Customs Information Paper (11) 78 (PDF 32K) - HM Revenue ...

Hangers imported with the garment
Customs Information Paper (11) 78
Who should read:
What is it about:
When effective:
Extant until/expires:
All importers or exporters of hangers, freight agents
and freight forwarders, who handle such goods.
How to treat hangers that are clearly suitable for
repetitive use when they are presented with a garment.
Immediately
Until further notice
1. Introduction
This Customs Information Paper provides information on the recently published
guidance from the European Commission concerning how to treat hangers that
are clearly suitable for repetitive use when they are presented with a garment.
2. Treatment of hangers
A reproduction of the guidance is included in the annex below.
In addition to the guidance on hangers it also provides clarification as to the
wording of General Interpretative Rule (GIR) 5(b) which details how to treat
packaging materials and packing containers presented with the goods
specifically the wording 'this provision is not binding'.
If you wish to reproduce or publish this guidance for commercial purposes you
must seek permission from the European Commission beforehand. Partial or
total reproduction should acknowledge the source.
3. Contacts
For further information please contact:
Beth Earwicker
Customs Tariff Classification
Excise Customs, Stamps & Money (ECSM)
Alexander House
Southend on Sea
SS99 1AA
Email: beth.earwicker@hmrc.gsi.gov.uk
Issued on the 12 September 2011 by the JCCC Secretary HM Revenue &
Customs (HMRC), Excise, Customs Stamps & Money Directorate.

If you have a question about the content of this paper please use the details
provided in the Contacts section. For general HMRC queries speak to the Excise
& Customs Helpline on Tel 0845 010 9000.
To find out what you can expect from HMRC and what they expect from you go
to Your Charter.

TAXUD/575040/2011 EN
Annex
EUROPEAN COMMISSION
DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
Customs Policy, Legislation, Tariff
HS Convention, combined nomenclature, tariff classification
Bruxelles, le 12 mai 2011
Brussels, 12 May 2011
Brüssel, 12. Mai 2011
LIMITÉ
LIMITED
NUR FÜR DEN DIENSTGEBRAUCH
COMITÉ DU CODE DES DOUANES
SECTION NOMENCLATURE TARIFAIRE ET STATISTIQUE
(«SECTEUR TEXTILE»)
CUSTOMS CODE COMMITTEE
TARIFF AND STATISTICAL NOMENCLATURE SECTION
(“TEXTILES SECTOR”)
AUSSCHUSS FÜR DEN ZOLLKODEX
FACHBEREICH ZOLLTARIFLICHE UND STATISTISCHE NOMENKLATUR
(„TEXTILSEKTOR“)
Objet:
Subject:
Betrifft:
Classement de cintres
Classification of clothes hangers
Einreihung von Kleiderbügeln
À la suite de la discussion tenue au cours de la 43 e réunion du comité, les délégations
trouveront ci-joint une analyse sur l’application de la règle générale 5 b) pour
l’interprétation de la nomenclature combinée dans le contexte du point en objet. Ce
document sera soumis pour discussion lors d’une prochaine réunion du comité.
Further to the discussion during the 43 rd meeting of the Committee, delegates will find
herewith an analysis on the application of General Rule for the interpretation of the
Combined Nomenclature (GIR) 5(b) in the context of the above-mentioned subject.
This document will be discussed during a forthcoming meeting of the Committee.
Im Anschluss an die Erörterungen auf der 43. Sitzung des Ausschusses erhalten die
Delegierten hiermit eine Analyse der Anwendung der Allgemeinen Vorschrift für die
Auslegung der Kombinierten Nomenklatur (AV) 5 b) im Zusammenhang mit der oben
genannten Ware. Das Dokument wird auf einer der nächsten Ausschusssitzungen
erörtert.

