Proposal for a Council Regulation (EC) amending Regulation (EEC) No 1911/91 on the application of the provisions of Community law to the Canary Islands
Date: 1999-06-03
Institutions: European Commission
Subjects: Canary Islands, European integration, customs territory (EU), customs union

C 274 E/8

EN

Official Journal of the European Communities

28.9.1999

Proposal for a Council Regulation (EC) amending Regulation (EEC) No 1911/91 on the application
of the provisions of Community law to the Canary Islands

(1999/C 274 E/02)

COM(1999) 226 final (cid:151) 1999/0111(CNS)

(Submitted by the Commission on 3 June 1999)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community,

Having regard to the Act of Accession of Spain and Portugal,
and in particular the first paragraph of Article 25(4) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of
Committee,

the Economic and Social

(1) Whereas, by virtue of Article 25 of the Act of Accession of
Spain and Portugal, the Treaties and the acts of the insti-
tutions of the Communities apply to the Canary Islands,
subject to the derogations set out in that Article and in
Protocol 2 to that Act;

to their remoteness,

(2) Whereas, on account of their geographical situation, the
in
Canary Islands are faced with special difficulties due,
particular,
their
volcanic terrain unpropitious to the development of agri-
cultural and industrial production and their lack of natural
resources; whereas the Council has accordingly adopted a
number of measures to integrate the region more fully into
the Community and the customs union in particular;

their island status,

(3) Whereas,

indirect

existing

region’s

in this

context,

island status

and geographical

taxation
arrangements intended in particular to compensate for
the
isolation
needed gradual reform and modernisation in accordance
with Community legislation; whereas,
to that end and
among other measures adopted, Council Regulation (EEC)
No 1911/91 (1), as amended by Regulation (EEC) No
284/92 (2), allowed a new tax on production and imports
(the (cid:145)arbitrio sobre la producci(cid:243)n y sobre las importaciones(cid:146)
(cid:151) APIM) to be applied in the Canary Islands until 31
December 2000;

(4) Whereas this temporary tax is intended to enable local
production to adjust
the single
market through a system of exemptions; whereas certain
total or partial exemptions from the tax are accordingly

to the requirements of

(1) OJ L 171, 29.6.1991, p. 1.
(2) OJ L 31, 7.2.1992, p. 6.

granted in respect of locally produced goods, according to
economic needs and on condition that such exemptions
contribute to the promotion of
local activities without
being liable to affect
trading conditions to an extent
contrary to the common interest;

(5) Whereas, pursuant to Article 5(6) of Regulation (EEC) No
1911/91, the Commission has examined the impact of the
measures taken in the context of the APIM on the economy
of the Canary Islands and the prospects for integration of
the
territory;
whereas that examination has found that the impact of
eliminating the APIM is broadly positive as regards prices
and negative as
far as output and employment are
concerned;

region into the Community’s

customs

varies

greatly

to the

according

(6) Whereas the negative impact on output and employment
nevertheless
sector
concerned; whereas, although the time that has elapsed
has allowed most sectors to adjust, this is not the case
for certain products
the
Commission has, at the request of the Spanish authorities,
sectors and
accordingly studied the most vulnerable
identified the sensitive products, and has concluded that
such vulnerability could in some cases lead to the virtual
disappearance of the sector concerned;

in sensitive sectors; whereas

(7) Whereas, after consultation with the Spanish authorities, it
has become clear that the phasing-out of the tax should be
suspended until 30 June 2000 in the case of certain
sensitive products,
in order to facilitate their adjustment
to market conditions before the tax disappears; whereas
this suspension does not call into question the objectives
of introducing the Common Customs Tariff and eliminating
the APIM, but is confined solely to mitigating the effects of
the economic adjustments which are necessary in order to
arrive at abolition of the tax;

(8) Whereas Regulation (EEC) No 1911/91 should therefore be

amended accordingly;

(9) Whereas the APIM should disappear on 31 December
the Commission will
2000; whereas, before that date,
nevertheless examine with the Spanish authorities
the
impact of suspending the phasing-out of the tax on the
economic sectors concerned, and more particularly on
the products covered by this Regulation; whereas, in the
light of
the
if necessary, present to the Council a
Commission will,
proposal concerning the measures to be taken under the
Treaty to avoid jeopardising the existence of certain local
production activities that are particularly vulnerable, whilst
still ultimately achieving the objective of eliminating the
tax,

conclusions of

examination,

that

the

28.9.1999

EN

Official Journal of the European Communities

C 274 E/9

HAS ADOPTED THIS REGULATION:

the case of the products listed in the Annex to this Regu-
lation.(cid:146)

Article 1

2. An Annex as shown in the Annex hereto is added.

Regulation (EEC) No 1911/91 is hereby amended as follows:

1. The following subparagraph is added to Article 5(2):

(cid:145)By way of derogation from the provisions of the preceding
paragraph, the reduction in the rates of the tax shall be
suspended from 1 January 1999 until 30 June 2000 in

Article 2

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

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