Council Decision (EU) 2021/991 concerning the dock dues scheme in the French outermost regions and amending Decision No 940/2014/EU

Summary:

Decision (EU) 2021/991 - adopted by the Council of the European Union on 7 June 2021 - introducing an extension to the dock dues scheme applicable in the French outermost regions.

Further information:

The Treaty on the Functioning of the European Union (TFEU) applies to the outermost regions of the European Union (EU). The French outermost regions are however excluded from the territorial scope of the VAT and excise duty directives. Article 110 TFEU does not in principle authorise any difference between the taxation of local products and the taxation of products from metropolitan France, the other Member States or non-member countries. However, Article 249 TFEU provides for the possibility of introducing specific measures for such regions because of permanent constraints affecting their economic and social situation.

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. Council Decision No 940/2014/EU authorises France to apply exemptions or reductions to dock dues in respect of certain products for which local production exists.

This scheme was authorised to last until 31 December 2020. On 1 March 2019, the French authorities requested an extension. The European Commission conducted an external study to assess the existing arrangements and the impact of different options after the expiry date. It was eventually found that such extension was justified, subject to some changes. Due to the COVID-19 (coronavirus) pandemic, Council Decision (EU) 2020/1793 extended the application of the original Decision by six months. This proposal 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 existing provisions. It also extends Decision No 940/2014/EU for a further six months.

The draft Decision was tabled by the European Commission on 3 March 2021. It was adopted by the Council of the European Union on 7 June and published in the Official Journal on 21 June 2021.

• Primary Source

Official

EUR-LEX: COM(2021)95: Proposal for a Council Decision concerning the dock dues scheme in the French outermost regions and amending Decision No 940/2014/EU https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:95:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Dock dues scheme in the French outermost regions (2021/0051(CNS)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2021/0051(CNS)

European Commission: Taxation and Customs Union: Turnover taxes in the French Overseas Departments outermost regions https://ec.europa.eu/taxation_customs/business/other-taxes/turnover-taxes-french-overseas-departments_en

Commission Européenne: Communiqué de Presse, 03/03/2021: Dock dues: Commission proposes to renew special tax arrangements for the French outermost regions of the EU https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1001

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