Proposal for a Council Regulation amending Regulation (EEC) No 1657/93 temporarily suspending the autonomous Common Customs Tariff duties on certain industrial products intended to equip the free zones of the Azores and Madeira
Date: 2000-09-26
Institutions: European Commission
Subjects: Azores, CCT duties, Madeira, abolition of customs duties, industrial product

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 26.09.2000
COM(2000) 596 final

Proposal for a

COUNCIL REGULATION

amending Regulation (EEC) No 1657/93 temporarily suspending the autonomous
Common Customs Tariff duties on certain industrial products intended to equip the free
zones of the Azores and Madeira

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Commission, assisted by the Economic Tariff Problems Group, reviewed the requests for
temporary suspension of autonomous Common Customs Tariff duties presented to it by the
Member States, including certain requests amending existing suspensions.

The attached proposal concerns certain industrial products intended to equip the free zone of
Madeira, for which a suspension was granted by Council Regulation (EEC) No 1657/93 (cf.
OJ L 158, 30 June 1993, p. 1).

Following this examination, the Commission considers that the suspension of tariffs for these
products is justified.

The period of validity of the proposed measure is eight years.

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Proposal for a

COUNCIL REGULATION

amending Regulation (EEC) No 1657/93 temporarily suspending the autonomous
Common Customs Tariff duties on certain industrial products intended to equip the free
zones of the Azores and Madeira

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Economic Community, and in
particular Article 26,

Having regard to the proposal of the Commission,

Whereas :

(1)

(2)

(3)

(4)

(5)

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Regulation (EEC) No 1657/931 establishes, until 31 December 2000, a temporary
suspension of autonomous Common Customs Tariffs for certain industrial products
intended to equip the free zones of the Azores and Madeira.

As provided for in Article 3 of the above Regulation, the Commission, after consulting
the competent Portuguese authorities, examined the effects of the measures adopted on
the development of the free zone of Caniçal (Madeira), which is at present the only
free zone in the outermost regions of Portugal.

Initially, these measures had a positive effect on the creation and establishment of new
businesses and on the development of a number of industrial activities, especially in
the textiles, plastics and glass sectors. More recently, economic conditions and
infrastructure problems have led to a slow-down in the emergence of new industries
and paralysed part of the processing sector. This situation should come to an end once
the free-zone infrastructure and enlargement work presently being carried out
is
completed, and new innovative processing industries are established, alongside those
which perform simpler recycling, packaging and storage tasks.

For their part, the Portuguese authorities have expressed an interest in extending these
measures for a period of time in no circumstances shorter than that which was
previously granted, so as to encourage industrial investment in the Madeira free zone,
and thus promote the region’s socio-economic development.

Upon detailed examination of the situation and the impact of the measures adopted,
such an extension of the time-limit on these measures does indeed appear likely to
give a further boost to the development of industrial activities in the free zone; the

OJ L 158, 30 June 1993, p.1. Regulation last amended by Regulation (EC) No 3256/94 (OJ L 339,
29.12.1994, p.1).

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suspension of the autonomous Common Customs Tariffs for capital equipment should
therefore be extended, as requested by the Portuguese authorities.

(6)

Notwithstanding, in order to avoid directly affecting the functioning of the common
market, a time limit must be set for this measure,

HAS ADOPTED THIS REGULATION:

Regulation (EEC) No 1657/93 is amended as follows:

Article 1

In Article 1(1), with regard to the Madeira free zone, the date 31 December 2000 is replaced
by the date 31 December 2008.

Article 2

In the course of the year 2008, after consulting the competent Portuguese authorities, the
Commission will again examine the effects of the measures adopted on the development of
the Madeira free zone and will, if required, make appropriate proposals.

Article 3

This Regulation shall enter into force on the day 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

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FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Proposal
for a Council Regulation amending Regulation (EEC) No 1657/93
temporarily suspending the autonomous Common Customs Tariff duties on certain
industrial products intended to equip the free zones of the Azores and Madeira.

2.

BUDGET HEADING(S) INVOLVED

Chapter 12, Article 120.

3.

LEGAL BASIS

Article 26 of the EC Treaty.

4.

DESCRIPTION OF OPERATION

Suspension of the CCT duties for the above products.

5.

FINANCIAL IMPACT

The following table gives the quantities of the above products actually imported
since the Regulation entered into force:

Year

1993

1994

1995

1996

1997

1998

1999

Total

Annual
average

Import volume in EUR

29 733

436 087

383 290

2 795 485

3 538

44 763

73 363

3 766 261

538 037

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With an average annual import volume of EUR 538 037 and an average custom tariff
of 2.5% for the kinds of capital goods concerned (most of which are covered by
Chapter 84 of the Combined Nomenclature), the loss of own resources can be
estimated at EUR 13 500 a year and at EUR 108 000 for the total duration of the
measure (eight years).

The shortfall in traditional own resources will have to be made up by the Member
States topping up the GNP component.

6.

FRAUD PREVENTION MEASURES

Checks on the end-use of the products covered by this Council Regulation will be
carried out in accordance with Articles 291 to 304 of Commission Regulation (EEC)
No 2454/93 laying down provisions for the implementation of the Community
Customs Code.

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