20.7.1987 EN Official Journal of the European Communities L 198/3 INTERNATIONAL CONVENTION on the Harmonized Commodity Description and Coding System (Done at Brussels on 14 June 1983) PREAMBLE THE CONTRACTING PARTIES to this Convention, established under the auspices of the Customs Cooperation Council, DESIRING to facilitate international trade, DESIRING to facilitate the collection, comparison and analysis of statistics, in particular those on international trade, DESIRING to reduce the expense incurred by redescribing, reclassifying and recording goods as they move from one classification system to another in the course of international trade and to facilitate the standardization of trade documentation and the transmission of data, CONSIDERING that changes in technology and the patterns of international trade require extensive modifications to the Convention on Nomenclature for the Classification of Goods in Customs Tariffs, done at Brussels on 15 December 1950, CONSIDERING also that the degree of detail required for Customs and statistical purposes by Governments and trade interests has increased far beyond that provided by the Nomenclature annexed to the abovementioned Convention, CONSIDERING the importance of accurate and comparable data for the purposes of international trade negotiations, CONSIDERING that the Harmonized System is intended to be used for the purposes of freight tariffs and transport statistics of the various modes of transport, CONSIDERING that the Harmonized System is intended to be incorporated into commercial commodity description and coding systems to the greatest extent possible, CONSIDERING that the Harmonized System is intended to promote as close a correlation as possible between import and export trade statistics and production statistics, CONSIDERING that a close correlation should be maintained between the Harmonized System and the Standard International Trade Classification (SITC) of the United Nations, CONSIDERING the desirability of meeting the aforementioned needs through a combined tariff/statistical nomenclature, suitable for use by the various interests concerned with international trade, CONSIDERING the importance of ensuring that the Harmonized System is kept up to date in the light of changes in technology or in patterns of international trade, HAVING taken into consideration the work accomplished in this sphere by the Harmonized System Committee set up by the Customs Cooperation Council, CONSIDERING that while the abovementioned Nomenclature Convention has proved an effective instrument in the attainment of some of these objectives, the best way to achieve the desired results in this respect is to conclude a new international Convention, HAVE AGREED AS FOLLOWS: Article 1 Definitions For the purpose of this Convention: (a) the ‘Harmonized Commodity Description and Coding System’, hereinafter referred to as the ‘Harmonized System’, means the Nomenclature comprising the headings and subheadings and their related numerical codes, the Section, Chapter and Subheading Notes and the General Rules for the interpretation of the Harmonized System, set out in the Annex to this Convention; (b) ‘Customs tariff nomenclature’ means the nomenclature established under the legislation of a Contracting Party for the purposes of levying duties of Customs on imported goods; (c) ‘statistical nomenclatures’ means goods nomenclatures established by a Contracting Party for the collection of data for import and export trade statistics; (d) ‘combined tariff/statistical nomenclature’ means a nomenclature, integrating Customs tariff and statistical nomenclatures, legally required by a Contracting Party for the declaration of goods at importation; (e) ‘the Convention establishing the Council’ means the Convention establishing a Customs Cooperation Council, done at Brussels on 15 December 1950; (f) ‘the Council’ means the Customs Cooperation Council referred to in paragraph (e) above; (g) ‘the Secretary-General’ means the Secretary-General of the Council; (h) the term ‘ratification’ means ratification, acceptance or approval. Article 2 Annex The Annex to this Convention shall form an integral part thereof, and any reference to the Convention shall include a reference to the Annex. Article 3 Obligations of Contracting Parties 1. Subject to the exceptions enumerated in Article 4: (a) Each Contracting Party undertakes, except as provided in subparagraph (c) of this paragraph, that from the date on which this Convention enters into force in respect of it, its customs tariff and statistical nomenclatures shall be in conformity with the Harmonized System. It thus undertakes that, in respect of its Customs tariff and statistical nomenclatures: (i) it shall use all the headings and subheadings of the Harmonized System without addition or modification, together with their related numerical codes; (ii) it shall apply the General Rules for the interpretation of the Harmonized System and all the Section, Chapter and Subheading Notes, and shall not modify the scope of the Sections, Chapters, headings or subheadings of the Harmonized System; and (iii) it shall follow the numerical sequence of the Harmonized System; (b) Each Contracting Party shall also make publicly available its import and export trade statistics in conformity with the six-digit codes of the Harmonized System, or, on the initiative of the Contracting Party, beyond that level, to the extent that publication is not precluded for exceptional reasons such as commercial confidentiality or national security; (c) Nothing in this Article shall require a Contracting Party to use the subheadings of the Harmonized System in its customs tariff nomenclature provided that it meets the obligations at (a) (i), (a) (ii) and (a) (iii) above in a combined tariff/statistical nomenclature. 2. In complying with the undertakings at paragraph 1 (a) of this Article, each Contracting Party may make such textual adaptations as may be necessary to give effect to the Harmonized System in its domestic law. 3. Nothing in this Article shall prevent a Contracting Party from establishing, in its Customs tariff, or statistical nomenclatures, subdivisions classifying goods beyond the level of the Harmonized System, provided that any such subdivision is added and coded at a level beyond that of the six-digit numerical code set out in the Annex to this Convention. Article 4 Partial application by developing countries 1. Any developing country Contracting Party may delay its application of some or all of the subheadings of the Harmonized System for such period as may be necessary, having regard to its pattern of international trade or its administrative resources. 2. A developing country Contracting Party which elects to apply the Harmonized System partially under the provisions of this Article agrees to make its best efforts towards the application of the full six-digit Harmonized System within five years of the date on which this Convention enters into force in respect of it or within such further period as it may consider necessary having regard to the provisions of paragraph 1 of this Article. 3. A developing country Contracting Party which elects to apply the Harmonized System partially under the provisions of this Article shall apply all or none of the two-dash subheadings of any one one-dash subheading or all or none of the one-dash subheadings of any one heading. In such cases of partial application, the sixth digit or the fifth and sixth digits of that part of the Harmonized System code not applied shall be replaced by ‘0’ or ‘00’ respectively. 4. A developing country which elects to apply the Harmonized System partially under the provisions of this Article shall on becoming a Contracting Party notify the Secretary-General of those subheadings which it will not apply on the date when this Convention enters into force in respect of it and shall also notify the Secretary-General of those subheadings which it applies thereafter. 5. Any developing country which elects to apply the Harmonized System partially under the provisions of this Article may on becoming a Contracting Party notify the Secretary-General that it formally undertakes to apply the full six-digit Harmonized System within three years of the date when this Convention enters into force in respect of it. 6. Any developing country Contracting Party which partially applies the Harmonized System under the provisions of this Article shall be relieved from its obligations under Article 3 in relation to the subheadings not applied. Article 5 Technical assistance for developing countries Developed country Contracting Parties shall furnish to developing countries that so request, technical assistance on mutually agreed terms in respect of, inter alia, training of personnel, transposing their existing nomenclatures to the Harmonized System and advice on keeping their systems so transposed up to date with amendments to the Harmonized System or on applying the provisions of this Convention. Article 6 Harmonized System Committee 1. There shall be established under this Convention a Committee to be known as the Harmonized System Committee, composed of representatives from each of the Contracting Parties. 2. It shall normally meet at least twice each year. 3. Its meetings shall be convened by the Secretary-General and, unless the Contracting Parties otherwise decide, shall be held at the Headquarters of the Council. 4. In the Harmonized System Committee each Contracting Party shall have the right to one vote; nevertheless, for the purposes of this Convention and without prejudice to any future Convention, where a Customs or Economic Union as well as one or more of its Member States are Contracting Parties such Contracting Parties shall together exercise only one vote. Similarly, where all the Member States of a Customs or Economic Union which is eligible to become a Contracting Party under the provisions of Article 11 (b) become Contracting Parties, they shall together exercise only one vote. 5. The Harmonized System Committee shall elect its own Chairman and one or more Vice-Chairmen. 6. It shall draw up its own Rules of Procedure by decision taken by not less than two-thirds of the votes attributed to its members. The rules of Procedure so drawn up shall be approved by the Council. 