Legal provisions of COM(2020)332 - Authorisation of France to apply a reduced rate of certain indirect taxes on 'traditional' rum produced in Guadeloupe, French Guiana, Martinique and Réunion

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dossier COM(2020)332 - Authorisation of France to apply a reduced rate of certain indirect taxes on 'traditional' rum produced in Guadeloupe, ...
document COM(2020)332 EN
date November 16, 2020

Contents

Article 1

By derogation from Article 110 TFEU, France is authorised to extend the application on the French mainland, to ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion, of a rate of excise duty lower than the full rate on alcohol set in accordance with Article 3 of Directive 92/84/EEC and of a rate of the levy called ‘cotisation sur les boissons alcooliques’ (VSS) lower than the full rate applicable according to the national legislation.

Article 2

The derogation set out in Article 1 of this Decision shall apply to rum as defined in point 1(f) of Annex II to Regulation (EC) No 110/2008 of the European Parliament and of the Council (4) until 24 May 2021 and to rum as defined in point 1(g)(i) of Annex I to Regulation (EU) 2019/787 of the European Parliament and of the Council (5) as of 25 May 2021, produced in Guadeloupe, French Guiana, Martinique and Réunion from sugarcane harvested at the place of manufacture, having a content of volatile substances other than ethyl and methyl alcohol equal to or exceeding 225 grams per hectolitre of pure alcohol and an alcoholic strength by volume of 40 % or more.

Article 3

1. The reduced rates of excise duty and of VSS referred to in Article 1 and applicable to the rum referred to in Article 2 shall be confined to an annual quota of 153 000 hectolitres of pure alcohol.

2. The reduced rates of excise duty and of VSS referred to in Article 1 of this Decision may each be lower than the minimum rate of excise duty on alcohol set by Directive 92/84/EEC, but shall not be more than 50 % lower than the full rate on alcohol set in accordance with Article 3 of Directive 92/84/EEC or the full rate on alcohol for the VSS.

3. The cumulative fiscal advantage authorised in accordance with paragraph 2 of this Article shall not be more than 50 % of the full rate on alcohol set in accordance with Article 3 of Directive 92/84/EEC.

Article 4

By 30 September 2025 at the latest, France shall submit a monitoring report to the Commission to enable it to assess whether the conditions justifying the authorisation set out in Article 1 continue to be fulfilled. The monitoring report shall contain the information set out in the Annex.

Article 5

This Decision shall apply from 1 January 2021 until 31 December 2027.

Article 6

This Decision is addressed to the French Republic.