Introduction
In the world of customs law, complex cases often present challenges for businesses. One such case, recently adjudicated by the Federal Finance Court (BFH), offers valuable insights into the nuances of tariff classification for goods assemblies. This article examines the case of a capsule system for mixing silver amalgam dental fillings and its implications for companies in the dental and pharmaceutical industries.
The Facts: A Capsule System Under Scrutiny
A company applied for a binding customs tariff information (vZTA) for a capsule system consisting of two components: alloy powder and liquid mercury. These components are housed in separate, non-separable chambers and are intended for mixing silver amalgam dental fillings. The company favored classification under subheading 3006 40 00 of the Combined Nomenclature (CN) for dental cements and other dental filling materials. However, the main customs office (HZA) decided in favor of subheading 2843 90 10 CN for amalgams.
The Legal Assessment: Focus on Note 3 to Section VI CN
The BFH referred the question to the Court of Justice of the European Union (CJEU) on whether the term goods assembly in Note 3 to Section VI CN (Article 267 of the Treaty on the Functioning of the European Union) encompasses capsule systems like the one described. This note stipulates that goods assemblies consisting of two or more separate components that are clearly intended to produce a product of Section VI or VII through mixing must be assigned to the corresponding position for that product (ECLI:DE:BFH:2024:VE.121124.VIIR27.22.0).
Implications for the Industry: Clarity on Goods Assemblies
The outcome of this preliminary question has significant implications for the dental and pharmaceutical industries, particularly regarding the classification of goods assemblies. Companies should carefully review their products for classification to ensure compliance with regulations. The precise interpretation of Note 3 to Section VI CN by the CJEU will clarify whether capsule systems like the one in dispute are considered goods assemblies under this regulation.
Reference: BFH, VII R 27/22, ECLI:DE:BFH:2024:VE.121124.VIIR27.22.0