Proposal for a COUNCIL DIRECTIVE on taxes other than turnover taxes which affect the consumption of manufactured tobacco - consolidated text -
Date: 1994-10-03
Institutions: European Commission
Subjects: excise duty, tax harmonisation, tax on consumption, tobacco, tobacco industry

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(94) 355  final 

Brussels,  03.10.1994 

94/0204  (CNS) 

Proposal  for  a 
COUNCIL  DIRECTIVE 
on taxes other than turnover  taxes which  affect  the consumption  of 
manufactured  tobacco 

consolidated  text 

(presented  by the  Commission) 

EXPLANATORY MEMORANDUM 

1. In the context of a people's Europe, the Commission attaches great  importance 
to simplifying  and clarifying Community law so as to make  it clearer and more 
accessible  to the ordinary citizen, thus giving him new opportunities  and the 
chance to make use of the specific rights it gives him. 

This  aim  cannot  be  achieved  so  long  as  numerous  provisions  which  have  been 
amended  several  times,  often  quite  substantially,  remain  scattered;  so  that 
they  must  be  sought  partly  in  the  original  instrument  and  partly  in  later 
amending  ones.  Considerable  research  work,  comparing  many  different 
instruments, is thus needed to identify the current rules. 

For this reason a consolidation of rules that have frequently been amended is 
essential  if Community law is to be clear and transparent. 

2. 

By  its decision  of  1 April  1987 the  Commission  instructed  its  departments 
to  produce  a  formal  consolidated  version  of  legislative  instruments  no 
later  than after  their tenth amendment, but made  it clear  that  this was a 
minimum requirement, and that in the interests of clarity and of the ready 
comprehension of Community law, an effort should be made by each department 
to consolidate the instruments for which it is responsible at more frequent 
intervals. 

3. The  attached  proposal  of  the  Commission  of  Council  Directive  on  taxes  other 
than  turnover  taxes  which  affect  the  consumption  of  manufactured  tobacco, 
combining the following directives into a single text: 

Council  Directive  72/464/EEC  of  19  December  1972  on  taxes  other  than 
turnover  taxes  which  affect  the  consumption  of  manufactured  tobacco  (as 
amended 13 times) 

and 

Second Council Directive 79/32/EEC of 18 December 1978 on taxes other than 
turnover taxes which affect the consumption of manufactured tobacco, 

has  been  drafted  in  accordance  with  the  fundamental  principles  agreed  by 
Council,  Parliament  and  the  Commission  in  1974;  it  aims  at  legislative 
consolidation: the existing Directives would be replaced by one new one, which 
would  leave  their  substance  untouched  but  would  assemble  them  into  a  single 
text, with only the formal amendments required by the operation itself. 

4. As in the past the text supplied here is collated from the original Directives 
as published  in  the  Official  Journal; the  use  of photocopies  means  that  any 
improvements  to  the  wording  are  immediately  identifiable.  The  old  numbering 
of the Articles has been retained in the margin for ease of reference, the new 
numbering  being  entered  above  the  Articles: Annex II  contains  a  concordance 
table  relating  the  old  system  of numbering  to  the new.  In order  to  preserve 
the  dates  for  transposai  of all the Directives  concerned,  an Annex  (Annex I, 
Part B)  lists  the  deadline  for  implementation  of  each  of  the  Directives  now 
being repealed. 

-  3  -

LIST OF DIRECTIVES 

1.  Council  Directive  72/464/EEC  of  19  December  1972  on  taxes  other 
than  turnover  taxes  which  affect  the  consumption  of  manufactured 
tobacco. 
(OJ No L 303, 31.12.1972, p. 1) 

modified by Directives; 

