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: 1994-12-12
Institutions: European Commission
Subjects: environmental protection, excise duty, mineral oil, petroleum product, tax exemption, used oil

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, 

to  Article  8(4)  of  Directive  92/81/EEC,  the  Council,  acting 
Whereas,  pursuant 
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 

O J N o L 3 1 6,  31.10.1992,  p.  19. 

ISSN 0254-1475 

COM(94) 605 final 

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