COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 604 final 
Brussels, 09.12.1994 
Proposal for a 
COUNCIL DIRECTIVE 
AMENDING COUNCIL DIRECTIVE 94/4/EC 
of 14 February 1994 and 
introducing a temporary derogation applicable to Austria 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
General background 
On 14 February 1994 the Council adopted, on a proposal from the Commission, Directive 
94/4/EC amending Directives 69/169/EEC and 77/388/EEC and increasing the level of 
allowances for travellers coming from third countries and the limits on tax-free purchases in 
intra-Community travel.1 
The maximum allowance for goods contained in the personal luggage of travellers coming 
from third countries, which had been set at ECU 45 since 1 January 1982, was increased to 
ECU 175 (ECU 90 for travellers under fifteen years of age). Quantity limits (for alcohol, 
tobacco, etc.) remained unchanged. 
This change took account of: 
- the need to resolve the practical difficulties being encountered by individuals and 
administrations; 
- the significant increase in the quantity of goods likely to be purchased by travellers 
through existing commercial channels; 
- the guidelines issued at international level, particularly by the OECD, in this connection; 
- the specific difficulties confronting two Member States: 
* the particular position of the Canary Islands, Ceuta and Melilla: until 31 December 
2000, special provisions (an allowance of ECU 600) will apply to goods imported by 
travellers entering mainland Spain and the Balearic Islands (Article 1(3) of the above 
Directive); 
* the concerns of the Federal Republic of Germany, which has been authorized to defer 
implementation of the provisions until 1 January 1998 as regards goods imported by 
land or by means of coastal navigation by travellers coming from countries other than 
EFTA members (Article 3(2) of the Directive). 
Parallel provisions (excluding the special treatment for the Canary Islands) have been adopted 
by the Council and are also applicable from 1 April 1994 on the basis of Regulation (EC) No 
355/94 of 14 February 1994.2 
1 OJ No L 60, 3.3.1994, p. 14. 
2 OJ No L 46, 18.2.1994, p. 5. 
Request bv the Republic of Austria 
Pursuant to Article 151(2) of the Act concerning the conditions of accession of the Kingdom 
of Norway, the Republic of Austria, the Republic of Finland and the Kingdom of Sweden and 
the adjustments to the Treaties on which the Union is founded, which is annexed to the 
Treaty concerning the accession of those countries, Austria is seeking a temporary derogation 
modelled largely on that applicable to Germany under Article 3(2) of Directive 94/4/EC. 
This request is based on similar arguments to those put forward by Germany: price 
differences between Austria and the countries on its eastern border, the practice of 
undertaking shopping trips and the difficulties involved in carrying out controls. 
Analysis 
In view of Austria's particular geographical position, the possible economic repercussions in 
this field and the similarity of the situations in Germany and Austria, it is necessary to 
introduce for Austria a derogation similar to that granted to Germany under Article 3(2) of 
Directive 94/4/EC. 
However, the situation would be as follows, regarding the amount of travellers allowances : 
- ECU 175 for imports into ten of the existing Member States: 
- until 31 December 2000, ECU 600 for imports into mainland Spain from the Canary 
Islands, Ceuta and Melilla; 
- until 1 January 1998, maintenance of the allowance of ECU 45 for imports into Germany 
under the conditions laid down by Article 3(2) of Directive 94/4/EC; 
- until that same date, maintenance of the limit of ECU 75 currently applied by Austria to 
imports by travellers coming from countries on its eastern border. 
This highlights the organizational and control problems which can arise in such circumstances. 
Differences in treatment must also be avoided in respect of goods imported by travellers 
crossing external frontiers linking the Union to countries other than EFTA members. 
Accordingly, it is important that the Federal Republic of Germany and the Republic of Austria 
should be able to apply to goods imported into their respective territories by travellers coming 
from those countries a single allowance based on the ECU 75 allowance currently in force in 
Austria. 
As regards reliefs from customs duty for travellers coming from third countries, parallel 
provisions amending Council Regulation (EC) No 355/94 of 14 February 1994 are the 
subject of a separate proposal. 
Proposal for a 
Council Directive 
AMENDING COUNCIL DIRECTIVE 94/4/EC 
of 14 February 1994 and 
introducing a temporary derogation applicable to Austria 
(presented by the Commission) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to the Treaty concerning the accession of the Kingdom of Norway, the 
Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European 
Union1 , and in particular article 2(3) thereof, and the Act concerning the conditions of 
accession, and in particular article 151(2) thereof, 
Having regard to the proposal from the Commission,2 
Whereas, on 5 September 1994, the Republic of Austria requested a derogation based on that 
applicable from 1 April 1994 to the Federal Republic of Germany pursuant to Article 3(2) of 
Directive 94/4/EC amending Directives 69/169/EEC and 77/388/EEC and increasing the 
level of allowances for travellers coming from third countries and the limits on tax-free 
purchases in intra-Community travel;3 
Whereas that request is aimed in particular at maintaining until 1 January 1998 the limit 
currently applicable in the Republic of Austria to imports of goods by travellers entering its 
territory by a land frontier linking it to countries other than Member States and members of 
the European Free Trade Association (EFTA); 
Whereas account should be taken of the economic difficulties likely to be caused in the 
Republic of Austria by the amount of the allowances in the case of the travellers referred to in 
the preceding recital; 
Whereas, however, it is necessary to prevent distortions of competition resulting from the 
application of different limits when the external frontiers linking the Community to countries 
other than EFTA members are crossed; whereas it is important that the Federal Republic of 
Germany and the Republic of Austria should apply the same limit to imports of goods into 
their respective territories by travellers coming from the said countries; 
HAS ADOPTED THIS DIRECTIVE: 
1 OJ N° C 241, 29.8.1994, p.9. 
2 OJ No C , .1994, p. . 
3 .OJ No L 60, 3.3.1994, p. 14 
Article 1 
Directive 94/4/EC is hereby amended as follows: 
Article 3(2) is replaced by the following: 
"2. By way of derogation from paragraph 1, the Federal Republic of Germany and the 
Republic of Austria shall be authorized to bring into force the measures necessary to 
comply with this Directive by 1 January 1998 at the latest for goods imported by 
travellers entering German or Austrian territory by a land frontier linking Germany 
or Austria to countries other than Member States and the EFTA members or, where 
applicable, by means of coastal navigation coming from the said countries. 
However, from the entry into force of the Treaty concerning the accession of the 
Kingdom of Norway, the Republic of Austria, the Republic of Finland and the 
Kingdom of Sweden to the European Union, those Member States shall apply an 
allowance of not less than ECU 75 to imports by the travellers referred to in the 
preceding subparagraph." 
Article 2 
1. Subject to the entry into force of the Treaty concerning the accession ot the Kingdom of 
Norway, the Republic of Austria, the Republic of Finland and the Kingdom of Sweden, 
Member States shall implement the law's, regulations and administrative provisions 
necessary to comply with this Directive, by the date of entry into force of this Treaty. 
They shall forthwith inform the Commission thereof. 
When Member States adopt these provisions, they shall contain a reference to this 
Directive or shall be accompanied by such reference on the occasion of their official 
publication. The methods of making such a reference shall be laid down by the Member 
States. 
2. Member States shall communicate to the Commission the text of the provisions of 
domestic law which they adopt in the field covered by this Directive. 
Article 3 
This Directive is addressed to the Member States. 
Done at Brussels, December 1994. For the Council 
The President 
KSN 0254-1475 
COM(94) 604 final 
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