1991R1911 — EN — 01.01.1992 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EEC)No 1911/91
of 26 June 1991
on the application of the provisions of Community law to the Canary Islands
(OJ L 171, 29.6.1991, p. 1)
Amended by:
Official Journal
Nopage date
►M1Council Regulation (EEC) No 284/92 of 3 February 1992 L 31 6 7.2.1992
▼B
COUNCIL REGULATION (EEC)No 1911/91
of 26 June 1991
on the application of the provisions of Community law to the Canary
Islands
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community,
Having regard to the Act of Accession of Spain and Portugal, and in
particular the first subparagraph of Article 25 (4) thereof,
Having regard to the amended proposal from the Commission(1),
Having regard to the opinion of the European Parliament(2),
Having regard to the opinion of the Economic and Social Committee(3),
Whereas, by virtue of Article 25 of the Act of Accession, the Treaties
and the acts ofthe institutions of the European Communities apply to the
Canary Islands, subject to the derogations set out in that Article, inArticle 155 and in Protocol 2 to the said Act;
Whereas these arrangements exclude the Canary Islands in particular
from the Community's customs territory and from application of the
common commercial policy, the common agricultural policy and the
common fisheries policy; whereas experience has however shown thatthe development of the Canary Islands would be better served by theirfull integration into the common policies and the process of completingthe internal market; whereas the arrangements laid down in the Act ofAccession should therefore be amended and the Canary Islands
integrated into the Community's customs territory;
Whereas, pursuant to the first subparagraph of Article 25 (4) of the Act
of Accession, the Council, at Spain's request, acting on a proposal fromthe Commission and after consulting the European Parliament, maydecide unanimously to include the Canary Islands in the customs
territory of the Community and to define the appropriate measures
aimed at extending to the Canary Islands the provisions of Communitylaw in force; whereas Spain made such a request on 7 March 1990pursuant to the aforementioned Article;
Whereas integration of the Canary Islands into all Community policies
requires a gradual process over an appropriate transitional period,without prejudice to any special measures designed to take account ofthe specific constraints deriving from the remoteness of the CanaryIslands, their island location and their historical economic and taxarrangements; whereas such measures will have tobe the subject o f a
special programme of options specific to the remote and insular nature
of the Canary Islands, to be adopted pursuant to this Regulation;
Whereas application of the common agricultural policy to the Canary
Islands will make possible the free movement of products on theconditions applicable to mainland Spain (end of the transitional period:
31 December 1995) with the exception of the supplementary trade
mechanisms as regards the supplying of the Canary Islands; whereas, inthis framework, the free movement of products between the CanaryIslands and the rest of Spain will be ensured; whereas full application ofthe common agricultural policy is subject to the entry into force of
specific supply arrangements; whereas the application of this policy will
have to be accompanied in addition by specific measures relating to theagricultural production of the Canary Islands; whereas it is thereforenecessary to maintain the provisions of the Act of Accession relating tothe application of the common agricultural policy to the Canary Islandsuntil the entry into force of such supply arrangements with the exception1991R1911 — EN — 01.01.1992 — 001.001 — 2
(1) OJ NoC 67, 15. 3. 1991, p. 8.
(2) OJ NoC 158, 17. 6. 1991.
(3) Opinion dlivered on 30 May 1991 (not yet published in the Official journal).
▼B
of those governing the access of agricultural products originating in the
Canary Islands to the other parts of the Community; whereas theprovisions of Protocol 2 relating to bananas must remain in force;
Whereas it is necessary to apply the common fisheries policy to the
Canary Islands on the entry into force of this Regulation on theconditions applicable to mainland Spain (end of the transitional period:
31 December 1995), subject tospecific measures tobe determined under
existing legislation;
Whereas historical recognition of the Canaries' island status has been
reflected in successive special economic and tax arrangements designed
to compensate for the disadvantages deriving from the archipelago'sgeographical isolation;
Whereas, in this context, the strengthening of the Canary Islands'
integration into the Community is not incompatible with the main-tenance of indirect taxation specific to these islands, especially theexclusion of the Canary Islands from the territorial field of applicationof the common VAT system pursuant to Article 26 in conjunction with
Annex I, V, 2 to the Act of Accession, amending Article 3 (2) of the
Sixth Directive 77/388/EEC(
1) and the continuing exclusion of the
Canary Islands from the territorial field of application of the Directivesconcerning manufactured tobacco pursuant to Article 26 in conjunctionwith Annex I, V, 3 and 4 to the Act of Accession;
Whereas the Community takes favourable note of the aims of the reform
initiated by Spain in respect of the tax aspects of the economic and taxarrangements for the Canary Islands; whereas this reform provides forthe gradual introduction of up-to-date indirect taxation as an instrument
of economic and social development and the financing of local budgets,
creating the conditions for total integration into the Community at theend of a transitional period not exceeding 10 years;
