Proposal for a Council Directive on the exemption from valued added tax and excise duty of goods imported by persons travelling from third countries
Date: 2006-02-22
Institutions: European Commission
Subjects: VAT, carriage of passengers, exemption from customs duties, import tax, international transport

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 22.2.2006 
COM(2006) 76 final 

2006/0021 (CNS) 

Proposal for a 

COUNCIL DIRECTIVE 

on the exemption from valued added tax and excise duty of goods imported by persons 
travelling from third countries 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

Council  Directive  69/169/EEC  of  28th  May  1969  contains  the  harmonisation  of 
provisions to exempt imports by travellers coming from third countries from turnover 
tax (VAT) and excise duty. Such a Community system of tax reductions on imports has 
proved  necessary  in  respect  of  travel  between  third  countries  and  the  Community. 
However,  it  needs  to  be  adapted  to  the  enlargement  and  to  the  fact  that  the 
Community's  external  borders  now  include,  inter  alia,  Russia,  Ukraine  and  Belarus. 
The Commission, having received several requests by Member States for amendment 
of  the  Directive,  proposes  to  modernise  the  provisions  concerning  tax  exemptions  in 
international travel mainly by:  

– 

– 

– 

– 

increasing the current limit thresholds in line with inflation and to introduce at 
the same time a distinction between air travellers and land travellers, 

introducing  a  quantitative  limit  for  beer  and  increasing  the  quantitative  limit 
for wine, 

introducing  a  Community  system  for  reduced  quantitative  limits  for  tobacco 
products, 

abolishing  the  quantitative  limits  for  perfume,  coffee  and  tea  since  they  no 
longer reflect the real pattern of taxation of excisable goods in the EU of 25 
Member States. 

For  the  citizen,  this  proposal  will  enable  travellers  to  benefit  from  an  increase  in  the 
thresholds and also avoid inconvenience in declaring goods of relatively limited value. 
Simultaneously, this proposal will provide more flexibility for Member States and will 
aim  to  reduce  the  administrative  burdens,  arising  from  routine  controls,  for  Customs 
authorities.  

Finally, this proposal aims to revise the provisions and the structure of the Directive in 
order to simplify and bring it into line with the current legal drafting requirements. 

•  General context 

Originally,  Directive  69/169/EEC  was  aimed  at  travellers  within  the  Community. 
However,  since  its  adoption  in  1969,  the  Directive  has  been  amended  on  seventeen 
occasions in order to take account of the evolution of the EU, revise and update values 
and  to  resolve  specific  problems  faced  by  several  Member  States.  In  particular, 
since 1993  there  are  no  longer  any  restrictions  for  intra  EU  travel  and,  following 
enlargement,  the  Community's  external  borders  have  changed  and  now  include,  inter 
alia, Russia, Ukraine and Belarus. In relation to the problems faced by some Member 
States, derogations were authorised but these have all since expired with the exception 
of one - Finland is allowed to restrict imports of beer by travellers coming from third 
countries to not less than 16 litres up to end of 2007, in order to avoid fiscal, economic, 
social, health and public order problems. However, Finland will continue to face these 

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problems  beyond  2007,  which  demands  a  long  term  solution.  Other  Member  States 
with  neighbouring  third  countries  with  similar  low  price  levels  may  face  the  same 
problems.  

In  addition,  another  Member  State  has  requested  that  the  current  EUR 175  monetary 
threshold  should  be  increased  substantially,  in  order  to  minimise  the  administrative 
burdens  on  both  travellers  and  Customs  authorities  and  help  Customs  authorities  to 
focus their efforts on combating large scale smuggling. 

However,  it  is  unlikely  that  the  majority  of  Member  States  will  be  in  favour  of  a 
dramatic  increase,  and  account  needs  to  be  taken  of  the  problems  of  those  Member 
States  having  a  land  border  with  countries  such  as  Russia,  Ukraine  and  Belarus  with 
different purchase power.  

For  these  reasons  the  Commission  has  taken  the  opportunity  to  undertake  a  general 
revision  and  modernisation  of 
in 
international  travel.  As  a  consequence,  the  thresholds  and  quantities  currently 
contained  in  Title  XI  of  Council  Regulation  (EEC)  No  918/83  concerning  a 
Community system of reliefs from customs duty will need to be brought into line with 
the provisions contained in this proposal. 

the  provisions  concerning 

tax  exemptions 

•  Existing provisions in the area of the proposal 

Council Directive 69/169/EEC provides for the harmonisation of provisions exempting 
imports by travellers coming from third countries from turnover tax (VAT) and excise 
duty. 

