CELEX: 51994PC0605
Language: en
Date: 1994-12-12
Title: 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

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)
 ---pagebreak---                           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
 ---pagebreak---                                          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 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:
 ---pagebreak---                                               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.
 ---pagebreak---                                                                       ISSN 0254-1475
                                                               COM(94) 605 final
                                                      DOCUMENTS
EN                                                                          02 09
                                 Catalogue number : CB-CO-94-630-EN-C
                                                             ISBN 92-77-83583-4
Office for Official Publications of the European Communities
L-2985 Luxembourg