Proposal for a Council Directive amending Directive 92/83/EEC on the harmonization of the structures of excise duties on alcohol and alcoholic beverages Political agreement - Hoofdinhoud

Council of the European Union Brussels, 31 October 2019 (OR. en)

13518/19 Interinstitutional File:

2018/0173(CNS) i

FISC 411 ECOFIN 941

NOTE

From: Presidency

To: Council

No. prev. doc.: 13372/19 FISC 404 ECOFIN 928

Subject: Proposal for a Council Directive amending Directive 92/83/EEC i on the harmonization of the structures of excise duties on alcohol and alcoholic beverages

‒ Political agreement

• I. 

  INTRODUCTION

• 1. 

  In response to Council Conclusions of 6 December 2016, 1 on 25 May 2018 the Commission submitted a proposal for a Council Directive amending Directive 92/83/EEC i on the

harmonization of the structures of excise duties on alcohol and alcoholic beverages 2 .

• 2. 

  The objective of the proposal is to update the rules governing excise duty on alcohol within the EU, pave the way for a better business environment and reduce costs for small alcoholproducing businesses. More particularly, this legislative proposal aims at:

  • i) 

    putting in place a uniform certification system in the EU for confirming the status of independent small producers throughout the Union, recognisable in all EU countries;

1 doc. 15009/16 FISC 212 ECOFIN 1134.

2 doc. 9570/18 + ADD1, ADD2.

• ii) 

  extending the special regime of small producers to cider producers across the EU in order to have access to the reduced rates as currently afforded to small beer and ethyl alcohol producers;

• iii) 

  clarifying the conditions for application of the exemption for denatured alcohol in the EU;

• iv) 

  increasing the threshold for lower strength beer that can benefit from reduced rates from 2.8% volume to 3.5% volume, to provide an incentive for brewers to be innovative and create new products. This should encourage consumers to choose low-strength alcoholic drinks over standard ones, reducing alcohol intake.

• 3. 

  The opinion of the European Economic and Social Committee was issued on 17 October

  2018 3 . The European Parliament delivered its opinion on the Commission proposal on 24 October 2018. 4

II. STATE OF PLAY

• 4. 

  The discussions on this legislative proposal continued during Bulgarian, Austrian and

  Romanian Presidency terms. In the course of negotiations, it was noted that a variety of considerations, such as health issues and efficient collection of excise duties should be taken into account, in order to reach a compromise that could be acceptable to all delegations.

• 5. 

  At the ECOFIN meeting of 17 May 2019 further progress has been made, however, no agreement on a compromise text could be reached 5 as the concerns of some delegations related to draft Art. 22(8) of Directive 92/83/EEC i could not be resolved.

3 OJ C 62, 15.2.2019, p. 108.

4 T8-0415/2018 .

5 doc. 9347/19 FISC 267 ECOFIN 493 + ADD1.

• 6. 

  At the meeting of the High Level Working Party on Taxation (HLWP) of 28 October 2019 and at the meeting of the Committee of Permanent Representatives of 30 October 2019, some delegations maintained their reserves on draft Art. 22(8). As a result, this key issue still

  remains to be resolved, as set out in Part III of this note.

• 7. 

  Nevertheless all delegations could support that the starting date of application of the draft

  Amending Directive is set at 1 January 2022 (deadline to transpose this Directive into national law would consequently be 31 December 2021), as reflected in the Presidency compromise text.

III. KEY ISSUE

Exemption from excise duty or reduced rates for small home distilleries (draft Art. 22(8)

of Directive 92/83/EEC i)

• 8. 

  During negotiations on this dossier a number of Member States requested that Directive

  92/83/EEC foresees the possibility (option) for Member States to exempt from or apply reduced rates of excise duties to ethyl alcohol distilled by private individuals, from fruit, for their households, and for their private use, as set out in draft Article 22(8).

• 9. 

  While all delegations now agree that, in the spirit of compromise, the wording of Article 22(8) is generally not questioned and may remain as part of the text, there is yet an agreement to be reached on two aspects thereof:

  • - 

    the exact volume (quantitative limit) of home-distilled fruit spirits which would be subject to exemption and/or reduced rate;

  • - 

    whether such beverages can be fully exempt from excise duties and whether homedistillation should be permissible as such.

