WRITTEN QUESTION No. 1599/98 by Allan MACARTNEY to the Commission. Taiwan spirits taxation and GATT
Date: 1998-05-25
Institutions: European Parliament, MACARTNEY
Subjects: Ireland, Scotland, Taiwan, World Trade Organisation, alcoholic beverage, beverage industry, customs duties, export tax, spirits, tax law

C 13/52

Official Journal of the European Communities

EN

18.1.1999

(1999/C 13/074)

WRITTEN QUESTION E-1599/98

by Allan Macartney (ARE) to the Commission

(25 May 1998)

Subject: Taiwan spirits taxation and GATT

Has the Commission considered that acceptance of the interim tax offer for spirits with Taiwan may breach the
equal treatment for like-products as set out in Article III of GATT?

Joint answer
to Written Questions E-1597/98, E-1598/98 and E-1599/98
given by Sir Leon Brittan on behalf of the Commission

(24 June 1998)

The Commission is fully aware of the size of the Taiwanese export market for spirits and has attached great
importance to the elimination of the discriminatory tax treatment long imposed on Community spirits in Taiwan.

The Taiwanese government has already submitted to the legislative Yuan (Taiwan(cid:146)s Parliament), a draft alcohol
and tobacco tax law which will, upon entry into force, set up a taxation regime consistent with World trade
organisation (WTO) provisions. Under the new legislation, Scotch and Irish whisky, like other whiskies will be
subject to a 12,5 % duty (to be eliminated in the year 2000), a tax of 185 new Taiwan dollars (NTS) per litre as
well as to the business tax (presently 5 % of the value of the products).

In the context of the negotiation of Taiwan(cid:146)s market access offer for WTO accession, the Commission has
obtained a commitment from Taiwan to terminate the discriminatory taxation regime in advance of WTO
accession. Taiwan would, pending the entry into force of the new WTO compatible legislation, implement an
interim regime that approximates its provisions. On average, Scotch and Irish whisky would even be subject to a
lower level of taxes and duties than under the future alcohol and tobacco tax law. If the new legislation is not yet
in force by 1 January 1999, all spirits would be exclusively subject to a tax of 198 NT$ per litre. This would
rapidly lead to the elimination of all discriminatory aspects of Taiwan(cid:146)s tax regime on spirits. In the absence of an
agreement on Taiwan(cid:146)s market access offer, there would be no guarantee of an elimination of discrimination
before Taiwan(cid:146)s accession to the WTO. As a result, the Commission considers that the offer made by Taiwan
would have a significant positive impact on the Scotch whisky industry.

The Commission would also point out that it is not correct that, under the interim regime, there would be a
difference of 242 NT$ per litre between Scotch and Irish whisky and other whiskies. In relation to the taxation of
spirits, Taiwan(cid:146)s market access offer only contains commitments applicable to the Taiwanese side and no
obligations for the Community. Taiwan, not yet being a WTO member, does not have to comply with Article III
of General agreement on tariffs and trade (GATT) 1994 before its accession.

Finally, the Commission is of the view that acceptance of Taiwan(cid:146)s offer does not breach the Community(cid:146)s
obligations under WTO agreements or under Community law.

(1999/C 13/075)

WRITTEN QUESTION E-1603/98

by Joaqu(cid:237)n Sis(cid:243) Cruellas (PPE) to the Commission

(25 May 1998)

Subject: Moratorium on seed patents

The Consultative Group on International Agricultural Research (CGIAR) has called for an end to applications to
register as intellectual property seeds which have been deposited in trust in the collections of its agricultural
research centres throughout the world and available to the international community. These seed collections,
which include more than half a million examples, represent the world(cid:146)s most important deposit of ex situ plant