Briefly, these provisions provide for: 

– 

– 

– 

goods in the personal luggage of travellers to be exempt from VAT and excise 
duty  providing  they  are  not  of  a  commercial  character  and  do  not  exceed  a 
value of EUR 175, 

quantitative  limits  for  certain  goods  such  as  tobacco  products  and  alcoholic 
beverages but also perfume, coffee and tea, but no limits on beer, 

additional  provisions  for  special  cases  (underage  persons,  workers  in  border 
areas, etc.). 

•  Consistency with the other policies and objectives of the Union 

This proposal is in line with the main policies and objectives of the Union and aims to 
bring consistency in the management of the external borders of the enlarged European 
Union. 

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2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

This  provision  is  not  applicable  to  this  proposal.  Apart  from  travellers,  the  main 
interested  parties  are  the  Member  States  who  have  expressed  an  interest  in  the 
modernisation of this Directive. 

•  Collection and use of expertise 

Not applicable. 

•  Impact assessment 

The  main  purpose  of  the  proposal  is  to  update  and  modernise  the  existing 
arrangements. Because this proposal only deals with adjustments to the existing rules 
and  does  not  create  a  new  tax  regime,  an  impact  assessment  is  not  appropriate.  In 
addition, its budgetary impact is negligible/not measurable.  

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

The Commission proposes: 

– 

to increase the current limit of EUR 175 and to introduce at the same time a 
distinction between air travellers (EUR 500) and other travellers (EUR 220). 

It  is  proposed  to  make  a  distinction  and  therefore  to  apply  different  thresholds 
depending on the means of transport – land and sea transport versus air transport. The 
cost  and  effort  of  travelling  by  air  would  suggest  that  such  travel  is  likely  to  be  less 
frequently undertaken by individuals compared to those choosing to travel by land or 
ferry. Additionally, air passengers are by their nature limited to what they can buy and 
transport, i.e. they would not be able to transport bulky items. Such a distinction could 
prevent  potential  problems  which  Member  States  with  a  land  border  with  third 
countries with a significantly lower price level might have in increasing the EUR 175 
threshold. On the other hand, other Member States whose third country travellers will 
be almost entirely air passengers, could benefit from the higher threshold. 

The  increase  of  the  EUR 175  threshold  to  EUR 220  is  justified  on  the  ground  that  it 
restores  its  real  value  at  the  time  the  threshold  was  last  agreed  (in  1994).  The  total 
EU-wide inflation rate for the period 1 January 1994 and 31 December 2004 is of the 
order of 25%. In addition, it is proposed to abolish the quantitative limits for perfume, 
coffee and tea (see further). Consequently, this increased monetary threshold will now 
also  include  purchases  of  perfume,  coffee  and  tea,  which,  under  the  current 
arrangements,  can  be  bought  in  addition  to  the  monetary  threshold  since  they  are 
subject to specific quantitative limits.  

In relation to tobacco products, to enable Member States to apply a distinction between 
air and other travellers and to introduce a uniform system for reduced limits. 

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Pursuant  to  Article  152  of  the  EC-Treaty  a  high  level  of  human  health  protection 
should  be  ensured  by  all  Community  policies.  In  addition,  the  WHO  framework 
convention  on  tobacco  control,  ratified  by  the  European  Union  on  30  June  2005, 
recommends  that  the  contracting  parties  prohibit  or  restrict,  as  appropriate,  sales  to 
and/or importations by international travellers of tax- and duty-free tobacco products. 
In  order  to  ensure  equal  treatment  of  all  citizens  entering  the  European  Union,  the 
proposal includes a uniform system of reduced quantitative limits for tobacco products. 
It also allows Member States to make a distinction between air and other travellers as 
concerns the limits for tobacco products. The proposed reduced limits are equal to the 
former reduced limits for intra–EU trade for people in border zones or crew of means 
of transport.  

– 

to  abolish  the  quantitative  limits  for  perfume,  coffee  and  tea  since  they  no 
longer  reflect  the  real  pattern  of  taxation  of  excisable  goods  in  the  EU  of 
25 Member States.  