7. It shall invite such intergovernmental or other international organizations as it may consider appropriate to participate as observers in its work. 8. It shall set up Sub-Committees or Working Parties as needed, having regard, in particular, to the provisions of paragraph 1 (a) of Article 7, and it shall determine the membership, voting rights and Rules of Procedure for such Sub-Committees or Working Parties. Article 7 Functions of the Committee 1. The Harmonized System Committee, having regard to the provisions of Article 8, shall have the following functions: (a) to propose such amendments to this Convention as may be considered desirable, having regard, in particular, to the needs of users and to changes in technology or in patterns of international trade; (b) to prepare Explanatory Notes, Classification Opinions or other advice as guides to the interpretation of the Harmonized System; (c) to prepare recommendations to secure uniformity in the interpretation and application of the Harmonized System; (d) to collate and circulate information concerning the application of the Harmonized System; (e) on its own initiative or on request, to furnish information or guidance on any matters concerning the classification of goods in the Harmonized System to Contracting Parties, to Members of the Council and to such intergovernmental or other international organizations as the Committee may consider appropriate; (f) to present Reports to each Session of the Council concerning its activities, including proposed amendments, Explanatory Notes, Classification Opinions and other advice; (g) to exercice such other powers and functions in relation to the Harmonized System as the Council or the Contracting Parties may deem necessary. 2. Administrative decisions of the Harmonized System Committee having budgetary implications shall be subject to approval by the Council. Article 8 Role of the Council 1. The Council shall examine proposals for amendment of this Convention, prepared by the Harmonized System Committee, and recommend them to the Contracting Parties under the procedure of Article 16 unless any Council Member which is a Contracting Party to this Convention requests that the proposals or any part thereof be referred to the Committee for re-examination. 2. The Explanatory Notes, Classification Opinions, other advice on the interpretation of the Harmonized System and recommendations to secure uniformity in the interpretation and application of the Harmonized System, prepared during a session of the Harmonized System Committee under the provisions of paragraph 1 of Article 7, shall be deemed to be approved by the Council if, not later than the end of the second month following the month during which that session was closed, no Contracting Party to this Convention has notified the Secretary-General that it requests that such matter be referred to the Council. 3. Where a matter is referred to the Council under the provisions of paragraph 2 of this Article, the Council shall approve such Explanatory Notes, Classification Opinions, other advice or recommendations, unless any Council Member which is a Contracting Party to this Convention requests that they be referred in whole or part to the Committee for re-examination. Article 9 Rates of Customs duty The Contracting Parties do not assume by this Convention any obligation in relation to rates of Customs duty. Article 10 Settlement of disputes 1. Any dispute between Contracting Parties concerning the interpretation or application of this Convention shall, so far as possible, be settled by negotiation between them. 2. Any dispute which is not so settled shall be referred by the Parties to the dispute to the Harmonized System Committee which shall thereupon consider the dispute and make recommendations for its settlement. 3. If the Harmonized System Committee is unable to settle the dispute, it shall refer the matter to the Council which shall make recommendations in conformity with Article III (e) of the Convention establishing the Council. 4. The Parties to the dispute may agree in advance to accept the recommendations of the Committee or the Council as binding. Article 11 Eligibility to become a Contracting Party The following are eligible to become Contracting Parties to this Convention: (a) Member States of the Council; (b) Customs or Economic Unions to which competence has been transferred to enter into treaties in respect of some or all of the matters governed by this Convention; and (c) Any other State to which an invitation to that effect has been addressed by the Secretary-General at the direction of the Council. Article 12 Procedure for becoming a Contracting Party 1. Any eligible State or Customs or Economic Union may become a Contracting Party to this Convention: (a) by signing it without reservation of ratification; (b) by depositing an instrument of ratification after having signed the Convention subject to ratification; or (c) by acceding to it after the Convention has ceased to be open for signature. 2. This Convention shall be open for signature until 31 December 1986 at the Headquarters of the Council in Brussels by the States and Customs or Economic Unions referred to in Article 11. Thereafter, it shall be open for their accession. 3. The instruments of ratification or accession shall be deposited with the Secretary General. Article 13 Entry into force 1. This Convention shall enter into force on 1 January which falls at least 12 months but not more than 24 months after a minimum of 17 States or Customs or Economic Unions referred to in Article 11 above have signed it without reservation of ratification or have deposited their instruments of ratification of accession, but not before 1 January 1987. 2. For any State or Customs or Economic Union signing without reservation of ratification, ratifying or acceding to this Convention after the minimum number specified in paragraph 1 of this Article is reached, this Convention shall enter into force on 1 January which falls at least 12 months but not more than 24 months after it has signed the Convention without reservation of ratification or has deposited its instrument of ratification or accession, unless it specifies an earlier date. However, the date of entry into force under the provisions of this paragraph shall not be earlier than the date of entry, into force provided for in paragraph 1 of this Article. Article 14 Application by dependent territories 1. Any State may, at the time of becoming a Contracting Party to this Convention, or at any time thereafter, declare by notification given to the Secretary-General that the Convention shall extend to all or any of the territories for whose international relations it is responsible, named in its notification. Such notification shall take effect on 1 January which falls at least 12 months but not more than 24 months after the date of the receipt thereof by the Secretary-General, unless an earlier date is specified in the notification. However, this Convention shall not apply to such territories before it has entered into force for the State concerned. 2. This Convention shall cease to have effect for a named territory on the date when the Contracting Party ceases to be responsible for the international relations of that territory or on such earlier date as may be notified to the Secretary-General under the procedure of Article 15. Article 15 Denunciation This Convention is of unlimited duration. Nevertheless any Contracting Party may denounce it and such denunciation shall take effect one year after the receipt of the instrument of denunciation by the Secretary-General, unless a later date is specified therein. Article 16 Amendment procedure 1. The Council may recommend amendments to this Convention to the Contracting Parties. 2. Any Contracting Party may notify the Secretary-General of an objection to a recommended amendment and many subsequently withdraw such objection within the period specified in paragraph 3 of this Article. 3. Any recommended amendment shall be deemed to be accepted six months after the date of its notification by the Secretary-General provided that there is no objection outstanding at the end of this period. 4. Accepted amendments shall enter into force for all Contracting Parties on one of the following dates: (a) where the recommended amendment is notified before 1 April, the date shall be 1 January of the second year following the date of such notification, or (b) where the recommended amendment is notified on or after 1 April, the date shall be 1 January of the third year following the date of such notification. 5. The statistical nomenclatures of each Contracting Party and its customs tariff nomenclature or, in the case provided for under paragraph 1 (c) of Article 3, its combined tariff statistical nomenclature, shall be brought into conformity with the amended Harmonized System on the date specified in paragraph 4 of this Article. 6. Any State or Customs or Economic Union signing without reservation of ratification, ratifying or acceding to this Convention shall be deemed to have accepted any amendments thereto which, at the date when it becomes a Contracting Party, have entered into force or have been accepted under the provisions of paragraph 3 of this Article. Article 17 Rights of Contracting Parties in respect of the Harmonized System On any matter affecting the Harmonized System, paragraph 4 of Article 6, Article 8 and paragraph 2 of Article 16 shall confer rights on a Contracting Party: (a) in respect of all parts of the Harmonized System which it applies under the provisions of this Convention; or (b) until the date when this Convention enters into force in respect of it in accordance with the provisions of Article 13, in respect of all parts of the Harmonized System which it is obligated to apply at that date under the provisions of this Convention; or (c) in respect of all parts of the Harmonized System, provided that it has formally undertaken to apply the full six-digit Harmonized System within the period of three years referred to in paragraph 5 of Article 4 and until the expiration of that period. Article 18 Reservations No reservations to this Convention shall be permitted. Article 19 Notification by the Secretary-General The Secretary-General shall notify Contracting Parties, other signatory States, Member States of the Council which are not Contracting Parties to this Convention, and the Secretary-General of the United Nations, of the following: (a) Notifications under Article 4; (b) Signatures, ratifications and accessions as referred to in Article 12; (c) The date on which the Convention shall enter into force in accordance with Article 13; (d) Notifications under Article 14; (e) Denunciations under Article 15; (f) Amendments to the Convention recommended under Article 16; (g) Objections in respect of recommended amendments under Article 16, and, where appropriate, their withdrawal; and (h) Amendments accepted under Article 16, and the date of their entry into force. Article 20 Registration with the United Nations This Convention shall be registered with the Secretariat of the United Nations in accordance with the provisions of Article 102 of the Charter of the United Nations at the request of the Secretary-General of the Council. In witness thereof the undersigned, being duly authorized thereto, have signed this Convention. Done at Brussels on the fourteenth day of June nineteen hundred and eighty-three, in the English and French languages, both texts being equally authentic, in a single original which shall be deposited with the Secretary-General of the Council who shall transmit certified copies thereof to all the States and Customs or Economic Unions referred to in Article 11.

