No C 109/30 Official  Journal  of the European  Communities 19. 9. 74 
Having  regard  to the  oral  report  presented  by the 
Rapporteur,  Mr Zijlstra  ; 
Having  regard  to the  discussion  at its  Plenary 
Session  of 29 and  30 May  (meeting  of 29 May)  ; 
Whereas  it is desirable  to harmonize  the conditions 
of Community  financing  of expenditure  incurred  in 
respect  of the  supply  of agricultural  products  as 
food  aid ; 
Whereas  it is necessary  to obtain  a clearer  picture 
of the  actual  cost  of food  aid and  of expenditure 
relating  to the common  agricultural  policy  ; 
Whereas  the  proposal  for  a Council  Regulation 
does  not  involve  additional  expenditure  but  merely 
reapportions  expenditure, 
HAS  ADOPTED  THE  FOLLOWING  OPINION  : 
1. The  Economic  and  Social  Committee  approves 
the proposal  for  a Council  Regulation  harmonizing 
in the  different  sectors  the  conditions  of Commu-
nity financing  of expenditure  involved  in  the 
supply  of agricultural  products  as food  aid. 
2. The  Committee  agrees  that  the  relevant  rules 
should  be altered  so that  expenditure  in respect  of refunds  on exports  to third  countries  is charged 
against  the Guarantee  Section  of the EAGGF  and  the 
remainder  of the  expenditure  in respect  of the 
supplies  in question  is charged  against  Chapter  9> 
'Food  aid  expenditure'  of  the  Budget  of the 
European  Communities. 
3. The  Committee  considers  that  this  reappor-
tionment  will  make  it possible  to obtain  a clear 
idea of the  common  policy  for  the  agricultural 
products  concerned  (dairy  products,  sugar  and  egg 
products)  and  of the cost  of the food  aid policy. 
4. Furthermore,  the  Committee  agrees  that  it is 
desirable  to institute  a system  of advance  payments 
for expenditure  coming  under  Chapter  9 of the 
Budget  of the  European  Communities  based  on the 
system  established  for the EAGGF. 
5. The  Committee  wishes  to stress  the  impor-
tance  it attaches  to the  Community  policy  of 
supplying  agricultural  products  as food  aid ; in this 
connection  it calls  upon  the Council  to consult  it on 
future  action  in this  sphere. 
Done  at Brussels,  29 May  1974. 
The Chairman 
of the 
Economic  and  Social  Committee 
Alfons  LAPPAS 
OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
on the  proposal  for  a Council  Directive  on the  harmonization  of excise  duties  on 
mineral  oils 
The text  referred  to the Committee  has  been  published  in the Official  Journal  of the 
European  Communities  No  C 92 of 31 October  1973,  page  36. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 254th  meeting,  held  on 20 September  1974,  the Council  referred  the  above-
mentioned  proposal  for  a Directive  to the  Economic  and  Social  Committee  on an 
optional  basis. 
The request  for  an Opinion  was  sent  by the  Council  to the  Economic  and  Social 
Committee  on 24 September  1973. 
19. 9. 74 Official  Journal  of the European  Communities No C 109/31 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the  above  matter  at its 
J 20th  Plenary  Session,  held  in Brussels  on 29 and  30 May  1974. 
