WRITTEN QUESTION E-2896/02 by Kathleen Van Brempt (PSE) to the Commission. Tobacco smuggling.
Date: 2002-10-14
Institutions: European Parliament, Provisional data
Subjects: EU Member State, fraud, illicit trade, smoking, tobacco, tobacco industry

10.7.2003

EN

Official Journal of the European Union

C 161 E/51

(cid:1) SAP R/3 is used by the services of the Accountant and by the Financial Controller. This system is the
official accounting system of the Commission in which budgetary accounting, general accounting
(double entry book keeping), treasury management, the validation of third parties, recoveries and the
emission of payments via the SWIFT (1) network are carried out.

The Commission’s accounting framework and its accounting system were developed at a time when cash
accounting was in general use across the public sector, and mainly served the purpose of budgetary
accounting. The procedures also had to be designed to reflect the provisions of the Financial Regulation (2).

The Commission produces fully automatic cash based financial statements without any need for extra-
accounting information.

3. and 4.
The Commission has already introduced elements of accrual accounting in the presentation of
its financial statements in recent years. Some of these accrual-based balance sheet data and information for
annexes to the accounts are drawn from sources outside the official accounting system, for example the
value of the pension system liabilities, or, in the Parliament’s accounts, the value of its buildings.

the
This accrual-type information (cid:1) transmitted by the other DGs to the Accounting Officer of
Commission (cid:1) must be prepared following the established inventory and asset valuation rules. In order to
facilitate the controls, harmonisation and aggregation of data, the DGs are requested to transmit their
information under the form of pre-formatted Excel tables. As will thus be clear, this does not mean that
the DGs keep their cash and general accounts in Excel.

The Commission has a centralised accounting system, which brings together all the transactions of each
DG. This was one of the major reforms made possible by the introduction of Sincom2.

The accounts of the agencies are not included in this central system because their annual accounts are not
consolidated with the accounts of the Communities, but are presented separately.

The Commission has already a centrally kept book keeping system that is used when drawing up the

5.
annual statement of accounts.

The annual accounts of the agencies will be consolidated in the year 2005 (3). By this date, the Agencies
will have had to apply the same accounting principles and rules as the Commission. Nevertheless, they are
free to use the same accounting system as the Commission or to choose another system adapted to their
size and needs.

(1) Society for Worldwide Interbank Financial Telecommunications.
(2) Council Regulation (EC, Euratom, ECSC) No 2335/95 of 18 September 1995 amending the Financial Regulation of
21 December 1977 applicable to the general budget of the European Communities, with regard to the special
provisions applicable to research and technological development appropriations, OJ L 240, 7.10.1995.

(3) Article 121 of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation

applicable to the general budget of the Communities, OJ L 248, 16.9.2002.

(2003/C 161 E/054)

WRITTEN QUESTION E-2896/02

by Kathleen Van Brempt (PSE) to the Commission

(14 October 2002)

Subject: Tobacco smuggling

Tobacco smuggling is on the increase, and governments are being cheated of large amounts of tax revenue.
The World Health Organisation even says that it knows that the tobacco industry is encouraging the
continuation of tobacco smuggling.

How many illegal cigarettes are sold in the EU each year? What value does this trade represent?

How many illegal cigarettes are sold in Belgium each year? What value does this trade represent?

C 161 E/52

Official Journal of the European Union

EN

10.7.2003

What is the EU doing to reduce tobacco smuggling?

What does the Commission see as being the tobacco industry’s role in tobacco smuggling? Does the
Commission agree with the WTO that the tobacco industry is encouraging the continuation of smuggling?

Answer given by Mrs Schreyer on behalf of the Commission

(3 December 2002)

It is impossible to state how many illegal cigarettes are sold in the Union each year. However, the
Commission is able to provide figures for recent years of the seizure of cigarettes smuggled into the Union,
which were obtained from customs authorities in the Member States. This may give an indication of the
problem, given that the customs authorities of the Member States are unable to detect and seize all
cigarettes smuggled into their territories. For the same reasons, it is impossible to state how many illegal
cigarettes are sold in Belgium each year. However, the Commission is able to provide figures for recent
years of the seizure of cigarettes smuggled into Belgium. These figures are being sent direct to the
Honourable Member and to Parliament’s Secretariat.

In an attempt to reduce tobacco smuggling, the Community, along with the Member States, created a Task
Group Cigarettes in 1995. At present, the Task Group is comprised of ten full time officials at the
European Anti-Fraud Office (OLAF), as well as officials in the relevant services of all of the Member States.
The Community and ten Member States also commenced a legal action in November 2000 in a United
States Federal Court against three cigarette manufacturers for, inter alia, smuggling of cigarettes into the
Union. The Community, through OLAF, has also developed strong ties with authorities in the applicant
countries in its fight against cigarette smuggling.

The Commission, along with the Member States, is currently in the process of negotiating an International
Framework Convention on Tobacco Control under the auspices of the World Health Organisation (WHO).
One of the issues to be included in the Convention is defining measures to combat illicit trade in tobacco
products. It is essential to address this issue also in the context of a global tobacco control convention.

(2003/C 161 E/055)

WRITTEN QUESTION E-2901/02

by Hiltrud Breyer (Verts/ALE) to the Commission

(16 October 2002)

Subject: Studies of damage to health caused by pulsed frequencies

Fears amongst the general public regarding health hazards arising from exposure to electromagnetic fields
have again increased of late, partly because of public statements of opinion by recognised scientific experts
or institutions. They have pointed out, inter alia, that damage to health particularly results from pulsed
radiation.

I know that the Commission provides funding for research into the impact of electromagnetic fields on
human health.

Can the Commission answer the following:

1. To whom has it awarded research contracts?

2. What specific issues are being investigated as a result?

3. What progress has been made with the projects concerned?

4.

Is there also a project concerned with the further development of mobile telephony systems which use
non-pulsed radiation (e.g. the German C+network)?