8. 5. 85 Official Journal of the European Communities No C 114/7 
beer belonging to the most-sold beer category on the 
markets of those Member States does not exceed the 
ratio obtained by comparing the alcoholic strengths of 
the two beverages. 
2. For the purposes of this Directive, beer is as 
defined in Article 2 of Council Directive ... of ... 
concerning the harmonization of excise duties on beer. 
3. For the purpose of establishing the ratio obtained 
by comparing the alcoholic strength of still wine and that 
of the most-sold category of beer, the alcoholic strength 
of still wine is considered to be 11 % by volume for all 
Member States. 
Article 3 
1. Within a Member State, the same rate of value 
added tax provided for in Council Directive 67/227/ 
EEC (l) shall apply to still wine and to beer. 
2. By way of derogation from paragraph 1, the Grand 
Duchy of Luxembourg shall be authorized, to the extent 
that it does not apply the same rate of value added tax to 
still wine and to beer on the date of implementation of 
this Directive, to postpone doing so until 1 January 1987. 
Article 4 
Within a Member State, the same rate of value added tax 
shall apply to all alcoholic drinks falling within the scope 
of Council Directive . . . of . . . concerning the harmon­
ization of excise duties on alcohol. 
Article 5 
Within a Member State, the same rate of value added tax 
shall apply to all alcoholic drinks falling within the scope 
of Council Directive ... of . . . concerning the harmon­
ization of excise duties on fortified wine and similar 
products. 
O OJ No 71, 14. 4. 1967, p. 1301/67. 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 99 and 
100 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, Article 6 
1. The Council, acting on a proposal from the 
Commission, shall, before 1 January 1989, fix by 
decision the date by which each Member State shall 
apply a single rate of value added tax to all alcoholic 
drinks. 
2. Pending the Council decision referred to in 
paragraph 1, those Member States which, on the date of 
implementation of this Directive: 
(i) apply a single rate of value added tax to all alcoholic, 
drinks shall continue to do so; 
(ii) apply more than one rate of value added tax to 
alcoholic drinks may not introduce additional rates 
and may only change the existing rates without in­
creasing the absolute difference between the highest 
and lowest rates applied to any alcoholic drink. 
Article 7 
1. Member States shall bring into force, not later than 
1 January 1986, the laws, regulations and administrative 
provisions necessary to comply with this Directive. They 
shall forthwith inform the Commission thereof. 
2. Member States shall communicate to the 
Commission the texts of the main provisions of national 
law which they adopt in the field governed by this 
Directive. 
Article 8 
The French Republic shall be authorized not to 
implement the provisions of this Directive in the French 
overseas departments. 
Article 9 
This Directive is addressed to the Member States. 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the creation of a common market with charac­
teristics similar to those of an internal market implies 
that the conditions of competition should not be 
distorted, and that persons, goods, services and capital 
may move about within it without hindrance of any 
kind; Proposal for a Council Directive concerning the harmonization of excise duties on fortified wine 
and similar products 
COM(85) 151 final 
(Submitted by the Commission to the Council on 24 April 1985) 
(85/C 114/09) 
No CI 14/8 Official Journal of the European Communities 8.5.85 
Whereas the excise duties that are levied on the 
consumption of fortified wine and similar products 
(hereinafter called 'intermediate products') are not 
always neutral from the point of view of competition; 
whereas the differences in tax burdens resulting from 
them from one Member State to another make it 
necessary to maintain taxes on imports and tax rebates 
on exports and border controls; 
Whereas this situation constitutes a barrier to the free 
movement of intermediate products between Member 
States and contributes to distorting competition; whereas 
it is therefore necessary to eliminate these obstacles; 
Whereas free movement between Member States and a 
system ensuring that the conditions of competition are 
not distorted can only be achieved by means of the 
harmonization at Community level of excise duties 
which are levied on the consumption of intermediate 
products; whereas, however, it is advisable to proceed 
gradually and to bring harmonization to bear at first 
mainly on the structure of these excise duties; 
Whereas all intermediate products are based either on 
