21.7.2001 Official Journal of the European Communities L 198/45 COUNCIL REGULATION (EC) No 1454/2001 of 28 June 2001 introducing specific measures for certain agricultural products for the Canary Islands and repealing Regulation (EEC) No 1601/92 (Poseican) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 36, 37 and 299(2) thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament (1), Whereas: 1 G) Under Regulation (EEC) No 1911/91 (?), the Canary Islands are part of the Community's customs territory and all the common policies apply there without prejudice to any special measures adopted to take account of their specific constraints and traditional economic and taxation system. Articles 2 and 10 of that Regulation rule that full application of the common agricultural policy is subject to the entry into force of specific supply arrangements. In addition, application of the common agricultural policy is to be accompanied by specific measures relating to agricultural production in the islands. By Decision 91/314/EEC (}) the Council adopted a programme of options specific to the remote and insular nature of the Canary Islands (Poseican) in accordance with the Community's policy of assistance for the outermost regions. The purpose of the programme is to facilitate the economic and social development of the region and enable it to benefit from the advantages of the single market of which it is an integral part despite the objective factors leaving it geographically and  economically isolated.  The programme calls for the CAP to be applied in that region and provides for special measures to be adopted, in particular to improve the conditions in which agricultural products are produced and marketed there and to nmitigate the effects of its exceptional geographical situation and constraints as since recognised in Article 299(2) of the Treaty. The particular geographical situation of the Canary Islands imposes additional transport costs in supplying () Opinion delivered on 14 June 2001 (not yet published in the Official Journal). (%) Council Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provisions of Community law to the Canary Islands (O] L 171, 29.6.1991, p. 1). Regulation as last amended by Regulation (EC) No 1105/2001 (O] L 151, 7.6.2001, p. 1). () OJ L 171, 29.6.1991, p. 5. essential products for human consumption, for processing and as agricultural inputs. In addition, objective factors arising as a result of insularity and outermost location impose further constraints on economic operators and producers in the Canary Islands that severely handicap their activities. These handicaps can be alleviated by lowering the price of these essential products. It is therefore appropriate to introduce specific supply arrangements to guarantee supply to these islands and compensate for the additional costs arising from their remoteness, insularity and outermost location. To that end, notwithstanding Article 23 of the Treaty, imports of the products concerned from third countries should be exempt from the applicable import duties. To take account of their origin and the customs treatment accorded to them under the Community provisions, products which have entered the Community's customs territory under inward processing or customs warehousing arrangements should be considered as direct imports, for the purpose of granting the benefits of the specific supply arrangements. In order to achieve the goal of lowering prices in the Canary Islands and mitigating the additional costs of their remoteness, insularity and outermost location while maintaining the competitiveness of Community products, aid should be granted for the supply to these islands of products of Community origin. Such aid should take account of the additional cost of transport to the Canary Islands and the prices applied to exports to third countries and, in the case of agricultural inputs and products intended for processing, the additional costs of insularity and outermost location. Since the quantities covered by the specific supply arrangements are limited to the supply requirements of the Canary Islands, those arrangements do not impair the proper functioning of the internal market. In addition, the economic advantages of the specific supply arrangements should not provoke deflections of trade in the  products  concerned.  Re-dispatching  or re-exportation of those products from the Canary Islands should therefore be prohibited. However, it is possible to re-export products in their unprocessed state or products resulting from local packaging of such products under certain conditions, so as to permit regional trade. In the case of processing, this prohibition