European Union's Amendments Effective from January 2024

The European Union has released critical updates to its Combined Nomenclature (CN) on October 31, 2023, set to take effect from January 1, 2024. These alterations encompass several notable modifications across various chapters and headings, influencing specific products and their classifications within the CN.

Changes in Combined Nomenclature Codes

• Chapter 8 (Fruit): Introduction of a new tariff subheading for a variety of bananas under CN 0803 90 11.
• Chapter 20 (Vegetables): Introduction of new tariff subheadings for peeled tomatoes (CN 2002 10 11 and CN 2002 10 19) and other tomatoes (CN 2002 90 41, CN 2002 90 49, and CN 2002 90 80).
• Chapter 39 (Plastic Products): Changes impacting tariff heading 3915, including deletion of subheadings and introduction of new ones, particularly for waste, pairings, and scrap made of polymers of ethylene (CN 3915 10 10 and CN 3915 10 20) to replace earlier subheadings.

Additional updates

• Alterations in Combined Nomenclature Codes for woven fabrics of silk or silk waste (tariff heading 5007)
• Non-wovens of man-made filaments (tariff heading 5603), and glass fibers and related articles (tariff heading 7019)
• Addition of new CN-codes for passive optical splitters and other devices, appliances, and instruments (heading 9013)
• Replacement of subheading CN 9401 99 90 to introduce separate CN-codes for parts of seats used in motor vehicles, complying with the European Court of Justice.

Significant Amendments Other Than Combined Nomenclature Updates

There are some other notable amendments which include:

• Gradual reduction of duty rates for products covered by the Declaration on the Expansion of Trade in Information Technology Products.
• Amendments in the classification of certain substances in the list of non-proprietary names of pharmaceutical substances in Annex 3 of Part Three (Tariff Annexes) of the CN.

Changes in EU Emissions Trading System 2024

EU's Emissions Trading System (ETS), pivotal for curbing greenhouse gas emissions, underwent significant transformations in 2024.

Expansion to Include Maritime Transport EU ETS began covering emissions from maritime transport, targeting 50% of emissions from voyages starting or ending outside the EU and 100% of emissions from voyages between EU ports or within EU ports.

Inclusion of Waste Incineration Facilities Waste incineration facilities surpassing specific thresholds were mandated to monitor and report emissions under the EU ETS.

These changes signify the European Union's impactful initiatives in both trade and environmental policies, marking their implementation from January 1, 2024. These updates illustrate the EU's commitment to refining regulatory frameworks to align with evolving global trade dynamics and environmental imperatives.