Delivered disassembled – classified as a whole: Customs classification of complex systems according to General Rule 2a of the Harmonized System

For many companies, the correct customs tariff treatment of complex machinery or industrial plants that are delivered dismantled is of central importance. The legal framework is derived from the General Rule 2a for the Interpretation of the Harmonized System.

It stipulates that incomplete or unassembled goods must be classified in the same heading as the complete goods – provided the parts are presented together, are intended to form a functional whole, and essentially match the character of the finished goods.

A recent ruling by the ECJ (C-107/22, X BV) confirms this view and specifies the objective criteria: Even if the goods are declared in several customs declarations and even for different, but affiliated companies, they can be considered as a single item upon simultaneous presentation and demonstrated purpose of completion. It is crucial that the customs authorities can recognize that it is a coherent consignment.

The Court emphasizes that the customs classification should not be hindered by formal factors such as separate declarations or different customs procedures, as long as objective characteristics – such as being jointly packed in a container, uniform delivery, identical declarant, and clear intent to assemble – prove that the parts together constitute a complete product. Even if part of the consignment is directly declared for free circulation and another part is under the external transit procedure, it can be considered as a unified good under GRI 2a, as long as the coherence is demonstrated.

How are the components of a cable car classified?

A practical example from my previous work as a customs consultant underscores the relevance: When delivering a cable car, the entire installation had to be spread over several containers due to its dimensions.

Although the components vary greatly – from the motor to the cabins to the supports – the entire delivery was classified under the customs tariff number 84286000 (“cable cars, ski lifts, and chairlifts”). This approach was not only sensible from a logistical perspective but also legally correct. In the sense of GRI 2a, it is a functional unit despite the physical separation.

The ruling C-107/22 provides important clarification for such cases: The customs tariff consideration must be based on the objective economic context, not on formal differences in presentation or declaration. If viewed otherwise, importers could influence the tariff classification through purely organizational measures – such as separate declarations or shipping procedures. This is precisely what the uniform application of GRI 2a is intended to prevent.

The Additional Note 3 to Section XVI similarly points out:

At the request of the declarant and in compliance with the conditions set by the competent authorities, the provisions of General Rule 2 letter a) also apply to machines imported or exported in split consignments.

Also critical for determining (non-)preferential origin

This uniform customs classification is not only decisive for customs clearance but also plays a crucial role in determining (preferential) origin. In free trade agreements, the focus is generally on the finished product as a whole.

Only if all components can be classified under the same heading (here 8428) can the origin calculation be cleanly conducted using a consolidated bill of materials (BOM). Individual partial deliveries with differing tariff numbers would lead to inconsistencies and could, in doubt, jeopardize the claiming of customs preferences.

The classification of dismantled delivered machines, therefore, requires not only profound customs expertise but also close coordination with logistics and sales. Only those who understand the overall context and document it transparently in advance can process securely and efficiently – both in terms of customs law and rules of origin.