COFFEE, TEA, MATÉ AND SPICES

Chapter 09 of the EU Customs Tariff covers coffee, tea, mate and spices. Coffee is classified both in raw form (green, unroasted) and roasted (in beans and ground), as well as coffee husks and skins and coffee substitutes containing coffee. Tea includes black tea (fermented) and green tea (unfermented), in direct packaging of up to 3 kg and above. Mate is a beverage popular in South America, classified under a separate heading. Spices constitute a very broad category including: black and white pepper, capsicum peppers, vanilla, cinnamon, cloves, nutmeg, cardamom, anise, fennel, coriander, cumin, ginger, saffron, turmeric, thyme, bay leaves and many others. Spices may be whole, cut, ground or in powder form. The import of coffee and tea into the EU is of particular commercial significance — Europe is the world's largest importer of coffee. These products are subject to standard food safety controls, including testing for mycotoxins (aflatoxins, ochratoxin), pesticide residues and heavy metals. Spice mixtures containing other ingredients (salt, flour) may be classified in Chapter 21. Instant coffee and coffee extracts belong to heading 2101, not to Chapter 09.

Customs duty rates on coffee and tea are relatively low. Raw (green) coffee is exempt from duty (0%), reflecting the fact that the EU does not produce coffee. Roasted coffee is subject to a 7.5% rate, and decaffeinated roasted coffee to 9%. Tea (both green and black) in packaging above 3 kg has a 0% rate, while in smaller retail packaging — 3.2%. Spices have varied rates: pepper 0-4%, cinnamon 0%, vanilla 6%, saffron 0%, cloves 8%, nutmeg 0%, ginger 0-3%. Many producer countries benefit from preferences under the GSP or trade agreements, which means effectively zero duty rates on most products of this chapter.

Classification in Chapter 09 requires the precise determination of the product's degree of processing. Raw and roasted coffee have different CN codes, and decaffeinated coffee has separate subheadings. It is essential to distinguish between roasted coffee (Chapter 09) and instant coffee or coffee extracts (heading 2101). Coffee blends with other ingredients (e.g. sugar, milk) are classified in Chapter 21. Ground and unground spices have different subheadings. Spice mixtures may only be classified in Chapter 09 if they contain exclusively spices — the addition of salt or flour places them in Chapter 21. Hot peppers (chili) are classified in Chapter 09, while sweet peppers fall under Chapter 07.