Summary: International Convention on the Harmonized Commodity Description and Coding System International Convention on the Harmonized Commodity Description and Coding System SUMMARY OF: Decision 87/369/EEC — conclusion of the International Convention on the Harmonized Commodity Description and Coding System and of the Protocol of Amendment thereto International Convention on the Harmonized Commodity Description and Coding System Protocol of Amendment to the International Convention on the Harmonized Commodity Description and Coding System WHAT IS THE AIM OF THE DECISION, THE CONVENTION AND THE PROTOCOL? The decision confirms that the EU will apply the international convention and the protocol of amendment from 1 January 1988. The convention aims to facilitate international trade and the collection, comparison and analysis of trade statistics by using agreed classifications. The protocol of amendment states that the convention will enter into force on 1 January in a given year once at least 17 countries, customs or economic unions have signed it, but not before 1 January 1988. KEY POINTS The convention: confirms all the signatories: guarantee their customs tariff and statistical headings will conform to the harmonized system (HS) once the convention enters into force,apply the convention’s general rules,make publicly available their import and export trade statistics in line with the HS’s six-digit codes,may apply subdivisions to classify goods below the level of the HS; allows developing countries: to delay using some or all of the HS’s subheadings, but urges them to adopt the system within 5 years; notes that developed countries, if requested, will provide technical assistance to developing countries to help them apply the HS; establishes a harmonized system committee, which: has one representative from each signatory,meets normally at least twice a year,proposes amendments to the convention,prepares explanatory notes, classification opinions and recommendations to ensure the HS is uniformly applied,collates and circulates information on the HS; states that the World Customs Organization (WCO) (formerly the Customs Cooperation Council) examines proposed amendments to the convention and recommends these to the signatories; requires any dispute between signatories on the interpretation or application of the convention to be settled by negotiation — failing this, the issue is referred to the harmonized system committee of the WCO; sets out that the following may sign up to the convention: member countries of the WCO,customs or economic unions with the power to sign treaties,countries invited to do so; gives signatories the right to decide whether the convention applies to any of their dependent territories; is of unlimited duration. The convention replaces the Convention on Nomenclature signed in Brussels on 15 December 1950. DATE OF ENTRY INTO FORCE The convention entered into force on 1 January 1988. BACKGROUND The Harmonized Commodity Description and Coding System was developed by the World Customs Organization. It is used by 211 economies, of which 160 are signatories to the convention, for their customs tariffs and for collecting international trade statistics. It contains some 5,000 commodity groups — each identified by a six-digit code — and classifies over 98% of international trade in goods. Governments, international organisations and the private sector use the harmonized system for many other purposes, including internal taxes, trade policies, monitoring of controlled goods and freight tariffs. This makes it a universal economic language and a code for goods. The convention is updated every 5 years. The latest version, containing 351 amendments, will come into force on 1 January 2022 (replacing the current version from 2017). For more information, see: The Combined Nomenclature (European Commission). MAIN DOCUMENTS Council Decision 87/369/EEC of 7 April 1987 concerning the conclusion of the International Convention on the Harmonized Commodity Description and Coding System and of the Protocol of Amendment thereto (OJ L 198, 20.7.1987, pp. 1-2) International Convention on the Harmonized Commodity Description and Coding System (OJ L 198, 20.7.1987, pp. 3-10) Protocol of Amendment to the International Convention on the Harmonized Commodity Description and Coding System (OJ L 198, 20.7.1987, pp. 11-409) last update 17.09.2020


31.7.1985 EN Official Journal of the European Communities L 199/1 COUNCIL REGULATION (EEC) No 2137/85 of 25 July 1985 on the European Economic Interest Grouping (EEIG) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 235 thereof, Having regard to the proposal from the Commission (1), Having regard to the opinion of the European Parliament (2), Having regard to the opinion of the Economic and Social Committee (3), Whereas a harmonious development of economic activities and a continuous and balanced expansion throughout the Community depend on the establish-mend and smooth functioning of a common market offering conditions analogous to those of a national market; whereas to bring about this single market and to increase its unity a legal framework which facilitates the adaptation of their activities to the economic conditions of the Community should be created for natural persons, companies, firms and other legal bodies in particular; whereas to that end it is necessary that those natural persons, companies, firms and other legal bodies should be able to cooperate effectively across frontiers; Whereas cooperation of this nature can encounter legal, fiscal or psychological difficulties; whereas the creation of an appropriate Community legal instrument in the form of a European Economic Interest Grouping would contribute to the achievement of the abovementioned objectives and therefore proves necessary; Whereas the Treaty does not provide the necessary powers for the creation of such a legal instrument; Whereas a grouping's ability to adapt to economic conditions must be guaranteed by the considerable freedom for its members in their contractual relations and the internal organization of the grouping; Whereas a grouping differs from a firm or company principally in its purpose, which is only to facilitate or develop the economic activities of its members to enable them to improve their own results; whereas, by reason of that ancillary nature, a grouping's activities must be related to the economic activities of its members but not replace them so that, to that extent, for example, a grouping may not itself, with regard to third parties, practise a profession, the concept of economic activities being interpreted in the widest sense; Whereas access to grouping form must be made as widely available as possible to natural persons, companies, firms and other legal bodies, in keeping with the aims of this Regulation; whereas this Regulation shall not, however, prejudice the application at national level of legal rules and/or ethical codes concerning the conditions for the pursuit of business and professional activities; Whereas this Regulation does not itself confer on any person the right to participate in a grouping, even where the conditions it lays down are fulfilled; Whereas the power provided by this Regulation to prohibit or restrict participation in grouping on grounds of public interest is without prejudice to the laws of Member States which govern the pursuit of activities and which may provide further prohibitions or restrictions or otherwise control or supervise participation in a grouping by any natural person, company, firm or other legal body or any class of them; Whereas, to enable a grouping to achieve its purpose, it should be endowed with legal capacity and provision should be made for it to be represented vis-à-vis third parties by an organ legally separate from its membership; Whereas the protection of third parties requires widespread publicity; whereas the members of a grouping have unlimited joint and several liability for the grouping's debts and other liabilities, including those relating to tax or social security, without, however, that principle's affecting the freedom to exclude or restrict the liability of one or more of its members in respect of a particular debt or other liability by means of a specific contract between the grouping and a third party; Whereas matters relating to the status or capacity of natural persons and to the capacity of legal persons are governed by national law; Whereas the grounds for winding up which are peculiar to the grouping should be specific while referring to national law for its liquidation and the conclusion thereof; Whereas groupings are subject to national laws relating to insolvency and cessation of payments; whereas such laws may provide other grounds for the winding up of groupings; Whereas this Regulation provides that the profits or losses resulting from the activities of a grouping shall be taxable only in the hands of its members; whereas it is understood that otherwise national tax laws apply, particularly as regards the apportionment of profits, tax procedures and any obligations imposed by national tax law; Whereas in matters not covered by this Regulation the laws of the Member States and Community law are applicable, for example with regard to: — social and labour laws, — competition law, — intellectual property law; Whereas the activities of groupings are subject to the provisions of Member Stateslaws on the pursuit and supervision of activities; whereas in the event of abuse or circumvention of the laws of a Member State by a grouping or its members that Member State may impose appropriate sanctions; Whereas the Member States are free to apply or to adopt any laws, regulations or administrative measures which do not conflict with the scope or objectives of this Regulation; Whereas this Regulation must enter into force immediately in its entirety; whereas the implementation of some provisions must nevertheless be deferred in order to allow the Member States first to set up the necessary machinery for the registration of groupings in their territories and the disclosure of certain matters relating to groupings; whereas, with effect from the date of implementation of this Regulation, groupings set up may operate without territorial restrictions, HAS ADOPTED THIS REGULATION: Article 1 1. European Economic Interest Groupings shall be formed upon the terms, in the manner and with the effects laid down in this Regulation. Accordingly, parties intending to form a grouping must conclude a contract and have the registration provided for in Article 6 carried out. 2. A grouping so formed shall, from the date of its registration as provided for in Article 6, have the capacity, in its own name, to have rights and obligations of all kinds, to make contracts or accomplish other legal acts, and to sue and be sued. 3. The Member States shall determine whether or not groupings registered at their registries, pursuant to Article 6, have legal personality. Article 2 1. Subject to the provisions of this Regulation, the law applicable, on the one hand, to the contract for the formation of a grouping, except as regards matters relating to the status or capacity of natural persons and to the capacity of legal persons and, on the other hand, to the internal organization of a grouping shall be the internal law of the State in which the official address is situated, as laid down in the contract for the formation of the grouping. 