Council Regulation (EC) No 2674/1999 of 13 December 1999 amending Regulation (EEC) No 1911/91 on the application of the provisions of Community law to the Canary Islands

• Published date: 18 December 1999
• Subject Matter: Overseas countries and territories,Regional policy,Accession
• Official Gazette Publication: Official Journal of the European Communities, L 326, 18 December 1999

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31999R2674

Council Regulation (EC) No 2674/1999 of 13 December 1999 amending Regulation (EEC) No 1911/91 on the application of the provisions of Community law to the Canary Islands

Official Journal L 326 , 18/12/1999 P. 0003 - 0005

COUNCIL REGULATION (EC) No 2674/1999

of 13 December 1999

amending Regulation (EEC) No 1911/91 on the application of the provisions of Community law to the Canary Islands

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the Act of Accession of Spain and Portugal, and in particular the first subparagraph of Article 25(4) thereof,

Having regard to the proposal from the Commission,

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

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

Whereas:

(1) by virtue of Article 25 of the 1985 Act of Accession, the Treaties and the acts of the Institutions of the Communities apply to the Canary Islands, subject to the derogations set out in that Article and in Protocol 2 to that Act;

(2) on account of their geographical situation, the Canary Islands are faced with special difficulties due in particular to their remoteness, their island status, their volcanic terrain unpropitious to the development of agricultural and industrial production and their lack of natural resources; the Council has adopted a number of measures to integrate the Canary Islands more fully into the Community and the customs union in particular;

(3) in this context, existing indirect taxation arrangements intended in particular to compensate for the region's island status and geographical isolation needed gradual reform and modernisation in accordance with Community legislation; to that end and among other measures adopted, Regulation (EEC) No 1911/91(3) allowed a new tax on production and imports (the "arbitrio sobre la producción y sobre las importaciones" (APIM)) to be applied in the Canary Islands until 31 December 2000;

(4) this temporary tax is intended to enable local production to adjust to the requirements of the single market through a system of exemptions; certain total or partial exemptions from the tax are accordingly granted in respect of locally produced goods, according to economic needs and on condition that such exemptions contribute to the promotion of local activities without being liable to affect trading...