
Article 1 
By derogation from Article 110 TFEU, 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 on alcohol set in accordance with Article 3 of Directive 92/84/EEC and of a rate of the levy called ‘cotisation sur les boissons alcooliques’ (VSS) lower than the full rate applicable according to the national legislation.
Article 2 
The derogation set out in Article 1 of this Decision shall apply 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 until 24 May 2021 and to rum as defined in point 1(g)(i) of Annex I to Regulation (EU) 2019/787 of the European Parliament and of the Council as of 25 May 2021, produced in Guadeloupe, French Guiana, Martinique and Réunion from sugarcane harvested at 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 rates of excise duty and of VSS referred to in Article 1 and applicable to the rum referred to in Article 2 shall be confined to an annual quota of 153 000 hectolitres of pure alcohol.
2. The reduced rates of excise duty and of VSS referred to in Article 1 of this Decision may each be lower than the minimum rate of excise duty on alcohol set by Directive 92/84/EEC, but shall not be more than 50 % lower than the full rate on alcohol set in accordance with Article 3 of Directive 92/84/EEC or the full rate on alcohol for the VSS.
3. The cumulative fiscal advantage authorised in accordance with paragraph 2 of this Article shall not be more than 50 % of the full rate on alcohol set in accordance with Article 3 of Directive 92/84/EEC.
Article 4 
By 30 September 2025 at the latest, France shall submit a monitoring report to the Commission to enable it to assess whether the conditions justifying the authorisation set out in Article 1 continue to be fulfilled. The monitoring report shall contain the information set out in the Annex.
Article 5 
This Decision shall apply from 1 January 2021 until 31 December 2027.
Article 6 
This Decision is addressed to the French Republic.
Done at Brussels, 16 November 2020.
For the Council
The President
M. ROTH
ANNEX
1. 

Table 1
 Guadeloupe (EUR) French Guiana (EUR) Martinique (EUR) Réunion (EUR) Notes (3)
Sugarcane price (per 100 kg)     
Molasses price (per 100 kg)     
Freight cost (per kg)     
Workforce (per hlpa(1))     
Other inputs (per hlpa(1))     
Depreciation costs     
Compliance costs     
Other costs (2)     
Notes to Table 1:
(1) Hectolitres of pure alcohol.
(2) Provide information on water, energy and waste-related costs, 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 information on the identification and the type of measure (programme, State aid number etc.).
(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(2)
Regional gross value added       
In the rum sector       
In the cane-sugar-rum sector       
Employment in local distilleries       
Employment in the cane-sugar-rum sector       
Unemployment rate       
Number of active enterprises       
Number of rum producers (including SMEs)       
Sugarcane cultivation area (ha)       
Price level index – French mainland       
Price level index – regions       
Number of tourists – regions       
Number of tourists – distilleries       
Notes to Table 4:
(1) The information might not be available for all the years listed.
(2) Provide comments and clarifications as deemed relevant.
5. 

Table 5
Quantity (in hlpa(1)) 2019 2020 2021 2022 2023 2024
Rum production      
Traditional rum production      
Local sales of rum      
Rum dispatched to the French mainland      
Traditional rum dispatched to the French mainland      
Traditional rum dispatched under the derogation      
Rum dispatched to other Member States      
Rum exported to third countries      
Rum as a percentage of total extra OR-exports (%)      
Share of French traditional rum in the French mainland rum market (%)      
Rum market growth rate in the French mainland (%)      
Spirits market growth rate in the French mainland (%)      
Note to Table 5:
(1) Hectolitres of pure alcohol.
6. 


7. 

