EUROPEAN COMMISSION

Brussels, 3.3.2021

COM(2021) 95 final

2021/0051(CNS)

Proposal for a

COUNCIL DECISION

concerning the dock dues scheme in the French outermost regions and amending Decision No 940/2014/EU

{SWD(2021) 44 final}

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The Treaty on the Functioning of the European Union (TFEU) applies to the outermost regions of the Union. The French outermost regions are however excluded from the territorial scope of the VAT and excise duty directives.

The TFEU, in particular Article 110, does not in principle authorise any difference in the French outermost regions between the taxation of local products and the taxation of products from metropolitan France, the other Member States or non-member countries. However, Article 349 TFEU provides for the possibility of introducing specific measures for such regions because of permanent constraints affecting their economic and social situation. Such measures concern various policies, including taxation.

The dock dues tax is an indirect tax in force only in the French outermost regions of Martinique, Guadeloupe, French Guiana, Réunion and Mayotte. It applies to imports of products, irrespective of their origin, and to supplies of goods for consideration by persons engaged in production activities. In principle, it applies in the same way to locally produced products and to imported products.

However, Council Decision No 940/2014/EU of 17 December 2014 1 authorises France to apply, until 31 December 2020, exemptions or reductions to dock dues in respect of certain products for which local production exists, given that significant importation of goods could jeopardise the continuation of local production and additional costs increase the cost price of local production in comparison with products produced elsewhere. The Annex to that Decision contains the list of products to which the tax exemptions or reductions may be applied. The difference between the taxation of locally produced products and that of other products may not exceed 10, 20 or 30 percentage points, depending on the product.

The purpose of these tax differentials is to offset the competitive disadvantages affecting the outermost regions, which increase production costs and therefore the cost price of products produced locally. Without specific measures, local products would be less competitive than those produced elsewhere, even taking into account the costs of transport. It would thus be harder to maintain local production, which faces higher production costs on account of the specific permanent constraints affecting these regions.

On 1 March 2019 the French authorities asked the Commission to extend the dock dues scheme beyond 31 December 2020.

As the Council Decision was due to expire, the Commission had earlier launched an external study to assess the current arrangements and the potential impact of various possible options for the period after 2020. On the basis of that study, the Commission considers it justified to grant the requested extension, subject to some changes to the existing arrangements.

In order to give the French authorities the opportunity to collect all the necessary information, work on which had been delayed on account of the COVID‐19 public health crisis, and to give the Commission time to present a balanced proposal taking account of the various interests at stake, Council Decision (EU) 2020/1793 of 16 November 2020 2 extended the application of Council Decision No 940/2014/EU by six months, to 30 June 2021 instead of 31 December 2020.

This proposal accordingly establishes the legal framework for dock dues applicable after 30 June 2021 by establishing new derogation arrangements for the period from 1 January 2022 to 31 December 2027, including a revision of the current provisions to make the scheme more flexible and transparent. In parallel, it extends Decision No 940/2014/EU for six months, until 31 December 2021, to give France time to transpose the new arrangements applicable between 1 January 2022 and 31 December 2027 into its national law.

The proposed changes to the existing arrangements are as follows:

(a)The criteria for selecting products eligible for a tax differential are specified.

The products on the list have been selected on the grounds that additional production costs exist which increase the cost price of local production in comparison with products produced elsewhere and which make products produced locally less competitive.

Where:

(1)local production has a market share of less than 5%,

(2)or where its market share is greater than 90%,

additional justification has been requested as proof of all or some of the following circumstances:

–labour-intensive production;

–new or complementary production designed to diversify a company’s product range;

–production that is strategic for local development (e.g. in areas relating to circular-economy sectors such as wood processing, or harnessing biodiversity or environmental protection);

–innovative or high-added-value production;

–production for which the disruption of supply from elsewhere could jeopardise the local economy or population, such as building materials or foodstuffs;

–production which can only exist if it is dominant on the market as a result of the small size of the markets in the outermost regions;

–production of medical products and personal protective equipment required to tackle public health crises.

(b)Two differential ceilings of 20% and 30% are introduced in place of the current three. Nevertheless, the authorised tax differential should not exceed the proven additional costs.

(c)The threshold for liability for dock dues is raised to EUR 550 000. Under the proposed arrangements, operators whose annual turnover is below that threshold would not be subject to dock dues. However, they would not be able to deduct the amount of this tax borne upstream. The purpose is to exempt production by small enterprises, to reduce their administrative burden and to support their growth. This measure is justified by its limited budgetary 3 and competition impact in view of the small number of economic operators involved 4 .

(d)The mid-term report is replaced by a report by 30 September 2025, which should contain at least the information set out in Annex II to the Decision. This information will serve as a basis for work on renewing the scheme. This proposal is designed to reduce the burden of evaluating the scheme, which is unnecessarily frequent, and to make monitoring and evaluation activities more useful and effective.

