WRITTEN QUESTION P-2439/01

by Ari Vatanen (PPE-DE) to the Commission

(3 September 2001)

Subject: Implementation of Directive 92/81/EEC (harmonisation of the structures of excise duties on mineral oils) and excise duty levied on the basis of a temperature other than 15 °C

In accordance with section 5 of the current Finnish law on excise duty on liquid fuels (No 1472 of 29 December 1994), excise duty and the charge levied to guarantee security of supply are calculated on the basis of a product temperature of 15 °C. According to the Finnish version of Article 3(1) of Council Directive 92/81/EEC(1) on the harmonisation of the structures of excise duties on mineral oils, those oils have to be subject in each Member State to a specific excise duty calculated per 1 000 litres of product at a temperature of 15 °C.

The Finnish petrol traders' association has learnt that both Denmark and Sweden have implemented the rule concerned in another way. Can other Member States follow a different practice in the matter regulated by the Directive? The question is highly significant for the Finnish fuel market. In Finland the average temperature is not 15 °C, but 8,8 °C. Elsewhere in Europe the temperature may well be 15 °C.

The Finnish petrol traders' association has calculated that: when a volume of 10 000 litres of fuel leaves the depot at a temperature of 15 °C, i.e. 10 000 litres, and the temperature has dropped to 8,8 °C by the time it reaches the trader, the volume delivered to the trader is 9 926 litres; if the fuel is sold to motorists when stored in an underground tank at a temperature of 5 °C, the volume falls to 9 881 litres, the trader first loses 74 litres, plus a further 45 litres at the time of sale, giving a total loss of 119 litres.

When the amount of fuel tax is approximately FIM 4,50, the tax shortfall on 10 000 litres is as much as FIM 535,50. Assuming that the average trader sells 1 300 000 litres a year, the tax shortfall is FIM 65 000 per trader. In Finland the total annual sales of 95 octane petrol are 1 483 656 tonnes, and the figure for all categories of motor petrol is 1 784 700 tonnes. Taking all traders together, the temperature-related operating loss in Finland is probably in the region of FIM 120 m.

Has the Directive been interpreted correctly in Finland? Could the law be amended at national level to enable the temperature laid down in section 5 of the Liquid Fuel Excise Duty Act to be changed from 15 °C to 9 °C?

(1) OJ L 316, 31.10.1992, p. 12.

Answer given by Mr Bolkestein on behalf of the Commission

(1 October 2001)

As the Honourable Member pointed out, Article 3 (1) of Council Directive 92/81/EEC of 19 Oktober 1992, on the harmonisation of the structures of excise duties on mineral oils(1), provides for a specific excise duty, per 1000 litres of product at a temperature of 15 °C. Council Directive 92/82/EEC of 19 Oktober 1992, on the approximation of the rates of excise duties on mineral oils(4), establishes

minimum excise duty rates on mineral oils, and Member States are free to establish their national rates at any level, providing that it will not be less than the corresponding Community rate.

According to Article 6 of Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products(2), excise duty payable on excisable goods, shall become chargeable at the time of release for consumption, i.e. at the time of departure of the mineral oils from a tax warehouse, or at the time of their importation.

The Commission fully agrees that it is important to ensure that at the time of release for consumption the calculation for taxation purposes of the volume of mineral oils is not altered by temperature effects whatever the season and irrespective of location from which the release for consumption takes place. In practice, this is achieved by using a common denominator applied Community wide, which converts the volume of each specific mass of mineral oils, measured under any ambient temperature, to the volume which corresponds to the standard temperature of 15 °C. Directive 92/81/EEC does not contain a conversion, method or guidance to national administrations concerning this conversion, apparently because existing international standards(3), established by specialised international organisations, cover this conversion in a sufficient manner. In fact, these organisations have established detailed scientific tables, containing corrective volume coefficients for each temperature and mineral oil specific mass.

According to the provisions of Directive 92/12/EEC, which contains the general arrangements for products subject to excise duty, and on the holding, movement and monitoring of such products, the excise duty to be paid is to be levied and collected according to the procedure laid down by each Member State.

The Commission has no evidence that Finland has incorrectly transposed the Community fiscal provisions mentioned above, and in particular those contained in Council Directives 92/81/EEC and 92/12/EEC. The Commission has regular contact with all Member States, either on a bilateral basis, or within the context of the Excise Committee, and this subject has not been raised. There appears no valuable reason for changing the standard temperature from 15 °C to 9 °C, as Member States can easily convert any volume of mineral oils measured under any ambient temperature to the volume which corresponds to the standard temperature of 15 °C.

(1) OJ L 316, 31.10.1992.

(2) OJ L 76, 23.3.1992.

(3) In particular American Society for Testing and Materials (ASTM) tables or International Organisation for Standardisation (ISO) 91/1/1982.

(4) OJ L 316, 31.10.1992.