CELEX: 51973PC0384
Language: en
Date: 1973-03-12
Title: AMENDMETS TO THE LAST RECITAL AND TO ARTICLES 1, 2 AND 4 OP THE PROPOSAL FOR A THIRD COUNCIL DIRECTIVE ON THE HARMONIZATION OF PROVISIONS LAID DOWN BY LAW, REGULATION OR ADMINISTRATIVE ACTION RELATING TO THE TURNOVER TAXES AND EXCISE DUTIES LEVIED ON TRAVEL, AND THE INSERTION THEREIN OP AN ARTICLE 4A AND AN ARTICLE 4B (submitted by the Commission to the Council pursuant to the second paragraph of Article 149 of the EEC Treaty)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 384
Vol. 1973/0059
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION              OP    THE    EUROPEAN           COMMUNITIES
                                                  COM(73)384 final
                                                  Brussels . 12 March 1973
              AMENDMETS TO THE LAST RECITAL AND TO ARTICLES 1 , 2 AND
              4 OP THE PROPOSAL FOR A THIRD COUNCIL DIRECTIVE ON THE
              HARMONIZATION OP PROVISIONS LAID DOWN BY LAW, REGULATION
              OR ADMINISTRATIVE ACTION RELATING TO THE TURNOVER TAXES
              AND EXCISE DUTIES LEVIED ON TRAVEL, AND THE INSERTION
              THEREIN OP AN ARTICLE 4A AND AN ARTICLE 4B
              ( submitted by the Commission to the Council pursuant to
              the second paragraph of Article 149 of the EEC Treaty)
 COM(73 ) 384 final
 ---pagebreak---                                                                   XV/ 1 70/73-E
                      Explanatory memorandum
On 22 September 1972., the Commission forwarded to the Council a proposal for
                           (1 )
a third Council directive v ' on the harmonization of the provisions laid
down "by law, regulation or administrative action relating to the turnover
taxes and excise duties levied on travel .
The European Parliament and the    Economic and Social Committee, on
19 January 1973 and 30 November 1972 respectively, delivered favourable
opinions on this proposal , but recommended that a transitional period be
provided for to enable the proposed arrangements to be introduced by
stages , so as to take account of certain interests involved .
Anxious to avoid difficulties , the Commission has followed these suggestions
and proposes that a new Article 7h "be inserted in the text of the first
Directive on tax exemptions for travellers (No 69/169/EEC of 28 May 1 9^9 )*
This Article would provide for the progressive reduction of tax–free sales
of products subject to quantitative limits , such as tobacco, alcohol and
perfumes and, as regards other products , for a progressive increase in the
value per item above which tax–free sales in acco^rdance with the procedure
applicable to retail trade would be authorized .   The transitional measures
would cease to apply on 1 January 1976 .
This method has the advantage of preserving intact the legal principle
underlying Article 6(1 ), which seeks to prevent the sale free of tax or
duty of products eligible for importation tax or duty-free .   In order to
reduce controls to a minimum, which is one of the aims of the Directives on
tax exemptions for travellers , the Commission considers it most desirable
that they be carried out not on travellers but at sales points . It is the
Commission's aim that travellers making a journey by air or sea within the
Community should not be required, because during the transitional period
                                                                   • • •/ • • •
^OJNoC 113, 28 October 1972.
 ---pagebreak---                                                                             XV/ 170/7 3-E
                                   - 2 -
they still have the opportunity of buying goods free of tax or duty, to furnish
proof as provided in Articles 1 and 2 that all the goods they are carrying are
of Community origin .     If this were - the case , persons travelling for example
"between the United Kingdom or Ireland and the Continent would not feel that
they were travelling within the Community .        Similarly , the Commission is opposed
to any system of reduced allowances for air or sea travellers who still have
the opportunity of acquiring goods free of tax or duty since this would amount
in practice to instituting two separate systems of allowances within the
Community , one for journeys "by rail or road and the other for journeys "by air
or ship .
