Havel & Partners Secures EU Win for Aroco in Excise Duty Case

"Havel & Partners represented Aroco before the EU courts in a dispute over excise duty exemption on ethyl alcohol in flavourings intended for foodstuffs and non‑alcoholic beverages. The General Court held that the exemption depends on the products' intended purpose under Article 27(1)(e) of Council Directive 92/83/EEC, not on proof of actual end‑use; the case returns to the Czech Supreme Administrative Court."

Havel & Partners represented Aroco in proceedings before the General Court of the European Union concerning exemption from excise duty on ethyl alcohol contained in flavourings intended for foodstuffs and non‑alcoholic beverages. The dispute arose from ethyl‑alcohol flavourings sold in miniature bottles both directly to consumers and through retail chains. Aroco, a manufacturer of fragrances, flavours and food colourants, sought exemption under Article 27(1)(e) of Council Directive 92/83/EEC. The Czech Customs Administration, and subsequently the Prague Municipal Court, denied the exemption in cases where retailers merely resold the products on the grounds that proof of actual use had not been provided. Following a reference from the Czech Supreme Administrative Court, the General Court agreed with Havel & Partners' interpretation that conditioning the exemption on demonstrable end‑use contradicts the directive; the decisive criterion is the products' intended purpose rather than proof of actual use. The matter has been remitted to the Supreme Administrative Court for disposition in accordance with the EU ruling. Havel & Partners represented Aroco with a team composed by: Managing Associate Martin Pecha.

Havel & Partners Secures EU Win for Aroco in Excise Duty Case

Read the full story

Cookie Preferences

Strictly Necessary

Analytics & Statistics

Marketing & Ads