74/318/EEC  (OJ No L 180, 3.7.1974, p. 30) 
75/786/EEC  (OJ No L 330, 24.12,1975, p. 51) 
76/911/EEC  (OJ No L 354, 24.12.1976, p. 33) 
77/805/EEC  (OJ No L 338, 28.12.1977, p. 22) 
80/369/EEC  (OJ No L 90, 3.4.1980, p. 42) 
80/1275/EEC  (OJ No L 375, 31.12.1980, p. 76) 
81/463/EEC  (OJ No L 183, 4.7.1981, p. 32) 
82/2/EEC 
82/877/EEC  (OJ No L 369, 29.12.1982, p. 36) 
84/217/EEC  (OJ No L 104, 17.4.1984, p. 18) 
86/246/EEC  (OJ No L 164, 20.6.1986, p. 26) 
(OJ No L 316, 31.10.1992, p. 5) 
92/78/EEC 

(OJ No L 5, 9.1.1982, p. 11) 

modified by; 

Acts  of Accession  of Spain and Portugal  (OJ No L  302, 15.11.1985, 
p.  167 and  168) 

2.  Council  Directive  79/32/EEC;  Second  Council  Directive  of  18 
December  1978 on  taxes  other  than turnover  taxes which  affect the 
consumption of manufactured tobacco. 
(OJ No L 10, 16.1.1979, p. 8) 

modified by Directives ; 

80/369/EEC  (OJ No L 90, 3.4.1980, p. 42) 
92/78/EEC 

(OJ No L 316, 31.10.1992, p. 5) 

modified by; 

Acts  of Accession  of  Spain  and  Portugal  (OJ No L  302, 15.11.1985, 
p. 168). 

-  4  -

Proposal  for  a 
COUNCIL  DIRECTIVE 

on  taxes  other  than  turnover  taxes  which  affect  the  consumption  of  manu 

factured  tobacco 

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 t 

Having  regard  to  the  opinion  of  the  European  Par 
liament  ( l li 

Having  regard  to  the  opinion  of  the  Economic  and  Social 
Committee  ( 2 ), 

Directive 

1)  Whereas  Council  Directive  72/464/EEC  of 19 December 
1972.on  taxes  other  than  turnover  taxes which  affect 
the  consumption  of  manufactured  tobacco*3'  and 
Council 
Council 
Directive  of  18  December  1978 on taxes  other  than 
turnover  taxes  which  affect  the  consumption  of 
manufactured  tobacco***  have  been amended 
substantially and on a number of occasions; whereas for 
reasons  of  clarity  and  rationality  the  said 
Directives  should be consolidated  in a single  text; 

79/32/EEC, 

Second 

(1) 
(2) 
(3) OJ No L 303, 31.12.1972, p. 1. Directive as last  amended  by Directive 

92/78/EEC  (OJ No  L 316,  31.10.1992, p.  5 ). 

(4) OJ No L 10, 16.1.1979, p. 

8. Directive  as last  amended  by Directive 

92/78/EEC. 

-  5  -

Whereas  the  objective  of  the  Treaty  is  to  estab 
lish  an  economic  union  within  which  there  is 
healthy  competition  and  whose  characteristics 
are  similar  to  those  of  a  domestic  market; 
and,  as  regards  manufactured  tobacco,  achieve 
ment  of  this  aim  presupposes  that  the  appli 
cation  in  the  Member  States  of  taxes  affecting 
the  consumption  of  products  in  this  sector  does 
not  distort  conditions  of  competition  and  does 
not  impede  their  free  movement  within 
the 
Community; 

Whereas,  as  far  as  excise  duties  are  concerned, 
harmonization  of  structures  must,  in  particular, 
result  in  competition  in  the  different 
categories  of  manufactured  tobacco  belonging 
to  the  same  group  not  being  distorted  by  the 
effects  of  the  charging  of  the  tax  and,  conse 
quently,  in  the  opening  of  the  national  markets 
of  the  Member  States; 

