WRITTEN QUESTION E-3086/03 by Bruno Gollnisch (NI) to the Commission. Tobacco trade / France.
Date: 2003-10-20
Institutions: European Parliament, Provisional data
Subjects: France, customs inspection, customs territory (EU), excise duty, external border of the EU, illicit trade, tax harmonisation, tobacco industry

27.3.2004

EN

Official Journal of the European Union

C 78 E/461

The Commission is currently assessing the communicated national transposition measures, including the
transposition of the requirements of Articles 5, 6 and Annex I on their conformity with the Directive.
Therefore, at this moment the Commission has no clear overview of the specificities of the collection and
dismantling systems set up in each Member State. In case of incorrect implementation, the Commission
will address this with the Member State concerned, in line with the powers conferred to it by the EC Treaty.

The Commission regularly discusses the implementation issues related to this Directive with the Member
State experts during the Technical Adaptation Committee meetings established on the basis of Article 18
of Council Directive 75/442/EEC of 15 July 1975 on waste (1).

(1) OJ L 194, 25.7.1975.

(2004/C 78 E/0487)

WRITTEN QUESTION E-3086/03

by Bruno Gollnisch (NI) to the Commission

(20 October 2003)

Subject: Tobacco trade / France

The sharp increases in taxes on manufactured tobacco products in France have transformed the country
within a few months from a place of transit for contraband cigarettes to a place of destination for such
contraband.

Moreover, authorised traders, especially those working in border areas, are having to face competition
from neighbouring countries, where French customers purchase in some cases in excess of their personal
needs. However, these 34 000 tobacconists represent an irreplaceable network of local businesses,
in
particular in rural areas.

Investigations have shown that the trafficking in such products is based essentially in Eastern European
countries, including some future EU Member States. The ease with which contraband products can move
around the EU illustrates the adverse (cid:1) and indeed criminal (cid:1) effects of the absence of checks at internal
borders.

With the prospect of EU enlargement in only a few months:

(cid:1) What does the Commission intend to do to ensure that effective and efficient checks are carried out at

the EU’s external borders?

(cid:1) What action does it intend to take to tackle the unfair competition to which French tobacconists are

subjected, especially in border areas?

Answer given by Mr Bolkestein on behalf of the Commission

(5 December 2003)

Firstly,
it should be noted that the abolition of systematic customs controls at the European Union’s
internal borders has enabled the customs and excise authorities to focus their attention on the EU’s
external borders. The combating of cigarette trafficking is an important priority not only because it is a
source of unfair competition with legitimate trade but also for budgetary reasons both at EU and Member
State level.

lies with the
Responsibility for combating cigarette trafficking at both individual and collective level
Member States. However, where this illegal
the
interests,
trade affects the Community’s financial
Community and the Member States share responsibility (Article 280 of the EC Treaty). The Commission,
through the European Anti-Fraud Office (OLAF), plays an active role in coordinating action by Member
States. OLAF has established a network of operational contacts in the Member States and the candidate and
accession countries to ensure a rapid response in combating cigarette trafficking and the sources of such
trafficking. OLAF also has a specialised department providing follow up for the Member States and
candidate countries.

C 78 E/462

Official Journal of the European Union

EN

27.3.2004

Through the Working Party on customs cooperation set up under the Treaty establishing the Europe
Union (Third pillar (cid:1) Justice and Home Affairs) the Member States implement an annual programme of
common customs surveillance operations to combat
trafficking in illegal goods. These operations
frequently target cigarettes, tobacco and alcohol in the European Union. They are co-financed by the
Commission under the AGIS programme.

External border controls have always been a priority for the Commission.
It recently adopted a
Communication on the role of customs in the integrated management of external frontiers (1) which sets
out its strategy in this area. Its objective is to ensure greater protection for goods crossing the EU’s external
borders against environmental, health and public safety risks. The Communication proposes a common
risk strategy for all Member States under which controls at the external borders can be prioritised to make
them more effective.

The Commission would inform the Honourable Member that the new Customs 2007 programme, like its
predecessor Customs 2002,
is designed to ensure that all Member States apply customs controls,
particularly at the external borders, in the same and most efficient way. One of the principal objectives is
to strengthen cooperation between customs authorities in order to more effectively combat fraud. This
programme is open to both current and future Member States.

The Commission would also point out that one of the fundamental freedoms of European citizens under
the principles governing the Internal Market is to be able to purchase excisable products in one Member
State and take them for their personal consumption to the Member State where they reside without having
to pay excise duty there.

As things stand at present, Community legislation lays down only minimum rates of excise duty beyond
which Member States are allowed to set their own. Under the Directive a proposal by the Commission on
these minimum rates of excise duties for manufactured tobacco were recently raised (2) and a minimum
level of excise duty expressed in euros was introduced to ensure that a minimum level of excise duty on
cigarettes is applied in all Member States.

The Commission is, nevertheless, aware that, if the Member States fail to agree on greater harmonisation of
excise duty rates, differences in these rates will create distortions of competition between traders in the
Member States, particularly in border areas. The Commission has always taken the view that greater
harmonisation of excise duty rates, in particular for manufactured tobaccos, will overcome this problem.
The Commission continues to recommend such an approach to improve the functioning of the Internal
Market.

(1) COM(2003) 452 final.
(2) Council Directive 2002/10/EC of 12 February 2002 amending Directives 92/79/EEC, 92/80/EEC and 95/59/EC as

regards the structure and rates of excise duties applying to manufactured tobaccos, OJ L 46, 16.2.2002.

(2004/C 78 E/0488)

WRITTEN QUESTION E-3087/03

by Bruno Gollnisch (NI) to the Commission

(20 October 2003)

Subject: Commission criteria on concentrations

In its assessment of the legality of business mergers and concentrations, the Commission seems opposed to
the actual establishment of any European dominant position, and not just abuses of dominant position.

What is more worrying, the Commission has on several occasions in the past (ATR-De Havilland, Legrand-
Schneider, …) and event recently (Alcan-Pechiney) given the impression that its decisions systematically
sought to penalise mergers in which the dominant company on the world market was European, but were
very lenient in the opposite situation.