Opinion of the European Economic and Social Committee on the ‘Proposal for a Council Regulation temporarily suspending autonomous Common Customs Tariff duties on imports of certain industrial products into the autonomous regions of Madeira and the Azores’

COM(2009) 370 final — 2009/0125 (CNS)

(2010/C 255/10)

Rapporteur-general: Mr SOARES

On 7 September 2009, the Council decided to consult the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the

Proposal for a Council Regulation temporarily suspending autonomous Common Customs Tariff duties on imports of certain industrial products into the autonomous regions of Madeira and the Azores

COM(2009) 370 final - 2009/0125 (CNS).

On 17 November 2009 the Committee Bureau instructed the Section for the Single Market, Production and Consumption to prepare the Committee's work on the subject.

In accordance with Rule 20 of the Rules of Procedure, the European Economic and Social Committee appointed Mr Soares as rapporteur-general at its 458th plenary session, held on 16 and 17 December 2009 (meeting of 17 December), and adopted the following opinion by 133 votes to two.

1.   Conclusions and recommendations

1.1   The Committee agrees with the Commission's proposal for a regulation.

1.2   The Committee believes that the outermost region status of the Azores and Madeira fully justifies the adoption of measures to support the development of the local economy, which has traditionally been almost exclusively dependent on revenues from tourism. Other outermost regions, such as the Canary Islands, also benefit from a similar scheme.

1.3   The proposed measures support the continuation and development of other economic activities not directly linked to tourism, thus helping to stabilise and maintain local jobs, which will therefore be less exposed to the fluctuations of the tourism sector.

1.4   The Committee believes this measure will be helpful for the economic development of the region and to maintain local employment.

2.   Gist of the Commission proposal

2.1   Scope

2.1.1   The Commission proposes to suspend temporarily the autonomous tariff duties applicable to imports into the autonomous regions of Madeira and the Azores for a series of finished goods for agricultural, commercial or industrial use (listed in Annex I), and for a series of raw materials, parts and components used for agricultural purposes, industrial transformation or maintenance in these regions (listed in Annex II).

2.1.2   Finished goods will have to be used by local companies on the islands for a period of at least two years before they can be sold freely to other companies located in other parts of the customs territory of the European Community.

2.1.3   Raw materials, parts and components will have to be used for agricultural purposes and for industrial transformation and maintenance on the islands.

2.1.4   In order to avoid any misuse or change in traditional trade flows of these goods, end use controls are to be carried out.

2.2   Duration

The proposed suspension will run from 1 January 2010 until 31 December 2019.

2.3   Specific character of this measure in relation to the scheme previously in force

2.3.1   This measure applies to all economic operators located within these regions.

2.3.2   Until very recently, only operators located in the free zones of the Azores and Madeira could benefit from this measure, under Council Regulation (EEC) No 1657/93. This regulation expired on 31 December 2008, without having achieved its intended effect. As a result, the Commission, at the proposal of the regional authorities of the Azores and Madeira and with the support of the Portuguese government, has decided to propose extending coverage by establishing a new regulation whose scope will be broadened to all economic operators located in these regions.

2.4   Legal basis

The legal basis is Article 299(2) TEC.

2.5   Grounds for the measure

The reason for this measure is to support those economic sectors which are not directly dependent on revenues from tourism in order to offset, to an extent, the fluctuations of the tourism sector and thus stabilise local employment.