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European directive seeks to eliminate duty-free border storesEuropean directive seeks to eliminate duty-free border stores
29-Feb-2008
A long-awaited draft directive on the movement of excise goods within Europe has deliberately omitted an exemption for border stores
European Travel Retail Council secretary general Keith Spinks told DFNIonline that the European Commission had confirmed the express intent of eliminating duty-free border shops as they are seen as sources of corruption and illegal trade. The Commission hopes the directive will be passed by April next year.
Spinks said there has never been any complaint of corruption against Hellenic Duty Free Shops, which operates duty-free shops on Greek borders and stands to lose a sizeable portion of its business if the directive is approved by the European Council of Finance Ministers.
The Bulgarian duty-free border industry is already under pressure, as politicians have drafted legislation to end the business and hope to pass it in the first half of 2008. Spinks said that the Bulgarian industry would have to show that it could put ‘rigorous controls’ in place to allay concerns over corruption and win a reprieve.
ETRC is holding a board meeting to discuss the development, and several other matters arising form the draft directive. Spinks said that the association would be speaking to stakeholders before deciding on a course of action, although it is likely that border operators will be asked to speak to their governments to persuade representatives in Brussels to oppose the directive.
The border shops between Finland and Russia will not be affected by the directive as they are situated after Finnish Customs and immigration zones in an effective no-man’s land.
Keep an eye on DFNIonline for more comment and reaction.
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