Brussels, 12/10/2007 (Agence Europe) - The European Parliament considers it is necessary to strengthen measures to combat fraud and cigarette smuggling and expresses concern about the delays incurred by member states when it comes to setting up the New Computerised Transit System (NCTS). The own-initiative report by Bart Staes (Greens/EFA, Belgium) on this dossier was adopted on Thursday 11 October by the European Parliament meeting in Brussels.
The EP has mixed feelings about the agreement concluded in 2004 between the EU and Philip Morris, under which the American cigarette manufacturer undertook to pay €1.25 billion to the European Community over a 12-year period to combat fraud and the illicit cigarette trade. It regrets that, to date, no other cigarette manufacturer has sealed similar agreements. The Commission is invited to continue talks with the main market stakeholders in order to conclude agreements whereby the Philip Morris agreement, “except the main payment”, is the minimal standard. In this context, the Parliament supports the recent Commission requests inviting Japan Tobacco and Reynolds American to conclude similar agreements, in exchange for ending EU legal proceedings against them.
The EP invites the United Kingdom, the only member state not to have signed the agreement with Philip Morris, to do so. MEPs say they are “very disappointed” about the way the Commission handled the distribution of the payments from the Philip Morris agreement among the 10 member states and the Community, whereby the Community received only 9.7% thereof and the rest went un-earmarked straight to the ministers of finance of the member states. The EP considers this distribution goes “against the spirit and intention of the agreement” which was negotiated to contribute to fighting fraud.
According to MEPs, the Philip Morris agreement should serve as an example for agreements with companies producing and dealing with other high-risk products such as alcohol, textiles, mineral oil products, etc. They take the view that this kind of agreement could also be concluded with raw tobacco producers and traders, especially as regards tracing and tracking.
When it comes to the system of Community transit, the Parliament regrets the delays incurred in setting up the NCTS. Although the latter has been operational in all member states since January 2006, the Court of Auditors' inquiry revealed deficiencies in almost all eleven member states visited. Also, the Parliament expresses concern about the serious deficiencies in application of the new transit rules by member states, especially when it is a matter of verification of simplified procedures, research procedures and recovery procedures. MEPs therefore consider it is necessary to explore new ways to achieve better coordination in the fight against tax fraud at EU level.
In 2006, 60% of smuggled goods seized by European customs authorities were cigarettes, amounting to 150 million packets. Such trafficking represents tax receipt losses of €460 million for the EU. (lc)