CELEX: 51990PC0431
Language: en
Date: 1990-11-07
Title: PROPOSAL FOR A COUNCIL DIRECTIVE ON THE GENERAL ARRANGEMENTS FOR PRODUCTS SUBJECT TO EXCISE DUTY AND ON THE HOLDING AND MOVEMENT OF SUCH PRODUCTS

COMMISSION OF THE EUROPEAN COMMUNITIES
                                             C0MC90) 431 final
                                             Brussels, 7 November 1990
                             Proposal for a
                           COUNCIL DIRECTIVE
   on the general arrangements for products subject to excise duty
          and on the holding and movement of such products
                     (presented by the Commission)
 ---pagebreak---                                - 2-
                      EXPLANATORY MEMORANDUM
I.   INTRODUCTION
     1. The Single European Act envisages the creation, by the
        end of 1992, of a space without      internal frontiers in
        which the free circulation of goods, persons, services
        and capital is assured. This vision of a single Community
        market rests on the elimination of technical, physical
        and    fiscal   obstacles   which    were    identified   in
        Commission's 1985 White Paper on the completion of the
        sinlge market(1) as factors which divided the markets and
        economies of the Member States.
     2. This proposal for a Directive on the general arrangements
        for products subject to excise duty and on the holding
        and   movment    of   such   products,    limited   to   the
        harmonization which is necessary and leaving the Member
        States the responsibility to establish the methods of
        application and control, is part of the drive to achieve
        the complete and final abolition of tax frontiers thereby
        ensuring the establishment and         functioning   of the
        internal market within the period laid down in Article 8A
        of   the   Treaty   establishing   the   European   Economic
        Community.
     3. With the intention of creating~-the conditions necessary
        for the abolition of tax frontiers, it is required that
        the excise duty rates and structures be aligned more
        closely and to define the arrangements for the holding
        and movement of products subject to excise duties.
(1) Document COM(85) 310 of 14 June 1985.
 ---pagebreak---                              - 3-
     4. In order to achieve this, the Commission in 1987 drew up
        proposals for Directives on the harmonization of excise
        duty rates on cigarettes, manufactured tobacco other than
        cigarettes, alcoholic beverages and mineral oils(2).
        In 1989, the Commission amended its 1987 proposals, by
        introducing  an   element  of  flexibility   in the   form  of
        minimum rates or rate bands      (for certain categories of
        mineral oils) and target rates(3).
     5. As regards the establishment of harmonized structures of
        excise duty,    three proposals   for Directives have been
        presented  to   the  Council  concerning   the   structure  of
        excise duties applied to manufactured tobacco, alcoholic
        beverages   and   mineral   oils(4).   These   proposals   for
        Directives aim to eliminate the structural         differences
        incompatible   with   the   removal   of  tax   frontiers   on
        1 January 1993
     6. The present proposal for a directive on the general
        arrangements as well as on the holding and movement of
        products subject to excise duty forms part of this
        comprehensive strategy for the approximation of rates and
        the harmonization of the structure of indirect taxes.
(2) Documents COM(87)325, 326, 327 and 328 on the approximation
    of taxes on manufactured tobacco, alcoholic beverages and
    mineral oils.
(3) Documents COM(89) 525, 526 and 527 on the approximation of
    the rates of excise duty on manufactured tobacco, alcoholic
    beverages and mineral oils.
(4) Documents COM(90)...
 ---pagebreak---                                 - 4-
II.   BACKGROUND
         In   its   communications     of  14  June   1989(5)   and   of  3
         November 1989(6) the Commission announced that a proposal
         would be drafted on the movement of dutiable products,
         with the aim of ensuring compliance with the principle
         that excise duties are payable in the Member State where
         consumption actually takes place.
         In essence, the communications provided that:
         - for    individuals,    free   movement  would   be  ensured   by
            doing    away   with   travellers'    allowances    altogether
           within the Community- wide market;
         - for commercial operations, the movement of goods would
            take place via interconnected warehouses under duty-
            suspension arrangements to the place of consumption.
         In its conclusions, the Economic and Financial Affairs
         Council of 13 November 1989 proposed as a general
         principle of the arrangements for the movement and
         circulation of goods subject to excise duty "that
         products of the sort of goods subject to excise duty
         would      circulate      under      duty-suspension       between
         warehousekeepers authorized by the authorities of the
         Member     States. Appropriate        provisions    would    allow
         purchasers       who    did    not    have    the    status     of
         warehousekeepers to make their purchases from sellers of
         other Member States, with payment of excise duty in the
         State of consumption".
 (5) Document COM(89) 260
 (6) Document COM(89) 551
 ---pagebreak---                                 5-
III. COMMISSION PROPOSAL
     9. The present proposal     for a Directive    is based   on the
        approach set out in the Commission communication quoted
        above and the conclusions of the Economic and Financial
        Affairs Council of 13 November 1989.
        It  lays   down  the   general  provisions    concerning   the
        geographic boundaries, the type of products subject to
        excise  duties  at   the  Community   level,   the  chargeable
        event and the chargeability of the tax as well as the
        principle   of the fiscal territory,     and the   particular
        provisions concerning the arrangements       for the holding
        and   movement   of   products   subject    to   excise   duty
        (ARRANGEMENTS   FOR    INTERCONNECTED   WAREHOUSES)    GENERAL
        PROVISIONS
    10. The present proposal for a directive establishes the
        geographic extent for the holding and movement of
        excisable products      in order    to    ensure a     uniform
        application of the provisions of the said proposal as
        well as of the provisions present in the proposals
        relating to the rate and excise structures.
    11. The products covered by the proposal are:
        - manufactured tobacco;
        - alcoholic beverages;
        - mineral oils.
