WRITTEN QUESTION No. 2573/96 by Amedeo AMADEO to the Commission. Duty free outlets
Date: 1996-10-11
Institutions: AMADEO, European Parliament
Subjects: aircraft, airport, charges for use of infrastructure, duty-free sale, exemption from customs duties, ferryboat, job cuts, single market, transport price













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91996E2573

WRITTEN QUESTION No. 2573/96 by Amedeo AMADEO to the Commission. Duty free outlets  


Official Journal C 083 , 14/03/1997 P. 0031 





WRITTEN QUESTION E-2573/96 by Amedeo Amadeo (NI) to the Commission (11 October 1996)Subject: Duty free outletsThe closure of duty free outlets in Europe is likely to result in the loss of many jobs in a sector employing approximately 100 000 people.The International Confederation maintains that the Community's estimates, which date back to 1993, are unacceptable and unrealistic; that closures would lead to an increase in transport costs for ferry companies and airlines and to higher airport taxes; and that the survival of regional airports would be threatened.Given the above, would the Commission not agree that it should carry out a new, exhaustive study on the overall impact of such a decision before taking any further action?Joint answer to Written Questions E-2573/96 and E-2690/96 given by Mr Monti on behalf of the Commission (20 December 1996)The decision to put an end to duty-free sales in travel inside the Community was taken by the Council in 1991.At that time the Council decided to allow intra-Community duty-free sales to continue until 30 June 1999, in order to enable the businesses affected to prepare gradually for the new situation. Member States were to take account of developments in transport infrastructures and of the interests of traders operating on a duty-free basis.The Commission recently presented a report on the vendor control systems applied by the Member States. ((COM(96) 245. )) The report uses statistical data and other information provided by Member States to carry out an economic analysis of tax-free sales and to identify the fundamental trends in tax-free sales in the Community. The report confirms that the Council decision was justified, and does not suggest any need for further study.Maintaining duty-free sales inside the Community beyond a transitional period:- would be contrary to the principles of the single market; and- might seriously distort competition, not only with businesses selling goods tax-paid, but more especially between the different forms of transport, depending on whether or not they offer duty-free sales.The same approach holds for regional airports; regional airports are not involved to any great extent in intra-Community international flights, which are the only flights which qualify for intra-Community tax-free treatment.Turning to the arguments regarding employment, the Commission would point out that the Council decision does not call for the closure of shops located in seaports and airports. These are free to continue to trade but will have to sell on a tax-paid basis to travellers inside the Community and on a tax-free basis only to travellers proceeding to destinations outside the Community.