2. Where a State comprises several territorial units, each of which has its own rules of law applicable to the matters referred to in paragraph 1, each territorial unit shall be considered as a State for the purposes of identifying the law applicable under this Article. Article 3 1. The purpose of a grouping shall be to facilitate or develop the economic activities of its members and to improve or increase the results of those activities; its purpose is not to make profits for itself. Its activity shall be related to the economic activities of its members and must not be more than ancillary to those activities. 2. Consequently, a grouping may not: (a) exercise, directly or indirectly, a power of management or supervision over its members' own activities or over the activities of another undertaking, in particular in the fields of personnel, finance and investment; (b) directly or indirectly, on any basis whatsoever, hold shares of any kind in a member undertaking; the holding of shares in another undertaking shall be possible only in so far as it is necessary for the achievement of the grouping's objects and if it is done on its members' behalf; (c) employ more than 500 persons; (d) be used by a company to make a loan to a director of a company, or any person connected with him, when the making of such loans is restricted or controlled under the Member States' laws governing companies. Nor must a grouping be used for the transfer of any property between a company and a director, or any person connected with him, except to the extent allowed by the Member States' laws governing companies. For the purposes of this provision the making of a loan includes entering into any transaction or arrangement of similar effect, and property includes moveable and immoveable property; (e) be a member of another European Economic Interest Grouping. Article 4 1. Only the following may be members of a grouping: (a) companies or firms within the meaning of the second paragraph of Article 58 of the Treaty and other legal bodies governed by public or private law, which have been formed in accordance with the law of a Member State and which have their registered or statutory office and central adminsitration in the Community; where, under the law of a Member State, a company, firm or other legal body is not obliged to have a registered or statutory office, it shall be sufficient for such a company, firm or other legal body to have its central administration in the Community; (b) natural persons who carry on any industrial, commercial, craft or agricultural activity or who provide professional or other services in the Community. 2. A grouping must comprise at least: (a) two companies, firms or other legal bodies, within the meaning of paragraph 1, which have their central administrations in different Member States, or (b) two natural persons, within the meaning of paragraph 1, who carry on their principal activities in different Member States, or (c) a company, firm or other legal body within the meaning of paragraph 1 and a natural person, of which the first has its central administration in one Member State and the second carries on his principal activity in another Member State. 3. A Member State may provide that groupings registered at its registries in accordance with Article 6 may have no more than 20 members. For this purpose, that Member State may provide that, in accordance with its laws, each member of a legal body formed under its laws, other than a registered company, shall be treated as a separate member of a grouping. 4. Any Member State may, on grounds of that State's public interest, prohibit or restrict participation in groupings by certain classes of natural persons, companies, firms, or other legal bodies. Article 5 A contract for the formation of a grouping shall include at least: (a) the name of the grouping preceded or followed either by the words ‘European Economic Interest Grouping’ or by the initials ‘EEIG’, unless those words or initials already form part of the name; (b) the official address of the grouping; (c) the objects for which the grouping is formed; (d) the name, business name, legal form, permanent address or registered office, and the number and place of registration, if any, of each member of the grouping; (e) the duration of the grouping, except where this is indefinite. Article 6 A grouping shall be registered in the State in which it has its official address, at the registry designated pursuant to Article 39 (1). Article 7 A contract for the formation of a grouping shall be filed at the registry referred to in Article 6. The following documents and particulars must also be filed at that registry: (a) any amendment to the contract for the formation of a grouping, including any change in the composition of a grouping; (b) notice of the setting up or closure of any establishment of the grouping; (c) any judicial decision establishing or declaring the nullity of a grouping, in accordance with Article 15; (d) notice of the appointment of the manager or managers of a grouping, their names and any other identification particulars required by the law of the Member State in which the register is kept, notification that they may act alone or must act jointly, and the termination of any manager's appointment; (e) notice of a member's assignment of his participation in a grouping or a proportion thereof, in accordance with Article 22 (1); (f) any decision by members ordering or establishing the winding up of a grouping, in accordance with Article 31, or any judicial decision ordering such winding up, in accordance with Articles 31 or 32; (g) notice of the appointment of the liquidator or liquidators of a grouping, as referred to in Article 35, their names and any other identification particulars required by the law of the Member State in which the register is kept, and the termination of any liquidator's appointment; (h) notice of the conclusion of a grouping's liquidation, as referred to in Article 35 (2); (i) any proposal to transfer the official address, as referred to in Article 14 (1); (j) any clause exempting a new member from the payment of debts and other liabilities which originated prior to his admission, in accordance with Article 26 (2). Article 8 The following must be published, as laid down in Article 39, in the gazette referred to in paragraph 1 of that Article: (a) the particulars which must be included in the contract for the formation of a grouping, pursuant to Article 5, and any amendments thereto; (b) the number, date and place of registration as well as notice of the termination of that registration; (c) the documents and particulars referred to in Article 7 (b) to (j). The particulars referred to in (a) and (b) must be published in full. The documents and particulars referred to in (c) may be published either in full or in extract form or by means of a reference to their filing at the registry, in accordance with the national legislation applicable. Article 9 1. The documents and particulars which must be published pursuant to this Regulation may be relied on by a grouping as against third parties under the conditions laid down by the national law applicable pursuant to Article 3 (5) and (7) of Council Directive 68/151/EEC of 9 March 1968 on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, with a view to making such safeguards equivalent throughout the Community (4). 2. If activities have been carried on on behalf of a grouping before its registration in accordance with Article 6 and if the grouping does not, after its registration, assume the obligations arising out of such activities, the natural persons, companies, firms or other legal bodies which carried on those activities shall bear unlimited joint and several liability for them. Article 10 Any grouping establishment situated in a Member State other than that in which the official address is situated shall be registered in that State. For the purpose of such registration, a grouping shall file, at the appropriate registry in that Member State, copies of the documents which must be filed at the registry of the Member State in which the official address is situated, together, if necessary, with a translation which conforms with the practice of the registry where the establishment is registered. Article 11 Notice that a grouping has been formed or that the liquidation of a grouping has been concluded stating the number, date and place of registration and the date, place and title of publication, shall be given in the Official Journal of the European Communities after it has been published in the gazette referred to in Article 39 (1). Article 12 The official address referred to in the contract for the formation of a grouping must be situated in the Community. The official address must be fixed either: (a) where the grouping has its central administration, or (b) where one of the members of the grouping has its central administration or, in the case of a natural person, his principal activity, provided that the grouping carries on an activity there. Article 13 The official address of a grouping may be transferred within the Community. When such a transfer does not result in a change in the law applicable pursuant to Article 2, the decision to transfer shall be taken in accordance with the conditions laid down in the contract for the formation of the grouping. Article 14 1. When the transfer of the official address results in a change in the law applicable pursuant to Article 2, a transfer proposal must be drawn up, filed and published in accordance with the conditions laid down in Articles 7 and 8. No decision to transfer may be taken for two months after publication of the proposal. Any such decision must be taken by the members of the grouping unanimously. The transfer shall take effect on the date on which the grouping is registered, in accordance with Article 6, at the registry for the new official address. That registration may not be effected until evidence has been produced that the proposal to transfer the official address has been published. 