• 10. 

  At the meeting of the Committee of Permanent Representatives (Part 2) on 30 October 2019 the text of Article 22(8) was largely acceptable to all but three delegations:

  • a) 

    one delegation maintained its views that the limit of 50 litres, which is proposed in the Presidency compromise text, is too low, and requested that this limit is set at 100 litres;

  • b) 

    two other delegations indicated that they could not accept Article 22(8) if it contains a possibility to apply to such home-distilled beverages a full exemption from excise duties or reduced rates lower than 50% of the standard rate applicable to similar beverages.

    One of these two delegations was also not in a position to accept the possibility that such distillation could take place at home.

IV. WAY FORWARD

• 11. 

  Against this background, the Presidency hopes that the compromise text set out in the Annex I to this note could serve as a basis for further discussions on this dossier, and the remaining

  issues with regard to Article 22(8) could be resolved by the Council, in the spirit of compromise.

• 12. 

  The Presidency is also of the view that the draft Commission statement set out in Annex II, which the Commission was ready to make at the ECOFIN meeting of 17 May 2019, should remain part of the overall compromise.

• 13. 

  The Council is therefore invited to:

  • - 

    resolve the key issue set out in Part III of this note;

  • - 

    reach a political agreement on the draft Directive, on the basis of the Presidency compromise text set out in the Annex to this note, with a view to adopting the Directive, subject to legal-linguistic revision.

ANNEX I

DRAFT

COUNCIL DIRECTIVE

amending Directive 92/83/EEC i on the harmonization of the structures of excise duties on alcohol

and alcoholic beverages

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 113 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Parliament 6 ,

Having regard to the opinion of the European Economic and Social Committee 7 ,

Acting in accordance with a special legislative procedure,

6 OJ C , , p. .

7 OJ C , , p. .

Whereas:

• (1) 

  Some provisions of Council Directive 92/83/EEC i 8 are outdated and unclear and result in unnecessarily burdensome administrative procedures for both tax administrations and

  economic operators. The costs for economic operators of complying with those procedures have the effect of restricting the participation of small and medium-sized enterprises in trade in alcohol and alcoholic beverages in the internal market. Furthermore references to Directives and Regulations no longer in force need to be updated.

• (2) 

  In order to ensure the uniform application of the conditions for fixing excise duty on beer, it is necessary to lay down conditions for the measurement of degrees Plato. More particularly, as regards the measurement of degrees Plato for sweetened or flavoured beer, it is important to specify that ingredients of the beer that have been added after fermentation are also to be taken into account for the purpose of measuring the degree Plato. In view of practical

  difficulties linked to the identification and measurement of the dry extract of the original wort of the finished product, such specification is necessary and justified by the need to provide a harmonised approach that would ensure correct and straightforward application of these rules by taxable persons concerned and by the tax administrations as well as effectiveness of fiscal supervision against risks of tax evasion, avoidance or abuse.

(2a) In order to ensure a smooth transition to the harmonised methodology for measuring the degree Plato in beer, it is appropriate to allow that Member States which, as of [OJ: please insert the date of adoption of this Directive], do not take ingredients of the beer that have been added after fermentation into account for the purposes of measuring the degree Plato continue to use the currently applied methodology for a transitional period of time.

8 Council Directive 92/83/EEC i of 19 October 1992 on the harmonization of the structures of excise duties on alcohol and alcoholic beverages (OJ L 316, 31.10.1992, p. 21).

• (3) 

  The alcoholic strength of beer to which reduced rates for low strength beer may be applied is in general too low to provide any tangible incentive for brewers to be innovative and create

  new low strength products. In order to encourage the development of low strength beer, the threshold for low strength alcohol rates should be increased.

• (4) 

  [deleted]

• (5) 

  Member States may apply reduced rates to beer and ethyl alcohol produced in small volumes by independent small producers. In order to avoid other alcoholic beverages being treated differently from beer and ethyl alcohol, Member States should also have the power to apply reduced rates to other alcoholic beverages produced in small volumes by independent small producers. Member States should be able to limit the application of reduced rates to intermediate products and other fermented beverages, taking into account various criteria, such as the alcoholic strength of the finished product or the quantity and type of raw materials used to produce it.

