2005/567/: Commission Decision of 8 July 2005 suspending the examination procedure concerning obstacles to trade consisting of measures imposed and practices followed by the Eastern Republic of Uruguay affecting trade in Scotch whisky
Date: 2005-07-08
Institutions: European Commission
Subjects: Uruguay, common commercial policy, spirits, tax system, trade restriction

22.7.2005

EN

Official Journal of the European Union

L 190/27

COMMISSION DECISION

of 8 July 2005

suspending the examination procedure concerning obstacles to trade consisting of measures
imposed and practices followed by the Eastern Republic of Uruguay affecting trade in Scotch
whisky

(2005/567/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 3286/94 of 22
December 1994 laying down Community procedures in the
field of common commercial policy in order to ensure the
exercise of the Community’s rights under international trade
rules, in particular those established under the auspices of the
World Trade Organisation (1), and in particular Article 11(2)
thereof,

Whereas:

On 2 September 2004, the Scotch Whisky Association
(SWA) lodged a complaint pursuant to Article 4 of Regu-
lation EC No 3286/94 (hereinafter referred to as the
Regulation)

(6)

(7)

(1)

(2)

(3)

(4)

(5)

SWA claimed that Community exports of whisky to the
Eastern Republic of Uruguay were hindered by a number
of obstacles to trade within the meaning of Article 2(1)
of the Regulation.

The alleged obstacles to trade were all
Uruguayan internal excise tax system.

linked to the

The Commission decided, after due consultation of the
Advisory Committee established by the Regulation, that
the complaint contained sufficient evidence to justify the
initiation of an examination procedure. A Notice of
Initiation was therefore published in the Official Journal
of the European Union on the 23 October 2004 (2).

During the investigation, the Government of Uruguay
expressed its readiness to seek a negotiated solution to
the issues raised in the complaint, and proposed:

(a)

to withdraw the requirement that whisky be aged less
than three years to be included in the lowest tax
category. The measure will take effect from 1 July
2005;

(b) to apply the same treatment

to domestic and
imported whiskies as regards the requirement
to
affix strip stamps. The Eastern Republic of Uruguay
will amend its regulations by 30 June 2005 and the
measure will enter into force after a transitional
period of 90 days;

(c)

to promote a change in the structure of the IMESI tax
in order to bring it in line with the most usual tax
systems at the international level. This change would
help to address the issue of the alleged lack of trans-
parency and predictability. The reform process is
expected to be finalised by the end of 2006.

The Commission considers therefore that it is appropriate
to suspend the procedure.

The Community will monitor the implementation of the
terminate the procedure
negotiated solution and will
when the Government of Uruguay has
fulfilled its
commitments.

(8)

The measures provided for
in this Decision are in
accordance with the opinion of the Advisory Committee,

HAS DECIDED AS FOLLOWS:

Sole Article

to trade,
The examination procedure concerning obstacles
consisting of measures imposed and practices followed by the
Eastern Republic of Uruguay affecting trade in Scotch whisky, is
hereby suspended.

Done at Brussels, 8 July 2005.

For the Commission

Peter MANDELSON
Member of the Commission

(1) OJ L 349, 31.12.1994, p. 71. Regulation as amended by Regulation

(EC) No 356/95, OJ L 41, 23.2.1995, p. 3.

(2) OJ C 261, 23.10.2004, p. 3.