Regulation 2021/2048 - Temporary suspension of autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands

1.

Legislative text

25.11.2021   

EN

Official Journal of the European Union

L 420/1
 

COUNCIL REGULATION (EU) 2021/2048

of 23 November 2021

temporarily suspending autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 349 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

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

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

Acting in accordance with a special legislative procedure,

Whereas:

 

(1)

In accordance with Council Regulation (EU) No 1386/2011 (3), the duty suspension for certain capital goods for commercial or industrial use, imported into the Canary Islands, is to expire on 31 December 2021.
 

(2)

In April 2021, the Government of Spain requested the prolongation of the suspension of the autonomous Common Customs Tariff duties for a number of products in accordance with Article 349 of the Treaty. Measures established by Regulation (EU) No 1386/2011 positively contributed to the development of the Canary Islands’ economy, in particular in industry and construction, thus reducing the severe impact of economic and commercial disadvantages caused by the remoteness, insularity and small size of those islands.
 

(3)

The Canary Islands’ economy continues to be negatively affected by the small size of the islands’ market, its fragmentation and remoteness from continental Europe, a particularly high level of unemployment and higher production and distribution costs than those of economic operators in continental Europe. While the Canary Islands’ unemployment rate showed some improvement up to 2019, unemployment increased from 20,5 % in 2019 to 22,6 % in 2020, well above an average unemployement rate in 2020 of 15,5 % in Spain and of 7,1 % in the Member States collectively (Eurostat, 2021).
 

(4)

Moreover, the COVID-19 pandemic halted tourism activity in the Canary Islands which, in 2020, led to an estimated drop of around 20 % in the GDP. In addition, there was a contraction in the construction and industrial activity with an estimated decline of 13 %, in comparison to 2019.
 

(5)

It is therefore appropriate to prolong the suspension of the Common Customs Tariff duties for certain goods as listed in Annexes I and II to Regulation (EU) No 1386/2011 in order to ensure sustainability of the positive effects of Regulation (EU) No 1386/2011, contribute to the diversification of the economy, ensure constant growth and the creation of jobs in industry and construction, enhance innovation, reduce the dependence of the local economy on the service sector and complement other measures dedicated to the stabilisation of the economic and social environment in the Canary Islands.
 

(6)

In addition to the product categories covered by Regulation (EU) No 1386/2011, the Government of Spain has requested the suspension of the Common Customs Tariff duties for seven new product categories falling under CN codes 3903 19, 5603 94, 5604 10, 7326 90, 7607 20, 8441 40 and 8479 90. That request should be accepted as those suspensions, which include suspensions for machines for industrial purposes and raw materials, would strengthen the economy of the Canary Islands.
 

(7)

In order to ensure that only economic operators located on the territory of the Canary Islands benefit from those tariff measures, the suspensions should be made conditional on the end-use of the products, in accordance with Regulation (EU) No 952/2013 of the European Parliament and of the Council (4) and Commission Implementing Regulation (EU) 2015/2447 (5).
 

(8)

In case of a deflection of trade and in order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission allowing the Commission to temporarily withdraw the suspension. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (6).
 

(9)

In order to ensure continuity after the expiration of the provisions of Regulation (EU) No 1386/2011, it is appropriate to apply the measures provided in this Regulation from 1 January 2022 until 31 December 2031,

HAS ADOPTED THIS REGULATION:

Article 1

From 1 January 2022 to 31 December 2031, the Common Customs Tariff duties referred to in Article 56(2), point (c), of Regulation (EU) No 952/2013, applicable to imports into the Canary Islands of capital goods for commercial or industrial use, currently falling under the CN codes listed in Annex I to this Regulation, shall be suspended in full.

Those capital goods shall be used in accordance with the relevant provisions of Regulation (EU) No 952/2013 and of Regulation (EU) 2015/2447 for a period of at least 24 months after their release into free circulation by economic operators located in the Canary Islands.

Article 2

From 1 January 2022 to 31 December 2031, the Common Customs Tariff duties referred to in Article 56(2), point (c), of Regulation (EU) No 952/2013, applicable to imports into the Canary Islands of raw materials, parts and components, currently falling under the CN codes listed in Annex II to this Regulation, and used for industrial transformation or maintenance in the Canary Islands, shall be suspended in full.

