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
Date: 1994-11-17
Institutions: European Commission
Subjects: environmental protection, excise duty, mineral oil, petroleum product, tax exemption, used oil

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

C0M(94) 493 final 
Brussels,  17.11.1994 

Proposal  for a 

COUNCIL  PECISIQN 

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) 

ËXPLANATORY MEMORANDUM 

• 

• 

' 

- 2-

Pursuant to Article 8(4) of Council Directive 92/81/EEC on the harmonization of the  structures of excise duties 
on  mineral  oils,l  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  Irish,  United  Kingdom,  French,  German,  Portuguese  and  Spanish  authorities  have  informed  the 
Commission  that they wish to exempt  from  excise  duties waste  oils  which  are  re-used as fuel,  either directly 
after recovery or following a recycling process, and the re-use of which is subject to duty. 

The Italian authorities have informed the Commission that, pending  the entry into force of a law reorganizing 
the free zone of Gorizia, they wish to continue to apply to mineral oils consumed in the regions of Udine and 
Trieste  the  reductions  in  or  exemptions  from  excise  duties  which  expire  on  31 December 1994.  The 
Commission suggests that a period of four years should be sufficient for this purpose. 

The Italian authorities have also informed the Commission that they wish to exempt from excise duties fuel oil, 
required for the production of steam, and gas oil,  used in ovens for drying and "activating" molecular sieves in 
Reggio Calabria. The latter are products widely used by the chemical,  petrochemical  and petroleum industries 
(chiefly for the purification of gases and liquids), and also have applications in certain manufacturing activities 
(double glazing, refrigerators,  etc.). 
The said Reggio Calabria plant is the only one of its kind in Italy, and is situated in a region which, because it 
suffers from the unfavourable  economic  and employment  situation  referred  to in  Article  92(3 )(a)  of the  EC 
Treaty, is eligible for aid and assistance to help improve the standard of living and develop employment. 
Because  of  its  geographical  location,  it  is also  impossible  for  the Region  of  Calabria  to be  connected  to  the 
national methane gas distribution network, and hence the company in question facing the prospect of being at a 
disadvantage compared with its European competitors in the sector (various companies  with plants in France, 
Germany and Switzerland) which, for the same purposes, use duty-exempt natural gas. 

The Danish authorities have informed the Commission that they wish to introduce differential  rates of duty on 
petrol between petrol distributed from petrol stations equipped with a return system for petrol fumes and petrol 
distributed from other petrol  stations in  order to provide  an  incentive  for  owners  of  petrol  stations  to  install 
return systems for petrol fumes on Danish petrol stations. 
As part of a strategy to limit the exhaust of volatile organic components ( VOC's) to the atmosphere, the Danish 
government plans to introduce regulations on the exhaust of petrol fumes from the filling of petrol on cars . 

In accordance with the provisions of the Directive, the other Member States have been notified of these requests. 
The proposal prepared by the Commission will enable the Council to decide whether to grant the authorizations 
requested. 

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. 

1  OJNoL 316, 31.10.1992. 

(: 

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  certain  Member  States  have  notified  the  Commission  of  their  intention  to  continue  to  apply  certain 
exemptions or reductions already provided for in their tax law or to introduce exemptions or reductions to which 
the procedure provided for in Article 8(4) should be applied; 

Whereas the other Member States have been informed  thereof; 

Whereas  it  is accepted  by the  Commission  and  by all  Member  States  that  these  exemptions  or  reductions  are 
justified  by  specific  policies  and  do  not  give  rise  to  distortions  of  competion  or  interfere  with  the  proper 
functioning  of the internal market; 

Whereas reductions and exemptions will be regularly reviewed by the Commission  in order to ensure that they 
are compatible with the proper functioning  of the internal  market or 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: 

0 

2-

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, the 
following Member States are hereby authorized to apply or to continue to apply the reductions in or exemptions 
from excise duty as herein specified: 

1. 
2. 
3. 
4. 
5. 
6. 

- 

in Ireland 
in the United Kingdom of Great Britain and Northern Ireland 
in the French Republic 
in the Federal Republic of Germany 
in the Portuguese Republic and 
in the Kingdom of Spain: 

for waste oils which are re-used as fuel,  either directly  after  recovery or following  a recycling process for 
waste oils, and the re-use of which is subject to duty; 

7. 

in the Italian Republic: 

-• 

for mineral oils consumed in the regions of Udine and Trieste, for a period of 4 years from  1 January 1995. 

for fuel oil, for the production of steam,and for gas oil, used in ovens for drying and "activating" 

molecular sieves in Reggio Calabria. 

8. 

in the Kingdom of Danemark: 

- differential  rates of duty between petrol distributed from petrol stations equipped with a return system 
for petrol fumes and petrol distributed from other petrol stations provided that such rates at all times 
respect the minimum rates of duty on mineral oils as provided for in Community law. 

Article 2 

This Decision is addressed to Ireland, the United Kingdom of Great Britain and Northern Ireland, the French 
Republic,  the  Federal  Republic  of  Germany,  the  Portuguese  Republic,  the  Kingdom  of  Spain  the  Italian 
Republic and the Kindom of Danemark. 

Done at Brussels, 

For the Council 
The President 

OJ No L 316 , 31.10.1992, p. 19 

ISSN 0254-1475 

COM(94) 493  final 

DOCUMENTS 

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Catalogue number : CB-CO-94-521-EN-C 

ISBN 92-77-82065-9