Judgment summary
This is a request for a preliminary ruling made by a Belgian court and transferred to the General Court. It concerns the interpretation of CN headings 8427 and 8428 and the validity of Commission Implementing Regulation (EU) 2022/1610 (paragraph 1).
The dispute in the main proceedings is between JLG EMEA BV and the Belgische Staat concerning the tariff classification of scissor lifts, articulated boom lifts, telescopic boom lifts and mobile vertical boom lifts (paragraph 2).
The General Court held that such self-propelled machines, fitted with an electric motor and a lifting device with a working platform mounted on a boom and a safety railing, intended exclusively for lifting goods and persons and not suitable for carrying them even over short distances given their very limited propulsion capacity, fall under CN heading 8427 (paragraph 53, operative part 1).
The Court also held that examination of the questions referred disclosed no factor affecting the validity of Implementing Regulation 2022/1610 (paragraph 61, operative part 2).
Background
Between the financial year 2000 and 20 October 2023, JLG EMEA submitted customs declarations for scissor lifts, articulated boom lifts, telescopic boom lifts and mobile vertical boom lifts. The Belgian customs authorities issued binding tariff information decisions (BTIDs) classifying these goods under CN subheading 8428 90 90, with a customs duty rate of 0%, pursuant to Regulation No 738/2000 and General Rules 1 and 6 for the interpretation of the CN (paragraph 26).
In September 2021, the HS Committee of the WCO adopted Classification Opinion 8427.10/1, classifying a 'self-propelled articulated boom lift' under HS subheading 8427 10 (paragraphs 9, 27). Following this, the Commission adopted Implementing Regulation 2022/1610, which deleted the entry for a comparable vehicle (point 5 of the annex to Regulation No 738/2000, together with illustration C) which had previously been classified under CN subheading 8428 90 98 (paragraphs 19 to 25, 27).
As a result, the BTIDs on the basis of which JLG EMEA had imported the goods at issue were revoked on 3 February 2023 (paragraph 28). JLG EMEA's administrative appeals against the revocation decisions were declared inadmissible on 29 February, 4 March and 5 March 2024, on the ground that the revocation decisions had been signed by an Adviser rather than an Adviser-General, as Belgian law requires for such appeals to be admissible (paragraph 29).
On 29 May 2024, JLG EMEA brought an action before the referring court challenging the decisions declaring its administrative appeals inadmissible (paragraph 30).
Core dispute
The referring court entertained doubts as to the correct classification of the goods at issue. The Belgian State considered that the possible use of an appliance for transport purposes was not a relevant criterion for determining whether it should be classified under CN heading 8427 or CN heading 8428 (paragraph 31).
The referring court also observed that the characteristics of the 'self-propelled articulated boom lift' described in Classification Opinion 8427.10/1 did not correspond to those of a 'truck' as defined in the HS Explanatory Notes on heading 8709, and questioned whether the statement of reasons for Implementing Regulation 2022/1610 was contrary to the wording of CN headings 8425, 8426 and 8427, which concern products intended for the transport of goods over short distances, as opposed to CN heading 8428, which concerns products designed principally for lifting (paragraph 31).
Three questions were referred: first, whether non-truck-mounted lifts as described in point 5 of the annex to Regulation No 738/2000 fall under CN heading 8427 or 8428; second, whether Implementing Regulation 2022/1610, or at least its recitals, should be declared invalid; and third, whether the specific goods at issue (with limited, incidental propulsion, no gearbox, and no authorisation for use on public roads) fall under CN heading 8427 or 8428 (paragraph 32).
Court findings
The Court noted that CN heading 8428 is a residual heading, applicable only when a product cannot be classified under CN headings 8425 to 8427, as confirmed by the HS Explanatory Notes on heading 8428 (paragraphs 39, 40).
Examining CN heading 8427, the Court observed differences between language versions of the term 'works trucks fitted with lifting or handling equipment' and held that this concept could not be reduced to different types of trucks equipped with a lifting device, but covers appliances consisting of a wheeled base unit equipped with a lifting device (paragraphs 43 to 47).
The Court distinguished 'works trucks' under CN heading 8427 from 'works trucks' under CN heading 8709, noting that heading 8709 attaches decisive importance to the transport function and expressly excludes vehicles fitted with a lifting device, whereas heading 8427 covers works trucks fitted with such a device (paragraphs 48, 49).
The Court held that CN heading 8427 is not limited to appliances with two independent lifting and transport functions, but also covers appliances for which the movement function is ancillary and subordinate to the principal lifting function, such as trucks with mechanically elevating platforms intended for works at height. This interpretation was supported by Classification Opinion 8427.10/1 (paragraphs 50, 51).
On the validity of Implementing Regulation 2022/1610, the Court recalled that the Commission has broad discretion to define the subject matter of tariff headings but may not alter the subject matter or scope of headings established on the basis of the HS (paragraph 55). The Court found that the product in Classification Opinion 8427.10/1 had objective characteristics similar to those of the article described in point 5 of the annex to Regulation No 738/2000, both being self-propelled appliances with an electric motor, a lifting device and a work platform, of limited movement speed, intended to accommodate persons for works at height, with almost identical illustrations (paragraph 58).
The Court concluded that the statement of reasons for Implementing Regulation 2022/1610 was consistent with the correct interpretation of CN heading 8427, and that the Commission, by deleting point 5 of the annex to Regulation No 738/2000, did not modify the content or scope of CN heading 8427 and therefore did not exceed its powers (paragraphs 59, 60).
Outcome
The General Court ruled that the Combined Nomenclature must be interpreted as meaning that a self-propelled machine fitted with an electric motor and equipped with a lifting device which has a platform mounted on the boom with a safety railing, intended exclusively for lifting goods and persons and not suitable for carrying them, even over short distances, on account of its very limited propulsion capacity, falls under CN heading 8427 (operative part 1).
The Court further ruled that examination of the questions referred disclosed no factor of such a nature as to affect the validity of Implementing Regulation (EU) 2022/1610 (operative part 2).
As the proceedings were, for the parties, a step in the action pending before the referring court, the decision on costs was left to that court (paragraph 62).
Major issues / areas of contention
- Whether scissor lifts, articulated boom lifts, telescopic boom lifts and mobile vertical boom lifts fall under CN heading 8427 (works trucks fitted with lifting or handling equipment) or CN heading 8428 (other lifting, handling, loading or unloading machinery)
- Whether the capacity or intention to transport goods or persons is a decisive criterion for classification under CN heading 8427
- Whether the residual character of CN heading 8428 means it can only apply where classification under headings 8425 to 8427 is excluded
- Whether Classification Opinion 8427.10/1 of the WCO's HS Committee is consistent with the wording and scope of CN heading 8427
- Whether Implementing Regulation (EU) 2022/1610, deleting point 5 of the annex to Regulation No 738/2000, altered the subject matter or scope of CN heading 8427 and thereby exceeded the Commission's powers