Council Regulation (EU) 2021/2048 of 23 November 2021 temporarily suspending autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands
Date: 2021-11-23
Institutions: Council of the European Union
Subjects: CCT duties, Canary Islands, import, industrial product, regional aid, suspension of customs duties




L_2021420EN.01000101.xml










25.11.2021   


EN


Official Journal of the European Union


L 420/1








            COUNCIL REGULATION (EU) 2021/2048
of 23 November 2021
         
temporarily suspending autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands


THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 349 thereof,


Having regard to the proposal from the European Commission,


After transmission of the draft legislative act to the national parliaments,


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


Having regard to the opinion of the European Economic and Social Committee (2),


Acting in accordance with a special legislative procedure,

Whereas:







(1)


In accordance with Council Regulation (EU) No 1386/2011 (3), the duty suspension for certain capital goods for commercial or industrial use, imported into the Canary Islands, is to expire on 31 December 2021.












(2)


In April 2021, the Government of Spain requested the prolongation of the suspension of the autonomous Common Customs Tariff duties for a number of products in accordance with Article 349 of the Treaty. Measures established by Regulation (EU) No 1386/2011 positively contributed to the development of the Canary Islands’ economy, in particular in industry and construction, thus reducing the severe impact of economic and commercial disadvantages caused by the remoteness, insularity and small size of those islands.












(3)


The Canary Islands’ economy continues to be negatively affected by the small size of the islands’ market, its fragmentation and remoteness from continental Europe, a particularly high level of unemployment and higher production and distribution costs than those of economic operators in continental Europe. While the Canary Islands’ unemployment rate showed some improvement up to 2019, unemployment increased from 20,5 % in 2019 to 22,6 % in 2020, well above an average unemployement rate in 2020 of 15,5 % in Spain and of 7,1 % in the Member States collectively (Eurostat, 2021).












(4)


Moreover, the COVID-19 pandemic halted tourism activity in the Canary Islands which, in 2020, led to an estimated drop of around 20 % in the GDP. In addition, there was a contraction in the construction and industrial activity with an estimated decline of 13 %, in comparison to 2019.












(5)


It is therefore appropriate to prolong the suspension of the Common Customs Tariff duties for certain goods as listed in Annexes I and II to Regulation (EU) No 1386/2011 in order to ensure sustainability of the positive effects of Regulation (EU) No 1386/2011, contribute to the diversification of the economy, ensure constant growth and the creation of jobs in industry and construction, enhance innovation, reduce the dependence of the local economy on the service sector and complement other measures dedicated to the stabilisation of the economic and social environment in the Canary Islands.












(6)


In addition to the product categories covered by Regulation (EU) No 1386/2011, the Government of Spain has requested the suspension of the Common Customs Tariff duties for seven new product categories falling under CN codes 3903 19, 5603 94, 5604 10, 7326 90, 7607 20, 8441 40 and 8479 90. That request should be accepted as those suspensions, which include suspensions for machines for industrial purposes and raw materials, would strengthen the economy of the Canary Islands.












(7)


In order to ensure that only economic operators located on the territory of the Canary Islands benefit from those tariff measures, the suspensions should be made conditional on the end-use of the products, in accordance with Regulation (EU) No 952/2013 of the European Parliament and of the Council (4) and Commission Implementing Regulation (EU) 2015/2447 (5).












(8)


In case of a deflection of trade and in order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission allowing the Commission to temporarily withdraw the suspension. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (6).












(9)


In order to ensure continuity after the expiration of the provisions of Regulation (EU) No 1386/2011, it is appropriate to apply the measures provided in this Regulation from 1 January 2022 until 31 December 2031,





HAS ADOPTED THIS REGULATION:



Article 1
From 1 January 2022 to 31 December 2031, the Common Customs Tariff duties referred to in Article 56(2), point (c), of Regulation (EU) No 952/2013, applicable to imports into the Canary Islands of capital goods for commercial or industrial use, currently falling under the CN codes listed in Annex I to this Regulation, shall be suspended in full.
Those capital goods shall be used in accordance with the relevant provisions of Regulation (EU) No 952/2013 and of Regulation (EU) 2015/2447 for a period of at least 24 months after their release into free circulation by economic operators located in the Canary Islands.


Article 2
From 1 January 2022 to 31 December 2031, the Common Customs Tariff duties referred to in Article 56(2), point (c), of Regulation (EU) No 952/2013, applicable to imports into the Canary Islands of raw materials, parts and components, currently falling under the CN codes listed in Annex II to this Regulation, and used for industrial transformation or maintenance in the Canary Islands, shall be suspended in full.


