Article 1 
By way of derogation from Article 90 of the Treaty, France is authorised to extend the application on the French mainland, to ‘traditional’ rum produced in its overseas territories, of a rate of excise duty lower than the full rate for alcohol set by Article 3 of Directive 92/84/EEC.
Amendment rationale: CONTEXT OF THE PROPOSAL Article 349 of the Treaty on the Functioning of the European Union (TFEU), which applies to the EU's outermost regions, including the French overseas departments (FOD) provides that, taking account of the structural social and economic situation of the outermost regions, compounded by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development, the Council, on a proposal from the Commission and after consulting the European Parliament, will adopt specific measures aimed, in particular, at laying down the conditions of application of the Treaties to those regions, including common policies. One of the areas concerned by these specific measures is fiscal policy. The Council adopts the measures referred to in the first paragraph taking into account the special characteristics and constraints of the outermost regions without undermining the integrity and the coherence of the Union legal order, including the internal market and common policies. Council Decision 2007/659/EC of 9 October 2007, adopted on the basis of Article 299(2) of the EC Treaty (now Article 349 TFEU), authorises France to apply to 'traditional' rum produced in its overseas departments and sold on the French mainland a reduced rate of excise duty which may be lower than the minimum rate of excise duty set by Directive 92/84/EEC but not more than 50% lower than the standard national excise duty on alcohol. The reduction in excise duty is limited to an annual quota of 108 000 hl of pure alcohol. The derogation expires on 31 December 2012. On 29 June 2010, the French authorities sent the Commission the report provided for in Article 4 of Decision 2007/659/EC. The report contains two requests. First, the French authorities ask that the annual quota be increased from 108 000 hectolitres to 125 000 hectolitres of pure alcohol to reflect developments on the market for rum in the EU. Secondly, they request an extension by one year, i.e. to 31 December 2013, of the period of application of Decision 2007/659/EC so as to bring it into line with that of the State aid decision on the same issue taken by the Commission on 27 June 2007 (State aid No N 530/2006).
Revised version (Article 1 ):
By way of derogation from Article 110 of the Treaty on the Functioning of the European Union, France is authorised to extend the application on the French mainland, to ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion, of a rate of excise duty lower than the full rate for alcohol set by Article 3 of Directive 92/84/EEC.
Article 2 
The derogation referred to in Article 1 shall be confined to rum as defined in Article 1(4)(a) of Council Regulation (EEC) No 1576/89 of 29 May 1989 laying down general rules on the definition, description and presentation of spirit drinks ( 5 ) , produced in the overseas departments from sugar cane harvested in the place of manufacture, having a content of volatile substances other than ethyl and methyl alcohol equal to or exceeding 225 grams per hectolitre of pure alcohol and an alcoholic strength by volume of 40 % volume or more.
Amendment rationale: CONTEXT OF THE PROPOSAL Article 349 of the Treaty on the Functioning of the European Union (TFEU), which applies to the EU's outermost regions, including the French overseas departments (FOD) provides that, taking account of the structural social and economic situation of the outermost regions, compounded by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development, the Council, on a proposal from the Commission and after consulting the European Parliament, will adopt specific measures aimed, in particular, at laying down the conditions of application of the Treaties to those regions, including common policies. One of the areas concerned by these specific measures is fiscal policy. The Council adopts the measures referred to in the first paragraph taking into account the special characteristics and constraints of the outermost regions without undermining the integrity and the coherence of the Union legal order, including the internal market and common policies. Council Decision 2007/659/EC of 9 October 2007, adopted on the basis of Article 299(2) of the EC Treaty (now Article 349 TFEU), authorises France to apply to 'traditional' rum produced in its overseas departments and sold on the French mainland a reduced rate of excise duty which may be lower than the minimum rate of excise duty set by Directive 92/84/EEC but not more than 50% lower than the standard national excise duty on alcohol. The reduction in excise duty is limited to an annual quota of 108 000 hl of pure alcohol. The derogation expires on 31 December 2012. On 29 June 2010, the French authorities sent the Commission the report provided for in Article 4 of Decision 2007/659/EC. The report contains two requests. First, the French authorities ask that the annual quota be increased from 108 000 hectolitres to 125 000 hectolitres of pure alcohol to reflect developments on the market for rum in the EU. Secondly, they request an extension by one year, i.e. to 31 December 2013, of the period of application of Decision 2007/659/EC so as to bring it into line with that of the State aid decision on the same issue taken by the Commission on 27 June 2007 (State aid No N 530/2006).
Revised version (Article 2 ):
The derogation referred to in Article 1 shall be confined to rum as defined in point 1(f) of Annex II to Regulation (EC) No 110/2008 of the European Parliament and of the Council of 15 January 2008 on the definition, description, presentation, labelling and the protection of geographical indications of spirit drinks ( 5 ) produced in Guadeloupe, French Guiana, Martinique and Réunion from sugar cane harvested in the place of manufacture, having a content of volatile substances other than ethyl and methyl alcohol equal to or exceeding 225 grams per hectolitre of pure alcohol and an alcoholic strength by volume of 40 % or more.
Article 3 
1. The reduced rate of excise duty applicable to the product referred to in Article 2 shall be confined to an annual quota of 108 000 hectolitres of pure alcohol. 2. The reduced rate may be lower than the minimum rate of excise duty on alcohol set by Directive 92/84/EEC, but may not be more than 50 % lower than the standard national excise duty on alcohol.
