1994R3036 — EN — 01.01.1994 — 000.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILREGULATION(EC)No3036/94
of8December 1994
establishingeconomicoutwardprocessingarrangementsapplicabletocertaintextilesandclothing
productsreimported intotheCommunityafter workingorprocessingincertain thirdcountries
(OJ L 322, 15.12.1994, p. 1)
Corrected by:
►C1Corrigendum, OJ L 135, 6.6.1996, p. 35 (3036/94)
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COUNCILREGULATION(EC)No3036/94
of8December 1994
establishing economic outwardprocessing arrangements applicable
to certain textiles and clothing products reimported into the
Communityafterworkingorprocessingincertainthirdcountries
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, andin particular Article 113 thereof,
Having regard to the proposal from the Commission,
Whereas the import arrangements in the Community for the textile and
clothing sectors as regards certain third countries contain specificmeasures applicable to products resulting from outward processingoperations;
Whereas Regulation (EEC) No 636/82 (
1) created economic outward
processing arrangements applicable to certain textile and clothingproducts reimported into the Community after working or processingin certain third countries;
Whereas the policy followed by the Community is intended in parti-
cular to enable the textile and clothing industry to adapt to theconditions of international competition; whereas these new outward
processing arrangements must fit in withefforts to increase th e compe-
titiveness of Community industry and must therefore not only bereserved for that industry but also be granted only to undertakingswhich make, in the Community, products at the same stage of manu-facture as those which are intended to be reimported after outwardprocessing, without prejudice, however, to the rights of persons who
do not fulfil the conditions of this Regulation to whom derogations
may be granted up to the total quantities imported under specificarrangements during one of the two years preceding the entry into forceof this Regulation, for products which are not different in character anduse;
Whereas the creation of the Internal Market in 1993 entails an area
without frontiers in which, in particular, the free movement of goodswill be ensured; whereas this entails, inter alia, the abolition of
controls at internal frontiers and the elimination of disparities as
regards import arrangements, as well as the option of reimporting
compensating products into a Member State other than that in whichthe prior authorization was granted;
Whereas trade in textile and clothing products should be in line with
the functioning of the said Internal Market, in particular as regards the
application of the economic outward processing arrangements fortextiles;
Whereas the earlier regional outward processing quotas have been
replaced as from 1 January 1993 by a system of Community quotas
not allocated between Member States;
Whereas the competent authorities of Member States should continue
to issue prior authorizations to applicants wanting to make use of
outward processing, but, in doing so, should communicate to the
Commission the quantities requested, in order to verify whether thosequantities are available within the total limits established at Communitylevel;
Whereas quantities should be allocated by maximum tranches and the
applications for a new tranche should be possible only when thepreviously allocated tranche has been utilized by at least 50 %;1994R3036 — EN — 01.01.1994 — 000.001 — 2
(1) OJ No L 76, 20. 3. 1982, p. 1. Regulation as amended by the Act of Acces-
sion of Spain and Portugal.
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Whereas the criteria and conditions which Member State operators
must observe in order to qualify under these arrangements are not atpresent applied uniformly throughout the Community;
Whereas, therefore, the rules for implementation of these criteria and
conditions have to be harmonized in order to allow access to outward
processing under conditions common to the whole Community, espe-
cially in respect of the definition of ‘beneficiary’, of the term ‘similarproducts’, the priority for manufacturers maintaining an importantproduction within the Community and the derogation from the rulesconcerning the origin of the product exported for outward processing;
Whereas the allocation of product quantities to each applicant should
take account not only of the quantities available under the importarrangements established with regard to the particular product and third
country concerned, but also of the bona fide status of the beneficiary as
manufacturer and the efforts of the manufacturer to maintain produc-tion and employment within the Community of articles at the samestage of manufacture, while at the same time not reducing the quanti-ties made available to, and used by, past beneficiaries;
Whereas, in keeping with the objectives of this Regulation, it is appro-
priate that the product quantities allocated should be reviewed at theend of eachyear in wh ichavailable quantities for newcomers do not
prove sufficient;
Whereas for the purpose of ensuring an efficient and impartial manage-
ment of the system, the distribution of outward processing quantities
which have not been set aside to meet the applications of persons
withpast performance allocation sh ould be effected on a first-come,first-served basis;
Whereas, in view of Protocol No 1 on Textiles and Clothing Products
to the Europe Agreements and the Interim Agreements concludedbetween the Community and the Czech Republic, the Skovak Republic,Poland, Hungary, Bulgaria and Romania, it is appropriate that thescope of the application of the Regulation be extended to certain liber-
alized categories of products originating in those countries;
Whereas it is necessary that the list of products to which this Regula-
tion applies should be in conformity with the present classification of
textile products (categories) based on the combined Nomenclature;
Whereas this Regulation should not affect reimportations into the
Community of products after their working or processing in third coun-
tries pursuant to prior authorizations issued before the date of itsapplication;
Whereas an efficient Community administration of the outward proces-
sing arrangements requires close cooperation between the MemberStates and the Commission,
HAS ADOPTED THIS REGULATION:
Article 1
1. This Regulation lays down the conditions for the application of
economic outward processing arrangements (hereinafter referred to as‘the arrangements’) to textile products and clothing listed in Chapters
50 to 63 of the Combined Nomenclature and resulting from outward
processing operations.
