No C 107/6 Official Journal of the European Communities 28. 4. 82 
Proposal for a Council Decision authorizing the French Republic to apply in its overseas 
departments and in metropolitan France, in derogation from Article 95 of the Treaty, a 
reduced rate of the revenue duty imposed on the consumption of 'traditional' rum 
produced in those departments 
(Submitted by the Commission to the Council on 1 April 1982) 
THE CONCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Article 227 (2) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, in derogation from Article 95 of the Treaty 
establishing the European Economic Community, to 
the consumption of 'traditional' rum produced in 
those departments a rate of revenue duty lower than 
the full rate of that duty applicable to spirits falling 
under within subheading 22.09 C of the Common 
Customs Tariff. 
Article 2 
Whereas the institutions of the Community are 
obliged to take care that the economic and social 
development of the French overseas departments is 
made possible; 
Whereas the provisions of the EEC Treaty and of 
secondary legislation are applicable to the French 
overseas departments, subject to decisions by the 
Community institutions adopting specific measures 
commensurate with the economic and social 
conditions of those departments; The derogation referred to in Article 1 is limited to 
the product obtained exclusively by distillation after 
fermentation of sugar cane juice, sugar cane syrup or 
sugar cane molasses in the sugar cane producing 
areas of the French overseas departments. This 
product must have a volatile element content, 
excluding ethly alcohol, in excess of 225 g/hl at 
100 % vol. and must be produced at an alcoholic 
strength by volume of less than 80 % vol. 
Whereas, for reasons connected with their 
geographic, economic and social situation, the French 
Republic should be authorized to apply, in derogation 
from Article 95 of the Treaty, a reduced rate of the 
revenue duty imposed on the consumption of 
'traditional' rum produced in those departments; 
Whereas it is necessary to limit this derogation in 
terms of its duration, the quantities which can benefit 
from it and the level of reduction of the duty; 
whereas a periodical review of the arrangements must 
be provided for on the basis of a report by the 
Commission, 
HAS ADOPTED THIS DECISION: 
Article 1 
The French Republic is hereby authorized to apply in 
its overseas departments and in metropolitan France, Article 3 
1. In metropolitan France the reduced fiscal duty 
applicable to the product referred to in Article 2 shall 
be applied to an amount of the product not exceeding 
an annual quota corresponding to the average annual 
consumption of that product in metropolitan France 
during the 10 years preceding the entry into force of 
this Decision. 
2. The ratio between the reduced rate of 
consumption tax applied in metropolitan France to 
'traditional' rum and the full rate applied to spirits, 
expressed in percentage terms, may not be less than 
the ratio between those two rates obtaining in 
metropolitan France at the time of the entry into 
force of this Decision. 
3. Upon the expiry of a period of five years from 
the date of entry into force of this Decision and ther­
eafter as and when necessary, the Council shall 
review, on the basis of a report drawn up by the 
Commission, the situation with regard to the dero-
28. 4. 82 Official Journal of the European Communities No C 107/7 
gation referred to in Article 1 and shall, if necessary, Article 4 
acting unanimously on a proposal from the 
Commission, decide to abolish or amend it. This Decision is addressed to the French Republic. 
ANNEX I 
Rates of the consumption tax applied on 'traditional' rum in metropolitan France and in the French 
overseas departments 
(Situation at 1 February 1982) 
(in FFper hi of pure alcohol) 
Rum Metropolitan 
France 
4 405 Guadeloupe 
82 Martinique 
82 Reunion 
250 Guyane 
48 
ANNEX II 
Tax-paid consumption of spirits (in hectolitres of pure alcohol) in metropolitan France 
Year 
1971 
1972 
1973 
1974 
1975 
1976 
1977 
1978 
1979 
1980 Rum 
121 000 
131 000 
133 000 
135 000 
127 000 
117 000 
112 000 
111000 
112 000 
106 000 Total 
1 119 000 
1 151 000 
1 230 000 
1 256 000 
1 275 000 
1 237 000 
1 260 000 
1 312 000 
1 354 000 
1 358 000 
ANNEX III 
Breakdown of the production of rum of the French overseas departments per campaign 
(hectolitres of pure alcohol) 
Campaign 
1974/75 
1975/76 
1976/77 
1977/78 
1978/79 
1979/80 
1980/81 Total production 
246 712 
233 809 
217 691 
223 457 
233 057 
217 686 
215 924 Local consumption 
61 317 
61 517 
62 144 
64 572 
66 894 
61 264 
61 419 Shipped to 
metropolitan 
France 
127 362 
126 603 
112 637 
118 775 
118 622 
116 234 
107 171 Exportation (EEC and 
third countries) 
58 033 
45 689 
42 910 
40 110 
37 541 
40 188 
47 334