Moreover, the fact that tax-free sales to persons travelling within the
Community are to be reduced "by stages will give traders time to make the
necessary change-over in their trading arrangements .         This will "be all the
easier "by reason of the fact that tax–free sales to persons travelling to
third countries will probably continue to increase over the coming years .
Finally , to take account of certain comments of a technical nature and of
certain wishes that have been expressed , the Commission is proposing a
series of minor amendments to its original proposal .
The main purpose of these amendments is to define more closely the arrange–
                      • *
ments for proving the Community origin of goods in the case of transit
through a third country and in other similar cases , and to apply the system
of allowances applicable to travellers arriving from third countries to
persons travelling from any part of the territory of a Member State where
turnover tax and/or excise duty do not apply to another part where such tax
or duty is generally in force .
 ---pagebreak---                                                                   XV/1 70/73-E
     Amendments to the last recital and to Articles 1 , 2 and 4 of the
      proposal for a third Council Directive on the harmonization of
      provisions laid down "by law, regulation or administrative action
      relating to the turnover taxes and excise duties levied on
      travel , and the insertion therein of an Artiole 4a and an
                                 Article 4b
                                   Item 1
The last recital of the Directive cited in the heading sould he amended to
                                                         Λ
read as follows :
"Whereas the conditions for the application of the rules as to exemptions
in respect of goods in travellers * personal luggage where travel "between
Member States includes transit through a third country, or where travel
is from any part of the territory of a Member State in which turnover taxes
and/or excise duties are not applicable- should "be defined more clearly".
                                 Item 2
Articles 1 , 2 and 4 of the Directive cited in the heading should he
amended as follows :
                               Article 1
Article 2 of the Council Directive of 28 May 19^9 is amended as follows :
( a) The following is substituted for paragraph 1 of the said Article :
      "1 , Exemption from turnover tax and excise duty on imports shall
      apply, as regards travel between Member States, to goods fulfilling
      the conditions laid down in Articles 9 and 10 of the Treaty,
      acquired subject to the taxation arrangements obtaining generally
     on the domestio market of one of the Member States, not benefiting
     from any refund of turnover taxes and/or excise duties and carried
     in travellers * personal luggage, provided such imports have no
     commercial character and the total value of the goods concerned
     does not exceed 125 units of account per person".
 ---pagebreak---                                  - 2 -                                  XV/l 70/ 73–E
(b ) the following paragraph is added :
     "4 .   Where the travel referred to in paragraph 1 involves :
     – transit through the territory of a third country ( the overflying
          of a territory without landing not constituting transit within
          the meaning of this Directive ), or
                   OA
     – a joumey^board a sear-going vessel , or a hovercraft, not solely
          providing a direct service between two or more ports in different
          Member States ,
     the traveller must furnish proof that the goods carried in his luggage
     were acquired subject to the taxation arrangements obtaining generally
     on the domestic market of one of the Member States and do not benefit
     from any refund of turnover taxes and/or excise duties .      Otherwise the
     provisions of Article 1 shall apply .
     However, the total value of the goods exempted (a£5y not exceed the amounts
     specified in paragraphs 1 and 2 .
     Proof may be furnished by means of any document giving the name and
     address of the vendor , the nature of the goods ,       quantities purchased,
     the price and the date of the sale ."
                                Article 2
Article 4 of the Council Directive of 2o May 1969 is amended as follows :
( a) the following subparagraph is added at the end of paragraph 1 :
     "However, the allowances listed in column II shall be granted only if
     the goods fulfil the conditions laid down in Articles 9 and 10 of the
     Treaty, were acquired subject to the taxation arrangements obtaining
     generally on the domestic market of one of the Member States and do
     not benefit from any refund of turnover taxes and/or excise duties ."