Whereas  the  structure  of  the  excise  duty  on  cigarettes 
must  include,  in  addition  to  a  specific  component 
calculated  per  unit  of  the  product,  a  proportional 
component  based  on  the  retail  selling  price, inclusive 
of  all taxes ; whereas the  turnover  tax on  cigarettes has 
the  same  effect  as  a  proportional  excise  duty  and  this 
fact  should  be  taken  into  account  when  the  ratio 
between  the  specific  component  of  the  excise duty  and  the 
total  tax  burden  is  being  established ; 

the  above-
Whereas,  as  regards  cigarettes, 
mentioned  objective 
is  best  achieved  by  a 
system  which  provides  for  a  degression  in  the 
incidence  of 
this 
purpose,  the  tax  imposed  on  these  products 
should  consist  of  a  proportional  excise  duty 
combined  with a specific excise duty, the  amount 
of  which  is  fixed  by  each  Member  State  in 
accordance  with  Community  criteria; 

tax  and  whereas  for 

the 

1. 

72/464/EEC 

5.  72/464/EEC 

4. 

77/805/EEC 

6. 

72/464/EEC 

Whereas  the  structures  for  excise  duties  on 
tobacco  should  be  harmonized 
manufactured 
by  stages; 

Whereas  the  imperative  needs  of  competition 
imply  a  system  of  freely  formed  prices  for  all 
groups  of  manufactured  tobacco; 

72/464/EEC 

8. 

72/464/EEC 

Whereas  there  are  several  types  of  manufactured 
tobacco,  distinguished  by  their  characteristics  and  by 
the  way  in  which  they  are  used ; 

79/32/EEC 

3) 

4) 

5) 

6) 

7' 

8) 

9) 

10) 

11) 

12) 

13) 

14) 

15) 

16) 

-  6  -

these  different 

Whereas 
tobacco  should  be  defined ; 
Whereas, for  economic  reasons, temporary  derogations 
should  be  provided  for  certain  Member  States^ 

types  of  manufactured 

Whereas 

-

-- 

— •

*_~  a distinction  needs  to 
be  made  between  fine-cut  tobacco  for  the  rolling  of  ciga 
rettes  and  other  smoking  tobacco ; 

•  >. 

— 

a 
Whereas 
manufacturer  needs  to  be  defined  as  a  natural  or  legal 
person  who  actually  prepares  tobacco  products  and  sets 
the  maximum  retail  selling  price  for  each  of  the  Member 
States  for  which  the  products  in  question  are  to  be 
released  for  consumption ; 

Whereas  a  majority  of  Member  States  grant  exemptions 
from  excise  duty  or  make  refunds  of  excise  duty  in 
respect  of  certain  types  of  manufactured  tobacco  depen 
ding  on  the  use  which  is  made  of  them,  and  whereas  the 
exemptions  or  refunds  for  particular  uses  need  to  be 
specified  in  this  Directive ; 

79/32/EEC 

79/32/EEC 

9 2 / 7 8 / E . E: 

(adapted] 

92/78/EEC 
(adapted) 

7. 

92/78/EEC 

Whereas  rolls  of  tobacco  capable  of  being  smoked  as  they 
are  after  simple  handling  should  also  be  deemed  to  be 
cigarettes  for  the  purposes  of  uniform  taxation  of  these 
products ; 

Whereas  Germany  should  be  authorized  to  tax  rolls  at 
least  at  the  rate  or  amount  applicable  to  fine-cut  tobacco 
for the  rolling of  cigarettes  until  31  December  1998  at the 
latest; 

9. 

92/78/EEC 

10. 

92/78/EEC 

this  Directive  must  not  affect  the 

Whereas 
obligations  of Member  States concerning the 
deadlines  for implementation of the Directives set 
out in Annex I, Part  Br 

HAS  ADOPTED  THIS  DIRECTIVE: 

-  7  -

TITLE  I 

General  principles 

Article  1 

T he  structure  of  the  excise  duty  to  which 
1. 
the M e m b er  States subject  manufactured  tobacco 
shall  be  harmonized  in  several  stages. 

