Sparkling fermented beverages with an excess pressure of more than 1.5 bar but less than 3 bar become “still fermented beverages” under the Combined Nomenclature

19/03/18

In brief

The recent Commission Implementing Regulation (EU) no. 2018/396 dated 13 March 2018 harmonised the threshold of the excess pressure for sparkling fermented beverages at ‘3 bar or more’, in order to ensure consistency and uniform interpretation of the Combined Nomenclature and of Council Directive 92/83/EEC  throughout the Union.

In detail

The Commission Implementing Regulation (EU) no. 2018/396 dated 13 March 2018 amending Annex I to Council Regulation (EEC) no. 2658/87 on tariff and statistical nomenclature, and on the Common Customs Tariff, brings changes in terms of sparkling fermented beverages excess pressure as per the Combined Nomenclature (“CN”), Part 2, Chapter 22, Additional Note 10.

According to the new amendments, only fermented beverages with an excess pressure of more than 3 bar will be considered to be sparkling fermented beverages and classified under CN tariff codes 22060031 and 22060039.

Fermented beverages with an excess pressure of more than 1.5 bar but less than 3 bar, considered until the date of entry into force of this Regulation as being sparkling fermented beverages and classified under CN tariff codes 22060031 and 22060039, are to be considered as “still fermented beverages” and will have to be classified under different tariff codes of the Combined Nomenclature.

[Source: The Commission Implementing Regulation (EU) no. 2018/396 dated 13 March 2018 amending Annex I to Council Regulation (EEC) no. 2658/87 on tariff and statistical nomenclature, and on the Common Customs Tariff, published in Official Journal of the European Union no. L 71/37 on 14 of March 2018]

The takeaway

As of 3 April 2018, the date of entry into force of the Commission Implementing Regulation (EU) no. 2018/396, the CN tariff codes 22060031 and 22060039 will no longer be valid for fermented beverages with an excess pressure of more than 1.5 bar but less than 3 bar, such beverages being considered “still beverages” under the Combined Nomenclature.

We recommend that all companies engaged in transactions or activities with such products conduct a detailed analysis in order to determine the impact of these changes. The PwC team can assist you in conducting such an analysis.

For a deeper discussion of how these issues might affect your business, please contact:

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Mihaela Mitroi

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Ionuț Simion

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Diana Coroabă

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Ionuţ Sas

Partner, Tax Services, Romania

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