27.6.92 Official j;)umal of the European Communities No L 173/13 COUNCIL REGULATION (EEC) No 1601/92 of 15 June 1992 concerning specific measures for the Canary Islands with regard to certain agricultural products THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Articles 28, 42 and 43 thereof, Having regard to the proposal from the Commission (1), Having regard to the opinion of the European Parliament (?), Having regard to the opinion of the Economic and Social Committee (3), Whereas Council Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provisions of Community law to the Canary Islands (4) integrates the Canary Islands into the Community’s customs territory and into the common policies; whereas, under Articles 2 and 10 of the abovementioned Regulation, application of the common agricultural policy is subject to the entry into force of specific supply arrangements; whereas such application must also be accompanied by specific measures concerning agricultural production; Whereas Council Decision 91/314/EEC of 26 June 1991 setting up a programme of options specific to the remote and insular nature of the Canary Islands (Poseican) (5) outlines the options to be implemented to take account of the specific problems and constraints faced by the Islands; Whereas the exceptional geographical situation of the Canary Islands in relation to the sources of supply of products used as inputs for the everyday consumption or manufacture of certain essential foodstuffs in the Islands imposes costs which constitute a severe handicap to the sectors concerned; whereas this natural handicap can be (1) O] No C 145, 6. 6. 1992, p. 13. (2) Opinion delivered on 9 June 1992 (not yet pubhshed in the Official Journal). (3) Opinion delivered on 27 May 1992 (not yet published in the Official Journal). (4) O] No L 171, 29. 6. 1991, p. 1. Regulation as amended by Regulation (EEC) No 284/92 (O] No L 314, 7. 2. 1992, p. 3). (5) O No L 171, 29. 6. 1991, p. 5. remedied by exemption from levies and/or customs duties on the products in question imported directly from third countries; ‘ Whereas, to maintain the competitiveness of the above products of Community origin in the Islands, both in order to achieve effectively the Poseican objective of reducing prices by promoting competition between sources of supply and to prevent disruption of traditional trade flows, provision should be made for the supply to this region of products originating in the rest of the Community, on terms equivalent for the end user to exemption from the levy and/or customs duties of products originating in third countries, based on the prices applied to exports to third countries; whereas in certain cases it will be necessary to provide for an import certificate system; Whereas the quantities of products benefiting from the specific supply arrangements must be determined within the framework of periodic forecast supply balances, which may be adjusted during the year on the basis of the essential requirements of the local market and taking account of local production and traditional trade flows; Whereas the economic effects of the arrangements in question should have an impact on the level of production costs and reduce prices up to the end user stage; whereas appropriate measures should therefore be provided for, in order to monitor such impact; Whereas, to avoid any deflection of trade, products covered by the specific supply arrangements may not be redispatched to other parts of the Community or re-exported to third countries; whereas, however, an exception to this principle should be made for products traditionally processed in the Canary Islands and redispatched or re-exported, within the limits of usual trade flows; Whereas the specific conditions of agriculture in the Canary Islands require special attention and whereas measures to accompany the entry into force of the common agricultural policy are necessary in this regard, both for stockfarming and animal products and for crop products;