Proposal for a Council Regulation (EC) amending Council Regulation (EC) No 355/94 of 14 February 1994 and extending the temporary derogation applicable to Germany and Austria (98/C 273/05) COM(1998) 473 final - 98/0251(CNS)

(Submitted by the Commission on 24 July 1998)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 28 thereof,

Having regard to the Commission proposal,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas the second paragraph of Article 2 of Council Regulation (EC) No 355/94 of 14 February 1994 amending Regulation (EC) No 918/83 (1), as amended by Article 1 of Council Regulation (EC) No 3316/94 of 22 December 1994 (2), provided for the application until 31 December 1977 of a temporary derogation to Germany and Austria concerning the application of an allowance of ECU 75 to goods imported by travellers entering German or Austrian territory by a land frontier linking the two Member States to countries other than Member States and EFTA members or, where appropriate, by means of coastal navigation from those countries;

Whereas account is taken of the economic difficulties likely to be caused by the amount of the allowances applicable to travellers importing goods into the Community in the situations described above;

Whereas, by letters of 24 June and 23 July 1997, the Federal Republic of Germany and the Republic of Austria requested an extension of the derogation provided for in the second paragraph of Article 2 of Regulation (EC) No 355/94; whereas their request is based on the fact that the economic difficulties that had prompted the adoption of the Regulations (EC) No 355/94 and No 3316/94 had persisted and, in some cases, worsened;

Whereas account should be taken of the situation described by the two Member States;

Whereas an extension of the derogation should, however, be accompanied by the fixing of a deadline for bringing the allowance applied by Germany and Austria into line with that in force on that date in the other Member States, the immediate raising of the limit applicable to the two Member States in order to limit distortions of competition and an undertaking by the Member States that they will gradually and jointly raise the limit in order to bring it into line with the Community limit by 1 January 2003,

HAS ADOPTED THIS REGULATION:

Article 1

The second paragraph of Article 2 of Council Regulation (EC) No 355/94 shall be replaced by the following:

'However, with regard to the Federal Republic of Germany and the Republic of Austria this Regulation shall apply as from 1 January 2003 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, those Member States shall apply an allowance of not less than ECU 100 from 1 January 1999 to imports by the travellers referred to in the preceding subparagraph. They shall jointly increase that amount gradually, with a view to applying the limit in force in the Community to the said imports by 1 January 2003 at the latest.`

Article 2

This Regulation shall enter into force on 1 January 1998.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ L 46, 18.2.1994, p. 5.

(2) OJ L 350, 31.12.1994, p. 12.