        The above-mentioned products are not subject to any other
        taxation other than excise duty and value added tax.
        It is also necessary to lay down the extent to which
        other excise duties, and other indirect taxes in general
        directly or indirectly affecting the consumption of
        products, can still be charged by the Member States. Such
        charges could be made, notably for environmental reasons,
 ---pagebreak---                         - 6-
    on condition that they are applied to a specific product
    or a group of products and that they do not give rise, in
    trade between the Member States, either to taxation on
    entry into the national territory and remission of tax on
    leaving the national territory, or to controls at
    Community frontiers.
    This principle has already been established in Article 2
    of Directive 72/464/EEC on taxes other than turnover
    taxes which affect the consumption of manufactured
    tobacco.
12. In the field of excise duties applicable to the products
    mentioned in point 11, the chargeable event takes place
    at the stage of manufacture in the Community and on
    importation into the Community from third countries.
    Excise duty becomes chargeable when the products in
    question are released for consumption.
    This proposal provides that the chargeable event becomes
    a "Community" chargeable event. As for the chargeability,
    it takes place at the time products are made available to
    any natural or legal person upon leaving any duty or tax
    suspension arrangements.
13. The general principle underlying the intra-Community
    movement of dutiable products is that excise duties are
    payable in the country in which the products are actually
    consumed.    (maintaining   the _ principle   of   fiscal
    territoriality).
    This principle also holds when products subject to excise
    duty are sold or applied for the purposes of a business,
    a body governed by public law or activities in the public
    interest.
 ---pagebreak---                               7 -
        Mail order sales within the meaning of Article 28 of the
        Sixth VAT Directive(7) as amended by the Directive
        supplementing the common system of value added tax(8) of
        products subject to excise duty also follow this
        principle.
    ARRANGEMENTS   FOR   INTERCONNECTED     WAREHOUSES   (PROVISIONS
    RELATING TO THE ARRANGMEENTS FOR MOVEMENT AND CONTROL)
    14. The movement of products subject to excise duty under
        duty-suspension     arrangements      takes    place     via
        interconnected tax warehouses. The opening of such
        warehouses is subject to authorization by the competent
        tax authorities.
        The  holder  of  this   authorization   is  referred  to  as
        "authorized warehousekeeper" in the Directive.
        The movement of products subject to excise duty under
        duty-suspension arrangements is carried out on the basis
        of an accompanying administrative document or of a
        commercial document of the consignee.
        Upon receipt of the goods by the consignee he shall
        return to the sender a copy of the accompanying
        administrative document or a copy of the commercial
        document certifying that the goods have indeed been
        received.                        ~~
    15. The present proposal for a directive leaves for each
        Member State the possibility to impose on its own
        territory the use of identification marks or tax
        identification markings. It clearly follows that the
        Member States who levy excise duties by means other than
        by tax identification markings must ensure that no
(7) Council Directive 77/388/EEC.
(8) Proposal for Directive Document COM(90) 182.
 ---pagebreak---                       - 8-
    barrier, neither administrative nor technical, affects
    the intra-Community traffic of the products subject to
    the excise duty.
    In order to avoid offences being committed in any Member
    State resulting from the controls exercised on products
    carrying the tax      identification   markings   or the
    identifying marks of another Member State, the movement
    of such products in the Member State which does not
    correspond to the tax or identification markings is
    considered   to   be   carried   out   under    suspension
    arrangements, which is to say, on the strength of the
    Accompanying   Administrative   Document   or   Commercial
    Document.
16. In order to ensure the payment of duties to the State of
    actual consumption and to avoid double taxation resulting
    from the release for actual consumption in one Member
    State of products subject to excise duties in another
    Member State, two separate refund systems have been
    provided for in the present proposed directive.
    It follows, obviously, that the two distinct procedures
    of reimbursement, the purpose of which is, to avoid
    double taxation resulting from products being released
    for consumption twice, in two different Member States,
    enable warehousekeepers other than those holding the
    authorization mentioned not to be excluded from intra-
    Community trade in products subject to excise duties so
    that this trade should not be monopolised by only a few
    specialised operators.
 ---pagebreak---                              - 9-
IV.  CONCLUSION
    17 • The present proposal for a Directive on the general
         arrangements as well as the holding and movement of
        products subject to excise duties, together with its
        proposals on the approximation of rates of excise duty
         and the harmonization of the structure of excise duties,
        without forgetting the value added tax proposals which
        have already been sent to the Council serves two major
         objectives. First, they permit        the complete and
         definitive abolition of tax frontiers by reducing
         potential   evasion   and  distortion    of competition.
        Moreover, they take account, as far as possible, of the
        Member States'legitimate wish not to have their economic
         and tax systems unnecessarily disrupted.
 ---pagebreak---                            - 10 -
                  COMMENTARY ON THE ARTICLES
Article 1 is very general in scope.    It reproduces the wording
of the 1972 proposal for a Directive.
Article 2 relates to the geographical boundaries within which
the Directive applies.    This article is essential to ensure a
uniform  application  in the Member States, not alone    of the
.provisions put in place by this direvctive, but also of the
provisions  relating  to  rates   set out in particular   in the
directives dealing with each excise product.
Article 3 lists the goods subject to excise duty at Community
level, excludes the possibility of applying other levies to
them, and sets the rules for other taxes which may be levied on
specific products.
Each Member State retains the right to maintain or introduce
other taxes on specific products, but on the express condition
that this does not impede the free movement of goods and does
not result in the maintenance of tax frontiers.
