I remember this movie from my childhood, so it was 90s at the latest and probably not much older than that. It was hand-drawn animation, and if I remember right it was fairly generic fantasy. Probably American; definitely in English.
The scene that stands out in my mind was when the protagonist and... someone else, don’t think it was an antagonist, have an archery tournament. They used arrows that had little bags of powder on the end instead of arrowheads, so that when they struck targets they painted them red or blue, respectively. Then other people, who may have been like butlers and servants to the protagonists, dressed up as animals and ran away, and the tournament was to hunt them. Different ones had different values; a very-short man in a rabbit costume was by-far the most valuable.
I distinctly remember a gag, possibly repeated, in which several of the targets hid behind cover and one of them shouted “Duck!” at which point the one of them who was dressed as a duck stuck his head up and got hit in the head.
The protagonist ended up winning because he revealed his mark under the rabbit’s tail.
My recollection is that this was a reasonably big movie (I think I saw it multiple times despite not owning it myself), but my wife has absolutely no recollection of it and a Google search finds nothing useful.