Proposal for a COUNCIL DIRECTIVE AMENDING COUNCIL DIRECTIVE 94/4/EC of 14 February 1994 and introducing a temporary derogation applicable to Austria
Date: 1994-12-09
Institutions: European Commission
Subjects: Austria, Germany, customs territory (EU), duty-free sale, exemption from customs duties, travel

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(94) 604 final 
Brussels,  09.12.1994 

Proposal  for a 

COUNCIL  DIRECTIVE 

AMENDING COUNCIL DIRECTIVE 94/4/EC 
of 14 February  1994 and 
introducing a temporary derogation applicable to Austria 

(presented  by the Commission) 

EXPLANATORY  MEMORANDUM 

General background 

On 14 February  1994 the Council adopted, on a proposal from the Commission, Directive 
94/4/EC amending Directives 69/169/EEC and 77/388/EEC and increasing the level of 
allowances for travellers coming from third countries and the limits on tax-free purchases in 
intra-Community travel.1 

The maximum allowance for goods contained in the personal luggage of travellers coming 
from third countries, which had been set at ECU 45 since 1 January  1982, was increased to 
ECU  175 (ECU 90 for travellers under fifteen  years of age).  Quantity limits (for alcohol, 
tobacco, etc.) remained unchanged. 

This change took account  of: 

- 

- 

- 

- 

the need to resolve the practical difficulties  being encountered by individuals and 
administrations; 

the significant  increase in the quantity of goods likely to be purchased by travellers 
through existing commercial channels; 

the guidelines issued at international level, particularly by the OECD, in this connection; 

the specific difficulties  confronting  two Member States: 

* 

* 

the particular position of the Canary Islands, Ceuta and Melilla: until 31 December 
2000, special provisions (an allowance of ECU 600) will apply to goods imported by 
travellers entering mainland Spain and the Balearic Islands (Article  1(3) of the above 
Directive); 

the concerns of the Federal Republic of Germany, which has been authorized to  defer 
implementation of the provisions until  1  January  1998 as regards goods imported by 
land or by means of coastal navigation by travellers coming from countries other than 
EFTA members (Article 3(2) of the Directive). 

Parallel provisions (excluding the special treatment for the Canary Islands) have been adopted 
by the Council and are also applicable from  1  April  1994 on the basis of Regulation (EC) No 
355/94 of 14 February 1994.2 

1  OJ No L 60, 3.3.1994, p. 14. 
2  OJ No L 46,  18.2.1994, p. 5. 

Request bv the Republic of Austria 

Pursuant to Article 151(2) of the Act concerning the conditions of accession of the Kingdom 
of Norway, the Republic of Austria, the Republic of Finland and the Kingdom of Sweden and 
the adjustments to the Treaties on which the Union is founded, which is annexed to the 
Treaty concerning the accession of those countries, Austria is seeking a temporary derogation 
modelled largely on that applicable to Germany under Article 3(2) of Directive 94/4/EC. 

This request is based on similar arguments to those put forward by Germany: price 
differences between Austria and the countries on its eastern border, the practice of 
undertaking shopping trips and the difficulties involved in carrying out controls. 

Analysis 

In view of Austria's particular geographical position, the possible economic repercussions in 
this field and the similarity of the situations in Germany and Austria, it is necessary to 
introduce for Austria a derogation similar to that granted to Germany under Article 3(2) of 
Directive 94/4/EC. 

However, the situation would be as follows, regarding the amount of travellers allowances : 

-  ECU 175 for imports into ten of the existing Member States: 

-  until 31 December 2000, ECU 600 for imports into mainland Spain from the Canary 

Islands, Ceuta and Melilla; 

-  until  1  January  1998, maintenance of the allowance of ECU 45 for imports into Germany 

under the conditions laid down by Article 3(2) of Directive 94/4/EC; 

-  until that same date, maintenance of the limit of ECU 75 currently applied by Austria to 

imports by travellers coming from countries on its eastern border. 

This highlights the organizational and control problems which can arise in such circumstances. 
Differences in treatment must  also be avoided in respect of goods imported by travellers 
crossing external frontiers linking the Union to countries other than EFTA members. 

Accordingly, it is important that the Federal Republic of Germany and the Republic of Austria 
should be able to apply to goods imported into their respective territories by travellers coming 
from those countries a single allowance based on the ECU 75 allowance currently in force in 
Austria. 

