Proposal for a Council Directive on the structure and rates of excise duty applied to manufactured tobacco (Codified version)
Date: 2007-10-11
Institutions: European Commission
Subjects: excise duty, tax harmonisation, tax on consumption, tobacco, tobacco industry

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 11.10.2007 
COM(2007) 587 final 

2007/0206 (CNS) 

Proposal for a 

COUNCIL DIRECTIVE  

on the structure and rates of excise duty applied to manufactured tobacco 

(Codified version) 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

In  the  context  of  a  people’s  Europe,  the  Commission  attaches  great  importance  to 
simplifying  and  clarifying  Community  law  so  as  to  make  it  clearer  and  more 
accessible to the ordinary citizen, thus giving him new opportunities and the chance 
to make use of the specific rights it gives him. 

This aim cannot be achieved so long as numerous provisions that have been amended 
several times, often quite substantially, remain scattered, so that they must be sought 
partly  in  the  original  instrument  and  partly  in  later  amending  ones.  Considerable 
research work, comparing many different instruments, is thus needed to identify the 
current rules. 

For  this  reason  a  codification  of  rules  that  have  frequently  been  amended  is  also 
essential if Community law is to be clear and transparent. 

On  1  April  1987  the  Commission  therefore  decided1  to  instruct  its  staff  that  all 
legislative acts should be codified after no more than ten amendments, stressing that 
this  is  a  minimum  requirement  and  that  departments  should  endeavour  to  codify  at 
even  shorter  intervals  the  texts  for  which  they  are  responsible,  to  ensure  that  the 
Community rules are clear and readily understandable. 

The  Conclusions  of 
the  Edinburgh  European  Council 
(December 1992) confirmed this2, stressing the importance of codification as it offers 
certainty as to the law applicable to a given matter at a given time. 

the  Presidency  of 

Codification  must  be  undertaken  in  full  compliance  with  the  normal  Community 
legislative procedure. 

Given  that  no  changes  of  substance  may  be  made  to  the  instruments  affected  by 
codification, the European Parliament, the Council and the Commission have agreed, 
by  an  interinstitutional  agreement  dated  20  December  1994,  that  an  accelerated 
procedure may be used for the fast-track adoption of codification instruments. 

is 

this  proposal 

to  undertake  a  codification  of  Council 
The  purpose  of 
Directive 92/79/EEC of 19 October 1992 on the approximation of taxes on cigarettes, 
Council Directive 92/80/EEC of 19 October 1992 on the approximation of taxes on 
manufactured  tobacco  other  than  cigarettes  and  Council  Directive  95/59/EC  of 
27 November 1995 on taxes other than turnover taxes which affect the consumption 
of  manufactured  tobacco3.  The  new  Directive  will  supersede  the  various  acts 
incorporated in it4; this proposal fully preserves the content of the acts being codified 
and  hence  does  no  more  than  bringing  them  together  with  only  such  formal 
amendments as are required by the codification exercise itself. 

COM(87) 868 PV. 
See Annex 3 to Part A of the Conclusions. 
Carried out pursuant to the Communication from the Commission to the European Parliament and the 
Council – Codification of the Acquis communautaire, COM(2001) 645 final. 
Annex I, Part A of this proposal. 

1. 

2. 

3. 

4. 

1 
2 
3 

4 

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5. 

The codification proposal was drawn up on the basis of a preliminary consolidation, 
languages,  of  Directive  92/79/EEC,  Directive  92/80/EEC, 
in  all  official 
Directive 95/59/EC and the instruments amending them, carried out by the Office for 
Official  Publications  of  the  European  Communities,  by  means  of  a  data-processing 
system.  Where  the  Articles  have  been  given  new  numbers,  the  correlation  between 
the old and the new numbers is shown in a table contained in Annex II to the codified 
Directive. 

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2007/0206 (CNS) 

Proposal for a 

(cid:208) 92/79/EEC, 92/80/EEC, 
95/59/EC (adapted) 

COUNCIL DIRECTIVE 

on ⌦ the structure and rates of excise duty applied to manufactured tobacco ⌫ 

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 Commission, 

Having regard to the opinion of the European Parliament1, 

Having regard to the opinion of the European Economic and Social Committee2, 

Whereas: 

(cid:208)  

(1) 

Council  Directive  92/79/EEC  of  19  October  1992  on  the  approximation  of  taxes  on 
cigarettes3, Council Directive 92/80/EEC of 19 October 1992 on the approximation of 
taxes on manufactured tobacco other than cigarettes4 and Council Directive 95/59/EC 
of 27 November 1995 on taxes other than turnover taxes which affect the consumption 
of  manufactured  tobacco5  have  been  substantially  amended  several  times6.  In  the 
interests of clarity and rationality the said Directives should therefore be codified by 
assembling them in a single act. 

