CELEX: 51979PC0418
Language: en
Date: 1979-07-26
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2051/74 on the customs procedure applicable to certain products originating in and coming from the Faroe Islands (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM (79) 418
Vol. 1979/0149
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM ( 79 ) 418 final .
                                                       Brussels / 23 July 1979
                                Proposal for a
                           COUNCIL REGULATION ( EEC )
                     amending Regulation ( EEC ) No 2051 / 74
           on the customs procedure applicable to certain products
             originating in and coming from the Faroe Islands
                ( submitted to the Council by the Commission ) \
' C0M(79 ) 418 final .
 ---pagebreak---                           JUSTIFICATION
Sub j ect : Amendment to the tariff arrangements applicable to imports
            from the Faroe Islands .
            The Community tariff arrangements in respect of the Faroe
Islands are based on :
- Article 27 and Protocol No 2 to the Act of Accession as far as
  Denmark is concerned ;
- the provisions of Council Regulation ( EEC ) No 2051 / 74 as far as
  the other Member States are concerned .
            This has resulted in the following ruling on the importation
of industrial products ( Chapter 25-99 of the CCT ) from the Faroe Islands
- a nil duty tariff in Denmark ;
- a special tariff in Ireland : an 80 % reduction on the rate of duties
  obtaining in Ireland in 1972 ;
- a special tariff in the United Kingdom : exemption from duties ;
- a special tariff in the six original Member States : an 80 % reduction
  on the CCT duties obtaining in 1972 .
            This means that the Community applies four different tariffs
to one territory , the Faroe Islands .
            The
            The Faroe Islands , however , which is very poorly industrialized
and
and has
      has about
          about 30.000 inhabitants , carries on only a very limited amount
of trade with the EEC .
            The importation of industrial products from the Faroe Islands
concerns only a few tariff headings ( yarn of wool , textile articles of
wool , ships ).
            This amounted to 7.326.000 EUA in 1978 .
 ---pagebreak---            99 % of this amount is accounted for by Denmark ( traditional trade )
where the imports concerned are exempt from duty .
           The six original Member States and Ireland have imported goods
from the Faroe Islands to an amount of only 64.000 EUA , yielding some
800 EUA in Customs duties .
            From these figures it emerges that there is no common measure
between the economic interests in question and the administrative
complications for the Commission arising out of the application of four
different customs tariffs .
           The general situation is the result of unforezeen circumstances .
For the above mentioned Council Regulation ( EEC ) No 2051 / 74 was adopted as
an " autonomous and provisional measure ".        The authors' intention was that
it would be replaced in due course by :
- provisions resulting from the accession of the Faroe Islands to the
   Community , or
- measures to be adopted in the context of an EFTA agreement to be concluded
   with the Faroe Islands .
                                                   j
           In practice , however , neither of these opportunities materialized .
Consequently , the tariff arrangements for the Faroe         Islands remain ,
incomplete and incoherent .      For harmonization purposes , the Commission
proposes that the tariff arrangements applied by the Community as originally
constituted and by Ireland be adapted to the tariff arrangements applied
by the United Kingdom , i.e. exemption from customs duties for the products
of Chapters 25-99 of the CCT , except for some products mentioned in
Regulation ( EEC ) Nos 2682 / 72 and 2783 / 75 . As has already been mentioned,
Denmark applies a nil duty tariff for all industrial products .
            Consequently , the Commission proposes to the Council that it
adopt the Regulation attached hereto as an Annex in order to amend
Regulation ( EEC ) No 2051 / 74 in the sense indicated .
 ---pagebreak---                             Proposal for a
                  Council Regulation ( EEC )
                  amending Regulation ( EEC ) No 2051 / 74
        on the customs procedure applicable to certain products
            originating in and coming from the Faroe Islands
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
  Having regard to the Treaty establishing the European Economic Community ,
  and in particular Article 113 thereof ;
  Having regard to the proposal from the Commission ;
  Whereas the tariff arrangement in respect of industrial products from the
  Faroe Islands ^ provided for in Council Regulation ( EEC ) No 2051 / 74 ( 1 ) as
  amended by Regulation ( EEC ) No 1048 / 76 ( 2 ), has not resulted in the
  application of . a uniform customs tariff by the Community ;
  Whereas this situation must be remedied ,
                                                            3
  HAS ADOPTED THIS REGULATION :
                                Article 1
  Regulation ( EEC ) No 2051 / 74 1s amended as follows :
. Article 1 is amended to read as follows
  " For products falling within Chapters25 to 99 of the Common Customs Tariff
  originating in and coming from the Faroe Islands         the customs duties on
  imports and charges having equivalent effects shall be abolished ."
  ( 1 ) 0J No L 212, 2.8.1974 , p. 33
  ( 2 ) 0J No L 120 , 7.5.1976 , p. 1
 ---pagebreak---                           - 2 -
2. Article 3 is deleted .
                      Article 2
   This Regulation shall enter into force on 1 January 1980 .
   This Regulation shall be binding in its entirety and directly
   applicable in all Member States .
   Done at Brussels .
                                           For the Council
                                           The President
 ---pagebreak---                                                                   7 June 1979
                            FINANCIAL MEMORANDUM
1 . Budget heading :       Chapter 12
2 . Title of the measure :           Draft Council Regulation amending Council
     Regulation ( EEC ) No 2051 / 74 on the customs procedure applicable to
     certain products originating in and coming from the Faroe Islands .
3 . Legal basis :      The Treaty
4 .. Aim of the measure : Elimination of customs duties on industrial products
     imported from the Faroe Islands .
5 . Financial consequences :              The current year     The following year
     5.0   Expenditure
     5.1   Own resources
            ( Customs duties ) ( 1 )                                801  EUA
     5.2   Method of calculation
                heading No 60.05          37.000 EUA x 2.1 %       777 EUA
                Chapter 84                 1.000 EUA x 2.4 %        24 EUA
                heading No 99.04          26.000 EUA    ex
6.3        1980 budget appropri at ions                  YES
Comment s :
( 1 ) It is a matter of the non-collection of customs duties .