wine from fresh grapes or on other fermented beverages, 
and the excise duties — if any — on those intermediate 
products are in all Member States lower than the excise 
duties on alcohol; whereas, in order to take into account 
the fact that a large amount of the alcohol contained in 
intermediate products is natural fermented alcohol, the 
rate of excise duty applicable to these products must be 
reduced compared with the excise duties levied on spirits 
or distilled alcohol; 
Whereas, in order to ensure neutral taxation, all 
intermediate products must be liable to the excise duty; 
whereas the same rate structure shall be applied 
uniformly to all intermediate products within each 
Member State; 
Whereas it appears appropriate that France be auth­
orized to continue levying a lower excise duty on some 
quality liqueur wines produced under particularly 
difficult conditions provided that it applies the same 
lower duty to similar liqueur wines produced under 
particularly difficult conditions in other Member States; 
Whereas, in order to ensure the correct levying of the 
tax, control of the production, holding and movement of 
intermediate products is necessary; 
Whereas, in order to ensure equal conditions of 
competition at Community level, the methods of levying 
and controlling the excise duty must be harmonized as 
much as necessary between the Member States; 
Whereas to prevent this harmonization from being 
jeopardized, the Member States should not be auth­
orized to subject intermediate products directly or 
indirectly to any indirect taxation other than the 
harmonized excise duty and value added tax, unless such other taxation does not give rise, in trade between 
Member States, to either taxes on imports and tax 
rebates on exports or border controls; 
Whereas it is important to guarantee the coordinated 
application of the provisions of this Directive; whereas it 
is therefore essential to provide for an effective 
procedure which, whenever necessary, can enable the 
necessary implementing measures to be adopted; whereas 
the procedure of the Committee on Excise Duties laid 
down by Council Decision ... of ... is such that such 
measures can be adopted simply and rapidly; 
Whereas France should be authorized not to apply the 
provisions of this Directive in its overseas departments, 
in view of the special situation of those territories, 
HAS ADOPTED THIS DIRECTIVE: 
I. Field of application 
Article 1 
Member States shall apply an excise duty to fortified 
wine and similar products, hereinafter called 
'intermediate products', in accordance with the 
provisions of this Directive. 
Article 2 
For the purposes of this Directive 
1. 'intermediate products' means: 
(a) all products falling within heading No 22.05 of 
the Common Customs Tariff with an actual 
alcoholic strength not exceeding 22 % by volume, 
with the exception of: 
— table wines with a total alcoholic strength of 
more than 15 % but not more than 17 % by 
volume, obtained without enrichment and 
containing no residual sugar, harvested from 
the wine-growing areas specified in 
Commission Regulation (EEC) No 2319/ 
74 O, 
— wines with a total alcoholic strength of more 
than 15 % by volume and the characteristics 
of quality wines produced in specified regions 
as defined in Council Regulation (EEC) No 
338/79 (2), which have not the characteristics 
of liqueur wines as defined in point 12 of 
Annex II to Council Regulation (EEC) No 
337/79 (3), 
— other products falling within heading No 
22.05 of the Common Customs Tariff with an 
actual alcoholic strength not exceeding 12 % 
by volume or a total alcoholic strength not 
exceeding 15 °/o by volume; 
O OJ No L 248, 11. 9. 1974, p. 7. 
(2) OJ No L 54, 5. 3. 1979, p. 48. 
(3) OJNoL54, 5. 4. 1979, p. 1. 
^.^ Official journal of the European communities ^oCtntB^ 
d^ all products falling within heading l^o 22.OD of 
the common customs tariff with an actual 
alcoholic strength not e^ceeding22^Bohy volume 
and containing at least Bu^Bo hy volume of 
products falling under heading ^lo 22.0^ of the 
Common Customs Tariff however^ for dry 
aromatized wines^ as well as for certain sweet 
aromatized wines to he determined^ this pro 
portion is reduced to ^0^ 
^ all products falling within heading l^lo 22.0B^ of 
the Common Customs Tariff with an actual 
alcoholic strengthe^ceeding t2^Bohy volume hut 
not exceeding 22 ^Bo hy volume and with a total 
alcoholic strength exceeding t^Bohy volume and 
satisfying one of the following conditions^ 
^ the added distilled alcohol shall he less than 
^O^Bo of the actual alcoholic strength hy 
volume of the final products 
^ a total alcoholicstrength of at least B^^Bo hy 
volumeinthefinalproduct must he obtained 
hy natural fermentation. 
