Combined Nomenclature

Combined Nomenclature
Name	Combined Nomenclature
Type	tariff nomenclature
Jurisdiction	European Union
Established	1988
Related	Harmonized System, Tariff schedule, Customs union (European Union)

Combined Nomenclature is the European Union's systematic coding scheme for goods used for tariff, statistical and customs purposes. It integrates international classification conventions with Union-specific subheadings to determine duties, trade policy measures and external trade statistics. The nomenclature functions at the intersection of European Commission, World Customs Organization, European Parliament, Council of the European Union and national customs administrations such as HM Revenue and Customs, Direction générale des douanes et droits indirects, and Austrian Customs Administration.

Overview and Purpose

The Combined Nomenclature provides a uniform list of commodity codes that feed into TARIC measures, Common Customs Tariff, Generalised System of Preferences, World Trade Organization reporting and Eurostat statistics. It is used by traders, carriers, customs brokers and authorities including International Chamber of Commerce, European Central Bank, European Investment Bank and national ministries to apply Union Customs Code provisions, determine Most-favoured-nation rates, and compile balance of payments data for institutions like the International Monetary Fund and Organisation for Economic Co-operation and Development. The CN underpins administrative processes aligned with decisions from bodies such as the European Court of Justice, DG TAXUD, and ad hoc committees convened by the Council of the European Union.

Legal Basis and Structure

The legal basis of the Combined Nomenclature is found in Union regulations adopted by the European Parliament and the Council of the European Union, executed by the European Commission and interpreted by the Court of Justice of the European Union. Its structure follows chapters and headings that correspond to the Harmonized System nomenclature established by the World Customs Organization in the Harmonized Commodity Description and Coding System; the CN adds EU-specific eight-digit codes and subheadings. The framework interfaces with instruments such as the Union Customs Code, annual CN regulations promulgated by the European Commission, and implementing acts endorsed by the European Council.

Classification Rules and Headings

Classification within the CN adheres to legal notes, section and chapter notes that mirror the international Harmonized System principles promulgated by the World Customs Organization, while allowing EU-specific explanatory notes and subdivisions. Headings and subheadings are analogous to those used in global trade classifications used by United Nations Conference on Trade and Development, World Trade Organization, United Nations Economic Commission for Europe, and national tariff schedules like the Harmonized Tariff Schedule of the United States. Classification relies on precedents from decisions issued by the Court of Justice of the European Union and rulings by national customs authorities such as Bundeszollverwaltung and case law from tribunals in Belgium, France, Germany, and Spain.

Tariff Measures and Statistical Uses

The CN determines tariff measures including ad valorem duties, anti-dumping and countervailing duties promulgated after investigations by agencies like the DG TRADE and adjudicated in proceedings involving parties such as European Association of Automotive Suppliers or state actors such as People's Republic of China exporters. It is central to compiling external trade statistics reported to Eurostat and aggregated in databases used by Organisation for Economic Co-operation and Development, International Monetary Fund, United Nations Conference on Trade and Development, and multinational enterprises like Siemens, Volkswagen, Unilever and Nestlé. Tariff quotas, preferential arrangements under treaties like the Cotonou Agreement, and safeguard measures recorded under World Trade Organization notifications are implemented via CN codes.

Administration and Updates

Administration of the Combined Nomenclature is coordinated by DG TAXUD with input from customs committees composed of representatives from member states including delegations from France, Germany, Italy, Poland, Netherlands and others. The CN is updated annually through regulations adopted by the European Commission and may be adjusted in response to World Customs Organization Harmonized System amendments, Council negotiations, or rulings by the Court of Justice of the European Union. National administrations such as HM Revenue and Customs, Spanish Tax Agency, and Belgian Customs and Excise Authority issue binding tariff information and classification rulings consistent with CN updates.

International Relations and Harmonized System Integration

The Combined Nomenclature is designed to be fully compatible with the international Harmonized System maintained by the World Customs Organization, facilitating bilateral and multilateral trade between the European Union, United States, China, Japan, Brazil, India and regional blocs like African Union partners. Harmonization supports implementation of World Trade Organization commitments, exchange of tariff and trade data among institutions such as World Customs Organization, United Nations, and Eurostat, and coordination in dispute settlement with parties including United States Trade Representative and member state trade ministries. Cooperation also occurs through technical assistance programs involving European Bank for Reconstruction and Development, International Labour Organization initiatives on supply chains, and customs modernization projects financed by European Investment Bank.

Category:European Union law Category:Customs