Article 1
1. By way of derogation from Articles 28, 30 and 110 TFEU, the Spanish authorities shall be authorised until 31 December 2020 to lay down, in respect of the products listed in the Annex that are produced locally in the Canary Islands, total exemptions from or partial reductions in the tax known as ‘Arbitrio sobre las Importaciones y Entregas de Mercancias en las Islas Canarias’ (AIEM). Those exemptions or reductions must form part of the strategy for economic and social development of the Canary Islands and must contribute to the promotion of local activities. 2. Application of the total exemptions or reductions referred to in paragraph 1 shall not lead to differences in excess of: (a) 5 % for the products listed in Section A of the Annex; (b) 10 % for the products listed in Section B of the Annex; (c) 15 % for the products listed in Section C of the Annex; (d) 25 % for the products listed in Section D of the Annex. Nevertheless, the Spanish authorities may establish a minimum tax on cigarettes of not more than EUR 18 per 1 000 cigarettes, applicable only if the AIEM tax resulting from the application of general types of taxation is below this figure.