Proposal for a Council Directive amending Council Directive 92/12/EEC on the general arrangements for products subject to excise duty and on the holding movement and monitoring of such products (97/C 51/07) COM(96) 548 final - 96/0266(CNS)

(Submitted by the Commission on 13 November 1996)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 99 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

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

Whereas Council Directive 92/12/EEC (1) lays down the general arrangements for the holding movement and monitoring of products subject to excise duty;

Whereas Article 26 of that Directive provides a derogation permitting Denmark to apply excise duty to alcoholic drinks and tobacco products exceeding certain quantities when they have been acquired excise duty paid in other Member States by individuals who import them for their own use;

Whereas the Act of Accession (2) provides, also by reference to Article 26 of Directive 92/12/EEC, that Sweden and Finland may apply excise duty to a more extensive list of alcoholic drinks and tobacco products under the same conditions;

Whereas the derogations were accorded because in a Europe without frontiers, where excise rates vary widely, an immediate total removal of excise limitations would have caused an unacceptable diversion of trade and revenue and distortion of competition in the Member States concerned, which have traditionally applied high excise duties to the products concerned both as an important source of revenue, and for health reasons;

Whereas, the derogations were granted 'until 31 December 1996 and subject to a review mechanism similar to that laid down in Article 28 (1) of Directive 77/388/EEC` (3);

Whereas, however, on 31 December 1996 minimum rates of excise duty applied throughout the Community will be lower than had been expected when the derogations were accorded, so that their abolition on that date will cause greater problems than had been envisaged;

Whereas, therefore, it is appropriate to provide further time for adjustment in these Member States by extending the deadline laid down in Article 26;

Whereas, however, the provisions of Article 26 represent a derogation from a fundamental principle of the internal market - the right of its citizens to transport goods purchased for their own use throughout the Community without incurring liability to new duty charges - so that it is necessary to limit its effects as far as possible;

Whereas it is therefore appropriate, on the one hand to provide for the gradual liberalization of the quantitative restrictions which may be applied prior to their complete removal on 30 June 2002 and, on the other hand, to reduce from 36 hours to 24 hours the qualifying period set out in Article 26 (2) second indent, which demands a minimum stay outside the territory of the country before residents may benefit from any allowance;

Whereas, the Member States concerned may decide the precise details of the liberalization process in the light of all relevant factors;

Whereas, however, the process should be subject to monitoring not later than the half way stage,

HAS ADOPTED THIS DIRECTIVE:

Article 1

Council Directive 92/12/EEC is hereby amended as follows:

Article 26 of the Directive is replaced by the following:

'Article 26

1. Without prejudice to Article 8, until 30 June 2002, Denmark, Finland and Sweden shall be authorized to apply the specific arrangements laid down in paragraphs 2 and 3 of this Article to certain alcoholic drinks and tobacco products acquired in other Member States and brought into their territory by private individuals for their own use.

2. From 1 January 1997, Denmark, Finland and Sweden shall be authorized to continue to apply the same restrictions on the quantity of goods which may be brought into their territories without further excise duty payment as they applied on 31 December 1996. Those restrictions shall be progressively removed by the Member States concerned.

3. Where such goods are imported by persons resident within their territories, Denmark, Finland and Sweden shall be authorized to restrict the grant of admission without payment of duty to persons who have been absent from their territory for a period of more than 24 hours.

4. Before 31 December 1999, the Commission shall report to the Council and the Parliament on the operation of this Article.`

Article 2

1. Member States shall bring into force the laws regulations and administrative provisions necessary to comply with this Directive not later than 1 January 1997. They shall inform the Commission thereof.

When Member States adopt these measures, 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 reference shall be laid down by the Member States.

2. Member States shall communicate to the Commission the texts of the main provisions of national law which they adopt in the field covered by this Directive.

Article 3

This Directive is addressed to the Member States.

(1) OJ No L 76, 23. 3. 1992, p. 1.

(2) OJ No C 241, 19. 8. 1994, p. 339.

(3) OJ No L 76, 23. 3. 1992, p. 11.