• (6) 

  In order to facilitate the recognition of their status as independent small producers in all

  Member States, for the purposes of the application of the reduced excise duty rates, implementing powers should be conferred on the Commission in respect of laying down a form for a uniform certificate confirming the annual output of the independent small producer and its compliance with the criteria laid down in Directive 92/83/EEC i. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 i of the European Parliament and of the Council 9 . Although certification of independent small producers by the Member State, in which the independent small producer is established, is desirable, it is appropriate to reduce the administrative burden by permitting selfcertification by the independent small producer. The Member State, in which the independent small producer is established, should be required to lay down conditions to ensure the correct and straightforward application of this provision and to prevent any evasion, avoidance or abuse. Member States should grant the reduced excise duty rates on the basis of the certificate issued by the other Member States, except under duly justified circumstances, for example risk of tax fraud or abuse. Member States that apply higher thresholds for small producers should have to apply the same thresholds for producers from other Member States.

9 Regulation (EU) No 182/2011 i of the European Parliament and of the Council of 16

February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

(6b) In view of the specific situation of the wine sector in the Republic of Malta, Malta should be allowed to apply a higher threshold in connection with the reduced rates mechanism provided for in the Directive to independent small producers of wine.

• (7) 

  Member States should be authorised to apply a reduced rate to ethyl alcohol produced in fruit (apples, pears, grape marc, berries, etc.) growers´ distilleries.

• (8) 

  In the case of beer, wine and other fermented beverages the Directive permits Member

  States to exempt from duty home-made products which are not produced for commercial purposes, however the Directive does not allow such an optional exemption for ethyl alcohol produced from fruit (apples, pears, grape marc, berries, etc.) for private consumption. As several Member States have a tradition of such home-made products it is appropriate to permit Member States to apply reduced rates or exemptions for ethyl alcohol products of a regional and traditional nature, which are not produced for commercial purposes. Member States may, under a number of conditions, exempt from duty or apply reduced rates of excise duty to home-made ethyl alcohol produced from home-grown fruits (apples, pears, grape marc, berries, etc.) of the household of the producer. Member States applying such reduced rates or exemptions should be obliged to take the necessary measures to prevent any evasion, avoidance or abuse. These Member States should have adequate requirements and procedures in place to ensure the control of production and consumption and prevention of cross-border effect.

(8a) It is appropriate to update the references to the codes of the Combined Nomenclature used to describe alcohol products.

(8b) Member States should be permitted, under a number of conditions, to exempt from harmonised excise duty the products covered by this Directive, when such products are used in the manufacture of food supplements.

(8c) It is appropriate to update the provisions of Directive 92/83/EEC i as regards applying reduced rate to certain products that are distilled in Hellenic Republic in traditional

discontinuous copper stills and in simple traditional distilling devices.

• (9) 

  In order to reduce the compliance burden for economic operators and to increase legal certainty, the conditions for applying the exemptions for any type of denatured alcohol should be revised.

• (10) 

  In order to ensure the uniform application of the exemption for completely denatured alcohol, it is necessary to further clarify the conditions for the mutual recognition of completely denatured alcohol. Member States should exempt from excise duty completely denatured alcohol, which was completely denatured in another Member State, in accordance with the method authorised by that other Member State. In order to increase the legal certainty it is also necessary to clarify the procedures for the notification of changes to the requirements for the complete denaturing of alcohol.

• (11) 

  In order to lay down the procedures for the assessment of Member States' requirements for the complete denaturation of alcohol, implementing powers should be conferred on the

  Commission in respect of accepting or rejecting the requirements for the complete denaturation of alcohol notified by Member States. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 i.

• (12) 

  In order to ensure the uniform application of the exemption for partially denatured alcohol, it is necessary to clarify the conditions for the mutual recognition of partially denatured

  alcohol and to lay down that maintenance and cleaning of the manufacturing equipment is part of the manufacturing process and that the partially denatured alcohol used for the respective manufacturing process is therefore covered by the exemption. In order to reduce the fraudulent use of that exemption, it is necessary to lay down further conditions for its application.

• (13) 

  The exemptions for the United Kingdom laid down in respect of two specific alcoholic beverages reflected exemptions provided for in the national legislation of the United

  Kingdom. As those exemptions from the harmonised excise duty were repealed in the United Kingdom's national legislation, they are no longer relevant and should be abolished at Union level.

