
Article 1 
By way of derogation from Article 110 TFEU, Portugal is hereby authorised to apply a rate of excise duty lower than the full rate on alcohol set in accordance with Article 3 of Directive 92/84/EEC in the autonomous region of Madeira on locally produced and consumed rum and liqueurs and in the autonomous region of the Azores on locally produced and consumed rum, liqueurs and eaux-de-vie.
Article 2 
By way of derogation from Article 110 TFEU, Portugal is hereby authorised to apply a rate of excise duty lower than the full rate on alcohol set in accordance with Article 3 of Directive 92/84/EEC on rum and liqueurs produced in the autonomous region of Madeira when consumed on mainland Portugal and on rum, liqueurs and eaux-de-vie produced in the autonomous region of the Azores when consumed on mainland Portugal.
Article 3 

1. In the autonomous region of Madeira the authorisation set out in Articles 1 and 2 shall be limited to the following products:
(a) until 24 May 2021, to rum as defined in point 1 of Annex II to Regulation (EC) No 110/2008 of the European Parliament and of the Council, having the geographical indication ‘Rum da Madeira’ referred to in point 1 of Annex III to that Regulation, and from 25 May 2021, to rum as defined in point 1 of Annex I to Regulation (EU) 2019/787 of the European Parliament and of the Council, having the geographical indication ‘Rum da Madeira’;
(b) until 24 May 2021, to liqueurs and ‘crème de’ as defined in points 32 and 33 respectively of Annex II to Regulation (EC) No 110/2008, produced from regional fruit or plants, and from 25 May 2021, to liqueurs and ‘crème de’ as defined in points 33 and 34 respectively of Annex I to Regulation (EU) 2019/787, produced from regional fruit or plants.
2. In the autonomous region of the Azores, the authorisation set out in Articles 1 and 2 shall be limited to the following products:
(a) until 24 May 2021, to rum as defined in point 1 of Annex II to Regulation (EC) No 110/2008, produced from regional sugarcane, and from 25 May 2021, to rum as defined in point 1 of Annex I to Regulation (EU) 2019/787, produced from regional sugarcane;
(b) until 24 May 2021, to liqueurs and ‘crème de’ as defined in points 32 and 33 respectively of Annex II to Regulation (EC) No 110/2008, produced from regional fruit or raw materials, and from 25 May 2021, to liqueurs and ‘crème de’ as defined in points 33 and 34 respectively of Annex I to Regulation (EU) 2019/787, produced from regional fruit or raw materials;
(c) until 24 May 2021, to eaux-de-vie made from wine or grape marc having the characteristics and qualities as defined in points 4 and 6 of Annex II to Regulation (EC) No 110/2008, and from 25 May 2021, to eaux-de-vie made from wine or grape marc having the characteristics and qualities as defined in points 4 and 6 of Annex I to Regulation (EU) 2019/787.
Article 4 
The reduced rate of excise duty applicable to the products referred to in Article 1 of this Decision may be lower than the minimum rate of excise duty on alcohol set by Directive 92/84/EEC, but may not be more than 75 % lower than the standard national excise duty on alcohol.
Article 5 
The reduced rate of excise duty applicable to the products referred to in Article 2 of this Decision 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 6 
By 30 September 2025 at the latest, Portugal shall submit a monitoring report to the Commission to enable it to assess whether the conditions justifying the authorisation set out in Articles 1 and 2 continue to be fulfilled. The monitoring report shall contain the information set out in the Annex.
Article 7 
This Decision shall apply from 1 January 2021 until 31 December 2027.
Article 8 
This Decision is addressed to the Portuguese Republic.
Done at Brussels, 16 November 2020.
For the Council
The President
M. ROTH
ANNEX
1. 

Table 1
 MADEIRA (EUR) AZORES (EUR) Notes (3)
Sugarcane price (per 100 kg)   
Passion fruit price (per 100 kg)   
Lime fruit price (per 100 kg)   
Alcohol price (per hlpa (1) – excluding taxes)   
Freight cost (per kg)   
Other costs (2)   
Notes to Table 1:
(1) Hectolitres of pure alcohol.
(2) Provide information on water, energy and waste-related costs, costs in case of multiple establishments and other relevant costs.
(3) Provide information on all the specifications and clarifications underpinning the calculation methods.
2. 

Table 2
Aid/support measure(1) Period(2) Target sector(3) Budget amount in EUR(4) Annual expenditure, in EUR (2019-2024)(5) Share of the budget attributable to additional costs compensation(6) Estimated number of beneficiary firms(7) Notes(8)
[list]       
Notes to Table 2:
(1) Provide the denomination and the type of measure.
(2) Provide information on years covered by the measure.
(3) Provide information only for sector-oriented measures.
(4) Provide information on the overall budget of the measure and the sources of funding.
(5) Provide information on actual expenditure year by year in the monitoring period (2019-2024), where available.
(6) Provide approximate estimation, as a percentage of the overall budget.
(7) Provide approximate estimation, where feasible.
(8) Provide any comments and clarifications.
3. 

Table 3
 2019 2020 2021 2022 2023 2024
Foregone tax revenue      
4. 

Table 4
Year(1) 2019 2020 2021 2022 2023 2024 Notes(3)
Regional gross value added       
In the supported sector(2)       
Overall regional employment       
In the supported sector(2)       
Number of active producers       
In the supported sector(2)       
Price level index – mainland Portugal       
Price level index of the region       
Number of tourists of the region       
Notes to Table 4:
(1) The information might not be available for all the years listed.
(2) Provide information on producers of rum, liqueurs and eaux-de-vie.
(3) Provide comments and clarifications as deemed relevant.
5. 

Table 5
Quantity (in hlpa (1)) 2019 2020 2021 2022 2023 2024
Liqueurs production      
Eaux de vie production      
Rum production      
Liqueurs dispatched to mainland Portugal      
Liqueurs dispatched to other Member States      
Liqueurs exported to third countries      
Eaux de vie dispatched to mainland Portugal      
Eaux de vie dispatched to other Member States      
Eaux de vie exported to third countries      
Rum dispatched to mainland Portugal      
Rum dispatched to other Member States      
Rum exported to third countries      
Note to Table 5:
(1) Hectolitres of pure alcohol.
6. 


7. 

