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Products consisting in whole or in part of substances other than tobacco but otherwise conforming to the criteria set out in Article 3 or Article 5(1) shall be treated as cigarettes and smoking tobacco.
Notwithstanding the first subparagraph, products containing no tobacco and used exclusively for medical purposes shall not be treated as manufactured tobacco.

Notwithstanding existing Union provisions, the definitions referred to in paragraph 2 of this Article and Articles 3, 4 and 5 shall be without prejudice to the choice of system or the level of taxation which shall apply to the different groups of products referred to in these Articles.

A roll of tobacco referred to in paragraph 1 shall, for excise duty purposes, be considered as two cigarettes where, excluding filter or mouthpiece, it is longer than 8 cm but not longer than 11 cm, as three cigarettes where, excluding filter or mouthpiece, it is longer than 11 cm but not longer than 14 cm, and so on.

By way of derogation from paragraph 1, the following subparagraph may continue to be applied by Germany and Hungary until 31 December 2014.
The following shall be deemed to be cigars or cigarillos if they can be smoked as they are:

rolls of tobacco made entirely of natural tobacco;

rolls of tobacco with an outer wrapper of natural tobacco;

rolls of tobacco with a threshed blend filler and with an outer wrapper of the normal colour of a cigar covering the product in full, including, where appropriate, the filter but not, in the case of tipped cigars, the tip, and a binder, both being of reconstituted tobacco, where the unit weight, not including filter or mouthpiece, is not less than 1,2 g and where the wrapper is fitted in spiral form with an acute angle of at least 30° to the longitudinal axis of the cigar;

rolls of tobacco with a threshed blend filler and with an outer wrapper of the normal colour of a cigar, of reconstituted tobacco, covering the product in full, including where appropriate the filter but not, in the case of tipped cigars, the tip, where the unit weight, not including filter or mouth-piece, is not less than 2,3 g and the circumference over at least one third of the length is not less than 34 mm.

Products which consist in part of substances other than tobacco but otherwise fulfil the criteria set out in paragraph 1 shall be treated as cigars and cigarillos.

Smoking tobacco in which more than 25 % by weight of the tobacco particles have a cut width of less than 1,5 millimetre shall be deemed to be fine-cut tobacco for the rolling of cigarettes.
Member States may also deem smoking tobacco in which more than 25 % by weight of the tobacco particles have a cut width of 1,5 millimetre or more and which was sold or intended to be sold for the rolling of cigarettes to be fine-cut tobacco for the rolling of cigarettes.

The rate of the ad valorem excise duty and the amount of the specific excise duty must be the same for all cigarettes. ad valorem

At the final stage of harmonisation of structures, the same ratio shall be established for cigarettes in all Member States between the specific excise duty and the sum of the ad valorem excise duty and the turnover tax, in such a way that the range of retail selling prices reflects fairly the difference in the manufacturers’ delivery prices. ad valorem

Where necessary, the excise duty on cigarettes may include a minimum tax component, provided that the mixed structure of taxation and the band of the specific component of the excise duty as laid down in Article 8 is strictly respected.

The weighted average retail selling price shall be calculated by reference to the total value of all cigarettes released for consumption, based on the retail selling price including all taxes, divided by the total quantity of cigarettes released for consumption. It shall be determined by 1 March at the latest of each year on the basis of data relating to all such releases for consumption made in the preceding calendar year.

Until 31 December 2013, the specific component of the excise duty shall not be less than 5 % and shall not be more than 76,5 % of the amount of the total tax burden resulting from the aggregation of the following:

specific excise duty;

the ad valorem excise duty and the value added tax (VAT) levied on the weighted average retail selling price.

From 1 January 2014, the specific component of the excise duty on cigarettes shall not be less than 7,5 % and shall not be more than 76,5 % of the amount of the total tax burden resulting from the aggregation of the following:

specific excise duty;

the ad valorem excise duty and the VAT levied on the weighted average retail selling price.