Whereas, until 31 December 2000 at the latest, in twofive-year stages as
part of a dynamic process in conjunction with the gradual entry of theCanary Islands into the customs union, it is desirable to authorize anumber of total or partial exemptions for local products from applicationof the new so-called ‘arbitrio sur la production et sur les importations(APIM)’ (tax on production and imports) tax, provided that these
exemptions contribute to promotion of local activities; whereas,
however, application of this charge should be suspended for productscoming under the common agricultural policy until the application ofthat policy, it being understood that, when these products are importedfrom non-member countries, the provisions in force in the Canary
Islands in respect of trade with such countries shall be maintained until
the same date;
Whereas the dismantling of this charge will have to be accompanied by
the gradual adoption of the common customs tariff as from the entry into
force of this Regulation and for the same transitional period, so as toensure the complete integration of the Canary Islands into the customsunion by 31 December 2000;
Whereas, however, as regards products coming under the common
agricultural policy, application of the Common Customs Tariff and otherimport duties is dependent on the entry into force of the specificmeasures tosupply the Canary Islands with essential agriculturalproducts; whereas at all events the gradual application of the Common
Customs Tariff to the Canary Islands may be accompanied, where
appropriate, by specific tariff measures or derogations from the commoncommercial policy for certain sensitive products; whereas such measuresmay alsobe taken in respect o f the arrangements applicable tofreezones;
Whereas the charge known as the ‘arbitrio insular — tarifa especial’
applicable to products supplied by other parts of the Community on theterms set out in Article 6 (3) of Protocol 2 shall not be extended beyond31 December 1992 except as applied on a case-by-case basis, until 311991R1911 — EN — 01.01.1992 — 001.001 — 3
(1) OJ NoL 145, 13. 6. 1977, p. 1.
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December 2000 at the latest, to be decided upon by the Council; whereas
the levying of this charge on products imported into the Canary Islandsfrom nonCommunity countries will have to be phased out from 1
January 1996 sothat it is co mpletely eliminated by 31 December 2000,
without prejudice to obligations under existing arrangements;
Whereas provision should be made for the possibility of applying
safeguard measures until 31 December 1999 at the latest,
HAS ADOPTED THIS REGULATION:
Article 1
The provisions of the Treaties and the acts of the institutions of the
European Communities in respect of which the Act of Accessionprovided for derogations shall apply to the Canary Islands on the termsset out in this Regulation.
Article 2
1. On the entry into force of the specific arrangements referred to in
paragraph 2, the common agricultural policy shall apply to the CanaryIslands on the terms laid down for mainland Spain. However:
— the supplementary trade mechanism provided for in the Act of
Accession shall not apply to the entry into the Canary Islands of theproducts in question,
— the rules in force for mainland Spain shall apply to products
originating in the Canary Islands and sent to other parts of theCommunity upon entry into force of this Regulation.
2. Application of the common agricultural policy shall be accom-
panied by specific supply arrangements.
3. Application of the common agricultural policy shall take account
of the special features of Canary Islands production.
Article 3
The common fisheries policy shall apply to the Canary Islands on the
terms laid down for mainland Spain, as from the entry into force of thisRegulation. Application of the common fisheries policy shall beaccompanied by specific measures designed to take account, where
necessary, of the special features of Canary Islands production.
Article 4
1. Pursuant to Article 26 in conjunction with Annex I, V, 2 to the Act
of Accession amending Article 3(2) of the Sixth Directive 77/388/EEC,
the territory of the Canary Islands shall remain outside the field ofapplication of the common VAT system.
2. Pursuant to Article 26 in conjunction with Annex I, V, 3 and 4 to
the Act of Accession, Spain may refrain from applying the provisions ofDirectives 72/464/EEC(
1) and 79/32/EEC(2) tothe Canary Islands.
Article 5
1. For a transitional period which shall not extend beyond 31
December 2000, the Spanish authorities are hereby authorized to imposea tax on production and imports (APIM) on all products entering orproduced in the Canary Islands. However, in respect of products coming
under the common agricultural policy this possibility may not be
implemented until the entry into force of the specific supplyarrangements referred toin Article 2(2).1991R1911 — EN — 01.01.1992 — 001.001 — 4
(1) OJ NoL 303, 31. 12. 1972, p. 1.
(2) OJ NoL 10, 16. 1. 1979, p. 8.
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2. By 31 December 1995, the rates for the tax shall be set in
conformity with paragraph 3. As from 1 January 1996, these rates shallbe reduced by 20% each year sothat the tax will disappear by the end o f
the period laid down in paragraph 1.
3. The rates applicable may vary depending on the category of
product between 0,1 and 5 %; these rates may, however, rise to 15 % in
the case of manufactured tobacco (CN codes 2402 10 00 and2402 20 00). They may under nocircumstances be increased by mo rethan 15 % of the initial rate. This variation in rates must in no case besuch as to give rise to discrimination against products of Communityorigin.