• (14) 

  Since the objectives of this Directive, namely to reduce the compliance burden of economic operators and administrative burden for tax administrations, cannot be sufficiently achieved by the Member States but can rather, by reason of the effects of the action, be better

  achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives.

• (15) 

  Directive 92/83/EEC i should therefore be amended accordingly,

HAS ADOPTED THIS DIRECTIVE:

Article 1

Directive 92/83/EEC i is amended as follows:

• (1) 

  in Article 3(1), the following subparagraphs are added:

  "All the ingredients of the beer, including those added after the completion of fermentation shall be taken into account for the purposes of measuring the degree Plato.

  By way of derogation from the second subparagraph, Member States that, as of [OJ: please

  insert the date of adoption of this Directive], do not take ingredients of the beer that have

  been added after fermentation into account for the purposes of measuring the degree Plato,

  may continue to do so until 31 December 2030.”

• (3) 

  in Article 5, the text "2,8 %" is replaced by the text"3,5 %";

(3a) in Article 8 paragraph 2 the text “2204 21 10” is replaced by the text “2204 21 06, 2204 21 07, 2204 21 08, 2204 21 09”.

(3b) the following Article is inserted:

"Article 9a

“(1) Member States may apply reduced rates of duty to wine produced by independent small wine producers within the following limits:

• - 

  The reduced rates shall not be applied to undertakings producing on average more than 1000 hl or, in the case of the Republic of Malta, on average more than 20000 hl of wine per year,

• - 

  The reduced rates shall not be set more than 50 % below the standard national rate of excise duty.

• (2) 

  For the purposes of the reduced rates the term 'independent small wine producers’ shall mean a wine producer which is legally and economically independent of any other wine producer, which uses premises situated physically apart from those of any other wine producer and does not operate under licence. However, where two or more small wine producers

  cooperate, and their combined annual production does not exceed 1000 hl or 20 000 hl, as appropriate, those wine producers may be treated as a single independent small wine producer.

• (3) 

  Member States shall ensure that any reduced rates it may introduce apply equally to wine delivered into its territory from independent small wine producers situated in other Member States. In particular it shall ensure that no individual delivery from

  another Member States ever bears more duty than its exact national equivalent.

(3c) in Article 12 paragraph 2 the text “2204 21 10” is replaced by the text “2204 21 06, 2204 21 07, 2204 21 08, 2204 21 09” and the text “2206 00 91” ist replaced by the text “2206 00 31 and 2206 00 39”.

• (4) 

  in Article 13(2) the words "Except as provided in paragraph 3" are replaced by the words

  "Except as provided for in paragraph 3 and Article 13a";

• (5) 

  the following Article is inserted:

"Article 13a

• 1. 

  Member States may apply reduced rates of duty, which may be differentiated in accordance with the annual production of the producers concerned, to other fermented beverages made by independent small producers within the following limits:

  • - 

    the reduced rates shall not be applied to undertakings producing more than a total of 15 000 hl of these beverages per year,

  • - 

    the reduced rates shall not be set more than 50 % below the standard national rate of excise duty for other fermented beverages.

• 2. 

  For the purposes of this Article, the other fermented beverages must be obtained from the fermentation of fruits, berries, vegetables, a solution of honey in water or from the fermentation of the fresh juice or concentrated juice obtained from the above. Member States shall not permit the addition of any other alcohol or alcoholic beverage. For the purposes of this Article, the addition of alcohol used to dilute or dissolve flavourings in the dose strictly necessary to the extent that the alcoholic strength does not increase by more than 1.2 % vol. shall not be considered as addition of alcohol for the purpose of production of other fermented beverages. The addition of these flavourings shall not significantly alter the character of the original product.

• 3. 

  Member States may limit the application of this Article to certain types of other fermented beverages.

• 4. 

  For the purposes of this Article the term 'independent small producer' shall mean a producer of other fermented beverages which is legally and economically independent of any other producer of other fermented beverages, which uses premises situated physically apart from those of any other producers and does not operate under licence. However, where two or more small producers cooperate, and their combined annual production does not exceed 15 000 hl, those producers may be treated as a single

  independent small producer.

• 5. 

