Update EU Combined Nomenclature published

Asset Management 2020

On 31 October 2017, the annual update of the EU Combined Nomenclature (also known as “the Tariff”) was published. This is the Tariff that will be applicable as of January 1st 2018. It is important for traders to evaluate the changes included in the Tariff for 2018 and assess the impact of these changes and where necessary take actions accordingly.

On an annual basis, Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff is updated by the European Commission. This Annex is commonly known as the EU Combined Nomenclature (hereafter: CN) or simply “the Tariff”. Sometimes the update is quit extensive, especially when the Harmonized System is updated by the World Customs Organization – on which the CN is based. This happens every five years and the last big update was last year, for the current 2017 Tariff.

This may be one of the reasons that the updated CN for 2018 does not have many changes compared to its (currently still applicable) predecessor. Still one of the changes can impact your business.

Takeaway
We advise companies to evaluate whether the changes have an impact on the classification of their products. Changes can be as simple as a current commodity code that will no longer exists as of 2018, but it can also be that due to the changes certain products need re-classification based on the description (e.g. due to new codes/descriptions, certain articles can no longer fall in scope of a rest code “other”). It is recommended to evaluate the effects timely, to make sure there are no hiccups in your supply chain as of January 1st 2018 due to classification issues.

If you have any questions regarding the above or require any assistance with verifying what these changes mean for your company, please do not hesitate to contact Claudia Buysing Damsté (+31 (0)88 792 3811) or Suzanne Bras (+31 (0)88 792 4267).

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