Changes in the Combined Nomenclature for the Common Customs Tariff

16 January 2012

In this newsletter we inform you of potential effects that may arise from the changes in the Combined Nomenclature for the Common Customs Tariff in force since 1 January 2012

Legislative framework

The changes in the Combined Nomenclature in force from 1 January 2012 were adopted with Commission Regulation (EU) No 1006/2011 of 27 September 2011 which amended Annex 1 to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff*.

Since the Regulation is binding in its entirety and directly applicable in all Member States without the need for further promulgation in the Bulgarian State Gazette, businesses must comply with the changes.

Implications

The changes in the Combined Nomenclature involve addition, alteration or removal of certain tariff codes. A relatively large number of tariff positions were amended. Thus, it is important to verify how the new tariff codes correspond to the ones applicable to 31 December, 2011.

The new codes in the tariff and statistical nomenclature have to be used when declaring goods for customs purposes and for Intrastat purposes.

Furthermore, there are changes in the tariff codes used for identifying excise goods under the Excise Duties and Tax Warehouses Act (EDTWA) such as tobacco and energy products falling within Chapters 24 and 27 of the Combined Nomenclature. Changes in the tariff codes of excise goods may have a direct impact on the compliance obligations of tax liable persons under the EDTWA.

The correct nomenclature of the excise products should be reflected in excise returns and documents filed under the EDTWA for periods after 1 January 2012, as well as in applications for certificates of excise-exempt end-users (EEEU).

EEEU certificates issued under the codes of the amended Nomenclature may be affected as well. If your company has been certified as an excise-exempt end-user for a product with an amended tariff code from 1 January 2012, then as a tax liable person under the EDTWA you have the obligation to apply for a new certificate. The application is to be filed under Art. 17, para. 2 of the Regulation for Implementation of the EDTWA on the basis that the new relevant tariff code represents a change in the circumstances that needs to be indicated in the EEEU certificate.

It is possible that the changes in the Combined Nomenclature will have impact on other aspects of your business, hence we recommend communicating the information throughout your organization.

KPMG Bulgaria will be pleased to assist in practice or by answering queries regarding changes in the Combined Nomenclature.

* Published in the Official Journal of the EU, Bulgarian edition, L282 of 28.10.2011.

For further information

Kalin Hadjidimov
Partner, Tax & Legal
Tel.: + 359 (2) 9697 700
Fax: + 359 (2) 9697 878
khadjidimov@kpmg.com

Arkadiusz Mierzejewski
Partner, Tax
Tel.: + 359 (2) 9697 700
Fax: + 359 (2) 9697 878
arekmierzejewski@kpmg.com

Ivan Vargoulev
Director, Indirect Taxes
Tel.: + 359 (2) 9697 700
Fax: + 359 (2) 9697 878
ivargoulev@kpmg.com