Taking into account that only a limited number of Member States levy an excise duty 
on these products (none on perfume, which is exempted under Community legislation, 
1  on  tea,  5  on  coffee)  the  Commission  takes  the  view  that  these  limits,  applying  to 
travellers in 25 Member States, are no longer justified. In any event, these limits could 
be subsumed within the monetary threshold.  

– 

to  introduce  a  quantitative  limit  for  beer  of  16  litres  and  increase  the 
quantitative limit for wine from 2 to 4 litres. 

The Directive does not contain a limit for beer although this product is highly taxed in 
some Member States. On the other hand, the import of all other alcoholic beverages is 
subject  to  fixed  allowances.  In  particular,  wine  is  limited  to  two  litres,  yet  several 
Member  States  have  a  zero  excise  rate  on  wine.  The  introduction  of  a  quantitative 
restriction  for  beer  would,  therefore,  be  logical  and  could  help  solve  the  problems 
which  some  Member  States  with  a  border  with  third  countries  with  a  significantly 
lower  price  level  are  facing.  In  order  to  provide  some  consistency  for  all  alcoholic 
beverages, a quantitative limit for beer of 16 litres and an increase in the quantitative 
limit for wine from 2 to 4 litres is proposed. 

– 

to increase the amount on which Member States are free not to levy taxes on 
the import of goods. 

The amount on which Member States are free not to levy taxes on the import of goods 
needs  to  be  increased  in  order  to  take  account  of  inflation  and  is  therefore  increased 
from EUR 5 to EUR 10. 

– 

to delete the option for the Member States to exclude goods falling within CN 
codes 7108 and 7109 from exemption. 

This provision is under the current scheme of VAT no more justified. 

– 

to revise the provisions and the structure in order to simplify and to improve 
the legibility of the Directive.  

A  number  of  mainly  textual  refinements  have  been  made  to  reflect  current  legal 

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drafting  requirements  and  so  remove  any  scope  for  ambiguity.  In  addition,  the  third 
territories which are essential for the application of this Directive have been defined. 

•  Legal basis 

Article 93 of the Treaty. 

•  Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the 
exclusive competence of the Community. 

The  objectives  of  the  proposal  cannot  be  sufficiently  achieved  by  the  Member  States 
for the following reason(s). 

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Under  Council  Directive  69/169/EEC  the  EU  has  already  laid  down  harmonised 
provisions  for  imports  by  private  travellers  and  has,  therefore,  made  use  of  its 
competence. Any changes to these provisions require a  Community act of  legislation 
and cannot be subject to a Member State's decision.  

For the reasons outlined above, Member States cannot act solely. 

Community action will better achieve the objectives of the proposal and ensure equal 
treatment of citizens in the European Union.  

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The proposal therefore complies with the subsidiarity principle. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

– 

– 

– 

The  proposal  contains  several  provisions  which  enable  Member  States  to 
adjust  the  framework  established  by  the  proposal  to  meet  their  individual 
needs.  (For  example,  possibilities  for  special  provisions  for  residents  or 
workers  in  frontier  zones,  underage  persons,  setting  lower  limits  on  tobacco 
products etc.) 

An  increase  generally  in  the  EUR 175  threshold  is  justified  simply  on  the 
ground  that  it  restores  its  real  value  at  the  time  that  that  threshold  was  last 
agreed (in 1994). According to Eurostat data on the annual rate of change of 
the  HICP  (Harmonised  Index  of  Consumer  Prices)  between  1994  and  2004, 
the  total  EU-wide  inflation  rate  for  the  period  1  January  1994  and 
31 December 2004 is of the order of 25%. 

Making a distinction between the mode of travel carries  with  it a number of 
benefits  for  the  Member  States.  It  offers  a  degree  of  protection  to  those 
Member  States  with  third  country  land  borders  from  potentially  significant 
increases  in  third  country  shopping  by  restricting  the  threshold  for  land 
travellers to the lower sum of EUR 220. On the other hand, for those Member 

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States where third country travel is almost entirely by air, a higher threshold 
of EUR 500 will mean that an amount of valuable resources can be diverted 
away  from  routine  customs  controls  to  tackling  large  scale  smuggling  and 
fraud. 

– 

For  the  citizen,  travellers  will  benefit  generally  from  an  increase  in  the 
threshold  and  will  also  avoid  inconvenience  in  declaring  goods  of  relatively 
limited value.  

