1989D0688 — EN — 01.01.2003 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILDECISION
of22December 1989
concerningthedockduesintheFrenchoverseasdepartments
(89/688/EEC)
(OJ L 399, 30.12.1989, p. 46)
Amended by:
Official Journal
No page date
►M1Council Decision 2002/973/EC of 10 December 2002 L 337 83 13.12.2002
▼B
COUNCILDECISION
of22December 1989
concerningthedockduesintheFrenchoverseasdepartments
(89/688/EEC)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community, and in particular Articles227 (2) and 235 thereof,
Having regard to the 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, pursuant to Article 227 (2) of the Treaty, the institutions of
the Community will, within the framework of the proceduresprovidedfor in the Treaty, take care that the economic and social developmentof the French overseas departments is made possible; whereas, in the
case in point, the Treaty has not provided the powers required to this
end and it istherefore appropriate to have recours e to Article 235 ofthe Treaty;
Whereasaction to promote the economic and s ocial development of the
French overseas departments in the past has taken the form of isolated
measures; whereas, however, by means of Decision 89/687/EEC(
4), the
Council established an action programme for the said departments,known as‘Pos eidom’; whereasthisprogramme containsa tax compo-nent which needsto be implemented;
Whereas the dock dues at present constitute a means of support for
local production, which hasto contend with the problemsof remote-ness and insularity;
Whereas they also are a vital instrument of self-reliance and local
democracy, the resources of which must constitute a means ofeconomic and social development of the French overseas departments;
Whereas the dock dues system in its present form has features,
however, which necessitate its reform as a means of integrating theFrench overseas departments fully into the process of completing theinternal market, while taking account of their fragile economic struc-ture;
Whereas this system should be adjusted, over a period of time that is
convenient for both local and national authorities, into a system ofinternal taxation applicable to all productsmarketed in the Frenchoverseas departments;
Whereas, however, for the purposes of creating, maintaining and devel-
oping activities in the French overseas departments, it would beadvisable to authorize the local authorities to exempt local activitieseither totally or partially, according to economic requirements, from
the application of the new dock duesfor a period not exceeding, in
principle, 10 years;
Whereas, in order to see to it that exemptions comply with the rules of
the Treaty and to ensure the necessary coordination with the general
aims pursued by the Community, the Council should entrust theCommission with the task of giving a ruling, within a period of twomonths, bearing in mind the economic and social development strategyof each French overseas department, on the exemption arrangements,submitted by regional authorities, the object of which must be to help1989D0688 — EN — 01.01.2003 — 001.001 — 2
(1) OJ No C 53, 2. 3. 1989, p. 12.
(2) Opinion delivered on 14 December 1989 (not yet published in the Official
Journal).
(3) OJ No C 159, 26. 6. 1989, p. 56.
(4) See page 39 of thisOfficial Journal.
▼B
the economic and social development of these regions, in accordance
with Article 227 (2) of the Treaty;
Whereas these exemption arrangements should be temporary and
should normally be terminated 10 years after the reform of the system;whereasat the end of thistime the tax arrangementss hould thereforeasa rule be fully in line with the principlesof Article 95 of the Treaty,it being understood that support measures with the same aims can still
be adopted in the context of regional aid and in compliance with the
provisions of Articles 92 to 94; whereas the Commission will presenta report to the Council before the expiry of this10-year period,concerning the implementation of the arrangementsand their impacton the development of the overseas departments, together, whereappropriate, with a proposal directed towards maintaining the possibi-
lity of exemptions;
Whereas, pending reform of dock dues, France should be authorized to
maintain, until 31 December 1992 at the latest, dock dues arrangementsin their present form, subject to certain conditions which guarantee that
they affect the common market as little as possible and are used with
the sole aim of Article 227 (2) of the Treaty,
HAS ADOPTED THIS DECISION,
Article 1
By 31 December 1992 at the latest, the French authorities shall take the
necessary measures for the dock dues arrangements at present in forcein the French overseas departments to apply, in accordance with theprinciplesand proceduress et out in Articles2 and 3, to all productswhether imported into or produced in those areas.
Article 2
1. The revenue from this tax shall be put to use by the competent
authorities of each French overseas department in such a way as toencourage as effectively as possible its economic and social develop-ment. The Commission shall be informed at the earliest opportunity of
the measures adopted by the competent authorities in order to achieve
thisobjective.
2. The competent authoritiesof each French overs easdepartment
shall establish a basic rate of tax. This rate may be adjusted according
to the categories of products. This adjustment shall in no case be such
as to maintain or introduce discrimination against products from theCommunity.
3. In the light of the specific constraints on the French overseas
departmentsand with a view to achieving the objective referred to in
Article 227 (2) of the Treaty, partial or total exemptionsfrom the
charge according to economic requirements, may be authorized forlocal production activities ►
M1for a period not exceeding 11
years◄from the date of introduction of the system of changes under
the conditions laid down in Article 3. These exemptions must contri-
bute to the promotion or maintenance of an economic activity in the
French overseas departments and be in line with the economic andsocial development strategy of each French overseas department, takingaccount of itsCommunity aid framework, while not being s uch astoadversely affect the terms of trade to an extent contrary to the commoninterest.
Exemption arrangementsadopted by the competent authoritiesin each
French overseas department shall be notified to the Commission, whichshall inform the Member States thereof and define its position withintwo months on the basis of the above criteria. If the Commission has
not defined its position within that period, the arrangement shall be
deemed to be approved.
The Commission shall submit to the Council a report on the implemen-
tation of the exemption arrangementsno later than five yearsafter theintroduction of the system of charges in question.1989D0688 — EN — 01.01.2003 — 001.001 — 3
▼B
Article 3
Not later than one year before the end of the period provided for in
Article 2 (3), the Commission shall submit to the Council a report on
the implementation of the arrangementsreferred to in Article 2, in
order to ascertain the impact of the measures adopted on the economiesof the French overseas departments and their contribution to thepromotion or maintenance of local economic activities. The matters tobe covered in the report shall include the effect of the system ofcharges in question on the economic and social adjustment of the
French overseas departments taking as criteria the level of unemploy-
ment, the balance of trade, the regional gross domestic product bothon the free movement of productswithin the Community and onregional cooperation between the French overseas departments andtheir neighbours.
In the light of the report's conclusions, the Commission, taking into
account the objective regarding the economic and social development
of the French overseas departments set out in Article 227 (2) of theTreaty shall, if necessary, at the same time submit to the Council aproposal for maintaining the possibility of exemptions.
Support measures with the same objectives may be taken in the context
of regional aid.
Article 4
Pending implementation of the reform of the dock duesarrangements
in accordance with the principless et out in Article 1, the FrenchRepublic shall be authorized to maintain the current dock dues arrange-
ments, until not later than 31 December 1992, on condition that any
proposal concerning extension of the list of products subject to dockdues or any increase in the rates thereof is notified to the Commission,which may oppose it within two months. The Commission shall alsoexamine with the competent local authoritiesany changesthat have
taken place since 1 January 1980.
Article 5
This Decision is addressed to the French Republic.1989D0688 — EN — 01.01.2003 — 001.001 — 4