Furthermore, as regards the assessment of the additional production costs which the tax differential is intended to offset, the French authorities have provided, for each four-digit heading of the customs nomenclature, an assessment of the additional production costs borne by local enterprises, which are primarily: supply costs, wages, higher energy costs, financial costs resulting from the holding of larger stocks, higher maintenance costs, underutilisation of production equipment, higher financial costs.

The Annex to the Decision contains the list of products to which the dock dues exemptions or reductions may be applied. The difference between the taxation of locally produced products and that of other products may not exceed 20 or 30 percentage points, depending on the product. Part (a) of the Annex lists the products for which the difference in taxation may not exceed 20 percentage points and part (b) those for which the difference may not exceed 30 percentage points.

Most of the products listed in the Annex are the same as those in the Annex to Council Decision No 940/2014/EU. However, a complete overhaul of the lists has resulted in the removal of numerous products for which a tax differential was no longer justified. By contrast, some products not included in Decision No 940/2014/EU for which production has started or developed have been added. Lastly, some products have been kept on the lists but the authorised tax differential has been modified upwards or downwards to take account of changes in the additional costs.

•Consistency with existing provisions in the policy area

The 2017 Communication on a stronger and renewed strategic partnership with the EU’s outermost regions 5 stresses that the outermost regions continue to face serious difficulties, many of which are permanent. This Communication presents the Commission’s new approach to how to galvanise the development of the outermost regions by making the most of their assets and tapping into the opportunities provided by new vectors of growth and job creation.

Against that background, the objective of this proposal is to promote local production, thereby boosting employment in the French outermost regions. The proposal restores the competitiveness of local production by compensating for the disadvantages resulting from the geographical and economic situation. It supplements the Programme of Options Specifically Relating to Remoteness and Insularity (POSEI) 6 , which aims to support the primary sector and the production of raw materials, the European Maritime and Fisheries Fund (EMFF) 7 and the European Regional Development Fund (ERDF) 8 , which includes a specific additional allocation to offset the additional costs of the outermost regions inherent in their permanent constraints.

Moreover, the required consistency with agricultural policy rules means ruling out the application of a tax differential for all the food products which benefit from aid under Chapter III of Regulation (EU) No 228/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in the outermost regions of the Union, and in particular the specific supply arrangements.

•Consistency with other Union policies

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

•Proportionality

•Choice of instrument

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

•    Ex-post evaluations/fitness checks of existing legislation

•    Stakeholder consultations

In connection with this initiative, a comprehensive consultation of the principal political and economic players was carried out, by way of interviews (80) and visits to three regions (Réunion, Guadeloupe and Martinique), and a survey of enterprises (196) based in all five outermost regions concerned. The targeted (online) survey of economic operators was circulated primarily through the professional associations in the different territories and secondarily by way of direct invitations sent to 15 420 enterprises taken from lists provided by the chambers of commerce.

•    Impact assessment

4.BUDGETARY IMPLICATIONS

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

–data on the additional costs of production;

–any distortions of competition and repercussions for the internal market;

–information needed to assess the scheme against the criteria of effectiveness, efficiency, relevance, consistency with other EU policies and EU added value.

•Detailed explanation of specific provisions of the proposal

2021/0051 (CNS)

Proposal for a

COUNCIL DECISION

concerning the dock dues scheme in the French outermost regions and amending Decision No 940/2014/EU

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 349 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Parliament 12 ,

Acting in accordance with a special legislative procedure,

Whereas:

(1)The Treaty provisions which apply to the French outermost regions do not in principle authorise any difference between the taxation of local products and the taxation of products from metropolitan France or the other Member States. However, Article 349 of the Treaty provides for the possibility of introducing specific measures for outermost regions because of permanent constraints affecting their economic and social situation.

(2)Specific measures should therefore be adopted, in particular to lay down the conditions for the application of the Treaty to the French outermost regions. These measures must take account of the special characteristics and constraints of these regions, without undermining the integrity and coherence of the Union’s legal order, including the internal market and common policies. The competitive disadvantages faced by the French outermost regions are referred to in Article 349 of the Treaty: remoteness, insularity, small size, difficult topography and climate, and economic dependence on a few products. These permanent constraints create for the outermost regions raw-material and energy dependence, an obligation to build up larger stocks, a small local market combined with a low level of export activity, etc. The combination of these competitive disadvantages increases production costs and, therefore, the cost price of goods produced locally, so that without specific measures they would be less competitive than those produced elsewhere, even taking into account the cost of transporting such goods to the French outermost regions. This would make it harder to maintain local production. For this reason, specific measures need to be taken in order to strengthen local industry by making it more competitive.

(3)With a view to restoring the competitiveness of goods produced locally, Council Decision No 940/2014/EU 13 authorises France to apply, until 30 June 2021, exemptions or reductions to dock dues in respect of certain products produced in the outermost regions of Martinique, Guadeloupe, French Guiana, Réunion and Mayotte for which local production exists, given that significant importation of goods could jeopardise the continuation of local production and additional costs increase the cost price of local production in comparison with products produced elsewhere. The Annex to that Decision contains the list of products to which the tax exemptions or reductions may be applied. The difference between the taxation of locally produced products and that of other products may not exceed 10, 20 or 30 percentage points, depending on the product.