By way of derogation from paragraphs 3 and 4, where a change in the weighted average retail selling price of cigarettes occurs in a Member State, thereby bringing the specific component of the excise duty, expressed as a percentage of the total tax burden, below the percentage of 5 % or 7,5 %, whichever is applicable, or above the percentage of 76,5 % of the total tax burden, the Member State concerned may refrain from adjusting the amount of the specific excise duty until 1 January of the second year following that in which the change occurs.

Subject to paragraphs 3, 4 and 5 of this Article and the second subparagraph of Article 7(1), Member States may levy a minimum excise duty on cigarettes.

Paragraph 1 shall apply to the taxes which, pursuant to this Chapter, are levied on cigarettes and which comprise:

a specific excise duty per unit of the product;

an ad valorem excise duty calculated on the basis of the maximum retail selling price;

a VAT proportional to the retail selling price.

From 1 January 2014, the overall excise duty on cigarettes shall represent at least 60 % of the weighted average retail selling price of cigarettes released for consumption. That excise duty shall not be less than EUR 90 per 1 000 cigarettes irrespective of the weighted average retail selling price.
However, Member States which levy an excise duty of at least EUR 115 per 1 000 cigarettes on the basis of the weighted average retail selling price need not to comply with the 60 % requirement set out in the first subparagraph.
Bulgaria, Estonia, Greece, Latvia, Lithuania, Hungary, Poland and Romania shall be allowed a transitional period until 31 December 2017 in order to reach the requirements laid down in the first and second subparagraphs.

Member States shall gradually increase excise duties in order to reach the requirements referred to in paragraph 2 on the dates set therein.

Where a Member State increases the rate of VAT on cigarettes, it may reduce the overall excise duty up to an amount which, expressed as a percentage of the weighted average retail selling price, is equal to the increase in the rate of VAT, also expressed as a percentage of the weighted average retail selling price, even if such an adjustment has the effect of reducing the overall excise duty to below the levels, expressed as a percentage of the weighted average retail selling price, laid down in the first sentence of paragraph 1 and in the first sentence of paragraph 2 of Article 10 respectively.
However, the Member State shall raise that duty again so as to reach at least those levels by 1 January of the second year after that in which the reduction took place.

By way of derogation from Article 10, France may continue to apply for the period from 1 January 2010 to 31 December 2015 a reduced rate of excise duty to cigarettes released for consumption in the departments of Corsica up to an annual quota of 1 200 tonnes. The reduced rate shall be:

until 31 December 2012, at least 44 % of the price for cigarettes in the price category most in demand in those departments;

from 1 January 2013, at least 50 % of the weighted average retail selling price of cigarettes released for consumption; the excise duty shall not be less than EUR 88 per 1 000 cigarettes irrespective of the weighted average retail selling price;

from 1 January 2015, at least 57 % of the weighted average retail selling price of cigarettes released for consumption; the excise duty shall not be less than EUR 90 per 1 000 cigarettes irrespective of the weighted average retail selling price.

cigars and cigarillos;

fine-cut tobacco intended for the rolling of cigarettes;

other smoking tobaccos.

The overall excise duty (specific duty and/or ad valorem duty excluding VAT), expressed as a percentage, as an amount per kilogram or for a given number of items, shall be at least equivalent to the rates or minimum amounts laid down for: ad valorem
(a) cigars or cigarillos : 5 % of the retail selling price inclusive of all taxes or EUR 12 per 1 000 items or per kilogram; cigars or cigarillos
(b) fine-cut smoking tobacco intended for the rolling of cigarettes : 40 % of the weighted average retail selling price of fine-cut smoking tobacco intended for the rolling of cigarettes released for consumption, or EUR 40 per kilogram; fine-cut smoking tobacco intended for the rolling of cigarettes
(c) other smoking tobaccos : 20 % of the retail selling price inclusive of all taxes, or EUR 22 per kilogram. other smoking tobaccos
From 1 January 2013, the overall excise duty on fine-cut smoking tobacco intended for the rolling of cigarettes shall represent at least 43 % of the weighted average retail selling price of fine-cut smoking tobacco intended for the rolling of cigarettes released for consumption, or at least EUR 47 per kilogram.
From 1 January 2015 the overall excise duty on fine-cut smoking tobacco intended for the rolling of cigarettes shall represent at least 46 % of the weighted average retail selling price of fine-cut smoking tobacco intended for the rolling of cigarettes released for consumption, or at least EUR 54 per kilogram.
From 1 January 2018, the overall excise duty on fine-cut smoking tobacco intended for the rolling of cigarettes shall represent at least 48 % of the weighted average retail selling price of fine-cut smoking tobacco intended for the rolling of cigarettes released for consumption, or at least EUR 60 per kilogram.
From 1 January 2020, the overall excise duty on fine-cut smoking tobacco intended for the rolling of cigarettes shall represent at least 50 % of the weighted average retail selling price of fine-cut smoking tobacco intended for the rolling of cigarettes released for consumption, or at least EUR 60 per kilogram.
The weighted average retail selling price shall be calculated by reference to the total value of fine-cut smoking tobacco intended for the rolling of cigarettes released for consumption, based on retail selling price including all taxes, divided by the total quantity of fine-cut smoking tobacco intended for the rolling of cigarettes released for consumption. It shall be determined by 1 March at the latest of each year on the basis of data relating to all such releases for consumption made in the preceding calendar year.