2. The termination of a grouping's registration at the registry for its old official address may not be effected until evidence has been produced that the grouping has been registered at the registry for its new official address. 3. Upon publication of a grouping's new registration the new official address may be relied on as against third parties in accordance with the conditions referred to in Article 9 (1); however, as long as the termination of the grouping's registration at the registry for the old official address has not been published, third parties may continue to rely on the old official address unless the grouping proves that such third parties were aware of the new official address. 4. The laws of a Member State may provide that, as regards groupings registered under Article 6 in that Member State, the transfer of an official address which would result in a change of the law applicable shall not take effect if, within the two-month period referred to in paragraph 1, a competent authority in that Member State opposes it. Such opposition may be based only on grounds of public interest. Review by a judicial authority must be possible. Article 15 1. Where the law applicable to a grouping by virtue of Article 2 provides for the nullity of that grouping, such nullity must be established or declared by judicial decision. However, the court to which the matter is referred must, where it is possible for the affairs of the grouping to be put in order, allow time to permit that to be done. 2. The nullity of a grouping shall entail its liquidation in accordance with the conditions laid down in Article 35. 3. A decision establishing or declaring the nullity of a grouping may be relied on as against third parties in accordance with the conditions laid down in Article 9 (1). Such a decision shall not of itself affect the validity of liabilities, owed by or to a grouping, which originated before it could be relied on as against third parties in accordance with the conditions laid down in the previous subparagraph. Article 16 1. The organs of a grouping shall be the members acting collectively and the manager or managers. A contract for the formation of a grouping may provide for other organs; if it does it shall determine their powers. 2. The members of a grouping, acting as a body, may take any decision for the purpose of achieving the objects of the grouping. Article 17 1. Each member shall have one vote. The contract for the formation of a grouping may, however, give more than one vote to certain members, provided that no one member holds a majority of the votes. 2. A unanimous decision by the members shall be required to: (a) alter the objects of a grouping; (b) alter the number of votes allotted to each member; (c) alter the conditions for the taking of decisions; (d) extend the duration of a grouping beyond any period fixed in the contract for the formation of the grouping; (e) alter the contribution by every member or by some members to the grouping's financing; (f) alter any other obligation of a member, unless otherwise provided by the contract for the formation of the grouping; (g) make any alteration to the contract for the formation of the grouping not covered by this paragraph, unless otherwise provided by that contract. 3. Except where this Regulation provides that decisions must be taken unanimously, the contract for the formation of a grouping may prescribe the conditions for a quorum and for a majority, in accordance with which the decisions, or some of them, shall be taken. Unless otherwise provided for by the contract, decisions shall be taken unanimously. 4. On the initiative of a manager or at the request of a member, the manager or managers must arrange for the members to be consulted so that the latter can take a decision. Article 18 Each member shall be entitled to obtain information from the manager or managers concerning the grouping's business and to inspect the grouping's books and business records. Article 19 1. A grouping shall be managed by one or more natural persons appointed in the contract for the formation of the grouping or by decision of the members. No person may be a manager of a grouping if: — by virtue of the law applicable to him, or — by virtue of the internal law of the State in which the grouping has its official address, or — following a judicial or administrative decision made or recognized in a Member State he may not belong to the administrative or management body of a company, may not manage an undertaking or may not act as manager of a European Economic Interest Grouping. 2. A Member State may, in the case of groupings registered at their registries pursuant to Article 6, provide that legal persons may be managers on condition that such legal persons designate one or more natural persons, whose particulars shall be the subject of the filing provisions of Article 7 (d) to represent them. If a Member State exercises this option, it must provide that the representative or representatives shall be liable as if they were themselves managers of the groupings concerned. The restrictions imposed in paragraph 1 shall also apply to those representatives. 3. The contract for the formation of a grouping or, failing that, a unanimous decision by the members shall determine the conditions for the appointment and removal of the manager or managers and shall lay down their powers. Article 20 1. Only the manager or, where there are two or more, each of the managers shall represent a grouping in respect of dealings with third parties. Each of the managers shall bind the grouping as regards third parties when he acts on behalf of the grouping, even where his acts do not fall within the objects of the grouping, unless the grouping proves that the third party knew or could not, under the circumstances, have been unaware that the act fell outside the objects of the grouping; publication of the particulars referred to in Article 5 (c) shall not of itself be proof thereof. No limitation on the powers of the manager or managers, whether deriving from the contract for the formation of the grouping or from a decision by the members, may be relied on as against thrid parties even if it is published. 2. The contract for the formation of the grouping may provide that the grouping shall be validly bound only by two or more managers acting jointly. Such a clause may be relied on as against third parties in accordance with the conditions referred to in Article 9 (1) only if it is published in accordance with Article 8. Article 21 1. The profits resulting from a grouping's activities shall be deemed to be the profits of the members and shall be apportioned among them in the proportions laid down in the contract for the formation of the grouping or, in the absence of any such provision, in equal shares. 2. The members of a grouping shall contribute to the payment of the amount by which expenditure exceeds income in the proportions laid down in the contract for the formation of the grouping or, in the absence of any such provision, in equal shares. Article 22 1. Any member of a grouping may assign his participation in the grouping, or a proportion thereof, either to another member or to a third party; the assignment shall not take effect without the unanimous authorization of the other members. 2. A member of a grouping may use his participation in the grouping as security only after the other members have given their unanimous authorization, unless otherwise laid down in the contract for the formation of the grouping. The holder of the security may not at any time become a member of the grouping by virtue of that security. Article 23 No grouping may invite investment by the public. Article 24 1. The members of a grouping shall have unlimited joint and several liability for its debts and other liabilities of whatever nature. National law shall determine the consequences of such liablity. 2. Creditors may not proceed against a member for payment in respect of debts and other liabilities, in accordance with the conditions laid down in paragraph 1, before the liquidation of a grouping is concluded, unless they have first requested the grouping to pay and payment has not been made within an appropriate period. Article 25 Letters, order forms and similar documents must indicate legibly: (a) the name of the grouping preceded or followed either by the words ‘European Economic Interest Grouping’ or by the initials ‘EEIG’, unless those words or initials already occur in the name; (b) the location of the registry referred to in Article 6, in which the grouping is registered, together with the number of the grouping's entry at the registry; (c) the grouping's official address; (d) where applicable, that the managers must act jointly; (e) where applicable, that the grouping is in liquidation, pursuant to Articles 15, 31, 32 or 36. Every establishment of a grouping, when registered in accordance with Article 10, must give the above particulars, together with those relating to its own registration, on the documents referred to in the first paragraph of this Article uttered by it. Article 26 1. A decision to admit new members shall be taken unanimously by the members of the grouping. 