As regards reliefs from customs duty for travellers coming from third countries, parallel 
provisions  amending Council Regulation (EC) No 355/94 of 14 February 1994 are the 
subject of a separate proposal. 

Proposal for a 
Council Directive 

AMENDING COUNCIL DIRECTIVE 94/4/EC 
of 14 February  1994 and 
introducing a temporary derogation applicable to Austria 
(presented by the Commission) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  the  Treaty  concerning 
the  accession  of  the  Kingdom  of  Norway,  the 
Republic  of Austria,  the Republic  of Finland  and  the  Kingdom  of  Sweden  to  the  European 
Union1  ,  and  in  particular  article  2(3)  thereof,  and  the  Act  concerning  the  conditions  of 
accession, and in particular article  151(2) thereof, 

Having regard to the proposal from the Commission,2 

Whereas, on 5 September  1994, the Republic of Austria requested a derogation based on that 
applicable  from  1  April  1994 to the Federal Republic of Germany pursuant to Article 3(2) of 
Directive  94/4/EC  amending  Directives  69/169/EEC  and  77/388/EEC  and  increasing  the 
level  of  allowances  for  travellers  coming  from  third  countries  and  the  limits  on  tax-free 
purchases in intra-Community travel;3 

limit 
Whereas  that  request  is  aimed  in  particular  at  maintaining  until  1  January  1998  the 
currently  applicable in the Republic  of Austria to  imports of goods  by travellers  entering  its 
territory by a land frontier linking it to  countries  other  than Member  States and  members of 
the European Free Trade Association (EFTA); 

Whereas  account  should  be  taken  of  the  economic  difficulties  likely  to  be  caused  in  the 
Republic of Austria by the amount of the allowances in the case of the travellers referred  to in 
the preceding recital; 

Whereas,  however,  it  is  necessary  to  prevent  distortions  of  competition  resulting  from  the 
application  of different  limits when the external  frontiers  linking the Community to  countries 
other than EFTA  members are crossed;  whereas it  is important  that  the Federal  Republic  of 
Germany  and  the Republic  of Austria  should  apply  the  same  limit  to  imports  of  goods  into 
their respective territories by travellers coming from the said countries; 

HAS ADOPTED THIS DIRECTIVE: 

1  OJ N°  C 241, 29.8.1994, p.9. 
2  OJ No C 
. 
, 
3 
.OJ No L 60, 3.3.1994, p.  14 

.1994, p. 

Article 1 

Directive 94/4/EC is hereby amended as follows: 

Article 3(2) is replaced by the following: 

"2.  By way of derogation from paragraph  1, the Federal Republic  of  Germany  and  the 
Republic of Austria shall be authorized to bring into force the measures necessary to 
comply  with  this Directive  by  1 January  1998  at  the  latest  for  goods  imported  by 
travellers entering  German  or  Austrian  territory  by a land frontier linking  Germany 
or Austria to countries other than Member States and the EFTA members or, where 
applicable, by means of coastal navigation coming from the said countries. 

However,  from  the  entry  into  force  of  the  Treaty  concerning  the  accession  of  the 
Kingdom  of  Norway,  the  Republic  of  Austria,  the  Republic  of  Finland  and  the 
Kingdom  of  Sweden  to  the  European  Union,  those  Member States  shall  apply  an 
allowance  of  not  less  than  ECU  75  to  imports  by  the  travellers  referred  to  in  the 
preceding subparagraph." 

Article 2 

1.  Subject to the entry into force  of the Treaty concerning the accession  ot the Kingdom  of 
Norway,  the Republic  of Austria,  the Republic  of Finland  and  the  Kingdom  of  Sweden, 
Member  States  shall  implement  the  law's,  regulations  and  administrative  provisions 
necessary  to  comply  with  this  Directive,  by  the  date  of  entry  into  force  of  this  Treaty. 
They shall forthwith  inform the Commission thereof. 

When  Member  States  adopt  these  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  shall  be  accompanied  by  such  reference  on  the  occasion  of  their  official 
publication.  The methods of making such a reference  shall be laid  down by the Member 
States. 

2.  Member  States  shall  communicate  to  the  Commission  the  text  of  the  provisions  of 

domestic law which they adopt in the field covered by this Directive. 

Article 3 

This Directive is addressed to the Member States. 

Done at Brussels,  December 1994. 

For the Council 

The President 

KSN 0254-1475 

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