No L 399/46 Official Journal of the European Communities 30. 12. 89 COUNCIL DECISION of 22 December 1989 concerning the dock dues in the French overseas departments (89/688/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Articles 227 (2) and 235 thereof, Having regard to the proposal from the Commission (*), Having regard to the opinion: of the European Parliament (2), , Having regard to the opinion of the Economic and Social Committee (3), Whereas, pursuant to Article 227 (2) of the Treaty, the institutions of the Community will, within the framework of - " the procedures provided for in the Treaty, take care that the economic and social development of the French overseas departments is made possible; whereas, in the case in point, the Treaty has not provided the powers required to this end and it is therefore appropriate to have recourse to Article 235 of the Treaty; Whereas action to promote the. economic and social development of the French overseas departments in the past has taken the form of isolated measures; whereas, however, by means of Decision 89/687/EEC (%), the Council established an action programme for the said departments, known as ‘Poseidom’; whereas this programme contains a tax component which needs to be implemented; Whereas the dock dues at present constitute a means. of support for local production, which has to contend with the problems of remoteness and insularity; Whereas they also are a vital instrument of self-reliance and local democracy, the resources of which must constitute a means of economic and social development of the French overseas departments; ’ Whereas the -dock-dues system in its present form has features, however, which necessitate its reform as a means of integrating the French overseas departments fully into the process of completing the internal market, while taking account of their fragile economic structure; () OJ No C 53, 2. 3.1989, p. 12. (2) Opinion delivered on 14 December 1989 (not yet published in the Official Journal). (3) OJ No C 159, 26. 6. 1989, p. 56. (4) See page 39 of this Official Journal. Whereas this system should be adjusted, over a period of time that is convenient for both local and national authorities, into a system of internal taxation applicable to all products marketed in the French overseas departments; Whereas, however, for the purposes of creating, maintaining and developing activities in the French overseas departments, it would be advisable to authorize the local authorities to exempt local activities either totally or partially, according to economic requirements, from the application of the new dock dues for a period not exceeding, in principle, 10 years; Whereas, in order to see to it that exemptions comply with the rules of the Treaty and to ensure the necessary coordination with the general aims pursued by the Community, the Council should entrust the Commission with the task of giving a ruling, within a period of two months, bearing in mind the economic and social development strategy of each French overseas department, on the exemption arrangements, submitted by regional authorities, the object of which must be to help the economic and social development of these regions, in accordance with Article 227 (2) of the Treaty; Whereas these exemption arrangements should be temporary - and should normally be terminated 10 years after the reform of the system; whereas at the end of this time the tax arrangements should therefore as a rule be fully in line with the principles of Article 95 of the Treaty, it being understood that support measures with the same aims can still be adopted in the:context of regional aid and .in compliance with the provisions of Articles 92 to 94; whereas the Commission will present a report to the Council before the expiry of this 10-year period, concerning the implementation of the arrangements and their impact on the development of the overseas departments, together, where appropriate, with a proposal directed -towards maintaining the possibility of exemptions; Whereas, pending reform of dock dues, France should be authorized to maintain, until 31 December 1992 at the latest, dock dues arrangements-in their present form, subject to certain conditions which~guarantee that they affect the common market as little as possible and are used with the sole - aim of Article 227 (2) of the Treaty, . HAS ADOPTED THIS DECISION, Article 1 .By 31 December 1992 at the latest, the French authorities shall take the necessary measures for the dock dues