Proposal for a Council Decision authorising France 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
Date: 1999-10-04
Institutions: European Commission
Subjects: France, competition law, excise duty, mineral oil, tax harmonisation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 06.10.1999
COM(1999)461 final

Proposal for a

COUNCIL DECISION

authorising France 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)

EXPLANATORY MEMORANDUM

Under  Article 8(4)  of  Council  Directive 92/81/EEC  on  the  harmonisation  of  the
structures  of  excise  duties  on  mineral  oils1,  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  grounds  of  specific  policy
considerations.

The  French  authorities  have  informed  the  Commission  that  they  wish  to  apply  a
differentiated  rate  of  excise  duty  from  1 January  2000  to  premium-grade  unleaded
petrol containing a potassium-based additive to improve resistance to valve burn-out,
(or  any  other  additive  of  equivalent  effect).  This  fuel  will  replace  premium-grade
leaded  petrol,  the  marketing  of  which  in  the  European  Union  is  prohibited  from
1 January 2000 by Council Directive 98/70/EC.

In  accordance  with  Directive  92/81/EEC,  the  other  Member States  have  been
informed of this request.

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 is to present appropriate
proposals to the Council. In any event, this derogation must be reviewed no later than
31 December 2002,  when  the  authorisation  granted  by  the  Decision  expires.  The
Council will review the situation on the  basis of  a Commission  proposal  and  decide
whether the authorisation should be withdrawn, amended or extended.

1

OJ  L  316,  31.10.1992,  p.  12.  Directive  as  last  amended  by  Directive  94/74/EC  (OJ  L  365,
31.12.1994, p. 46).

2

                                               
Proposal for a

COUNCIL DECISION

authorising France 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 
the
harmonisation  of  the  structures  of  excise  duties  on  mineral  oils2,  and  in  particular
Article 8(4),

to  Council  Directive 92/81/EEC  of  19 October 1992  on 

Having regard to the proposal from the Commission,

(1) 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 grounds of specific policy considerations;

(2) Whereas the French authorities have notified the Commission that they wish to
apply  a  differentiated  rate  of  excise  duty  from  1 January 2000  to  premium-
grade  unleaded  petrol  containing  a  potassium-based  additive  to  improve
resistance to valve burn-out (or any other additive of equivalent effect);

(3) Whereas the other Member States have been informed thereof;

(4) Whereas  the  Commission  and  all  the  Member States  accept  that  the
application  of  differentiated  rate  of  excise  duty  to  premium-grade  unleaded
petrol  containing  additives  is  justified  on  environmental  policy  grounds  and
that it will not give rise to distortions of competition or hinder the operation of
the internal market;

(5) 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;

2

OJ  L  316,  31.10.1992,  p.  12.  Directive  as  last  amended  by  Directive  94/74/EC  (OJ  L  365,
31.12.1994, p. 46).

3

                                               
(6) Whereas  France  has  requested  authorisation  to  apply  differentiated  rate  of
excise  duty  to  premium-grade  unleaded  petrol  containing  additives  from
1 January 2000; whereas the  Council  is  to review  its  application on  the  basis
of a report  from  the  Commission  no  later than  31 December 2002,  when  the
authorisation granted by this Decision expires,

HAS ADOPTED THIS DECISION:

Article 1

laid  down 

in  Directive 92/82/EEC  of  19 October 1992  on 

In  accordance  with  Article 8(4)  of  Directive 92/81/EEC  and  notwithstanding  the
the
obligations 
approximation  of  the  rates  of  excise  duties  on  mineral  oils3,  and  in  particular  the
minimum rates laid down in Articles 3 and 4 thereof, France  is hereby authorised to
apply  a  differentiated  rate  of  excise  duty  from  1 January 2000  to  premium-grade
unleaded petrol containing a potassium-based additive to improve resistance to valve
burn-out (or any other additive of equivalent effect) until 31 December 2002.

Article 2

This Decision is addressed to France.

Done at Brussels,

For the Council
The President

3

OJ L 316, 31.10.1992, p. 19.

4