2. factual alcoholic strength hy volumes and ^total 
alcoholic strength hyvolume^are as defined in Anne^ 
Ito Regulation ^EEC^o3^B^ 
IP Estah^shn^en^oft^ed^ty 
t. The excise duty levied hy a member ^tate on 
intermediate products shall comply with the following 
rules^ 
e^ the duty rate shall be fneed by reference to the 
volume of the products 
^ the same rate structure shall be applied to all 
intermediate products referred to in Article 2. The 
duty shall be specific and shall be expressed in terms 
of either 
^ volume of the intermediate products or 
^ actual alcoholic strength by volume of the 
intermediate product at the time it is delivered 
for consumptions or 
^ a combination of^and^ii^ 
r^m ^i^h the exception of the products referred to in 
Article ^ the total excise duty burden shall be the 
same for all intermediate products having the same 
actual alcoholic strength by volumes 
^ the total excise duty burden on a determined 
quantity of an intermediate product^when related to 
the quantity of pure ethyl alcohol contained in the 
products shall be not less than 20 ^Bo and not more 
than De^Bo of the full rate of the excise duty on 
alcohol which would applyonthesamequantityof 
pure alcohol. 2. By way of derogation from paragraph t r^d^ the 
kingdom of POenmark shall be authori^ied^ until ^U 
POecember t^B^ atthelatest^forthepurposes of calcu^ 
lating the maximum and minimum limits^ to use as 
referenceratethespecifice^cisedutyleviedon alcohols 
increased by the percentage rate of the^^A^r^ excise 
duty. 
t By way of derogation from Article ^ the French 
Republic shall be authorised to subject certain quality 
liqueur wines as defined in the Anne^toarate of excise 
duty lower than the rate determined by the application 
of that Article, rdowever^ with effect from t ]anuary 
t^^ this rate^ when related to the volume of pure 
alcohol contained in such a liqueur wine^ must not be 
less than 20 ^Boof the full rate of excise duty on alcohol 
which would apply to the same volume of pure alcohol. 
2. For the purpose of applying the provisions of 
paragraphpthe quality liqueur wines referred to therein 
shall be deemed to include quality liqueur wines 
produced in specified regions of the Community which 
fulfils inadditiontotheconditionslaiddownbyReguD 
lationr^EEC^o^^B^ the following conditions only^ 
they must be 
^ directly prepared by producers utilising their wine 
harvest of which at least ^O^Bo must derive from 
aromatic vine varieties^ 
tl^ derivedfromvineyards whose yielddoesnot exceed 
^0 hectolitres per hectare in productions 
^ the product of musts registering an initial natural 
sugar richness of at least 2^2 grams per litres 
^ obtainedtothee^clusionofallother enrichment by 
the addition of wine^derived alcohol corresponding 
in pure alcohol to not less that ^Bo per volume of 
the musts used and not more than the smaller of the 
two following ratios^either 
— tO^Bo per volume of the musts used^ or 
— ^O^Bo of the total alcoholic strength by volume of 
the finished product represented by the sum of 
the actual alcoholic strength and the equivalent 
of the potential alcoholic strength calculated on 
the basis of t^Bopure alcohol by volume for each 
P^ grams of residual sugar per litre. 
^. (On importation into France of the quality liqueur 
wines referred to in paragraph 2^ proof must be 
produced that these wines fulfil the conditions laid down 
for the applicationof the reduced rate. For this purposed 
a certificate from the competent authorities of the 
member ^tate in which they were produced must be 
provided. This certificate must contain precise particulars 
relating to the conditions in paragraph 2. 