EN
1. Background
The interpretation of the wording of GIR 5 (b) and the tariff classification of clothes
hangers that are imported with garments hanging on them, was examined by the Customs
Code Committee, Tariff and Statistical Nomenclature Section (Textile Sector) at its 35 th
and 43 rd meeting, following a submission by the administration of a Member State.
According to GIR 5 (b), "subject to the provisions of rule 5(a), packing materials and
packing containers (1) presented with the goods therein shall be classified with the goods
if they are of a kind normally used for packing such goods. However, this provision is
not binding when such packing materials or packing containers are clearly suitable for
repetitive use." Footnote (1) to this GIR states that "The term 'packing materials' and
'packing containers' mean any external or internal containers, holders, wrappings or
supports other than transport devices (e.g. transport containers), tarpaulins, tackle or
ancillary transport equipment. The term 'packing containers' does not cover the
containers referred to in general rule 5 (a). "
The issue debated concerns the fact whether clothes hangers should be classified
separately or together with the garments. Also, in this context, the main question is
whether clothes hangers could be considered as 'packing materials' within the meaning
of GIR 5(b). If this question is to be answered in the affirmative, two additional
questions arise, namely:
– when the clothes hangers 'are clearly suitable for repetitive use', what is the precise
meaning of the terms 'this provision is not binding' in the last sentence of GIR 5(b);
– how to determine whether clothes hangers are 'clearly suitable for repetitive use'?
2. Analysis
This analysis only concerns the interpretation, as a matter of Union law, of the Combined
Nomenclature and is not therefore aimed at clarifying purely technical issues which
might arise in this context.
2.1 With this in mind, the Commission services are of the opinion that, with regard to
the main question, clothes hangers can be considered as holders or supports within
the meaning of GIR 5(b), as they are not only meant to display the garments; they
also serve to protect the garments during transport or storage and they are designed
to facilitate the hanging of clothes in order to prevent wrinkles.
Consequently, such hangers are in principle to be classified together with the
garments with which they are imported, as packing materials pursuant to GIR 5(b).
2.2 However, according to the last sentence of GIR 5(b), this provision is not binding
in case such hangers are clearly suitable for repetitive use. In previous discussions,
several Member States had expressed the view that the term 'not binding' should
be interpreted as meaning that importers are allowed to pick and choose whether

they want to have the coat hangers, which are suitable for repetitive use, classified
separately or together with the garments.
The Commission services do not share this view, since the phrase at issue does not
contain any reference to a choice and does not indicate whether it would be the
importer or the customs administration who would be allowed to choose.
Moreover, such interpretation would not serve the interests of legal certainty and
ease of verification by customs, and would not ensure uniform application of the
Combined Nomenclature.
In this context, the Commission services are of the opinion that the text 'non
binding' means 'not applicable'. Consequently, the first sentence of GIR 5(b)
according to which clothes hangers would be classified as packing materials
together with the garments, does not apply if it is established that they are clearly
suitable for repetitive use. Thus, such hangers are to be classified separately,
pursuant to the other general interpretation rules and notes to the Combined
Nomenclature.
2.3 With regard to the suitability of the clothes hangers for repetitive use, the
Commission services consider that it should be assessed on the basis of their
objective characteristics. A product is suitable for repetitive use when it is
apparent from the way it is made and from the materials used that it is designed to
have a long usable life. The intended use of the hangers by the operators or by the
final consumers is in principle of no relevance when assessing their suitability for
repetitive use.
As the Court of Justice of the European Union recently held in paragraph 47 of the
judgment of 16 December 2010, in case C-339/09 Skoma Lux 1 , " it should be
noted that, whilst, the intended use of a product may constitute an objective
criterion for classification if it is inherent to the product, and that inherent
character must be capable of being assessed on the basis of the product's objective
characteristics and properties (see Case C-l83/06 RUMA [2007] ECR 1-1559,
paragraph 36, and Roeckl Sporthandschuhe, paragraph 28), the intended use of
the product is a relevant criterion only where the classification cannot be made on
the sole basis of the objective characteristics and properties of the product (see, to
that effect, Case 38/76 Industriemetall WMA [1976] ECK 2027, paragraph 7) ".
Finally, in this context, the Commission services are of the view that the
explanatory note to the Combined Nomenclature (CNEN) to GIR 5(b) is not
applicable to clothes hangers. The explanatory note states that packing containers
normally used for marketing beverages, jam, mustard, spices etc. are to be
classified with the goods they contain even if clearly suitable for repetitive use. As
1
http://curia.europa.eu/jurisp/cgi-
bin/form.pl?lang=en&alljur=alljur&jurcdj=jurcdj&jurtpi=jurtpi&jurtfp=jurtfp&numaff=C-
339/09&nomusuel=&docnodecision=docnodecision&allcommjo=allcommjo&affint=affint&affclose=affclo
se&alldocrec=alldocrec&docdecision=docdecision&docor=docor&docav=docav&docsom=docsom&docinf
=docinf&alldocnorec=alldocnorec&docnoor=docnoor&docppoag=docppoag&radtypeord=on&newform=ne
wform&docj=docj&docop=docop&docnoj=docnoj&typeord=ALL&domaine=&mots=&resmax=100&Sub
mit=Rechercher

the explanatory note refers to packing containers, its scope cannot be enlarged to
include holders or supports, such as clothes hangers.
3. Conclusion
In light of the above, the Commission services conclude that tariff classification of
clothes hangers is to be done following an assessment of their objective characteristics
and properties. While single use hangers are to be considered as packing materials within
the meaning of GIR 5(b) and consequently, classified together with the garments,
hangers which are clearly suitable for repetitive use must be classified pursuant to GIR 1
and 6 and if necessary pursuant to the relevant notes of the Combined Nomenclature and
to the other general rules.