2. 
T h is  Directive  lays d o wn  general  principles 
for  this  harmonization,  as  well  as  the  special 
criteria  applicable  during 
harmonization. 

the  s t a g es  of 

7 2 / 4 6 4 / E EC 

T he  transition  from  o ne  stage  of  h a r m o n 
3. 
ization  to  the  next  shall  be  decided  on  by  the 
Council  on  a  proposal  from  the  Commission, 
taking  into  account  the  effects  produced  during 
the  stage  in  progress  by  the  measures  introduced 
their  system  of 
by 
excise  duties 
the 
that  stage.  T he 
provisions  applicable  during 
transition 
the  next  may 
be  deferred  especially  if  it  is  likely  to  involve 
disproportionate  losses  of  revenue  for  a  M e m b er 
State. 

the  Member  States 
in  order 

into 
to  comply  with 

from  one  stage 

to 

Article 2 

A r t i c le  3 

T he  following  shall  be  considered  to  be 

1. 
manufactured  tobacco: 
(a)  cigarettes; 
(b)  cigars  and  cigarillos; 
(c)  smoking  tobacco 

—  fine-cut 

tobacco  for 

the  rolling  of  ciga 

rettes, 

—  other  smoking  tobacco  ; 

defined  in  Articles  3  to 7. 

2. 
from 
T he  Council  shall,  on  a  proposal 
the  Commission,  adopt  the  provisions  necessary 
to  determine  the  way  in  which  manufactured 
tobacco  should  be  defined  and  classified 
in 
groups. 

92/78/EEC 

79/32/EEC  (adapted) 
Article 1, (1) 

72/464/EEC 

7 9 / 3 2 / E EC 
( a d a p t e d) 

A r t i c le  1 

Article  2 

7 9 / 3 2 / E EC 

-  8  -

Notwithstanding 

3- 
existing  Community  provi 
sions,  the  definitions  referred  to  in  Articles 3 
tc  7 
shall  be  without  prejudice  to  the  choice  of  system  or 
the  level  of  taxation  which  shall  apply  to  the  different 
groups  of  products  referred  to  in  these  Articles. 

Article  3 

The  following  shall  be  deemed  to  be  cigars  or  ciga 
rillos  if  they  can  be  smoked  as  they  are : 

1.  rolls  of  tobacco  made  entirely  of  natural  tobacco ; 

2.  rolls  of  tobacco  with  an  outer  wrapper  of  natural 

tobacco ; 

tobacco  with  an  outer  wrapper  of 

rolls  of 
the 
normal  colour  of  a  cigar,  and  a  binder,  of  reconsti 
tuted  tobacco, 
— 
where  at  least  60  % 
by  weight  of  the  tobacco  particles  are  both  wider 
and  longer  than  1-75  mm  and  where  the  wrapper 
is  fitted  in  spiral  form  with  an  acute  angle  of  at 
least  30°  to  the  longitudinal  axis  of  the  cigar ; 

4.  rolls  of  tobacco  with  an  outer  wrapper,  of 

the 
normal  colour  of  a  cigar,  of  reconstituted  tobacco, 

where 

the  unit  weight,  not 
including  filter  or  mouth-piece,  is  not  less  than  2-3 
g  and  if  at  least  60 %  by  weight  of  the  tobacco 
particles  are  both  wider  and  longer  than  175  mm 
and  the  circumference  over  at  least  one  third  of  the 
length  is  not  less  than  34  mm. 

Article  4 

A r t i c le  3 

1.  The  following  shall  be  deemed  to be  cigarettes : 

92/78/EEC 

(a)  rolls  of  tobacco  capable  of  being  smoked  as  they 
are and  which  are  not  cigars  or cigarillos within  the 
meaning  of  Article  3 ; 

(b)  rolls  of  tobacco  which,  by  simple  non-industrial 
handling,  are  inserted  into  cigarette-paper  tubes ; 

(c)  rolls  of  tobacco  which,  by  simple  non-industrial 

handling,  are  wrapped  in  cigarette  paper. 