The full  text  of the Opinion  is as follows  : 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Treaty  establishing  the  Euro-
pean  Economic  Community,  and  in particular  Arti-
cles 99 and  198  thereof  ; 
Having  regard  to the  letter  dated  24  September 
1973,  in which  the  President  of the  Council  of the 
European  Communities  requested  the  Economic  and 
Social  Committee  to  deliver  an  Opinion  on 
the Proposal  for  a Council  Directive  on the  harmon-
ization  of excise  duties  on mineral  oils  ; 
Having  regard  to its rules  of Procedure,  and  in parti-
cular  Article  22 thereof; 
Having  regard  to the  Decision  taken  by the  Bureau 
on 26 September  1973,  entrusting  the  Section  for 
Economic  and  Financial  Questions  in  the  first 
instance,  and  the  Section  for  Energy  and  Nuclear 
Questions  on a supplementary  basis,  with  the prepar-
ation  of an Opinion  and  a report  on the matter  ; 
Having  regard  to the  Opinion  delivered  by  the 
Section  for  Economic  and  Financial  Questions  at its 
meeting  on 19 March  1974  ; 
Having  regard  to the  supplementary  Opinion  of the 
Section  for Energy  and  Nuclear  Questions  ; 
Having  regard  to the  report  presented  by  the 
Rapporteur,  Mr De Bievre  ; 
Having  regard  to discussions  at the  120th  Plenary 
Session  of 29  and  30  May  1974  (session  of 29 
May)  ; 
Whereas  the resolution  of the  Council  and  of the 
representatives  of the  Governments,  of the  Member 
States  of 22 March  1971  concerning  the  realization 
of economic  and  monetary  union  by stages  provides 
for the  harmonization  of the  scope,  basis  of assess-
ment  and  methods  of collection  of excise  duties, 
especially  of those  excise  duties  which  exert  an 
appreciable  influence  on trade  ; 
Whereas  this  proposal  for  a Directive  can  contri-
bute  to the  gradual  realization  of these  objectives, 
HAS  ADOPTED  THE  FOLLOWING  OPINION  : 
The Economic  and  Social  Committee  approves  the 
proposal  for  a Directive  subject  to the  following 
comments  : 1. GENERAL  COMMENTS 
1.1. The  Committee  considers  that  the  proposal 
for a Directive  constitutes  a useful  but  limited  step 
in the  Community's  policy  of tax  harmonization.  It 
is on this  basis  that  the  Committee  has  conducted 
its work  and  formulated  the  general  and  specific 
comments  set out in this  document. 
1.2. The  Committee  approves  the  Commission's 
objectives  in principle,  though  it regrets  that  only 
slow  and  fragmentary  progress  has  been  made  to 
date  in the  field  of tax  harmonization,  which  is 
nevertheless  one  of the  essential  elements  in the 
gradual  achievement  of economic  and  monetary 
union. 
1.3. While  the  Committee  realizes  that,  as with 
VAT,  the structures  of excise  duties  must  be harmon-
ized before  their  rates  are,  it does  not  want  the 
freedom  which  the  Member  States  will  continue  to 
have  in fixing  the  rates  of duty  (Article  11)  to lead 
to an increase  in the differences  between  these  rates, 
since  this  would  make  subsequent  harmonization 
even  more  difficult. 
1.4. As  regards  the  provisions  of the  Directive 
which  deal  with  the  protection  of the  environment 
and in particular  Article  9 (2) (d) and  Article  18 (3), 
the Committee  is of the  Opinion  that  the  financing 
of measures  for  the  protection  of the  environment 
should  be the  subject  of general  regulations  and 
must  not  be dealt  with  in a proposal  for  a Directive 
of a purely  fiscal  nature. 
1.5. The  Committee  thinks  that  the  protection  of 
the environment  is basically  a matter  for  govern-
ment  laws  and  regulations  ; these  measures  should, 
of course,  be coupled  with  sanctions  and  coordi-
nated  at European  level  so as to oblige  undertakings 
to make  investments  for  the  protection  of the  envi-
ronment,  without  introducing  distortions-as  between 
one undertaking  and  another. 
1.6. This  coordination  at  European  level  — 
whose  scope  and  character  would  have  to  be 
defined  in detail  —  is all  the  more  necessary 
because  too  much  freedom  of  action  for  the 
Member  States  in this  area  would  produce  distor-
tions  owing  to the  fact  that  conditions  in the 
mineral  oils  sector  would  then  differ  from  country 
to country.  This  applies  in particular  to costs  and 
obligations  in the field  of environmental  protection. 