Article 4 presents a new Community concept of the chargeable
event and of chargeability. It is essential for the chargeable
event to be a Community event in order to prevent its existence
from being linked to the crossing of an intra-Community
 frontier. It is also essential for chargeability to be linked
to release for consumption, not to the crossing of an intra-
Community frontier, which is incompatible with a Market without
frontiers.
Within the meaning of the present directive, the release for
consumption of a product subject to excise duties is its free
availability to a person on the territory of a Member State and
after payment of the duties and taxes in this Member State.
 ---pagebreak---                          - 11 -
Article 5 states that any sale or acquisition of products
subject to excise duty for the purposes of a business, a body
governed by public law, or activities in the public interest,
and any mail order sale within the meaning of Article 28 of the
VAT Directive gives rise to payment of the excise duty in the
country in which these products are actually consumed.
Subject to some essential provisions to ensure the proper
functioning of the internal market, Articles 6 to 10 leave it
to the Member States to regulate production and holding
provided that they observe certain minimal rules in order to
prevent excessive differences of treatment between one another.
Title III lays down the minimum rules needed to allow uniform
intra-Community   movement    without  barriers   and   without
discrimination between warehousekeepers.
Article 11 makes it easier for Member States to carry out
controls by enabling warehousekeepers to be identified as a
result of their obtaining authorization, but also guarantees to
each warehousekeeper that his authorization is valid nationally
and throughout the territory of the Community.
It also provides the possibility of a non-authorized
warehousekeeper to have access to the arrangements, subject to
certain conditions.
Article 12 relates to the document which has to accompany the
goods. There is a choice between an administrative document
and a commercial document.
The use of a commercial document containing certain compulsory
information is the simplest and least burdensome solution.
However, the fact that the language of the document may not be
understood and that it might contain commercial information
which could be confidential must not exclude the possibility of
using a document ad hoc...
 ---pagebreak---                         - 12 -
It was therefore considered essential to draw up a Community
administrative document which would have to be used for
Community movement, but which could also be used, by the
Member States which so wished, for national movement. But it
must be as simple as possible and only include essential
information for the purposes of excise duties.
The document would be preauthenticated, so that there would be
no need to call at an office. The authorized warehousekeeper
will   not    therefore    be  subjected    to   administrative
complications.
The simplicity of this document, combined with its direct use
by the warehousekeeper, does not justify the use of a
simplified procedure.
Paragraph 2 of the Article enables this document not to be used
if the goods are circulating on the strength of other existing
procedures. Paragraph 3 allows Member States to monitor raw
materials (for example raw tobacco leaves or crude oil), which
is not essential on a Community level.
Article 13 clearly indicates that the document is drawn up on
the responsibility of the authorized warehousekeeper and
circulates between warehousekeepers.
The provisions of Article 14 are identical          to  similar-
provisions relating to Community transit.
Article 15 is an option, not an~~ obligation, which the
Member States may choose. It seemed that identifying marks
could be useful but that they were not the ideal or only
solution, in that they do not resolve all the possible
difficulties of applying free movement.
Paragraph 4 is necessary in order to avoid any increase in
evasion.
 ---pagebreak---                           - 13 -
It did not seem appropriate to lay down a time-limit for
payment even* if, in financial terms, this can lead to
distortions of competition.. The main point is to prevent time
limits for payment from offering an advantage to national
traders.
Article 16 provides two separate refund arrangements in order
to avoid double taxation resulting from products being released
for consumption twice in two different Member States.
The first offers the possibility to any sender, to enter or put
goods back into duty-suspension arrangements and allows in this
way a reimbursement in the first Member State before payment in
the second Member State.
When the first arrangements are not applicable, a second
provides a retrospective reimbursement after payment in the
other Member State. This procedure, financially constraining,
nevertheless allows the release from or return into suspension
arrangements to be avoided.
Article 17 stipulates that the conditions for reimbursement of
excise duties are fixed in essence by the Member States with
the exception of the period of reimbursement which must be more
or less the same to avoid any discrimination.
Article 18 refers to the exemptions arising from international
agreements entered into by the Member States. This provision
exists in other texts and is clearly necessary here.
Title VI, concerns the Committee on Excise Duties. This
Committee is to be competent, not only for questions which
might arise in implementing this Directive, but also for
questions deriving from the implementation of the "vertical"
Directives on the rates and structures for manufactured
tobacco, alcoholic beverages and mineral oils.
 ---pagebreak---                                     - 14 -
                                Proposal for a
                             COUNCIL DIRECTIVE
                on the general arrangements for products
                    subject to excise duty and on the
                 holding and movement of such products
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community, and in particular Article 99 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard       to   the   opinion     of  the   Economic     and   Social
Committee,
Whereas the establishment and functioning of the internal market
require the free movement of goods, including those subject to
excise duties;
Whereas provision should be made to define the territory on which
this Directive, as well as the directives on the rates and
structures of duty on products subject to excise duties, are to be applied;
Whereas the concept of products subject to excise duty should be
defined; whereas only goods which are treated as such in all the
Member States may be the subject of Community provisions; whereas
the maintenance or introduction of excise duties on other goods
in one or more Member States must not, either by taxation upon
entry into or de-taxation on exit from the national territory, or by
 frontier controls, form an obstacle to the principle of free
movement;           •                                   *
 ---pagebreak---                                   - 15 -
Whereas, in order to ensure the establishment and functioning of the internal
market, the chargeable event for the tax debt, and changeability, should be
identical in all the Member States;
Whereas, since chargeability falls within the competence of each Member State,
no sale or acquisition for the purposes of a taxable person, as defined in
                                         i
Article 4 of Council Directive 77/388/EEC , as last amended by Directive
           2
89/465/EEC , taking place in a Member State other than the one of release for
consumption gives rise to chargeability to excise duty in the Member State
of sale or acquisition; whereas provision should however be made to modify
this provision in due course;
Whereas in order to ensure that the tax debt is eventually collected it should
be possible for checks to be carried out   in production and storage facilities
as soon as the chargeable event occurs; whereas a system of warehouses, subject
to authorization by the competent authorities, should make it possible to carry
out such checks;
Whereas movement from the territory of one Member State to that of another may
not give rise to checks liable to impede free movement within the Community;
whereas for the purposes of chargeability it is nevertheless necessary to know
of the movements of products subject to excise duty; whereas an interconnection
of authorized warehouses makes it possible to follow these movements;
Whereas provision should be made, to ensure the collection of taxes at the
rates and on taxable goods defined by Member States, for the establishment of
a procedure for the movement of such goods under duty suspension;
Whereas in that respect provision should first be made for each consignment to
be easily identified, with the possibility of occasional checks being carried
out in the course of transportation; whereas provision should be made for the
tax status of the consignment to be immediately identifiable; whereas it is
1
  0J No L 145, 13.6.1977, p. 1 .
