Brussels, 04/06/2008 (Agence Europe) -On Tuesday 3 June, the European Finance Ministers took note of a report by the Slovenian Presidency on the state of progress with work on the revision of the general regime of products subject to excise duty: alcohol and alcoholic drinks, tobacco products and mineral oils (see EUROPE 9603).
The proposed directive, which modifies directive 92/12/EEC, brings in a legal framework for the creation, in April 2009, of an electronic system for the circulation and control of the products in question (EMCS). According to the Slovenian Presidency, "many Member States are concerned that they will not be ready to start operations of the EMCS system by April 2009". They quote either legal or technical reasons to explain delays in their preparations. Germany is believed to be in this situation.
Under the legislative proposal, taxation will remain payable in the Member State in which products subject to excise duty are consumed, unless these products are destined for private consumption, in which case the tax will be payable in the Member State of acquisition. This provision aims to integrate into Community law case law of the European Court of Justice which states that only products acquired and transported in person will be exonerated from excise duty in the Member State of importation (case C-5/05) (see EUROPE 9315). The Slovenian Presidency acknowledges that the opinions of the national delegations differ on taxation applicable to products subject to excise duty sold in a Member State and transferred to another country of the EU. This subject is "highly controversial", confirms an expert close to the dossier, who questions whether it should be kept in the same text as the proposals on the EMCS, given that April 2009 is so close at hand? (M.B.)