Tariff nomenclature and Common Customs Tariff: Commission Regulation (EU) 2021/1832 amending Annex I to Regulation (CEE) no. 2658/87

The takeaway

The new Combined Nomenclature enters into force on 1 January 2022 with new tariff codes and new additional unit requirements for various products.

The tariff codes valid in 2022 can be viewed at:

https://eur-lex.europa.eu/legal-content/RO/TXT/PDF/?uri=OJ:L:2021:385:FULL&from=RO.

The new tariff codes should be used for customs operations, Intrastat declarations and operations with excisable products as of 1 January 2022.

Given the multiple changes to the tariff classifications for a wide range of products, it is advisable to consider the following issues:

• As the Combined Nomenclature (CN) for 2022 differs from the Nomenclature made available by the National Agency for Fiscal Administration for SAF-T reporting, we expect the SAF-T list to be updated accordingly.
• The changes will have VAT implications in areas such as the reduced VAT rate and the application of simplification measures.
• The changes may have implications for environmental legislation.

In detail

The Tariff Nomenclature and the Common Customs Tariff (Combined Nomenclature) were published In the Official Journal of the European Union no. 385/2021 dated 29 October 2021 and enter into force on 1 January 2022.

Given the changed statistics and trade policy requirements, technological and commercial developments, and amendments to the Harmonised Commodity Description and Coding System (“SA”) in 2022 to Chapter 24 on new tobacco products, the changes introduced by the new CN for 2022 include:

• New tariff codes have been introduced for products containing tobacco, reconstituted tobacco, nicotine or tobacco or nicotine substitutes for inhalation, other nicotine-containing products intended for the absorption of nicotine into the human body:
  
  • Products for inhalation without burning (containing tobacco / reconstituted tobacco, nicotine or other) – new tariff codes from 2404 11 00 to 2404 19 90;
  • Oral nicotine-containing products intended to help people quit smoking, with transdermal application or other – new tariff codes 2404 91 to 2404 99 00.
• The tariff classification of some products has been changed:
  
  • Products under tariff heading 8548 will be classified under either the new 8548 – “electrical parts of machinery and apparatus” or tariff 8549 – “waste and scrap, electrical and electronic”, with various tariff subheadings defined by the sorting method or the lead/cadmium/mercury content;
  • “Electronic cigarette” devices will have a new tariff classification of 8543 70 70;
  • Tariff item 8524 has been introduced for flat panel display modules with or without built-in touch screens;
  • Smartphones will be classified under 8517 13 00, which is separate from other wireless mobile phones.
• New subheadings have been introduced to facilitate the monitoring of certain goods such as “Rose oil” in Chapter 33, “Fibreboard and plywood” in Chapter 44, “Steel tubes” in Chapter 73, “Aluminium composite panels” in Chapter 76 of the CN.
  
• Has been amended the certain substances in the list of common names for pharmaceutical substances in Annex 3 to Part III (tariff annexes) of Annex I to Regulation (EEC) No 2658/87 and from the list of pharmaceutical intermediates in Annex 6 to Part III (tariff annexes) of Annex I to the same Regulation.
  
• In the context of the effort to limit global climate change and the impact of trade in fluorinated greenhouse gases:
  
  • additional TARIC codes have been added to Annex 10 of the CN:
    • Chapter 5 (e.g. mammalian eggs and embryos);
    • Chapter 10 (e.g. rice);
    • Chapter 15 (e.g. olive oil);
    • Chapter 28 (e.g. rare earth metals scandium and yttrium); 
    • Chapter 29 (e.g. halogenated hydrocarbon derivatives);
    • Chapter 38 (e.g. diagnostic and laboratory reagents;
    • Chapter 63 (e.g. face masks); 
    • Chapter 84 (e.g. air conditioning machines, refrigerators, freezers and other refrigeration appliances, other air conditioners).
  • a new unit relevant to import/export conditions has been added regarding tonnes of CO2 related to products: 
    • Chapter 29 (e.g. halogenated hydrocarbon derivatives);
    • Chapter 38 (e.g. diagnostic and laboratory reagents);
    • Chapter 84 (e.g. air conditioning machines, refrigerators, freezers and other refrigeration appliances, other air conditioners).

The new tariff codes should be used for customs operations, Intrastat declarations and operations with excisable products as of 1 January 2022.

Given the multiple changes to the tariff classifications for a wide range of products, it is advisable to consider the following issues:

• As the Combined Nomenclature (CN) for 2022 differs from the Nomenclature made available by the National Agency for Fiscal Administration for SAF-T reporting, we expect the SAF-T list to be updated accordingly.
• The changes will have VAT implications in areas such as the reduced VAT rate and the application of simplification measures.
• The changes may have implications for environmental legislation.

[Source: Commission Implementing Regulation (EU) 2021/1832 dated 12 October 2021 amending Annex I to Regulation (CEE) No 2658/87 on tariff and statistical nomenclature and on the Common Customs Tariff, as published in the Official Journal of the European Union no. L385 dated 29 October 2021]