Proposal for a Council Regulation opening and providing for the administration of autonomous Community tariff quotas on imports of certain fishery products into the Canary Islands
Date: 2008-03-07
Institutions: European Commission
Subjects: Canary Islands, fishery product, originating product, tariff quota

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.3.2008 
COM(2008) 129 final 

2008/0054 (CNS) 

Proposal for a 

COUNCIL REGULATION 

opening and providing for the administration of autonomous Community tariff quotas 
on imports of certain fishery products into the Canary Islands 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

Article  5  of  Council  Regulation  (EC)  No  704/2002  temporarily  suspending 
autonomous Common Customs Tariff duties on imports of certain industrial products 
and  opening  and  providing  for  the  administration  of  autonomous  Community  tariff 
quotas on imports of certain fishery products into the Canary Islands.  

•  General context 

Since  1991,  the  European  Union  has  suspended,  partially  or  in  full  the  Common 
Custom Tariff duties on imports of certain fishery products into the Canary Islands. 
The  exceptional  geographical  situation  of  the  Canary  Islands  in  relation  to  the 
sources  of  supply  of  certain  fishery  products  which  are  essential  for  domestic 
consumption  entails  additional  costs  for  this  sector.  This  natural  handicap  can  be 
remedied,  inter  alia,  by  temporarily  suspending  customs  duties  on  imports  of  the 
products  in  question  from  third  countries  within  Community  tariff  quotas  of  an 
appropriate volume. 

•  Existing provisions in the area of the proposal 

The basis for support, Regulation (EC) No 704/2002, expired by 31 December 2006. 

•  Consistency with the other policies and objectives of the Union 

The proposal for the opening and provision of duty free tariff quotas are in line with 
Article  299(2)  of  the  EC  Treaty  providing  for  specific  measures  to  assist  the 
outermost regions. It also corresponds to the Commission's commitment given in its 
Communication on a stronger partnership for the outermost regions of 26 May 2004 
(COM(2004)  343final)  to  consider  the  reduction,  even  elimination,  of  common 
customs tariff duties in order to allow the supply of non-agricultural raw materials to 
promote production in the outermost regions.  

The proposed duty free tariff quotas are to be seen, in terms of support to the Canary 
Islands'  fish  industry,  as  complementing  other  measures  taken  on  the  basis  of 
Article 299(2)  of  the  EC  Treaty,  in  particular  the  scheme  to  compensate  for  the 
additional  costs  incurred  in  the  marketing  of  certain  fishery  products  from  the 
outermost regions (Council Regulation (EC) 791/2007 of 21 May 2007). 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Consultation of stakeholders of the fisheries sector in the Canary Islands took place 
in  the  framework  of  the  reports  established  by  the  Spanish  authorities  on  the 
implementation  of  the  measures  referred  in  Article  3  of  Council  Regulation 
(EC) 704/2002. Further consultations took place with the Spanish authorities during 

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the  first  half  of  2007  with  a  view  to  clarify  the  contents  of  the  aforementioned 
reports. 

The  Spanish  authorities  formally  requested  the  extension  of  the  aforementioned 
mentioned measures for the period 2007-2013. 

•  Collection and use of expertise 

See above. 

•  Impact assessment 

An  impact  assessment  was  not  considered  as  the  proposal  is  no  major  policy 
initiative but the continuation of existing measures. 

When assessing the request from the Spanish authorities for the continuation of the 
measures, the services considered the effects on the Canary Islands fisheries sector of 
the proposed tariff quotas, in combination with the measures adopted by the Council 
in May 2007 in support of the fisheries sector in the outermost regions, in particular 
the  scheme  to  compensate  for  the  additional  costs  incurred  in  the  marketing  of 
certain fishery products from the Canary Islands (Council Regulation (EC) 791/2007 
of 21 May 2007). 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

It  is  proposed  to  open  two  duty  free  tariff  quotas  on  imports  of  certain  fishery 
products into the Canary Islands for the period 2007-2013. 

•  Legal basis 

Article 299(2) of the EC Treaty 

•  Subsidiarity principle 

Changes  to  the  Common  Customs  Tariff  are  a  matter  of  exclusive  Community 
competence.  

