SfiiH"" COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(90) 432 final 
Brussels,7 November 1990 
Proposal for a 
COUNCIL PIRECTIVE 
on the harmonization of the structures of excise duties 
on alcoholic beverages and on the alcohol 
contained in other products 
(presented by the Commission) 
VfiM.-
EXPLANATORY MEMORANDUM 
I. INTRODUCTION 
1. In the context of its programme for the 
achievement of the internal market and in 
particular the requirements of Article 99 of the 
EC Treaty, the Commission put forward in 1987 a 
proposal for common rates of excise duty on 
alcoholic drinks and the alcohol contained in 
other products(1). In the light of subsequent 
reactions, amendments to that proposal were put 
forward in 1989 (2) with the intention of easing 
the process of adjustment for the Member States. 
As a measure of flexibility, the Commission 
proposed, on the one hand, that national excise 
rates should be brought into conformity with 
prescribed minimum rates by 31 December 1992 and, 
on the other hand, that Member States with 
national rates in excess of the long term target 
rates (which the proposal also put forward) might 
decrease, but not increase their national rates. 
Similarly, national rates inferior to the target 
rates may only be moved towards those rates. Those 
requirements represent a first step in a gradual 
alignment on the long term target rates, while at 
the same time constituting the approximation which 
is indispensable to the abolition of fiscal 
frontiers by the 31 December 1992 deadline laid 
down by the Single European Act. 
2. However, to ensure the establishment and 
functioning of the internal market, it is not 
sufficient that the rates of indirect taxation 
applied in the Community be approximated. The 
framework within which these taxes are charged 
must also be identified, and a common structure 
laid down in those areas where continued 
(1) COMC87) 328 final, OJ C 250 18.9.1987. C2) COM (B9)'527 FINAL, oJ C 12 18.1.1990, P. 12. 
3 
differences in national practices would hinder or 
distort the free movement of goods after the 
abolition of fiscal frontiers. 
This does not entail the establishment of a 
completely uniform fiscal system, but it does 
require a sufficient degree of coordination to 
ensure that a Europe without frontiers does not 
result in unacceptable distortions of competition. 
The necessary provisions must, inter alia, ensure 
that as a general principle goods which are traded 
across frontiers are not exempt in one Member 
State but taxable in another, and that taxable 
goods fall within the same tax category throughout 
the Community. The proposed Directive therefore 
seeks to ensure that the scope and nature of each 
duty - and the exemptions from it - are clearly 
identified at the Community level. 
II. BACKGROUND 
1. The present proposal has its origins in three 
proposals which date from 1972 (COM(72)0225 2/4 
final) and one proposal which dates from 1985 
(COM(85)151 final), all four of which the 
Commission intends to withdraw. 
The present proposal differs from the originals in 
the following respects: 
- all provisions concerning the warehousing and 
circulation of goods have been withdrawn and 
dealt with in a directive covering this field on 
an across-the-board basis for all goods subject 
to excise duty; 
- certain provisions which it is considered need 
not be harmonized for the purposes of the single 
market have been removed, and certain provisions 
which were considered too vague to fulfil their 
necessary function have been clarified; 
4 
-all provisions have been reviewed and updated in 
the light of the Commission's proposal to 
approximate the rates of duty on alcoholic 
beverages and on the alcohol contained in other 
products. (COM(89)527 final) 
In drafting the present proposal the Commission 
has set out to designate relatively broad and 
simple tax categories which take account of 
existing practice. At the same time, however, it 
has also had regard to the particular difficulties 
which this field presents, given the wide 
diversity of treatment currently applied by Member 
States not only to the different categories of 
alcoholic drinks, but also to different products 
within those categories. The Commission has 
sought, as far as possible, to respect that 
diversity while at the same time attempting to 
ensure the coherent Community-wide system which is 
in the long term interest of all concerned. 
The Commission has therefore made specific 
balanced provisions for sectors presenting 
particular problems, the existence of which has 
been recognized and catered for in previous 
proposals, and where the normal operation of broad 
categorization causes specific difficulties. 
Moreover, it is accepted that further instances 
may occur where specific difficulties arise in 
adapting to the Community-wide system. The 
Commission's approach provides both a rational 
framework within which such problems may be 
analysed and the necessary guidelines for the 
application of common solutions which preserve the 
coherence of the system. When examining such cases 
it is important to bear in mind certain basic 
principles which the Commission has respected in 
its present proposals and in its rates proposal. 