•  Choice of instruments 

Proposed instruments: Directive. 

Other means would not be adequate for the following reason(s). 

Only  a  Directive  will  enable  Member  States  sufficiently  to  adjust  the  framework 
established  according  to  their  individual  needs.  Therefore  the  form  of  a  Directive 
should be chosen again. 

4)  BUDGETARY IMPLICATION 

Theoretically, the proposal might result in a certain loss of revenue of VAT and excise 
duties  but,  simultaneously,  it  might  also  create  an  extra  revenue  because  of  the 
introduction of a limit for beer.  

On the other hand, given that the proposal aims to reduce the administrative burdens it 
will free up value resources which will enable Customs authorities to focus their efforts 
on  combating  large  scale  smuggling,  which,  in  turn,  will  off-set  potentially  greater 
losses.  

Consequently,  although  this  proposal  could  have  a  minor  budgetary  impact,  it  is 
considered negligible /not measurable. 

5)  ADDITIONAL INFORMATION 

•  Repeal of existing legislation 

The adoption of the proposal will repeal the existing legislation. 

•  Correlation table 

The  Member  States  are  required  to  communicate  to  the  Commission  the  text  of 
national  provisions  transposing  the  Directive  as  well  as  a  correlation  table  between 
those provisions and this Directive. 

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2006/0021 (CNS) 

Proposal for a 

COUNCIL DIRECTIVE 

on the exemption from valued added tax and excise duty of goods imported by persons 
travelling from third countries 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 93 thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Parliament2, 

Having regard to the opinion of the European Economic and Social Committee3, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

1 
2 
3 
4 

Council  Directive  69/169/EEC  of  28  May  1969  on  the  harmonisation  of  provisions 
laid  down  by  law,  regulation  or  administrative  action  relating  to  exemption  from 
turnover  tax  and  excise  duty  on  imports  in  international  travel4  established  a 
Community  system  of  tax  exemptions.  While  it  remains  necessary  to  maintain  that 
system in order to prevent double taxation, as well as in cases where, in view of the 
conditions under which the goods are imported, the usual need to protect the economy 
is  absent,  it  should  apply  only  to  non-commercial  imports  of  goods  in  the  personal 
luggage of travellers from third countries. 

However, given the number of amendments required, as well as the need to adapt the 
Directive  to  enlargement  and  to  the  new  external  borders  of  the  Community,  and  to 
restructure  and  simplify  certain  provisions  for  the  sake  of  clarity,  the  complete 
revision and the replacement of Directive 69/169/EEC is justified.  

The quantitative limits and monetary thresholds  to which  the exemptions are subject 
should meet the current needs of Member States.  

The  monetary  thresholds  should  take  account  of  the  difficulties  faced  by  Member 
States  which  share  their  borders  with  third  countries  with  significantly  lower  prices 
and  where,  consequently,  the  ease  and  attraction  of  shopping  abroad  could  cause 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L 133, 4.6.1969, p. 6. Directive as last amended by Directive 2005/93/EC (OJ L 346, 29.12.2005, 
p. 16). 

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(5) 

(6) 

(7) 

(8) 

(9) 

problems.  It  is  justifiable,  therefore,  to  set  a  lower  monetary  threshold  for  forms  of 
travel other than air travel. 

In the experience of the Commission, the quantities for tobacco products and alcoholic 
beverages  have,  in  general,  been  shown  to  be  appropriate  and  should  therefore  be 
maintained. 

The  quantitative  limits  for  the  exemption  of  excise  goods  should  reflect  the  current 
scheme of taxation of such goods in the Member States. Accordingly, it is appropriate 
to introduce a limit for beer whereas the limits for perfume, coffee and tea should be 
discontinued.  

It  is  appropriate  to  allow  Member  States  to  set  lower  limits  with  regard  to  the 
monetary  threshold  for  children  and  to  exclude  under-aged  persons  from  the 
exemptions  for  tobacco  products  and  alcoholic  beverages,  in  order  to  ensure  a  high 
level of health protection. 

Given  the  need  to  promote  a  high  level  of  human  health  protection  for  Community 
citizens, it is appropriate to allow Member States to apply reduced quantitative limits 
for the exemption of tobacco products. 

