89/688/EEC: Council Decision of 22 December 1989 concerning the dock dues in the French overseas departments

COUNCIL DECISION
of 22 December 1989
concerning the dock  dues in the French overseas departments
(89/688/EEC)
THE COUNCIL OF THE EUROPEAN  COMMUNITIES
,
Having regard to the Treaty establishing the European Economic Community, and in particular  Articles 227 (2) and 235 thereof,
Having regard to the proposal from the Commission (1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the Economic and Social Committee (3),
Whereas, pursuant to Article 227 (2) of the Treaty, the institutions of the Community will, within  the framework of the procedures provided for in the Treaty, take care that the economic and social  development of the French overseas departments is made possible; whereas, in the case in point, the  Treaty has not provided the powers required to this end and it is therefore appropriate to have  recourse to Article 235 of the Treaty;
Whereas action to promote the economic and social development of the French overseas departments in  the past has taken the form of isolated measures; whereas, however, by means of Decision 89/687/EEC  (4), the Council established an action programme for the said departments, known as 'Poseidom';  whereas this programme contains a tax component which needs to be implemented;
Whereas the dock dues at present constitute a means of support for local production, which has to  contend with the problems of remoteness and insularity;
Whereas they also are a vital instrument of self-reliance and local democracy, the resources of  which must constitute a means of economic and social development of the French overseas  departments;
Whereas the dock dues system in its present form has features, however, which necessitate its  reform as a means of integrating the French overseas departments fully into the process of  completing the internal market, while taking account of their fragile economic structure;
Whereas this system should be adjusted, over a period of time that is convenient for both local  and national authorities, into a system of internal taxation applicable to all products marketed in  the French overseas departments;
Whereas, however, for the purposes of creating, maintaining and developing activities in the French  overseas departments, it would be advisable to authorize the local authorities to exempt local  activities either totally or partially, according
to economic requirements, from the application of  the
new dock dues for a period not exceeding, in principle, 10 years;
Whereas, in order to see to it that exemptions comply with the rules of the Treaty and to ensure  the necessary coordination with the general aims pursued by the Community, the Council should  entrust the Commission with the task of giving a ruling, within a period of two months, bearing in  mind the economic and social development strategy of each French overseas department, on the  exemption arrangements, submitted by regional authorities, the object of which must be to help the  economic and social development of these regions, in accordance with Article 227 (2) of the  Treaty;
Whereas these exemption arrangements should be temporary and should normally be terminated 10 years  after the reform of the system; whereas at the end of this time the tax arrangements should  therefore as a rule be fully in line with the principles of Article 95 of the Treaty, it being  understood that support measures with the same aims can still be adopted in the context of regional  aid and in compliance with the provisions of Articles 92 to 94; whereas the Commission will present  a report to the Council before the expiry of this 10-year period, concerning the implementation of  the arrangements and their impact on the development of the overseas departments, together, where  appropriate, with a proposal directed towards maintaining the possibility of exemptions;
Whereas, pending reform of dock dues, France should be authorized to maintain, until 31 December  1992 at the latest, dock dues arrangements in their present form, subject to certain conditions  which guarantee that they affect the common market as little as possible and are used with the sole  aim of Article 227 (2) of the Treaty,