Moreover, for reasons of clarity and legal 
5 
certainty, any specific provision must have as its 
basis a definition agreed at Community level. 
III. BRIEF EXAMINATION OF THE MAIN FEATURES OF THE 
PROPOSAL 
1. Scope 
Articles 1 and 2 (beer) , 6 and 7 (still wine and 
sparkling wine), 10 and 11 (intermediate 
products), 14 and 15 (alcohol and alcoholic 
beverages). 
a) General remarks 
The proposal sets out to tax all alcoholic 
drinks and all alcohol contained in other goods 
unless a specific exemption has been provided. 
Such a system is essential to ensure both the 
proper functioning of the internal market and 
good management at the national level. With 
that aim of comprehensive coverage in mind and 
in order to ensure uniform categorization of 
identical products throughout the Community the 
proposal sets out to define products in such 
manner as to ensure that all alcoholic drinks 
fall within one of its definitions and no 
alcoholic drink falls within more than one 
definition. The proposal therefore takes as its 
starting point the Combined Nomenclature, which 
represents the only comprehensive 
classification of alcoholic beverages at the 
Community level, and modifies its approach to 
the extent necessary to meet taxation needs. 
Use of the Combined Nomenclature also ensures 
uniform treatment for products from third 
countries. 
b) Articles 1 and 2; Beer 
Article 1 requires that an excise duty be 
charged on beer, and that its rate shall be 
fixed in accordance with the requirements of 
COM(89)527 final. Article 2 defines beer by 
reference to CN 2203. 
There are beverages on the market which 
according to some commercial legislation are 
not regarded as beer. In order not to distort 
the conditions of competition, however, it is 
advisable to subject these products to the same 
tax system as is applicable to beers as more 
narrowly defined for other purposes. The 
definition of beer which appears in CN 2203 is 
comprehensive, covering all the products 
concerned. 
c) Articles 6 and 7; Wine 
Article 6 requires that an excise duty be 
charged on wine and that its rates shall be 
fixed in accordance with the requirements of 
COM(89)527 final. 
Article 7(1) defines still wine as all products 
of CN 2204, 2205 and 2206, except sparkling 
wine, provided that they have an alcoholic 
strength not exceeding 15% and that where their 
strength exceeds 13% they contain only 
fermented alcohol. Still wines corresponding to 
the definition of annex 1, paragraph 13, 
penultimate subparagraph of regulation 822/87 
are also included. CN 2204 covers fermented 
unaromatized grape products, CN 2205 covers 
fermented aromatized grape products and CN 2206 
covers the fermented products of fruit other 
than grapes. 
7 
The position is therefore similar to that for 
beer, as outlined above in that some of the 
products which it is proposed to tax as wine 
are not necessarily treated as wine by other 
legislation. Nevertheless, for reasons of 
competition it seems advisable to subject these 
products to the same tax system as wines 
proper. Hence their inclusion within the 
definition 
Article 7(2) defines sparkling wine not only as 
the product of CN 2204 10 (i.e. sparkling wines 
proper) but also as products falling within 
other headings covering wine presented in 
bottles with "mushroom" stoppers etc. and the 
sparkling fruit wines of CN 2206 91. 
d) Articles 10 and 11; Intermediate products 
Article 10 requires that a duty be charged on 
intermediate products and that its rate be 
fixed in accordance with the requirements of 
COM(89)527 final. 
Article 11 defines intermediate products as 
products of CN 2204, 2205 and 2206 with 
strengths over 15% but not more than 22%, or 
with strengths exceeding 13% not made up 
entirely of fermented alcohol; table wines 
meeting the definition set s out in Annex I 
paragraph 13, penultimate sub-paragraph of 
Regulation 822/87(1) are specifically excluded 
from the category. 
As regards these products, the Commission 
retains the broad approach of its earlier 
proposal (COM(85)151 final) where it explained 
that: "between purely fermented beverages such 
as wine and fruit wine on the one side, and 
purely distilled alcoholic beverages such as 
(1) UJ NU JL 84 UF 2). 3.1987 P. 44. 
