COUNCIL REGULATION (EC) No 527/96 of 25 March 1996 temporarily suspending the autonomous Common Customs Tariff duties and progressively introducing the Common Customs Tariff duties on imports of certain industrial products into the Canary Islands

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 28 thereof,

Having regard to the proposal from the Commission,

Whereas Article 6 (1) of Council Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provisions of Community law to the Canary Islands (1) provides for the Common Customs Tariff (CCT) to be progressively introduced in the course of a transitional period which shall not extend beyond 31 December 2000; whereas, in accordance with Article 7 of that Regulation, the common commercial policy shall apply to the Canary Islands, without prejudice to the specific measures referred to in Article 6 (3) thereof;

Whereas paragraph 7.2 of the Annex to Council Decision 91/314/EEC of 26 June 1991 setting up a programme of options specific to the remote and insular nature of the Canary Islands (Poseican) (2) states that specific tariff measures must continue to be considered and that in principle they must be limited to the transitional period provided for under Article 6 of Regulation (EEC) No 1911/91 for the gradual adoption of the CCT to the Canary Islands;

Whereas Council Regulation (EEC) No 1605/92 of 15 June 1992 temporarily suspending the autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands (3) suspended in full until 31 December 1995 CCT duties applicable to imports into the Canary Islands of the products listed in the Annex to the Regulation which are intended for the Canary Islands' domestic market;

Whereas, in accordance with Article 3 of Regulation (EEC) No 1605/95, the Commission has examined this year the effect of measures adopted in favour of the economy of the Canary Islands; whereas that examination has shown that the suspension of duties on certain industrial products has not had the effect of increasing the volume of imports originating in non-Community countries;

Whereas the progressive introduction of the suspended CCT duties will not in principle have any adverse effect on the sectors concerned by the duty suspensions or, in general, on the Canary Islands' economy as a whole; whereas an appropriate timetable should be laid down for successive increases in the applicable rates of duty;

Whereas, in order to take advantage of the closing date of the transitional period laid down by Regulation (EEC) No 1911/91 and to take account of the request from the Spanish authorities, the duty suspensions under Regulation (EEC) No 1605/92 may be retained in 1996;

Whereas, in view of the foregoing, the progressive introduction of CCT duties must commence on 1 January 1997 until fully applicable on 31 December 2000; whereas, in the case of certain sensitive sectors of the Canary Islands' economy, in particular those processing imported raw materials into finished products and commerce, duties should be introduced in a flexible manner so as to prevent in the early years any adverse effect on production and employment in those sectors;

Whereas the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994, approved by the Community by Decision 94/800/EC (4) provides for bound tariff reductions to be implemented in five equal rate reductions (or 10 rate reductions for certain tariff headings); whereas that progressive reduction, which became operative in 1995, will culminate in a minimum, or even a zero, rate by the end of the period in question; whereas, consequently, duty suspensions should continue in respect of certain industrial products on which CCT duties resulting from the GATT agreements would reach a zero or minimum rate on 31 December 2000, the date on which the transitional period for the Canary Islands expires;

Whereas imports into the Canary Islands of certain goods originating in non-Community countries were non-existent or nearly so during the period in which CCT duty suspensions applied; whereas, consequently, there are no grounds for retaining those suspensions;

Whereas the measures taken under Regulation (EEC) No 1605/92 should be retained, on the one hand, in order to ensure that products on which the suspension of duty is extended and then progressively dismantled are intended solely for the Canary Islands' domestic market and, on the other hand, in order to permit the Commission to be regularly informed of the volume of the imports in question and, if necessary, to adopt provisions designed to prevent any speculative movement of deflection of trade,

HAS ADOPTED THIS REGULATION:

Article 1

1. The Common Customs Tariff duties applicable to imports into the Canary Islands of the products listed in Annexes I and II shall be suspended in full in accordance with the timetables laid down in those Annexes.