(4)France has requested that a system similar to that contained in Decision No 940/2014/EC continue to apply as of 1 July 2021. The grounds it advances are that the competitive disadvantages referred to above continue to exist, while the tax scheme provided for in Decision No 940/2014/EU has made it possible to maintain and, in certain cases, develop local production, has not disrupted external trade and has not resulted in overcompensation for the additional costs borne by the enterprises.

(5)In this connection, France has sent the Commission, for each of the five outermost regions concerned, a set of lists of products for which it intends to apply a tax differential of no more than 20 or 30 percentage points, depending on whether or not they are produced locally. The French outermost region of Saint Martin is not affected.

(6)This Decision implements the provisions of Article 349 of the Treaty and authorises France to apply differentiated taxation to the products for which it has been proven: firstly, that local production exists; secondly, that significant importation of goods (including from metropolitan France and other Member States) exists which could jeopardise the continuation of local production; and lastly, that additional costs exist which increase the cost price of local production in comparison with products produced elsewhere, compromising the competitiveness of products produced locally. The authorised tax differential should not exceed the proven additional costs.

(7)In cases where local production has a market share of less than 5% or where the share of imports is less than 10%, additional evidence was requested as proof of all or some of the following circumstances: the existence of labour-intensive production, new or complementary production designed to diversify a company’s product range, production that is strategic for local development (e.g. in sectors relating to the circular economy, harnessing biodiversity or environmental protection), innovative or high‑added-value production, production for which the disruption of supply from elsewhere could jeopardise the local economy or population, production which can only exist if it is dominant on the market as a result of the small size of the markets in the outermost regions and production of medical products and personal protective equipment required to tackle public health crises. Applying these principles will allow the provisions of Article 349 of the Treaty to be implemented without going beyond what is necessary and without creating an unjustified advantage for local production so as not to undermine the integrity and the coherence of the Union’s legal order, including safeguarding undistorted competition in the internal market and State aid policies.

(8)With a view to simplifying and reducing the obligations on small enterprises and supporting their growth, the tax exemptions or reductions will apply to operators with an annual turnover of EUR 550 000 or above. Operators whose annual turnover is below that threshold are not subject to dock dues but in turn may not deduct the amount of this tax borne upstream.

(9)Similarly, coherence with Union law means ruling out the application of a tax differential for food products benefiting from aid under Chapter III of Regulation (EU) No 228/2013 of the European Parliament and of the Council 14 3. This rule prevents the effect of the financial aid to agriculture granted under the specific supply arrangements from being cancelled out or reduced by higher taxation of the subsidised products by means of the dock dues.

(10)The objectives of supporting the social and economic development of the French outermost regions, already provided for in Decision No 940/2014/EU, are confirmed by the requirements regarding the purpose of the tax. It is a legal obligation for the revenue from this tax to be incorporated into the tax resources of the French outermost regions and to be allocated to an economic and social development strategy involving the promotion of local activities.

(11)It is necessary to amend Decision No 940/2014/EU in order to extend the period of application of the derogation authorised by it by six months until 31 December 2021. That period should enable France to transpose this Decision into its national law.

(12)The duration of the scheme should be set at six years, until 31 December 2027. In order to enable the Commission to determine whether the grounds for the derogation still apply, France should submit an evaluation report to the Commission no later than 30 September 2025. The required structure and content of that report need to be established.

(13)To avoid any legal uncertainty, this Decision should apply from 1 January 2022, while the extension of the period of application of the derogation authorised by Decision No 940/2014/EU should take effect on 1 July 2021.

(14)This Decision is without prejudice to the possible application of Articles 107 and 108 of the Treaty,

HAS ADOPTED THIS DECISION:

Article 1

1. By way of derogation from Articles 28, 30 and 110 of the Treaty, France is authorised, until 31 December 2027, to apply exemptions or reductions to dock dues in respect of the products listed in Annex I which are produced locally in Guadeloupe, French Guiana, Martinique, Mayotte or Réunion, as outermost regions within the meaning of Article 349 of the Treaty. Those exemptions or reductions must be in keeping with the economic and social development strategy of the outermost regions concerned, taking account of the Union framework, and contribute to the promotion of local activities while not adversely affecting the conditions of trade to an extent contrary to the common interest.

2. With reference to the rate of taxation applied to similar products not originating in the outermost regions concerned, the application of the total exemptions or of the reductions referred to in paragraph 1 may not result in differences of more than:

(a) 20 percentage points for the products listed in part (a) of Annex I;

(b) 30 percentage points for the products listed in part (b) of Annex I.

France shall undertake to ensure that the exemptions or reductions applied to the products listed in Annex I do not exceed either the proven additional costs or the percentage strictly necessary to maintain, promote and develop local economic activities.

