1991R1911 — EN — 18.12.1999 — 002.001 — 1
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►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:
OfficialJournal
No page date
►M1 CouncilRegul ation (EEC) No 284/92 of 3 February 1992 L 31 6 7.2.1992
►M2 CouncilRegul ation (EC) No 2674/1999 of 13 December 1999 L 326 3 18.12.1999
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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 proposalfrom the Commission (1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the Economic and SocialCommittee (3),
Whereas, by virtue of Article 25 of the Act of Accession, the Treaties
and the acts of the 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 internalmarket; whereas the arrangements l aid 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 gradualprocess over an appropriate transitionalperiod,without prejudice to any specialmeasures 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 to be the subject of a
specialprogramme of options specific to the remote and insul ar 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 Islandsuntilthe entry into force of such suppl y arrangements with the exception1991R1911 — EN — 18.12.1999 — 002.001 — 2
(1) OJ No C 67, 15. 3. 1991, p. 8.
(2) OJ No C 158, 17. 6. 1991.
(3) Opinion dlivered on 30 May 1991 (not yet published in the Official journal).
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of those governing the access of agricultural products originating in the
Canary Islands to the other parts of the Community; whereas theprovisions of Protocol2 rel ating 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 to specific measures to be determined under
existing legislation;
Whereas historicalrecognition of the Canaries' isl and status has been
reflected in successive special economic and tax arrangements designed
to compensate for the disadvantages deriving from the archipelago'sgeographicalisol ation;
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 gradualintroduction of up-to-date indirect taxation as an instrument
of economic and social development and the financing of local budgets,
creating the conditions for totalintegration into the Community at theend of a transitionalperiod not exceeding 10 years;
Whereas, until31 December 2000 at the l atest, in two five-year stages as
part of a dynamic process in conjunction with the gradualentry 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 gradualadoption 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 to supply 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 commoncommercialpol icy for certain sensitive products; whereas such measuresmay also be taken in respect of the arrangements applicable to freezones;
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 — 18.12.1999 — 002.001 — 3
(1) OJ No L 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 so that it is completely eliminated by 31 December 2000,
without prejudice to obligations under existing arrangements;
Whereas provision should be made for the possibility of applying
safeguard measures until31 December 1999 at the l atest,
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 specialfeatures of Canary Isl ands 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 specialfeatures of Canary Isl ands 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) to the Canary Islands.
Article 5
1. For a transitionalperiod which shal lnot 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 to in Article 2(2).1991R1911 — EN — 18.12.1999 — 002.001 — 4
(1) OJ No L 303, 31. 12. 1972, p. 1.
(2) OJ No L 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 so that the tax will disappear by the end of
the period laid down in paragraph 1.
By way of derogation from the provisions of the first subparagraph, the
reduction in the rates of the tax shall be suspended from 30 December
1999 until30 June 2000 in the case of the products l isted in the Annex.
3. The rates applicable may vary depending on the category of
product between 0,1 and 5 %; these rates may, however, rise to 15 % inthe case of manufactured tobacco (CN codes 2402 10 00 and
2402 20 00). They may under no circumstances be increased by more
than 15 % of the initialrate. This variation in rates must in no case besuch as to give rise to discrimination against products of Communityorigin.
4. During the transitionalperiod 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, partialortotal, depending on economic requirements, may be authorized for local
products up to 31 December 1995. Such exemptions must form part of
the strategy for the economic and socialdevel opment of the CanaryIslands, taking account of the Community support framework, and helpto promote local activities, though they must not be such as to changetrading 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 the
Commission has made no comment within that period, the arrangementshall be deemed to have been approved.
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 accordancewith the criteria in paragraph 4 and the procedure in paragraph 5, to
maintain the exemptions in force, in whole or in part, until 31 December
2000 at the latest.
Article 6
1. For a transitionalperiod, which shal lnot extend beyond 31
December 2000, the Common Customs Tariff (CCT) shall beprogressively introduced in accordance with the following timetable;
— up to 31 December 1992, the rates of duty applicable shall be equal
to 30 % of the CCT rates; from 1 January 1993, these rates shall be
equalto 35 % of the CCT rates, and shal lrise to 40 % of 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 so that the CCT shall apply in full to the Canary Islands at
the end of the transitionalperiod.
2. However, application of the CCT and other import duties
applicable under the common agricultural policy shall be suspended
untilthe entry into force of the specific suppl y 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 ofthe arrangements applicable to free zones.
4. The charge known as the ‘arbitrio insular — tarifa especial’ of the
Canary Islands shall be applied to products supplied by other parts of theCommunity on the terms laid down in Article 6 (3) of Protocol 2 to the1991R1911 — EN — 18.12.1999 — 002.001 — 5
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Act of Accession, though it may not be continued beyond 31 December
1992. On a case-by-case basis, however, the Councilmay, at Spain'srequest and in accordance with the procedure referred to in Article 6 (3)
of Protocol2, authorize the appl ication of this charge to certain sensitive
products until31 December 2000 at the l atest. Without prejudice toobligations arising out of existing agreements, the levying of this chargeon 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 to in Articles 2 (2), 6 (3) and 10 (3) of 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 to in 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 theCouncilor the Commission, as the case may be, of the necessary l egal
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 the
specific supply arrangements provided for in Article 2(2). Thosearrangements shall enter into force no later than ►
M11 July 1992 ◄.
However, the provisions of Protocol2 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 to paragraph 3.
3. The provisions of Protocol2 to the Act of Accession rel ating 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 — 18.12.1999 — 002.001 — 6
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ANNEX
List of products, referred to in the second subparagraph of Article 5(2),
classified according to the nomenclature of the Common Customs Tariff
(CCT)
Miscellaneous foodstuffs:
0403 10, 0407 00 90, 0701 90, 0702, 0703, 0803, 0901 21, 0901 90 90, 1101,
1601, 1602, 1704 90 71, 1806 (except 1806 20 95), 1901 90 99, 1902,
1904 10 10, 1905 10 00, 1905 20, 1905 30, 1905 40, 1905 90, 2002 10 90,
2002 90 91, 2007 91 10, 2007 99 39, 2008 99 61, 2008 99 68, 2101, 2103, 2105,
2106 90 98, 2309.
Tobacco:
2402 10 00, 2402 20.
Chemicals:
2804 30 00, 2804 40 00, 2851 00 30, 3208, 3209, 3213, 3401, 3402 (except
3402 11 00, 3402 12 00 and 3402 13 00), 3809 91 00.
Paper:
4808, 4818 10, 4818 20, 4818 30, 4818 40, 4819, 4821, 4823 59 10, 4909, 4910,
4911, 5601 22 10, 5601 22 99.
Textiles:
6112 31, 6112 41, 6213, 6302, 6303.
Metalworking industries I:
7308, 7309 00 (except 7309 00 90), 7317, 7325, 7604, 7608, 7610, 9406 00 31.
Other manufactured goods:
3923 10 00, 3923 21 00, 3923 30 10, 3924 10 00, 4012 10, 4418, 4601, 4602,
6802, 7010, 8544 59 10, 9401, 9403, 9404.1991R1911 — EN — 18.12.1999 — 002.001 — 7