Until  31  December  1998,-
Germany  shall  be  authorized  to  tax  the  rolls  of  tobacco 
referred  to  in  (b)  at  least  at  the  rate  or  amount  appli 
cable  to  fine-cut  tobacco  for  the  rolling  of  cigarettes. 

(adapted) 

-  9  -

2.  A  roll  of  tobacco  referred  to  in  paragraph  1 shall, 
for  excise  duty  purposes,  be  considered  as  two  ciga 
rettes  where,  excluding  filter  or  mouthpiece,  it  is 
longer  than  9  cm  but  not  longer  than  18  cm,  as  three 
cigarettes  where,  excluding  filter  or  mouthpiece,  it  is 
longer  than  18  cm  but  not  longer  than  27  cm,  and  so 

7 9 / 3 2 / E EC 

Article  5 

A r t i c le  4 

following  shall  be  deemed 

The 
tobacco : 

to  be  smoking 

1.  tobacco  which  has  been  cut  or  otherwise  split, 
twisted  or  pressed  into  blocks  and  is  capable  of 
being 
industrial 
processing ; 

smoked  without 

further 

2.  tobacco  refuse  put  up  for  retail  sale  which  does  not 
fall  under  Articles  S'  and  4  and  which  can  be 
smoked. 

Article  6 

in  Article  5 

Smoking  tobacco  as  defined 
in  which 
more  than  25  %  by  weight  of  the  tobacco  particles 
have  a  cut  width  of  less  than  1  millimetre  shall  be 
deemed  to  be  fine-cut  tobacco  for  the  rolling  of  ciga 
rettes.  Member  States  which  do  not  apply  this  cut 
width  of  1  millimetre  on  1  January  1993  shall  have 
until  31  December  1997 to  comply  with  this  provision. 

than  25 %  by  weight  of  the 

Member  States  may  also  deem  smoking  tobacco  in 
which  more 
tobacco 
particles  have  a  cut  width  of  more  than  1  millimetre 
and  which  was  sold  or  intended  to  be  sold  for  the 
tobacco  for  the 
rolling  of  cigarettes  to  be  fine-cut 
rolling  of  cigarettes. 

Article  7 

in  part  of 
otherwise 

in  whole  or 
but 
tobacco 

Products  consisting 
than 
other 

\. 
substances 
conforming  to  the  criteria  Set  out  in  A r t i c le  3  s h a ll 
be  treated  as  cigars  and  cigarillos  provided  they 
have  respectively: 
—  a  wrapper  of  natural  tobacco, 
—  a  wrapper  and  binder  of  tobacco,  both  of  reconsti 

tuted  tobacco. 

—  a  wrapper  of  reconstituted  tobacco. 

(adapted) 

A r t i c le  4  (a) 

9 2 / 7 8 / E EC 

Article  7 

7 9 / 3 2 / E EC 
( a d a p t e d) 

79/32/EEC 

( a d a p t e d) 

A r t i c le  4 

7 2 / 4 6 4 / E EC 

9 2 / 7 8 / E EC 

7 7 / 8 0 5 / E EC 

7 2 / 4 6 4 / E EC 

Article 5 

92/78/EEC 

-  10 

-

Products  consisting 
than 
other 

2. 
substances 
conforming  to  the  criteria  set  Out  in  A r t i c le  4  Or  5 
shall be treated as cigarettes and smoking tobacco. 

in  whole  or 
but 
tobacco 

in  part  of 
otherwise 

the 

first 

subparagraph,  products 
Notwithstanding 
containing  no 
for 
medical  purposes  shall  not  be  treated  as  manufactured 
tobacco. 

tobacco  and  used  exclusively 

Article  8 

-Cigarettes  manufactured  in  the  Commu 
nity  and  those  imported  from  non-member  countries 
excise 
shall  be  subject 
duty  calculated  on 
— 
m a x i m um  retail  selling  price,  including  customs 
duties,  and  also  to  a  specific  excise  duty  c a l 
culated  per  unit  of  the  product. 

p r o p o r t i o n al 

the  — =— 

to  â 

2. 
T he  rate  of  the  proportional  excise  duty 
and  the  a m o u nt  of  the  specific  excise  duty  must 
be  the  same  for  all  cigarettes. 

