6.6.2008 Official Journal of the European Union L 147/61 I (Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory) DECISIONS COUNCIL COUNCIL DECISION of 3 June 2008 authorising Portugal to apply a reduced rate of excise duty on locally produced beer in the autonomous region of Madeira (2008/417EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular the second subparagraph of Article 299(2) thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament (%), Whereas: By a request dated 30 May 2007 and referring to Article 299(2) of the Treaty, Portugal secks a derogation from Article 90 of the Treaty in order to apply a rate of excise duty, lower than the national rate set in accordance with Council Directive 92/84/EEC  of 19 October 1992 on the approximation of the rates of excise duty on alcohol and alcoholic beverages (?) to beer produced in Madeira, in cases where the annual production of the brewery does not exceed 300 000 hectolitres. Production in excess of 200 000 hectolitres would benefit from the reduced only to the extent it is consumed locally. By way of justification for its request, Portugal has explained that the possibilities offered by Article 4 of Council Directive 92/83/EEC of 19 October 1992 on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages () are not sufficient to offset the disadvantages suffered by the breweries in Madeira on account of their remote location, fragmented terrain and tight local markets. Under that Article, breweries whose annual beer production does not exceed 200 000 hectolitres may benefit from reduced rates of excise duty, provided that those rates are not set at more than 50 % below the standard national rate. Portugal has made use of this provision, applying a 50 % reduction to breweries whose annual production does not exceed 200 000 hectolitres. However, it does not signify that breweries located in Madeira that reach production in excess of that threshold would be in a sufficiently strong position to face up to competition from beers from mainland Portugal (or mainland Europe). Their share of the local market would continue to diminish as a result of the strong compe- tition that they would continue to face from foreign beers owing to the additional costs that they would have to meet as a result of their remoteness, namely maintaining high level of stocks, transport of raw and secondary materials, and packaging from mainland Portugal. Thus, even though such breweries would, upon reaching 200 000 hectolitres annual production, cease to be ‘small' as defined in Article 4 of Directive 92/83/[EEC, they would nonetheless continue to be small compared to the large national and multinational breweries with whom they compete. It is, therefore, essential for the continued survival of the local industry that breweries should benefit from a reduced rate in the event that their annual production exceeds 200 000 hectolitres, without however going beyond 300 000 hectolitres. () OJ L 316, 31.10.1992, p. 21. Directive as amended by the 2005 Act of Accession. (') Opinion of 11 April 2008 (not yet published in the Official Journal). () O] L 316, 31.10.1992, p. 29.