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The quota volumes are set to a level more in line with actual imports into the Canary 
Islands. 

The administrative burden for both Member States' national and regional authorities 
and  the  Commission  services  is  kept  to  a  minimum,  especially  with  regard  to  the 
reports to be submitted on the implementation of the measures. 

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•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate for the following reason(s): The proposal is for 
suspension of measures fixed in a regulation.  

4. 

BUDGETARY IMPLICATION 

Proposal  has  no  financial  impact  on  expenditure  but  has  a  financial  impact  on 
revenue. The loss of own resources (Common Custom Tariff duties) is estimated at 
MEUR 7.9 net per year. 

5. 

ADDITIONAL INFORMATION 

•  Review/revision/sunset clause 

The proposal includes a review clause. 

The proposal includes a sunset clause. 

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2008/0054 (CNS) 

Proposal for a 

COUNCIL REGULATION 

opening and providing for the administration of autonomous Community tariff quotas 
on imports of certain fishery products into the Canary Islands 

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 Commission1, 

Having regard to the opinion of the European Parliament2, 

Having regard to the opinion of the European Economic and Social Committee3, 

Having regard to the opinion of the Committee of the Regions4, 

Whereas: 

(1) 

In October and November 2000 the Spanish authorities asked to maintain the Common 
Customs  Tariff  (CCT)  measures  for  the  Canary  Islands  first  introduced  by  Council 
Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provisions of 
Community  law  to  the  Canary  Islands5,  which  expired  on  31  December  2001,  for 
another period of 10 years and submitted some documentation justifying their request. 
However, the time to evaluate the documentation was insufficient to reach a definitive 
conclusion as to whether maintaining the measures for the requested period was still 
justified. The application of the tariff measures was therefore prolonged for one year 
by Council Regulations (EC) No 1105/2001 of 30 May 2001. 

(2) 

Council  Regulation  (EC)  No  704/20026  of  25  March  2002  opened  and  provided  for 
the  administration  of  autonomous  Community  tariff  quotas  on  imports  of  certain 
fishery products into the Canary Islands for the period 1 January 2002 to 31 December 
2006. 

(3) 

Council Regulation (EC) No 791/20077 of 21 May 2007 introduced a new scheme to 
compensate  for  the  additional  costs  incurred  in  the  marketing  of  certain  fishery 

1 
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3 
4 
5 
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OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ L 171, 29.6.1991, p. 1 
OJ L 111, 6.4.2002; p.1 
OJ L 176 , 6.7.2007 p. 1 

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products from the outermost regions the Azores, Madeira, the Canary Islands, French 
Guiana  and  Réunion.  The  purpose  of  the  scheme  is  to  facilitate  the  economic  and 
social development of  the region  and  enable it to benefit from the advantages  of  the 
single  market  of  which  it  is  an  integral  part  despite  the  objective  factors  leaving  it 
geographically and economically isolated. 

The exceptional geographical situation of the Canary Islands in relation to the sources 
of  supply  of  certain  fishery  products  which  are  essential  for  domestic  consumption 
entails  additional  costs  for  this  sector.  This  natural  handicap,  as  recognised  in 
Article 299(2)  of  the  Treaty,  resulting  from  insularity,  remoteness  and  outermost 
location  can  be  remedied,  inter  alia,  by  temporarily  suspending  customs  duties  on 
imports  of  the  products  in  question  from  third  countries  within  Community  tariff 
quotas of an appropriate volume. 

The  Commission  in  its  Communication  of  26  May  2004  entitled  "A  stronger 
partnership  for  the  outermost  regions"  (COM(2004)0343)  stated  its  willingness  to 
consider the reduction, even elimination, of common customs tariff duties in order to 
allow  the  supply  of  non-agricultural  raw  materials  to  promote  production  in  the 
outermost regions and, in duly justified circumstances, to consider applications for the 
temporary  suspension  of  tariff  duties  in  those  same  sectors.  In  the  case  of  fisheries 
products,  any  such  measure  would  be  approved  only  for  products  intended  for  the 
local market.  