2. From 1 January 1997 to 31 December 2000 the Common Customs Tariff duties applicable to imports into the Canary Islands of the products listed in Annexes III and IV shall be progressively introduced in accordance with the provisions of those Annexes.

Article 2

1. The measures referred to in Article 1 shall apply solely to products intended for the Canary Islands' domestic market.

2. The Spanish authorities shall adapt the measures necessary to ensure compliance with paragraph 1 pursuant to the relevant Community provisions on end-use and in particular the levying of Common Customs Tariff duties when the products in question are dispatched to other parts of the customs territory of the Community.

Article 3

With regard to the products referred to in Article 1 the Spanish authorities shall inform the Commission, no later than the 15th of each month, of the volume of imports exempted under the tariff measures provided for in that Article during the preceding month.

In the case of threat of injury, certified in particular by information forwarded to the Commission, for certain sensitive or ultrasensitive products, the Commission shall propose to the Council, at the request of the Spanish authorities, any appropriate measure particular regard being paid to the objectives of Decision 91/314/EEC.

Article 4

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

It shall apply from 1 April 1996.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 25 March 1996.

For the Council

The President

S. AGNELLI

(1) OJ No L 171, 29. 6. 1991, p. 1. Regulation as amended by Regulation (EEC) No 284/92 (OJ No L 31, 7. 2. 1992, p. 6).

(2) OJ No L 171, 29. 6. 1991, p. 5.

(3) OJ No L 173, 15. 6. 1992, p. 31. Regulation as amended by Regulation (EC) No 3012/95 (OJ No L 314, 28. 12. 1995, p. 15).

(4) OJ No L 336, 23. 12. 1994, p. 1.

ANNEX I

List of industrial products, duties on which are suspended in full from 1 April to 31 December 1996

CN code (1)

3901

3904 10 00

4011

4202

4203

4407

4410

4412

4803 00

4805

4808

4810

Chapter 51

Chapter 52

Chapter 54

Chapter 55

5608

Chapter 60

Chapter 61

Chapter 62

Chapter 63

Chapter 64

7213

7304

7312

7601

8415

8418

8422

8427

8431

8450

8469

8470

8471

8472

8473

8501

8517

8518

8519

8520

8521

8522

8523

8524

8525

8526

8527

8528

8529

8701

8702

8703

8704

8705

8706

8707

8708

8711

8712 00

8713

8714

9001

9002

9003

9004

9005

9006

9007

9008

9009

9010

9011

9012

9030

Chapter 91

9207

Chapter 95

(1) Combined Nomenclature codes applicable on 1 January 1996 adopted by Commission Regulation (EC) No 3009/95 of 22 December 1995 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ No L 319, 30. 12. 1995).

ANNEX II

List of industrial products, duties on which are suspended in full from 1 January 1997 to 31 December 2000

CN code (1)

4407

7213

8418 10 91

8418 10 99

8418 21 10

8418 21 59

8418 21 99

8422 19

8422 20

8422 30

8422 40

8422 90

8431 10

8431 31

8431 39

8431 41

8431 42

8431 43

8431 49

8471 60 90

8471 70

8473 10 90

8473 21 90

8473 29 90

8473 30 90

8473 40 90

8473 50 90

8517 11 00

8517 19 90

8519 92 00

8522 90 30

8522 90 93

8523 20 11

8526 91 11

8526 91 19

8529 90 10

8701 30 00

8701 90 11

8701 90 15

8701 90 21

8701 90 25

8701 90 31

8701 90 35

8701 90 39

8701 90 50

8704 10 11

8704 10 19

8704 10 90

8713

8714 20 00

(1) Combined Nomenclature codes applicable on 1 January 1996 adopted by Commission Regulation (EC) No 3009/95 of 22 December 1995 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ No L 319, 30. 12. 1995).