In order to take account of the special situation of certain people with regard to their 
location  or  working  environment,  it  should  also  be  possible  for  Member  States  to 
apply  narrower  exemptions  in  the  case  of  frontier  workers,  persons  residing  near 
Community  frontiers  and  the  crew  of  the  means  of  transport  used  in  international 
travel. 

(10)  For Member States which have not introduced the euro, a mechanism should be set up 
to enable amounts expressed in national currencies to be converted into euro and thus 
ensure equal treatment in the Member States. 

(11)  The amount on which Member States are free not to levy taxes on the import of goods 

should be increased in order to reflect current monetary values.  

(12)  Since  the  objectives  of  the  proposed  action  cannot  be  sufficiently  achieved  by  the 
Member States and can therefore, by reason of the scale and effects of the action, be 
better  achieved  at  Community  level,  the  Community  may  adopt  measures,  in 
accordance  with  the principle of subsidiarity as set out in Article 5 of  the Treaty. In 
accordance  with  the  principle  of  proportionality,  as  set  out  in  that  Article,  this 
Directive does not go beyond what is necessary in order to achieve those objectives, 

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HAS ADOPTED THIS DIRECTIVE: 

Chapter I  
SUBJECT-MATTER AND DEFINITIONS 

Article 1 

This  Directive  lays  down  rules  relating  to  the  exemption  from  value  added  tax  (VAT)  and 
excise duty of goods imported in the personal luggage of persons travelling from countries or 
territories where the harmonised rules on VAT and excise duty, respectively, do not apply.  

Article 2 

1. 

Where, in the case of goods brought in from another Member State in the personal 
luggage  of  a  traveller,  the  journey  involves  transit  through  the  territory  of  a  third 
country, or begins in one of the territories listed in paragraph 2, this Directive shall 
apply if the traveller is unable to establish that the goods transported in his luggage 
have  been  acquired  subject  to  the  general  conditions  governing  taxation  on  the 
domestic market of a Member State and do not qualify for any refunding of VAT or 
excise duty. 

Overflying without landing shall not be regarded as transit. 

2. 

The territories referred to in paragraph 1 are the following: 

(a)  Mount Athos; 

(b) 

the Canary Islands; 

(c) 

the French overseas departments; 

(d) 

the Åland Islands; 

(e) 

the Channel Islands; 

(f) 

the Island of Heligoland; 

(g) 

the territory of Buesingen; 

(h)  Ceuta; 

(i)  Melilla; 

(j)  Livigno; 

(k)  Campione d’Italia; 

(l) 

the Italian waters of Lake Lugano; 

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(m)  Gibraltar; 

(n)  San Marino, only as regards the application of VAT. 

Article 3 

For the purposes of this Directive, the following definitions shall apply: 

(1) 

(2) 

(3) 

(4) 

“air  travellers”  means  any  passengers  travelling  by  means  of  air  navigation  other 
than in private pleasure-flying; 

“private pleasure-flying” means the use of an aircraft by its owner or the natural or 
legal person who enjoys its use either through hire or through any other means, for 
other  than  commercial  purposes  and  in  particular  other  than  for  the  carriage  of 
passengers  or  goods  or  for  the  supply  of  services  for  consideration  or  for  the 
purposes of public authorities; 

“frontier  zone”  means  a  zone  which,  as  the  crow  flies,  does  not  extend  more  than 
15 kilometres  from  the  frontier  of  a  Member  State  and  which  includes  the  local 
administrative districts part of the territory of which lies within the zone;  

“frontier  zone  worker»  means  any  person  whose  normal  activities  require  that  he 
should go to the other side of the frontier on working days. 

Chapter II 
EXEMPTIONS 

SECTION 1 
COMMON PROVISIONS 

Article 4 

Member States shall, on the basis of either monetary thresholds or quantitative limits, exempt 
from VAT and excise duty goods imported in the personal luggage of travellers, provided that 
the imports are of a non-commercial character. 

Article 5 

For the purposes of the application of the exemptions, personal luggage shall be regarded as 
the whole of the luggage which a traveller is able to present to the customs authorities upon 
arrival, as well as luggage which he presents later to the same authorities, subject to proof that 
such  luggage  was  registered  as  accompanied  luggage,  at  the  time  of  his  departure,  with  the 
company which has been responsible for conveying him. 