2. For the purpose of this Regulation ‘outward processing opera-
tions’ (hereinafter referred to as ‘processing operations’) shall mean
the operations which consist in the processing in a third country ofgoods temporarily exported from the Community for subsequent reim-portation in the form of compensating products.
3. Without prejudice to Article 11 (3), the provisions of this Regula-
tion shall apply to textile products and clothing resulting fromprocessing operations in a third country whenever there are arrange-ments on import limits or surveillance withregard to imports of1994R3036 — EN — 01.01.1994 — 000.001 — 3
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textile products and clothing from the said third country and whenever
there are specific measures applicable to products resulting from aprocessing operation in the case of those products and that third
country.
4. For the purposes of this Regulation:
(a) ‘compensating products’ shall mean products resulting from the use
of goods which have undergone the processing operations referredto in Article 2 (2) (d);
(b) ‘goods’ shall mean goods exported from the customs territory of
the Community to a third country to undergo these processingoperations;
(c) ‘total value of the goods’ shall mean:
— in the case of the goods imported beforehand, their value for
customs purposes as defined by ►
C1Council Regulation
(EC) No 2913/92 of 12 October 1992 establishing the Commu-nity Customs Code (
1) and by its implementing
Regulations ◄,
— in all other cases, the ex-factory price;
(d) ‘competent authority’ shall mean the authority in a Member State
which is competent to apply the provisions laid down in this Regu-lation, in particular the granting of prior authorizations;
(e) ‘similar products’ are defined as products falling within the same
category or within the same group of categories as is listed inAnnex I, which may be modified in accordance with the procedurelaid down in Article 12.
Article 2
1. The benefit of the arrangements shall be accorded only to natural
or legal persons established within the Community.
2. Any person referred to in paragraph1 applying to benefit under
the arrangements must fulfil the following conditions:
(a) that person must:
— manufacture, in the Community, products which are similar to
and at the same stage of manufacturing as the compensatingproducts in respect of which the application for the arrangementis made, and
— perform in his own factory, within the Community, the main
production processes on those products, at least sewing and
assembly, or knitting in the case of fully fashioned garments
obtained from yarn.
In determining the eligibility of an application under this provi-
sion, the competent authorities shall not take into account thedesign or manufacture of models or samples;
(b) that person may have compensating products manufactured, in a
third country, by means of processing within the quantities allo-
cated by the competent authorities of the Member State where theapplication is made, and subject to the conditions laid down inArticle 3;
(c) the goods which that person exports temporarily for processing
operations must be in free circulation within the meaning of Article9 (2) of the Treaty and of Community origin within the meaning ofCouncil Regulation (EEC) No 2913/92 of 12 October 1992 estab-lishing the Community Customs Code (
1) and its implementing
regulations. Derogations from the provisions of this subparagraph
may be granted by Member States' authorities only in respect of
goods of which Community production is insufficient. Such dero-gations may not be granted in respect of more than 14 % of thetotal value of the goods for which a prior authorization is requestedor in respect of which the benefit of the arrangement was granted1994R3036 — EN — 01.01.1994 — 000.001 — 4
(1) OJ No L 302, 19. 10. 1992, p. 1.
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to the beneficiary during the previous year. In exceptional and
economically justified cases the competent authorities, on the basisof a decision taken in accordance withth e procedure laid down in
Article 12, may agree to a higher percentage of derogation.