8 
spirits on the other, there is a wide range of 
"intermediate products" with an actual 
alcoholic strength typically situated between 
15% and 22% by volume. Most of these products 
are based on a naturally fermented beverage to 
which alcohol and in some cases, other 
ingredients have been added: they retain 
however the taste and other characteristics of 
naturally fermented beverages. It is the 
intention that this directive should include 
such products, whereas those which have more 
the characteristics of a spirit should be 
excluded from the scope and be taxed on the 
basis of their alcohol content, at the full 
rate for alcohol". 
In recent' years products have been developed 
which, although their strengths do not reach 
15%, are mixtures of spirits and fermented 
products which can withstand opening to the 
air, and which are in all respects practically 
indistinguishable from higher strength 
intermediate products. It seems proper to tax 
such drinks at the intermediate products rate. 
The definition now proposed therefore includes 
such drinks, and is generally designed to 
provide a clear tax category for this extremely 
complex range of products. 
e) Articles 14 and 15; Alcohol and alcoholic 
beverages 
Article 14 requires that a duty shall be 
charged on alcohol and alcoholic beverages and 
that its rate shall be fixed in accordance with 
the requirements of COM(89) 527 final. 
Article 15 defines alcohol and alcoholic 
beverages as all products falling within CN 
codes 2207 and 2208, together with those 
products of CN codes 2204, 2205 and 2206 which 
9 
have an actual alcoholic strength exceeding 
22%. See also the note under Article 18 
(Section F - Common Provisions) below as 
regards the taxation of alcohol and alcoholic 
drinks contained in other products. 
Article 15, therefore, simply rounds off the 
comprehensive Combined Nomenclature based 
approach. 
2. Establishment of the duties 
a) details of charge 
Articles 3, 8, 12 and 16 of the proposal are 
technical articles fixing the charges of the 
duties. 
b) small breweries 
Articles 4(1) and (2) of the proposal permit 
Member States to apply a lower rate of duty to 
beer produced by small independent 
undertakings. The relief is in line with 
existing practice in certain Member States. A 
maximum duty differential is imposed which is 
designed to ensure that the benefit of the 
lower rate does not distort competition 
unacceptably, and a maximum annual output of 
60,000 hi is laid down, which is designed to 
ensure that the reduced rate does not give rise 
to relief beyond the threshold of the genuine 
independent small business and does not, in 
principle, affect intra-Community movements of 
beer. It is further provided that the Community 
minimum rate must in any event be respected. 
c) "Home" brewing and wine making 
Article 4(3) permits Member States to exempt 
"home brewing" and Article 9 permits them to 
exempt "home wine-making" from excise duty. 
Member States attitudes towards these practices 
10 
vary widely. Without going further into the 
matter, however, where there is no real danger 
of the product concerned crossing frontiers, it 
seems clear that the advent of the single 
market should not affect the existing rights of 
citizens to make and consume their own drinks. 
d) spoilt beer 
Article 5 provides for relief from duty for 
beer which has been returned because it has 
passed its "sell by" date or is otherwise 
unmerchantable. Beer is particularly liable to 
spoil and is normally produced for consumption 
within a very short period. It is therefore 
usual to make special provision for the 
repayment of duty on spoilt beer, and the 
Commission proposal makes it clear that such 
provisions are entirely lawful. 
e) low strength fermented drinks 
Article 8(3) permits Member States to apply a 
single reduced rate of duty to products of less 
than normal wine strength. The provision 
broadly reflects the existing general practice 
in the Member States mainly concerned. A 
maximum duty differential is imposed which is 
less than is generally currently granted and is 
designed to ensure that the benefit of the 
lower rate does not serve to distort 
competition unacceptably. It is further 
provided that the Community minmum rate must in 
any event be respected. 
f) natural sweet wines 
Article 12(3) allows Member States to apply a 
single reduced rate of duty to "natural sweet 
wines" as defined in Article 13(1) of Council 
Regulation 4252/88C1). The specific situation 
(1) UJ MU L 373 UF 31.12.1988, P. 59. 
11 
of these products was recognized in the 
Commission's 1985 proposal on Intermediate 
Products and the current provision permits all 
Member States to apply a reduced rate to such 
goods. A maximum duty differential is imposed, 
which is less than is currently granted, and 
which is designed to ensure that the benefit of 
the lower rate does not distort competition 
unacceptably. It is further provided that the 
Community minimum rate must in any event be 
respected. 
3. Control 
Article 13 provides that intermediate products 
shall be manufactured in warehouse from duty-free 
materials. Matters of control are generally dealt 
with in a separate proposal for a directive. 