2. Every new member shall be liable, in accordance with the conditions laid down in Article 24, for the grouping's debts and other liabilities, including those arising out of the grouping's activities before his admission. He may, however, be exempted by a clause in the contract for the formation of the grouping or in the instrument of admission from the payment of debts and other liabilities which originated before his admission. Such a clause may be relied on as against third parties, under the conditions referred to in Article 9 (1), only if it is published in accordance with Article 8. Article 27 1. A member of a grouping may withdraw in accordance with the conditions laid down in the contract for the formation of a grouping or, in the absence of such conditions, with the unanimous agreement of the other members. Any member of a grouping may, in addition, withdraw on just and proper grounds. 2. Any member of a grouping may be expelled for the reasons listed in the contract for the formation of the grouping and, in any case, if he seriously fails in his obligations or if he causes or threatens to cause serious disruption in the operation of the grouping. Such expulsion may occur only by the decision of a court to which joint application has been made by a majority of the other members, unless otherwise provided by the contract for the formation of a grouping. Article 28 1. A member of a grouping shall cease to belong to it on death or when he no longer complies with the conditions laid down in Article 4 (1). In addition, a Member State may provide, for the purposes of its liquidation, winding up, insolvency or cessation of payments laws, that a member shall cease to be a member of any grouping at the moment determined by those laws. 2. In the event of the death of a natural person who is a member of a grouping, no person may become a member in his place except under the conditions laid down in the contract for the formation of the grouping or, failing that, with the unanimous agreement of the remaining members. Article 29 As soon as a member ceases to belong to a grouping, the manager or managers must inform the other members of that fact; they must also take the steps required as listed in Articles 7 and 8. In addition, any person concerned may take those steps. Article 30 Except where the contract for the formation of a grouping provides otherwise and without prejudice to the rights acquired by a person under Articles 22 (1) or 28 (2), a grouping shall continue to exist for the remaining members after a member has ceased to belong to it, in accordance with the conditions laid down in the contract for the formation of the grouping or determined by unanimous decision of the members in question. Article 31 1. A grouping may be wound up by a decision of its members ordering its winding up. Such a decision shall be taken unanimously, unless otherwise laid down in the contract for the formation of the grouping. 2. A grouping must be wound up by a decision of its members: (a) noting the expiry of the period fixed in the contract for the formation of the grouping or the existence of any other cause for winding up provided for in the contract, or (b) noting the accomplishment of the grouping's purpose or the impossibility of pursuing it further. Where, three months after one of the situation referred to in the first subparagraph has occurred, a members' decision establishing the winding up of the grouping has not been taken, any member may petition the court to order winding up. 3. A grouping must also be wound up by a decision of its members or of the remaining member when the conditions laid down in Article 4 (2) are no longer fulfilled. 4. After a grouping has been wound up by decision of its members, the manager or managers must take the steps required as listed in Articles 7 and 8. In addition, any person concerned may take those steps. Article 32 1. On application by any person concerned or by a competent authority, in the event of the infringement of Articles 3, 12 or 31 (3), the court must order a grouping to be wound up, unless its affairs can be and are put in order before the court has delivered a substantive ruling. 2. On applications by a member, the court may order a grouping to be wound up on just and proper grounds. 3. A Member State may provide that the court may, on application by a competent authority, order the winding up of a grouping which has its official address in the State to which that authority belongs, wherever the grouping acts in contravention of that State's public interest, if the law of that State provides for such a possibility in respect of registered companies or other legal bodies subject to it. Article 33 When a member ceases to belong to a grouping for any reason other than the assignment of his rights in accordance with the conditions laid down in Article 22 (1), the value of his rights and obligations shall be determined taking into account the assets and liabilities of the grouping as they stand when he ceases to belong to it. The value of the rights and obligations of a departing member may not be fixed in advance. Article 34 Without prejudice to Article 37 (1), any member who ceases to belong to a grouping shall remain answerable, in accordance with the conditions laid down in Article 24, for the debts and other liabilities arising out of the grouping's activities before he ceased to be a member. Article 35 1. The winding up of a grouping shall entail its liquidation. 2. The liquidation of a grouping and the conclusion of its liquidation shall be governed by national law. 3. A grouping shall retain its capacity, within the meaning of Article 1 (2), until its liquidation is concluded. 4. The liquidator or liquidators shall take the steps required as listed in Articles 7 and 8. Article 36 Groupings shall be subject to national laws governing insolvency and cessation of payments. The commencement of proceedings against a grouping on grounds of its insolvency or cessation of payments shall not by itself cause the commencement of such proceedings against its members. Article 37 1. A period of limitation of five years after the publication, pursuant to Article 8, of notice of a member's ceasing to belong to a grouping shall be substituted for any longer period which may be laid down by the relevant national law for actions against that member in connection with debts and other liabilities arising out of the grouping's activities before he ceased to be a member. 2. A period of limitation of five years after the publication, pursuant to Article 8, of notice of the conclusion of the liquidation of a grouping shall be substituted for any longer period which may be laid down by the relevant national law for actions against a member of the grouping in connection with debts and other liabilities arising out of the grouping's activities. Article 38 Where a grouping carries on any activity in a Member State in contravention of that State's public interest, a competent authority of that State may prohibit that activity. Review of that competent authority's decision by a judicial authority shall be possible. Article 39 1. The Member States shall designate the registry or registries responsible for effecting the registration referred to in Articles 6 and 10 and shall lay down the rules governing registration. They shall prescribe the conditions under which the documents referred to in Articles 7 and 10 shall be filed. They shall ensure that the documents and particulars referred to in Article 8 are published in the appropriate official gazette of the Member State in which the grouping has its official address, and may prescribe the manner of publication of the documents and particulars referred to in Article 8 (c). The Member States shall also ensure that anyone may, at the appropriate registry pursuant to Article 6 or, where appropriate, Article 10, inspect the documents referred to in Article 7 and obtain, even by post, full or partial copies thereof. The Member States may provide for the payment of fees in connection with the operations referred to in the preceding subparagraphs; those fees may not, however, exceed the administrative cost thereof. 2. The Member States shall ensure that the information to be published in the Official Journal of the European Communities pursuant to Article 11 is forwarded to the Office for Official Publications of the European Communities within one month of its publication in the official gazette referred to in paragraph 1. 3. The Member States shall provide for appropriate penalties in the event of failure to comply with the provisions of Articles 7, 8 and 10 on disclosure and in the event of failure to comply with Article 25. Article 40 The profits or losses resulting from the activities of a grouping shall be taxable only in the hands of its members. Article 41 1. The Member States shall take the measures requried by virtue of Article 39 before 1 July 1989. They shall immediately communicate them to the Commission. 2. For information purposes, the Member States shall inform the Commission of the classes of natural persons, companies, firms and other legal bodies which they prohibit from participating in groupings pursuant to Article 4 (4). The Commission shall inform the other Member States. Article 42 1. Upon the adoption of this Regulation, a Contact Committee shall be set up under the auspices of the Commission. Its function shall be: (a) to facilitate, without prejudice to Articles 169 and 170 of the Treaty, application of this Regulation through regular consultation dealing in particular with practical problems arising in connection with its application; (b) to advise the Commission, if necessary, on additions or amendments to this Regulation. 2. The Contact Committee shall be composed of representatives of the Member States and representatives of the Commission. The chairman shall be a representative of the Commission. The Commission shall provide the secretariat. 3. The Contact Committee shall be convened by its chairman either on his own initiative or at the request of one of its members. Article 43 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. It shall apply from 1 July 1989, with the exception of Articles 39, 41 and 42 which shall apply as from the entry into force of the Regulation. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 25 July 1985. For the Council The President J. POOS (1) OJ No C 14, 15. 2. 1974, p. 30 and OJ No C 103, 28. 4. 1978, p. 4. (2) OJ No C 163, 11. 7. 1977, p. 17. (3) OJ No C 108, 15. 5. 1975, p. 46. (4) OJ No L 65, 14. 3. 1968, p. 8.