1 
2 
3 

4 
5 

6 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ  L  316,  31.10.1992,  p.  8.  Directive  as  last  amended  by  Directive  2003/117/EC  (OJ  L  333, 
20.12.2003, p. 49). 
OJ L 316, 31.10.1992, p. 10. Directive as last amended by Directive 2003/117/EC. 
OJ L 291, 6.12.1995, p. 40. Directive as last amended by Directive 2002/10/EC. (OJ L 46, 16.2.2002, 
p. 26). 
See Annex I, Part A. 

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(cid:208) 95/59/EC Recital 2 

(2) 

The  objective  of  the  Treaty  is  to  maintain  an  economic  union  within  which  there  is 
healthy  competition  and  whose  characteristics  are  similar  to  those  of  a  domestic 
market.  As  regards  manufactured  tobacco,  achievement  of  this  aim  presupposes  that 
the application in the Member States of taxes affecting the consumption of products in 
this  sector  does  not  distort  conditions  of  competition  and  does  not  impede  their  free 
movement within the Community. 

(3) 

As far as excise duties are concerned, harmonisation of structures must, in particular, 
result in competition in the different categories of manufactured tobacco belonging to 
the  same  group  not  being  distorted  by  the  effects  of  the  charging  of  the  tax  and, 
consequently, in the opening of the national markets of the Member States. 

(cid:208) 95/59/EC Recital 3 

(4) 

There are several types of manufactured tobacco, distinguished by their characteristics 
and by the way in which they are used. These different types of manufactured tobacco 
should be defined. 

(cid:208) 95/59/EC Recitals 8 and 9 

(5) 

Rolls of tobacco capable of being smoked as they are after simple handling should also 
be deemed to be cigarettes for the purposes of uniform taxation of these products. 

(cid:208) 95/59/EC Recital 14 

(6) 

A distinction needs to be made between fine-cut tobacco for the rolling of cigarettes 
and other smoking tobacco. 

(cid:208) 95/59/EC Recital 11 

(7) 

A manufacturer needs to be defined as a natural or legal person who actually prepares 
tobacco  products  and  sets  the  maximum  retail  selling  price  for  each  of  the  Member 
States for which the products in question are to be released for consumption. 

(cid:208) 95/59/EC Recital 12 

(8) 

The  structure  of  the  excise  duty  on  cigarettes  must  include,  in  addition  to  a  specific 
component calculated per unit of the product, a proportional component based on the 
retail selling price, inclusive of all taxes. The turnover tax on cigarettes has the same 

(cid:208) 95/59/EC Recital 4 

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effect as a proportional excise duty and this fact should be taken into account when the 
ratio  between  the  specific  component  of  the  excise  duty  and  the  total  tax  burden  is 
being established. 

(9) 

A harmonised incidence of tax should be established for all products belonging to the 
same group of manufactured tobacco. 

(cid:208) 92/80/EEC Recital 4 

(10)  The  setting  of  an  overall  minimum  excise  duty  expressed  as  a  percentage,  as  an 
amount  per  kilogram  or  for  a  given  number  of  items  is  the  most  appropriate  for 
achieving the internal market. 

(cid:208) 92/80/EEC Recital 5 

(cid:208) 2002/10/EC Recital 6 (adapted) 
and 95/59/EC Recital 10 (adapted) 

(11)  Greater  convergence between the tax  rates applied in the Member States  would help 
reduce  fraud  and  smuggling  within  the  Community.  The  introduction  of  a  fixed 
minimum amount expressed in euro, in addition to the minimum excise incidence of 
57 %  of  the  retail  selling  price  of  cigarettes  of  the  price  category  most  in  demand, 
should ensure that a minimum level of excise duties is levied on such cigarettes. For 
economic  reasons,  temporary  derogations  ⌦ from  the  introduction  of  such  a  fixed 
amount ⌫ should be provided for certain Member States. 

(12)  The  Portuguese  Republic  should  be  granted  the  possibility  of  a  reduced  rate  for 
cigarettes made by small-scale producers and consumed in the most remote regions of 
the Azores and Madeira. 

(cid:208) 92/79/EEC Recital 5 

(cid:208) 2002/10/EC Recital 7 

(13)  The Treaty requires that the definition and implementation of all Community policies 
and activities ensure a high level of human health protection. Cigarettes and fine-cut 
tobacco  intended  for  the  rolling  of  cigarettes  are  both  harmful  to  consumers'  health. 
The level of taxation is a major factor in the price of tobacco products, which in turn 
influences  consumers'  smoking  habits.  For  this  reason,  it  is  necessary  gradually  to 
bring  the  minimum  rates  for  fine-cut  rolling  tobacco  closer  to  the  minimum  rate  for 
cigarettes. 

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(14)  The  imperative  needs  of  competition  imply  a  system  of  freely  formed  prices  for  all 

groups of manufactured tobacco. 

(cid:208) 95/59/EC Recital 7 

(15)  A majority of Member States grant exemptions from excise duty or make refunds of 
excise duty in respect of certain types of manufactured tobacco depending on the use 
which is made of them, and the exemptions or refunds for particular uses need to be 
specified in this Directive. 

