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IV . TAXATION

1 . Council Directive 72/464/EEC of 19 December 1972 ( OJ No L 303 , 31 . 12 . 1972 , p . 1 ) , as last amended by Council Directive 84/217/EEC of 10 April 1984 ( OJ No L 104 , 17 . 4 . 1984 , p . 18 ) .

Notwithstanding Article 4 ( 2 ) :

( a ) The Kindom of Spain may , by way of transitional measures , progressively align the rate of the proportional excise duty for cigarettes of dark tobacco on that of cigarettes of light tobacco according to the following procedures :

- application of this transitional measure will be for four years from the date of accession ,

- the elimination of the difference existing , at the date of accession , between the two rates of proportional excise duty shall be achieved in five equal annual instalments on 1 January each year .

( b ) The Portuguese Republic may , until 31 December 1992 , derogate from the Community arrangements concerning excise duty on manufactured tobacco , produced and consumed in the autonomous regions of the Azores and Madeira , under the following conditions :

- The incidences of the excise duty on the cigarettes of the price category most widely sold respectively in mainland Portugal and in the autonomous regions of the Azores and Madeira shall be calculated on the date of accession and communicated to the Commission .

- Three years after accession the excise duty rates applied in the autonomous regions shall be increased by a third of the difference between the incidences calculated according to the provision in the first indent and shall be increased by a second third , five years after accession .

- Should the excise duty in mainland Portugal be increased while this derogation is being applied , the rates of the excise duty in force in the autonomous regions of the Azores and Madeira shall be increased by the same proportion .

2 . Council Directive 76/308/EEC of 15 March 1976 ( OJ No L 73 , 19 . 3 . 1976 , p . 18 ) , as amended by :

- the 1979 Act of Accession ( OJ No L 291 , 19 . 11 . 1979 , p . 17 ) ,

- Council Directive 79/1071/EEC of 6 December 1979 ( OJ No L 331 , 27 . 12 . 1979 , p . 10 ) .

Council Directive 77/799/EEC of 19 December 1977 ( OJ No L 336 , 27 . 12 . 1977 , p . 15 ) , as amended by Council Directive 79/1070/EEC of 6 December 1979 ( OJ No L 331 , 27 . 12 . 1979 , p . 8 ) .

Throughout the duration of the temporary derogation enabling the Portuguese Republic to postpone until 1 January 1989 the introduction of the common system of value added tax , the Community mechanisms for the compulsory recovery of claims and for mutual assistance shall be applicable to the turnover tax which will be in force in Portugal .

3 . Sixth Council Directive 77/388/EEC of 17 May 1977 ( OJ No L 145 , 13 . 6 . 1977 , p . 1 ) , as amended by :

- the 1979 Act of Accession ( OJ No L 291 , 19 . 11 . 1979 , p . 17 ) ,

- Eleventh Council Directive 80/368/EEC of 26 March 1980 ( OJ No L 90 , 3 . 4 . 1980 , p . 41 ) ,

- Tenth Council Directive 84/386/EEC of 31 July 1984 ( OJ No L 208 , 3 . 8 . 1984 , p . 58 ) .

( a ) For the implementation of Article 24 ( 2 ) to ( 6 ) :

- the Kingdom of Spain may grant tax exemption to taxable persons whose annual turnover does not exceed the equivalent in national currency of 10 000 ECU at the conversion rate of the day of its accession ,

- the Portuguese Republic may grant tax exemption to taxable persons whose annual turnover does not exceed the equivalent in national currency , respectively , of 15 000 ECU during the first three years following the coming into force for Portugal of the common system of value added tax , and of 10 000 ECU thereafter , at the conversion rate of the day of its accession . The granting of exemption which is higher than the equivalent of 10 000 ECU will give rise to compensation for the calculation of own resources in accordance with Regulation ( EEC , Euratom , ECSC ) No 2892/77 , as amended by Regulation ( EEC , Euratom , ECSC ) No 3625/83 .

( b ) For the application of the provisions in Article 28 ( 3 ) ( b ) , the Portuguese Republic shall be authorized to exempt the transactions listed in points 2 , 3 , 6 , 9 , 10 , 16 , 17 , 18 , 26 and 27 of Annex F .

These exemptions may not have any effect on own resources for which the basis of assessment will have to be reconstituted , in accordance with Regulation ( EEC , Euratom , ECSC ) No 2892/77 , as amended by Regulation ( EEC , Euratom , ECSC ) No 3625/83 .

