NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL APPLIANCES; PARTS THEREOF

Chapter 84 of the Combined Nomenclature is one of the two largest chapters of the customs tariff in terms of international trade volume (alongside Chapter 85). It covers an extremely wide range of machinery and mechanical appliances. Its scope includes, among others: nuclear reactors and parts thereof (8401), steam and water boilers (8402-8404), steam and gas turbines (8406, 8411), spark-ignition and compression-ignition piston engines (8407-8408), pumps and compressors (8413-8414), air conditioning and refrigerating equipment (8415-8418), dishwashers, washing machines and dryers (8422, 8450-8451), construction and mining machinery (8429-8430), agricultural machinery (8432-8437), metalworking machine tools (8456-8463), printing machinery (8440-8443), food processing machinery (8434-8438), sewing machines (8452), computers and data processing equipment (8471), and numerous other industrial devices. Chapter 84 comprises over 800 eight-digit CN codes. Due to the diversity of goods, their classification requires specialist technical knowledge. The value of imports of goods under this chapter into the EU reaches hundreds of billions of euros annually, making it crucial for European foreign trade.

Customs duty rates on machinery and mechanical appliances in Chapter 84 range from 0% to 9.7%. Many industrial machines, especially those without equivalents manufactured in the EU, benefit from a zero rate. Computers and data processing equipment (8471) are subject to a 0% rate under the Information Technology Agreement (ITA). Construction machinery is subject to rates of 0-6%. Internal combustion engines have rates of 2-4%. Household appliances such as washing machines and dishwashers are subject to higher rates of around 2-3.7%. Parts for machinery generally have lower rates than complete equipment.

Classification in Chapter 84 is one of the most difficult in the entire customs tariff due to the enormous number of headings and their interrelationships. The key principle is that machines are classified according to their principal function. Multifunctional machines are classified according to the dominant function or in the residual heading. Parts and accessories of machines are classified in accordance with Notes 2 to Section XVI. It is important to distinguish between parts of general use (Section XV) and specialist parts (Chapter 84). Electrical equipment falls under Chapter 85, not Chapter 84.