(cid:208) 95/59/EC Recital 13 

(16)  A  procedure  should  be  introduced  to  enable  the  rates  or  amounts  laid  down  in  this 
Directive  to  be  reviewed  periodically  on  the  basis  of  a  Commission  report  taking 
account of all the appropriate factors. 

(cid:208) 92/80/EEC Recital 7 

(17)  This  Directive  should  be  without  prejudice  to  the  obligations  of  the  Member  States 
relating  to  the  time-limits  for  transposition  into  national  law  and  application  of  the 
Directives set out in Annex I, Part B, 

(cid:208)  

HAS ADOPTED THIS DIRECTIVE: 

(cid:208) 95/59/EC (adapted) 

Chapter 1 
Subject matter 

Article 1 

This  Directive  lays  down  general  principles  for  ⌦ the ⌫  harmonisation,  ⌦ of ⌫  the 
structure  ⌦ and  rates ⌫  of  the  excise  duty  to  which  the  Member  States  subject 
manufactured tobacco. 

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Chapter 2 
Definitions 

Article 2 

(cid:208) 95/59/EC Art. 2(1) (adapted) 

1. ⌦ For the purposes of this Directive ⌫ manufactured tobacco ⌦ shall mean ⌫: 

(a) 

(b) 

(c) 

cigarettes; 

cigars and cigarillos; 

smoking tobacco: 

i) 

fine-cut tobacco for the rolling of cigarettes, 

ii) 

other smoking tobacco. 

(cid:208) 95/59/EC Art. 7(2) 

2.  Products  consisting  in  whole  or  in  part  of  substances  other  than  tobacco  but  otherwise 
conforming to the criteria set out in Article 3 or Article 5(1) shall be treated as cigarettes and 
smoking tobacco. 

Notwithstanding the first subparagraph, products containing no tobacco and used exclusively 
for medical purposes shall not be treated as manufactured tobacco. 

3. Notwithstanding existing Community provisions, the definitions referred to in paragraph 2 
of this Article and Articles 3, 4 and 5 shall be without prejudice to the choice of system or the 
level  of  taxation  which  shall  apply  to  the  different  groups  of  products  referred  to  in  these 
Articles. 

(cid:208) 95/59/EC Art. 2(3) 

(cid:208) 95/59/EC Art. 4 (adapted) 
(cid:206)1 1999/81/EC Art. 3 pt. 1 

Article 3 

1. ⌦ For the purposes of this Directive ⌫ cigarettes ⌦ shall mean ⌫: 

(a) 

rolls  of  tobacco  capable  of  being  smoked  as  they  are  and  which  are  not  cigars  or 
cigarillos within the meaning of Article 4(1); 

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(b) 

(c) 

rolls of tobacco which, by simple non-industrial handling, are inserted into cigarette-
paper tubes; 

rolls  of  tobacco  which,  by  simple  non-industrial  handling,  are  wrapped  in  cigarette 
paper. 

2. A roll of tobacco referred to in paragraph 1 shall, for excise duty purposes, be considered as 
two  cigarettes  where,  excluding  filter  or  mouth  piece,  it  is  longer  than  9 cm  but  not  longer 
than 18 cm, as three cigarettes where, excluding filter or mouthpiece, it is longer than 18 cm 
but not longer than 27 cm, and so on. 

(cid:208) 95/59/EC Art. 3 (adapted) 

Article 4 

1.  ⌦ For  the  purposes  of  this  Directive ⌫  the  following  shall  be  deemed  to  be  cigars  or 
cigarillos if they can be smoked as they are: 

(a) 

(b) 

(c) 

(d) 

rolls of tobacco made entirely of natural tobacco; 

rolls of tobacco with an outer wrapper of natural tobacco; 

(cid:208) 2002/10/EC Art. 3 pt. 1 

rolls of tobacco with a threshed blend filler and with an outer wrapper of the normal 
colour of a cigar covering the product in full, including where appropriate the filter 
but not in the case of tipped cigars, the tip, and a binder, both being of reconstituted 
tobacco, where the unit weight, not including filter or mouth-piece, is not less than 
1,2 g and where the wrapper is fitted in spiral form with an acute angle of at least 30° 
to the longitudinal axis of the cigar; 

rolls of tobacco with a threshed blend filler and with an outer wrapper of the normal 
colour  of  a  cigar,  of  reconstituted  tobacco,  covering  the  product  in  full,  including 
where  appropriate  the  filter  but  not,  in  the  case  of  tipped  cigars,  the  tip,  where  the 
unit  weight,  not  including  filter  or  mouth-piece,  is  not  less  than  2,3 g  and  the 
circumference over at least one third of the length is not less than 34 mm. 

2. Products consisting in part of substances other than tobacco but otherwise conforming to 
the criteria set out in paragraph 1 shall be treated as cigars and cigarillos provided they have 
respectively: 

(cid:208) 95/59/EC Art. 7(1) 

(a) 

(b) 

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a wrapper of natural tobacco, 

a wrapper and binder of tobacco, both of reconstituted tobacco, 

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(c) 

a wrapper of reconstituted tobacco. 

