Espace Voyageur

Created on 08 August 2006   Last Modified on the 26th of August 2009

The recent enshrinement in French domestic law of the Espace Voyageur concept is an important step in the process of securing recognition from all relevant authorities that travel retail and duty-free sales do constitute a separate and distinct market from domestic retailing.

Following the abolition of intra-EU duty and tax-free sales in July 1999, our colleagues in France developed the concept of Espace Voyageur to provide a recognised framework differentiating travel retail and duty-free sales from the domestic market. Espace Voyageur is a geographically delinated area at airports, beyond security and immigration controls, which is accessible only to travellers with a valid travel document such as a ticket or boarding card. The concept applies equally to aircraft and ferries that are undertaking an international or intra-EU flight or voyage.

Within Espace Voyageur, there are no special tax regimes or other exemptions from EU rules and regulations. The Espace Voyageur criteria specifically provide that the operating regulations may not contravene EU law; likewise EU legislation does not permit any differential tax or duty arrangements from those applicable in the nomal domestic market.

Although the Commission of the EU have accepted the principle of a market specific to travellers and have indicated that they consider the concept to be consistent with existing European legislation, the French trade tried over several years to also secure full recognition of the Espace Voyageur concept in French domestic law. This was finally achieved on 22 December 2005 when the French Parliament passed an amendment to a transport bill which provides a legal basis for Espace Voyageur. As worded, the amendment strictly applies only to airports and discussions are continuing with the French authorities regarding its extension to also include ships and aircraft.

In addition, the European Travel Retail Council is currently discussing with the Commission and other relevant parties, the possibility of applying the Espace Voyageur concept to all travel retail outlets across the EU. In areas such as food and alcohol labelling (see separate page) a plethora of individual national requirements in Member States is causing increasing difficulties for the manufacturers and suppliers of products. The objective would be to ensure common labelling and language requirements for all travel retail sales in the EU. As above, the concept would not apply to fiscal or financial issues.

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