CELEX: 51989PC0579
Language: en
Date: 1989-11-24
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) LAYING DOWN DETAILED RULES FOR ABOLISHING THE TAXATION ARRANGEMENTS FOR WINE PRODUCED IN THE GRAND DUCHY OF LUXEMBOURG

COMMISSION OF THE EUROPEAN COMMUNITIES
                                          COM (89) 579 final
                                                    24
                                          Brussels,    November 1989
                           . Proposai for a
                        COUNCIL REGULATION (EEC)
       laying down detailed rules for AhYHrthlTTg the taxation
                    arrangements for wine produced
                  i n the Grand Duchy of Luxembourg
                     (presented by the Commission)
 ---pagebreak---                                                                C 0/
                                   - 2 -
                          EXPLANATORY MEtOttNIflM
1. Under the second subparagraph of Article 1 (1) of the Protocol on the
   Grand Duchy of Luxembourg and Council Regulation (EEC) No 3310/751, as
   last amended by Regulation (EEC) No 196/892, non-sparkling natural
   Luxembourg wines made from fresh grapes are exempt from excise duties
   within the territory of the Benelux Economic Union until 31 December
   1989 by way of derogation from Article 95 of the EEC Treaty.
2. The Council's last decision to extend the period of application of this
   Regulation was linked to a basic discussion on how the matter should be
   dealt with in future. At its 137th meeting, held on 19 January 1969,
   the Committee of (Deputy) Permanent Representatives agreed on the
   following:
   - it agreed unanimously to invite the Council to adopt, as an "A" item
     at one of its next meetings, a Regulation based on the Commission's
     proposal (in 0CM(88) 847 final) extending the current provisions of
     Regulation (EEC) No 3310/75 until 31 December 1989 only;
   - it agreed on the content of the proposal adopted by the Commission on
     18 January 1989 recommending that the transitional exemption from
     duties provided for in Regulation (EEC) No 3310/75 be progressively
     scaled down on 1 January 1990, 1991, 1992 and 1995, each time af a
     rate of 25% of the amount of the exemption in force on 31 December
     1989, so that the exemption is completely abolished by 1 January 1993;
1 OJ NO L 328, 20.12.1975, p. 12.
2 0J NO L 25, 28.1.1989, p. 23.
 ---pagebreak---                                     - 3 -
   - it agreed unanijnously to invite the Council formally to adopt the said
     proposal in good time before 31 December 1989 in accordance with the
     procedure for I items at Coreper level and "A" items at Council level.
3. The proposal for a draft Regulation provides for the existing Regulation
   No 3310/75 to be replaced by provisions governing the gradual
   dismantlement.
 ---pagebreak---                                     - 4
                               PROPOSAL F O R A
                    GODNCIL REGDIATICN (EEC) No      /..
                                     Of
           laying down detailed rules for abolishing the taxation
                       arrangements for wine produced
                      in the Grand Duchy of Luxembourg
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Eoonomio Community,
Having regard to the Protocol on the Grand Duchy of Luxembourg annexed
thereto,
Having regard to Council Regulation (EEC) No 3310/75 of 16 December 1975 on
agriculture in the Grand Duchy of Luxembourg1, as last amended by
Regulation (EEC) No 196/892, and in particular article 2(2) thereof,
Having regard to the proposal from the Commission,
whereas under the second subparagraph of Article 1(1) of the Protocol on
The Grand Duchy of Luxembourg, Belgium, lAxxembourg and the Netherlands are
to apply the system provided for in the third paragraph of Article 6 of the
Convention on the Economic Union of Belgium and Luxembourg of 25 July 1921;
whereas the period of application of that system was last extended by
Regulation (EEC) No 196/89; whereas the Council has to decide to what
extent those provisions should be maintained, amended or discontinued;
1 OJ No L 328, 20.12.1975, p. 12
2 OJ NO L 25, 28.1.1989, p. 23
 ---pagebreak---                                    - 5 -
Whereas the application of the said system in favour of Luxembourg wines
will continue to be of benefit to the agricultural income of the Grand
Duchy of UTxembourg in the sector concerned;
Whereas, however, the system in question was introduced as a transitory
arrangement and must in any oase be discontinued with the prospect of the
large single market advocated in the Single Act; whereas the provisions for
abolishing that system gradually must therefore be adopted as of now,
HAS ADOPTED THIS KBSULAnGN:
                                 Ai*4nfr> 1
Regulation (EEC) NO    3310/75 is hereby supplanted      by  the  following
provisions.
                                 ArtiriWta
The tax exemptions in force on 1 January 1989, pursuant to the second
subparagraph of Article 1(1) of the Protocol on the Grand Duchy of
Luxembourg, In respect of wines produced in the Grand Duchy of Luxembourg
shall be reduced by an amount equal to 29% on 1 January of each of the
following years so that the exemption is completely abolished from 1
January 1993.
 ---pagebreak---                                    - D -
This Regulation shall enter into force on 1 January 1990.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
Done at Brussels,                               For the Council
 ---pagebreak---                                                                       ISSN 0254-1475
                                                               COM (89) 579 final
                                                      DOCUMENTS
EN                                                                               09
                                 Catalogue number : CB-CO-89-535-EN-C
                                                            . ISBN 92-77-54999-8
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