(cid:208) 95/59/EC Art. 5 (adapted) 

Article 5 

1. ⌦ For the purposes of this Directive ⌫ smoking tobacco ⌦ shall mean ⌫: 

(a) 

(b) 

tobacco which has been cut or otherwise split, twisted or pressed into blocks and is 
capable of being smoked without further industrial processing; 

tobacco refuse put up for retail sale which does not fall under Articles 3 and 4 and 
which can be smoked. 

(cid:208) 95/59/EC Art. 6 (adapted) 

2. Smoking tobacco in which more than 25 % by weight of the tobacco particles have a cut 
width  of  less  than  1  millimetre  shall  be  deemed  to  be  fine-cut  tobacco  for  the  rolling  of 
cigarettes. 

Member States may also deem smoking tobacco in which more than 25 % by weight of the 
tobacco particles have a cut width of more than 1 millimetre and which was sold or intended 
to be sold for the rolling of cigarettes to be fine-cut tobacco for the rolling of cigarettes. 

(cid:208) 95/59/EC Art. 9(1) first 
subparagraph (adapted) 

Article 6 

A  natural  or  legal  person  established  in  the  Community  who  converts  tobacco  into 
manufactured products prepared for retail sale shall be deemed to be a manufacturer. 

Chapter 3 
Provisions applicable to Cigarettes 

(cid:208) 92/79/EEC Art. 1 (adapted) 

Article 7 

1.  Member  States  shall  apply  to  cigarettes  minimum  consumption  taxes  in  accordance  with 
the rules provided for in this Chapter. 

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2. Paragraph 1 shall apply to the taxes which, pursuant to this Chapter, are levied on cigarettes 
and which comprise: 

(a) 

a specific excise duty per unit of the product; 

(b) 

a proportional excise duty calculated on the basis of the maximum retail selling price; 

(c) 

a value-added tax (VAT) proportional to the retail selling price. 

(cid:208) 95/59/EC Art. 8 

Article 8 

1. Cigarettes manufactured in the Community and those imported from third countries shall 
be  subject  to  a  proportional  excise  duty  calculated  on  the  maximum  retail  selling  price, 
including customs duties, and also to a specific excise duty calculated per unit of the product. 

Notwithstanding the first subparagraph, each Member State may exclude customs duties from 
the basis for calculating the proportional excise duty on cigarettes. 

(cid:208) 95/59/EC Art. 16(4) 

(cid:208) 95/59/EC Art. 8 (adapted) 

2. The rate of the proportional excise duty and the amount of the specific excise duty must be 
the same for all cigarettes. 

3.  At  the  final  stage  of  harmonisation  of  structures,  the  same  ratio  shall  be  established  for 
cigarettes  in  all  Member  States  between  the  specific  excise  duty  and  the  sum  of  the 
proportional  excise  duty  and  the  turnover  tax,  in  such  a  way  that  the  range  of  retail  selling 
prices reflects fairly the difference in the manufacturers' delivery prices. 

(cid:208) 2002/10/EC Art. 1 pt. 1 
(adapted) 

Article 9 

1. Each Member State shall apply an overall minimum excise duty ⌦ comprising ⌫ specific 
duty plus ad valorem duty excluding VAT, the incidence of which shall be set at 57 % of the 
retail selling price inclusive of all taxes. 

⌦ The overall minimum excise duty ⌫ shall not be less than EUR 64 per 1 000 cigarettes 
for cigarettes of the price category most in demand. 

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2. Member States which levy an overall minimum excise duty of at least EUR 101 per 1 000 
cigarettes for cigarettes of the price category most in demand need not comply with the 57 % 
minimum incidence requirement. 

3.  The  overall  minimum  excise  duty  on  cigarettes  shall  be  determined  on  the  basis  of 
cigarettes of the price category most in demand according to data established as at 1 January 
of each year. 

(cid:208) 1999/81/EC Art. 1 pt. 1 

Article 10 

1. When a change in the retail selling price of cigarettes in the most popular price category 
occurs in a Member State, thereby bringing the incidence of the overall minimum excise duty 
below  the  level  specified  in  Article  9(1),  the  Member  State  in  question  may  refrain  from 
adjusting the incidence of the overall minimum excise duty until not later than 1 January of 
the second year following that in which the change occurs. 

2. When a Member State increases the rate of VAT on cigarettes, it may reduce the incidence 
of the overall minimum excise duty up to an amount which, expressed as a percentage of the 
retail selling price, is equal to the incidence of the increase in the rate of VAT, also expressed 
as a percentage of the retail selling price, even if such an adjustment has the effect of reducing 
the incidence of the overall minimum excise duty to below the level laid down in Article 9. 

3.  If,  in  accordance  with  paragraph  2,  a  Member  State  reduces  the  incidence  of  the  overall 
minimum  excise  duty  to  a  level  below  that  laid  down  in  Article  9(1),  it  shall  raise  that 
incidence so as to reach at least that level not later than 1 January of the second year after that 
in which the reduction took place. 