  Member States shall ensure that any reduced rates they introduce apply equally to other fermented beverages delivered into their territory from independent small

  producers situated in other Member States. In particular they shall ensure that no individual delivery from another Member State ever bears more duty than its exact national equivalent.

• (6) 

  In Article 15 the words “Directive 92/12/EEC i” are replaced by the words “Directive

  2008/118/EC [or a new recast Directive, if already adopted and published]”.

• (7) 

  In Article 18 (4) the words “Regulation 4252/88 i, Article 13(1) and (2)” are replaced by the words “Annex VII, Part II of Regulation (EU) Nr. 1308/2013 i”.

(7a) the following Article is inserted:

"Article 18a

• 1. 

  Member States may apply reduced rates of duty, which may be differentiated in accordance with the annual production of the producers concerned, to intermediate products made by

  independent small producers within the following limits:

  • - 

    the reduced rates shall not be applied to undertakings producing more than a total of 250 hl of these beverages per year,

  • - 

    the reduced rates, which may fall below the minimum rate, shall not be set more than 50 % below the standard national rate of intermediate products.

• 2. 

  Member States may limit the application of this Article to certain types of intermediate products.

• 3. 

  For the purposes of this Article the term 'independent small producer' shall mean a producer of intermediate products which is legally and economically independent of any other

  producer of intermediate products, which uses premises situated physically apart from those of any other producers and does not operate under licence. However, where two or more small producers cooperate, and their combined annual production does not exceed 250 hl, those producers may be treated as a single independent small producer.

• 4. 

  Member States shall ensure that any reduced rates they introduce apply equally to other intermediate products delivered into their territory from independent small producers

  situated in other Member States. In particular they shall ensure that no individual delivery from another Member State ever bears more duty than its exact national equivalent.

• (8) 

  Article 22 paragraph 6 shall be amended as follows:

  “(6) Bulgaria, the Czech Republic and Poland may apply a reduced rate of excise duty, of not less than 50 % of the standard national rate of excise duty on ethyl alcohol, to

  ethyl alcohol produced by fruit growers' distilleries producing, on an annual basis, more than 10 hectolitres of ethyl alcohol from fruit supplied to them by fruit growers' households. The application of the reduced rate shall be limited to 30 litres of fruit spirits per producing fruit growers' household per year, destined exclusively for their personal consumption .”

• (9) 

  In Article 22 the following paragraph 8 is inserted:

  “(8) Subject to such conditions as they shall lay down to ensure the straightforward application of this paragraph, Member States may exempt from excise duty, or apply reduced rates of excise to ethyl alcohol:

  (a) produced by a private individual from fruits supplied from his household, using simple, small distilling device

  and/or

  (b) produced in distilleries for a private individual, from fruits supplied from his household,

  and consumed by the private individual, members of his family or his guests, provided no sale is involved.

  Member States shall limit the application of the exemption or of the reduced rates to not more than 50 liters of fruit spirits per producing fruit grower's household per year.

  Member States applying such an exemption or reduced rates of excise shall lay down conditions for the purpose of preventing any evasion, avoidance or abuse and shall have adequate requirements and procedures in place to ensure the control of production and consumption and prevention of cross-border effect.

  Member States shall not apply these provisions in addition to the provisions of Article 22(6) and 22(7)."

• (10) 

  Article 23 shall read as follows:

  "Article 23

  • 1. 

    The French Republic may apply a reduced rate, which may fall below the minimum rate but not be set more than 50 % below the standard national rate of duty on ethyl alcohol, to rum as defined in point 1 of Annex II to Regulation (EC) No 110/2008 i

    and produced from sugar cane harvested in the place of manufacture as set out in point (13) of Annex I to that Regulation, having a content of volatile substances other than ethyl and methyl alcohol equal to or exceeding 225 grams per hectolitre of pure alcohol, and an actual alcoholic strength by volume equal to or exceeding 40 % vol.

  • 2. 