Summary: European Economic Interest Grouping European Economic Interest Grouping SUMMARY OF: Regulation (EEC) No 2137/85 – the European Economic Interest Grouping WHAT IS THE AIM OF THE REGULATION? It introduces a legal instrument at EU level in the form of a European Economic Interest Grouping (EEIG) designed to minimise the legal, fiscal and psychological difficulties that natural persons, companies, firms and other bodies face in cooperating across borders. KEY POINTS An EEIG must be formed in accordance with the rules described below. Purpose The purpose of the grouping is to facilitate or develop the economic activities of its members by a pooling of resources, activities or skills. This is intended to produce better results than the members acting alone. Formation An EEIG can be formed by companies, firms and other legal entities governed by public or private law which have been formed in accordance with the law of an EU country and which have their registered office in the EU. It can also be formed by individuals carrying on an industrial, commercial, craft or agricultural activity or providing professional or other services in the EU. An EEIG must have at least 2 members from different EU countries. The contract for the formation of an EEIG must include its name, its official address and objects, the name, registration number and place of registration, if any, of each member of the grouping and the duration of the grouping, except where this is indefinite. The contract must be filed at the registry designated by each EU country. Registration in this manner confers full legal capacity on the EEIG throughout the EU. An EEIG may not invite investment by the public. An EEIG does not necessarily have to be formed with capital. Members are free to use alternative means of financing. Employees An EEIG cannot employ more than 500 persons. Publication of formation and dissolution When a grouping is formed or dissolved, a notice must be published in the Official Journal of the EU. Official address A grouping’s official address must be within the EU. It may be transferred from one EU country to another subject to certain conditions. Voting rights and organs Each member of an EEIG has 1 vote, although the contract for its formation may give certain members more than 1 vote provided that no 1 member holds a majority of the votes. The regulation lists those decisions for which unanimity is required. The EEIG must have at least 2 organs: the members acting collectively and the manager or managers. The managers represent and bind the EEIG in its dealings with third parties even where their acts do not fall within the objects of the grouping. Profits It is not intended that the grouping should make profits for itself. The profits of an EEIG will be deemed to be the profits of its members and will be apportioned either according to the relevant clause in the contract or, failing such a clause, in equal shares. The profits or losses of an EEIG will be taxable only in the hands of its members. Unlimited joint and several liability As a counterweight to the contractual freedom which is at the basis of the EEIG and the fact that members are not required to provide a minimum amount of capital, each member of the EEIG has unlimited joint and several liability for its debts. BACKGROUND This regulation meets the need for the harmonious development of economic activity throughout the EU and the establishment of a single market offering conditions analogous to those of a national market. MAIN DOCUMENT Council Regulation (EEC) No 2137/85 of 25 July 1985 on the European Economic Interest Grouping (EEIG) (OJ L 199, 31.7.1985, pp. 1–9) last update 20.06.2016


EUR-Lex - 31983L0182 - EN Avis juridique important | 31983L0182 Council Directive 83/182/EEC of 28 March 1983 on tax exemptions within the Community for certain means of transport temporarily imported into one Member State from another Official Journal L 105 , 23/04/1983 P. 0059 - 0063 Finnish special edition: Chapter 9 Volume 1 P. 0112 Spanish special edition: Chapter 09 Volume 1 P. 0156 Swedish special edition: Chapter 9 Volume 1 P. 0112 Portuguese special edition Chapter 09 Volume 1 P. 0156 COUNCIL DIRECTIVE of 28 March 1983 on tax exemptions within the Community for certain means of transport temporarily imported into one Member State from another (83/182/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 99 thereof, Having regard to the proposal from the Commission (1), Having regard to the opinion of the European Parliament (2), Having regard to the opinion of the Economic and Social Committee (3), Whereas the freedom of movement of Community residents within the Community is hampered by the taxation arrangements applied to the temporary importation of certain means of transport for private or business use; Whereas the elimination of the obstacles resulting from these taxation arrangements is particularly necessary if an economic market having features similar to those of a domestic market is to be established; Whereas it must be possible in certain cases to establish definitely whether or not a person is in fact resident in a given Member State; Whereas it appears desirable in a first stage to limit the scope of this Directive concerning certain means of transport to those acquired or imported in accordance with the general conditions of taxation in force on the domestic market of a Member State. HAS ADOPTED THIS DIRECTIVE: Article 1 Scope 1. Member States shall, under the conditions laid down below, exempt temporary imports from another Member State of motor-driven road vehicles (including their trailers), caravans, pleasure boats, private aircraft, bicycles, tricycles and saddle-horses from: - turnover tax, excise duties and any other consumption tax, - the taxes listed in the Annex hereto. 2. The exemption referred to in paragraph 1 shall also apply to the normal spare parts, accessories and equipment imported with these means of transport. 3. Commercial vehicles shall be excluded from the exemption referred to in paragraph 1. 4. (a) The scope of this Directive shall not extend to the temporary importation of private vehicles, caravans, pleasure boats, private aircraft, bicycles and tricycles for private use which have not been acquired or imported in accordance with the general conditions of taxation in force on the domestic market of a Member State and/or which are subject by reason of their exportation to any exemption from or refund of turnover tax, excise duty or any other consumption tax. For the purposes of this Directive, means of transport acquired under the conditions referred to in Article 15 (10) of Directive 77/388/EEC (4) shall be deemed to have satisfied the general conditions of taxation in force on the domestic market of a Member State ; however, Member States may deem means of transport acquired under the conditions referred to in the third indent of the said point 10 not to have satisfied these conditions. (b) The Council, acting unanimously on a proposal from the Commission, shall, before 31 December 1985, adopt Community rules on the grant of exemption to the means of transport referred to in the first paragraph of (a) above, taking into account the need to avoid cases of double taxation and the need to ensure normal, full taxation of means of transport for private use. (1) OJ No C 267, 21.11.1975, p. 8. (2) OJ No C 53, 8.3.1976, p. 37. (3) OJ No C 131, 12.6.1976, p. 50. (4) OJ No L 145, 13.6.1977, p. 1. Article 2 Definitions For the purpose of this Directive: (a) "commercial vehicle" means any road vehicle which, by its design or equipment, is suitable for and intended for transporting, whether for payment or not: - more than nine persons, including the driver, - goods, as well as any road vehicle for special use other than transport as such; (b) "private vehicle" means any road vehicle, including its trailer, if any, other than those referred to in subparagraph (a); (c) "business use" of a means of transport means the use thereof in the direct exercise of an activity carried out for consideration or financial gain; (d) "private use" means any use other than business use. Article 3 Temporary importation of certain means of transport for private use Where a private vehicle, caravan, pleasure boat, private aircraft, tricycle or bicycle is imported temporarily, the item imported shall be exempt from the taxes specified in Article 1 for a period, continuous or otherwise, of not more than six months in any 12 months, provided that: (a) the individual importing such goods: (aa) has his normal residence in a Member State other than the Member State of temporary importation; (bb) employs the means of transport in question for his private use; (b) the said means of transport is not disposed of or hired out in the Member State of temporary importation or lent to a resident of that State. However, private vehicles belonging to a car-hire firm having its head office in the Community may be re-hired to non-residents with a view to being re-exported, if they are in the country as a result of a hire contract which ended in that country. They may also be returned by an employee of the car-hire firm to the Member State where they were originally hired, even if such employee is resident in the Member State of temporary importation. Article 4 Temporary importation of private vehicles for business use 1. A private vehicle imported temporarily for business use shall be exempt from the taxes specified in Article 1, provided that: (a) the individual importing the private vehicle: (aa) has his normal residence in a Member State other than the Member State of temporary importation; (bb) does not use the vehicle within the Member State of temporary importation in order to carry passengers for hire or material reward of any kind, or for the industrial and/or commercial transport of goods, whether for reward or not; (b) the private vehicle is not disposed of, hired out or lent in the Member State of temporary importation; (c) the private vehicle has been acquired or imported in accordance with the general conditions of taxation in force on the domestic market of the Member State of normal residence of the user and is not subject by reason of its exportation to any exemption from or refund of turnover tax, excise duty or any other consumption tax. This condition shall be presumed to be satisfied if the private vehicle bears a standard registration plate of the Member State of registration, all types of temporary plate being excluded. However, in the case of private vehicles registered in a Member State where the issue of standard registration plates is not conditional upon compliance with the general conditions of taxation in force on the domestic market, users shall be required to produce any appropriate evidence as proof of payment of consumption taxes. 2. The exemption provided for in paragraph 1 shall apply for a period, whether continuous or not, of: - seven months in any 12, in the case of private vehicles imported by one of the commercial intermediaries referred to in Article 3 of Directive 64/224/EEC (1), - six months in any 12 in all other cases. Article 5 Specific cases of temporary importation of private vehicles 1. Private vehicles imported temporarily shall be exempt from the taxes referred to in Article 1 in the following cases: (a) where a private vehicle registered in the country of normal residence of the user is used regularly for the journey from his residence to his place of work in an undertaking in the territory of another Member State, and vice versa. Exemptions under this head shall not be subject to any time limit; (b) where a student uses a private vehicle registered in the Member State of his normal residence in the territory of another Member State in which the student is residing for the sole purpose of pursuing his studies. 