Dispute Over the Tariff Classification of a UV LED Unit: BFH Confirms Restrictive Application of the Combined Nomenclature
Facts:
A company applied for a duty-free classification for a specialized LED array used for UV light generation, requesting it to be classified as a "light-emitting diode" (Position 8541 CN). However, the customs authority classified the goods as "electrical device with its own function" (Position 8543 CN) – subject to a 3.7% duty. The reasoning was that the module included a thermistor for temperature monitoring in addition to the LEDs.
Legal Question:
Can such a combined assembly still be classified as a simple LED in customs terms? Or does the subsidiary regulation for electrical devices apply?
Decision of the BFH:
The Federal Fiscal Court (BFH) denied the admission of the appeal and clarified: If a product unambiguously falls under a specific tariff position – in this case, 8543 CN – then the supplementary note 3 to Section XVI CN (combined machines) is no longer applicable. A misclassification by the finance court alone does not justify an appeal. Additionally, legislation that is phasing out no longer carries fundamental significance.
Practical Relevance for Companies:
This decision is of significant importance for manufacturers and importers of technical assemblies – such as those in the medical technology or mechanical engineering sectors. It demonstrates that even minor additional functions (here, a passive thermistor) can change the tariff classification and lead to higher duties.
References:
BFH/NV 2025, 534 (NV); ECLI:DE:BFH:2024:B.211124.VIIB76.23.0