    The Hellenic Republic may apply a reduced rate, which may fall below the minimum rate:

    (a) but not be set more than 50 % below the standard national rate of duty on ethyl

    alcohol, in respect of distilled anis drinks as defined in point 29 of Annex II of Regulation (EC) No. 110/2008 i, which are colourless and have a sugar content of 50 grams or less per litre and the final product is composed at least in the percentage provided for in the said provision, of alcohol flavoured by distillation in traditional discontinuous copper stills with a capacity of 1000 litres or less and those grape marc spirit drinks as defined in point 6 of Annex II of Regulation (EC) No 110/2008 i, which are distilled in traditional discontinuous stills;

    (b) but not be set more than 85 % below the standard national rate of duty on ethyl alcohol, in respect of ethyl alcohol from fruits supplied from the

    household of the producer, which are distilled in simple copper traditional distilling devices with a capacity of up to 130 litres or in earthen traditional distilling devices with a capacity of up to 40 litres, in both cases operating up to a maximum of 8 days per year and producing a maximum of 5 hectolitres of pure alcohol per year.

(10a) In Section VI ("Miscellaneous"), the following Articles will be inserted:

"Article 23a

• 1. 

  Subject to such conditions as they shall lay down to ensure the straightforward application of the provisions in Articles 4, 9a, 13a, 18a and 22, Member States shall, on request, provide an annual certificate to independent small producers established in their territory confirming their annual total production of products referred to in these Articles, as applicable and confirming their compliance with the criteria in Article 4(2), 9a(2),13a(4), 18a(3) and 22(2), as applicable. The administrative document for the movement of goods under [Chapter IV or V of Directive 2008/118/EC i] shall refer to this certificate mentioned in this paragraph.

• 2. 

  Notwithstanding paragraph 1 of this Article, Member States may, under conditions which they shall lay down for the purpose of ensuring the correct and straightforward

  application of this provision and of preventing any evasion, avoidance or abuse allow independent small producers referred to in Articles 4(1), 9a(1), 13a(1), 18a(1) and 22(1) established in their territory to self certify their compliance with the criteria in Article 4(2), 9a(2), 13a(4), 18a(3) and 22(2) as applicable, and their annual total production of products referred to in these Articles.

• 3. 

  Member States shall, under conditions which they shall lay down for the purpose of ensuring the correct and straightforward application of this provision and of preventing any evasion, avoidance or abuse, recognise the certificate for producers referred to in Articles 4(1), 9a(1), 13a(1), 18a(1) and 22(1) issued by the other Member States, except under duly justified circumstances.

• 4. 

  The Commission shall adopt implementing acts laying down :

  (a) the form of the certificates referred to in paragraph 1;

  (b) the form of the reference to that certificate contained in the document for the movement of goods under [chapter IV or V of Directive 2008/118/EC i], and

  (c) the requirements for the completion of the administrative document in the case of self-certification.

  Those implementing acts shall be adopted in accordance with the examination procedure

  referred to in Article 28a(2).

• (11) 

  Article 26 is replaced by the following:

  “Article 26

  References in this Directive to codes of the combined nomenclature shall be to those of Commission Implementing Regulation (EC) 2018/1602 of 11 October 2018, amending Annex I to Council Regulation (EEC) No 2658/87 i on the tariff and statistical nomenclature and on the Common Customs Tariff.”;

• (12) 

  Article 27 is amended as follows:

(a) paragraph 1 is amended as follows:

(i) the introductory wording is replaced by the following:

"Member States shall exempt the products covered by this Directive from excise duty

under conditions which they shall lay down for the purpose of ensuring the correct

and straightforward application of such exemptions and of preventing any evasion,

avoidance or abuse:";

(ii) point (a) is replaced by the following:

"(a) when distributed in the form of alcohol which has been completely denatured in accordance with the requirements of the Member State where it has been

released for consumption, where such requirements having been duly notified in writing and authorised in accordance with paragraphs 3 and 4 of this Article. Member States shall apply the provisions of [chapter 5 of Directive 2008/118/EC i or new recast Directive];"

(iii) point (b) is replaced by the following:

"(b) when used as part of the manufacturing process of any product not for human consumption, provided the alcohol has been denatured in accordance with the requirements of any Member State for the given use. The exemption shall

apply when such denatured alcohol:

• - 

  has been incorporated into the product not for human consumption, or

• - 

  is used for maintenance and cleaning of the manufacturing equipment

used for this particular manufacturing process.

Member States shall apply the provisions of [chapter 4 of Directive 2008/118/EC i or new recast Directive] to movements of denatured alcohol that has not yet been incorporated into a product that is not for human consumption;"

(iv) in point (d) the words “Directive 65/65/EEC i” are replaced by the words “Directive 2001/83/EC i and Directive 2001/82/EC i”.