3. France shall apply the tax exemptions or reductions referred to in paragraphs 1 and 2 to operators with an annual turnover of EUR 550 000 or above. Operators whose annual turnover is below that threshold shall not be subject to dock dues.

Article 2

The products referred to in Article 1(1) have been selected on the grounds that additional costs exist which increase the cost price of local production in comparison with products produced elsewhere and make products produced locally less competitive.

Where:

(a)local production has a market share of less than 5%,

(b)or where its market share is greater than 90%,

additional justification has been requested as proof of all or some of the following circumstances:

(1)labour-intensive production;

(2)new or complementary production designed to diversify a company’s product range;

(3)production that is strategic for local development;

(4)innovative or high-added-value production;

(5)production for which the disruption of supply from elsewhere could jeopardise the local economy or population;

(6)production which can only exist if it is dominant on the market as a result of the small size of the markets in the outermost regions;

(7)production of medical products and personal protective equipment required to tackle public health crises.

Article 3

The French authorities shall apply the same taxation arrangements as those applied to products produced locally to products that have benefited from the specific supply arrangements under Chapter III of Regulation (EU) No 228/2013.

Article 4

France shall submit an evaluation report to the Commission no later than 30 September 2025 to enable the Commission to determine whether the grounds for applying the tax arrangements referred to in Article 1 still apply. The evaluation report shall contain the information set out in Annex II.

Article 5

In Article 1(1) of Decision No 940/2014/EU the date ‘30 June 2021’ is replaced by ‘31 December 2021’.

Article 6

This Decision shall apply from 1 January 2022, with the exception of Article 5, which shall apply from 1 July 2021.

Article 7

This Decision is addressed to the French Republic.

Done at Brussels,

(1)    Council Decision No 940/2014/EU of 17 December 2014 concerning the dock dues in the French outermost regions (OJ L 367, 23.12.2014, p. 1).

(2)    Council Decision (EU) 2020/1793 of 16 November 2020 amending the period of application of Decision No 940/2014/EU concerning the dock dues in the French outermost regions (OJ L 402, 1.12.2020, p. 21–22).

(3)    The revenue from the taxation of enterprises with a turnover of between EUR 300 000 and EUR 550 000 is calculated at only EUR 1.22 million in 2019, that is close on 0.1% of the total revenue from dock dues (EUR 1.2 billion).

(4)    The number of enterprises concerned is 222.

(5)    COM(2017) 623 final.

(6)    Regulation (EU) No 228/2013 of the European Parliament and of the Council of 13 March 2013.

(7)    Regulation (EU) No 508/2014 of the European Parliament and of the Council of 15 May 2014 on the European Maritime and Fisheries Fund.

(8)    Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund.

(9)    Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on Upgrading the Single Market: more opportunities for people and business (COM(2015) 550 final), p. 4.

(10)    A few isolated cases (representing 0.6% of eligible products) of overcompensation (less than three percentage points on average) due to the updated calculation of additional costs (in 2020) were found.

(11)    The report should include data for 2019 so as to set a baseline and enable the Commission to examine the impact of the scheme for the period after 2021. The report should contain, as far as possible, the most recent data up to and including 2024.

(12)    OJ C , , p. .

(13)    Council Decision No 940/2014/EU of 17 December 2014 concerning the dock dues in the French outermost regions (OJ L 367, 23.12.2014, p. 1).

(14) 3     Regulation (EU) No 228/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in the outermost regions of the Union and repealing Council Regulation (EC) No 247/2006 (OJ L 78, 20.3.2013, p. 23).

EUROPEAN COMMISSION

Brussels, 3.3.2021

COM(2021) 95 final

ANNEXES

to the

Proposal for a Council Decision

concerning the dock dues scheme in the French outermost regions and amending Decision No 940/2014/EU

{SWD(2021) 44 final}

ANNEX I

List of products referred to in Article 1 eligible for a dock dues tax differential

(a)List of products referred to in Article 1(2)(a) according to the classification of the Common Customs Tariff nomenclature 1 .