ANNEX III

List of industrial products duties on which will be introduced during the period 1 January 1997 to 31 December 2000 according to the following timetable

Sensitive products

- on 1 January 1997 applicable duty rates will be 5 % of the CCT;

- on 1 January 1998 applicable duty rates will be 15 % of the CCT;

- on 1 January 1999 applicable duty rates will be 30 % of the CCT;

- on 1 January 2000 applicable duty rates will be 60 % of the CCT;

- on 1 January 2001 applicable duty rates will be 100 % of the CCT.

CN code (1)

3901

3904 10

4011

4202

4203

4410

4412

4803 00

4805

4808

4810

5203

5205

5208

5209

5210

5212

Chapter 55

5608

7312

7601

8415

8418 21 51

8418 21 91

8418 22

8418 29

8418 30

8418 40

8418 50

8418 61

8418 69

8418 91

8418 99

8422 11

8427

8431 20

8450

8469

8470

8471 10

8471 30

8471 41

8471 49

8471 50

8471 60 10

8471 60 40

8471 60 50

8471 80

8471 90

8472

8473 10 10

8473 21 10

8473 29 10

8473 30 10

8473 40 10

8473 50 10

8501

8517 19 10

8517 21

8517 22

8517 30

8517 50

8517 80

8517 90

8518

8519 10

8519 21

8519 29

8519 31

8519 39

8519 40

8519 93

8519 99

8520 10

8520 20

8520 32 19

8520 32 50

8520 32 91

8520 32 99

8520 33

8520 39

8520 90

8521

8522 90 91

8522 90 98

8523 11

8523 12

8523 13

8523 20 19

8523 20 90

8523 30

8523 90

8524 10

8524 31

8524 32

8524 39

8524 40 91

8524 40 99

8524 51

8524 52

8524 53

8524 60

8524 91 90

8524 99 00

8529 10

8529 90 51

8529 90 59

8529 90 70

8529 90 81

8529 90 89

8701 10

8701 20

8701 90 90

8702

8706

8711

8712 00

8714 11

8714 19

8714 91

8714 92

8714 93

8714 94

8714 95

8714 96

8714 99

9002

9004

9005

9007

9009

9010

9207

Ultrasensitive products

- on 1 January 1997 applicable duty rates will be 0 % of the CCT;

- on 1 January 1998 applicable duty rates will be 5 % of the CCT;

- on 1 January 1999 applicable duty rates will be 15 % of the CCT;

- on 1 January 2000 applicable duty rates will be 35 % of the CCT;

- on 1 January 2001 applicable duty rates will be 100 % of the CCT.

CN code (2)

4804

Chapter 61

Chapter 62

Chapter 63

Chapter 64

8525

8527

8528

8703

8704 21

8704 22

8704 23

8704 31

8704 32

8704 90

8708

9006

Chapter 91

Chapter 95

(1) Combined Nomenclature codes applicable on 1 January 1996 adopted by Commission Regulation (EC) No 3009/95 of 22 December 1995 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ No L 319, 30. 12. 1995).

(2) Combined Nomenclature codes applicable on 1 January 1996 adopted by Commission Regulation (EC) No 3009/95 of 22 December 1995 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ No L 319, 30. 12. 1995).

ANNEX IV

List of industrial products on which duties will be introduced during the period 1 January 1997 to 31 December 2000 according to the following timetable

- on 1 January 1997 applicable duty rates will be 20 % of the CCT;

- on 1 January 1998 applicable duty rates will be 40 % of the CCT;

- on 1 January 1999 applicable duty rates will be 60 % of the CCT;

- on 1 January 2000 applicable duty rates will be 80 % of the CCT;

- on 1 January 2001 applicable duty rates will be 100 % of the CCT.

CN code (1)

5103

5104

5108

5110

5111

5112

5401

5402

5403

5404

5407

5408

Chapter 60

8522 10

8522 90 10

8526 10

8526 91 90

8526 92

8705

8707

9001

9003

9008

9011

9012

9030

(1) Combined Nomenclature codes applicable on 1 January 1996 adopted by Commission Regulation (EC) No 3009/95 of 22 December 1995 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ No L 319, 30. 12. 1995).