3.  At  the  final  stage  of  harmonization  of  struc 
tures,  the  same  ratio  shall  be  established  for  ciga 
rettes  in  all  Member  States  between  the  specific 
excise  duty  and  the  sum  of  the  proportional  excise 
duty  and  the  turnover  tax,  in  such  a  way  that  the 
the 
range  of  retail  selling  prices  reflects  fairly 
in  the  manufacturers-'  delivery  prices. 
difference 

the  excise  duty  on 
4.  Where  necessary, 
tax  com 
cigarettes  may 
ponent,  the  ceiling  for  which  shall  be  deter 
mined-  for  each  stage  by 
the  Council  on  a 
proposal  from  the  Commission. 

include  a  m i n i m um 

Article  9 

1.  A natural or legal person established in 
the Community who converts tobacco into manu 
factured products prepared for retail sale shall 
be deemed to be a manufacturer. 

Manufacturers, or, where appropriate, their 
representatives or authorized-agents in the 
Community and importers of tobacco from non-
member countries shall be free to determine the 
maximum retail selling price for each of their 
products for each Member State for which the 
products in Question are to be released for consumption. 

The second paragraph may not, however, hinder 
implementation of national systems of legis 
lation regarding the control of price  levels or 
the observance of imposed prices, provided that 
they are compatible with Community legislation. 

-  11  -

levying 

In  order  to  f a c i l i t a te  the 

2. 
- — of  the  excise  duty,  Member  States  may, 
for  each  group  of  manufactured  tobacco,  fix 
a  scale  of  retail  selling  prices  on  condition  that 
each  scale  has  sufficient  scope  and  variety  to 
correspond  in  fact  with  the  variety  of  Com 
munity  products.  Each  scale  shall  be  valid  for 
all  the  products  belonging  to  the  group  of 
manufactured  tobacco  which  it  concerns,  with 
out  distinction  on  the  basis  of  quality,  presenta 
the 
tion,  the  origin  of 
materials  used, 
the 
the 
undertakings  or  of  any  other  criterion. 

the  products  or  of 
characteristics  of 

7 2 / 4 6 4 / E EC 

Article  10 

1.  At  the  final  stage  at  the  latest  the  rules 
for  collecting  the  excise  duty  shall  be 
harmonized. 

Article  6 

During  the  preceding  stages  the  excise  duty 
shall,  in  principle,  be  collected  by  means  of 
tax  stamps.  If  they  collect  the  excise  duty  by 
means  of  tax  stamps, 
Member  States  shall 
be  obliged  to  make  these  stamps  available  to 
other  Member 
manufacturers  and  dealers  in 
States. 
the  excise  duty  by 
other  means, 
Member  States  shall  ensure 
that  no  obstacle,  either  administrative  or 
technical,  affects  trade  between 
Member 
States  on  that  account. 

they  collect 

If 

2. 
Importers  and  national  manufacturers  of 
manufactured  tobacco  shall  be  subject  to  the 
system  set  out  in  paragraph  1 as  regards  the 
detailed  rules  for  levying  and paying  the  excise 
duty. 

Article  11 

Article  6  (a) 

9 2 / 7 8 / E EC 

The  following  may  be  exempted  from  excise  duty  or 
excise  duty  already paid on  them  may be  refunded : 

(a)  denatured  manufactured  tobacco  used  for  industrial 

or  horticultural  purposes ; 

(b)  manufactured  tobacco  which  is  destroyed  under 

administrative  supervision ; 

(c)  manufactured  tobacco  which  is  solely  intended  for 
scientific  tests  and  for  tests  connected  with  product 
quality ; 

(d)  manufactured  tobacco  which  is  re-worked  by  the 

producer. 

Member  States  shall  determine  the  conditions  and 
formalities  to  which  the  abovementioned  exemptions 
or  refunds  are  subject. 

