That amendment establishes three or four very important changes: firstly, the Canary Islands were incorporated into the Common agricultural policy and the Common fisheries policy; secondly, they were incorporated into the Community Customs Union, and are therefore subject to ordinary customs duties; and thirdly, it removed the special tax rules which they had, specifically the island taxes – the so-called special licence tax arrangements – which were designed to protect local industry.

The Act of Accession of Spain and Portugal to the European Community – in article 25 and in Protocol 2 annexed to that Act – provided the Canary Islands with a special status which was designed to reflect the fact that those islands were not integrated into the Common agricultural policy and, furthermore, because it was not subject to the Community Customs Union, the Community customs rules, nor Value Added Tax.

1.00 Presentation by the Chairman of policy aspects of the communication on the management of preferential tariff arrangements (COM 97/402 final, 23.7.1998) 1.15 Talk by Mr Little, President of the ESC's Industry Section 1.30 Talk by Mr Tyskiewicz, Secretary-General of UNICE 1.45 Talk by Mr Sogaro, President of EuroCommerce 2.00 Talk by Mr Festa Bianchet, Member of the Board of Euratex 2.15 Debate 5.00 Presentation of technical aspects of the communication on the management of preferential tariff arrangements by DG XXI and Uclaf (working of the arrangements, origin certificates, administrative cooperation, dysfunctions) 5.45 Conce ...[+++]pt of traders' "good faith" in the light of the Customs Code and judgments of the Court of Justice (French customs) 6.15 Possible developments in Community customs legislation (UK customs) 6.45 Debate 7.15 Summing-up

Since 1 January 1993, goods are transported within the Union under the Community transit system and are not subject to any checks at internal frontiers until they reach the point of final destination, where they are transferred to other customs arrangements. In most cases they are released for free circulation, after payment of the duties and other charges payable on importation.

The 260 articles of the code will incorporate all the provisions of Community law applicable to trade with non-member countries, such as the terms of application of the Common Customs Tariff, the rules on origin and customs value, and customs procedures with economic impact; - to perfect the customs mechanisms of the common policies; - to bring in, gradually, Community provisions for penalties to ensure that businesses receive equal treatment in the single market (b) The reorganization of customs services, training and cooperation In operational terms, national administrative structures will have to be adjusted to customs union's new r ...[+++]ole: a role centred on the external frontier and trade with non-member countries.

The Commission deplores the new situation created in the functioning of the TIR regime and has notified customs administrations in Member states of the alternative arrangement to be made involving the use of Community transit and customs regimes from and to the external frontiers.