COMMISSION OF THE EUROPEAN COMMUNITIES 
COM (89) 579 final 
Brussels, 24 November 1989 
. Proposai for a 
COUNCIL REGULATION (EEC) 
laying down detailed rules for AhYHrthlTTg the taxation 
arrangements for wine produced 
in the Grand Duchy of Luxembourg 
(presented by the Commission) 
- 2 - C 0/ 
EXPLANATORY MEtOttNIflM 
1. Under the second subparagraph of Article 1 (1) of the Protocol on the 
Grand Duchy of Luxembourg and Council Regulation (EEC) No 3310/751, as 
last amended by Regulation (EEC) No 196/892, non-sparkling natural 
Luxembourg wines made from fresh grapes are exempt from excise duties 
within the territory of the Benelux Economic Union until 31 December 
1989 by way of derogation from Article 95 of the EEC Treaty. 
2. The Council's last decision to extend the period of application of this 
Regulation was linked to a basic discussion on how the matter should be 
dealt with in future. At its 137th meeting, held on 19 January 1969, 
the Committee of (Deputy) Permanent Representatives agreed on the 
following: 
- it agreed unanimously to invite the Council to adopt, as an "A" item 
at one of its next meetings, a Regulation based on the Commission's 
proposal (in 0CM(88) 847 final) extending the current provisions of 
Regulation (EEC) No 3310/75 until 31 December 1989 only; 
- it agreed on the content of the proposal adopted by the Commission on 
18 January 1989 recommending that the transitional exemption from 
duties provided for in Regulation (EEC) No 3310/75 be progressively 
scaled down on 1 January 1990, 1991, 1992 and 1995, each time af a 
rate of 25% of the amount of the exemption in force on 31 December 
1989, so that the exemption is completely abolished by 1 January 1993; 
1 OJ NO L 328, 20.12.1975, p. 12. 
2 0J NO L 25, 28.1.1989, p. 23. 
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- it agreed unanijnously to invite the Council formally to adopt the said 
proposal in good time before 31 December 1989 in accordance with the 
procedure for I items at Coreper level and "A" items at Council level. 
3. The proposal for a draft Regulation provides for the existing Regulation 
No 3310/75 to be replaced by provisions governing the gradual 
dismantlement. 
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PROPOSAL FORA 
GODNCIL REGDIATICN (EEC) No /.. 
Of 
laying down detailed rules for abolishing the taxation 
arrangements for wine produced 
in the Grand Duchy of Luxembourg 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Eoonomio Community, 
Having regard to the Protocol on the Grand Duchy of Luxembourg annexed 
thereto, 
Having regard to Council Regulation (EEC) No 3310/75 of 16 December 1975 on 
agriculture in the Grand Duchy of Luxembourg1, as last amended by 
Regulation (EEC) No 196/892, and in particular article 2(2) thereof, 
Having regard to the proposal from the Commission, 
whereas under the second subparagraph of Article 1(1) of the Protocol on 
The Grand Duchy of Luxembourg, Belgium, lAxxembourg and the Netherlands are 
to apply the system provided for in the third paragraph of Article 6 of the 
Convention on the Economic Union of Belgium and Luxembourg of 25 July 1921; 
whereas the period of application of that system was last extended by 
Regulation (EEC) No 196/89; whereas the Council has to decide to what 
extent those provisions should be maintained, amended or discontinued; 
1 OJ No L 328, 20.12.1975, p. 12 
2 OJ NO L 25, 28.1.1989, p. 23 
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Whereas the application of the said system in favour of Luxembourg wines 
will continue to be of benefit to the agricultural income of the Grand 
Duchy of UTxembourg in the sector concerned; 
Whereas, however, the system in question was introduced as a transitory 
arrangement and must in any oase be discontinued with the prospect of the 
large single market advocated in the Single Act; whereas the provisions for 
abolishing that system gradually must therefore be adopted as of now, 
HAS ADOPTED THIS KBSULAnGN: 
Ai*4nfr> 1 
Regulation (EEC) NO 3310/75 is hereby supplanted by the following 
provisions. 
ArtiriWta 
The tax exemptions in force on 1 January 1989, pursuant to the second 
subparagraph of Article 1(1) of the Protocol on the Grand Duchy of 
Luxembourg, In respect of wines produced in the Grand Duchy of Luxembourg 
shall be reduced by an amount equal to 29% on 1 January of each of the 
following years so that the exemption is completely abolished from 1 
January 1993. 
- D -
This Regulation shall enter into force on 1 January 1990. 
This Regulation shall be binding in its entirety and directly applicable in 
all Member States. 
Done at Brussels, For the Council 
ISSN 0254-1475 
COM (89) 579 final 
DOCUMENTS 
EN 09 
Catalogue number : CB-CO-89-535-EN-C 
. ISBN 92-77-54999-8 
Office for Official Publications of the European Communities 
L-2985 Luxembourg