Keywords
Summary

Keywords

1. Common Customs Tariff - Customs duties - Application to ethyl alcohol imported as contraband from a non-member country

(Council Regulation No 2913/92)

2. Tax provisions - Harmonisation of laws - Turnover taxes - Common system of value added tax - Tax on importation - Application to ethyl alcohol imported as contraband from a non-member country

(Council Directive 77/388)

3. Tax provisions - Harmonisation of laws - Excise duties - Directives 92/12 and 92/83 - Application to ethyl alcohol imported as contraband from a non-member country

(Coucil Directive 92/12 and 92/83)

Summary

$$While illegal imports or supplies of goods which by their very nature or because of their special characteristics cannot be lawfully marketed or introduced into economic channels, such as narcotic drugs or counterfeit currency, are not subject to the taxes and customs duties normally payable under Community legislation, the principle of fiscal neutrality prevents any general distinction between lawful and unlawful transactions, apart from such cases where any competition between a lawful economic sector and an unlawful sector is precluded.

Ethyl alcohol imported as contraband from a non-member country is not a product whose marketing is prohibited by its very nature or because of its special characteristics. Nor may ethyl alcohol be regarded as a product which is outside economic channels, since competition is possible between the contraband product and that traded in lawful economic channels, in that there is a lawful market in alcohol which is precisely the target of contraband products.

Sixth Directive 77/388, Directive 92/12 on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products, Directive 92/83 on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages, and Regulation No 2913/92 establishing the Community Customs Code must therefore be interpreted as meaning that their provisions on liability to tax and tax debts apply also to contraband importation into Community customs territory of ethyl alcohol from non-member countries.

( see paras 19-20 and operative part )