However, in the case of intermediate products -
which are essentially mixtures of two drinks 
taxable at different rates, but for which a 
separate rate has been specifically provided - it 
seems necessary to ensure at the outset by a 
common provision that the intended rate is 
charged. 
4. Exemptions 
Article 17 provides for the exemptions to the 
various duties established by the proposal. In 
practice the exemptions largely concern the 
spirits duty. However, where applicable - and 
should the contingency ever arise - the exemptions 
are intended to apply to all duties. Most of the 
exemptions are self-explanatory, but some comments 
are required: 
- Article 17(1)(a) exempts drinks with an alcohol 
content not exceeding 1.2%. Member States 
generally apply some such exemption, but there 
is no agreement on its precise limitations. The 
proposal opts for an across-the-board exemption 
12 
for reasons of competition. The 1.2% cut off 
point is chosen because, on the one hand this 
strength is sufficiently low to justify special 
treatment, and on the other hand it is not so 
low as to result in products totally lacking in 
all the characteristics of alcoholic drinks. 
Article 17(1)(b) and (c) together with Article 
17(3) exempt both "completely denatured" alcohol 
(for general use in industry etc.) and other 
denatured alcohol for use in perfumes toiletries 
and cosmetics or for external medical use. 
Member States generally demand much more noxious 
dénaturants for alcohol for general industrial 
purposes than they demand for alcohol used for 
the particular purposes set out at sub-paragraph 
1(c). The proposal respects that distinction. 
Although the ideal system of denaturing might 
well involve the Community-wide application of 
common rules, so that further action in this 
field cannot be excluded, it has not been 
considered necessary to set up common rules at 
the present stage. The proposal therefore 
requires mutual recognition of denaturing 
formulae and sets up at Article 17(3), a system 
for the mutual exchange of the necessary 
information. 
Exemptions from duty for deliveries to 
diplomatic representations and the like 
(international organizations, armed forces etc.) 
are dealt with in the proposal on common 
provisions for all exciseable products (COM(90) 
...). Exemption for ships' stores and the like, 
in particular as regards international 
transport, will be dealt with in a separate 
directive. 
13 
5. Common Provisions 
Article 18 requires alcohol and alcoholic drinks 
present in other products to be taxed on the 
quantity present at the rate appropriate to the 
alcohol or alcoholic drink concerned. 
6. Final Provisions 
Article 19 makes reference to the provisions 
providing for the establishment of an Excise 
Committee in the horizontal directive proposal. 
Article 20 sets a deadline for implementation of 
the proposed Directive and communication to the 
Commission of the relevant national provisions. 
Article 21 formally addresses the Directive to the 
Member States. 
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Proposal for a 
COUNCIL DIRECTIVE 
on the harmonization of the structures of excise duties 
on alcoholic beverages and on the alcohol 
contained in other products 
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 
(1) 
Having regard to the opinion of the Economic and Social 
Committee (2) 
Whereas Council Directive (3) lays down 
minimum and target rates of excise duty to be applied in 
the Member States to alcohol, wine, beer and intermediate 
products ; 
Whereas it is necessary, if those duties are to be applied 
in a uniform manner, to determine common definitions for 
all the products concerned; 
Whereas it is useful to base such definitions on those set 
out in the Combined Nomenclature which represents an 
established comprehensive system providing a suitable 
basis for taxation purposes; 
Whereas it is necessary to ensure that duty is charged on 
actual quantities delivered or certified missing; 
(1) ... 
(2) ... 
(3) ... 