The  Spanish  authorities  submitted  on  29  July  2004  and  19  July  2006  reports  on 
implementation  of  the  measures  referred  in  Article  3  of  Council  Regulation  (EC) 
No 704/2002 and requested the extension of those measures for the period 2007-2013. 
The Commission has examined, on the basis of the aforementioned reports, the impact 
of the measures adopted on imports of certain fishery products into the Canary Islands. 

The  reports  provided  by  the  Spanish  authorities  indicated  that  the  quotas  opened  by 
Council Regulation (EC) No 704/2002 were not exhausted. 

Tariff  quotas  similar  to  those  opened  with  Council  Regulation  (EC)  No  704/2002  of 
25  March  2002  for  certain  fishery  products  are  warranted  because  they  would  cover 
the  needs  of  the  Canary  Islands'  domestic  market,  while  ensuring  that  flows  of 
reduced-duty imports into the Community remain predictable and clearly identifiable. 

Since  the  quotas  opened  by  Council  Regulation  (EC)  No  704/2002  were  not 
exhausted, it is appropriate to set the quantity of the quotas at a lower level.  

In  order  to  avoid  directly  affecting  the  working  of  the  internal  market,  measures 
should be taken to ensure that fishery products for which suspension is requested are 
intended solely for the Canary Islands' domestic market. 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

(11)  Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for 
the  implementation  of  Council  Regulation  (EEC)  No  2913/92  establishing  the 
Community Customs Code8 codified the management rules for tariff quotas designed 
to be used following the chronological order of dates of customs declarations. 

8 

OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 993/2001 (OJ L 141, 
28.5.2001, p. 1). 

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(12)  Measures must be taken to ensure that the Commission is kept regularly informed of 
the volume of imports in question so that, if necessary, it can take steps to prevent any 
speculative movement or deflection of trade. 

(13) 

In  order  to  ensure  continuity  with  the  measures  set  out  in  Regulation  (EEC) 
No 704/2002, it is necessary to apply the measures provided in this Regulation from 1 
January 2007. 

(14)  Moreover,  in  order  to  ensure  coherence  with  the  scheme  introduced  by  Council 
Regulation (EC) No 791/2007 the tariff quotas should be opened for the period 2007-
2013, 

HAS ADOPTED THIS REGULATION: 

1. 

2. 

1. 

2. 

1. 

Article 1 

From  1  January  2007  to  31  December  2013  the  Common  Customs  Tariff  duties 
applicable  to  imports  into  the  Canary  Islands  of  the  fishery  products  listed  in  the 
Annex to this Regulation shall be suspended in full for the quantity indicated in that 
Annex. 

The suspension referred to in paragraph 1 shall be granted exclusively for products 
intended  for  the  Canary  Islands'  domestic  market.  It  shall  only  apply  to  fishery 
products which are unloaded from ship or aircraft before the customs declaration for 
release  into  free  circulation  is  submitted  to  the  customs  authorities  in  the  Canary 
Islands. 

Article 2 

By  31  May  2010,  the  competent  Spanish  authorities  shall  submit  a  report  to  the 
Commission  on  the  implementation  of  the  measures  provided  for  in  Article  1.  The 
Commission  shall  examine  the  impact  of  those  measures  and,  on  the  basis  of  that 
report,  propose  to  the  Council,  if  necessary,  any  relevant  amendments  to  the 
quantities to be imported. 

By  31  May  2012,  the  competent  Spanish  authorities  shall  submit  a  report  to  the 
Commission  on  the  implementation,  after  2010,  of  the  measures  referred  to  in 
Article 1.  The  Commission  shall  re-examine  the  impact  of  those  measures  and,  on 
the basis of its findings, submit to the Council any relevant proposals for the period 
after 2013. 

Article 3 

Where the Commission has reason to believe that the suspension provided for by this 
Regulation has led to a deflection of trade for a specific product it may, after receipt 
of the opinion of the Customs Code Committee, provisionally repeal the suspension 
for a period not longer than 12 months. The payment of the import duties on products 
for  which  the  suspension  has  been  provisionally  repealed  shall  be  ensured  by  a 

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security. The release of those products for free circulation in the Canary Islands shall 
be conditional upon the provision of such a security. 