NoC 114/10 Official Journal of the European Communities 8.5.85 
Article 5 
1. Without prejudice to other Community provisions, 
the following provisions shall apply for the purposes of 
exemption from the excise duty applied to the products 
covered by this Directive. 
2. The products covered by this Directive shall be 
exempt from excise duty: 
(a) when used, under fiscal supervision, in the manu­
facture of any other product subject to another 
excise duty; 
(b) when exported, under fiscal supervision, from a 
production plant or a fiscal warehouse; 
(c) when used, inside or outside the production plant or 
fiscal warehouse, as a sample for analysis, for 
necessary production tests, or for scientific purposes; 
(d) when taken for the purposes of fiscal supervision or 
supervision of the activities of the undertaking or 
submitted to the competent authorities for examin­
ation as to quality or taken at the request of such 
authorities. 
3. Without prejudice to other Community provisions, 
the provisions of this Directive shall not preclude the 
exemption from excise duty of intermediate products 
which Member States at present or in future grant, under 
bilateral or multilateral conventions or agreements or by 
unilateral measures, to diplomatic missions, international 
institutions, armed forces of other States and similar 
organizations. 
4. Without prejudice to other Community provisions, 
Member States may refund the excise duty paid when 
products on which the excise duty has been paid are 
exported. 
5. Member States shall fix the conditions under which 
the provisions of paragraphs 2 to 4 shall apply. In the 
cases covered by paragraph 2 (c) and (d) and by 
paragraph 3, the Member States may provide that 
exemption be effected by a refund of the excise duty. 
III. Control 
Article 6 
1. Member States shall provide that the following 
operations are carried out under suspension of the excise 
duty on intermediate products in a warehouse under 
fiscal control: 
(a) the addition of ethyl alcohol on which excise duty 
has not been paid to wine or other products with a 
view to obtaining an intermediate product; 
(b) maturing of intermediate products; (c) bottling or other filling procedures. 
2. The manufacture, outside a warehouse under fiscal 
control, of intermediate products from components on 
which excise duty has been paid, may be authorized if 
the excise duty on the finished intermediate product 
would not exceed the excise duty paid on the 
components. 
3. Member States may require a guarantee to be 
provided by any person wishing to carry out one or 
more of the operations referred to in paragraph 1. They 
may also impose additional conditions, provided that 
these apply in like manner to national and imported 
products. 
Article 7 
1. Without prejudice to subsequent Community 
provisions, Member States shall allow deduction from 
the amounts of intermediate products held without 
payment of excise duty, of losses through evaporation 
and other actual losses up to maximum percentage limits 
which they shall establish. These percentages shall be 
notified to the Commission on the date of 
implementation of this Directive. 
2. Member States may also allow the following to be 
deducted from the quantities of intermediate products 
held without payment of excise duty: 
— quantities destroyed under the supervision of the 
administrative authorities, 
— losses resulting from a duly verified fortuitous event 
or case of force majeure. 
Article 8 
Member States shall establish adequate control pro­
cedures governing the production, warehousing and 
movement of intermediate products. 
IV. Recovery of excise duty 
Article 9 
1. Without prejudice to national regulations governing 
the chargeable event for the excise duty, the excise duty 
on intermediate products shall fall due at the time of 
releasing them for home use or of recording missing 
quantities. It shall be paid on the basis of the actual 
quantity of intermediate products cleared for 
consumption or recorded as missing, taking into account, 
as regards the latter case, the deductions permitted under 
Article 7. 
2. However, where fiscal stamps are used as a means 
of paying excise duty, the latter may fall due at the time 
of purchase of affixing of fiscal stamps. 
^.^ COfficial journal of the European communities ^ooetntBM 
^. rhe rate of the excise dut^ to be takers into 
consideration shall be that in force when the excise dut^ 
falls due. 
In the e^ent of an amendment to the rate of excise dut^, 
the Member States ma^ le^ or refund the difference 
between the new and the old rate of excise dut^ on 
intermediate products which ha^e been held in stock and 
released for home use prior to the amendment to the rate 
of excise dut^. 
t. The excise dut^ shall be paid as soon as it falls due. 
