2002/973/EC: Council Decision of 10 December 2002 amending Decision 89/688/EEC concerning the dock dues in the French overseas departments
Date: 2002-12-10
Institutions: Council of the European Union
Subjects: French overseas department and region, import tax, local tax, tax system

13.12.2002

EN

Official Journal of the European Communities

L 337/83

COUNCIL DECISION

of 10 December 2002

amending Decision 89/688/EEC concerning the dock dues in the French overseas departments

(2002/973/EC)

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Economic Community, and in particular the second subpara-
graph of Article 299(2),

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

Whereas:

Article 2(3) of Council Decision 89/688/EEC of 22
December 1989 concerning the dock dues in the French
overseas departments (2) states that in the light of the
special constraints on the French overseas departments
partial or total exemptions from the charge may be
authorised for local production activities for a period of
not more than 10 years from the date of introduction of
the system of charges. This period expires on 31
December 2002 having been introduced on 1 January
1993 under the French Law of 17 July 1992.

Article 3 of the Decision requires the Commission to
submit a report on the implementation of the arrange-
ments in order to ascertain the impact of the measures
taken and whether exemptions should be maintained. In
the report it presented to the Council on 24 November
1999, the Commission concludes that the four French
overseas departments are in a much more fragile
the
economic and social situation than the rest of
Community because of their outlying geographical posi-
tion and underlines the importance of the dock dues and
exemptions from this charge for local production for
these regions' social and economic development.

According to the Commission report of 14 March 2000
on measures to implement Article 299(2) of the Treaty,
that Article must be implemented in partnership with
the Member States concerned on the basis of detailed
requests from them.

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

tion must be provided by the French authorities and
evaluated by the Commission before long-term arrange-
ments can be drawn up.

However these developments should not prejudice the
necessary continuity in the special tax arrangements for
the overseas departments.

It may be generally stated that there is still a serious
structural deficit
in the French overseas departments'
development. The factors and phenomena exacerbating
this situation and their combined effect have a serious
impact on these departments' economic and social devel-
opment. This
average Gross
is demonstrated by
Domestic Product (GDP) levels which are still less than
50 % of the Community average and sustained rates of
is largely very
in a population that
unemployment
young which are among the highest in the Community.
These indicators confirm that the continuing existence
of these handicaps recognised by Article 299(2) of the
Treaty is a serious obstacle to their development and
justifies maintenance of measures to help offset these
handicaps.

To offset the handicaps of these regions, it is required in
particular that local production be maintained and devel-
oped. The remoteness and isolation of
these regions
from external suppliers and markets increases costs for
local producers. The weakness of the economy is also
exacerbated by the very small size of markets and busi-
nesses and the lack of diversification in production.
Output is less than the average output in other French
departments because of difficulties linked to industrial
equipment and labour skills. These departments' regional
environment is another factor in the lack of business
competitiveness owing to their geographical position in
developing regions. They are poor but highly competi-
tive in terms of production costs and relatively closed to
imports.

On 12 March 2002 France sent a detailed request to the
Commission to extend exemptions from dock dues for a
period of 10 years.

(9)

from dock dues are part of

Exemptions
support
measures for local production and should therefore be
continued.

and
The Commission has
the
considers that
exemptions which will apply when the current arrange-
ments come to an end are required. Additional informa-

request
the content of

further details of

examined this

(10)

For the reasons set out above Decision 89/688/EEC
should be extended for a short period.

(1) Opinion of the European Parliament delivered on 20 November

2002 (not yet published in the Official Journal).

(2) OJ L 399, 30.12.1989, p. 46.

(11)

This Decision is without prejudice to the possible appli-
cation of Articles 87 and 88 of the Treaty,

L 337/84

EN

Official Journal of the European Communities

13.12.2002

HAS ADOPTED THIS DECISION:

Article 3

Article 1

This Decision is addressed to the French Republic.

The expression ‘for a period of not more than 10 years’
in
Article 2(3) of Decision 89/688/EEC shall be replaced by ‘for a
period not exceeding 11 years’.

Done at Brussels, 10 December 2002.

This Decision shall apply from 1 January 2003.

Article 2

For the Council

The President

P. S. MØLLER