WRITTEN QUESTION No. 2868/97 by Florus WIJSENBEEK to the Commission. Special derogation for tax-free sales
Date: 1997-09-11
Institutions: European Parliament, WIJSENBEEK
Subjects: VAT, carriage of goods, derogation from EU law, duty-free sale, excise duty, restriction on competition, single market

C 174/16

EN

Official Journal of the European Communities

8. 6. 98

(98/C 174/47)

WRITTEN QUESTION E-2868/97

by Florus Wijsenbeek (ELDR) to the Commission

(11 September 1997)

Subject: Special derogation for tax-free sales

The Commission is, no doubt, aware that the sale of tax-free goods within the EU will cease with effect from
1 January 1999 pursuant to Council Directive 92/12/EEC (1), thereby preventing unfair competition and speeding
up creation of the internal market.

Is the Commission aware that derogations have been made to this scheme and that the new directive on tax-free
goods will not apply to the following territories: Heligoland and Bu¤singen (Germany); the Canary islands and the
enclaves of Ceuta and Melilla (Spain); Athos (Greece); Livigno, Camione d(cid:146)Itala and the Italian waters of Lake
Lugano (Italy); Gibraltar (United Kingdom); and the ¯land Islands (Finland)?

Can the Commission explain the reasons for these derogations, since at no point are they clearly set out in the acts
of accession?

Does the Commission not feel that these derogations are an infringement of EU legislation in this field, that they
involve unfair competition, and that they might give rise to a shift in flows of transport and goods, and even
fraud?

If so, does the Commission intend to put an end to these derogations from the general scheme?

If not, which derogations can it change and which ones can it not change? Why not?

(1)  OJ L 76, 23.3.1992, p. 1.

Answer given by Mr Monti on behalf of the Commission

(11 November 1997)

The Commission can confirm to the Honourable Member that, in accordance with Council Directive 92/12/EEC
of  25  February  1992  on  the  general  arrangements  for  products  subject  to  excise  duty  and  on  the  holding,
movement and monitoring of such products (1) (Article 28) and Council Directive 77/388/EEC of 17 May 1977
on the harmonization of the laws of the Member States relating to turnover taxes › Common system of value
added tax: uniform basis of assessment (2), as amended (Article 28K), intra-Community duty-free sales will end
by 30 June 1999.

This  decision  only  applies  with  regard  to  intra-Community  travel.  It  does  not  apply  to  travel  to  and  from
territories  in  which  the  above  mentioned  directives  are  not  applicable  as  they  are  considerered,  for  fiscal
purposes,  to  be  third  countries.  There  is  no  obligation,  under  Community  law,  to  apply  Community  VAT  or
excise in these territories.

The exceptions, which are contained in the relevant Acts of Accession, were agreed by the Council for a number
of different reasons. Some territories are covered by international agreements prior to the EC Treaty and others
had autonomy to decide on their indirect tax matters. Exchanges of goods with these territories are, and will
continue to be subject to the same control as exports and imports from third countries in order to minimize the
risk of fraud.

(1)  OJ L 76, 23.3.1992.
(2)  OJ 145, 13.6.1977.

(98/C 174/48)

WRITTEN QUESTION P-2906/97

by Elly Plooij-van Gorsel (ELDR) to the Commission

(3 September 1997)

Subject: Extra charge levied on EU nationals(cid:146) health-care bills in New York State

1.
Is the Commission aware that New York State levies an extra charge of 32% on health-care costs incurred
by  visitors  (tourists)  from  outside  the  US  as  a  means  of  covering  the  health-care  costs  of  poor  (uninsured)
Americans?