The rates or amounts referred to in paragraphs 1 and 2 shall be effective for all products belonging to the group of manufactured tobaccos concerned, without distinction within each group as to quality, presentation, origin of the products, the materials used, the characteristics of the firms involved or any other criterion.

By way of derogation from paragraphs 1 and 2, France may continue to apply, for the period from 1 January 2010 to 31 December 2015, a reduced rate of excise duty to manufactured tobacco other than cigarettes released for consumption in the departments of Corsica. The reduced rate shall be:
(a) for cigars and cigarillos : at least 10 % of the retail selling price, inclusive of all taxes; for cigars and cigarillos
(b) for fine-cut smoking tobacco intended for the rolling of cigarettes : for fine-cut smoking tobacco intended for the rolling of cigarettes

until 31 December 2012, at least 27 % of the retail selling price, inclusive of all taxes;

from 1 January 2013, at least 30 % of the retail selling price, inclusive of all taxes;

from 1 January 2015, at least 35 % of the retail selling price, inclusive of all taxes;

(c) for other smoking tobacco : at least 22 % of the retail selling price, inclusive of all taxes. for other smoking tobacco

In order to facilitate the levying of the excise duty, Member States may, for each group of manufactured tobacco, fix a scale of retail selling prices on condition that each scale has sufficient scope and variety to correspond in fact with the variety of products originating in the Union.
Each scale shall be valid for all the products belonging to the group of manufactured tobacco which it concerns, without distinction on the basis of quality, presentation, the origin of the products or of the materials used, the characteristics of the undertakings or of any other criterion.

Importers and Union manufacturers of manufactured tobacco shall be subject to the system set out in paragraph 1 as regards the detailed rules for levying and paying the excise duty.

denatured manufactured tobacco used for industrial or horticultural purposes;

manufactured tobacco which is destroyed under administrative supervision;

manufactured tobacco which is solely intended for scientific tests and for tests connected with product quality;

manufactured tobacco which is reworked by the producer.

Member States shall determine the conditions and formalities to which the abovementioned exemptions or refunds are subject.

Member States may maintain the amounts of the excise duties in force at the time of the annual adjustment provided for in paragraph 1 if the conversion of the amounts of the excise duties expressed in euro would result in an increase of less than 5 % or less than EUR 5, whichever is the lower amount, in the excise duty expressed in national currency.

The report referred to in paragraph 1 shall be based in particular on the information provided by the Member States.

The Commission shall, in accordance with the procedure referred to in Article 43 of Council GAEDD ( 5 ) , determine a list of statistical data needed for the report, excluding data relating to individual natural persons or legal entities. Apart from data readily available to Member States, the list shall only contain data the collection and assembly of which does not involve a disproportionate administrative burden on the part of the Member States.

The Commission shall not publish or otherwise divulge data where it would lead to the disclosure of a commercial, industrial or professional secret.

