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COM (83) 779 
 
 
 
Vol. 1983/0 272 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation. 
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983, 
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003 
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit 
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 
der genannten Verordnung freigegeben. 
COMMISSION OF THE EUROPEAN COMMUNITIES
COM(83) 779 final 
Brussels, 20 December 1983
Proposal for a 
COUNCIL DIRECTIVE
to prolong the derogation accorded to Ireland relating to 
the rules governing turnover tax and excise duty 
applicable to international travel
(submitted to the Council by the Commission)
COM(83) 779 final

EXPLANATORY M EM ORANDUM
Council D ire c tiv e  78/1032/EEC (1) increased the ta x -fre e  
allow ance fo r goods contained in  the personal luggage o f intra-Com m unity  
tr a v e lle r s -fr o m  125 to  180 ECU and, a t the same tim e , granted Ire la n d  
a derogation u n t il 31 December 1983 to exclude from th is  allowance any  
item  exceeding 77 ECU in  v a lu e . The Ir is h  Government has expressed  
concern at the economic consequences which would a ris e  i f  the f u l l  
allowance were to  be a p p lied  from 1  January  1984 and has requested a  
p ro lo n g atio n  o f the d ero g atio n .
At the tim e when the d erogation was gran ted , the main concern  
o f the Ir is h  Government was th a t an increase in  the t r a v e lle r s '  
allow ance would create s p e c ific  problems in  respect o f c e rta in  goods  
subject to excise d u tie s  but fo r which no q u a n tita tiv e  lim its  had been  
envisaged (ra d io s , te le v is io n s , record p layers and s im ila r equipment,  
and motor v e h ic le  p a rts  and a cc e ss o ries ). The problem which concerns  
the Ir is h  Government now, however, is th a t in a d d itio n  to the excise duties  
in  question th ere is a s ig n ific a n t d iffe re n c e  (35 %  as opposed to 15 Z) 
in  the VAT rates a p p lied  in  Ire la n d  and the U K  to a wide range of  
consumer goods, which has led to a marked increase in  cross-border  
shopping t r ip s  by c itiz e n s  of the Republic of Ire la n d .
The Ir is h  Government fears th a t i f  the d erogation in  question  
were not to be extended th ere would be an increase in  the level of  
cross-border shopping which would have a n o tic e ab le  e ffe c t on n a tio n a l  
tax revenues and would create serious problems fo r trad ers operating  
close to the border.
The Commission acknowledges th at the problems posed by cross-  
border trade between Ire la n d  and the U K  are now g re a te r than in 1979,  
la rg e ly  as a re s u lt o f s u b s ta n tia l increases in  Ir is h  VAT and excise cLrty  
rates during the la s t two years, c id  accepts th a t an ending  o f the derogation on  
3 1 /1 2/1 98 3  would have unaccep^jble economic and f is c a l consequences.
In  these circumstances the Commission fe e ls  o b lig ed  to  propose th at  
the dero g atio n  be extended fo r a lim ite d  period and the attached d ra ft
Council D ire c tiv e  proposes a six m o n th  p ro lo n g atio n . I t  w  ' l  s h o rtly  
b rin g  forward proposals to  cover the s itu a tio n  a fte r  30 June  1984.
(1 ) 0J No. L 3 6 6 ,  2 8 .1 2 .1 9 7 8 , p. 28

PROPOSAL FO R A  COUNCIL DIRECTIVE  
prolonging the derogation accorded to Ire la n d  
r e la tin g  to the ru les governing tu rn o ver tax and excise duty  
a p p lic a b le  in  in te rn a tio n a l tr a v e l
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
i
Having regard to the T reaty e s ta b lis h in g  the European Economic Community,  
and in  p a r tic u la r  A rtic le s  99 and 100 th e re o f,
Having regard t o t he proposal from the Commission,
Whereas Council d ire c tiv e  78/1032/EEC granted Irela n d  a derogation,  
in respect of the u n it value of goods to be imported with tax exemption,  
from D ire c tiv e  69/169/EEC , as last amended b yD irective 82/443/EEC3 ^;
Whereas the Ir is h  Government has requested a p ro lo n g atio n  of the above  
dero g atio n ;
Whereas the tax system at present ap p lied  in  Ire la n d  does not yet allow  
f u l l  a p p lic a tio n  of the tax exemption granted to t r a v e lle r s  coming from  
o th e r Member S tates of the Community w ithout the ris k  o f serious  
economic consequences;
Whereas, th e re fo re , Ire la n d  should be au th o rized  to  continue to apply  
e xc e p tio n a l arrangements fo r a fu rth e r lim ite d  p e rio d ,
HAS ADOPTED THIS DIRECTIVE:
O J  No L 366, 28.12.1978, p. 28
20J No L 133, 4 .6 .1 9 6 9 , p. 6  
30J No L 206, 1 4 .7 .1 9 8 2 , p. 35

A r tic le  1- 2 -
The second indent of paragraph 1  of A r tic le  5 of D ire c tiv e  
78/1032/EEC is '^ereby replaced by the fo llo w in g :
Ire la n d  may, u n t il 30 June 1984, exclude from tax exemption  
goods whose u n it value is in excess of 77 ECU.
A r t ic le  2
Other Member S tates s h a ll take the necessary steps to  perm it the  
rem ission of ta x , in accordance w ith t i e  procedures re fe rre d  to  in  
A r t ic le  6 of D ire c tiv e  69/169/E E C , on goods imported in to  Ire la n d  
which are excluded from exem ption.
A r tic le  3
Ireland shall communicate to the Commission details of th< 
measures which it adopts to implement this Directive.
A r tic le  4
This D ire c tiv e  is  addressed to  the Member S ta te s .
Done at Brussels For the Council
The President