Brussels, 05/10/2009 (Agence Europe) - The European Commission has decided to close an investigation into Uruguay's taxation regime on spirits, following the removal of unfair barriers to the sale of European spirits in the country. The investigation had been opened under the EU Trade Barriers Regulation (TBR) following a complaint by the Scotch Whisky Association in September 2004 against Uruguay's taxation system for imported spirits. Instead of using the actual transaction value of the spirits at the point of first sale as the taxable base, the spirits were divided into groups ("categorias") on a price-per-litre basis. They were then assigned a price (determined by the Uruguayan authorities) upon which the excise tax was levied, putting the EU products in the highest-priced category. In the new legislation, the tax is determined by adding a fixed value to a tax on value of the product, which means that there is a single tax rate and the discrimination is removed. Aside from the issue of taxation, other barriers included (1) lack of transparency and predictability of Uruguayan excise taxes in general, (2) exclusion of whiskies matured for three or more years from the lowest category of taxation (per EC Regulation as of July 2000 all EU whiskies must be matured for at least three years, while all whiskies produced in Uruguay are aged less than three years), (3) a requirement to affix tax stamps on imported whiskies, and (4) a requirement to pre-pay excise taxes at the time of customs clearance. All of these barriers have been addressed. In a press release, EU Trade Commissioner Catherine Ashton said: "The focus of EU trade policy is to create real benefit for businesses, workers and consumers. I am delighted that we have solved this issue without having to resort to WTO litigation." The Commission explains that 'the volume and value of exports of Scotch whisky to Uruguay have increased by more than 30% since the entry into force of the revised legislation.' (E.H. trans fl)