16.2.  76 Official  Journal  of the European  Communities No C 35/15 
are amended  frequently  the  provisions  be 
consolidated  from  time  to time  in a single  document 
to ensure  ease  of reference.  It trusts  that  such  action 
will be taken  more  often  and  that  consolidated  texts 
incorporating  amendments  will  continue  to  be 
brought  out.  The  amendments  already  submitted  by 
the Commission  in its  proposal  for  a Council 
Regulation  amending  Regulation  (EEC)  No  542/69 
on community  transit  (1), should  if possible  be 
incorporated  in the present  consolidating  instrument. 
3. The  Committee  also  welcomes  the 
Commission's  intention  to  consolidate  all  the 
instruments  issued  under  Article  58 of Regulation 
(EEC)  No  542/69,  and  to publish  the  new  Council 
Regulation  and  that  of the  Commission  in the  same 
issue  of  the  Official  Journal  of  the  European 
Communities.  The  Committee  assumes  that  the 
instruments  issued  under  Article  58 of Regulation 
(EEC)  No  542/69  will  be  consolidated  into  a 
Commission  Regulation.  The  Committee  believes 
that this  consolidation  will  simplify  matters 
considerably. 
4. Consolidation  of  the  current  rules  on 
Community  transit  is important,  but  it is only  the 
first step  towards  their  simplification.  Simplification 
also requires  a revision  of the  current  rules.  As the 
next step,  therefore,  the Committee  recommends  that 
the current  rules  be recast  in the form  of a skeleton 
Regulation.  The  details  would  then  be filled  in by 
Commission  Regulations  adopted  under  an enabling clause  similar  to Article  58.  Such  a stricter  and 
clearer  division  into  substantive  and  procedural 
provisions  would  do much  to clarify  the Community 
transit  procedure. 
5. Article  7 of  the  proposed  consolidating 
Regulation  does  not  include  any  transitional  clause, 
particularly  as regards  the  use  of the  TIR  system  in 
intra-Community  trade.  This  means  that  as from 
1 January  1976  it will  no longer  be possible  to use  this 
system  for trade  between  the  Nine  or, consequently, 
for certain  areas  of  trade  with  Austria  and 
Switzerland. 
6. The  Committee  recognizes  that  less  and  less  use 
is being  made  of the TIR  system  in the Community. 
It regrets,  however,  that  the  explanatory 
memorandum  preceding  the  proposal  makes  no 
express  mention  of this  important  turning  point  in 
the organization  of transport  under  customs  control. 
All appropriate  steps  should  be taken  to ensure  that 
transport  does  not suffer  as a result. 
7. If  the  TIR  system  is to be abolished  in the 
Community,  the  Committee  trusts  that  the  planned 
easing  of guarantee  requirements  will  be put  into 
effect  forthwith.  This  would  lessen  the disadvantages 
which  road  transport  already  has  to contend  with  as 
compared  with  rail  transport,  which  is not subject  to 
the guarantee  requirement.  For  this  reason,  the 
proposed  consolidating  instrument  should  include 
the proposed  amendments  referred  to in item  2. 
Done  at Brussels,  27 November  1975. 
The Chairman 
of the  Economic  and  Social  Committee 
Henri  CANONGE 
(') OJ No C 204,  6. 9. 1975,  p. 2. 
Opinion  on  the  proposal  for  a Council  Regulation  amending  Regulation  (EEC) 
No 542/69  on Community  transit 
The text  referred  to the Committee  was  published  in Official  Journal  of the European 
Communities  No  C 204  of 6 September  1975,  page  2. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 2 September  1975,  the  Council  referred  the  abovementioned  proposal  to the 
Economic  and  Social  Committee  in accordance  with  Article  198  of the  Treaty 
establishing  the European  Economic  Community. 
No C 35/16 Official  Journal  of the European  Communities 16. 2. 76 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at 
its 135th  plenary  session,  held  in Brussels  on 26 and  27 November  1975. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the request  for an opinion  made  by 
the Council  on 2 September  1975, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  198 thereof, 
Having  regard  to the decision  taken  by its Bureau  on 
23 September  1975,  instructing  the  Section  for 
Industry,  Commerce,  Crafts  and  Services  to draw  up 
an opinion  and  a report  on the matter, 1.3. The  Committee  welcomes  the  Commission's 
proposal  for a new  Regulation  consolidating  Council 
Regulation  (EEC)  No 542/69  of 18 March  1969,  and 
all the subsequent  amendments  thereto.  This  means 
that it will  not  be necessary  to refer  to numerous 
documents  in order  to grasp  the significance  of the 
current  amendments. 
1.4. The  Committee  trusts  that  the  provisions 
under  review  will  be included  in the  consolidated 
instrument  once  they  have  been  adopted  by  the 
Council. 