(b ) the following paragraph is added :
            Where the travel referred to in Article 2(l ) includes :
     – transit through the territory of a third country ( the overflying of
          a territory  without landing not constituting transit within the
          meaning of this Directive ), or
     –    a journey on board a sear-going vessel , or a hovercraft , not solely
          providing a direct service between two or more ports in different
          Member States ,
 ---pagebreak---                                   - 3 -
                                                                          XV/ 170/ 73-E
        the traveller must furnish proof that the goods carried in his luggage
       were acquired subject to the taxation arrangements obtaining generally
        on the domestic market of one of the Member States and do not benefit
       from any refund of tunfyojer taxes and/or excise duties. Otherwise,
        column I of paragraph 1 shall apply.
       However, the total quantities of goods exempted may not exceed the
       quantities laid down in 'column II of paragraph 1 .
*•     Proof may be furnished by means of any document giving the name and
       address of the vendor, the nature of the goods , the quantities pur­
       chased, the price and the date of the sale ."
                                 Article 4
  Article 6 of the Council Directive of 28 May 1969 i® amended as follows :
   (a) the following is substituted for paragraph 1 :
       "1 .  In order to prevent goods escaping taxation when     supplied to
             travellers entitled to the benefit of the exemption on importar-
             tion provided for in this Directive, Member States may make
             only such arrangements for the non–imposition or remission of
             taxes or duties in respect of international travel as are
             provided for below."
  (b ) the following is substituted for paragraph 2 :
       "2 .  Without prejudice to the arrangements provided for in paragraphs 6
                                                             ©A-J
             to 9, Member States may, as regards sales by mnarn. of retail trade,
             authorize, subject as provided in paragraphs 3 , 4 and 5, the
             remission of turnover tax on goods carried in the personal luggage
             of travellers leaving a Member State .  No remission may be granted
             in respect of excise duty ."
  ( o) the following paragraphs are added :
       "6 . As regards sales made at airport shops under customs control,
             Member States may, subject where desired to exclusion of their
             own residents , authorize the supply of goods subject to remission
             of or not having borne turnover tax and/or excise duty to
             travellers leaving the country and :
 ---pagebreak---                                                                   xv/ 170/73 -2
  ( a) in possession of a valid air ticket specifying as immediate or
       final destination an airport situated in a third country .
       Member States may lay down their own limits and conditions of
       application in respect of such remission or non–imposition of
       tax or duty ;
 (b )  in possession of a valid air ticket specifying as immediate
       destination an airnort situated in another Member State , always
       provided that the value per item , net of tax, exceeds that
       specified in Article 2(l ), and subject to the provisions relating
       to the proof of importation into a Member State laid dovm in
       paragraph 4(b ).  Member States may set a higher value . No sale
       free of excise duty shall be made to any person to whom this
       subparagraph applie^f.S
As regards aircraft on direct flights between airports situated in different
 Member States , Member States may authorize the sale or distribution during
 such flights , by way of in–flight catering and for immediate consumption
 on board r of goods subject to remission of or not having borne turnover
 tax and/or excise duty .
                                  £
 "In–flight catering" means the J^ood, beverages and tobacco served ,
 whether with or without payment , to the passengers and crew .   Sales to
 passengers free of tax and/or excise duty may per person not exceed 50 S
 of tobacco and one 0.30 litre bottle of an alcoholic beverage .
 As regards aircraft on international flights other than those to which
 the first subparagraph applies , Member States may lay down their own
 limits and conditions of application in respect of the remission or
 non–imposition of turnover tax and/or excise duty for goods intended
 for sale or consumption on board during such flights .
 As regards sear-going vessels or hovercraft solely providing direct
 services between two or more ports situated in different Member States
 or in the same Member State , Member States shall take the necessary
 steps to prohibit the loading of goods sibject to remission of or not
 ---pagebreak---                                     - 5 -                              XV/ 170/73-E
    having "borne turnover "tax and/or excise duty and intended for Bale or consump­
    tion on board .
