Proposal for a COUNCIL REGULATION extending the date of application of Regulation (EEC) No 3621/92 temporarily suspending the autonomous Common Customs Tariff duties on imports of certain fishery products into the Canary Islands and Regulation (EC) No 527/96 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

(presented by the Commission)

EXPLANATORY MEMORANDUM

Council Regulation (EEC) No 3621/92 of 14 December 1992 temporarily suspending the autonomous Common Customs Tariff duties on imports of certain fishery products into the Canary Islands and 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 expire on 31 December 2000.

In October and November 2000 the Spanish authorities requested to maintain the Common Customs Tariff measures for the Canary Islands beyond the Year 2000 and submitted some documentation justifying their request.

Since the transitional period for introduction of the Common Customs Tariff on the Canary Islands set in Article 6 (1) of Council Regulation (EEC) No 1911/91 will be extended by one year and given the fact that time to evaluate the documentation was insufficient to reach a conclusion whether the maintaining of the measures is still justified it seems appropriate in order to ensure the continuity of the treatment to extend the application of Council Regulation (EEC) No 3621/92 and Council Regulation (EC) No 527/96 till 31 December 2001.

After the completion of the above mentioned evaluation the Commission will make a new proposal taking into account the objectives of Article 299 (2) of the Treaty.

Proposal for a COUNCIL REGULATION extending the date of application of Regulation (EEC) No 3621/92 temporarily suspending the autonomous Common Customs Tariff duties on imports of certain fishery products into the Canary Islands and Regulation (EC) No 527/96 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 26 thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C , , p. .

Whereas:

(1) Council Regulation (EEC) No 3621/92 of 14 December 1992 temporarily suspending the autonomous Common Customs Tariff duties on imports of certain fishery products into the Canary Islands [2] and 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 [3] expire on 31 December 2000.

[2] OJ L 368 of 17.12.1992, p. 1

[3] OJ L 78 of 28.3.1996, p. 1

(2) The transitional period for introduction of the Common Customs Tariff on the Canary Islands as set in 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 [4] also expires on 31 December 2000.

[4] OJ L 171 of 29.6.1991, p. 1

(3) In October and November 2000 the Spanish authorities requested to maintain the Common Customs Tariff measures for the Canary Islands beyond the Year 2000 and submitted some documentation justifying their request.

(4) In view of this request it was decided to extend the transitional period set in Article 6 (1) of Regulation (EEC) No 1911/91 till 31 December 2001.

(5) The time to evaluate the documentation was insufficient to reach a definitive conclusion whether the maintaining of the measures for the requested period is still justified. Since the immediate termination of these measures would have very likely a negative effect on the local production it is necessary to ensure the continuity of the said treatments. The date of application of Regulation (EEC) No 3621/92 and Regulation (EC) No 527/96 should therefore be extended till 31 December 2001.

(6) After the completion of the above mentioned evaluation the Commission will make, if necessary, a new proposal taking into account the aims of Article 299 (2) of the Treaty.

HAS ADOPTED THIS REGULATION:

Article 1

1. In Article 1 (1) of Regulation (EEC) No 3621/92 the date "31 December 2000" shall be replaced by "31 December 2001".

2. In Article 1 (2) and Annex II, III and IV of Regulation (EC) No 527/96 the date "31 December 2000" shall be replaced by "31 December 2001".

3. In Annex III and IV of Regulation (EC) No 527/96 the date "1 January 2001" shall be replaced by "1 January 2002".

Article 2

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

It shall apply from 1 January 2001.

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

Done at Brussels,

For the Council

The President

FINANCIAL STATEMENT

1. Title of operation

Proposal for a Council Regulation extending the date of application of Regulation (EEC) No 3621/92 temporarily suspending the autonomous Common Customs Tariff duties on imports of certain fishery products into the Canary Islands and Regulation (EC) No 527/96 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

2. Budget heading(s) involved

Chapter 12, Article 120 (1210 + 1060)

3. Legal basis

Article 26 of the EC Treaty

4. Description of operation

Suspension of Common Customs Tariff duties for the products in question.

5. Financial impact

A. Industrial products

On the basis of the statistics on imports into the Canary Islands in the period 1996-99 and the average customs duties applicable to the products concerned in 2001, the estimated loss of own resources is as follows.

Duties foregone (EUR) // 2001

Annex I // 808,000

Annex IIa // 740,000

Annex IIb // 15,410,000

Total // 16,958,000

B. Fishery products

The estimated loss of own resources is as follows:

>TABLE POSITION>

C. Total:

The total estimated loss of own resources is therefore as follows.

Duties foregone (EUR) // 2001

Industrial products // 16,958,000

Fishery products // 4,342,800

Total // 21,300,800

6. Fraud prevention measures

The end-use of the products covered by this Regulation will be controlled in accordance with Articles 291 to 300 of Commission Regulation (EEC) No 2454/93 laying down provisions for the implementation of the Community Customs Code.