Council Directive 2003/117/EC of 5 December 2003 amending Directives 92/79/EEC and 92/80/EEC, in order to authorise the French Republic to prolong the application of lower rates of excise duty to tobacco products released for consumption in Corsica
Date: 2003-12-05
Institutions: Council of the European Union
Subjects: Corsica, France, derogation from EU law, excise duty, marketing, tariff reduction, tobacco

20.12.2003

EN

Official Journal of the European Union

L 333/49

COUNCIL DIRECTIVE 2003/117/EC

of 5 December 2003

amending Directives 92/79/EEC and 92/80/EEC, in order to authorise the French Republic to
prolong the application of lower rates of excise duty to tobacco products released for consump-
tion in Corsica

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 93 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

Having regard to the opinion of the European Economic and
Social Committee (2),

Following consultation of the Committee of the Regions,

Whereas:

(1)

(2)

(3)

By the provisions of Council Directive 92/79/EEC of 19
October 1992 on the approximation of taxes on cigar-
ettes (3) and Council Directive 92/80/EEC of 19 October
1992 on the approximation of taxes on manufactured
tobacco other than cigarettes (4), France was authorised
to continue applying up to 31 December 2002 the same
rates for cigarettes and tobacco products sold in Corsica
as those in force on 31 December 1997.

Taking the view that more time was needed to bring the
taxes applied to manufactured tobaccos in Corsica into
line with the taxes applicable on the mainland, France
requested, in particular, in a memorandum dated 26 July
2000 pleading recognition of Corsica's special position
as an island within the European Union (‘Pour une
reconnaissance de la spécificité insulaire de la Corse dans
l'Union européenne’), authorisation to prolong until 31
December 2009 the application of certain tax rules dero-
gating from the Community's requirements regarding
the taxation of tobacco products.

activity

economic

linked with manufactured
The
tobaccos helps maintain economic and social equili-
brium in Corsica. This is because the said activity
provides a livelihood for some 350 retailers who employ
about the same number of wage earners. Quite a large
proportion of these retail outlets are in the sparsely
populated mountain areas where they provide a neigh-
bourhood service and thereby help indirectly to keep the
population from moving away.

(4)

(5)

(6)

(7)

Immediate and complete alignment with the tax rules
for tobacco in mainland France would depress economic
activity linked to manufactured tobacco in Corsica
which, at present, provides the abovementioned jobs.

Therefore, to prevent damage to the island's economic
and social equilibrium, it is both essential and justifiable
to grant a derogation with effect from 1 January 2003
to 31 December 2009, by which France may apply a
rate of excise duty that is lower than the national rate to
cigarettes and other manufactured tobaccos released for
consumption in Corsica.

By the end of this derogation period the tax rules for
manufactured tobaccos released for consumption in
Corsica must have been brought fully into line with the
rules for mainland France. Nevertheless, too abrupt a
change should be avoided and there should therefore be
an intermediate increase in the excise duty currently
levied on cigarettes in Corsica.

To avoid undermining the smooth functioning of the
internal market, the volume of cigarettes eligible for this
derogating measure should be limited to an annual
quota of 1 200 tonnes.

(8)

Directives 92/79/EEC and 92/80/EEC should accordingly
be amended,

HAS ADOPTED THIS DIRECTIVE:

Article 1

Article 3(4) of Directive 92/79/EEC is
following:

replaced by the

(1) Opinion of 21 October 2003 (not yet published in the Official

Journal).

(2) OJ C 234, 30.9.2003, p. 49.
(3) OJ L 316, 31.10.1992, p. 8; Directive as last amended by Directive

2002/10/EC (OJ L 46, 16.2.2002, p. 26).

(4) OJ L 316, 31.10.1992, p. 10; Directive as last amended by Directive

2002/10/EC.

‘4.
By derogation from Article 2, from 1 January 2003
to 31 December 2009 the French Republic may continue
to apply a reduced rate of excise duty to cigarettes released
for consumption in Corsica. This rate shall apply solely to
an annual quota of 1 200 tonnes.

L 333/50

EN

Official Journal of the European Union

20.12.2003

From 1 January 2003 to 31 December 2007 the reduced
rate must equal at least 35 % of the price for cigarettes in
the price category most in demand in Corsica.

From 1 January 2008 to 31 December 2009 the reduced
rate must equal at least 44 % of the price for cigarettes in
the price category most in demand in Corsica.’

Article 2

Article 3(4) of Directive 92/80/EEC shall be replaced by the
following:

By derogation from Article 3(1),

from 1 January
‘4.
2003 to 31 December 2009 the French Republic may
continue to apply a reduced rate of excise duty to manufac-
tured tobaccos other than cigarettes released for consump-
tion in Corsica. The reduced rate shall be:

(a) for cigars and cigarillos, at least 10 % of the retail
selling price, inclusive of all taxes, charged in Corsica;

(b) for fine-cut tobacco intended for the rolling of cigar-
ettes, at least 25 % of the retail selling price, inclusive
of all taxes, charged in Corsica;

(c) for other smoking tobaccos, at least 22 % of the retail
selling price, inclusive of all taxes, charged in Corsica.’

Article 3

Member States shall bring into force the laws, regulations and
administrative provisions necessary to comply with this Direc-
tive before 1 January 2004. They shall forthwith inform the
Commission thereof.

When Member States adopt these measures, they shall contain
a reference to this Directive or shall be accompanied by such
reference on the occasion of their official publication. The
methods of making such reference shall be laid down by
Member States.

Article 4

This Directive shall enter into force on the day of its publica-
tion in the Official Journal of the European Union.

This Directive is addressed to the Member States.

Article 5

Done at Brussels, 5 December 2003.

For the Council

The President

P. LUNARDI