
Article 1 

1. By way of derogation from Articles 23, 25 and 90 of the Treaty, the Spanish authorities shall be authorised until 30 June 2014 to lay down, in respect of products listed in the Annex that are produced locally in the Canary Islands, total exemptions from or partial reductions of the tax known as ‘Arbitrio sobre las Importaciones y Entregas de Mercancías en las islas Canarias (AIEM)’. These exemptions must form part of the strategy for economic and social development of the Canary Islands and contribute to the promotion of local activities.
2. Application of the total exemptions or reductions referred to in paragraph 1 may not lead to differences in excess of:
(a) 5 % for the products listed in the Annex, Section A;
(b) 15 % for the products listed in the Annex, Section B;
(c) 25 % for the products listed in the Annex, section C. Nevertheless, the Spanish authorities may establish a minimum tax on cigarettes of not more than EUR 6 per 1 000 cigarettes, applicable only if the AIEM tax resulting from the application of general types of taxation is below this figure.
Article 2 
The Spanish authorities shall present to the Commission at the latest by 31 December 2005 a report on the application of the arrangements referred to in Article 1, in order to check the impact of the measures taken and their contribution to the promotion or maintenance of local economic activities, account being taken of handicaps affecting the outermost regions.
On this basis, the Commission shall present a report to the Council comprising a full analysis of the economic and social aspects and where appropriate a proposal for adapting the provisions of this Decision.
Article 3 
This Decision shall be applicable from 1 January 2002.
Article 4 
This Decision is addressed to the Kingdom of Spain.
ANNEX
A. 
Agricultural and fishery products

0203 11/0203 12/0203 19/0207 11/0207 13/0302 69 94 00/0302 69 95 00/0701 90/0702/0703/0803

Building materials:

3816/3824 40 00 00/3824 90 45 00/3824 90 70 00/6809

Chemicals:

2804 30 00/2804 40 00/2851 00 30/3208/3209/3210/3212 90 90 00/3213/3214/3401/3402/3406/3814 00 90 90/3920 30 00 90/3921 90 60/3923 90 90/4012 11 00/4012 12 00/4012 13/4012 19 00

Metal-working industries:

7604/7608/8428 39 98 00/8479 50 00 00

Food industry:

0210 11 11 00/0210 11 31 00/0210 12 19 00/0210 19 40 00/0210 19 81 00/0305 41 00/0901 22 00 00/1101/1901 20 00 90/1901 90 91 96/2006 00 31 00/1601/1602/1704 90 30 00/1704 90 51 90/1704 90 55 00/1704 90 71/1704 90 75 00/1806/1901 90 99/1904 10 10/1905/2007 91 10/2008 99 61/2008 99 68/2009 11/2009 19/2009 41/2009 49/2009 50/2009 71/2009 79/2009 80/2009 90/2105/2309

Beverages:

2201/2202/2204

Textiles and leather:

6112 31/6112 41

Paper:

4822 90/4823 90 90 90

Graphic arts and publishing:

4910

B. 
Agricultural and fishery products:

0407 00 30

Building materials:

2523 29 00 00/2523 90/7010

Chemicals:

3809 91 00/3917/3923 10 00/3923 21 00/3923 30 10/3924 10 00

Metal-working industries:

7309 00/7325/7610/9403 20 99 00/9404

Food industry:

0403/0901 21/1902/2103/2106 90 98

Beverages:

2203/2208 40

Textiles and leather:

6302

Paper:

4808/4818 10/4818 20/4818 30/4818 90 90 10/4819/4821/4823 90 14

Graphic arts and publishing:

4909/4911

C. 
Tobacco:

2402