( c ) Provided that Article 95 of the EEC Treaty is respected , and provided that the necessary measures are taken to avoid any impact on own resources , in accordance with Regulation ( EEC , Euratom , ECSC ) No 2892/77 , as amended by Regulation ( EEC , Euratom , ECSC ) No 3625/83 , the Portuguese Republic may apply exemptions with refund of the tax paid at the preceding stage :

- In accordance with Article 28 ( 2 ) , for the food products listed below :

CCT heading No * Description *

02.01 * Meat and edible offals of the animals falling within heading No 01.01 , 01.02 , 01.03 , or 01.04 , fresh , chilled or frozen *

02.02 * Dead poultry ( that is to say , fowls , ducks , geese , turkeys and guinea fowls ) and edible offals thereof ( except liver ) , fresh , chilled or frozen *

CCT heading No * Description *

03.01 * Fish , fresh ( live or dead ) , chilled or frozen *

03.02 * Fish , dried , salted or in brine ; smoked fish , whether or not cooked before or during the smoking process : *

* A . Dried , salted or in brine : *

* I . Whole , headless or in pieces *

* b ) Cod ( Gadus morhua , Boreogadus saida , Gadus ogac ) *

03.03 * Crustaceans and molluscs , whether in shell or not , fresh ( live or dead ) , chilled , frozen , salted , in brine or dried ; crustaceans , in shell , simply boiled in water : *

* B . Molluscs : *

* II . Mussels *

* III . Snails , other than sea snails *

* IV . Other *

04.01 * Milk and cream , fresh , not concentrated or sweetened : *

* A . Of a fat content , by weight , not exceeding 6 % : *

* II . Other *

* B . Other *

04.02 * Milk and cream , preserved , concentrated or sweetened *

ex 04.04 * " Flamengo " cheeses *

04.05 * Birds " eggs and egg yolks , fresh , dried or otherwise preserved , sweetened or not : *

* A . Eggs in shell , fresh or preserved *

07.01 * Vegetables , fresh or chilled *

07.02 * Vegetables ( whether or not cooked ) , preserved by freezing *

07.04 * Dried , dehydrated or evaporated vegetables , whole , cut , sliced , broken or in powder , but not further prepared : *

07.05 * Dried leguminous vegetables , shelled , whether or not skinned or split *

08.01 * Dates , bananas , coconuts , Brazil nuts , cashew nuts , pineapples , avocados , mangoes , guavas and mangosteens , fresh or dried , shelled or not : *

* B . Bananas *

* C . Pineapples *

* D . Avocados *

ex 08.02 * Fresh citrus fruit *

08.03 * Figs , fresh or dried : *

* A . Fresh *

08.04 * Grapes , fresh or dried : *

* A . Fresh *

08.06 * Apples , pears and quinces , fresh *

08.07 * Stone fruit , fresh *

08.08 * Berries , fresh *

CCT heading No * Description *

08.09 * Other fruit , fresh *

10.06 * Rice *

11.01 * Cereal flours *

15.01 * Lard , other pig fat and poultry fat , rendered or solvent-extracted : *

* A . Lard and other pig fat *

15.07 * Fixed vegetable oils , fluid or solid , crude , refined or purified : *

* A . Olive oil *

19.02 * Malt extract ; preparations of flour , meal , starch or malt extract , of a kind used as infant food or for dietetic or culinary purposes , containing less than 50 % by weight of cocoa : *

* ex B . Other : *

* - Preparations for infant food *

19.03 * Macaroni , spaghetti and similar products *

19.07 * Bread , ships' biscuits and other ordinary bakers' wares , not containing added sugar , honey , eggs , fats , cheese or fruit ; communion wafers , cachets of a kind suitable for pharmaceutical use , sealing wafers , rice paper and similar products : *

* ex D . Other : *

* - Bread *

22.01 * Waters , including spa waters and aerated waters ; ice and snow : *

* ex B . Other : *

* - Waters *

- by way of temporary derogation for five years following the expiry of the period during which introduction of the common system of value added tax may be postponed , for the following farm inputs :

CCT heading No * Description *

Chapter 1 * Live animals *

06.01 * Bulbs , tubers , tuberous roots , corms , crowns and rhizomes , dormant , in growth or in flower *

06.02 * Other live plants , including trees , shrubs , bushes , roots , cuttings and slips *

