Council Regulation (EC) No 122/96 of 22 January 1996 establishing favourable tariff treatment for imports of certain goods into the free zones of Madeira and the Azores by reason of their end use

COUNCIL REGULATION (EC) No 122/96 of 22 January 1996 establishing favourable tariff treatment for imports of certain goods into the free zones of Madeira and the Azores by reason of their end use
THE COUNCIL OF THE EUROPEAN UNION
,
Having regard to the Treaty establishing the European Community, and in particular Article 28 thereof,
Having regard to the proposal from the Commission,
Whereas Council Decision 91/315/EEC (1) set up a programme of options specific to the remote and insular nature of Madeira and the Azores (Poseima); whereas the programme recognizes in its preamble that the free zones of the Azores and Madeira are essential for the development of the two archipelagos and to this end lays down specific measures to stimulate activity there;
Whereas Declaration 26 on the outermost regions of the Community, annexed to the Final Act of the Treaty on European Union, advocates specific measures for the economic and social development of those regions as long as there is an objective need to take such measures;
Whereas the situation of the productive sectors in these archipelagos, as described in the Commission's report on the implementation of the Poseima programme (1992 to 1993), calls for additional customs measures;
Whereas the Portuguese Government, by a letter dated 7 February 1994 requested a reduction in customs duties on raw materials for processing in the free zone of Madeira and subsequently released for free circulation in the territory of the Community in the form of compensating products;
Whereas the free zones of Madeira and the Azores are a key component of the economic and social development strategy of the two regions; whereas increasing activity in the free zones will have significant repercussions on the development of these archipelagos by diversifying production and creating jobs;
Whereas, in view of the economic and geographical similarities between Madeira and the Azores, measures should be proposed for the free zones of both archipelagos;
Whereas Madeira and the Azores are among the least-developed regions of the Community, their per capita gross national product being less than half the Community per capita gross national product average; whereas their trade balance is in deep deficit because of, among other things, the scarcity of exportable products; whereas their products, for these reasons, encounter serious difficulties in reaching the Community market; whereas this handicap calls for the diversification and upgrading of production;
Whereas supplying the archipelagos with raw materials is likely to stimulate sustainable processing activities and so satisfy these requirements; whereas, in order to facilitate the marketing of the products of such processing activities in the Community, provision should be made for favourable tariff treatment of imports into Madeira and the Azores of non-agricultural raw materials for processing; whereas, however, to avoid injury to the Community producers concerned, the granting of such tariff treatment should be subject to specific conditions, namely that processing takes place in the free zones and that it constitutes a substantial processing of the goods;
Whereas admission of the goods entitled to the said tariff treatment should be granted in accordance with the Community provisions on end use; whereas, moreover, the Community rules on the origin of goods are the most appropriate for determining the amount of processing required; whereas they lay down that goods may not be consumed or used in free zones;
Whereas the granting of tariff treatment is of a temporary nature linked to the economic lift-off of the free zones of Madeira and the Azores; whereas the relief should nevertheless be available over a period long enough to enable economic operators to plan their activities and make adequate investment; whereas this objective could be achieved if the measure in question is applicable for a minimum of 10 years;
Whereas the granting of favourable tariff treatment should be considered product by product on the basis of requests made by the Portuguese authorities; whereas the Commission, assisted by the Committee referred to in Article 247 of Regulation (EEC) No 2913/92 (2), should examine these requests and ensure that favourable tariff treatment is not granted to the detriment of other sectors of activity in the archipelagos,