No C 109/32 Official  Journal  of the European  Communities 19. 9. 74 
1.7. The  Committee  considers  that  taxation  and 
measures  having  equivalent  effect  are not  the most 
suitable  way  of combating  pollution  or improving 
the environment.  It is therefore  of the opinion  that 
the measures  envisaged  in Article  9 (2) (d) (possi-
bility  of excluding  certain  types  of oils  from  tax 
exemption  by virtue  of Community  provisions  for 
the protection  of the  environment)  and  Article  18 
(3) (authorization  for  Member  States  to introduce 
special  taxes  on certain  mineral  oils  for the protec-
tion of the environment)  are not satisfactory. 
1.8. This  negative  appraisal  having  been  made, 
there  remains  the question  whether  use  of the tax 
instrument  by the Community  in its environmental 
policy  should  be generally  ruled  out  once  and  for 
all in an examination  of a text of limited  scope. 
2. SPECIFIC)  COMMENTS 
2.1. Article  1 
2.1.1.  As  regards  the scope  of the proposed  Direc-
tive, it should  be pointed  out that  even  if it is expe-
dient  to include  as far as possible  the  hydrocar-
bons  which  can  be used  as combustibles  or as fuels 
one should  not  lose  sight  of the  fact  that  these 
products  are  normally  earmarked  for  various 
purposes  on  account  of their  characteristics.  It 
should  therefore  be specified  that  the term  'mineral 
oils' which  is used  in the Directive  of 29 April  1972 
on the harmonization  of excise  duties  does  not only 
cover  petroleum  products  which  are to be used  as 
combustibles  or fuels  — which  are in fact  the only 
intended  purposes  on which  there  is a tax — but 
also petrochemical  products. 
2.1.2.  Article  1 of the proposed  Directive  should 
therefore  read  : 
'Article  1 
Member  States  shall  impose  on the  petroleum 
and petrochemical  products  which  are  desig-
nated  as "mineral  oils"  in Article  2 and,  within 
the limits  laid  down  in Article  3, on imported 
products  containing  mineral  oils,  a harmonized 
excise  duty  in accordance  with  this Directive.' 
2.2. Article  2 
2.2.1,  Paragraph  1 
2.2.1.1.  In  the opinion  of the Committee,  the tars 
falling  within  heading  No  27.06  of the  Common 
Customs  Tariff  should  be covered  by the proposal 
for a Directive. 2.2.1.2.  To  facilitate  reference  to the  list  of 
taxable  products  in Article  2 (1),  it is, however, 
advisable  that  petroleum  and  chemical  products 
should  be classified  according  to their  intended 
purpose  and  not  solely  according  to the numerical 
heading  of the  Common  Customs  Tariff  under 
which  they  fall. 
2.2.1.3.  Article  2 (1) should  therefore  read  : 
'Article  2 
1. For  the purpose  of this  Directive  the term 
'mineral  oils'  covers  : 
(a) products  falling  within  subheading  No 27.07 
A of the Common  Customs  Tariff  of which 
90 %> or more  of their  volume  distils  at a 
temperature  up to 210 °C and,  with  the excep-
tion of crude  sulphurated  light  oil toppings, 
products  falling  within  subheading  27.07  B I 
of the CCT  ; 
(b) products  falling  within  CCT  subheading 
27.07  G utilizable  as substitutes  for fuel  oils ; 
(c) products  falling  within  CCT  heading  No 
27.10,  with  the exception  of the preparations 
defined  at (d) ; 
(d) preparations  falling  within  CCT  heading  No 
27.10  which  do not  possess  the  qualities 
necessary  for use as motor  fuel; 
(e) products  falling  within  CCT  heading  No 
27.11  excluding  natural  gas and methane  ; 
(f) products  falling  within  CCT  heading  No 
27.12  ; 
(g) products  falling  within  CCT  subheading 
27.13  B ; 
(h) products  falling  within  CCT  heading  No 
27.14  with  the  exception  of  resinous 
products,  used  bleaching  earth,  acid  residues 
and basic  residues  ; 
(i) products  falling  within  CCT  subheading 
27.16  B ; 
(j) products  falling  within  CCT  heading  No 
34.03  ; 
(k) products  falling  within  CCT  heading  No 
34.04  containing  more  than  85 °/o by weight 
of the  products  designated  at (f)  or (g) 
above; 
(1) products  falling  within  CCT  subheading 
38.14  B I ; 
(m) products  falling  within  CCT  subheading 
38.14  B III containing  products  listed  in 
this paragraph  ; 