2
  0J No L 226, 3.8.1989, p. 21.
 ---pagebreak---                                  - 16 -
therefore necessary to provide for an accompanying document capable of
meeting these needs, which may be either an administrative or commercial
document; whereas the commercial document used must contain the essential
elements which appear on the administrative document;
Whereas there is no need for the accompanying document to be used when the
products subject to excise duties are moved under other general suspension
arrangements;
Whereas in the context of national chargeability, excise duty should, in
the event of an offence or irregularity, be recovered by the Member State
on whose territory the offence or irregularity has been committed, or by
the Member State where the'offence or irregularity was ascertained, or by
the Member State of departure in the event of non-presentation in the Member
State of destination;
Whereas the Member States may provide that products released for consumption
should carry national identification marks and whereas the use of these
marks should not place any obstacle in the way of intra-Community trade;
Whereas the payment of the excise duties in the Member State where the last
commercial transaction took place must give rise to the reimbursement of
the excise duties in the Member State of first release for consumption in
order to avoid double taxation;
Whereas provision should be made for exemptions resulting from agreements
concluded by the Member States with other States or with international
organizations;
 ---pagebreak---                                        - 17 -
Whereas f i n a l l y provision should be made t o s e t up a Committee on
Excise Duties t o take p a r t in t h e p r e p a r a t i o n of Community r u l e s
necessary for t h e implementation of t h i s D i r e c t i v e , and of
Directives              on the structures of duty on manufactured tobacco,
a l c o h o l i c beverages and mineral o i l s ,
HAS ADOPTED THIS DIRECTIVE:
 ---pagebreak---                                                 - 18 -
                                               TITLE I
                                      GENERAL PROVISIONS
                                              Article 1
1. This Directive lays down the arrangements for excise duties
    and other indirect taxes which are levied directly or
    indirectly on the consumption of products, except for value
    added tax and taxes established by the institutions of the European
    Communities.
2. The particular provisions relating to the rates and structures
    of duty on products subject to excise duty are contained in
    Directives... (1) .
                                              Article 2
    T h i s D i r e c t i v e , a s w e l l a s t h e D i r e c t i v e s referred to in Article
    1(2),      shall           apply w i t h i n     the     customs t e r r i t o r y   of   the
    Community as defined in Council Regulation (EEC) No 2151/84.
(1)/0J No C 12, 18.1.1990, p. 4; (COM(89)525 final);
       OJ No C 16, 23.1.1990, p 10 (COM(89)526 final)
       OJ No C 12, 18.1.1990, p, 12 (C0M(89)527 final)
       OJ No C             ,                , p,         (COM(90)                  )
       OJ No C             ,                , p,         (COM(90)                  )
       OJ No C             ,                ,p           (COM(90)                  );7
 (2) OJ N L197, 27.07.1984, p 1.
 ---pagebreak---                              - 19 -
                            Article 3
1. For the purposes of this Directive, products subject to excise
   duty means the following products as defined in the Directives
   relating to them:
   - mineral oils
   - alcoholic beverages
   - manufactured tobacco.
2. The products mentioned in paragraph 1 shall not be subject to
   any tax other than excise duty and value added tax.
3. Member States shall retain the right to introduce or maintain
   taxes which are levied on products other than those mentioned
   in paragraph 1, provided that they do not involve, in trade
   between Member States, either the charging of tax when the
   products enter the national territory and remission of tax
   when they leave the national territory, or border controls.
                            Article 4
1. The chargeable event for the excise duty levied on the
   products subject to excise duty shall be production on the
   territory of the Community or importation onto the territory
   of the Community from third countries.
2. Excise duty shall become chargeable when the products are
   released for consumption. Release fur consumption shall mean
   the making available, to a natural or legal person, on the
   territory of a Member State, of any products subject to excise
   duty, when the product leaves any arrangement under which
   payment of duties and taxes is suspended.
3. The rate of excise duty to be applied shall be the rate in
   force on the date on which the duty becomes chargeable. The
   excise duty shall be levied and recovered according to the
   rules laid down by each Member State, with the time-limit for
 ---pagebreak---                                    - 20 -
   payment t o apply w i t h o u t d i s t i n c t i o n    between    national
   products and those of other Member States.