2. 

3. 

Within  the  12-month  period  referred  to  in  paragraph  1  the  Council  may,  on  a 
proposal from the Commission, decide to definitively repeal the suspension. In that 
case the amounts of duties covered by securities shall be definitively collected. 

If no definitive decision has been adopted within the 12-month period in accordance 
with paragraph 2, the securities shall be released. 

Article 4 

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

It shall apply from 1 January 2007 until 31 December 2013. 

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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Amount of quota 
(in tons) 

Quota duty 
(%) 

15 000 

0 

15 000 

0 

Order 
No. 

CN 
Code 

09.2997 

0303 

ANNEX 

Description 

Fish, frozen, excluding fillets and 
other  fish  meat  of  heading  No 
0304 

0304 

Fish  fillets  and  other  fish  meat 
(whether  or  not  minced),  fresh, 
chilled or frozen. 

09.2651 

0306 

Crustaceans, whether in shell or 
not, live, fresh, chilled, frozen, 
dried, salted or in brine; 
crustaceans, in shell, cooked by 
steaming or by boiling in water, 
whether or not chilled, frozen, 
dried, salted or in brine; flours, 
meals and pellets of crustaceans, 
fit for human consumption 

0307  Molluscs, whether in shell or not, 
live, fresh, chilled, frozen, dried, 
salted or in brine; aquatic 
invertebrates other than 
crustaceans and molluscs, live, 
fresh, chilled, frozen, dried, 
salted or in brine; flours, meals 
and pellets of aquatic 
invertebrates other than 
crustaceans, fit for human 
consumption 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL: 

Proposal for a Council Regulation (EC) opening and providing for the administration 
of autonomous Community tariff quotas on imports of certain fishery products into 
the Canary Islands. 

2. 

BUDGET LINES: 

Chapter and Article: Chap. 12 art. 120 

Amount budgeted for the year concerned: 

3. 

LEGAL BASIS: 

Article 299 of the Treaty. 

4. 

FINANCIAL IMPACT  

(cid:133) 

Proposal has no financial implications 

⌧  Proposal has no financial impact on expenditure but has a financial impact on 

revenue – the effect is as follows: 

(€ million to one decimal place) 

Budget line 

Article 120 

Revenue9

Year 2007 

Impact  on  own 
(Common Customs Tariff) 

resources

- 7.9/year 

5. 

ANTI-FRAUD MEASURES 

Provisions  on  the  management  of  tariff  quotas  include  the  measures  necessary  for 
preventing  fraud  and  irregularities  (application  of  the  controls  provided  for  in  the 
Community Customs Code and its implementing provisions). 

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Regarding  traditional  own  resources  (agricultural  duties,  sugar  levies,  customs  duties)  the  amounts 
indicated must be net amounts, i.e. gross amounts after deduction of 25% of collection costs 

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6. 

OTHER REMARKS 

Estimated cost of this operation 

Method of calculating total cost of operation  

Taking most recent complete statistics (2006) as a basis, the yearly loss of revenue 
resulting from this Regulation may therefore be estimated at 10.5 MEUR (see table 
hereunder). The amount stated has, in general, been calculated on the basis of MFN 
duty  rates  and  marks  a  maximum  level  due  to  the  fact  that  the  Community  applies 
lower  duties  to  imports  from  a  number  of  countries.  Therefore  the  actual  loss  of 
revenue tends to result in lower amounts since MFN duties do not apply constantly. 

Order 
No 

Quota 
volume 
(tonnes) 

Estimated 
price 
(€/tonne) 

MFN duty
(%) 

Quota 
duty 
(%) 

Duties foregone 
per year 
(€) 

09.2997 

15,000 t 

2,784 

09.2651 

15,000 t 

3,826 

Total 

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(average 
duty) 

10.3 

(average 
duty) 

0 

0 

4,592,891 

5,910,927 

10,503,818 

Total  loss  of  revenue  compared  to  the  absence  of  the  tariff  quotas  is  estimated  at: 
€ 10,503,818. 

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