WRITTEN QUESTION E-1808/01

by Stavros Xarchakos (PPE-DE) to the Commission

(19 June 2001)

Subject: Illegal excavations and trade in antiquities in the Member States

The catalogue for the exhibition of Minoan antiquities held in the German city of Karlsruhe from 27 January to 29 April 2001 listed Minoan works of art such as vases, copper figurines, seals, necklaces etc. Eminent archaeologists claim that these objects come from illegal excavations in Crete and were found, inexplicably, to belong to the collection of an antique-shop owner in the Swiss city of Basle.

What is the Commission's position on illegal excavations and the trade in antiquities, which have become endemic in countries with large quantities of antiquities such as Greece and Italy? How can these phenomena - which is tantamount to looting the cultural treasures of our continent - be stopped? Does the Commission have any data to indicate the extent of illegal excavations and trade in antiquities in Greece?

What immediate measures could it take to stem the flow of cultural artefacts into private collections without the knowledge of the countries of origin of those artefacts? Is it true that the European Union collects revenue from value added tax of 2,5 % from the sale of antiquities? Does the Commission check whether that tax also comes from the sale of objects which have been illegally excavated and traded?

Answer given by Mr Vitorino on behalf of the Commission

(11 September 2001)

The Commission does not have detailed statistics but is informed and aware of the effects that illegal excavations and trafficking in antiquities have on the heritage of the Member States, especially in southern Europe. But it must emphasise that protection of the cultural heritage, including the protection of monuments and sites, is a matter for the Member States, Community action being confined to a support and backup function.

The Commission notes that there are great disparities between the Member States as regards the means and structures for combating illegal trafficking in cultural goods and that this is an area that does not yet enjoy the priority it deserves in the fight against organised crime and criminal gangs.

The Commission wishes to combat trafficking by acting on the prevention front. In May 2001, when the European Crime Prevention Forum was launched, it began studies with police and heritage protection authorities, insurers, dealers and collectors, on possible practical improvements. These would involve enhanced international police and administrative cooperation, the exchange of information on objects being sought, precautionary rules in dealings in sensitive goods, cooperation with the authorities in countries of origin of goods being trafficked, notably in terms of training and awareness, and informing collectors of the risks they sometimes run in terms of the international conventions already in force.

The Commission would inform the Honourable Member that in the European Economic Area cultural goods obtained as a result of illegal excavations and trafficking may be eligible for the protection offered by Council Regulation (EEC) No 3911/92 of 9 December 1992 on the export of cultural goods(1) and Council Directive 93/7/EEC of 15 March 1993 on the return of cultural objects unlawfully removed from the territory of a Member State(2). An action for the return of goods is also provided for internationally by the States that have ratified the 1995 Unidroit Convention on stolen or illegally exported cultural objects.

The Commission notes that, generally speaking, value added tax (VAT) applies to all sales of goods and supplies of services in the Community. Transactions in antiques are like any other transactions and are therefore taxed. Accordingly, if antiques are sold by a taxable person to Community residents, VAT at the appropriate rate is chargeable. If antiques are sold to non-Community residents, and the antiques are exported from the Community, no VAT arises. If antiques are imported into the Community and purchased by Community residents, or are purchased outside the Community and imported, then VAT is payable in the Community. If, on the other hand, antiques imported for resale are simply purchased for export, no VAT arises.

As regards the rate of VAT, again the general principle applying to other goods applies to antiques. This means that the standard rate of VAT should be applied, as antiques do not feature in Annex H to the Sixth VAT Directive(3), which is the list of supplies of goods and services to which a reduced rate can be applied.

Nevertheless, the Sixth VAT Directive permits Member States to apply the reduced rate of VAT (which cannot be lower than 5 %), to imports of antiques as defined in Annex I of that Directive. A list of the VAT rates charged by Member States on antiques can be found in the Commission publication VAT rates applied in the Member States of the European Community. This document is available at http://europa.eu.int/comm/taxation_customs/publications/info_doc/taxation/tva/taux_tva-2001-5-1en.pdf.

The Commission has no role in checking whether a Member State's VAT receipts have arisen as a result of legal or illegal transactions.

(1) OJ L 395, 31.12.1992.

(2) OJ L 74, 27.3.1993.

(3) Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes - Common system of value added tax: uniform basis of assessment. (OJ L 145, 13.6.1977), as last amended by Council Directive 2001/41/EC of 19 January 2001 (OJ L 22, 24.1.2001).