-  12 

-

TITLE  II 
Special  provisions  applicable  during  the  first 
stage  of  harmonization 

7 2 / 4 6 4 / E EC 

Article  12 

A r t i c le  7 

1. 
Subject  to  Article  1 (4),  the  first  stage  of 
harmonization  of  the  structures  of  the  excise 
duty  on  manufactured 
tobacco  shall  cover  a. 
period  of  60  months from  1 July  1973. 

During  the  first  stage  of  harmonization 

2. 
Articles  13  and  14  shall  be  applicable. 

Article  13 

The  amount  of  the  specific  excise  duty 
1. 
levied  on  cigarettes  shall  be  established  for  the 
first  time  by  reference  to  cigarettes  in  the  most 
popular  price  category  according  to  the  data 
available  on  1 January  1973. 

2. 
"Without  prejudice  to  the  solution  to  be 
finally  adopted  regarding  the  ratio  between  the 
specific  component  and  the  proportional  com 
ponent,  the  amount  referred  to  in  paragraph  1 
may  not  be  lower  than  5% or  higher  than  75% of 
the  aggregate  amount  of  the  proportional  excise 
duty  and  the  specific  excise  duty  levied  on  these 
cigarettes. 

If  the  excise  ctoty  on  the  price  category 

3. 
referred  to  in  paragraph  1  is  amended  after 
1  January  1973,  the  amount  of  the  specific 
excise  duty  shall  be  established  by  reference 
to  the  new  tax  burden  on  the  cigarettes  referred 
to  in  paragrqph  1. 

A r t i c le  14 

Notwithstanding Article 8(1), each Member State 
may exclude customs duties from the basis for 
calculating the proportional excise duty on 
cigarettes. 

77/805/EEC 

(adapted) 

A r t i c le  8 

A r t i c le  9 

( a d a p t e d) 

TITLE 

In 

Special  provisions  applicable  during  the  second 
stage  of  harmonization 

Article  15 

the 
The  second  stage  of  harmonization  of 
I. 
structures  of  the  excise  duty  on  manufactured  tobacco 
shall  run  from  I  July  1978. 

7 7 / 8 0 5 / E EC 
( a d a p t e d) 

A r t i c le  10  (a) 

8 6 / 2 4 6 / E EC 

During  the  second  stage  of  harmonization 

2. 
Article  16  shall  apply 

77/805/EEC 
(adapted) 

-  13  -

Article  16 

The  amount  of  the  specific  excise  duty  on 
1. 
cigarettes  shall  be  established  bv  reference  to  ciga 
rettes  in  the  most  popular  priée  category  according 
to  the  information  available  at  1  January  each 
year,  beginning  1 January  1V7X 

2. 
The  specific  component  of  the  excise  duty 
may  not  be  less  than  5 %  or  more  than  55 %  of 
the  amount  of  the  total  tax  burden  resulting  from 
the  aggregation  of  the  proportional  excise  duty, 
the  specific  excise  duty  and  the  turnover  tax  levied 
on  these  cigarettes. 

If  the  excise  duty  or  the  turnover  tax 

3. 
levied  on the  price  category  referred  to  in 
paragraph  1  >s amended  —— 
-
after  1  January  1978,  the  amount  of  the  specific 
excise  duty  shall  be  established  by  reference  to  the 
new  total  tax  burden  on  the  cigarettes  referred  to 
in  paragraph  1. 

4.  Notwithstanding  Article  8  (1),  each  Member 
State  may  exclude  customs  duties  from  the  basis 
for  calculating  the  proportional  excise  duty  on 
cigarettes. 

5.  Member  States  may  levy  a  minimum  excise  duty 
on  cigarettes  and  on  fine-cut  tobacco  for  the  rolling  of 
cigarettes,  provided  that this does  not  have  the  effect  of 
raising  the  total  tax  to  more  than  90  %  of  the  total  tax 
on  the  most  popular  price  category  of  cigarettes  or  the 
most  popular  price  category  of  fine-cut  tobacco  for  the 
rolling  of  cigarettes  respectively. 