19. 9. 74 Official  Journal  of the European  Communities No C 109733 
(n) products  falling  within  CCT  subheading 
38.19  E ; 
(o) products  falling  within  CCT  subheading 
27.07  B II; 
(p) products  falling  within  CCT  subheadings 
29.01  A, B II .and  D I to D III.' 
2.2.2.  Paragraph  2 
2.2.2.1.  The  Committee  agrees  in principle  with 
products  used  as fuels  for the  propulsion  of motor 
vehicles  being  treated  as 'mineral  oils'  under  Article 
2 (1). 
2.2.2.2.  Regarding  the scope  of the proposal  for a 
Directive,  the  Committee  considers  that,  as the 
Economic  ans  Social  Committee  has  already  stated 
in its Opinion  (*)  on the  'Proposal  for  a Council 
Directive  on  excise  duties  and  indirect  taxation, 
other  than  VAT,  levied  directly  or indirectly  on the 
consumption  of products',  the  'products  used  by 
industry  as raw  materials  and  as means  of produc-
tion or manufacturing  components'  must  not  be 
subject  to excise  duty. 
2.2.2.3.  From  this  point  of view,  the products  used 
in stationary  engines  should  not be taxable. 
2.3. Article  3 
2.3.1.  In  the  Committee's  view  there  are  no valid 
reasons  for charging  excise  duty  on lubricants,  even 
if it Is found  necessary  to include  them  in the excise 
duty  system. 
2.3.2.  The  Committee  refers  in this  connection  to 
its comments  on Article  17. 
2.4. Article  4, paragraph  1(b) 
2.4.1.  The  Committee  thinks  that  this  paragraph 
should  be reworded  to read  : 
'(b) the  consumption  of mineral  oils  within  the 
curtilage  of  an  establishment  producing 
mineral  oils  : 
— for  purposes  not  related  to that  produc-
tion ; the term  "production"  shall  cover 
all stages  from  the  receipt  of raw  ma-
terials  to the disposal  of finished  products' 
(rest  unchanged). 
2.4.2.  The  Directive  should,  however,  clearly 
specify  where  the  production  process  is deemed  to 
begin  and  end. 
(*) OJ No C 36, 1.6.1973,  p. 35. 2.5. Article  8 
2.5.1.  Paragraph  4 
2.5.1.1.  The  Committee  thinks  that  there  is a risk 
of unnecessary  complications  if, in the  event  of a 
change  in excise  duties,  the Member  States  are to be 
allowed  to increase  or reduce  the duty  for stocks  of 
mineral  oils  already  put  into  consumption,  since  the 
scope  and  effectiveness  of the  measures  which  could 
be taken  would  be very  limited. 
2.5.1.2.  The  Committee  would  like  the  Commis-
sion to examine  the  possibility  of introducing  a 
decision-making  process  which  would  prevent  specu-
lative  activities  when  excise  duty  rates  are  changed. 
In making  this  proposal,  the  Committee  is aware 
that the  implementation  of such  a procedure  may 
well give  rise  to difficulties  in some  Member  States 
on account  of their  constitutions.  However,  the 
Committee  thinks  that  such  a procedure  must  be 
harmonized  and  applied  at Community  level  to 
prevent  any  possibility  om  competition  being  distor-
ted. 
2.6. Article  9 
2.6.1.  Paragraph  1 
2.6.1.1.  For  reasons  of clarity,  the  layout  of this 
paragraph  should  be changed  by starting  a new  line 
at the  sentence  which  commences  'Member 
States.  ..'. 
2.6.1.2.  This  sentence  does  not  mean  that  excise 
duty  is to be  paid  on  the  entire  production, 
including  products  intended  for  export,  and  then 
reimbursed  on  exportation,  as the  present  layout 
might  wrongly  lead  one  to fcelieve. 
