91998E0762

WRITTEN QUESTION E-0762/98 by Georg Jarzembowski (PPE) to the Commission (18 March 1998)

Subject: De facto non-implementation of simplified transit procedure in Greece

The customs authorities in Greece are unjustifiably denying shipping companies the option of processing goods destined for landing in the ports of Piraeus, Thessaloniki and Herakleion under the simplified transit procedure pursuant to Article 448 of Regulation (EEC) No 2454/93 ((OJ L 253, 11.10.1993, p. 1.)).

The authorities have designated the above three ports in their entirety as 'free zones'. This means that shippers using those ports are required to comply with the formalities pertaining to 'free zones', and to do so independently of whether or not goods are transported in containers. The formalities comprise up to fifteen procedural stages and are extremely time-consuming and costly to complete.

I therefore ask the Commission:

1. What view does it take of the practice by the Greek authorities described?

2. What action will it take to ensure that the advantages of the simplified transit procedure will also be available to shipping companies in the above ports?

Answer given by Mr Monti on behalf of the Commission (4 June 1998)

The Commission has received several complaints about the designation of Greek ports as free zones and the fact that all goods brought into Greece by sea must therefore pass through a free zone. This means that the Greek authorities will systematically request proof of the Community status of goods transported by sea, in breach of Article 313 of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code ((OJ L 253, 11.10.1993. )) (Regulation last amended by Commission Regulation (EC) No 75/98 of 12 January 1998 ((OJ L 7, 13.1.1998. ))). Moreover, even where the Community status of the goods has been proved, the obligations imposed on operators would appear to be a matter of customs rather than intra-Community taxation: a home-use declaration on a single document - even though customs regulations no longer provide for this - and payment of VAT on declaration.

Transport via a free zone - which is, as a customs treatment for imports under Article 166(a) of the Community Customs Code (Council Regulation (EEC) No 2913/92 of 11 October 1992 ((OJ L 302, 19.10.1992. )), as last amended by Parliament and Council Regulation (EC) No 82/97 of 19 December 1996 ((OJ L 17, 21.1.1997. ))), designed primarily for non-Community goods - should remain a choice for operators and not become an unavoidable obligation where Community goods are concerned, thus depriving operators of the benefits of the internal market.

Article 180 of the Community Customs Code states that where goods are brought into another part of the customs territory of the Community, and where it is not proved by a certificate or other means that the goods have Community or non-Community status, these goods are generally considered to be non-Community goods.

Article 37(2) of the Community Customs Code provides that goods brought into the customs territory of the Community must remain under customs supervision for as long as necessary to determine their customs status.

Once this status has been determined in line with Article 313 of Commission Regulation (EEC) No 2454/93, no other customs intervention is possible for Community goods where indirect taxation is concerned. The goods are subject to the rules governing intra-Community deliveries, both under the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes - common system of value added tax: uniform basis of assessment ((OJ L 145, 13.6.1977. )), and under Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products ((OJ L 76, 23.3.1992. )) (directive last amended by Council Directive 96/99/EC of 30 December 1996 ((OJ L 8, 11.1.1997. ))).

The Commission, in a letter dated 3 December 1997, asked Greece, in accordance with Article 169 (subparagraph 1) of the EC Treaty, to submit its observations on its failure to comply with the abovementioned provisions. Greece replied to the Commission on 17 February 1998. Its reply is currently being studied.