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Article 6 

For the purposes of the application of the exemptions, imports shall be regarded as being of a 
non-commercial character if they meet the following conditions: 

(a) 

(b) 

they take place occasionally; 

they consist exclusively of goods for the personal or family use of the travellers, or 
of goods intended as presents. 

The  nature  or  quantity  of  the  goods  must  not  be  such  as  to  indicate  that  they  are  being 
imported for commercial reasons.  

Article 7 

The  value  of  personal  effects  which  are  imported  temporarily  or  are  re-imported  following 
their temporary export shall not be taken into consideration for the purposes of applying the 
exemptions. 

SECTION 2 
MONETARY THRESHOLDS  

Article 8 

Member States shall exempt from VAT and excise duty imports of goods, other than 
those referred to in Section 3, the total value of which does not exceed EUR 220 per 
person. 

In the case of air travellers, the monetary threshold specified in the first subparagraph 
shall be EUR 500.  

Member  States  may  lower  the  monetary  threshold  for  travellers  under  fifteen  years 
old, whatever their means of transport. However, the monetary threshold may not be 
lower than EUR 110.  

For the purposes of applying the monetary thresholds, the value of an individual item 
may not be split up. 

SECTION 3 
QUANTITATIVE LIMITS 

Article 9 

Member  States  shall  exempt  from  VAT  and  excise  duty  imports  of  the  following 
types  of  tobacco  product,  subject  either  to  the  maximum  or  to  the  minimum 
quantitative limits specified: 

1. 

2. 

3. 

1. 

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(a) 

200 cigarettes or 40 cigarettes; 

(b)  100 cigarillos or 20 cigarillos; 

(c) 

50 cigars or 10 cigars; 

(d)  250 g smoking tobacco or 50 g smoking tobacco. 

Each  amount  specified  in  points  (a)  to  (d)  shall  represent,  for  the  purposes  of 
paragraph 3, 100% of the total allowance for tobacco products. 

Cigarillos are cigars of a maximum weight of 3 grams each. 

Member States may choose to distinguish between air travellers and other travellers 
by  applying  the  minimum  quantitative  limits  specified  in  paragraph  1  only  to 
travellers other than air travellers. 

In the case of any one traveller, the exemption may be applied to any combination of 
tobacco  products,  provided  that  the  aggregate  of  the  percentages  used  up  from  the 
individual allowances does not exceed 100%.  

Article 10 

Member  States  shall  exempt  from  VAT  and  excise  duty  the  following  types  of 
alcohol and alcoholic beverage, subject to the quantitative limits specified: 

(a) 

a  total  of  1  litre  of  distilled  beverages  and  spirits  of  an  alcoholic  strength 
exceeding 22% vol, or undenatured ethyl alcohol of 80 % vol and over; 

(b) 

a total of 2 litres of intermediate products and sparkling wines. 

Each  of  the  amounts  specified  in  points  (a)  and  (b)  represent,  for  the  purposes  of 
paragraph 2, 100% of the total allowance for alcohol and alcoholic beverages. 

In the case of any one traveller, the exemption may be applied to any combination of 
the types of alcohol and alcoholic beverage referred to in paragraph 1, provided that 
the  aggregate  of  the  percentages  used  up  from  the  individual  allowances  does  not 
exceed 100%. 

In  addition  to  the  exemption  provided  for  in  paragraph  1,  Member  States  shall 
exempt from VAT and excise duty a total of 4 litres of still wine and 16 litres of beer. 

2. 

3. 

1. 

2. 

3. 

Exemptions under Articles 9 or 10 shall not apply in the case of travellers under 17 years of 
age. 

Article 11 

EN 

13 

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Article 12 

Member  States  shall  exempt  from  VAT  and  excise  duty,  in  the  case  of  any  one  means  of 
motor transport, the fuel contained in the tank and a quantity of fuel not exceeding 10 litres 
contained  in  a  portable  container,  without  prejudice  to  national  provisions  governing  the 
possession and transport of fuel.  

Article 13 

Where a traveller carries goods referred to in Articles 9, 10 or 12, the value of those goods 
shall not be taken into consideration for the purposes of applying the exemption provided for 
in Article 8(1). 

Chapter III 
SPECIAL CASES 

Article 14 

1. 

Member States may lower the monetary thresholds or the quantitative limits, or both, 
in the case of travellers in the following categories: 

(a) 

persons resident in the frontier zone; 

(b) 

frontier zone workers; 

(c) 

the crew of a means of transport used to travel from a third country. 