                                 Article 5
1. In addition to the general provisions of Article 4, excise
   duty shall become chargeable on the territories specified
   below in the following circumstances:
   (a) the    sale    of   products    subject           to    excise   duty    in   a
        Member State other than that in which the products are
        released     for    consumption,         after        their    release     for
        consumption,     shall   give    rise        to    chargeability      to
        excise    duty   in the   Member State            where    the   sale    takes
        place;
   (b) the acquisition of products subject to excise duty for the
        purposes of a taxable person as defined in Article 4 of
        Directive    77/388/EEC     and     for       the     purposes    of   bodies
        governed by public law as defined in the same Article 4(5)
        first subparagraph,       in   a      Member State other than that
        in which the product is released for consumption, shall
        give   rise   to  chargeability        to       excise    duty   in the
        Member State where the acquisition takes place;
   (c) without         prejudice        to            the        provisions         of
        paragraph (a),supplies made within the context of mail-
        order selling, as defined in Article 28 of Directive
               (1)/ shall give rise to chargeability of the excise
        duty in the Member State where the goods are situated at
        the time of arrival of the consignment or transport at the
        destination of the person by whom the goods are acquired.
2. Before 1 January 1997, the Council, on the basis of a report
   by the Commission, shall re-examine the provisions of
   paragraph 1, and, if necessary and acting on a proposal from
   the    Commission,      after    consultation             with     the    European
(1) OJ No /C 176, 17.07.1990, p. 8;       COM(90) 182/.
 ---pagebreak---                                              - 21 -
   Parliament, shall adopt amendments to these provisions
                                            TITLE II
                                     PRODUCTION AND HOLDING
                                           Article 6
1. Each Member S t a t e s h a l l d e t e r m i n e i t s r u l e s c o n c e r n i n g t h e
   p r o d u c t i o n and h o l d i n g of products subject to duty, subject to the
    provisions of this Directive.
2. The production and holding of products subject to excise duty,
   where t h e l a t t e r h a s n o t been p a i d , s h a l l be subject
    to checks c a r r i e d o u t under t h e system of t a x warehouses,
   h e r e i n a f t e r c a l l e d "warehouses".
                                           Article 7
The opening of warehouses s h a l l be s u b j e c t t o          authorization by the
competent a u t h o r i t i e s of t h e Member S t a t e s .
The h o l d e r s of such authorization shall be known as authorized
warehousekeepers.
                                            Article 8
An   authorized warehousekeeper shall:
(a)    provide         a guarantee;
(b)    comply with all the requirements laid down with regard to
       warehouses ;
(c)    produce the goods whenever so required;
(d)    consent to           all checks and controls;
(e)    keep stock records.
 ---pagebreak---                                  - 22 -
                               Article 9
The warehousing procedure shall be discharged when products are
released for consumption, released on the market under cover of a
transit procedure, a TIR transit procedure, a Rhine Manifest or
form    302     provided for by the convention between the States
which are parties to the North Atlantic Treaty, placed in a free
zone, exported or re-exported outside the territory of the
Community, abandoned to the Exchequer where this possibility
exists, or destroyed under supervision.
                              Article 10
1. An     authorized warehousekeeper shall enjoy exemption in
    respect of losses occurring during the storage period and
    attributable to fortuitous events, force majeure or causes
    inherent in the nature of the products.
2. In cases of irregular removal, duties and taxes shall be
    collected on the basis of the rates applicable at the time of
    removal. If the date of removal cannot be ascertained, the
    rate that shall apply shall be the highest rate applicable
    since the date of deposit in the warehouse or since the last
    checking of the products, up to the date of ascertaining the
    shortage.
                               TITLE III
                           MOVEMENT OF GOODS
                              Article 11
1. Movement under the duty-suspension arrangements of products
    subject to excise duty shall take place between authorized
    warehousekeepers.    The products shall then be deemed to be
    remaining under the warehousing system.
2. The identification of products subject to excise duty moving under
    the duty-suspension arrangements shall be ensured by sealing,
 ---pagebreak---                                   - 23 -
   by capacity where the means of transport is capable of being recognized as
   suitable for sealing, or by individual package in other cases.
3. Warehousekeepers authorized by the competent authorities of a
   Member State, in accordance with the provisions of Article 7,
   shall be deemed to be authorized for national and intra-
   Community movement operations.
4. The risks inherent in national and Community movement shall be
   covered by the guarantee provided by the authorized warehousekeeper
   of dispatch, as provided for in Article 8.
   This guarantee shall be valid throughout the Community.
5. By way of derogation from the provisions of the first sentence
   of paragraph 1, it shall be possible for the consignee not to
   be an authorized warehousekeeper. In such cases payment of
   the excise duty shall be made as soon as the products arrive
   at the consignee, under the conditions laid down by the
   competent authorities.
                                 Article 12
1. Notwithstanding the possible use of computerized procedures,
   all products subject to excise duty moving under the duty-
   suspension arrangements between the territories of different
   Member States shall be accompanied by a document drawn lip by
   the authorized warehousekeeper of dispatch, being either an
   administrative document such as that set out in Annex I, or a
   commercial document containing the particulars listed in
   Annex 2.
2. Paragraph 1 shall not apply where products subject to excise
   duty move under the circumstances provided for in Article 9.
 ---pagebreak---                                            - 24 -
3. Without prejudice to the provisions of Article 3(3),
   Member States shall be able to maintain the rules on the
   movement of raw materials used in the manufacture or
   preparation of products subject to excise duty.
                                         Article 13
1.  A copy of t h e accompanying a d m i n i s t r a t i v e document o r a copy
   of t h e commercial document s h a l l be r e t u r n e d w i t h o u t d e l a y for
   d i s c h a r g e , and n o t l a t e r t h a n i n t h e month which follows
   receipt,           by t h e   consignee to the consignor.
2.   I f t h e r e i s no d i s c h a r g e , t h e consignor shall inform the competent
     authorities thereof.
