Scary: EU makes certain coffins 4% more expensive, 3 D Printers 1.7% cheaper to import. Opportunity?
The EU has amended its customs tariff to reduce the customs duty on 3D printers but increased the duty on coffins by 4%. We explain it all
As you know, the EU uses combined goods nomenclature (the "CN") to serve the Common Customs Tariff, the Union's external trade statistics, and other policies about bringing goods into or out of the Union.
One tariff to serve them all.
You also know that the CN is based on the names used in the Harmonized System (HS) of the World Customs Organization. The most recent version of the CN is in Commission Implementing Regulation (EU) 2021/1832, "the 2022 CN".
Coffins of fibreboard become 4% more expensive
In the 2022 HS, "coffins" were given their own subheading, 4421 20 00.
In the 2021 CN, "coffins of fiberboard" were listed under CN code 4421 99 10 with a customs duty rate of 4%, while "coffins of other materials" were listed under CN code 4421 99 91 with a customs duty rate of "Free."
With the changes to the 2022 HS, "coffins made of fiberboard" were moved from the 2022 CN to the new code 4421 20 00, which has a customs duty rate of "Free."
To keep the 4% duty in 2022 as in the 2021 CN, the 2022 CN needs to be changed to take into account the changes to the 2022 HS and to create a separate section for "coffins made of fiberboard."
3 D Printers under 8485 become 1.7% cheaper!
In the 2022 HS, "Machines for additive manufacturing," also known as "3D printers," were given their own heading 8485.
This heading was further divided into different categories based on the materials deposited, such as "by metal deposit," , "by plaster, cement, ceramics, or glass deposit," etc:
In order to make heading 8485, these machines had to be moved from different subheadings of the 2021 CN to heading 8485 and given the same tariff treatment as they had in the 2021 CN.
In the 2021 CN, "machines for additive manufacturing by sand, concrete, or other mineral deposit" were listed under subheading 8474 80 90 "Other" with a customs duty rate of "Free."
After changes to the 2022 HS, these goods are now listed in the 2022 CN under the new subheading 8485 80 00, which has a 1.7% customs duty rate.
To keep "machines for additive manufacturing with additives of sand, concrete, or other mineral products" duty free as in 2021, the 2022 CN needs to be changed to include a separate duty-free subdivision.
Also, parts of these machines should be treated the same way in 2022 CN as they were in 2021 CN.
So, the description of CN code 8485 90 10 should be changed to include parts of "machines for additive manufacturing by sand, concrete, or other mineral products."
Now, for you to do…
You need to understand the changes and how they will affect your business. You also need to see how these changes can be used to your advantage, and if there are any other options available that could work even better for you.
Duty Reclaim Opportunity
To make sure that 3D printers and their parts get the same tariff treatment in 2022 as they did in 2021, the changes should take effect on January 1, 2022. So, if you imported them in 2022, and you paid the full duty, there is a duty reclaim opportunity. Contact us for details.
These changes will affect your business.
If you're importing or exporting coffins or 3 D printers, these changes will impact your business. You need to be aware of the changes and prepared to make changes to your business if necessary. You should also ensure that you are complying with the new rules and are not breaking the law.
Conclusion
Remember, these changes may impact your business. If you’re unsure about which tariff applies to your goods, contact us. We can help you find the commodity code, and we can tell you how much duty you need to pay on your imports.