26.2.2002 Official Journal of the European Communities L 55/33 II (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 18 February 2002 authorising France to extend the application of a reduced rate of excise duty on ‘traditional’ rum produced in its overseas departments (2002/166/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 299(2) thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parliament (%), Whereas: 1 By a Council Decision of 30 October 1995, France was authorised to apply to traditional rum produced in its overseas departments (OD) a rate of excise duty lower than the full rate of excise duty applicable to ethyl alcohol. That Decision was taken pending the effects of the existing measures taken to improve the competitiveness of the cane-sugar-rum sector in those departments, and also to take account of the consequences of the abolition of tariff quotas on imports of rum originating in the ACP States. It expires on 31 December 2002. In its memorandum regarding the measures concerning the outermost regions to be implemented under Article 299(2) of the Treaty, France indicates that it is essential to maintain the tax arrange- ments applicable to traditional rum marketed in mainland France. Account being taken of the sugar common market organisation review in 2001 and the dismantling in 2003 of the customs protection for spirits, the Community and national measures taken to improve the competitiveness of the cane-sugar-rum sector in the OD still do not in themselves make it possible to reach the level of competitiveness which would enable France to adapt the taxation of traditional rum produced in its overseas departments. Given the small scale of the local market, the OD distilleries can keep up their activities only by retaining their share of the market in mainland France, this being the main outlet for their rum production (over 50 % of the total). The trend on the Community market shows that competition from non-Community rum has caused a considerable drop in the volume of OD rum sold on the Community market. On a market with 28 % growth (average for the period 1986 to 1999), the ACP () O] C 270 E, 25.9.2001, p. 148. (*) Opinion delivered on 7 February 2001 (not yet published in the Official Journal).