                                         A r t i c l e 14
1. Where an offence or irregularity has been committed in the
   course of movement, the recovery of the excise duty shall be
   effected in the Member State where the offence or irregularity was committed
2. When in the course of movement, an offence or irregularity has
   been committed without its being possible to determine where it
   has been committed, it shall be deemed to have been committed
   in the Member State where it was detected.
3. Where products are not presented in the warehouse of the
   authorized warehousekeeper who is the consignee, or in the
   places designated in Article 11.(5) and in Article 16(1),
   the offence or irregularity is deemed to have
   been committed in the Member State of departure, unless,
   within a period to be determined, evidence is produced, to the
   satisfaction of the competent authorities, of the correctness
   of the operation, or of the place where the offence or
   irregularity was actually committed.
4. If, before the expiry of a period of three years from the date
   on which the accompanying document was drawn up, the
   Member State where the offence or irregularity was actually
 ---pagebreak---                               - 25 -
   committed is ascertained, this Member State shall recover
   the excise duty.
   In this case, as soon as evidence of recovery        has been
   furnished, the excise duty originally collected      shall be
   refunded.
                            Article 15
1. Member States may provide that products released           for
   consumption or sold on their territory shall carry national
   identification marks or tax identification markings.
2. Any Member State using national identification marks or tax
   identification markings shall be required to make them
   available to manufacturers and traders of the other
   Member States.
3. Member States which collect excise duty by means other than
   tax identification markings shall ensure that no barrier,
   either administrative or technical, affects intra-Community
   trade.
4. Products carrying a national identification mark or tax
   identification markings of a Member State may be released for
   consumption only in that Member State.
5. The circulation of products carrying a national identification
   mark or tax identification markings of a Member State and
   intended for sale in that Member State, within the territory
   of another Member State, shall be covered by the arrangements
   laid down in Articles 9 and 12(1).
 ---pagebreak---                                               - 26 -
                                            TITLE IV
                                         REIMBURSEMENT
                                           Article       16
1. The products subject t o excise duty r e l e a s e d for consumption,
   may, at the request                    of        any      consignor,           and
   by          derogation        from    Article 11(1),               be        the subject
   of         a         release     from     or of           a       r e t u r n i n t o the duty-
   suspension arrangements and of a reimbursement of excise
   d u t i e s in the Member S t a t e of r e l e a s e for consumption, when
   the products are a c t u a l l y destined t o be released for
   consumption in another Member S t a t e , or in the circumstances
   l a i d down in A r t i c l e 18.
2.  In the case of duly-established exceptional circumstances preventing the
   a p p l i c a t i o n of the provisions of paragraph 1 , the Member State i n which
   the release f o r consumption took place               s h a l l reimburse the amount
   wrongfully p a i d , on request, showing the payment of the excise duties i n
   the Member State i n which the a c t u a l release f o r consumption took place.
                                           A r t i c l e 17
Without prejudice to the provisions of Titles II, III, and IV the
Member States shall determine the conditions, including the guarantee,
which shall be valid throughout the Community, under which the
release from or returning into the duty-suspension arrangements,
the ensuing                 reimbursement, as well as reimbursement                              a
posteriori are applied. However, the reimbursement must be made
within a period of one month from the day of the release from or
return into the duty-suspension arrangements as provided for in
Article 16(1), or from the day that the request for reimbursement
is lodged as provided for by Article 16(2).
 ---pagebreak---                                         - 27 -
                                       TITLE V
                                      EXEMPTIONS
                                     A r t i c l e 18
The   products     subject      to excise          duty   shall    be exempted      from
payment of excise duty where they are intended for diplomatic or
consular representations, international organizations recognized
as such by the authorities of the host country, and members of
such   representations and organizations within the limits               laid down by
the conventions     establishing    them or, in the Member States which are
parties to the North Atlantic Treaty, for the armed forces of
other States which are parties to that Treaty for the use of such
forces or the civilian staff accompanying them or for supplying
their messes      or canteens where               such  forces     take part     in the
common defence effort.
                                      TITLE VI
                           COMMITTEE ON EXCISE DUTIES
                                     Article 19
1. A    Committee        on   Excise       Duties,       hereinafter       called     the
    "Committee",      is   hereby s e t up,         composed   of    the    representatives
    of t h e Member S t a t e s   and   chaired      by  the  representative    of  the
    Commission.
2. The Committee s h a l l adopt i t s own r u l e s of           procedure.
 ---pagebreak---                                      - 28 -
                                   Article 20
1. The    Committee     may    examine    any    question    relating     to   the
    application     of  this   Directive,     and of   Directives     .... (1) on
    manufactured      tobacco,   alcoholic     beverages   and   mineral     oils,
    submitted to it by its chairman either on his own                  initiative
    or at the request of the representative of a Member State.
2. After consulting the Committee, the Commission shall adopt the
    provisions necessary       for the implementation of Titles II, III
    and   IV   of   this    Directive,     and   of  Directives     ...(2)      on
    manufactured tobacco, alcoholic beverages and mineral oils.
3. The    representative      of   the   Commission     shall   submit    to   the
    Committee a draft of the measures to be taken.                The Committee
    shall   deliver    its opinion     on the draft, within        a  time-limit
    which the     chairman may lay down according           to the urgency      of
    the matter, if necessary by taking a vote.
    The opinion shall be recorded in the minutes; in addition, each Member
    State shall have the right to ask to have its position recorded in the
    minutes.
    The Commission       shall  take the utmost       account   of the     opinion
    delivered by the Committee.           It shall inform the Committee of
    the manner in which its opinion has been taken into account.
                                    Article 21
Member     States      shall    bring     into     force,    not     later    than
31 December 1992,         the   laws,     regulations     and     administrative
provisions necessary to comply with this Directive.