- 15 -
Whereas,in the case of beer, the system of taxing the worts 
causes great difficulties in assessing the charge and is 
susceptible of distorting competition between breweries, so 
that it is necessary to ensure that the tax is applied 
throughout the Community to the actual quantity of end 
product which leaves the brewery; 
Whereas, in the case of beer, it is possible within certain 
limits to permit Member States to apply the duty to 
gravity bands of more than one degree Plato, provided 
always that no beer is charged at less than the Community 
minimum rate; 
Whereas, in the case of beer, a common solution is required 
permitting Member States to apply a reduced rate of duty 
to the products of independent small undertakings, 
provided that such a reduced rate should not serve to 
distort competition within the internal market; 
Whereas, in the case of beer and wine, it is advisable to 
permit Member States to exempt from duty home-made 
products which are not produced for commercial purposes; 
Whereas, in view of beer's short life span and its 
propensity to spoil, it is necessary to permit Member 
States to refund duty on beer destroyed as unfit for 
consumption; 
Whereas it is advisable to permit Member States on a 
common basis to apply, on the one hand, a reduced rate of 
duty to ciders and similar products of less than normal 
wine strength (n.e. 8.5%) and, on the other hand, to apply 
a reduced rate of the intermediate products duty to 
natural sweet wines, provided that such reduced rates 
should not serve to distort competition within the 
internal market; 
Whereas in the internal market it is necessary to ensure 
that intermediate products are taxed in their final form 
-16-
at the rates provided for in the case of such prodxts, and not at the 
rates applicable to their constituent materials prior to 
their manufacture, so that it is necessary to require that 
intermediate products be manufactured in warehouses from 
duty-free constituent materials; 
Whereas it is necessary to lay down precisely at Community 
level the exemptions which apply to all goods which cross 
frontiers; 
Whereas, however, it is possible to permit Member States 
to apply their own conditions to exemptions tied to end 
uses within the territory of the State; 
Whereas it is necessary to tax the alcohol and alcoholic 
drink present in other products on the quantity of alcohol 
present and at the rate appropriate to the alcohol or 
alcoholic drink concerned; 
HAS ADOPTED THIS DIRECTIVE: 
- 17 -
SECTION A - BEER 
I. SCOPE 
Article 1 
1. Member States shall apply an excise duty to beer 
in accordance with the provisions of this 
Directive. 
2. Member States shall fix their rates in accordance 
with Directive [C0ft(89) 527 final"].. 
Article 2 
For the purposes of this Directive the term "beer" 
covers any product falling within CN code 2203. 
- 18 -
II. ESTABLISHMENT OF THE DUTY 
Article 3 
1. The excise duty levied by Member States on beer 
shall be fixed by reference to the number of 
hectolitre/degrees Plato of finished product released 
for consumption or recorded as missing and 
exceeding any allowance granted. In assessing the 
charge to duty on beer in accordance with the 
requirements of Directive [(COM(89) 527 final)], 
Member States shall ignore fractions of a degree Plato. 
2. Member States may divide beers into categories 
consisting of no more than 4 degrees Plato and 
charge the same rate of duty per hectolitre on all 
beers falling within each category. Such rates, 
expressed as a charge per hi/degree Plato shall 
invariably equal or exceed the minimum rate laid 
down in Article [7a] of Directive [(C0M(89) 527 final)] 
Article 4 
1. Member States may apply a single reduced rate of 
excise duty to beer brewed by independent small 
undertakings within the following limits: 
- the reduced rate shall not be applied to 
undertakings producing more than 60.000 hi of 
beer per year; 
- the reduced rate shall not be set more than 20% 
below the standard national rate of excise duty; 
- the reduced rate shall not fall below the level 
of the minimum rate laid down in Article [7a] 
of Directive [(C0M(89) 527 final)]. 
2. Member States shall ensure that any reduced rate 
they may introduce applies equally and in a 
straightforward manner to beer delivered into 
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their territory from independent small breweries 
situated in other Member States. 
3. Subject to such conditions as they shall lay down 
to ensure the straightforward application of the 
exemption, Member States may exempt from excise 
duty beer produced by a private individual and 
consumed by the producer, members of his family 
living under his roof, his employees or his 
guests. 
Article 5 
The excise duty paid on beer withdrawn from the 
market and destroyed because its condition or age 
renders it unfit for consumption may be refunded in 
accordance with the conditions and procedures laid down 
by Member States. Each Member State shall ensure that 
those conditions and procedures shall apply equally to both beer 
produced within the Member State and beer delivered into its 
territory from other Member States. 
SECTION B - WINE 
I. SCOPE 
Article 6 
1. Member States shall apply an excise duty to wine 
in accordance with the provisions of this 
Directive. 
2. Member States shall fix their rates in accordance 
with Directive /."(COM(89) 527 final)./. 