(1)Outermost region of Guadeloupe

0105 11, 0201, 0203, 0207, 0208, 0210 12 19, 0302, 0304, 0305 49 80, 0306, 0307 91, 0307 99, 0403 except 0403 10, 0407, 0408, 0409, 0702, 0704, 0705 19, 0706 10 00 10, 0707 00 05, 0709 60 10, 0709 60 99, 0709 99 90, 0713, 0714, 0804 30 00, 0805 50 90, 0807 11, 0807 19, 0904 22 00, 0910 91, 1106, 1601, 1602, 1604 20, 1806 31, 1806 32 10, 1806 32 90, 1806 90 31, 1806 90 60, 1901 20, 1902 11, 1902 19, 2103 30 90, 2103 90 30, 2103 90 90, 2105, 2106, 2201 10 90, 2201 90, 2202 91, 2202 99, 2207 10, 2207 20 00, 2208 40, 2209 00 91, 2309 90 except 2309 90 96 39, 2309 90 41 89 2 , 2309 90 512, 2309 90 96 39 and 2309 90 96 952, 2505, 2517 10, 2523 29, 2712 10 90, 2804, 2806, 2811, 2814, 2828, 2833, 2834, 2836, 2853 00 10, 3101, 3102, 3103, 3104, 3105, 3208, 3209, 3303 00 90, 3304 99 00, 3305 10, 3401, 3402, 3406, 3808, 3820 00 00, 3917 except 3917 10 10, 3919, 3920, 3923, 3925 30, 3926 90, 4407 11, 4407 21 to 4407 29, 4407 99, 4418 10, 4418 20, 4418 90, 4818, 4819 10 00, 4821 10, 4821 90, 4910, 4911 10, 6303 12, 6306 12, 6306 19, 6306 30, 6307 90 98, 6810 except 6810 11 10, 7003 12 99, 7003 19 90, 7003 20, 7213 10, 7213 91 10, 7214 20, 7214 99 10, 7308 90 59, 7308 90 98, 7310 10, 7314 except 7314 12, 7610 10, 7610 90 90, 7616 99 90, 8419 19, 8903 99 10, 8907 90 00, 9001 50, 9004 10 10, 9004 90 10, 9004 90 90, 9403 70 00, 9404 10, 9404 21, 9406 00 20, 9506 99 90.

(2)Outermost region of French Guiana

0105 11, 0201, 0203, 0204, 0206 10 95, 0206 10 98, 0206 30, 0206 80 99, 0207 11, 0207 12, 0207 13, 0207 41, 0207 43, 0209 10 90, 0209 90, 0210 11, 0210 12, 0210 19, 0210 99, 0302, 0303 59, 0303 89, 0304, 0305 31 00, 0305 39 90, 0305 44 90, 0305 49 80, 0305 52 00, 0305 53 90, 0305 54 90, 0305 59 85, 0305 64 00, 0305 69 80, 0306 17, 0406, 0408 99, 0702, 0704 90 10, 0709 60, 0805, 0807, 0810 90 75, 0901 except 0901 10, 0904 11, 0904 12, 1106 20 90, 1601, 1602, 1604, 1605, 1806 31, 1806 32, 1806 90, 1905, 2005 99 80, 2008 99 except 2008 99 47 90, 2008 99 48 19, 2008 99 48 99 and 2008 99 49 80, 2103, 2105, 2106 90 98, 2201, 2202, 2208 40, 2209 00 91, 2309 90 except 2309 90 31 30, 2309 90 31 80, 2309 90 35, 2309 90 41 89, 2309 90 43, 2309 90 51, 2309 90 96 31, 2309 90 96 39, 2309 90 96 91 and 2309 90 96 95, 2505 10, 2517 10, 2523 29 00, 2828 90, 3204 17 00, 3208 20 90, 3208 90, 3209 10, 3402, 3809 91, 3824 50, 3919, 3920 51, 3923 except 3923 10, 3923 40 and 3923 90, 3925, 3926 90, 4818, 4821 10, 4909, 4910, 4911, 6109, 6111 20 90, 6201 19 00, 6110 30 91, 6111 20 90, 6201 19 00, 6205, 6204 42 00, 6206, 6302 91 00, 6303 12, 6303 19, 6306 12, 6306 19, 6307 90 98, 6505 00 30, 6802 23, 6802 29, 6802 93, 6802 99, 6810, 6912 00, 7006 00 90, 7009, 7210, 7214 20, 7308 30, 7308 90, 7314, 7604, 7610 10, 7610 90, 7616 99, 7907, 8211, 8421 21 00 90, 8537 10, 9001 50, 9004 90, 9021 21, 9021 29, 9404 21, 9405 40, 9405 60.

