In recent months, the business has repeatedly directed the attention of the state administration to the effect of the changes in the Law on Excises and Tax Warehouses, the Regulations for its implementation and Ordinance No. 3/ 19.02.2010. have an effect on the activities of the companies producing and trading in fuels.
In order to improve the control and collection of excise taxes, some measures were introduced in the state budget in relation to fuel trade - for example, the obligation to receive and unload the purchased goods at a certain site, a requirement to introduce expensive measuring equipment, etc. In this way, the functionality of the existing trade schemes was disrupted and the turnover of goods was restricted. Regulatory acts obliged businesses to make unreasonably large investments.
The measures thus introduced (specifically with regard to registered recipients) have no analogue at the European level. According to Directive 2008/118/ EC of December 16, 2008. only goods under deferred payment of excise duty are subject to special control (i.e. only goods for which no excise duty has been paid) and in this sense, the newly introduced legal norms do not represent a transposition of European legislation.
The by-laws on the implementation of the ZADS (e.g. Ordinance No. 3 on measuring devices) prescribes certain unenforceable obligations. In unrealistically short and accordingly unfeasible business terms, in a period of global economic crisis, large-scale investments in control systems with unclear technical parameters that do not guarantee better collection in the budget are assigned. The entities undertake to create and even duplicate electronic systems for submitting information to the Customs Agency without these systems meeting the real needs of the state and business.
The legal basis of Ordinance No. 3 is Art. 103a of the ZADS, which comprehensively defines the field of application. It should be noted, however, that some legal norms of the by-law contradict the Law. The version of Ordinance No. 3 that has entered into force exceeds the scope prescribed in Art. 103a ZADS, as: it regulates control functions; additional requirements are unlawfully introduced to the persons whose activity is subject to registration and monitoring under ZADS. The above is a prerequisite for creating an environment of inequality between producers, artificially reducing competitiveness, provoking conditions for administrative arbitrariness and an unfavorable legislative environment for business.
We believe that Ordinance No. 3 was drafted in ignorance of the basic rules of the technological process and the observance of good production practices in sectors such as oil and gas, wine-growing, brewing. We are categorical in our assertion that the by-law creates significant difficulties for the industries, requiring significant investments, without the capital investments being aimed at improving quality, reducing abuses and stabilizing the market.
ZADS and the Rules for its implementation also create obstacles in the state aid procedure for fuels with a content of between 4% and 5% biocomponent, approved by the European Commission (EC). The decision of the EC refers to the national legislation and in particular to the Law on renewable energy and alternative sources (ZVAEIB) fuels and ZADS. Combined with the two laws, it creates an extremely complicated procedure(inconsistent with the changes in ZVAEIB), which apart from practical problems for the business (on the use of state aid), will also lead to non-fulfillment by the Republic of Bulgaria of the indicative targets for reducing greenhouse gas emissions.
In accordance with the principles and fundamental freedoms provided for in EU law, the measures that Member States may introduce with a view to preventing abuse and ensuring the collection of duties due should not exceed what is reasonably necessary in view of their purpose.
In order to find the necessary balance between securing the fiscal interest and that of the business, we suggest that the introduction of some reliefs and opportunities be considered. Specifically, the proposals that KRIB offers for discussion include:
– The initiation of changes in ZADS, Ordinance No. 3 (according to which the director of the "Customs" Agency has an obligation to convene a permanent working group);
- Providing for the possibility for the persons registered under the law (licensed warehouse keepers and registered consignees) to provide a general bank guarantee for all licensed/registered sites;
- Provision for the possibility for the registered recipients to receive the goods in places that are not their own or rented, providing more flexible options for proving the amount of goods received (removing the requirement that each received delivery must be unloaded at the registered facility);
- Providing for the possibility for registered recipients to be exempted from the excise tax obligation for the natural losses of fuel as a result of the fulfillment of the obligation to unload at the site;
– Providing for simplified administration of fuel blending operations with biofuel;
- The development of an annex/new notification to the EC for biofuels.
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