 (1) /OJ No  C 12 of 18.01.90 p. 4; (COM(89)525 final)
      OJ No  C 16 of 23.01.90 p. 10         (COM(89)526 final)
      OJ No  C 12 of 18.01.90 p. 12         (COM(89)527 final)
      OJ No  C      of             p.    ; (COM(90)             )
      OJ No  C      of             p.    ; (COM(90)             )
      OJ No  C      of             p.    ; (COM(90)             )7
 (2) /ÔJ No  C     of    p.      (COM(90)      )
      OJ No  C     of    p.   ; (COM (90)      )
      OJ No  C     of    p.   ; (COM(90)
 ---pagebreak---                               - 29 -
When the Member States adopt such provisions they shall contain a reference
to this Directive or shall be accompanied by such a reference on official
publication.  The Member States shall lay down the manner in which such
reference shall be made.
                             Article 22
This Directive is addressed to the Member States.
Done at                                                 For the Council
 ---pagebreak---                                -30 -
ANNEX I
                       EXPLANATORY NOTE ON THE
                ACCOMPANYING ADMINISTRATIVE DOCUMENT
I.  GENERAL REMARKS
     (a) The document shall be completed legibly and in a manner
          that makes the entries indelible.     It must not contain
          erasures or overwriting.     Alterations must be made by
          crossing out the incorrect particulars and, where
          appropriate, adding those required. Any such alteration
          must be initialled by the person making it and
          officially endorsed.
     (b) In boxes 9 and 14, any unused space reserved for the
          description of the goods must be crossed through so that
          it can no longer be used.
     (c) The document may be used only for a single type of goods
          subject to excise duty.
II.  HEADINGS
-1-  Consignor
     Indicate the surname and forename, or name of firm, and the
     address of the sender.
     - if the consignor is an authorized warehousekeeper indicate
        his authorisation number as well as the identification
        number of the warehouse.
     - if the consignor is not an authorised warehousekeeper give
        only the information required in the first paragraph.
 ---pagebreak---                             - 31 -
-2-  Reference number
     Serial number    of  the   consignment,  etablished by  the
     consignor.
-3-  Date
     Date of dispatch.
-4-  Consignee
     Give the information set out in paragraph 1 in respect of
     the consignee.
-5-  Person financially responsible
     Normally this is the consignor. In the case of a subsidiary
     or a branch, it is necessary to indicate the person with
     real financial responsibility (for example the parent
     company).
-6-  Country of dispatch
     Show the country of the consignor.
-7-  Country of destination
     Show the country of the consignee.
-8-  Identification of the means of transport
     Indicate the nature, nationality and registration number of
     the means of transport used. In the event of intermediate
     reloading, indicate the different means of transport.
-9- and -14- Description of the goods - Number of containers -
      Number and nature
     Indicate clearly the nature of the goods (wine, whisky,
     cigarettes, gas oil, etc.), the indentification numbers of
     the containers, their number, their nature (bulk, bottles,
     cardboard boxes, etc.). In addition,
 ---pagebreak---                            - 32 -
     - for alcoholic beverages, indicate the number of litres and
       fractions of litres, the actual alcoholic strength
       (percentage by volume) at the temperature of 20°C;
     - for mineral oils: indicate the number of litres or, where
       appropriate, the net weight in kilograms and the
       temperature expressed in degrees centigrade;
     - for manufactured tobacco,
       . for cigars, cigarillos and cigarettes, the number of
         items ;
       . for smoking tobacco, chewing tobacco and snuff, the net
         weight in kilograms.
-10- and -15- CN Code
     Indicate the code from the Combined Nomenclature for the
     goods.
-11- and -16- Gross weight
     Indicate the gross weight.
-12- and -17- Net weight
     Indicate the net weight.
-13- and -18- Value
     Indicate the value solely for manufactured tobacco.
-19- Itinerary and travelling time for the journey
     These must be indicated.
-20- Place and date of completion - authentication
     The Accompanying Administrative Document is completed by the
     consignor according to the rules set out by each Member
     State.
 ---pagebreak---                              - 33 -
-21- Controls
     Indicate the result of the possible controls applied at the
     time, of   loading,  in    transit,  or   at  the  destination
     warehouse. If seals have been fixed indicate the number and
     type and their serial numbers.
-0-  Copy for ...
     In figures, the sequential number of the copy in the set
     with the indication of who each copy is sent to.
III.  COMPLETION OF THE DOCUMENT
     The Accompanying Document is made up of five copies, that
     is:
     (1) Copy for the consignor;
     (2) Copy  for  the  competent   authority  in  the country  of
         departure;
     (3) Copy for the consignee;
     (4) Copy for the    competent   authority  in  the country  of
         destination.
     (5) Copy for cross reference returned by the consignee for
         discharge of the consignor's liability.
 ---pagebreak---                                                         - 34 - ,.A C C O M P A N Y INt ADtflNlSTRA7 iVE DOCUMENT
EUROPEAN COMMUNITY
 'i. AUViiCi^ùv-J ...-.:;!:>i-UJSi: KEEPER CO!J3.IGl.CR    2. REFERENCE N°                          3. DATE
 4. AUTHORIZED WAREHOUSE KEEPER             CONSIGNEE      5. PERSON WITH FINANCIAL RESPONSIBILITY
                                                           Ô. COUNTRY OF DESPATCH                  7. COUNTRY OF DESTINATION
 8. IDENTIFICATION OF TRANSPORT
                                                                                            •
                                                                                          i
  9. DESCRIPTION' OF GOODS - NUMBER OF CONTAINERS                     10. CN CODE         | 11. GROSS WEIGHT 12. NET WEIGHT
      QUANTITY AND PACKAGES - MARKS AND NUMBERS                                           i
                                                                                          |
                                                                                          i
                                                                                          !