(cid:208) 95/59/EC Art. 16 (adapted) 

Article 11 

1.  The  amount  of  the  specific  excise  duty  on  cigarettes  shall  be  established  by  reference  to 
cigarettes  in  the  most  popular  price  category  according  to  the  information  available  at 
1 January each year. 

2. The specific component of the excise duty may not be less than 5 % or more than 55 % of 
the amount of the total tax burden resulting from the aggregation of the proportional excise 
duty, the specific excise duty and the turnover tax levied on these cigarettes. 

3.  By  way  of  derogation  from  paragraph  2,  where  a  change  in  the  retail  selling  price  of 
cigarettes in the most popular price category occurs in a Member State, thereby bringing the 
specific  component  of  the  excise  duty,  expressed  as  a  percentage  of  the  total  tax  burden, 

(cid:208) 1999/81/EC Art. 3 pt. 2(a) 

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below 5 % or above 55 % of the total tax burden, the Member State in question may refrain 
from  adjusting  the  amount  of  the  specific  excise  duty  until  not  later  than  1  January  of  the 
second year following that in which the change occurs. 

4. (cid:206)1 If the excise duty levied  on the price category referred to in paragraph 1 is amended, 
the amount of the specific excise duty shall be established by reference to the new total tax 
burden on the cigarettes referred to in paragraph 1. 

(cid:208) 95/59/EC (adapted) 
(cid:206)1 1999/81/EC Art. 3 pt. 2(b) 

5. Member States may levy a minimum excise duty on cigarettes sold at a price lower than the 
retail  selling  price  for  cigarettes  of  the  price  category  most  in  demand,  provided  that  such 
excise  duty  does  not  exceed  the  amount  of  the  excise  duty  levied  on  cigarettes  of  the  price 
category most in demand. 

(cid:208) 2002/10/EC Art. 3 pt. 2 

(cid:208) 92/79/EEC Art. 3 (adapted) 

Article 12 

1. The Portuguese Republic may apply a reduced rate of up to 50 % less than that laid down 
in  Article  9  to  cigarettes  consumed  in  the  most  remote  regions  of  the  Azores  and  Madeira, 
made  by  small-scale  manufacturers  each  of  whose  annual  production  does  not  exceed 
500 tonnes. 

(cid:208) 2003/117/EC Art. 1 

2.  By  derogation  from  Article  9,  from  1  January  2003  to  31  December  2009  the  French 
Republic  may  continue  to  apply  a  reduced  rate  of  excise  duty  to  cigarettes  released  for 
consumption in Corsica. This rate shall apply solely to an annual quota of 1200 tonnes. 

From 1 January 2003 to 31 December 2007 the reduced rate must equal at least 35% of the 
price for cigarettes in the price category most in demand in Corsica. 

From 1 January 2008 to 31 December 2009 the reduced rate must equal at least 44% of the 
price for cigarettes in the price category most in demand in Corsica. 

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Chapter 4 
Provisions applicable to Manufactured tobacco other than 
cigarettes 

(cid:208) 92/80/EEC Art. 1 

Article 13 

The  following  groups  of  manufactured  tobacco  produced  in  the  Community  and  imported 
from third countries shall be subject, in each Member State, to a minimum excise duty as laid 
down in Article 14: 

(a) 

(b) 

(c) 

cigars and cigarillos; 

fine-cut tobacco intended for the rolling of cigarettes; 

other smoking tobaccos. 

(cid:208) 92/80/EEC Art. 3 

Article 14 

(cid:208) 1999/81/EC Art. 2.1(a) 
(adapted) 

1. Member States shall apply an excise duty which may be: 

(a) 

(b) 

either an ad valorem duty calculated on the basis of the maximum retail selling price 
of each  product,  freely determined by manufacturers established in the Community 
and by importers from third countries in accordance with Article 15, 

or a specific duty expressed as an amount per kilogram, or in the case of cigars and 
cigarillos, alternatively for a given number of items, 

(c) 

or a mixture of both, combining an ad valorem element and a specific element. 

In  cases  where  excise  duty  is  either  ad  valorem  or  mixed,  Member  States  may  establish  a 
minimum amount of excise duty. 

2. The overall excise duty expressed as a percentage, as an amount per kilogram or for a given 
number of items shall be at least equivalent to the rates or minimum amounts laid down for: 

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(cid:208) 2002/10/EC Art. 2.1 

(a) 

(b) 

(c) 

in the case of cigars or cigarillos: 5 % of the retail selling price inclusive of all taxes 
or EUR 11 per 1 000 items or per kilogram; 

in the case of fine-cut smoking tobacco intended for the rolling of cigarettes: 36 % of 
the retail selling price inclusive of all taxes, or EUR 32 per kilogram; 

in the case of other smoking tobaccos: 20 % of the retail selling price inclusive of all 
taxes, or EUR 20 per kilogram. 