- 20 -
Article 7 
For the purpose of this Directive: 
1. The term "still wine" covers all products falling 
within CN codes 2204, 2205 and 2206, except 
sparkling wine as defined in point 2 of this 
Article, provided that the products have an actual 
alcoholic strength by volume not exceeding 15% vol and 
that the alcohol contained in products of an 
actual alcoholic strength by volume exceeding 13% vol 
is entirely of fermented origin. Also to be 
considered still wines are products between 15 and 17% 
vol which meet the definition set out in Annex I, point 13, 
(1 ) 
penultimate subparagraph of Council Regulation (EEC) No 822/87 
2. The term "sparkling wine" covers all products 
falling withiN CN codes 2204 10, 2204 21 10, 2204 
29 10 and 2206 00 91 provided that the products 
have an actual alcoholic strength by volume not 
exceeding 15% vol and that the alcohol contained in 
products of an actual alcoholic strength by volume 
exceeding 13% vol is entirely of fermented origin. 
II. ESTABLISHMENT OF THE DUTY 
Article 8 
1. The excise duty levied by Member States on still 
and on sparkling wine shall be fixed by reference 
to the number of hectolitres of finished product 
released for consumption or recorded as missing 
and exceeding any allowance granted. 
2. Except as provided in paragraph 3, 
Member States shall levy the same rate of excise 
duty on all products chargeable with the duty on 
still wine. Similarly they shall levy the same 
rate of duty on all products chargeable with the 
duty on sparkling wine. 
(1) 0J No L 84, 27.3.1987, p. 1. 
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Subject to the following conditions, Member States 
may apply a single reduced rate of 
duty on still wines and a single reduced rate of 
duty on sparkling wines restricted in each case 
to products which have an actual alcoholic 
strength by volume not exceeding 8.5% vol, 
- the reduced rate shall not be set more than 50% 
below the standard national rate of excise duty; 
- the reduced rate shall not fall below the level 
of the minimum rate laid down in Article /6a/ of 
-, Directive MC0M(89) 527 final)"/. 
Article 9 
Subject to such conditions as they shall lay down to 
ensure the straightforward application of this 
provision, Member States may wholly or partially 
exempt from excise duty wine produced by a private 
individual, or by a production undertaking from its 
own agricultural produce, and in each case consumed 
by the producer, members of his family living under 
his roof, his employees or his guests. 
SECTION C - INTERMEDIATE PRODUCTS 
I. SCOPE 
Article 10 
1. Member States shall apply an excise duty to 
intermediate products in accordance with the 
provisions of this Directive. 
2. Member States shall fix their rates in accordance 
with Directive /J(C0M(89) 527 final)?. 
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Article 11 
1. Except as provided at paragraph 2 of this Article, 
for the purposes of this Directive the term 
"intermediate products" covers all products 
falling within CN codes 2204, 2205 and 2206 which 
have an actual alcoholic strength by volume 
exceeding 15% vol but not exceeding 22% vol, or which 
have an actual alcoholic strength by volume 
exceeding 13% vol and in which the alcohol content is 
not entirely of fermented origin. 
2. The term "intermediate products" shall not include 
products which meet the definition set out in 
Annex I, point 13, penultimate subparagraph of Regulation 
(EEC) No 822/87. 
II. ESTABLISHMENT OF THE DUTY 
Article 12 
1. The excise duty levied by Member States on 
intermediate products shall be fixed by reference 
to the number of hectolitres of finished product 
released for consumption or recorded as missing 
and exceeding any allowance granted. 
2. Except as provided in paragraph 3, 
Member States shall charge the same rate of duty 
on all products chargeable with the duty on 
intermediate products. 
3. Subject to the following conditions Member States 
may apply a single reduced rate of duty to those 
intermediate products which meet the conditions 
laid down in Article 13(1) and (2) of Council Regulation 
(EEC) No 4252/88(1); 
(1) 0J No L 373, 31.12.1988, p. 59. 
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the reduced rate shall not be set more than 50% 
below the standard national rate of excise duty, 
the reduced rate shall not fall below the 
minimum rate laid down in Article /5a/ of Directive 
/JC0M(89) 527 final)"/. 
III. CONTROL 
Article 13 
Member States shall ensure that intermediate products 
are manufactured in warehouses from constituent 
distilled and fermented alcholic drinks which are 
held in suspension of the relevant excise duties. 
SECTION D - ALCOHOL AND ALCOHOLIC BEVERAGES 
I. SCOPE 
Article 14 
1. Member States shall apply an excise duty to 
alcohol and alcoholic beverages in accordance with 
the requirements of this Directive. 
2. Member States shall fix their rates in accordance 
with Directive /_~(C0M(89) 527 final).?. 
