WRITTEN QUESTION E-3312/98

by Giulio Fantuzzi (PSE) , António Campos (PSE) , Irini Lambraki (PSE) , Juan Colino Salamanca (PSE) and Georges Garot (PSE) to the Commission

(10 November 1998)

Subject: Alcohol exports to third countries

It would appear that the UCLAF and the judicial authorities of various Member States are conducting investigations into irregularities in exports of alcohol to third countries.

What controls are placed on exports to third countries and EU Member States?

Does the Commission intend to take action to step up controls and introduce procedures designed to prevent the occurrence of irregularities?

If it does, what approach does it intend to adopt?

Answer given by Mr Monti on behalf of the Commission

(22 January 1999)

Council Directive 92/12/EEC of 25 February 1992, as last amended by Directive 96/99/EC of 30 December 1996, on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products(1) stipulates in Article 18(1) that all products subject to excise duty (including therefore alcohol) moving under duty-suspension arrangements between Member States are to be accompanied by a document drawn up by the consignor and that this document may be either an administrative document or a commercial document. Commission Regulation (EEC) 2719/92 of 11 September 1992, as last amended by Regulation (EEC) 2225/93 of 27 July 1993, on the accompanying administrative document for the movement under duty-suspension arrangements of products subject to excise duty(2) established in a binding manner the form and content of the accompanying document. The document makes it possible to control such goods not only as regards movements between Member States (Article 18(1) of the aforementioned Directive) but also for exports to third countries (Article 19(4)).

However, in order to reinforce controls on such goods and to stem the fraud in respect of alcohol products referred to by the Honourable Member, the Commission presented a report by a high-level group on fraud in the tobacco and alcohol sectors to the meeting on 15 May 1998 of the Ecofin Council, which endorsed it, and to the Chairman of the Committee on Economic and Monetary Affairs and Industrial Policy. The report sets out a number of measures which the Commission is now implementing and which form part of the Commission's 1998/99 work programme for its fight against fraud.(3) These measures include a feasibility study on the computerisation of control and movement systems for goods subject to excise duty, the introduction of an early warning system, the drawing-up of a code of good conduct for granting and withdrawing operating licences for excise warehouses and the development of administrative cooperation via liaison offices in Member States.

As for exports of alcohol sold by tender to the countries of the Caribbean and Central America, the Commission requires tenderers to submit to checks by an international surveillance company (SGS). The costs of checks are borne fully by the tenderer. The final single destination of this alcohol is the fuel sector in the United States. In the past, the Commission put out to tender alcohol intended for the same use and for export to Brazil by requiring its denaturing before it left Community territory. Commission Regulation (EEC) 377/93 laying down detailed rules for the disposal of alcohol obtained from the distillation operations referred to in Articles 35, 36 and 39 of Regulation (EEC) 822/87 and held by intervention agencies(4) makes it possible to require the denaturing of alcohol.

(1) OJ L 8, 11.1.1997.

(2) OJ L 198, 7.8.1993.

(3) COM(98) 278 final.

(4) OJ L 43, 20.2.1993.