3. The rates or amounts referred to in paragraphs 1 and 2 shall be effective for all products 
belonging to the group of manufactured tobaccos concerned, without distinction within each 
group as to quality, presentation, origin of the products, the materials used, the characteristics 
of the firms involved or any other criterion. 

(cid:208) 92/80/EEC (adapted) Art. 3(2) 

4.  By  derogation  from  paragraphs  1  and  2,  from  1  January  2003  to  31 December 2009  the 
French  Republic  may  continue  to  apply  a  reduced  rate  of  excise  duty  to  manufactured 
tobaccos other than cigarettes released for consumption in Corsica. 

(cid:208) 2003/117/EC Art. 2 

The reduced rate shall be: 

(a) 

(b) 

(c) 

for cigars and cigarillos, at least 10% of the retail selling price, inclusive of all taxes, 
charged in Corsica;  

for  fine-cut  tobacco  intended  for  the  rolling  of  cigarettes,  at  least  25%  of  the  retail 
selling price, inclusive of all taxes, charged in Corsica;  

for  other  smoking  tobaccos,  at  least  22%  of  the  retail  selling  price,  inclusive  of  all 
taxes, charged in Corsica. 

Chapter 5 
Release for consumption of manufactured tobacco 

(cid:208) 95/59/EC Art. 9 (adapted) 

1.  Manufacturers,  or,  where  appropriate,  their  representatives  or  authorised  agents  in  the 
Community  and  importers  of  tobacco  from  third  countries  shall  be  free  to  determine  the 

Article 15 

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maximum retail selling price for each of their products for each Member State for which the 
products in question are to be released for consumption. 

The  first  subparagraph  may  not,  however,  hinder  implementation  of  national  systems  of 
legislation regarding the control of price levels or the observance of imposed prices, provided 
that they are compatible with Community legislation. 

2. In order to facilitate the levying of the excise duty, Member States may, for each group of 
manufactured  tobacco,  fix  a  scale  of  retail  selling  prices  on  condition  that  each  scale  has 
sufficient scope and variety to correspond in fact with the variety of Community products. 

Each scale shall be valid for all the products belonging to the group of manufactured tobacco 
which it concerns, without distinction on the basis of quality, presentation, the origin of the 
products  or  of  the  materials  used,  the  characteristics  of  the  undertakings  or  of  any  other 
criterion. 

(cid:208) 95/59/EC Art. 10 (adapted) 

Article 16 

1.  At  the  final  stage  ⌦ of  harmonisation  of  the  excise  duty ⌫  at  the  latest  the  rules  for 
collecting  the  excise  duty  shall  be  harmonised.  During  the  preceding  stage  the  excise  duty 
shall,  in  principle,  be  collected  by  means  of  tax  stamps.  If  they  collect  the  excise  duty  by 
means  of  tax  stamps,  Member  States  shall  be  obliged  to  make  these  stamps  available  to 
manufacturers  and  dealers  in  other  Member  States.  If  they  collect  the  excise  duty  by  other 
means, Member States shall ensure that no obstacle, either administrative or technical, affects 
trade between Member States on that account. 

2.  ⌦ Community ⌫  importers  and  ⌦ Community ⌫  manufacturers  of  manufactured 
tobacco shall be subject to the system set out in paragraph 1 as regards the detailed rules for 
levying and paying the excise duty. 

(cid:208) 95/59/EC Art. 11 

Article 17 

The following may be exempted from excise duty or excise duty already paid on them may be 
refunded: 

(a) 

(b) 

(c) 

denatured manufactured tobacco used for industrial or horticultural purposes; 

manufactured tobacco which is destroyed under administrative supervision; 

manufactured  tobacco  which  is  solely  intended  for  scientific  tests  and  for  tests 
connected with product quality; 

(d) 

manufactured tobacco which is reworked by the producer. 

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Member  States  shall  determine  the  conditions and  formalities  to  which  the  abovementioned 
exemptions or refunds are subject. 

(cid:208) 95/59/EC 

Chapter 6 
Final provisions 

(cid:208) 92/80/EEC Art. 5(1), 
2002/10/EC Art. 1pt. 1(5) 

Article 18 

1.  The  value  of  the  euro  in  national  currencies  to  be  applied  to  the  amounts  of  the  overall 
minimum excise duty and to the value of specific excise duties shall be fixed once a year. The 
exchange rates to be applied shall be those obtained on the first working day of October and 
published in the Official Journal of the European Union and shall have effect from 1 January 
of the following calendar year. 

(cid:208) 2002/10/EC Art. 1 pt.1 

2. By way of derogation from paragraph 1, Member States which have not adopted the euro 
shall be authorised to apply the value of the euro in national currency on the first working day 
of October 2000 for the conversion of the amount of EUR 101 referred to in Article 9(2). 

The  present  derogation  shall  be  re-examined  in  the  next  report  to  be  submitted  by  the 
Commission in accordance with Article 19. 

