Suspensions

The suspensions adopted on the basis of Article 26 of the EC Treaty constitute an exception to the normal state of affairs (application of normal customs duty rate) since, during the period of validity of the measure and for an unlimited quantity they permit the total (total suspension) or partial waiver (partial suspension) of the normal duties applicable to imported goods (anti-dumping duties are not affected by these suspensions).

In this connection, it should be pointed out that goods imported under the suspension arrangements are in free circulation and enjoy freedom of movement throughout the Community. Furthermore, once a suspension is granted, normally any operator in any Member State is eligible to benefit from it.

This means that the granting of a suspension has consequences for all Member States, and that the sector should therefore be administered on the basis of close and extensive cooperation between the Member States and the Commission so that the latter can see to it that all Community interests are taken into consideration.

Industrial suspensions

The main purpose of tariff suspensions is to enable Community enterprises to use raw materials, semi finished goods or components without being required to pay the normal duties laid down in the common customs tariff.

Suspensions are proposed after a thorough examination of the economic reasons on which the requests are based and only insofar as they seem likely to benefit the Community economy.

For some economic sectors, it is necessary to stimulate competition by low tariffs, as we find in the pharmaceutical and information technology sectors.

There are temporary or permanent duty suspensions (autonomous tariff suspensions) which role is to stimulate economic activity of Community industries, improving their competitive capacity, creating employment, modernising structures etc.

They are normally granted to

• raw materials,
• semi-finished goods or
• components not available in the EU

but no suspensions are granted for finished products .

When identical, equivalent or substitute products are manufactured in sufficient quantities within the EU or by producers in a third country with preferential tariff arrangements (GSP), the grant of suspension is normally excluded. The same applies where the measure could result in a distortion of competition in respect of the final products.

Council Regulation 1255/96, Official Journal L 158 of 29/06/1996 (suspensions) establishes the list of goods subject to these measures. It is regularly amended (in January and July each year) to take into consideration new requests presented by the Member States. The last amendments to Regulation 1255/96 have been published in Official Journal L 168 of 30/06/2009.  See also the Commission's Export Helpdesk for Developing Countries .

More information and forms can be found in the Commission Communication concerning autonomous tariff suspensions and quotas (Official Journal C 128 of 25/04/1998, p. 2).

Airworthiness

Customs duties for import of parts, components and other goods used for aircraft are currently suspended on the basis of the conditions set up in a specific Council Regulation since 2002 (Council Regulation 1147/2002, Official Journal L 170 of 29/06/2002, p.8).

The measure reduces the administrative burden for companies and customs administrations by eliminating customs procedures like inward processing or end use regimes for certain imported goods used in the manufacture, repair and maintenance of aircraft.

Military

Strengthening the industrial and market situation of European defence companies will greatly improve the EU's ability to fulfil the Petersberg tasks in the accomplishment of European Security and Defence Policy. It will also benefit collective defence by strengthening Europe 's contribution to NATO.

It is in the interests of the Community as a whole that Member States are able to procure for their military forces the most technologically advanced, suitable weapons, and military equipment. In view of the rapid technological developments in this industrial sector worldwide, it is normal practice of the Member States authorities in charge of national defence to procure weapons and military materials from producers or other suppliers located in third countries. Given the security interest of the Member States it is compatible with the interests of the Community that certain of these weapons and equipment may be imported free of import duties.

As explained in Council Regulation 150/2003 (see Official Journal L 25 of 30/01/2003 , p. 1), only the competent authorities of Member States, are entitled to benefit from this measure.

Outermost Regions

"taking account of the structural social and economic situation of the French overseas departments, the Azores, Madeira and the Canary Islands, which is compounded by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, shall adopt specific measures aimed, in particular, at laying down the conditions of application of the Treaty to those regions, including common policies" (Art. 299.2 of the Treaty).

The specific measures referred take into account areas such as customs and trade policies, fiscal policy, free zones, agriculture and fisheries policies, conditions for supply of raw materials and essential consumer goods, State aids and conditions of access to structural funds and to horizontal Community programmes.

There are two categories of customs measures implemented in the outermost regions to offset the serious and permanent handicaps affecting these regions and assist their socio-economic development:

• one intended to promote the development of free zones there and
• the other allowing the duty-free import of certain products.

Canary Islands

As regards the import of goods without payment of duties, Council Regulation (EC) No 704/2002 authorises the suspension of customs duties on the import into the Canary Islands of certain industrial products (goods for capital investment and raw materials for maintenance and processing) and fisheries products until 31 December 2011 . These measures are intended to help maintain and develop industrial and commercial activity there, while at the same time gradually abolishing the suspensions of customs duties on goods intended for final consumption. These customs measures for industrial products are accompanied by tariff exemptions based on quotas for fishery products destined for local consumption and supplement those in the agricultural sector.

Please find further information on this website.

Madeira

The free zone on Madeira is the only one currently benefiting from specific measures. These include the suspension of customs duties on the import of certain goods intended to equip the free zone until the end of 2008. In addition, favourable tariff treatment - which may go as far as the total suspension of customs duties - applies to the import of certain industrial products for processing or substantial working within the free zone until 31 December 2005 . The products obtained may be put into free circulation without payment of duties and sent to other parts of the Community's customs territory without needing to be re-exported elsewhere.

Please find further information on this website.

Azores and French overseas departments (les départements français d'outre-mer - DOM)

The Commission is willing to consider the reduction, even elimination, of common customs tariff duties in order to allow the supply of non-agricultural raw materials to promote production in the outermost regions. Furthermore, in duly justified circumstances, the Commission is also willing to consider applications for the temporary suspension of tariff duties in those same sectors. In order to contribute to regional integration, it is necessary to verify if raw materials for which suspension of tariffs are requested, are not available in the geographical area concerned.

The following websites contain further information on the Azores and the French overseas departments.

You may consult for further information the Commission's report on implementation of Article 299(2) of the EC Treaty regarding measures to assist the outermost regions (COM (2002) 723 of 19/12/2002) and its Communication on a stronger partnership for the outermost regions (COM (2004) 343 of 26/05/2004).