Article 15 
For the purposes of this Directive the term "alcohol 
and alcoholic beverages" covers all products falling 
within CN codes 2207 and 2208, together with those 
products of CN codes 2204, 2205 and 2206 which have 
an actual alcoholic strength by volume exceeding 22% vol 
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II. ESTABLISHMENT OF THE DUTY 
Article 16 
The excise duty on alcohol and alcoholic beverages 
shall be fixed per hectolitre of pure alcohol at 
20°C, and shall be calculated by reference to the 
number of hectolitres of pure alcohol actually 
cleared for consumption or recorded as missing and 
exceeding any allowance granted. Member States shall 
charge the same rate of duty on all products 
chargeable with the duty on alcohol and alcoholic 
beverages. 
SECTION E - EXEMPTIONS 
Article 17 
1. The products covered by this Directive shall be exempt 
from excise duty: 
a) when they consist of alcoholic beverages of an 
actual alcoholic strength by volume not exceeding 
1.2% vol; 
b) when completely denatured in accordance with the 
requirements of any Member State; 
c) when denatured in accordance with the requirements 
of any Member State, and used for the manufacture of 
perfumes, toiletries and cosmetics or for external 
medical use and conforming to the provisions of 
paragraph 3; 
d) when used for the production of vinegar as defined 
in CN code 2209; 
e) when used for the production of medicines as defined 
by Council Directive 65/65/EEC(1)-
(1) 0J No 22, 9.2.1965, p. 369/65. 
- 25 -
2. The products covered by this Directive may be exempt 
from excise duty under the conditions which the Member 
States shall lay down: 
a) when used as a sample for analysis, for necessary production 
tests, or for scientific purposes; 
b) when used for scientific research; 
c) when used for medical purposes in hospitals. 
Before the date of implementation of this Directive, 
and three months before any intended subsequent change 
in national law, each Member State shall communicate to 
the Commission, together with all relevant information, 
the formulae of the dénaturants which it intends to 
employ from 1 January 1993 for the purposes of paragraphs (1)(b) 
and (1)(c). The Commission shall transmit the communications to. 
the other Member States within one month of receipt. 
SECTION F - COMMON PROVISIONS 
Article 18 
To the quantity of alcohol or alcoholic drink contained in 
any manufactured product Member States shall apply the 
excise duty appropriate to the category to which the 
alcohol or alcoholic drink concerned belongs. 
- 26 -
SECTION G - FINAL PROVISIONS 
Article 19 
Where necessary, the Community measures to give effect to 
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 productsv,/ . 
Article 20 
Member States shall bring into force, not later than 
31 December 1992 the laws, regulations and administrative 
provisions necessary to comply with this Directive. 
When the Member States adopt such provisions they shall contain a reference 
to this Directive or shall be accompanied by such a reference on official 
publication. The Member States shall lay down the manner in which such 
reference shall be made. 
Article 21 
This Directive is addressed to the Member States 
Done at For the Counci I 
(1) 0J No , , p. (C0M(90) ). 
- 27 -
FICHE D'EMPACT SUR LES MIE ET L'EMPLOI 
La présente proposition de directive concernant l'harmonisation de la 
structure des droits d'accises sur les boissons alcooliques et sur l'alcool 
contenu dans d'autres produits est nécessaire dans le cadre de l'abolition 
des frontières fiscales et s'intègre dans l'ensemble des mesures prises 
pour l'achèvement du marché intérieur. 
I. Obligations administratives découlant de l'application de la présente 
directive pour les entreprises : 
- néant. 
II. Quels sont les avantages pour les entreprises ? 
- néant. 
III. Y-a-t-lI des Inconvénients pour les entreprises en termes de coûts 
supplémentaires ? 
- l'application de la présente directive n'entraînera aucun coût 
supplémentaire pour les entreprises. 
IV. Effets sur remploi : 
- néant. 
V. Les partenaires sociaux n'ont pas été consultés. 
VI. Une approche alternative moins contraignante n'est pas envisageable 
dans le cadre de l'abolition des frontières fiscales. 
28 -
FiCHE FINANCIERE 
L'application de la présente proposition de directive n'entraînera aucune 
augmentation des ressources propres de la Communauté. 


ISSN 0254-1475 
COM(90) 432 final 
DOCU 
EN 09 
Catalogue number : CB CO-90-561-EN-C 
ISBN 92-77-65610-7 
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