                                                                                          1
                                                                                          1
                                                                      13. VALUE           1
  14. DESCRIPTION OF GOODS - NUMBER OF CONTAINERS                     15. CM CODE            16. GROSS WEIGHT   17. NET WEIGHT
       QUANTITY AND PACKAGES - MARKS AND NUMBERS
                                                                      18. V A L U E _
   19. ITINERARY AND TIME FOR JOURNEY                                 20. PLACE AND DA i ~
                                                                             SIGNATURE
 ---pagebreak---                - 35 -
2 1 . CONTROLS
 ---pagebreak---                              - 36 -
    ANNEX II
                    EXPLANATORY NOTE ON THE
                       COMMERCIAL DOCUMENT
I;  GENERAL REMARKS
    (a) The document shall be completed legibly and in a manner
        that makes the entries indelible. It must not contain
        erasures or   overwriting. Alterations must be made by
        crossing  out    the  incorrect   particulars  and,  where
        appropriate, adding those required. Any such alteration
        must be initialled by the person making it.
    (b) The Commercial Document may be used only for a single
        type of goods subject to excise duty.
II. COMPLETION OF THE DOCUMENT
    The Commercial Document must be completed in quintuplilate
    (1 original plus 4 copies).
    1. Original for the consignor.
    2. Copy for   the   competent   authority  in  the country  of
       despatch.
    3. Copy for the consignee.
    4. Copy  for  the   competent   authority  in  the country  of
       destination.
    5. Copy for cross reference returned by the consignee for
       discharge of consignor's liability.
 ---pagebreak---                                - 37 -
III. ESSENTIAL INFORMATION REQUIRED TO COMPLETE THE COMMERCIAL
     DOCUMENT IN ORDER TO SATISFY THE MEASURES OF THE DIRECTIVE
     a) Consignor
        - Indicate the surname and forename, or name of firm, and
          full address of the consignor.
        - If the consignor is an authorised warehousekeeper give
          his authorisation number as well as the VAT number.
        - If the consignor is not an authorised warehousekeeper
          but a taxable person for VAT give the VAT number.
        - If    the    consignor      is    neither  an  authorised
          warehousekeeper nor registered for VAT give only the
          information set out in the first paragraph.
     b) Date
        Give  the   invoice   date     (which  need not necessarily
        coincide with the date of despatch) as well as the date
        of delivery of the goods.
     c) Invoice number
        This number is given by the sender.
     d) Consignee
        Give the information set out at para, a) in respect of
        the consignee.
     e) Special information
        When products subject to excise duty are despatched under
        duty suspension arrangements the commercial document must
        state "Goods sent under excise duty suspension".
 ---pagebreak---                          - 38 -
f) Identification of means of transport
   Show the type, nationality and registration number of the
   means of transport used. In the event of       intermediate
   reloading, indicate the different means of transport.
g) Description of the goods - Number of containers - Number
   and nature
   Indicate clearly the nature of the goods (wine, whisky,
   cigarettes, gas oil, etc.), the identification numbers of
   the   containers,   their    number,  their  nature   (bulk,
   bottles, cardboard boxes, etc.). In addition,
   - for alcoholic beverages, indicate the number of litres
     and fractions of litres, the actual alcoholic strength
     (percentage by volume) at the temperature of 20°C;
   - for mineral oils:     indicate the number of litres or,
     where appropriate, the net weight in kilograms and the
     temperature expressed in degrees centigrade;
   - for manufactured tobacco,
     . for cigars, cigarillos and cigarettes, the number of
       items ;
     . for smoking tobacco, chewing tobacco and snuff, the
       net weight in kilograms.
h) CN code
   Show the   code  from   the  Combined Nomenclature  for the
   goods.
i) Value
   Show the value of the goods subject to excise.
 ---pagebreak---                                - 39 -
           FICHE D'IMPACT SUR LES PME ET L'EMPLOI
La  présente   proposition    de   directive   visant   au   régime
général ainsi qu'à la détention et à la circulation des
produits soumis à -accises est nécessaire dans le cadre de
l'abolition   des   frontières     fiscales   et   s'intègre   dans
l'ensemble des mesures prises pour l'achèvement du marché
intérieur.
I.   Obligations        administratives          découlant       de
      l'application   de   la    présente   directive    pour   les
      entrepises:
      - le    document    administratif       ou     le   document
        commercial remplacent les documents existants qui
        sont établis pour l'essentiel par les opérateurs.
II.   Quels sont les avantages pour les entreprises?
      - néant.
III. Y-a-t-il des inconvénients pour         les entreprises en
      termes de coûts supplémentaires?
      - l'application      de       la     présente      directive
        n'entraînera aucun coût supplémentaire           pour les
        entreprises.
IV.   Effets sur l'emploi:
      - néant.
V.    Les partenaires sociaux n'ont pas été consultés.
VI.   Une- approche alternative moins contraignante n'est
      pas envisageable dans le cadre de l'abolition des
      frontières fiscales.
 ---pagebreak---                       FICHE FINANCIERE
L'application de la présente proposition de directive n'aura
pas d'incidence financière sur les ressources propres de la
Communauté.
 ---pagebreak---  ---pagebreak---  ---pagebreak---                                                                                ISSN 0254-1475
                                                                COM(90) 431 final
                                                      DOCUMENTS
EN                                                                                         09
                                  Catalogue number : CB-CO-90~560-EN-C
                                                               ISBN 92-77-65601-8
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