Common customs tariff

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).

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.