WRITTEN QUESTION E-0034/04 by Erik Meijer (GUE/NGL) to the Commission. Duty-free cigarettes sold over the Internet at half price in Romania and sent by private individuals.
Date: 2004-01-20
Institutions: European Parliament, Provisional data
Subjects: Romania, accession to the European Union, application of EU law, customs fraud, customs regulations, exemption from customs duties, illicit trade, tax evasion, tobacco

C 88 E/678

Official Journal of the European Union

EN

8.4.2004

(2004/C 88 E/0696)

WRITTEN QUESTION E-0034/04

by Erik Meijer (GUE/NGL) to the Commission

(20 January 2004)

Subject: Duty-free cigarettes sold over the Internet at half price in Romania and sent by private individuals

1.
Is the Commission aware that the possibility appears to exist in EU Member States to order from
Romania up to 160 cigarettes of various Western brands over the Internet, which are then bought by
private individuals in Romania and sent in small consignments as goods of a non-commercial character,
which, under Community rules on reliefs from duty, are exempt from VAT and import duty, allowing the
cigarettes to be sold at around half the price that the same number of cigarettes would cost in the country
of the recipient?

2.
Is the Commission also aware that mediation between buyers and sellers is carried out by the
company Cigarom.com on EU territory by Spanish intermediaries and that there are plans to set up
‘administrative centres’ in EU Member States to promote this kind of sale in such a way that these centres
could not, in a legal sense, be viewed as shops? Is it currently impossible to confiscate these cigarettes as
contraband?

How will the rules governing trade of this kind change when Romania becomes a Member State of

3.
the EU?

4.
Does the Commission consider trade of this kind, is acceptable where the combination of profit
making and low prices is made possible only by tax evasion, or does it feel that it constitutes a criminal
offence that goes unpunished as a result of loopholes in current rules or a lack of customs controls?

5.

In what way can these loopholes in the legislation and/or lack of customs controls be rectified?

6. What measures is the Commission preparing to prevent trade of this kind that originates in non-
member states of the EU?

Source: TV Nederland 3, ‘Nova’, 30 December 2003.

Answer given by Mr Bolkestein on behalf of the Commission

(16 February 2004)

1.
The Commission is not aware of the specific situation described in the Honourable Member’s
question. It is however the Commission’s view that cigarettes imported in this way by private persons into
the EU cannot be considered to be small consignments of goods of a non-commercial character, as there is
always a commercial transaction underlying the shipment. Consequently, these consignments cannot
benefit from the exemption for imports of small consignments of goods of a non-commercial character as
they do not meet the requirements provided for in EU legislation in Articles 29 to 31 of Council
Regulation (EEC) No 918/83 (1), as far as customs duty is concerned, and in Council Directive 78/1035/
EEC (2), as far as VAT and excise duty are concerned. In any case, for cigarettes, these exemptions are
limited to 50 pieces per consignment. Furthermore, Member States may reduce this quantity or even
abolish the VAT and excise exemption for tobacco products altogether.

The Commission has so far not received any information concerning the setting up of such
2.
operations in the EU. However, as pointed out above,
it considers these consignments as being of a
commercial nature and, as a consequence, subject to customs duty, VAT and excise duty upon importation
into the EU. Member States can therefore take appropriate legal measures under their domestic laws if the
goods are not properly declared upon importation.

3.
After accession of Romania to the EU, these consignments will have to be treated as distance sales,
for which excise duty is chargeable in the Member State of destination. More detailed information on the
excise duty regime applicable to distance sales can be found in the reply of the Commission to written
question E-3449/03 (3).

8.4.2004

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Official Journal of the European Union

C 88 E/679

The Commission is of the opinion that there are no loopholes in EU legislation but recognises
4. 5. & 6.
that there is a problem of control and enforcement of payment of duties and taxes on tobacco products
offered to final consumers via the internet and sent directly to them in postal consignments from third
countries or from another Member State. This problem is being actively investigated by the Commission’s
European Anti-Fraud Office and by the appropriate authorities in the Member States, with a view to
developing measures to combat this type of fraud.

(1) Council Regulation (EEC) No 918/83 of 28 March 1983 setting up a Community system of reliefs from customs
duty, OJ L 105, 23.4.1983. Regulation as last amended by Council Regulation (EC) No 355/94 of 14 February
1994, OJ L 46, 18.2.1994.

(2) Council Directive 78/1035/EEC of 19 December 1978 on the exemption from taxes of

imports of small
consignments of goods of a non-commercial character from third countries, OJ L 366, 28.12.1978. Directive as last
amended by Council Directive 85/576/EEC of 20 December 1985, OJ L 372, 31.12.1985.

(3) See page 146.

(2004/C 88 E/0697)

WRITTEN QUESTION E-0085/04

by Matti Wuori (Verts/ALE) to the Commission

(20 January 2004)

Subject: Missing NGO legal framework in Malta

Malta, which will become a member of the EU on 1 May next, has no legal framework for the regulation
of non-governmental organisations. This is hindering established NGOs,
including non-governmental
development organisations with an excellent track record, from developing their full capacities. Such a
framework would enable them to participate meaningfully in partnerships with other European NGOs.

Should not the Commission put pressure on the Maltese government to set up the necessary legal
framework without further delay? This would be a step in the right direction in recognising the expertise
and mandate of all established NGOs, including NGDOs working in the international development field,
and offering all the necessary support for NGOs and NGDOs to continue and further their global solidarity
work.

Answer given by Mr Verheugen on behalf of the Commission

(25 February 2004)

Community legislation does not oblige Member States to set up a legal framework for Non-Governmental
Organisations (NGOs). This is left to the discretion of Member States. This is, therefore, not an issue where
the Commission is entitled to ‘put pressure on the Maltese Government’.

The Commission has, throughout the pre-accession period, and whenever relevant and possible insisted
that Community-funded projects include participation from non-governmental organisations (NGOs). In
the framework of its support for NGOs, the Commission is prepared to consider specific projects related to
the implementation of Community legislation and policies in Malta.

(2004/C 88 E/0698)

WRITTEN QUESTION E-0096/04

by Alexandros Alavanos (GUE/NGL) to the Commission

Subject: Israeli arms for Turkey in exchange for water

(21 January 2004)

According to reports published on Monday, 5 January 2003, the Israeli Prime Minister, Ariel Sharon, and
the Turkish Energy Minister, Zeki Cakan, met in Jerusalem to finalise agreements between the two
countries whereby Turkey will be supplied with a large quantity of state-of-the-art Israeli tanks and ultra-