instructions for operating the buttons (for Medion’s camcorders) or the purchase of software (for Canon’s camcorders) and, for all the camcorders, connection to a personal computer and the use of a number of accessories such as a ‘LANC’-cable. Furthermore, Medion and Canon submitted at the hearing that, even when the DV‑in function is activated, it is still necessary to connect the camcorder to a personal computer in order for it to be able to operate in that mode.
43. In light of those considerations, it is for the national court to determine the degree of complexity of the modifications to be made in order to activate the DV‑in function, and to establish the similarity and independent character of the functioning of the camcorders at issue in the main proceedings compared with camcorders presented as containing the DV-in function. If the national court takes the view that the activation of the DV-in function may easily be made by a user without special skills and without the camcorder being subjected to modification of its hardware, and if it establishes similar characteristics and independent functioning, the camcorders must be classified under subheading 8525 40 99. If those conditions are not fulfilled, the camcorders must be classified under subheading 8525 40 91.