2.6.2.  Paragraph  2 (b) 
2.6.2.1.  According  to the Commission,  the exemp-
tion of gas  oils  used  as fuels  for the  propulsion  of 
railway  vehicles  running  on public  railway  networks 
is justified  by the  fact  that  public  railway  undertak-
ings manage  their  infrastructures  themselves  and,  in 
general,  bear  the cost  thereof. 
2.6.2.2.  The  Committee  questions  this  reasoning 
for, in its opinion,  the  position  in reality  is often 
quite  different  to that  described  by the Commission. 
The Committee  thinks  that  exempting  these  under-
takings  from  excise  duties  would  amount  to a kind 
of disguised  subsidy,  which  would  be undesirable 
— especially  as it would  be difficult  to quantify. 
2.6.2.3.  The  Committee  therefore  requests  that 
paragraph  2 (b) be deleted. 
No C 109/34 Official  Journal  of the European  Communities 19. 9. 74 
2.6.3.  Paragraph  2 (d) 
2.6.3.1.  As  regards  the  first  part  of this  para-
graph,  the  Committee,  referring  to the  fact  that 
turbines  fired  by  gas  are  to enjoy  exemption, 
considers  that  undertakings  using  turbines  fired  by 
heavy  oils  should  not be discriminated  against. 
2.6.3.2.  This  provision  should  be  reworded  to 
read : 
'(d) heavy  oils,  other  than  gas  oils,  used  under 
fiscal  control  as heating  fuel  or as turbine 
fuel'. 
2.6.3.3.  As  regards  the  second  part  of this  para-
graph  starting  at 'Those  oils...',  the  Committee 
thinks  that  it would  be preferable  not  to mention 
here the  protection  of the  environment  or the 
securing  of Community  energy  supplies.  These 
matters,  which  are essentially  political  in nature,  are 
constantly  undergoing  change  and  it would  be more 
appropriate  to refer  to them  in the  explanatory 
memorandum  or in the recitals,  but not  in the body 
of the  Directive.  The  Committee  refers  in this 
connection  to its general  comments. 2.7. Article  17 
2.7.1.  The  Committee  draws  attention  to  its 
comments  on Article  3. It considers  that  the exemp-
tion of lubricants  cannot  be deferred. 
2.7.2.  Therefore,  no provision  should  be made,  as 
in Article  17,  for  temporary  derogations  from 
Article  9 (2) (a),  which  exempts  mineral  oils  used 
for lubrication. 
2.8. Article  18 
2.8.1.  Paragraph  3 
In line  with  its  remarks  made  under  'General 
comments'  — especially  as regards  the  risks  of 
distorting  competition  — the  Committee  considers 
that this  paragraph  should  be deleted. 
Done  at Brussels,  29 May  1974. 
The Chairman 
of the 
Economic  and  Social  Committee 
Alfons  LAPPAS 
ANNEX 
to the Opinion  of the Economic  and  Social  Committee 
The following  amendment,  proposed  in accordance  with  the  Rules  of Procedure,  was  rejected 
by the Committee  during  its discussions. 
The following  should  be added  to the comments  on Article  1. 
'The  Committee  considers  that  the use  of the  words  "mineral  oils"  to describe  the products 
covered  by the  Directive  is imprecise  and  thus  somewhat  misleading  ; this  is undesirable, 
particularly  in a legal  document.  Thus,  as the  Expose  des  Motifs  itself  makes  plain,  some 
of the  products  covered  are  not  "oils".  Some  are  gases,  some  are  solid  and  some  are 
semi-solid  and  whilst  many  find  application  as fuels,  motor  fuels  and  lubricants  others  are 
used  for  conversiion  to the  many  products  now  derived  from  oil.  This  difficulty  can  be 
avoided  by  substituting  "taxable  hydrocarbons"  for  "mineral  oils"  throughout  the 
Directive  as the exact  short  description  for "the  products  listed  under  Article  2".' 
This  term  is already  employed  in the  Expose  des  Motifs  (see  for  example  the  commentary 
on Article  3).' 
Result  of the vote  : 
for : 13 
against  : 35 
abstentions  : 38.