    However , Member States may authorize the loading], in such quantities as are
    considered necessary for the round trip , of food , "beverages and tobacco subject
    to remission of or not having borne turnover tax and/or excise duty intended
    for immediate consumption on board by the passengers and crew . Such authoriza­
    tion shall be subject to the condition that no such goods be supplied to
    passengers or crew in quantities exceeding those necessary for individual con­
    sumption on the spot , and to a limit per person of 50 8 of tobacco and one
    0.30 litre bottle of an alcoholio beverage .
    As regards goods supplied to sea»-going vessels , or hovercraft , on routes other
    than those to which the first subparagraph applie^, Member States may lay down
    their own limits and conditions of application in respect of the non–imposition
    or remission of turnover tax and/or excise duty^ on goods intended for sale or
    consumption on board .
9 . As regards private yachts and pleasure boats of whatever tonnage or flag, which
    do not carry paying passengers and do not engage in any commercial or industrial
    activity or in fishing, Member States shall be responsible for taxing, in accor­
    dance with the provisions in force generally on the domestic market , all goods
    intended for consumption on board such vessels , inoluding the fuels , lubricating
    oils , spare parts and normal equipment required for their operation .
    As regards private aircraft , in whatever country registered, which do not
    carry paying passengers and do not engage in any industrial , commercial or
    agricultural activity, Member States shall be responsible for taxing, in accor­
    dance with the provisions in force generally on the domestic market , all goods
    intended for consumption on board such aircraft^ including the fuels, lubricating
    oils , spare parts and normal equipment required for their operation .
    Member States may provide that the measures laid down in subparagraphs 1 and 2
    hereof shall not apply to any private yachts , pleasure boats or aircraft
    travelling to any third country or to naval vessels or to vessels providing a
 ---pagebreak---                                  - 6 -                            XV/ 1 70/73 -E
publio service other than the transport of paying passengers , such as
oceanographio vessels , lightships , eto *..
                                 Item 3
The following Artiole 4a should, "be added to the Direotive cited in the heading :
                               Article 4a
The following Article is inserted after Artiole 6 of the Counoil Directive of
28 May 1969 :
      " Artiole oa
     For the purposes of this Direotive , any part of the territory of a Member
     State where turnover taxes and/or exoise duties do not apply shall "be
     treated as a third country ."
                                 Item 4
The following Article 4b should "be added to the Direotive cited in the heading:
                               Article 4b
The following Article is inserted after Artiole 7a of the Council Directive of
28 May 1969 :
     "Artiole 7b
     1.   I$y way of exception to paragraphs 6 to 8 of Article 6, Member States may :
           ( a) until 1 January 1975 as regards
           - - – the goods listed in Artiole 4(l )» and in respect of the quantities
                  set in column I thereof ;
                – other goods , in respect of items whose individual value exceeds
                  25 units of aooount ;
                      1
           (b ) until M January 1976 as regards
                – the goods listed in Article 4(l )» and in respeot of quantities
                  equal to half those set out in column I thereof ;
                – other goods , in respect of items whose individual value exceeds
                  75 units of account ;
authorize sales of goods not having borne or subjeot to remission of turnover
tax and/or excise duty to persons aged fifteen or over covered by Artiole 6(6 ) (b ),
or travelling on board any means of transport to which the first subparagraph of
Artiole 6(7 ) or of Artiole 6(8 ) applies .
 ---pagebreak---                               - 7 -                            XV/ 1 70/ 73–E
The requirement laid down in Article 2(l ) and 4(1 ), last subparagraph,
that goods shall have "been acquired subjeot to the taxation arrange­
ments obtaining generally on the domestic market conoerned shall not
apply as regards import allowances on goods to which the foregoing
transitional measures apply.
Member States shall take the necessary measures to eliminate,
by 31 Deoember 1975 at the latest , any inconsistencies between
agreements concluded with third countries and the provisions
of this Directive .