WRITTEN QUESTION No. 3657/95 by Kyösti TOIVONEN to the Commission. Excise duties on confectionery in the internal market (SUPPLEMENTARY ANSWER)
Date: 1996-01-12
Institutions: European Parliament, TOIVONEN
Subjects: Denmark, Finland, confectionery product, customs inspection, excise duty, intra-EU trade, single market













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91995E3657(01)

WRITTEN QUESTION No. 3657/95 by Kyösti TOIVONEN to the Commission. Excise duties on confectionery in the internal market (SUPPLEMENTARY ANSWER)  


Official Journal C 322 , 28/10/1996 P. 0001 





WRITTEN QUESTION E-3657/95 by Kyösti Toivonen (PPE) to the Commission (12 January 1996)Subject: Excise duties on confectionery in the internal marketIs the Commission aware of the following problems associated with the high excise duties on confectionery which are still applied in Finland and Denmark?Border checks have practically disappeared with EU membership, and the result has been a growing black market for illegally imported confectionery in these Member States. There is very little risk involved in evading the duty and the situation is a major concern for the legally operating confectionery importers, manufacturers and retailers.In Finland, the implementation of the excise duty regime has created bureaucratic obstacles for the intra-Union trade in confectionery. The collection regime serves as an effective barrier to the trade, while various confectionery exporting companies are presently unable to export to other Member States on competitive terms due to fallacies in the collection system.The harmonization of excise duties currently applies only to mineral fuels, alcohol and tobacco. There are, however, other excises such as the said confectionery taxes which create market distortions within the internal market.Under current EU legislation, Member States are allowed to introduce and maintain such national excise duties provided that they do not give rise to border-crossing formalities. It has turned out, however, that it is very difficult to maintain an excise duty on confectionery without introducing some degree of border control.Does the Commission agree that the present situation is not in compliance with the objectives of the internal market? If so, is the Commission going to use its powers under Article 99 of the Treaty of Rome to pursue necessary harmonization of legislation which would ensure the functioning of the internal market for confectionery?Supplementary answer given by Mr Monti on behalf of the Commission (10 July 1996)As the Honourable Member pointed out in his question, current EU legislation governing excise duties allows Member States to continue to apply national excise duties, even when set at a high level, other than those on mineral oils, alcohol, alcoholic beverages and manufactured tobacco. The legislature has endorsed this option provided that the introduction or maintenance of such national duties does not give rise to frontier-crossing formalities in trade between Member States.In response to the Honourable Member's question, the Commission has undertaken an assessment of the relevant taxation and collection procedures applicable in Denmark and Finland. It would point out that, since the facts of the matter will be difficult to ascertain, the exercise will take some time. The Commission would hope to be in a position to provide an exhaustive answer by the end of the summer.