2008/439/EC: Council Decision of 9 June 2008 amending Decision 2004/162/EC concerning dock dues in the French overseas departments
Date: 2008-06-09
Institutions: Council of the European Union
Subjects: French overseas department and region, import tax, local tax, tax system

13.6.2008

EN

Official Journal of the European Union

L 155/17

COUNCIL

COUNCIL DECISION

of 9 June 2008

amending Decision 2004/162/EC concerning dock dues in the French overseas departments

(Only the French text is authentic)

(2008/439/EC)

(4)

(5)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Decision 2004/162/EC of 10 February
2004 concerning the dock dues
in the French overseas
departments and extending the period of validity of Decision
89/688/EEC (1), and in particular Article 3 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

Decision 2004/162/EC authorises the French authorities
to apply exemptions or reductions to dock dues for
products manufactured locally in the French overseas
departments and listed in its Annex. Depending on the
products and on the overseas department in question the
is 10, 20 or 30
maximum permitted tax differential
percentage points.

That Decision provides for the updating of the lists of
products in the Annex thereto because of the emergence
of new production in the French overseas departments
and of the taking of urgent measures if local production
is threatened by certain commercial practices.

taxation through the

The French authorities have submitted a request to the
Commission to update the lists of products eligible for
differential
addition of new
products. For each of the products involved, the French
authorities’ request has been examined in the light of the
conditions set by Decision 2004/162/EC. These new
products result from production activities that emerged
in French Guyana only subsequent to the French auth-
orities’ request dated 14 March 2003 which gave rise to
Decision 2004/162/EC. It was not, therefore, possible to
include these products in the list of products set out in

(1) OJ L 52, 21.2.2004, p. 64.

the Annex to that Decision. One of the two alternative
conditions set out
that Decision is
in Article 3 of
therefore satisfied.

inter alia, by the remoteness,

in
The handicap suffered by these new products
comparison with imported products, because of
the
higher costs of production born by the (often very
small) businesses with production activities in French
Guyana should therefore be examined. These higher
the
costs are caused,
difficult climate and the small scale of the local market.
Remoteness results in high transport costs and, due to
delivery times,
to maintain bigger
stocks of raw materials and spare parts to repair the
machines used in manufacturing. Similarly, a conse-
quence of the small scale of the local market is that
often the production facilities are on a larger scale than
is needed for the quantities produced. The French auth-
orities have put a figure on the handicap suffered by each
category of products manufactured locally on the basis of
the factors relevant to each of them.

forces businesses

In October 2003 a new business was set up and started
production of yogurt and other dairy products such as
subheadings
(heading 0403 including
curd cheese
0403 10 and 0403 90 according to the classification of
the Common Customs Tariff nomenclature). However,
only production of yogurt (heading 0403 10 according
to the classification of
the Common Customs Tariff
nomenclature) was envisaged at the time of the initial
request, which was prior to the beginning of production
activity. It transpires that the activity conducted by the
business also includes products under heading 0403 90.
According to the information submitted by the French
authorities, the cost price of the products in question
produced locally is more than 20 % higher than that of
the similar products imported from elsewhere. In order
to compensate for the handicap suffered by this new
in respect
local production, heading 0403 90 should,
of French Guyana, be included in part B of the Annex
to Decision 2004/162/EC, which sets out the list of local
products eligible for a tax differential of 20 percentage
points
in comparison to products not produced in
French overseas departments.

L 155/18

EN

Official Journal of the European Union

13.6.2008

(9)

(10)

(6)

(7)

(8)

In September 2005 a business started a coffee roasting
activity. Alongside this, an agricultural activity producing
raw coffee is in the process of being set up. This activity
is to supply the raw material
to the coffee roasting
business. Eventually, these activities, taken as a whole,
are expected to satisfy some of the demand for coffee
in French Guyana. According to the
information
submitted by the French authorities, the cost price of
coffee roasted locally is more than 20 % higher than
that of imported roasted coffee. In order to compensate
for the handicap suffered by this new local production,
roasted coffee (heading 0901 21 according to the classi-
fication of the Common Customs Tariff nomenclature)
should, in respect of French Guyana, be included in part
B of the Annex to Decision 2004/162/EC, which sets out
the list of local products eligible for a tax differential of
20 percentage points in comparison to products not
produced in French overseas departments.

taken as a whole,

At the beginning of 2006 a business started an activity
manufacturing chocolate and cocoa-derived products
(headings
1801, 1802, 1803, 1805 and 1806
according to the classification of the Common Customs
Tariff nomenclature). Alongside this, an agricultural
activity producing cocoa is in the process of being set
up. Eventually,
these activities are
expected to satisfy some of the demand for chocolate
in French Guyana. According to the
information
submitted by the French authorities, the cost price of
chocolate and cocoa-derived products produced locally
is more than 20 % higher than that of similar products
imported from elsewhere. In order to compensate for the
handicap suffered by this new local production, headings
1801, 1802, 1803, 1805 and 1806 should, in respect of
French Guyana, be included in part B of the Annex to
Decision 2004/162/EC, which sets out the list of local
products eligible for a tax differential of 20 percentage
points
in comparison to products not produced in
French overseas departments.