(3)Outermost region of Martinique

0105 11, 0105 12, 0105 15, 0201, 0203, 0207, 0208 10, 0210 11, 0210 12, 0210 19, 0210 20, 0210 99 49, 0302, 0303, 0304, 0305, 0306, 0307, 0403 except 0403 10, 0406 10, 0406 90 50, 0407, 0408, 0409, 0601, 0602, 0603, 0604, 0702, 0704 90, 0705, 0706, 0707, 0709 30 00, 0709 40 00, 0709 51 00, 0709 60, 0709 93 90, 0709 99, 0710, 0714, 0801 11, 0801 13 to 0801 18, 0803, 0804 30, 0804 40 00, 0804 50, 0805, 0807, 0809 10, 0809 40, 0810 30, 0810 90, 0813, 0910 91, 1106 20, 1601, 1602, 1604 20, 1605 10, 1605 21, 1702, 1704 90 61, 1704 90 65, 1704 90 71, 1806, 1902, 1904 10, 1904 20, 2005 99, 2103 30, 2103 90, 2104 10, 2105, 2106, 2201, 2202 10, 2202 91, 2202 99, 2208 40, 2309 except 2309 90 96, 2505, 2517 10, 2523 21, 2523 29, 2710, 2711, 2804, 2806, 2811, 2814, 2828 10, 2828 90, 2836, 2853 90 10, 2903, 2907, 3101, 3102, 3103, 3104, 3105, 3204, 3205, 3206, 3207, 3208, 3209, 3303, 3305, 3401, 3402, 3406, 3808, 3820, 3824, 3907 61 00, 3919, 3920, 3921 11, 3921 19, 3923 10 90, 3923 21, 3923 29, 3923 30, 3924, 3926, 4012 11, 4012 12, 4012 19, 4401, 4407 21 to 4407 29, 4408, 4409, 4415 20, 4418 10, 4418 20, 4418 90, 4421 90, 4811, 4818 10, 4818 20, 4818 30, 4818 90, 4819, 4820, 4821, 4823, 4902, 4909, 4910, 4911 10, 6103, 6104, 6105, 6109 10, 6109 90 20, 6109 90 90, 6203, 6204, 6205, 6207, 6208, 6306 12, 6306 19, 6306 30, 6805, 6810, 6902, 6904 10, 7003 12, 7003 19, 7113 to 7117, 7213, 7214, 7217, 7225, 7308, 7314, 7610, 7616 91, 7616 99, 8418 69 00, 8419 19 00, 8708 99 97, 8716 40 00, 8901 90 10, 8902, 8903 99, 8907 90 00, 9004 10 10, 9004 90 10, 9004 90 90, 9021 21, 9021 29, 9403, 9404 10, 9404 21, 9405 60, 9406, 9506 99 90.        

(4)Outermost region of Mayotte

0105 11, 0105 12, 0105 15, 0201, 0204, 0206, 0207, 0302, 0303, 0304, 0305, 0407, 0702, 0704 90 90, 0705 19, 0707 00 05, 0709 30, 0709 60, 0709 93 10, 0709 99 10, 0714, 0801 11, 0801 12, 0801 19, 0803, 0804 30, 0805 10, 0905, 1513 11, 1513 19, 1806, 2106 90 92, 2201, 2309 90 except 2309 90 96, 3301 29 11, 3301 29 31, 3917, 3923 90 00, 3924 90 00, 3925 10 00, 3926 90 92, 3926 90 97, 4401, 4403, 4407, 4409, 4418, 4820, 4821, 4902, 4909, 4910, 4911, 6904 10 00, 7003, 7005, 7210, 7216 61 90, 7216 91 10, 7308 30, 7308 90 98, 7312, 7314, 7326 90 98, 7606, 7610 10, 8301 40 90, 8310, 8421 21 00, 8716 80 00, 9021 10 10, 9406 00 31, 9406 00 38.

(5)Outermost region of Réunion

0105 11, 0105 12, 0105 13, 0105 15, 0207, 0208 10, 0208 90 30, 0208 90 98, 0209, 0301, 0302, 0303, 0304, 0305, 0306 11, 0306 31, 0306 91, 0307 59, 0403, 0405 except 0405 10, 0406 10, 0406 90 91, 0407, 0408, 0409, 0601, 0602, 0603, 0604 90 91, 0604 90 99, 0703 10 19, 0703 20 00, 0709 60, 0710, 0711 90 10, 0801, 0803, 0804, 0805, 0806, 0807, 0808, 0809, 0810, 0811, 0812, 0813, 0901 21, 0901 22, 0904, 0909 31, 0910 11, 0910 12, 0910 30, 0910 91 10, 0910 91 90, 0910 99 99, 1101 00 15, 1106 20, 1108 14, 1302 19, 1516 20, 1601, 1602, 1604 14, 1604 19, 1604 20, 1605, 1702, 1704, 1806, 1901, 1902, 1903, 1904, 1905, 2001, 2002 90 11, 2004 10 10, 2004 10 91, 2004 90 50, 2004 90 98, 2005 10, 2005 20, 2005 40, 2005 59, 2005 99 10, 2005 99 30, 2005 99 50, 2006, 2007 except 2007 99 97 10, 2008 except 2008 19 19 80, 2008 30 55 90, 2008 40 51 90, 2008 40 59 90, 2008 50 61 90, 2008 60 50 90, 2008 70 61 90, 2008 80 50 90, 2008 97 59 90, 2008 99 49 80 and 2008 99 99 90, 2102 30 00, 2103 20, 2103 90, 2104, 2105, 2106 90, 2201, 2208 40, 2309 10, 2309 90 except 2309 90 35 and 2309 90 96 95, 2501 00 91, 2710 19 81, 2710 19 83, 2710 19 87, 2710 19 91, 2710 19 99, 2710 19 94 to 2710 19 99, 2834 29 80, 3102 10 90, 3210, 3211, 3212, 3301 12, 3301 13, 3301 24, 3301 29, 3301 30, 3401 11, 3402, 3808 92, 3808 99, 3809, 3811 90, 3814, 3820, 3824, 3917, 3920 except 3920 10, 3921 11, 3921 13, 3921 90 60, 3921 90 90, 3923 except 3923 21, 3925 10, 3925 20, 3925 30, 3925 90 80, 3926 90, 4009, 4010, 4012, 4016, 440711, 440712, 4407 19, 4409 10, 4409 21, 4409 29, 4415 20, 4418, 4421, 4811, 4818 10, 4818 20 10, 4818 20 91, 4818 20 99, 4818 90 10, 4818 90 90, 4819 10, 4820, 4821, 4823 70, 4823 90, 4909, 4910, 4911 10, 4911 91, 4911 99, 6303 92 90, 6306, 6801, 6811 89, 7007 29, 7009 except 7009 10, 7216 61 10, 7306 30 80, 7306 61 92, 7307 99 80, 7308 except 7308 90, 7309, 7310 21 91, 7310 21 99, 7312 90, 7314, 7326, 7606, 7608, 7610, 7616 91, 7616 99 90, 8310, 8418 50, 8418 69, 8418 91, 8418 99, 8419 19, 8419 90 85, 8421 21 to 8421 29, 8511 40 00, 8511 50 00, 8511 90 00, 8537, 8707, 8708, 8902, 8903 99, 9001, 9004 10 10, 9004 90 10, 9004 90 90, 9021 21 90, 9021 29, 9401 except 9401 10 and 9401 20, 9403, 9404 10, 9405, 9406, 9506 21, 9506 29, 9506 99 90, 9619.

