The European Parliament voted by an overwhelming majority (681 votes in favour, 5 against and 3 abstentions) on Monday 5 October to adopt a report by the MEP Younous Omarjee (GUE/NGL, France) on the EU Council decision to allow a derogation from EU rules for the production of traditional ‘rum’ in Guadeloupe, French Guiana, Martinique and Réunion.
This derogation is granted under Article 349 TFEU to protect the activity of the outermost regions and to offset the difficulties the face as a result of their geographical location (insularity, long distance from the internal market). The proposal therefore authorises France to reduce excise duty and social security contributions on “traditional” rum (at least 40% proof) sold in mainland France by up to 50% of the standard rate. These specific measures will apply over the period 2021–2027.
In addition, two other reports (adopted by an almost identical majority), also put forward by Mr Omarjee, were adopted on the same day. They concern a report on partial or total tax exemptions called ‘Arbitrio sobre Importaciones y Entregas de Mercancías en las Islas Canarias’ (AIEM) for the Canary Islands. This is an exemption that has existed since 2002 for up to a limit of 15% of the price of goods (or an overall annual cap of €150 million).
The other report related to a reduction in the ‘dock dues’ tax, which applies to imports of goods into the French outermost regions. Certain products would be eligible for preferential tax rates of 10% to 30% lower than those applied to normally imported products. The rates are different depending on the various outermost regions. (Original version in French by Pascal Hansens)