L 176/24 Official Journal of the European Union 5.7.2011 DIRECTIVES COUNCIL DIRECTIVE 2011/64/EU of 21 June 2011 on the structure and rates of excise duty applied to manufactured tobacco (codification) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 113 thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Having regard to the opinion of the European Parliament, Having regard to the opinion of the European Economic and Social Committee, Acting in accordance with a special legislative procedure, Whereas: (1) ( ( ( ( 1 2 3 4 ) ) ) ) 0] 0] 0] Council Directives 92/79/EEC of 19 October 1992 on the approximation of taxes on cigarettes (), 92/80/EEC of 19 October 1992 on the approximation of taxes on manufactured tobacco other than cigarettes (3 and 95/59/EC of 27 November 1995 on taxes other than turnover taxes which affect the consumption of manu- factured tobacco (}) have been substantially amended several times (¥). In the interests of clarity and rationality the said Directives should be codified by assembling them in a single act. The Union’s fiscal legislation on tobacco products needs to ensure the proper functioning of the internal market and, at the same time, a high level of health protection, as required by Article 168 of the Treaty on the Func- tioning of the European Union, bearing in mind that tobacco products can cause serious harm to health and that the Union is Party to the World Health Organ- ization’s Framework Convention on Tobacco Control (FCTC). Account should be taken of the situation prevailing for each of the various types of manufactured tobacco. L 316, 31.10.1992, p. 8. L 316, 31.10.1992, p. 10. L 291, 6.12.1995, p. 40. See Annex I, Part A. G) One of the objectives of the Treaty on European Union is to maintain an economic union, whose characteristics are similar to those of a domestic market, within which there is healthy competition. As regards manufactured tobacco, achievement of this aim presupposes that the application in the Member States of taxes affecting the consumption of products in this sector does not distort conditions of competition and does not impede their free movement within the Union. The various types of manufactured tobacco, distinguished by their characteristics and by the way in which they are used, should be defined. A distinction needs to be made between fine-cut tobacco for the rolling of cigarettes and other smoking tobacco. Rolls of tobacco capable of being smoked as they are after simple handling should also be deemed to be ciga- rettes for the purposes of uniform taxation of these products. A manufacturer needs to be defined as a natural or legal person who actually prepares tobacco products and sets the maximum retail selling price for each of the Member States for which the products in question are to be released for consumption. In the interests of uniform and fair taxation, a definition of cigarettes, cigars and cigarillos and of other smoking tobacco should be laid down so that, respectively, rolls of tobacco which according to their length can be considered as two cigarettes or more are treated as two cigarettes or more for excise purposes, a type of cigar which is similar in many respects to a cigarette is treated as a cigarette for excise purposes, smoking tobacco which is similar in many respects to fine-cut tobacco intended for the rolling of cigarettes is treated as fine-cut tobacco for excise purposes, and tobacco refuse is clearly defined. In view of the economic difficulties that immediate implementation could cause for the German and Hungarian operators concerned, Germany and Hungary should be authorised to postpone the application of the definition of cigars and cigarillos until 1 January 2015.