3. Member States may maintain the amounts of the excise duties in force at the time of the 
annual adjustment provided for in paragraph 1 if the conversion of the amounts of the excise 
duties expressed in euro would result in an increase of less than 5% or EUR 5, whichever is 
the lower amount, in the excise duty expressed in national currency. 

(cid:208) 92/80/EEC Art. 5(2) 

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(cid:208) 2002/10/EC Art. 1 pt. 2 
2002/10/EC Art. 2.2 (adapted) 

Article 19 

Every four years, the Commission shall submit to the Council a report and, where appropriate, 
a proposal concerning the rates of excise duty laid down in this Directive and the structure of 
excise duties as defined by Article 11. 

The  Council  shall  examine  this  report  and  this  proposal  and,  acting  unanimously  after 
consulting the European Parliament, shall adopt the necessary measures. 

The report by the Commission and the examination by the Council shall take into account the 
proper  functioning  of  the  internal  market,  the  real  value  of  the  levels  ⌦ and  rates ⌫  of 
excise duty ⌦ in Article 11 calculated solely in accordance with inflation ⌫ and the wider 
objectives of the Treaty. 

(cid:208) 95/59/EC Art. 17 

Article 20 

Where necessary, the Council shall, on a proposal from the Commission, adopt provisions for 
the application of this Directive. 

(cid:208) 92/79/EEC Art. 5 (adapted), 
92/80/EEC Art. 6 (adapted), 
95/59/EC Art. 18 

Article 21 

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. 

(cid:208) 95/59/EC Art. 19 

Article 22 

Directive 92/79/EEC, Directive 92/80/EEC and Directive 95/59/EC, as amended by the acts 
listed  in  Annex  I,  Part  A,  are  repealed,  without  prejudice  to  the  obligations  of  the  Member 
States  relating  to  the  time-limits  for  transposition  into  national  law  and  application  of  the 
Directives set out in Annex I, Part B. 

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

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(cid:208) 95/59/EC Art. 20 (adapted) 

Article 23 

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

(cid:208) 92/79EEC Art. 6, 92/80/EEC 
Art. 7, 95/59/EC Art. 21 

Article 24 

This Directive is addressed to the Member States. 

Done at Brussels,  

For the Council 
The President 

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ANNEX I 

Part A 

Repealed Directives with list of their successive amendments 
(referred to in Article 22) 

Council Directive 92/79/EEC 

(OJ L 316, 31.10.1992, p. 8) 

Council Directive 1999/81/EC 

(OJ L 211, 11.8.1999, p. 47) 

Council Directive 2002/10/EC 

(OJ L 46, 16.2.2002, p. 26) 

Council Directive 2003/117/EC 

(OJ L 333, 20.12.2003, p. 49) 

2003 Act of Accession 

Council Directive 92/80/EEC 

(OJ L 316, 31.10.1992, p. 10) 

Council Directive 1999/81/EC 

(OJ L 211, 11.8.1999, p. 47) 

Council Directive 2002/10/EC 

(OJ L 46, 16.2.2002, p. 26) 

Council Directive 2003/117/EC 

(OJ L 333, 20.12.2003, p. 49) 

2003 Act of Accession 

Council Directive 95/59/EC 

(OJ L 291, 6.12.1995, p. 40) 

Council Directive 1999/81/EC 

(OJ L 211, 11.8.1999, p. 47) 

Council Directive 2002/10/EC 

(OJ L 46, 16.2.2002, p. 26) 

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Part Β 

List of time-limits for transposition into national law and application 
(referred to in Article 22) 

Directive 

Time-limit for transposition 

Date of application  

92/79/EEC 

92/80/EEC 

95/59/EC 

1999/81/EC 

2002/10/EC 

31 December 1992 

31 December 1992 

- 

1 January 1999 

1 January 1999 

1 July 20021 

2003/117/EC 

1 January 2004 

______________ 

1 

the  Federal  Republic  of  Germany  shall  be  authorised  to  bring  into  force  the  provisions 

By way of derogation from the date set in Article 4(1) of Directive 2002/10/EC: 
(a) 
necessary to comply with Article 3(1) of Directive 2002/10/EC by 1 January 2008 at the latest; 
the  Kingdom  of  Spain  and  the  Hellenic  Republic  shall  be  authorised  to  bring  into  force  the 
(b) 
provisions necessary to comply with Article 1(1) of Directive 2002/10/EC (with regard to Article 2(1), 
second sentence, of Directive 92/79/EEC) by 1 January 2008 at the latest. 

