Heinemann battles Danish labelling laws

27 August, 2008
Page 11 
Gebr Heinemann, duty-free liquor retailer at Copenhagen Kastrup airport, hopes to change costly tax regulations relating to bottle labelling.

Under the existing rules, Heinemann has to sell liquor products in differently-label-led bottles to passengers who are travelling within or outside the European Union.

Travellers bound for destinations within the EU are charged duty-paid prices, while customers travelling outside the EU can buy at duty-free prices.

However, Heinemann and Copenhagen airport have been lobbying the Danish government to change the rules, arguing that the technology exists to sell a product with the same label to both sets of customers and establish whether duty is or isn't payable at point of sale.

Gebr Heinemann ApS general manager Palle Linaa Petersen said: "This would make a huge difference with administration and logistics, as well as with costs."

Petersen is encouraged that a few Danish regional tax authorities have started to allow taxation at the POS rather than at the point of production. "This makes us confident that we will be able to change this rule," he added.