(b) in paragraph 2 the following point (f) is added:

“(f) in the manufacture of food supplements defined by Directive 2002/46/EC i containing ethyl alcohol, if the unit packet of the food supplement released for consumption

does not exceed 0,15 litres and food supplements are placed on the market pursuant to Article 10 of Directive 2002/46/EC i.“

(c) paragraph 3 is replaced by the following:

"3. A Member State wishing to introduce a change to the requirements for the complete denaturing of alcohol referred to in paragraph 1(a) shall notify such new

requirements to the Commission in writing together with all the relevant information about the denaturants which it intends to employ.

If the Commission considers that it does not have all the necessary information, it shall contact the Member State concerned within one month of receipt and specify what information is required. Once the Commission has all the information it considers necessary, it shall transmit the notification to the other Member States within one month.";

(d) paragraph 4 is replaced by the following:

"4. The Commission shall adopt implementing acts authorising or rejecting the requirements notified in accordance with paragraph 3. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 28a(2).";

(e) paragraph 5 is replaced by the following:

“5. If a Member State finds that a product which has been exempted under paragraphs 1(a) or 1(b) above gives rise to evasion, avoidance or abuse, it may refuse to grant exemption or withdraw the relief already granted. The Member State shall notify

such refusal or withdrawal forthwith to the Commission in writing together with all the relevant information about the evasion, avoidance or abuse. If the Commission considers that it does not have all the necessary information, it shall contact the Member State concerned within one month of receipt of such information and specify what further information is required. Once the Commission has all the information it considers necessary, it shall transmit the notification to the other Member States within one month. A final decision shall then be taken in accordance with the procedure laid down in Article 28a no later than 4 months after the transmission of the notification to the other Member States. Member States shall not be obliged to give retroactive effect to such a decision.”

• (13) 

  Article 28 is deleted;

• (14) 

  in Section VIII, the following Articles are inserted:

"Article 28a

• 1. 

  The Commission shall be assisted by the ‘Committee on Excise Duty’. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011 i.

• 2. 

  Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 i shall apply.

  Article 28b Reporting on the implementation of this Directive

Every five years the Commission shall submit a report on the implementation of this Directive to the European Parliament and the Council. The first report shall be submitted three years after the application date of this Directive at the latest.

In particular, the report shall:

(i) assess the application and impact of national provisions adopted and applied pursuant to Article 5, Article 9a, Article 22(8), Article 23a and Article 27(2)(f) of this

Directive; and

(ii) take account of relevant evidence on presence of impact of these provisions, such as negative cross-border effects, increase of fraud, impact on smooth functioning of

internal market and public health.

Member States shall, upon request, submit to the Commission information required to establish the report.

The report shall be accompanied by a legislative proposal, if appropriate.“

Article 2

• 1. 

  Member States shall adopt and publish, by 31 December 2021, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text thereof.

  They shall apply those measures from 1 January 2022.

  When Member States adopt those measures, they shall contain a reference to this Directive or

  be accompanied by such a reference on the occasion of their official publication. Member

  States shall determine how such reference is to be made.

• 2. 

  Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.

Article 3

This Directive shall enter into force on the twentieth day following that of its publication in the

Official Journal of the European Union.

Article 4

This Directive is addressed to the Member States.

Done at Brussels,

For the Council

The President

ANNEX II

Statement by the Commission on the draft Council directive amending the Alcohol Directive (92/83/EEC)

“Alcohol related harm is a major public health concern in the EU and while Member States are mainly responsible for their national alcohol policy, the Commission notes that the current wording of Directive 92/83 i/CEE does not offer the possibility for Member States to levy excise duties on specific alcoholic beverages in accordance with their alcoholic strength.

In light of these growing concerns of some Member States, the Commission will analyse the impacts of this alternative method as part of the first review of the Directive.”

Met de Parlementaire Monitor volgt u alle parlementaire dossiers die voor u van belang zijn en bent u op de hoogte van alles wat er speelt in die dossiers. Helaas kunnen wij geen nieuwe gebruikers aansluiten, deze dienst zal over enige tijd de werkzaamheden staken.