Having  regard  to the  oral  report  made  by  the 
Rapporteur,  Mr de Grave; 
Having  regard  to the  opinion  issued  by the Section 
for Industry,  Commerce,  Crafts  and  Services  at its 
meeting  on 5 November  1975, 
Having  regard  to the discussions  at its 135th  plenary 
session,  held  on 26 and  27 November  1975  (meeting 
of 27 November), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 1.5. The  Community  transit  system  is the  basic 
customs  procedure  for trade  between  Member  States, 
and in improving  it account  must  be taken  not  only 
of the  general  and  commendable  desire  to simplify 
operations  but  also  of the  actual  situation  in 
Member  States.  For  instance,  it is true  to say  that 
simplifications,  such  as the  abolition  of certain 
documents,  could  be  counter-productive  if they 
result  in tighter  checks  by the  authorities.  Apart 
from  seeking  to improve  procedures,  it is therefore 
vital  to try to establish  optimum  conditions  for the 
operation  of  a truly  European  system.  It is 
particularly  necessary  to align  certain  provisions  in 
the field  of criminal  law.  This  alignment  is still  very 
far off at the moment. 
by a unanimous  vote: 2. Specific  comments 
The Committee  approves  the proposal,  subject  to the 
following  comments: 2.1. Article  1 
1. General  comments 
1.1. The  Committee  endorses  the  Commission's 
desire  for maximum  simplification  of the procedures 
for intra-Community  trade. 
1.2. The  Committee  is aware  of the  very  special 
importance  of the Community  transit  system;  this  is 
still the only  truly  European  customs  procedure,  and 
any improvement  to it has a special  significance. 2.1.1.  The  Committee  approves  the  abolition  of 
the TIF  procedure  for  intra-Community  traffic, 
which  is proposed  in the amendment  to Article  7 of 
Regulation  (EEC)  No  542/69.  It is pleased  to note 
that the railways  and  the  customs  authorities  of the 
Nine  are  cooperating  closely.  The  records  kept  by 
the railway  authorities  offer  sufficient  guarantees  to 
allow  the  system  introduced  by Regulation  (EEC) 
No 304/71  to be adopted  as the sole  procedure  for 
rail transport.  This  system  is based  on the  use  of 
international  consignment  notes  (CIM)  or 
international  express  parcel  consignment  notes. 
16. 2. 76 Official  Journal  of the  European  Communities No C 35/17 
2.2. Article  2 
2.2.1.  Article  27a 
2.2.1.1.  The  Committee  endorses  this  provision, 
which  enables  the  amount  of the  guarantee  to be 
varied  according  to the  risks  actually  involved.  The 
size of a good  number  of European  operators,  or the 
scale  of their  activities,  is such  a safeguard  in itself 
that the  formalities  and  costs  involved  in requiring  a 
guarantee  are not really  justified. 
2.2.2.  Article  27b 
2.2.2.1.  Whereas  Article  27a  allows  the authorities 
to fix  the  guarantee  on  a case-by-case  basis, 
'according  to  the  sufficiency  of the  principal', 
Article  27b  provides  for  total  exemption  from  the 
obligation  to furnish  a guarantee  in cases  where 
goods  are  in free  circulation  and  are  subject  only  to 
VAT.  (This  exemption  does  not  apply  to goods 
which  are  subject  to excise  duties  or other  taxes  on 
consumption).  The  Committee  cannot  but  approve 
this provision,  which  should  facilitate  intra-
Community  trade. 
2.2.2.2.  It  fears,  however,  that  this  provision  — 
commendable  though  it may  be in principle  — may have  harmful  effects  in practice,  in view  of the 
absence  of Community  provisions  for  the  collection 
of VAT  at Community  level,  and  for  taking  action 
against  offenders. 
2.2.2.3.  The  Committee  notes  with  regret  that  the 
only  provisions  governing  mutual  assistance  between 
Member  States  at  the  moment  are  the  non-
Community  provisions  laid  down  in the  Convention 
of Rome  of 7 September  1967. 
2.2.2.4.  The  VAT  rate  applied  to a particular 
article  in one  Member  State  may  be anything  up to 
three  times  the  rate  applied  in another  Member 
State.  Consequently,  if complete  exemption  from  the 
obligation  to furnish  a guarantee  is granted  to 
operators  regardless  of  their  standing,  national 
authorities  might  find  it  necessary  to  take 
precautionary  steps  and  carry  out  checks.  This 
would  make  the  situation  even  more  difficult  than  it 
is at present. 
2.2.2.5.  If  we  are  to arrive  at a really  simple 
Community  transit  system,  we  must  have 
Community  procedures  for  checking  operations  and 
taking  action  against  offenders.  This  would  also 
make  it possible  to abolish  transit  advice  notes, 
which  are  required  under  Article  22 of Regulation 
(EEC)  No 542/69. 
Done  at Brussels,  27 November  1975. 
The Chairman 
of the  Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the  proposal  for  a Directive  amending  the  Council  Directive  of 24 July 
1973  on the coordination  of laws,  regulations  and  administrative  provisions,  concerning 
the taking-up  and  pursuit  of activities  in direct  insurance  other  than  life  assurance 
The text  referred  to the  Committee  was  published  in Official  Journal  of the European 
Communities  No  C 243  of 23 October  1975,  page  10. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 1 October  1975,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community.