Amendment rationale: CONTEXT OF THE PROPOSAL Article 349 of the Treaty on the Functioning of the European Union (TFEU), which applies to the EU's outermost regions, including the French overseas departments (FOD) provides that, taking account of the structural social and economic situation of the outermost regions, compounded by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development, the Council, on a proposal from the Commission and after consulting the European Parliament, will adopt specific measures aimed, in particular, at laying down the conditions of application of the Treaties to those regions, including common policies. One of the areas concerned by these specific measures is fiscal policy. The Council adopts the measures referred to in the first paragraph taking into account the special characteristics and constraints of the outermost regions without undermining the integrity and the coherence of the Union legal order, including the internal market and common policies. Council Decision 2007/659/EC of 9 October 2007, adopted on the basis of Article 299(2) of the EC Treaty (now Article 349 TFEU), authorises France to apply to 'traditional' rum produced in its overseas departments and sold on the French mainland a reduced rate of excise duty which may be lower than the minimum rate of excise duty set by Directive 92/84/EEC but not more than 50% lower than the standard national excise duty on alcohol. The reduction in excise duty is limited to an annual quota of 108 000 hl of pure alcohol. The derogation expires on 31 December 2012. On 29 June 2010, the French authorities sent the Commission the report provided for in Article 4 of Decision 2007/659/EC. The report contains two requests. First, the French authorities ask that the annual quota be increased from 108 000 hectolitres to 125 000 hectolitres of pure alcohol to reflect developments on the market for rum in the EU. Secondly, they request an extension by one year, i.e. to 31 December 2013, of the period of application of Decision 2007/659/EC so as to bring it into line with that of the State aid decision on the same issue taken by the Commission on 27 June 2007 (State aid No N 530/2006).
Revised version (Article 3 ):
1. The reduced rate of excise duty applicable to the product referred to in Article 2 shall be confined to an annual quota of 108 000 hectolitres of pure alcohol for the period up to 31 December 2010. For the period between 1 January 2011 and 31 December 2013, it shall be confined to an annual quota of 120 000 hectolitres. 2. The reduced rate may be lower than the minimum rate of excise duty on alcohol set by Directive 92/84/EEC, but may not be more than 50 % lower than the standard national excise duty on alcohol.
Article 4 
By 30 June 2010 at the latest, France shall send the Commission a report to enable it to assess whether the reasons which justified the granting of the reduced rate still exist and, if need be, whether the quota needs to be adjusted in the light of developments on the market.
Article 5 
This Decision shall apply from 1 January 2007 until 31 December 2012.
Article 6 
1. Decision 2002/166/EC is hereby repealed. 2. References to the repealed Decision shall be construed as references to this Decision.
Article 7 
This Decision is addressed to the French Republic.
Amendment rationale: CONTEXT OF THE PROPOSAL Article 349 of the Treaty on the Functioning of the European Union (TFEU), which applies to the EU's outermost regions, including the French overseas departments (FOD) provides that, taking account of the structural social and economic situation of the outermost regions, compounded by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development, the Council, on a proposal from the Commission and after consulting the European Parliament, will adopt specific measures aimed, in particular, at laying down the conditions of application of the Treaties to those regions, including common policies. One of the areas concerned by these specific measures is fiscal policy. The Council adopts the measures referred to in the first paragraph taking into account the special characteristics and constraints of the outermost regions without undermining the integrity and the coherence of the Union legal order, including the internal market and common policies. Council Decision 2007/659/EC of 9 October 2007, adopted on the basis of Article 299(2) of the EC Treaty (now Article 349 TFEU), authorises France to apply to 'traditional' rum produced in its overseas departments and sold on the French mainland a reduced rate of excise duty which may be lower than the minimum rate of excise duty set by Directive 92/84/EEC but not more than 50% lower than the standard national excise duty on alcohol. The reduction in excise duty is limited to an annual quota of 108 000 hl of pure alcohol. The derogation expires on 31 December 2012. On 29 June 2010, the French authorities sent the Commission the report provided for in Article 4 of Decision 2007/659/EC. The report contains two requests. First, the French authorities ask that the annual quota be increased from 108 000 hectolitres to 125 000 hectolitres of pure alcohol to reflect developments on the market for rum in the EU. Secondly, they request an extension by one year, i.e. to 31 December 2013, of the period of application of Decision 2007/659/EC so as to bring it into line with that of the State aid decision on the same issue taken by the Commission on 27 June 2007 (State aid No N 530/2006).
Revised version (Article 7 ):
This Decision is addressed to the French Republic. ( 1 ) Opinion of 25 September 2007. Not yet published in the Official Journal. ( 2 ) OJ L 55, 26.2.2002, p. 33. ( 3 ) OJ L 316, 31.10.1992, p. 29. ( 4 ) OJ L 42, 14.2.2006, p. 1. Regulation as amended by Regulation (EC) No 2013/2006 (OJ L 384, 29.12.2006, p. 13). ( 5 ) OJ L 39, 13.2.2008, p. 16. This site is managed by the Publications Office of the European Union Need help? 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Help pages Contact Sitemap Follow us X Legal Legal notice Cookies policy Accessibility Privacy statement Information About EUR-Lex Newsletter Useful links Other services European Data EU tenders EU research results EU Whoiswho EU publications N-Lex EU Law in Force EU Law Tracker This site is managed by the Publications Office of the European Union Need help? Help pages Contact Sitemap Follow us X Legal Legal notice Cookies policy Accessibility Privacy statement Need help? 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