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PART B

Time-limit for transposition Date of application

31 December 1992 —

31 December 1992 —

— —

1 January 1999 1 January 1999

1 July 2002 ( 1 ) —

1 January 2004 —

31 December 2010 1 January 2011

( 1 ) By way of derogation from the date set in Article 4(1) of Directive 2002/10:

the Federal Republic of Germany shall be authorised to bring into force the provisions necessary to comply with Article 3(1) of Directive 2002/10 by 1 January 2008 at the latest;

the Kingdom of Spain and the Hellenic Republic shall be authorised to bring into force the provisions necessary to comply with Article 1(1) of Directive 2002/10/EC (with regard to Article 2(1), second sentence, of Directive 92/79/EEC) by 1 January 2008 at the latest.

Directive 92/80/EEC Directive 95/59/EC This Directive

— Article 1(1) and (2) Article 1

— Article 1(3) —

— Article 2(1), introductory phrase Article 2(1), introductory phrase

— Article 2(1)(a) and (b) Article 2(1)(a) and (b)

— Article 2(1)(c), first indent Article 2(1)(c)(i)

— Article 2(1)(c), second indent Article 2(1)(c)(ii)

— Article 2(1), final words —

— Article 2(2) —

— Article 7(2) Article 2(2)

— Article 2(3) Article 2(3)

— Article 4(1), first subparagraph Article 3(1)

— Article 4(1), second subparagraph —

— Article 4(2) Article 3(2)

— Article 3(1) Article 4(1)

— Article 3(2) Article 4(2)

— Article 7(1) Article 4(3)

— Article 5, introductory phrase Article 5(1), introductory phrase

— Article 5(1) Article 5(1)(a)

— Article 5(2) Article 5(1)(b)

— Article 6, first paragraph Article 5(2), first subparagraph

— Article 6, second paragraph Article 5(2), second subparagraph

— Article 9(1), first subparagraph Article 6

— Article 8(1) Article 7(1), first subparagraph

— Article 16(6) Article 7(1), second subparagraph

— Article 8(2), (3) and (4) Article 7(2), (3) and (4)

— Article 16(1) to (5) Article 8(1) to (5)

— Article 16(7) Article 8(6)

— — Article 9

— — Article 10(1) and (2)

— — —

— — Article 10(3)

— — Article 11

— — —

— — Article 12(1)

— — —

— — Article 12(2)

Article 1 — Article 13

Article 2 — —

Article 3(1), first and second subparagraph — Article 14(1)

Article 3(1), third subparagraph, introductory sentence — Article 14(2), first subparagraph, introductory sentence

Article 3(1), third subparagraph, first, second and third indent — —

Article 3(1), fourth and fifth subparagraph — —

Article 3(1), sixth subparagraph, introductory sentence — —

Article 3(1), sixth subparagraph, points (a), (b) and (c) — Article 14(2), first subparagraph, points (a), (b) and (c)

Article 3(1), seventh subparagraph — —

Article 3(1), eighth subparagraph — —

Article 3(1), ninth subparagraph — Article 14(2), second subparagraph

Article 3(1), tenth subparagraph — Article 14(2), third subparagraph

Article 3(1), eleventh subparagraph — Article 14(2), fourth subparagraph

Article 3(1), twelfth subparagraph — Article 14(2), fifth subparagraph

Article 3(1), thirteenth subparagraph — Article 14(2), sixth subparagraph

Article 3(1), fourteenth subparagraph — —

Article 3(2) — Article 14(3)

Article 3(3) — —

Article 3(4) — Article 14(4)

— Article 9(1), second subparagraph Article 15(1), first subparagraph

— Article 9(1), third subparagraph Article 15(1), second subparagraph

— Article 9(2), first sentence Article 15(2), first subparagraph

— Article 9(2), second sentence Article 15(2), second subparagraph

— Article 10 Article 16

— Article 11 Article 17

— Article 12 —

— Article 13 —

— Article 14 —

— Article 15 —

Article 5(1) — Article 18(1)

Article 5(2) — Article 18(2)

Article 4 — Article 19

Article 6(1) — —

Article 6(2) Article 18 Article 20

— Article 19(1) Article 21, first paragraph

— Article 19(2) Article 21, second paragraph

— Article 20 Article 22

Article 7 Article 21 Article 23

— Annex I —

— Annex II —

— — Annex I

— — Annex II