In September 2005 a business was set up that developed
an activity manufacturing cassava chips, banana chips
and roasted peanuts (headings 2008 11 and 2008 99
according to the classification of the Common Customs
information
Tariff nomenclature). According to the
submitted by the French authorities, the cost price of
the products in question produced locally is more than
20 % higher than that of similar products imported from
In order to compensate for the handicap
elsewhere.
this new local production, headings
suffered by
in respect of French
2008 11 and 2008 99 should,
Guyana, be included in part B of
the Annex to
Decision 2004/162/EC, which sets out the list of local
products eligible for a tax differential of 20 percentage

in comparison to products not produced in

points
French overseas departments.

set up in 2006, started
A beer brewing company,
producing beer in 2007 (heading 2203 according to
the classification of the Common Customs Tariff nomen-
clature). According to the information submitted by the
French authorities, the cost price of beer produced locally
is more than 30 % higher than that of imported beer. In
order to compensate for the handicap suffered by this
new local production, heading 2203 should, in respect of
French Guyana, be included in part C of the Annex to
Decision 2004/162/EC, which sets out the list of local
products eligible for a tax differential of 30 percentage
points
in comparison to products not produced in
French overseas departments.

outside

to the

French Guyana

that has developed it

In 2005 a Guianese business started an activity involving
the recovery of rice husk residues for use in the manu-
facture of a product similar to peat (fuel, litter). This new
activity would not be economically viable unless peat
(heading 2703
produced
according to the classification of the Common Customs
Tariff nomenclature) were subject to differential taxation
in French Guyana. According
information
submitted by the French authorities, although this is a
the processing
product made from agricultural waste,
costs are such that
it cannot compete with peat
imported into French Guyana, even if transport costs
are taken into account. According to the French authori-
ties, the production costs of this product are considerably
higher than those for peat due to the very small size of
the Guianese business
(six
employees) and the quasi-craft industry nature of this
activity, whereas peat
in
Europe. Moreover there is no local peat production in
Guyana. Even taking into account the transport costs of
peat imported from Europe, the cost price of the product
made from rice husks remains more than 20 % higher
than that of imported peat. Without special measures, the
activity carried out by this Guianese business would not,
therefore, be economically viable, hence the need to
restore its competitiveness. In order to compensate for
the handicap suffered by this new local production
competing with peat, heading 2703 should,
in respect
of French Guyana, be included in part B of the Annex
to Decision 2004/162/EC, which sets out the list of local
products eligible for a tax differential of 20 percentage
points in comparison to products not produced in the
French overseas departments. Although it is limited to
peat, this differential will make it possible to maintain
the activity related to the production of the new local
fuel, which will be taxed at
the rate to which peat
produced locally would be subject if such production
existed.

is produced industrially

13.6.2008

EN

Official Journal of the European Union

L 155/19

(11)

(12)

the locally produced products

In 2005 a Guianese business started production of foam
mattresses and polystyrene products (headings 3921 11
and 9404 21 according to the classification of
the
Common Customs Tariff nomenclature). According to
the information submitted by the French authorities,
the cost price of
in
question is more than 20 % higher than that of similar
products
to
compensate for the handicap suffered by this new local
in
production, headings 3921 11 and 9404 21 should,
respect of French Guyana, be included in part B of the
Annex to Decision 2004/162/EC, which sets out the list
local products eligible for a tax differential of 20
of
percentage points
in comparison to products not
produced in French overseas departments.

from elsewhere.

In order

imported

In 2005, a Guianese business started production of PVC
shower cubicles (heading 3922 10 according to the clas-
sification of the Common Customs Tariff nomenclature).
According to the information submitted by the French
authorities, the cost price of shower cubicles produced
locally is more than 20 % higher than that of similar
products
to
compensate for the handicap suffered by this new local
production, heading 3922 10 should,
in respect of
French Guyana, be included in part B of the Annex to
Decision 2004/162/EC, which sets out the list of local
products eligible for a tax differential of 20 percentage
in comparison to products not produced in
points
French overseas departments.

from elsewhere.

In order

imported

the products

the price of

cation of the Common Customs Tariff nomenclature).
According to the information submitted by the French
authorities,
in question
produced locally is more than 20 % higher than that of
similar products imported from elsewhere. In order to
compensate for the handicap suffered by this new local
production, headings 7411, 7412, 7419 91, 7907 00 10
and 7907 00 90 should, in respect of French Guyana, be
included
to Decision
2004/162/EC, which sets out the list of local products
eligible for a tax differential of 20 percentage points in
comparison to products not produced in French overseas
departments,

in part B of

the Annex

HAS ADOPTED THIS DECISION:

Article 1

The Annex to Decision 2004/162/EC is hereby amended in
accordance with the Annex to this Decision.

Article 2

This Decision is addressed to the French Republic.

Done at Luxembourg, 9 June 2008.

(13)

In 2007 a Guianese business started production of zinc
and copper gutters (headings 7411, 7412, 7419 91,
7907 00 10 and 7907 00 90 according to the classifi-

For the Council
The President

M. COTMAN

ANNEX

The Annex to Decision 2004/162/EC is hereby amended as follows:

1.

in part B, point 2, the following products shall be inserted:

‘0403 90, 0901 21, 1801, 1802, 1803, 1805, 1806, 2008 11, 2008 99, 2703, 3921 11, 3922 10, 7411, 7412,
7419 91, 7907 00 10, 7907 00 90 and 9404 21’.

2.

in part C, point 2, the following products shall be inserted:

‘2203’.