Article 3

The suspension of duties referred to in Articles 1 and 2 shall be subject to end-use customs supervision in accordance with Article 254 of Regulation (EU) No 952/2013.

Article 4

  • 1. 
    Where the Commission has reason to believe that any suspension laid down in this Regulation has led to a deflection of trade for a specific product, it shall be empowered to adopt implementing acts in order to temporarily withdraw the suspension with regard to that product for a period not longer than 12 months. Such implementing acts shall be adopted in accordance with the examination procedure referred to in Article 5(2).

Import duties for products for which the suspension has been temporarily withdrawn shall be secured by a guarantee, and the release of the products concerned for free circulation in the Canary Islands shall be conditional upon the provision of such guarantee.

  • 2. 
    Where the Council decides, in accordance with the procedure laid down in the Treaty, within the 12-month period referred to in paragraph 1, that the suspension is to be definitively withdrawn, the amounts of duties secured by guarantees shall be collected definitively.
  • 3. 
    Where the Council has not adopted a decision that the suspension should definitively be withdrawn within the 12-month period referred to in paragraph 2, the guarantees shall be released.

Article 5

  • 1. 
    The Commission shall be assisted by the Customs Code Committee, established by Article 285(1) of Regulation (EU) No 952/2013.
  • 2. 
    Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 6

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2022.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 23 November 2021.

For the Council

The President

  • G. 
    DOVŽAN
 
  • (1) 
    Opinion of 5 October 2021 (not yet published in the Official Journal).
  • (2) 
    Opinion of 20 October 2021 (not yet published in the Official Journal).
  • (3) 
    Council Regulation (EU) No 1386/2011 of 19 December 2011 temporarily suspending autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands (OJ L 345, 29.12.2011, p. 1).
  • (4) 
    Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).
  • (5) 
    Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558).
  • (6) 
    Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).
 

ANNEX I

Capital goods for commercial or industrial use currently falling under CN codes (1):

 

4011 20

8418 61 00

8519 20

9006 30 00

4011 30 00

8418 69 00

8701

9006 53

4011 70 00

8418 91 00

8702

9006 59

4011 80 00

8418 99

8704 21

9007 10 00

4011 90 00

8427

8704 22

9007 20 00

5608

8431 20 00

8704 23

9008 50 00

6403 40 00

8441 40 00

8704 31

9010 10 00

6403 51 05

8450 11 90

8704 32

9011 20 90

6403 59 05

8450 12 00

8704 41

9030 33 20

6403 91 05

8450 19 00

8704 42

9106

6403 99 05

8450 20 00

8704 43

9107 00 00

8415

8450 90 00

8704 51

9207

8418 30 80

8472 30 00

8704 52

9506 91 90

8418 40 80

8479 90

8704 60

9507 10 00

8418 50

8501

8704 90 00

9507 20 90
   

8705

9507 30 00
 
  • (1) 
    As defined in Commission Implementing Regulation (EU) 2021/1832 of 12 October 2021 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 385, 29.10.2021, p. 1).
 

ANNEX II

Raw materials, parts and components used for agricultural purposes, industrial transformation or maintenance currently falling under CN codes (1):

 

3901

5208

5507 00 00

7601

3902 10 00

5209

5508 10 10

7607 20

3903 11 00

5210

5508 20 10

8529 90

3903 19 00

5212

5509

8706 00

3904 10 00

5401 10 12

5510

8707

3906 10 00

5401 10 14

5512

8708

4407 21

5401 20 10

5513

8714

4407 22

5402

5514

9002 90 00

4407 23

5403

5515

9006 91 00

4407 25

5404 11 00

5516

9007 91 00

4407 26

5404 90

5603 94

9007 92 00

4407 29

5407

5604 10 00

9008 90 00

4407 99 40

5408

6001

9010 90 80

4410

5501

6002

9104 00 00

4412

5502

6217 90

9108

5108

5503

6305

9109

5110 00 00

5504

6309 00 00

9110

5111

5505

6406

9111

5112

5506

7326 90

9112

5205

    

9114
 
  • (1) 
    As defined in Commission Implementing Regulation (EU) 2021/1832 of 12 October 2021 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 385, 29.10.2021, p. 1).
 

This summary has been adopted from EUR-Lex.