Can the combined nomenclature keep up with all (technical) innovations?

1. Can the combined nomenclature keep up with all (technical) innovations?

An example of a heading that seems outdated is HS heading 8528. This heading pertains to monitors and projectors. To classify under this heading, you must first determine if the monitor has a cathode ray tube (very very antique). Since that is most likely not the case, you have to pick the subdivision for ‘other monitors.’ Then another choice must be made: whether it is “suitable for direct connection to and designed for use with an automatic data processing machine of heading 8471.” If so, classification under 8528 52 is possible, and the customs duty is 0%. In other cases, the customs duty can rise to 14%.

We now need to determine what constitutes an automatic data processing machine under HS heading 8471. Computers are classified under HS heading 8471, but mobile phones, for example, are not. Therefore, a monitor that can be connected to a computer can be classified under 8528 52. But what if a monitor can stream from a mobile phone? Then classification under 8528 52 would no longer be possible? The question is whether this subdivision is still relevant today.

As of 2024, monitors contain many more functionalities than simply being suitable for connection to a computer. The result: a dispute between the importer and customs. After all, there is a significant financial interest at stake, namely a customs duty of 0% or 14%. You may have already had a discussion with Customs about the foregoing. There is a good chance that you have seen a reference to a 2008 regulation. Customs still refer to this regulation, also referred to as ‘Regulation 1156/2008’. The regulation pertains to the following product:

An apparatus for the recording, reproducing and displaying of still and video images, as well as for the recording and reproducing of sound (so-called ‘digital picture frame’), with overall dimensions 33 (W) × 24,1 (H) × 4,1 (D) cm, consisting of the following main components in a single housing:

–          a colour display of the liquid crystal device (LCD) type, with a diagonal measurement of the screen of 25,4 cm (10 inches) and a resolution of 800 × 480 pixels,

–          an internal memory with a storage capacity of 128 MB,

–          memory card slots,

–          built-in loudspeakers,

–          two USB interfaces,

–          control buttons

It supports the following formats:

–          audio: MP3,

–          still image: JPEG, GIF,

–          video: MPEG1, MPEG4, MOV, AVI.

Different types of solid-state non-volatile storage devices can be inserted into the memory card slots. The images may be displayed in single image, slideshow or thumbnails mode.

This product is, of course, often already outdated in today’s times. Nevertheless, Customs still refer to this regulation. The question is how long Customs can continue to adhere to such an old regulation. It is clear that the aforementioned innovations follow each other more quickly than the Combined Nomenclature changes. One thing is certain: the classification of a product under the subdivisions of HS heading 8528 is rather outdated.

It remains difficult — especially since that 2008 regulation has still not been withdrawn — to convince Customs that classification should be done differently. Do you have more subdivisions that you think are outdated? Let us know, and we may escalate it to Customs.

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