(b)List of products referred to in Article 1(2)(b) according to the classification of the Common Customs Tariff nomenclature

(1)Outermost region of Guadeloupe

0403 10, 0901 21, 0901 22, 1006 30, 1006 40, 1101, 1701, 1905, 2007, 2009 except 2009 11 91 90, 2009 11 99 98, 2009 19 98 99, 2009 49 19 90, 2009 49 30 91, 2009 49 99 90, 2009 61 10 00, 2009 71 99 90, 2009 79 19 90, 2009 79 98 20, 2009 89 19 90, 2009 89 69 90, 2009 89 73 13, 2009 89 73 99, 2009 89 79 99, 2009 89 96 90, 2009 89 97 29, 2009 89 97 99, 2009 89 99 99, 2009 90 29 80, 2009 90 49 00, 2009 90 51 80, 2009 90 59 39, 2009 90 59 90 and 2009 90 97 00, 2202 10 00, 2202 99 19, 2203, 2208 70 3 , 2208 903, 3925 10 00, 7009 91, 7009 92, 8421 21 00.

(2)Outermost region of French Guiana

0403, 1702, 2007 except 2007 99 33 25 and 2007 99 35 25, 2009 except 2009 11 99 98, 2009 31 19 99, 2009 39 39 19, 2009 39 39 99, 2009 49 30 91, 2009 49 30 99, 2009 89 97 99, 2009 49 99 90, 2009 81 99 90, 2009 89 36 90, 2009 89 97 99, 2009 90 29 80, 2009 90 59 90, 2009 90 97 00 and 2009 90 98 80, 2203, 2208 703, 4401 12 00, 4403 49, 4407 29, 4407 99 96, 4409 29 91, 4409 29 99, 4418 10, 4418 20, 4418 40, 4418 50, 4418 60, 4418 90, 4418 99, 4420 10, 9406 10 00, 9406 90 10, 9406 90 38.

(3)Outermost region of Martinique

0403 10, 0901 21, 0901 22, 1006 30, 1006 40, 1101 00 11, 1101 00 15, 1701, 1901, 1905, 2006 00 10, 2006 00 35, 2006 00 91, 2007 except 2007 10 99 15, 2007 99 33 15 and 2007 99 39 29, 2008 except 2008 20 51, 2008 50 61 90, 2008 60 50 10, 2008 80 50 90, 2008 93 93 90, 2008 97 51 90, 2008 97 59 90, 2008 99 48 94, 2008 99 48 99, 2008 99 49 80 and 2008 99 99 90, 2009 except 2009 11 99 96, 2009 11 99 98, 2009 19 98 99, 2009 29 99 90, 2009 39 39 19, 2009 39 39 99, 2009 49 30 91, 2009 49 30 99, 2009 49 91 90, 2009 69 51 10, 2009 79 11 91, 2009 79 11 99, 2009 89 97 99 4 , 2009 89 99 994 and 2009 90 59 904, 2203, 2204 21, 2205, 2208 703, 2208 903, 2309 90 96 except 2309 90 96 39, 3917, 3925, 7009 91, 7009 92, 7212 30, 8421 21 00.

(4)Outermost region of Mayotte

0401, 0403, 0406, 2105, 2202, 3208, 3209, 3210, 3214 10 90, 3401, 3402, 9403 20 80, 9403 30, 9403 40, 9403 50, 9403 60, 9404 29 90.