2. However, Member States shall,on request, ^ranta 
period for payment whichthe^ shall fix but which must 
expirebetweenthe t^thda^ofthefirst month andthe 
t^th da^ of the second month, following that during 
which the intermediate product was released for home 
use. The period must be the same for all those liable for 
payment of the dut^ and shall be free of interest. 
Plowe^er, Member Statesman make the ^rantin^ of the 
period for payment conditional on a guarantee bein^ 
provided or,where there isarisk of nonpayment of the 
excise dut^,ma^ require payment withinaperiod shorter 
than that normally granted. 
^. ^here Member States for administrative reasons 
use accounting periods not corresponding to calendar 
months, the a^era^e period for payment must come 
within the a^era^e period obtained b^ appl^in^ the 
maximum and minimum periods referred to in paragraph 
2, calculated on the basis of a monthly accounting 
period. 
^. Member States ma^ require the taxable quantities 
to be declared in a summary statement, lodged b^ the 
persons liable for payment of the dut^ on a date and 
under conditions fixed b^ the Member States. 
^. ^here, in accordance with Article ^ ^, Member 
States re^ardthedut^as falling due onthe purchase or 
affixing of fiscal stamps, different procedures for 
payment ma^ be established, taking into account the 
internal between the time the dut^ falls due and the time 
the intermediate product is released for home use. 1. Member States shall not, directly or indirectly, 
subject intermediate products to an^ indirect tax other 
than the excise dut^ referred to in Articletand the ^alue 
added tax provided for in Oeouncil Mirecti^e D^B22B^B 
EEC^^ unless such a tax does not ^e rise in trade 
between Member States to taxes on imports, remission of 
taxes on exports or frontier controls. 
2. Inaddition, wherethefieldof applicationof atax 
makes noreferencetointermediate products and the tax 
is not expressed in terms of an^ intermediate product 
contained, then, notwithstanding that the products 
subject to tax ma^ contain intermediate products, sucha 
tax shall not be considered as indirect taxation of 
intermediate products within the meaning of this Article. 
^here necessary, C^ommunit^ measures for the 
application of this Mirecti^e shall be determined in 
accordance with the procedure laid down b^ 
Precision... of... 
1. Member States shall brin^ into force, not later than 
t]anuar^t^B^,thelaws, regulations and administrative 
provisions necessary to comply withthisLoirecti^e.The^ 
shall forthwith inform the commission thereof. 
2. Member States shall communicate to the 
C^ommissionthetextsofthemainpro^isions of national 
law which the^ adopt in the field ^o^erned b^ this 
Mirecti^e. 
The Prench Republic shall be authorised not to 
implement thepro^isionsof this Mirecti^einthePrench 
overseas departments. 
This Mirecti^e is addressed to the Member States. 
^eo^o^nt^^ t^^Dt^otB^ 
NoC 114/12 Official Journal of the European Communities 8.5.85 
ANNEX 
The quality liqueur wines referred to in Article 4, paragraph 1 are the wines called 'vins doux naturels', the 
production of which is traditional and customary, and which are: 
— directly made into wine by producers from their wine harvest consisting exclusively of muscat, 
greneche, maccabeo and malvoisie: harvests from vine varieties other than the four specified above are 
however permitted provided that they are obtained from vineyards planted up to a (maximum) limit of 
10 % of the total number of plants; 
— obtained within the limit of a yield of 40 hectolitres of must per hectare; any excess in this yield will 
entail the withdrawal of the benefit of the designation 'vins doux naturels' from the entire harvest; 
— the product of musts registering an initial natural sugar richness of at least 252 grams per litre; 
— obtained to the exclusion of all other enrichment by the addition of wine-derived alcohol corresponding 
in pure alcohol to not less than 5 % per volume of the musts used and not more than the smaller of the 
two following ratios: 
— either 10 % per volume of the musts used, 
— or 40 % of the total alcoholic strength by volume of the finished product represented by the sum of 
the actual alcoholic strength and the equivalent of the potential alcoholic strength calculated on the 
basis of 1 % pure alcohol by volume for each 17,5 grams of residual sugar per litre.