The European Union has has establish for all its memebers a common regulation in terms of customs tariffs and duties. Since the completion of the internal market, goods can circulate freely between Member States. The 'Common Customs Tariff' (CCT) therefore applies to the import of goods across the external borders of the EU.
The tariff is common to all EU members, but the rates of
duty differ from one kind of import to another depending on what they are and
where they come from. The rates depend on the economic sensitivity of products.
The tariff is therefore the name given to the combination
of the nomenclature (or classification of goods) and
the duty rates which apply to each class of goods. In addition the tariff
contains all other Community legislation that has an effect on the level of
customs duty payable on a particular import, for example country of origin.
The tariff is a concept, a collection of laws as opposed
to a single codified law in itself. There is however a kind of working tariff,
called TARIC, which is not actually a piece of
legislation.
Through the tariff, the Community applies the principle
that domestic producers should be able to compete fairly and equally on the
internal market with manufacturers exporting from other countries
The Nomenclature
governed by the Convention on the Harmonized Commodity Description and Coding
System, commonly known as "HS Nomenclature", is an international
multipurpose nomenclature which was elaborated under the auspices of the World Customs Organisation (WCO). At present there are 138 Contracting
Parties to this Convention, however, it is applied by more than 200
administrations worldwide, mostly to set up their national customs tariff and
for the collection of economic statistical data. The European Union and its
member states together represent a block of 28 Contracting Parties to the
aforementioned Convention.
The HS Nomenclature
comprises about 5,000 commodity groups which are identified by a 6-digit code
and arranged according to a legal and logical structure based on fixed rules.
The Combined Nomenclature of the European Union (EU) integrates the HS
Nomenclature and comprises additional 8-digit subdivisions and legal notes
specifically created to address the needs of the Community.
The official
interpretation of the HS which provides for its uniform interpretation
worldwide is ensured by the HS Committee which comprises representatives from
the Contracting Parties to the HS Convention. Other administrations,
international organisations, international commerce and industry are
represented as observers.
The official
interpretation of the HS which provides for its uniform interpretation
worldwide is ensured by the HS Committee which comprises representatives from
the Contracting Parties to the HS Convention. Other administrations,
international organisations, international commerce and industry are
represented as observers.The HS Convention
provides for two types of decisions taken by the HS Committee:
1. Decisions which amend the Convention including its nomenclature (procedure under Article 16)
2. desicions which "manage or interpret2 the Convention and which normally take form of classification decisions,Explanatory Notes or Classification opinions (procedure under article 8).
1. Decisions which amend the Convention including its nomenclature (procedure under Article 16)
2. desicions which "manage or interpret2 the Convention and which normally take form of classification decisions,Explanatory Notes or Classification opinions (procedure under article 8).
In both cases, the EU
and its member states, together, dispose of a single vote only. The Contracting
Parties may lodge a "reservation" against both types of decisions. A
"reservation" against an amendment of the Convention (Article 16
procedure) annuls the decision that was taken. On the other hand, the legal
effect of a "reservation" in the framework of an Article 8 procedure
of the Convention is limited to a suspension of the decision which has to be
re-examined at a later meeting of the Committee. In practice, this simply means
that the definitive decision is delayed by 6 to 12 months.
Generally, the
amendments to the HS Convention become binding for all Contracting Parties two
years after they are notified by the Secretary General of the WCO. However, the
decisions concerning the management and interpretation of the Convention are
generally deemed to have been accepted by all Contracting Parties two months
after the decision by the HS Committee.