2. 

Paragraph 1 shall not apply where a traveller in one of the categories listed therein 
produces evidence to show that he is going beyond the frontier zone of the Member 
State  or  that  he  is  not  returning  from  the  frontier  zone  of  the  neighbouring  third 
country. 

However,  it  shall  apply  where  frontier  zone  workers  or  the  crew  of  the  means  of 
transport  used  in  international  travel  import  goods  when  travelling  in  the  course  of 
their work. 

Chapter IV  
GENERAL AND FINAL PROVISIONS 

Member  States  may  choose  not  to  levy  VAT  or  excise  duty  on  the  import  of  goods  by  a 
traveller when the amount of the tax which should be levied is equal to, or less than, EUR 10. 

Article 15 

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14 

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Article 16 

1. 

2. 

3. 

The euro equivalent in national currency which shall apply for the implementation of 
this Directive shall be fixed once a year. The rates applicable shall be those obtaining 
on the first working day of October with effect from 1 January of the following year. 

Member  States  may  round  off  the  amounts  in  national  currency  resulting  from  the 
conversion of the amounts in euro provided for in Article 8, provided such rounding-
off does not exceed EUR 2. 

Member  States  may  maintain  the  monetary  thresholds  in  force  at  the  time  of  the 
annual adjustment provided for in paragraph 1 if, prior to the rounding-off provided 
for in paragraph 2, conversion of the corresponding amounts expressed in euro would 
result in a change of less than 5% in the exemption expressed in national currency or 
in a lowering of this exemption. 

Directive 69/169/EEC is repealed. 

Article 17 

References  to  the  repealed  Directive  shall  be  construed  as  references  to  this  Directive  and 
shall be read in accordance with the correlation table in the Annex. 

Article 18 

1. 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions  necessary  to  comply  with  this  Directive  by  31  December  2006  at  the 
latest.  They  shall  forthwith  communicate  to  the  Commission  the  text  of  those 
provisions and a correlation table between those provisions and this Directive. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

2. 

Member States shall communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by this Directive. 

This Directive shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 19 

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15 

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Article 20 

This Directive is addressed to the Member States. 

Done at Brussels,  

For the Council 
The President 

EN 

16 

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ANNEX 

CORRELATION TABLE 

Directive 69/169/EEC 

This Directive 

Article 1(1) 

Article 1(2) 

Article 1(3) 

Article 2 

Article 3, point one 

Article 3, point two 

Article 8(1) 

Article 8(2) 

Article 8(3) 

― 

Article 7 

Article 6 

Article 3, point three, first subparagraph 

Article 5 

Article 3, point three, second subparagraph 

Article 12 

Article 4(1), introductory phrase 

Article 9(1) introductory phrase, Article 10(1) 
introductory phrase 

Article 4(1), second column 

― 

Article 4(1)(a), first column 

Article 4(1)(b), first column 

Article 9(1) 

Article 10(1) 

Article 4(1)(c), (d) and (e), first column 

― 

Article 4(2) first subparagraph 

Article 11 

Article 4(2) second subparagraph 

―- 

Article 4(3) 

Article 4(4) 

Article 4(5) 

Article 5(1) 

Article 5(2) 

Article 5(3) 

Article 5(4) 

Article 5(5) 

Article 13 

Article 2(1) and (2) 

― 

― 

Article 14(1) 

― 

Article 14(2) 

― 

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Article 5(6), introductory phrase, first indent  Article 3(3) 

Article  5(6), 
indent 

Article 5(7) 

Article 5(8) 

Article 5(9) 

Article 7(1) 

Article 7(2)  

Article 7 (3) 

Article 7(4) 

Article 7(5) 

Article 7a(1) 

Article 7a(2) 

Article 7b 

Article 7c 

Article 7d 

Article 8(1) 

introductory  phrase,  second 

Article 3(4) 

― 

― 

― 

― 

Article 16(1) 

Article 16(2) 

Article 16(3) 

― 

― 

Article 15 

― 

― 

― 

Article 18(1) first subparagraph 

Article 8(2), first subparagraph 

Article 18(1), first subparagraph 

Article 8(2), second subparagraph 

― 

Article 9 

Article 20 

_________________ 

EN 

18 

   EN