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Image header Agence Europe
Europe Daily Bulletin No. 8009
Contents Publication in full By article 10 / 34
GENERAL NEWS / (eu) eu/tobacco

Despite rejection of its complaint by US tribunal, Commission remains determined to fight cigarette smuggling

Brussels, 18/07/2001 (Agence Europe) - The European Commission remains steadfast in its determination to fight cigarette smuggling, Commissioner Michaele Schreyer told the press. She was commenting on the decision by an American tribunal that had just ruled inadmissible the complaint filed by the European Community against the Philip Morris and RJ Reynolds companies because of the income lost by the Community budget due to cigarette smuggling. The approach initiated by the European Commission had received the support of ten Member States.

During her press conference, Ms Schreyer stressed that the decision of inadmissibility taken by Judge Nicholas Garaufis contained positive points. She mainly stressed the recognition by the legal personality of the Eurepean Community and its right to initiate proceedings in US courts. She explained that the judge nonetheless used the argument of the Community's own resources to challenge the admissibility of the complaint, saying that the Community does not have any direct interest in acting in so far as, even if VAT receipts and customs duties are in principle sources of Community budget financing, the latter is automatically balanced by contributions made by Member States. The judge deduces that the loss in receipts are suffered by Member States that would have a direct interest in taking action. Recalling that there are several means of appeal, Ms Schreyer said that it is now necessary to analyse these different possibilities with the Member States in order to pursue the fight against fraud. There is very little time, however, as the US jurisdictions only grant ten days to complainants to resume the procedure.

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