Article 3
The suspension of duties referred to in Articles 1 and 2 shall be subject to end-use customs supervision in accordance with Article 254 of Regulation (EU) No 952/2013.


Article 4

1.   Where the Commission has reason to believe that any suspension laid down in this Regulation has led to a deflection of trade for a specific product, it shall be empowered to adopt implementing acts in order to temporarily withdraw the suspension with regard to that product for a period not longer than 12 months. Such implementing acts shall be adopted in accordance with the examination procedure referred to in Article 5(2).
Import duties for products for which the suspension has been temporarily withdrawn shall be secured by a guarantee, and the release of the products concerned for free circulation in the Canary Islands shall be conditional upon the provision of such guarantee.


2.   Where the Council decides, in accordance with the procedure laid down in the Treaty, within the 12-month period referred to in paragraph 1, that the suspension is to be definitively withdrawn, the amounts of duties secured by guarantees shall be collected definitively.


3.   Where the Council has not adopted a decision that the suspension should definitively be withdrawn within the 12-month period referred to in paragraph 2, the guarantees shall be released.



Article 5

1.   The Commission shall be assisted by the Customs Code Committee, established by Article 285(1) of Regulation (EU) No 952/2013.


2.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.



Article 6
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 2022.




This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 23 November 2021.


For the Council


The President

G. DOVŽAN
            





(1)  Opinion of 5 October 2021 (not yet published in the Official Journal).

(2)  Opinion of 20 October 2021 (not yet published in the Official Journal).

(3)  Council Regulation (EU) No 1386/2011 of 19 December 2011 temporarily suspending autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands (OJ L 345, 29.12.2011, p. 1).

(4)  Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).

(5)  Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558).

(6)  Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).




ANNEX I
Capital goods for commercial or industrial use currently falling under CN codes (1):








4011 20 


8418 61 00 


8519 20 


9006 30 00 




4011 30 00 


8418 69 00 


8701 


9006 53 




4011 70 00 


8418 91 00 


8702 


9006 59 




4011 80 00 


8418 99 


8704 21 


9007 10 00 




4011 90 00 


8427 


8704 22 


9007 20 00 




5608 


8431 20 00 


8704 23 


9008 50 00 




6403 40 00 


8441 40 00 


8704 31 


9010 10 00 




6403 51 05 


8450 11 90 


8704 32 


9011 20 90 




6403 59 05 


8450 12 00 


8704 41 


9030 33 20 




6403 91 05 


8450 19 00 


8704 42 


9106 




6403 99 05 


8450 20 00 


8704 43 


9107 00 00 




8415 


8450 90 00 


8704 51 


9207 




8418 30 80 


8472 30 00 


8704 52 


9506 91 90 




8418 40 80 


8479 90 


8704 60 


9507 10 00 




8418 50 


8501 


8704 90 00 


9507 20 90 




 


 


8705 


9507 30 00 






(1)  As defined in Commission Implementing Regulation (EU) 2021/1832 of 12 October 2021 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 385, 29.10.2021, p. 1).





ANNEX II
Raw materials, parts and components used for agricultural purposes, industrial transformation or maintenance currently falling under CN codes (1):








3901 


5208 


5507 00 00 


7601 




3902 10 00 


5209 


5508 10 10 


7607 20 




3903 11 00 


5210 


5508 20 10 


8529 90 




3903 19 00 


5212 


5509 


8706 00 




3904 10 00 


5401 10 12 


5510 


8707 




3906 10 00 


5401 10 14 


5512 


8708 




4407 21 


5401 20 10 


5513 


8714 




4407 22 


5402 


5514 


9002 90 00 




4407 23 


5403 


5515 


9006 91 00 




4407 25 


5404 11 00 


5516 


9007 91 00 




4407 26 


5404 90 


5603 94 


9007 92 00 




4407 29 


5407 


5604 10 00 


9008 90 00 




4407 99 40 


5408 


6001 


9010 90 80 




4410 


5501 


6002 


9104 00 00 




4412 


5502 


6217 90 


9108 




5108 


5503 


6305 


9109 




5110 00 00 


5504 


6309 00 00 


9110 




5111 


5505 


6406 


9111 




5112 


5506 


7326 90 


9112 




5205 


 


 


9114 






(1)  As defined in Commission Implementing Regulation (EU) 2021/1832 of 12 October 2021 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 385, 29.10.2021, p. 1).