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•it it COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 9.06.1995 
COM(95) 248 final 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
concerning a request from the Frencli Government for authorization 
to continue applying reductions in, or exemptions from, 
excise duty on certain mineral oils used for specific purposes, 
in accordance with the procedure provided for in 
Article 8(4) of Council Directive 92/81/EEC 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
concerning a request from the French Government for authorization 
to continue applying reductions in, or exemptions from, 
excise duty on certain mineral oils used for specific purposes, 
in accordance with the procedure provided for in 
Article 8(4) of Council Directive 92/81/EEC 
1. Introduction 
(a) In accordance with Article S(4) of Council Directive 92/81/EEÇ of 19 October 
1992 on the harmonization of the structures of excise duties on mineral oils, the French 
authorities have informed the Commission - by registered letter dated 15 February 1995 -
that they wish to continue applying an exemption from excise duties on biofuels. 
(b) By letter dated 6 March 1995, ref. 003922, the Commission asked the French 
authorities to provide further "relevant or necessary" information to enable it to assess 
whether this measure was ustilied. 
In the case in point, the French authorities merely enclosed copies of national legislation 
with their letter dated 23 March 1995, without giving any grounds to justify the 
derogation requested. 
2. Description of the measure in question 
The French authorities have launched a major investment programme for biofuels 
production {pilot project) on the basis of the Community rules established by Directive 
92/81/EEC of 19 October 1992 on the harmonization of the staictures of excise duties on 
mineral oils. 
With its request for a derogation, the French Government is seeking to provide a legal 
basis for the exemption that it grants from the domestic tax on petroleum products in 
respect of biofuels, pending an agreement on the proposal for a Council Directive on 
excise duties on motor fue's from agricultural sources.1 
COM(92) 36 IIIKII o!" 2N.2.I992. as amended by COM(94) 147 final of 1.7.1994 (OJ No C 73. 
24.3.1992 and OJ No C 209. 29.7.1994). 
I 
3. Opinion of the Commission 
(a) In the case in point, the French authorities merely enclosed copies of national 
legislation with their letter o:\ica 23 March 1995, without giving any grounds to justify the 
derogation requested. 
(b) The Commission has initiated proceedings against France under Article 93 since 
the tax exemption in question might constitute state aid incompatible with the common 
market inter alia by violating both the agricultural regulations governing the common 
organization of the market for the products in question and the prohibition of 
discriminatory taxation laid down in Article 95 of the Treaty. 
(c) Accordingly, the Commission takes the view that it cannot submit a proposal for a 
decision under Article 8(4) of Directive 92/81/EEC to the Council until the proceedings it 
has initiated against France under Article 93 have been terminated and until France has 
indicated how it intends to bring its legislation into line with the common market and with 
Article 95 of the Treaty. 
4. Conclusion 
Since the measure in question raises fundamental objections, the Commission requests that 
the matter be referred to the Council pursuant to the third subparagraph of Article 8(4) of 
Directive 92/81/EEC. 
3 

ISSN 0254-1475 
COM(95) 248 final 
DOCUMENTS 
EN 09 12 
Catalogue number : CB-CO-95-275-EN-C 
ISBN 92-77-89865-8 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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