(5)Outermost region of Réunion

0905 10, 1512 19, 1514 19 90, 1701, 2002 10, 2005 51 00, 2005 99 80, 2009 except 2009 11 99 96, 2009 19 98 99, 2009 29 99 90, 2009 39 31 19, 2009 69 19 10, 2009 69 51 10, 2009 79 19 90, 2009 79 30 90, 2009 79 98 20, 2009 89 69 904 5, 2009 89 73 91, 2009 89 73 99, 2009 89 97 994, 2009 89 99 96, 2009 89 99 994, 2009 90 51 804 and 2009 90 594, 2202 10, 2202 99 19, 2203, 2204 21 79, 2204 21 80, 2204 21 83, 2204 21 84, 2204 29 83, 2204 29 84, 2206 00 59, 2206 00 89, 2208 703, 2208 903, 2402 20, 3208, 3209, 3214 10 90, 3920 10, 3923 21, 4819 20 00, 7113, 7114, 7115, 7117, 7308 90, 9404 21 10, 9404 21 90, 9404 29 10, 9404 29 90.

ANNEX II

Information to be included in the monitoring report referred to in Article 4

1.Estimated additional production costs. The French authorities shall send to the Commission a summary report with sufficient data to determine whether an additional cost exists which increases the cost price of local production in comparison with products produced elsewhere. The information provided in the summary report shall include at least the following information, where such information is available: costs of inputs, costs related to storage (overstocking and longer rotation time), costs related to over-sizing of equipment and additional costs related to human resources and finance. This data shall be provided as a minimum for each product category of the Harmonised System headings, according to the first four digits of the Combined Nomenclature.

This report shall also contain ‘product information sheets’ relating to the additional costs that continue to be incurred periodically by France.

2.Other subsidies. The French authorities shall send to the Commission a list of all the other aid and support measures addressing the additional production costs borne by economic operators and linked to the remoteness of the regions of Martinique, Guadeloupe, French Guiana, Mayotte and Réunion.

3.Impact on the budget of public authorities. The French authorities shall fill in Table 1, providing the estimated total amount (in EUR) of tax collected and not collected as a result of the application of a dock dues tax differential.

Table 1.

Notes to table:

(1)‘Tax not collected’: total amount (in EUR) of tax not collected because of the tax differentials applied to local production (reductions/exemptions). At product level, this is calculated by multiplying the amount of local production sold (excluding exports) by the tax differential applied. The indicator is then calculated by adding up the results obtained for each product.

(2)‘Tax receipts – imports’: total amount (in EUR) of dock dues collected in respect of imported products.

(3)‘Tax receipts – local production’: total amount (in EUR) of dock dues collected in respect of local production.

(*)    Information may not be available for all the years listed.

(**)    Provide comments and clarifications as deemed relevant.

4.Impact on overall economic performance. The French authorities shall complete Table 2 for each region, providing any data demonstrating the impact of the tax differentials on the socio-economic development of those regions. The indicators required in the Table shall refer to the performance of the sectors benefiting from a tax differential compared to the general performance of the economy of these outermost regions. If some of the indicators are unavailable, alternative data on the impact on the overall economic performance of these regions must be provided.

Table 2.

Notes to table:

(1)‘Sectors benefiting from a tax differential’: economic sectors (NACE or similar definition) in which most production (by production volume) benefits from a tax differential.

(*)    Information may not be available for all the years listed.

(**)    Provide comments and clarifications as deemed relevant.

5.Specifications of the scheme. The French authorities shall complete Tables 3 and 4 for each product (SH4, SH6, NC8 or TARIC10 as applicable) and by year (from 2009 to 2024) for each of the regions of Martinique, Guadeloupe, French Guiana, Mayotte and Réunion. The list only includes products benefiting from a tax differential.

Table 3. Identification of products and rates applied.

Notes to table:

(1)‘External dock dues rate’: dock dues rate applied to imports.

(2)‘Internal dock dues rate’: dock dues rate applied to local production.

(3)‘Tax differential applied’: difference between the internal and external dock dues rates.

(*)    Provide comments and clarifications as deemed relevant.

Table 4. Market share of products benefiting from a tax differential.

Notes to table:

(*)    The first column must be identical to the first column in the previous table to enable data matching.

(1)‘Volume’: in the ‘unit’ column, specify the unit of measurement (tonnes, hl, pieces, etc.).

(2)‘Amount’: for imports, this corresponds to the taxable amount.

(*)    ‘Market share’: the market share is calculated by deducting the exports of local products.

(**)    Provide comments and clarifications as deemed relevant.

6.Irregularities. The French authorities shall provide information on any investigation into administrative irregularities, in particular in the case of tax evasion or smuggling, as part of the application of the dock dues tax differential scheme. They shall also provide detailed information including, as a minimum, the nature of the case and the value and time period involved.

7.Complaints. The French authorities shall report any complaints received by local, regional or national authorities concerning the application of the dock dues tax differential scheme (from beneficiaries as well as non-beneficiaries of the scheme).

(1)    Annex I to Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).

(2)    Except for non-organic products.

(3)    Only rum-based products under heading 2208 40.

(4)    Where the Brix value of the product is higher than 20.

(5) 4     Where the Brix value of the product is higher than 20.3     Only rum-based products under heading 2208 40.