No C 322/16 Official Journal of the European Communities 21. 12. 90 
Proposal for a Council Directive amending Council Directives 72/464/EEC and 79/32/EEC on 
taxes other than turnover taxes which are levied on the consumption of manufactured tobacco 
CC>M(90) 433 final 
(Submitted by the Commission on 27 September 1990) 
(90/C 322/03) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 99 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Economic and Social 
Committee, 
Whereas Council Directive 72/464/EEC O), as last amen­
ded by Directive... (2), lays down general provisions 
relating to excise duties on manufactured tobacco and 
special provisions relating to the structure of excise duties 
applicable to cigarettes; 
Whereas Council Directive 79/32/EEC (3), as amended by 
Directive 80/369/EEC (4), and by the Act of Accession of 
Portugal and Spain, laid down the definitions of the 
different types of manufactured tobacco; 
Whereas, in Articles 4 (1) and 6 (2) of Council Directive 
72/464/EEC, the concepts of importation and release for 
consumption should be amended in connection with the 
abolition of tax frontiers; 
Whereas, in Article 5 (1) of Council Directive 72/464/EEC, 
the concept of manufacturer should be defined as the 
natural or legal person who actually prepares the tobacco 
products and who sets the maximum retail selling price for 
each of the Member States for which the products in 
question are to be released for consumption; 
Whereas, in Article 6 of Council Directive 72/464/EEC, for 
the purpose of simplifying collection of the tax and of 
preventing certain types of evasion or avoidance with 
regard to value added tax, this tax should be calculated on 
the basis of the maximum retail selling price when the VAT 
and excise duties are collected by way of tax-stamps; 
(!) OJ No L 303, 31. 12. 1972, p. 1. 
(2) OJ No C 12, 18. 1. 1990, p. 4 [COM(89) 525 final]. 
(3) OJ No L 10, 16. 1. 1979, p. 8. 
(4) OJ No L 90, 3. 4. 1980, p. 42. Whereas, since a majority of Member States traditionally 
exempt certain types of manufactured tobacco, exemptions 
for special uses should be established in this Directive; 
Whereas, since the definitions of the tobacco products are 
completely exhaustive, it is therefore appropriate to delete 
the reference to subheading 24.02 E of the Common 
Customs Tariff from Article 2 (3) and (4) of Directive 
79/32/EEC; 
Whereas Article 8 of Directive 79/32/EEC has become 
redundant- and should therefore be deleted, 
HAS ADOPTED THIS DIRECTIVE: 
Article 1 
Council Directive 72/464/EEC is hereby amended as 
follows: 
1. Article 4 is amended as follows; 
(a) in paragraph 1, the phrase 'national and imported 
cigarettes' is replaced by 'cigarettes manufactured in 
the Community and those imported from non-
member countries'; 
(b) in paragraph 2, after 'cigarettes', the following 
phrase is added: 'in accordance with the provisions 
of Directive ...'. 
2. Article 5 (1) is replaced by the following: 
'1. Manufacturers and importers in the Community 
shall be free to determine the maximum retail selling 
price for each of their products for each Member State 
for which the products in question are to be released for 
consumption. The natural or legal person who converts 
the tobacco into manufactured products prepared for 
retail sale shall be deemed to be a manufacturer.' 
3. Article 6 is amended as follows: 
(a) The following third subparagraph is added to 
paragraph 1: 
'Member States which collect value added tax at 
source by means of tax stamps, in the same way as 
excise duty, shall calculate value added tax on the 
maximum retail selling price.' 
(b) In paragraph 2, first line, the word 'national' is 
deleted. 
21. 12. 90 Official Journal of the European Communities No C 322/17 
4. The following Article 6a is inserted: 
'Article 6a 
The following may be exempted from excise duty: 
(a) denatured manufactured tobacco used for industrial 
or horticultural purposes; 
(b) manufactured tobacco which is destroyed under 
administrative supervision; 
(c) manufactured tobacco which is solely intended for 
scientific tests connected with the determination of 
tar and/or nicotine levels. 
Member States shall determine the conditions and 
formalities to which the abovementioned exemptions 
are subject.' 
5. Article 12 (1) is amended as follows: 
(a) in paragraph 1, first subparagraph, the second 
sentence is deleted; 
(b) in paragraph 1 the second subparagraph is deleted. 
Article 2 
Council Directive 79/32/EEC is hereby amended as 
follows: 
1. Article 1 is amended as follows: 
(a) in paragraph 1, the figure '1' is deleted; 
(b) paragraph 2 is repealed. 
2. Article 2 is amended as follows: 
(a) in paragraph 3, 'falling within subheading 24.02 E of 
the Common Customs Tariff' is deleted; (b) in paragraph 4, 'falling within subheading 24.02 E of 
the Common Customs Tariff' is deleted. 
3. Article 8 of Council Directive 79/32/EEC of 18 De­
cember 1978 is repealed. 
4. In Article 9 (2), the first subparagraph is deleted. 
Article 3 
Where necessary, the Community measures to give effect to 
the provisions of this Directive, shall be adopted by the 
Commission according to the procedure provided for in 
Title VI of Council Directive ... concerning the general 
arrangements for products subject to excise duty and on the 
holding and movement of such products (!). 
Article 4 
The Member States shall bring into force the laws, 
regulations or administrative provisions necessary to 
comply with this Directive not later than 31 December 
1992. 
When the Member States adopt such provisions they shall 
contain a reference to this Directive or shall be ac­
companied by such a reference on official publication. The 
Member States shall lay down the manner in which such 
reference shall be made. 
Article 5 
This Directive is addressed to the Member States. 
(J) See page 1 of this Official Journal [CC)M(90) 431 final].