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ANNEX II 

CORRELATION TABLE 

Directive 92/79/EEC 

Directive 92/80/EEC 

Directive 95/59/EC 

This Directive 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 1(1) and (2) 

Article 1 

Article 1(3) 

- 

- 

Article 2 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 2(1), 
introductory phrase 

Article 2(1), 
introductory phrase 

Article  2(1)  points  (a) 
and (b) 

Article 2(1)(a) and (b) 

Article  2(1)  point  (c), 
first indent 

Article 2(1)(c)(i) 

Article  2(1)  point  (c), 
second indent 

Article 2(1)(c)(ii) 

Article 2(1) final 
words 

Article 2(2) 

- 

- 

Article 7(2) 

Article 2(2) 

Article 2(3) 

Article 2(3) 

Article 4(1), first 
subparagraph 

Article 3(1),  

Article 4(1), second 
subparagraph 

- 

Article 4(2) 

Article 3(2) 

Article 3 introductory 
phrase 

Article 4(1) 
introductory phrase 

Article 3(1) 

Article 4(1)(a) 

Article 3(2) 

Article 4(1)(b) 

Article 3(3) 

Article 4(1) (c) 

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- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 1 

- 

- 

- 

Article 2(1) first part of 
the first sentence 

Article 2(1) second part 
of the first sentence  

Article 2(1) second 
sentence 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 3(4) 

Article 4(1)(d) 

Article 7(1) 
introductory phrase 

Article 4(2) 
introductory phrase 

Article 7(1) first 
indent 

Article 7(1) second 
indent 

Article 7(1) third 
indent 

Article 4(2)(a) 

Article 4(2)(b) 

Article 4(2)(c) 

Article 5 introductory 
phrase 

Article 5(1) 
introductory phrase 

Article 5(1) 

Article 5(1)(a) 

Article 5(2) 

Article 5(1)(b) 

Article 6 first 
paragraph 

Article 5(2) first 
subparagraph 

Article 6 second 
paragraph 

Article 5(2) second 
subparagraph 

Article 9(1) first 
subparagraph 

- 

Article 8(1) 

Article 16(4) 

Article 6 

Article 7 

Article 8(1) first 
subparagraph 

Article 8(1) second 
subparagraph 

Article 8(2) and (3) 

Article 8(2) and (3) 

Article 8(4) 

- 

- 

- 

- 

Article 9(1) first 
subparagraph 

Article 9(1) second 
subparagraph 

- 

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Article 2(2) first 
sentence 

Article 2(2) second 
sentence 

Article 2(3) 

Article 2(4) 

Article 2a 

- 

- 

Article 3(1) 

Article 3(2) 

Article 3(3) 

Article 3(4) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 1 

Article 3(1) first and 
second subparagraph 

Article 3(1) third 
subparagraph, 
introductory sentence 

Article 3(1) third 
subparagraph, first, 
second and third indent 

Article 3(1) fourth and 
fifth subparagraph 

Article 3(1) sixth 
subparagraph, 
introductory sentence 

- 

- 

- 

- 

- 

Article 9(2)  

- 

Article 9(3) 

- 

Article 10 

Article 16(1) and (2)  Article 11(1) and (2) 

Article 16(2a) 

Article 11(3) 

Article 16(3) 

Article 11(4) 

Article 16(5) 

Article 11(5) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 12(1) 

- 

Article 12(2) 

Article 13 

Article 14(1) 

Article 
14(2) 
introductory sentence 

- 

- 

- 

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- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 3(1) sixth 
subparagraph, 
points (a), (b) and (c) 

Article 3(1) seventh 
subparagraph 

Article 3(2) 

Article 3(3) 

Article 3(4) 

- 

- 

- 

- 

- 

Article 14(2)(a), (b) 
and (c) 

- 

Article 14(3) 

- 

Article 14(4) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 9(1) second 
subparagraph 

Article 15(1) first 
subparagraph 

Article 9(1) third 
subparagraph 

Article 15(1) second 
subparagraph 

Article 9(2) first 
sentence 

Article 15(2) first 
subparagraph 

Article 9(2) second 
sentence 

Article 15(2) second 
subparagraph 

Article 10 

Article 11 

Article 12 

Article 13 

Article 14 

Article 15 

- 

- 

- 

Article 16 

Article 17 

- 

- 

- 

- 

- 

- 

Article 18(1) 

Article 18(2) first 
subparagraph 

Article 18(2) second 
subparagraph 

Article 2(5) 

Article 5(1) 

Article 2(6) first 
sentence 

Article 2(6) second 
sentence 

- 

- 

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- 

Article 5(2) 

Article 4 first sentence  Article 4 first sentence 

- 

- 

Article 4 second 
sentence 

Article 4 second 
sentence 

Article 4 third sentence  Article 4 third sentence 

Article 18(3) 

Article 19 first 
subparagraph 

Article 19 second 
subparagraph 

Article 19 third 
subparagraph 

- 

- 

Article 17 

Article 20 

Article 5(1) 

Article 6(1) 

- 

- 

Article 5(2) 

Article 6(2) 

Article 18 

Article 21 

- 

- 

- 

- 

Article 6 

Article 7 

- 

- 

- 

- 

- 

- 

- 

- 

Article 19(1) 

Article 19(2) 

Article 20 

Article 21 

Annex I 

Annex II 

- 

- 

Article 22 first 
paragraph 

Article 22 second 
paragraph 

Article 23 

Article 24 

- 

- 

Annex I 

Annex II 

_____________ 

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