A r t i c le  10  (b) 

7 7 / 8 0 5 / E EC 

(adapted) 

9 2 / 7 8 / E EC 

-  14 

-

TITLE  IV 

Final  provisions 

Article  17 

Where  necessary, 
the  Council  shall,  on  a 
proposal  from  the  Commission,  adopt  provi 
this  Directive. 
sions  for 

the  application  of 

Article  18 

7 2 / 4 6 4 / E EC 
( a d a p t e d) 

the  Commission 

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

text  of 

A r t i c le  19 

The  Directives  listed  in  Annex  I, Part  A  are 
repealed, without prejudice to the obligations 
of the Member States concerning the time-limits 
for implementation set out in Annex I, Part B. 

References  to the repealed Directives  shall  be 
construed  as  references  to  this Directive  and 
Shall 
be  read  in  accordance  with  the 
correlation  table set out  in Annex II. 

Article 20 

This Directive shall enter into force on the twentieth day 
following that of its publication in the Official Journal of 
the European Communities. 

Article 21 

This  Directive  is  addressed  to  the  Member  States. 

Done at Brussels, 

For the Council 

The President 

-  15 

-

ANNEX I 

PART A 

REPEALED  DIRECTIVES 
(referred  to in Article  19) 

1.  Directive  72/464/EEC 

2.  Directive  79/32/EEC 

and their  successive amendments: 

Directive 74/318/EEC 

Directive 75/786/EEC 

Directive 76/911/EEC 

Directive  77/805/EEC 

Directive  80/369/EEC 

Directive 80/1275/EEC 

Directive 81/463/EEC 

Directive 82/2/EEC 

Directive 82/877/EEC 

Directive 84/217/EEC 

Directive 86/246/EEC 

Directive  92/78/EEC 

16 

PART B 

Time-limits for  implementation 

T.7.1973 

(1) 

1.1.1980 

1.1.1986 

31.12.1992 

Di rective 

- 72/464/EEC 

-  79/32/EEC 

- 74/318/EEC 

- 75/786/EEC 

- 76/911/EEC 

-  77/805/EEC 

- 80/369/EEC 

- 80/1275/EEC 

- 81/463/EEC 

- 82/2/EEC 

- 82/877/EEC 

- 84/217/EEC 

- 86/246/EEC 

- 92/78/EEC 

^  The United  Kingdom and  Ireland were allowed to postpone this 

time-limit  until 31,12.1977. 

-17-

ANNEX II 

CORRELATION TABLE 

This Directive 

Directive 72/464/EEC 

Directive 79/32/EEC 

Title I 
Article 1, 
Article 1, 
Article 2, 
Article 2, 
Article 
Article 
Article 
Article 
Article 
Article 8 
Article 9 
Article 10 
Article 11 
Title II 
Article 12 
Article 13 
Article 14 
Title III 
Article 15 
Article 16 
Title IV 
Article 17 
Article 18 
Article 19 
Article 20 
Article 21 

(1) and (2) 
(3) 
(1) and  (2) 
(3) 

Title I 
Article  1, (1) and  (2) 
Article 1, (4) 
Article 3,  (1) and  (2) 

(1) 
(2) 

Article 1, 
Article 1, 
Article 
Article 
Article 
Article 
Article 

(a) 

Article 4 
Article 5 
Article 6 
Article 6 (a) 
Title II 
Article 7 
Article 8 
Article 9 
Title II (a) 
Article  10 (a) 
Article  10 (b) 
Title III 
Article 11 
Article  12,  (2) 

Article 13 

Article 10 

ISSN 0254-1475 

COM (94) 355 final 

DOCUMENTS 

EN 

09  03 

Catalogue number : CB-CO-94-368-EN-C 

ISBN 92-77-72120-0 

Office for Official  Pablications of the European Communities 
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