Proposal for a Council Regulation on the application of the provisions of Community law to the Canary Islands
Date: 2001-01-09
Institutions: European Commission
Subjects: Canary Islands, fiscal policy, import tax, renewal of an agreement

31.7.2001

EN

Official Journal of the European Communities

C 213 E/21

Proposal for a Council Regulation on the application of the provisions of Community law to the
Canary Islands

(2001/C 213 E/04)

COM(2000) 891 final (cid:151) 2000/0353(CNS)

(Submitted by the Commission on 9 January 2001)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 299(2) 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

(4) However the Spanish authorities have asked for the APIM
to continue at the level as at 31 December 2000, in order
to safeguard economic activity in the sectors concerned in
the Canary Islands and to ensure a transition up to the
introduction of
implementing
Article 299(2) of the EC Treaty.

the new tax measure

(5) In order to ensure continuity with existing measures,

in
terms of current exemptions and the applicable rates of
the APIM,
the level applying at 31 December 2000
should therefore be authorised for a short period,

Having regard to the Committee of the Regions,

HAS ADOPTED THIS REGULATION:

Whereas:

Article 1

(1) Article 5(1) of Council Regulation (EEC) No 1911/91 of
26 June 1991 (1) authorises
the levying of a tax on
production and imports (APIM) up to 31 December 2000.

(2) The Commission must ensure that Article 299(2) of the EC
Treaty is applied in various areas including tax policy; in its
report of 14 March 2000 to the Council and the European
Parliament (2) it undertook to do so in partnership with the
Member States concerned on the basis of requests from
them.

(3) The new tax which the Spanish authorities intend to
introduce in the Canary Islands to offset the handicaps
referred to in Article 299(2) of the EC Treaty must be
assessed in the light of the principle laid down by Article
299 that the measures adopted must not undermine the
integrity and the coherence of the Community legal order,
including the internal market and common policies. The
process of evaluation will continue after 31 December
2000. The Commission finds that the measures notified
and discussions must
criteria
do not
therefore be continued with the Spanish authorities.

satisfy

these

1.
For a transitional period which not extend beyond
31 December 2001, the Spanish authorities are hereby auth-
orised to impose a tax on production and import on all
products entering or produced in the Canary Islands at rates
which shall not exceed those in force on 31 December 2000 as
a result of the application of Article 5 of Council Regulation
(EEC) No 1911/91 of 26 June 1991.

2.
During this period and in respect of the products and
categories of products to which paragraph 1 applies, total or
partial exemption from tax may be applied in respect of locally
produced products.

Article 2

This Regulation shall enter into force on the day of its publi-
cation in the Official Journal of the European Communities.

This Regulation shall be applicable from 1 January 2001.

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

(1) OJ L 171, 29.6.1991, p. 1.
(2) COM(2000) 147 final.