10.01 * Wheat and meslin ( mixed wheat and rye ) *

10.02 * Rye *

10.03 * Barley *

10.04 * Oats *

10.05 * Maize *

10.07 * Buckwheat , millet , canary seed , and grain sorghum ; other cereals *

CCT heading No * Description *

12.01 * Oil seeds and oleaginous fruit , whole or broken : *

* A . For sowing *

ex 12.03 * Seeds , fruit and spores , of a kind used for sowing : *

* - Excluding flower seeds *

12.04 * Sugar beet , whole or sliced , fresh , dried or powdered ; sugar cane *

ex 12.07 * Plants and parts of trees , bushes , shrubs or other plants , being goods of a kind used for insecticidial , fungicidad or similar purposes , fresh or dried , whole , cut , crushed , ground or powdered *

12.09 * Cereal straw and husks , unprepared , or chopped but not otherwise prepared *

12.10 * Mangolds , swedes , fodder roots ; hay , lucerne , clover , sainfoin , forage kale , lupines , vetches and similar forage products *

13.03 * Vegetable saps and extracts , pectic substances , pectinates and pectates ; agar-agar and other mucilages and thickeners , derived from vegetable products : *

* A . Vegetable saps and extracts : *

* V . Of pyrethrum and of the roots of plants containing rotenone *

14.01 * Vegetable materials of a kind used primarily for plaiting ( for example , cereal straw , cleaned , bleached or dyed , osier , reeds , rushes , rattans , bamboos , raffia and lime bark ) : *

* ex C . Other : *

* - Raffia *

23.01 * Flour and meals , of meat , offals , fish , crustaceans or molluscs , unfit for human consumption ; greaves *

23.04 * Oil-cake and other residues ( except dregs ) resulting from the extraction of vegetable oils *

23.06 * Products of vegetable origin of a kind used for animal food , not elsewhere specified or included *

23.07 * Sweetened forage ; other preparations of a kind used in animal feeding *

28.02 * Sulphur , sublimed or precipitated ; colloidal sulphur *

28.38 * Sulphates ( including alums ) and persulphates : *

* A . Sulphates ( excluding alums ) : *

* II . Of potassium ; of copper *

* VI . Of iron ; of nickel *

* VIII . Other *

ex 38.11 * Disinfectants , insecticides , fungicides , for use in agriculture *

38.19 * Chemical products and preparations of the chemical or allied industries ( including those consisting of mixtures of natural products ) , not elsewhere specified or included ; residual products of the chemical or allied industries , not elsewhere specified or included : *

* A . Fusel oil ; dippel's oil *

82.01 * Hand tools , the following : spades , shovels , picks , hoes , forks and rakes ; axes , bill hooks and similar hewing tools ; scythes , sickles , hay knives , grass shears , timber wedges and other tools of a kind used in agriculture , horticulture or forestry *

CCT heading No * Description *

82.02 * Saws ( non-mechanical ) and blades for hand or machine saws ( including toothless saw blades ) : *

* A . Saws ( non-mechanical ) *

ex 84.10 * Pumps , motor pumps for liquids , used in agriculture *

84.24 * Agricultural and horticultural machinery for soil preparation or cultivation ( for example , ploughs , harrows , cultivators , seed and fertilizer distributors ) ; lawn and sports ground rollers *

84.25 * Harvesting and threshing machinery : straw and fodder presses : hay or grass mowers : winnowing and similar cleaning machines for seed , grain or leguminous vegetables and egg-grading and other grading machines for agricultural produce ( other than those of a kind used in the bread grain milling industry falling within heading No 84.29 ) *

84.26 * Dairy machinery ( including milking machines ) *

84.27 * Presses , crushers and other machinery , of a kind used in wine-making , cider-making , fruit juice preparation or the like *

84.28 * Other agricultural , horticultural , poultry-keeping and bee-keeping machinery ; germination plant fitted with mechanical or thermal equipment ; poultry incubators and brooders *

84.29 * Machinery of a kind used in the bread grain milling industry , and other machinery ( other than farm type machinery ) for the working of cereals or dried leguminous vegetables *

87.01 * Tractors ( other than those falling within heading No 87.07 ) , whether or not fitted with power take-offs , winches or pulleys : *

* A . Agricultural walking tractors , with either a spark ignition or a compression ignition engine *

* B . Agricultural tractors ( excluding walking tractors ) and forestry tractors , wheeled *

ex 87.06 * Parts and accessories of the motor vehicles falling within subheadings 87.01 A and B *

87.14 * Other vehicles ( including trailers ) , not mechanically propelled , and parts thereof : *

* ex A . Animal-drawn vehicles used in agriculture