2. Grant of the exemptions provided for in paragraph 1 shall be subject to the sole condition that the provisions of Article 4 (1) (a), (b) and (c) are satisfied. Article 6 Exemption for the temporary importation of saddle-horses on horse-riding excursions Saddle-horses imported temporarily into a Member State shall be exempt for three months from the taxes specified in Article 1, provided that: (a) the said horses enter the territory of the Member State of temporary importation for the purposes of and/or in the course of horse-riding excursions by their riders. Member States may exclude from this exemption the importation by their residents of horses carried on board means of transport; (b) exemption is requested not later than the time of entry into the territory of the Member State of temporary importation. Where exemption is requested before temporary importation, the rider may be exempted from the requirement to enter the territory of the Member State of temporary importation via a frontier post; (c) the said horses are not hired out, lent, or disposed of to a third party in the Member State of temporary importation, or used for purposes other than that of the excursion. Article 7 General rules for determining residence 1. For the purposes of this Directive, "normal residence" means the place where a person usually lives, that is for at least 185 days in each calendar year, because of personal and occupational ties, or, in the case of a person with no occupational ties because of personal ties which show close links between that person and the place where he is living. However, the normal residence of a person whose occupational ties are in a different place from his personal ties and who consequently lives in turn in different places situated in two or more Member States shall be regarded as being the place of his personal ties, provided that such person returns there regularly. This last condition need not be met where the person is living in a Member State in order to carry out a task of a definite duration. Attendance at a university or school shall not imply transfer of normal residence. 2. Individuals shall give proof of their place of normal residence by any appropriate means, such as their identity card or any other valid document. 3. Where the competent authorities of the Member State of importation have doubts as to the validity of a statement as to normal residence made in accordance with paragraph 2, or for the purpose of certain specific controls, they may request any additional information or evidence. Article 8 Supplementary rules for determination of residence in the case of business use of a private vehicle In exceptional cases where, despite the supply of the additional information referred to in Article 7 (3) to the competent authorities of the Member State of importation, serious doubts still remain, temporary importation of a private vehicle for business use may be made conditional upon payment of a security. However, when the user of the vehicle produces evidence that he has his normal residence in another (1) OJ No 56, 4.4.1964, p. 869/64. Member State, the authorities of the Member State of temporary importation shall refund the security within two months following the date on which the evidence is produced. Article 9 Special arrangements 1. Member States may maintain and/or introduce more liberal arrangements than those provided for in this Directive. In particular, they may, at the request of the importer, permit temporary importation for a period longer than those referred to in Articles 3 and 4 (2). In the latter event, Member States may levy the taxes mentioned in the Annex for periods exceeding those laid down by this Directive. Member States may also permit the private vehicles referred to in the second sentence of Article 3 (b) to be re-hired to a resident of the Member State of importation with a view to their re-exportation. 2. Member States may under no circumstances apply, in pursuance of this Directive, tax exemptions within the Community which are less favourable than those which they would grant in respect of means of transport originating in a third country. 3. The Kingdom of Denmark is authorized to maintain the rules applying in that country in connection with normal residence according to which any person, including a student, in respect of the case referred to in Article 5 (1) (b), is regarded as having his normal residence in Denmark if he lives there for a year or 365 days in a period of 24 months. However, to avoid double taxation: - where, as a result of the application of these rules, a person is considered to have two residences, the normal residence of that person is situated where his spouse and children live, - in similar cases, the Kingdom of Denmark shall consult with the other Member State concerned to decide which of the two residences should be used for the purposes of taxation. Before a period of three years has elapsed, the Council, on the basis of a report by the Commission, will re-examine the derogation covered by this paragraph and, if necessary, will adopt measures, on a proposal from the Commission based on Article 99 of the Treaty, to ensure the abolition of the derogation. 4. Member States shall inform the Commission of the arrangements referred to in paragraph 1 at the same time as they fulfil the obligations laid down in Article 10. The Commission shall subsequently communicate these arrangements to the other Member States. Article 10 Final provisions 1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 1 January 1984. They shall forthwith inform the Commission thereof. 2. Where the practical application of this Directive gives rise to difficulties, the competent authorities of the Member States concerned shall take the necessary decisions by mutual agreement, particularly in the light of the Conventions and Community Directives on mutual assistance. 3. Member States shall see to it that they communicate to the Commission the texts of the main subsequent provisions of national law which they adopt in the field governed by this Directive. 4. Every two years the Commission shall, after consulting the Member States, submit to the Council and the European Parliament a report on the application of this Directive in the Member States, with particular reference to the concept of "normal residence", and shall propose the necessary Community provisions to bring about the establishment of a uniform system in all the Member States. Article 11 This Directive is addressed to the Member States. Done at Brussels, 28 March 1983. For the Council The President J. ERTL ANNEX List of taxes referred to in the second indent of Article 1(1) BELGIUM - Taxe de circulation sur les véhicules automobiles (Arrêté royal du 23 novembre 1965 portant codification des dispositions légales relatives aux taxes assimilées aux impôts sur les revenus - Moniteur belge du 18 janvier 1966) - Verkeersbelasting op de autovoertuigen (Koninklijk Besluit van 23 november 1965 houdende codificatie van de wettelijke bepalingen betreffende de met de inkomstenbelastingen gelijkgestelde belastingen - Belgisch Staatsblad van 18 januari 1966) DENMARK - Vægtafgift af motorkøretøjer (Bekendtgørelse Nr. 658 af 28. december 1977) FEDERAL REPUBLIC OF GERMANY - Kraftfahrzeugsteuer (Kraftfahrzeugsteuergesetz - 1979) Kraftfahrzeugsteuer (Durchführungsverordnung - 1979) GREECE >PIC FILE= "T0023050"> FRANCE - Taxe différentielle sur les véhicules à moteur (Loi n° 77-1467 du 30 décembre 1977) - Taxe sur les véhicules d'une puissance fiscale supérieure à 16 CV immatriculés dans la catégorie des voitures particulières (Loi de finances 1979 - Article 1007 du code général des impôts IRELAND - Motor vehicle excise duties (Finance (Excise Duties) (Vehicles) Act 1952 as amended, and Section 94, Finance Act 1973 as amended) ITALY - Tassa sulla circolazione degli autoveicoli (TU delle leggi sulle tasse automobilistiche approvato con DPR n. 39 del 5 febbraio 1953 e successive modificazioni) LUXEMBOURG - Taxe sur les véhicules automoteurs Loi allemande du 23 mars 1935 (Kraftfahrzeugsteuergesetz) maintenue en vigueur par l'arrêté grand-ducal du 26 octobre 1944, modifiée par la loi du 4 août 1975 et les règlements grand-ducaux du 15 septembre 1975 et du 31 octobre 1975 NETHERLANDS - Motorrijtuigenbelasting (wet op de motorrijtuigenbelasting 21 juli 1966, Stb 332 - wet van 18 december 1969/Stb 548) UNITED KINGDOM - Vehicle excise duty (Vehicles (Excise) Act 1971)

Summary: Tax-free allowances: temporary importation of certain means of transport Tax-free allowances: temporary importation of certain means of transport SUMMARY OF: Directive 83/182/EEC on tax exemptions within the EU for certain means of transport temporarily imported into one EU country from another WHAT IS THE AIM OF THE DIRECTIVE? It aims to eliminate tax obstacles to the temporary importation of certain means of transport within the EU by harmonising national tax arrangements. KEY POINTS The directive exempts from turnover tax, excise duties, any other consumption tax and the taxes listed in the directive’s annex when the following are temporarily imported from another EU country: various means of transport acquired or imported in accordance with the general conditions of taxation in force on the domestic market of an EU country:motor-driven road vehicles (including their trailers)caravanspleasure boatsprivate aircraftbicyclestricyclessaddle-horses on horse-riding excursions normal spare parts, accessories and equipment imported with those means of transport. As a general rule, the temporary importation of these means of transport for private use is exempt from taxes — provided that the individual importing it is normally resident in a country other than the country of import — for at least 6 in any 12 months. Commercial vehicles (goods vehicles, vehicles intended to transport more than 9 passengers) are excluded from the exemption. The means of transport may not be disposed of, hired out or lent in the EU country of temporary importation. In exceptional cases, the temporary importation of a private vehicle for business use may be made conditional upon payment of a security. There are specific rules relating to certain cases of temporary importation of private vehicles: these concern individuals working or studying in an EU country other than that of their normal residence. EU countries are permitted to maintain or introduce more liberal exemption arrangements than those provided for in the directive. The directive has been updated on several occasions to take account of the EU’s enlargement to include more countries. FROM WHEN DOES THE DIRECTIVE APPLY? It has applied since 31 March 1983 and had to become law in the EU countries by 1 January 1984. MAIN DOCUMENT Council Directive 83/182/EEC of 28 March 1983 on tax exemptions within the Community for certain means of transport temporarily imported into one Member State from another (OJ L 105, 23.4.1983, pp. 59-63) Successive amendments to Directive 83/182/EEC have been incorporated in the original text. This consolidated version is of documentary value only. last update 08.11.2018