COMMISSION OF THE EUROPEAN COMVKJNITIES 
COM(94) 605 final 
Brussels, 12.12.1994 
Proposal for a 
COUNCIL DECISION 
authorizing certain Member States to apply or to continue to apply to 
certain mineral oils when used for specific purposes reductions in or 
exemptions from excise duty, in accordance with the procedure provided for 
in Article 8(4) of Directive 92/81/EEC 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
Pursuant to Article 8(4) of Directive 92/81/EEC on the harmonization of the structures of 
excise duties on mineral oils,1 the Council, acting unanimously on a proposal from the 
Commission, may authorize any Member State to introduce, for certain special policy 
reasons, exemptions from or reductions in excise duty. 
The Belgian and Luxembourg authorities have informed the Commission that they wish to 
continue, after the deadline of 31 December 1994 laid down in Council Decision 
93/697/EC of 13 December 1993, to charge a reduced rate of excise duty on heavy fuel 
oil with a low sulphur content. That deadline was set pending a Council decision on the 
Community arrangements for low-sulphur heavy fuel oil and competing products. 
However, since a decision is still outstanding, Belgium and Luxembourg have asked for 
the existing authorization to be extended until the definitive arrangements are brought in. 
The Portuguese authorities have informed the Commission that, in order to offset the 
additional transportation costs involved, they wish to charge less than the minimum rate of 
excise duty on fuel oil consumed in the autonomous region of Madeira. 
In accordance with the Directive, the other Member States have been notified of these 
requests. 
The Directive provides for periodic review of exemptions and reductions by the 
Commission If it considers that they are no longer sustainable because they distort 
competition or the proper functioning of the internal market, or in view of Community 
policy on environmental protection, the Commission is to present appropriate proposals to 
the Council. In any event, it is to present to the Council by 31 December 1996 at the latest 
a report on the exemptions and reductions. 
OJ No L 316, 31.10.1992, p. I 
Proposal for a 
COUNCIL DECISION 
authorizing certain Member States to apply or to continue to apply to 
certain mineral oils when used for specific purposes reductions in or 
exemptions from excise duty, in accordance with the procedure provided for 
in Article 8(4) of Directive 92/81/EEC 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Directive 92/81/EEC of 19 October 1992 on the harmonization 
of the structures of excise duties on mineral oils, and in particular Article 8(4) thereof, 
Having regard to the proposal from the Commission, 
Whereas, pursuant to Article 8(4) of Directive 92/81/EEC, the Council, acting 
unanimously on a proposal from the Commission, may authorize any Member State to 
introduce, for certain special policy reasons, exemptions from or reductions in the excise 
duty charged on mineral oils; 
Whereas the Belgian and Luxembourg authorities have notified the Commission that they 
wish to continue, after 31 December 1994, to charge a reduced rate of excise duty on 
heavy fuel oil with a low sulphur content; 
Whereas the Portuguese authorities have notified the Commission that they wish to charge 
a reduced rate of excise duty on fuel oil consumed in the autonomous region of Madeira; 
Whereas the other Member States have been informed thereof; 
Whereas it is accepted by the Commission and by all Member States that these reductions 
are justified by specific policies and do not give rise to distortions of competition or 
interfere with the proper functioning of the internal market; 
Whereas the reductions will be regularly reviewed by the Commission in order to ensure 
that they are compatible with the proper functioning of the internal market and with 
Community policy on environmental protection, 
Whereas, pursuant to Article 8(6) of Directive 92/81/EEC, the Council is to review the 
situation by 31 December 1996 at the latest on the basis of a report from the Commission, 
HAS ADOPTED THIS DECISION: 
Article 1 
In accordance with Article 8(4) of Directive 92/81/EEC and notwithstanding the 
obligations laid down in Directive 92/82/EEC of 19 October 1992 on the approximation 
of the rates of excise duties on mineral oils,2 the following Member States are hereby 
authorized to apply or to continue to apply the reductions in excise duty rates as herein 
specified: 
1. the Kingdom of Belgium and the Grand Duchy of Luxembourg: 
- for heavy fuel oil in order to encourage the use of more environmentally friendly 
fuels; 
provided that such an incentive is specifically linked to sulphur content and that the 
weighted average rate of duty charged on heavy ruel oil corresponds to the minimum rate 
of duty on heavy fuel oils as laid down in Community law; on no account may the reduced 
rate fall below ECU 6.5 per tonne. 
This derogation shall apply until the entry into force of the Community arrangements for 
low-sulphur heavy fuel oil and competing products. 
2. the Portuguese Republic: 
for fuel oil consumed in the autonomous region of Madeira. 
Provided that the reduction in excise duty does not exceed the additional costs incurred in 
transporting the fuel oil to that region. 
Article 2 
This Decision is addressed to the Kingdom of Belgium , the Grand Duchy of Luxembourg 
and the Portuguese Republic. 
Done at Brussels, 
For the Council 
The President 
OJNoL316, 31.10.1992, p. 19. 
ISSN 0254-1475 
COM(94) 605 final 
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