COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 25.06.1996 
COM(96) 299 final 
Proposal for a 
COUNCIL DECISION 
authorising the French Republic to apply or 
to continue to apply reductions in, or exemptions from, excise duties on 
certain mineral oils used for specific purposes, in accordance with the procedure 
provided for in Article 8(4) of Directive 92/81/EEC 
(presented by the Commission) 

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EXPLANATORY MEMORANDUM 
Under Article 8(4) of Council Directive 92/81/EEC1 on the harmonisation of the 
structures of excise duties on mineral oils, the Council, acting unanimously on a 
proposal from the Commission, may authorise any Member State to introduce 
exemptions from, or reductions in, excise duties on the grounds of specific policy 
considerations. 
The French authorities have informed the Commission that they wish to exempt, within 
the limits of an annual quota, liquefied petroleum gas and natural gas from excise duty 
when they are used as fuel for public transport under a programme for reducing 
pollution, to which the procedure provided for in Article 8(4) should apply. 
The Member States have been informed of this request in accordance with the 
Directive. 
The Directive provides for the Commission to review such exemptions and reductions 
periodically. If the Commission considers that they may no longer be applied because 
they distort competition or the operation of the internal market or are incompatible 
with Community policy on protection of the environment, it presents appropriate 
proposals to the Council. In any event, the derogation shall be reviewed before 31 
December 1998. The Council will examined the situation on the basis of a proposal 
from the Commission and decide whether to abolish, modify or extend the derogation. 
OJNoL316, 31.10.1992, p. 12. 
Proposal for a 
COUNCIL DECISION 
authorising the French Republic to apply or 
to continue to apply reductions in, or exemptions from, excise duties on 
certain mineral oils used for specific purposes, 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 
harmonisation 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, under Article 8(4) of Directive 92/81/EEC, the Council, acting unanimously 
on a proposal from the Commission, may authorise any Member State to introduce 
exemptions from, or reductions in, excise duties on mineral oils on the grounds of 
specific policy considerations; 
Whereas the French authorities have informed the Commission that they, as of 1 
jannuray 1997, wish to exempt liquefied petroleum gas and natural gas from excise 
duty when they are used as fuel for public transport under a programme for reducing 
pollution, to which the procedure provided for in Article 8(4) should apply; 
Whereas the other Member States have been informed of this notification; 
Whereas the Commission and all the Member States accept that such exemption is 
justified on the grounds of specific policy considerations and that it would not give rise 
to distortions of competition or hinder the operation of the internal market; 
Whereas the Commission regularly reviews reductions and exemptions to check that 
they are compatible with the operation of the internal market or with Community 
policy on protection of the environment; 
Whereas, under Article 8(6) of Directive 92/81/EEC, the Council is to review the 
situation no later than 31 December 1996 on the basis of a report from the 
Commission, 
A-
Whereas, the French Republic authorities have asked the derogation to apply from 1 
January 1997, the Council shall, on the basis of a report from the Commission review 
this specific derogation before 31 December 1998; 
HAS ADOPTED THIS DECISION: 
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AdicJeJL 
Until 31 December 1998, in accordance with Article 8(4) of Directive 92/81/EEC and 
without prejudice to the obligations laid down in Council Directive 92/82/EEC of 
19 October 1992 on the approximation of the rates of excise duties on mineral oils,2 
France is hereby authorised to apply an exemption from excise duty to liquefied 
petroleum gas and natural gas when used as fuel for vehicles used for local public 
transport, within the limits of an annual quota. 
Articled 
This Decision is addressed to the French Republic. 
Done at Brussels, For the Council 
The President 
2 OJ No L 316, 31.10.1992, p. 19. 

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COM(96) 299 final 
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