Decision 2002/166 - 2002/166/EC: Council Decision of 18 February 2002 authorising France to extend the application of a reduced rate of excise duty on "traditional" rum produced in its overseas departments - Main contents
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official title
2002/166/EC: Council Decision of 18 February 2002 authorising France to extend the application of a reduced rate of excise duty on "traditional" rum produced in its overseas departments| Legal instrument | Decision |
|---|---|
| Number legal act | Decision 2002/166 |
| Original proposal | COM(2001)347  |
| CELEX number i | 32002D0166 |
| Document | 18-02-2002 |
|---|---|
| Publication in Official Journal | 26-02-2002; OJ L 55 p. 33-35 |
| Effect | 25-02-2002; Entry into force Date notif. 01-01-2003; Application See Art 5 |
| End of validity | 31-12-2006; Repealed by 32007D0659 |
| Notification | 25-02-2002 |
|
2002/166/EC: Council Decision of 18 February 2002 authorising France to extend the application of a reduced rate of excise duty on "traditional" rum produced in its overseas departments
Official Journal L 055 , 26/02/2002 P. 0033 - 0035
Council Decision
of 18 February 2002
authorising France to extend the application of a reduced rate of excise duty on "traditional" rum produced in its overseas departments
(2002/166/EC)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 299(2) thereof,
Having regard to the proposal from the Commission(1),
Having regard to the opinion of the European Parliament(2),
Whereas:
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(1)By a Council Decision of 30 October 1995, France was authorised to apply to traditional rum produced in its overseas departments (OD) a rate of excise duty lower than the full rate of excise duty applicable to ethyl alcohol.
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(2)That Decision was taken pending the effects of the existing measures taken to improve the competitiveness of the cane-sugar-rum sector in those departments, and also to take account of the consequences of the abolition of tariff quotas on imports of rum originating in the ACP States. It expires on 31 December 2002.
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(3)In its memorandum regarding the measures concerning the outermost regions to be implemented under Article 299(2) of the Treaty, France indicates that it is essential to maintain the tax arrangements applicable to traditional rum marketed in mainland France.
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(4)Account being taken of the sugar common market organisation review in 2001 and the dismantling in 2003 of the customs protection for spirits, the Community and national measures taken to improve the competitiveness of the cane-sugar-rum sector in the OD still do not in themselves make it possible to reach the level of competitiveness which would enable France to adapt the taxation of traditional rum produced in its overseas departments.
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(5)Given the small scale of the local market, the OD distilleries can keep up their activities only by retaining their share of the market in mainland France, this being the main outlet for their rum production (over 50 % of the total). The trend on the Community market shows that competition from non-Community rum has caused a considerable drop in the volume of OD rum sold on the Community market. On a market with 28 % growth (average for the period 1986 to 1999), the ACP countries' share rose by 64,3 %, and that of third countries by 64,5 %; over the same period, the OD share dropped by 22,4 %. In 1999, the market shares of rum sold on the Community market were the following: 64,7 % (or 346084 hl of pure alcohol) for rum from the ACP countries, 15,5 % (or 82706 hl of pure alcohol) for rum from other third countries and 19,8 % (or 105950 hl of pure alcohol, including 85000 hl of pure alcohol for mainland France) for OD rum. The inability to compete on the Community market, which is mainly the result of higher marketing prices, is due to the difference between the cost price of rum produced in the OD and of rum produced outside Community territory. In the case of OD rum, attention is drawn to the purchase cost of sugar cane on the local market (four to six times higher than the prices applicable outside Community territory) and the cost of labour (three to three and a half times higher than in third countries). In future this inability to compete will be further accentuated by the need to include in the cost price of rum the costs resulting from bringing rum production units in the OD into line with environmental standards, in accordance with Community legislation. Consequently, it is only the mainland France market, in which OD rum qualifies for special tax arrangements that offset the competitive disadvantage resulting from its higher cost price, which has made it possible to...
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