ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)418
Vol.1979/0149

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)418final.
Brussels/23July1979
Proposalfora
COUNCILREGULATION (EEC)
amendingRegulation (EEC)No2051/74
onthecustomsprocedureapplicabletocertainproducts
originating inandcomingfromtheFaroeIslands
(submittedtotheCouncilbytheCommission)\
'C0M(79)418final.

JUSTIFICATION
Subject:Amendmenttothetariffarrangements applicabletoimports
fromtheFaroeIslands.
TheCommunitytariffarrangements inrespectoftheFaroe
Islandsarebasedon:
-Article27andProtocolNo2totheActofAccessionasfaras
Denmarkisconcerned;
-theprovisionsofCouncilRegulation (EEC)No2051/74asfaras
theotherMemberStatesareconcerned.
Thishasresultedinthefollowingrulingontheimportation
ofindustrialproducts(Chapter25-99oftheCCT)fromtheFaroeIslands
-anildutytariffinDenmark;
-aspecialtariffinIreland:an80%reductionontherateofduties
obtaininginIrelandin1972;
-aspecialtariffintheUnitedKingdom:exemptionfromduties;
-aspecialtariffinthesixoriginalMemberStates:an80%reduction
ontheCCTdutiesobtainingin1972.
ThismeansthattheCommunityappliesfourdifferenttariffs
tooneterritory,theFaroeIslands.
TheFaroeIslands,however,whichisverypoorlyindustrialized
andhasabout30.000inhabitants,carriesononlyaverylimitedamount
oftradewiththeEEC.
Theimportation ofindustrialproductsfromtheFaroeIslands
concernsonlyafewtariffheadings(yarnofwool,textilearticlesof
wool,ships).The
andhasabout
oftradewith
Thisamountedto7.326.000 EUAin1978.

99%ofthisamountisaccountedforbyDenmark(traditional trade)
wheretheimportsconcernedareexemptfromduty.
ThesixoriginalMemberStatesandIrelandhaveimportedgoods
fromtheFaroeIslandstoanamountofonly64.000EUA,yieldingsome
800EUAinCustomsduties.
Fromthesefiguresitemergesthatthereisnocommonmeasure
betweentheeconomicinterestsinquestionandtheadministrative
complications fortheCommissionarisingoutoftheapplication offour
different customstariffs.
Thegeneralsituationistheresultofunforezeencircumstances .
FortheabovementionedCouncilRegulation (EEC)No2051/74wasadoptedas
an"autonomousandprovisional measure".Theauthors'intentionwasthat
itwouldbereplacedinduecourseby:
-provisionsresultingfromtheaccessionoftheFaroeIslandstothe
Community,or
-measurestobeadoptedinthecontextofanEFTAagreementtobeconcluded
withtheFaroeIslands.
j
Inpractice,however,neitheroftheseopportunities materialized .
Consequently ,thetariffarrangements fortheFaroeIslandsremain ,
incompleteandincoherent.Forharmonization purposes,theCommission
proposesthatthetariffarrangements appliedbytheCommunityasoriginally
constituted andbyIrelandbeadaptedtothetariffarrangements applied
bytheUnitedKingdom,i.e.exemptionfromcustomsdutiesfortheproducts
ofChapters25-99oftheCCT,exceptforsomeproductsmentionedin
Regulation (EEC)Nos2682/72and2783/75.Ashasalreadybeenmentioned,
Denmarkappliesanildutytariffforallindustrialproducts.
Consequently,theCommissionproposestotheCouncilthatit
adopttheRegulationattachedheretoasanAnnexinordertoamend
Regulation (EEC)No2051/74inthesenseindicated.

Proposalfora
CouncilRegulation (EEC)
amendingRegulation (EEC)No2051/74
onthecustomsprocedureapplicabletocertainproducts
originating inandcomingfromtheFaroeIslands
THECOUNCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle113thereof;
HavingregardtotheproposalfromtheCommission;
Whereasthetariffarrangement inrespectofindustrialproductsfromthe
FaroeIslands^providedforinCouncilRegulation (EEC)No2051/74(1)as
amendedbyRegulation (EEC)No1048/76(2),hasnotresultedinthe
application of.auniformcustomstariffbytheCommunity;
Whereasthissituationmustberemedied,
3
HASADOPTEDTHISREGULATION :
Article 1
Regulation (EEC)No2051/741samendedasfollows:
.Article 1isamendedtoreadasfollows
"ForproductsfallingwithinChapters25to99oftheCommonCustomsTariff
originating inandcomingfromtheFaroeIslandsthecustomsdutieson
importsandchargeshavingequivalenteffectsshallbeabolished."
(1)0JNoL212,2.8.1974,p.33
(2)0JNoL120,7.5.1976,p.1

-2-
2.Article3isdeleted.
Article2
ThisRegulationshallenterintoforceon1January1980.
ThisRegulationshallbebindinginitsentiretyanddirectly
applicableinallMemberStates.
DoneatBrussels.
FortheCouncil
ThePresident

7June1979
FINANCIAL MEMORANDUM
1.Budgetheading:Chapter12
2.Titleofthemeasure:DraftCouncilRegulation amendingCouncil
Regulation (EEC)No2051/74onthecustomsprocedureapplicableto
certainproductsoriginating inandcomingfromtheFaroeIslands.
3.Legalbasis:TheTreaty
4..Aimofthemeasure:Elimination ofcustomsdutiesonindustrialproducts
importedfromtheFaroeIslands.
5.Financialconsequences :
5.0Expenditure
5.1Ownresources
(Customsduties)(1)
5.2Methodofcalculation
headingNo60.05
Chapter84
headingNo99.04ThecurrentyearThefollowingyear
801EUA
37.000EUAx2.1%
1.000EUAx2.4%
26.000EUAex777EUA
24EUA
6.31980budgetappropriations YES
Comments:
(1)Itisamatterofthenon-collection ofcustomsduties.