4. During the transitional period referred to in paragraph 1, in view of
the specific situation of the Canary Islands and the prospect of their fullintegration into the customs union, exemptions from the tax, partial or
total, depending on economic requirements, may be authorized for local
products up to 31 December 1995. Such exemptions must form part ofthe strategy for the economic and social development of the CanaryIslands, taking account of the Community support framework, and helpto promote local activities, though they must not be such as to change
trading conditions to an extent contrary to the common interest.
5. The arrangements for exemptions adopted by the competent
authorities pursuant to paragraph 4 shall be notified to the Commission,
which shall inform the Member States thereof and have two months to
assess their conformity with the aims defined in that paragraph. If theCommission has made no comment within that period, the arrangementshall be deemed tohave been appro ved.
6. During 1995, the Commission, after consulting the Spanish
authorities, shall examine the impact of the measures taken on theeconomy of the Canary Islands and the prospects for their integrationinto the Community's customs territory. On the basis of thisexamination, the Spanish authorities may be authorized, in accordance
with the criteria in paragraph 4 and the procedure in paragraph 5, to
maintain the exemptions in force, in whole or in part, until 31 December2000 at the latest.
Article 6
1. For a transitional period, which shall not extend beyond 31
December 2000, the Common Customs Tariff (CCT) shall be
progressively introduced in accordance with the following timetable;
— up to31 December 1992, the rates o f duty applicable shall be equal
to 30 % of the CCT rates; from 1 January 1993, these rates shall beequal to35 % o f the CCT rates, and shall rise to40 % o f the CCTrates from 1 January 1994 and to 50 % thereof from 1 January 1995;
— from 1 January 1996 onwards, these rates shall be increased by 10 %
per year sothat the CCT shall apply in full tothe Canary Islands atthe end of the transitional period.
2. However, application of the CCT and other import duties
applicable under the common agricultural policy shall be suspendeduntil the entry into force of the specific supply arrangements referred toin Article 2 (2).
3. Application of the CC T to the Canary Islands shall be without
prejudice to any specific tariff measures or derogations from thecommon commercial policy, should the need arise, in respect of certainsensitive products. Customs measures may also be taken in respect of
the arrangements applicable tofree zo nes.
4. The charge known as the ‘arbitrio insular — tarifa especial’ of the
Canary Islands shall be applied to products supplied by other parts of the
Community on the terms laid down in Article 6 (3) of Protocol 2 to the
Act of Accession, though it may not be continued beyond 31 December1992. On a case-by-case basis, however, the Council may, at Spain'srequest and in accordance with the procedure referred to in Article 6 (3)of Protocol 2, authorize the application of this charge to certain sensitiveproducts until 31 December 2000 at the latest. Without prejudice to1991R1911 — EN — 01.01.1992 — 001.001 — 5
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obligations arising out of existing agreements, the levying of this charge
on imported products originating in non-Community countries shall bephased out from 1 January 1996 so as to be completely eliminated by 31
December 2000.
5. Where it is found that application of the first paragraph leads to a
deflection of trade, the Commission may decide that the difference inimport duties shall be levied on goods in free circulation in the CanaryIslands when these are introduced into the other parts of theCommunity's customs territory.
Article 7
The common commercial policy shall apply to the Canary Islands on the
terms laid down for Spain in the Act of Accession without prejudice to
the specific measures referred toin Articles 2 (2), 6 (3) and 10 (3) o f this
Regulation.
Article 8
The Commission shall adopt appropriate measures to prevent any
speculative movement or deflection of trade resulting from theamendment of the trade arrangements applicable to the Canary Islands.
Article 9
The Council, on a proposal from the Commission and after consulting
the European Parliament and the Economic and Social Committee, shalladopt a programme of options specific to the remote and insular natureof the Canary Islands. This programme shall include the specific
measures referred toin Article 2 (2) and (3), Article 3 and Article 6 (3).
This multi-sector programme of operations comprising legislativemeasures and financial commitments relating to the application of thecommon policies to reflect constraints specific to the Canary Islands,shall be given effect before 31 December 1992 by the adoption by the
Council or the Commission, as the case may be, of the necessary legal
acts, in accordance with the provisions of the Treaty.
Article 10
1. This Regulation shall enter into force on 1 July 1991.2. The provisions of this Regulation concerning the application of the
common agricultural policy shall apply from the entry into force of thespecific supply arrangements provided for in Article 2(2). Thosearrangements shall enter intofo rce nolater than ►
M11 July 1992 ◄.
However, the provisions of Protocol 2 to the Act of Accession on accessfor products originating in the Canary Islands to the rest of the
Community shall expire on the entry into force of this Regulation,
subject toparagraph 3.
3. The provisions of Protocol 2 to the Act of Accession relating to
bananas shall continue to apply.
Article 11
The safeguard measures provided for in Article 379 of the Act of
Accession shall apply, in the eventualities provided for in that Article, toany sector affected by the new arrangements integrating the CanaryIslands into the Community, but only until 31 December 1999.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1991R1911 — EN — 01.01.1992 — 001.001 — 6