Past beneficiaries who benefited in 1994 from a percentage higher
than 14 % may continue to do so for the same quantities for aperiod of three years on the basis of a list to be established by theCommission. Thereafter, such exceptions may be renewed on thebasis of a decision taken in accordance withth e procedure laid
down in Article 12.
The Member State shall communicate quarterly to the Commission
the main aspects of the derogations thus granted, namely, thenature, origin and quantities of the goods in question originatingoutside the Community. The Commission shall communicate thisinformation to the other Member States with a view to an examina-
tion by the Committee referred to in Article 12.
(d) the processing operations to be carried out in third countries must
not be more extensive than those stipulated for each product inAnnex II. The processing operations to be carried out may,however, be less extensive than those stipulated for each productin Annex II.
3. Member States may derogate from the provisions of paragraph 2
(a) in respect of persons not fulfilling the conditions laid down in thatparagraph.
Such derogations shall apply only to the amount of the total quantities
imported under specific arrangements of the type defined in Article 1(3) during one of the two years preceding the entry into force of Regu-lation (EEC) No 636/82, and to products not different in kind or
purpose.
Where, following the entry into force of this Regulation, a specific
arrangement of a type defined in Article 1 (3) is established for the first
time withregard to a country, and replaces for certain quantities th e
non-specific import limitation arrangement previously applicable tosuch quantities without, however, giving rise to an overall increase inthe import possibilities as a result of the cumulative application of thetwo arrangements, similar derogations may be applied up to the limit of
the quantities of products resulting from processing operations which
were previously imported under the non-specific import limitationarrangement.
The derogations referred to in the preceding subparagraphs shall apply
with priority to those persons who have previously benefited from thespecific arrangements referred to above.
Cases of the application of this paragraph shall be communicated to the
Commission, which shall forward them to Member States with a viewto annual examination by the Committee referred to in Article 12.
Article 3
1. The annual quantities of compensating products whose reimporta-
tion may be authorized under the specific import arrangements referredto in Article 1 (3) shall be established at Community level.
2. The competent authorities shall distribute the annual quantities
referred to in paragraph1 amongst th e potential beneficiaries asdefined in Article 2 on the basis of their applications presented in
conformity withArticle 4 (2) and only upon confirmation by th e
Commission that there are still quantities available within the overallCommunity quota for the entire category and the third countryconcerned.
3. Without prejudice to Article 2 (3), this distribution shall be such
as to ensure that the obejctive of maintaining the industrial activity ofthe beneficiary in the Community, as laid down in Article 2 (2), isrespected as regards both the nature of the products and their quantitiesexpressed in physical units or added value.1994R3036 — EN — 01.01.1994 — 000.001 — 5
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4. Eachpast beneficiary sh all be allocated for eachcategory and
third country an amount equal to the overall quantity for which hecarried out OPT either in 1993 or 1994 for that category and that
country.
Beneficiaries shall become eligible for additional allocations for the
same category and for the same country in accordance with paragraph5 only when they have used the quantities mentioned in the previoussubparagraphas laid down in th e fourthsubparagraphof paragraph5.
In addition, a past beneficiary who chooses not to use the quantities
reserved to him under the first subparagraph in respect of a specific
category and third country shall become eligible to apply for anequivalent quantity in another category and third country, in accor-dance with the first come, first served rule referred to in the firstsubparagraph of paragraph 5. The quantities for which a renunciation
has been made shall immediately be added to the quantities to be allo-
cated►
C1under paragraph5. ◄
On the accession of a country to the Community, these provisions shall
apply to the economic operators of that country who have carried outoutward processing operations in one of the two years preceding theaccession up to the level of the quantities so carried out.
5. The quantities of compensating products which have not been set
aside to fulfil the applications made under paragraph 4 shall be distrib-uted by the Commission on the basis of the notifications received bythe Member States and in the chronological order in which these noti-fications have been received (first come, first served basis).
Allocations shall only be granted to those manufacturers who can prove
that in the preceding year they maintained production in the Commu-
nity. Eachof th ese manufacturers may apply for a total quantity ofcompensating products witha value of th e processing carried out inthird countries no higher than 50 % of the value of his Communityproduction.
The value of the Community production of the applicants concerned
shall be determined on the basis of all products listed in Annex II that
have been manufactured within the Community.
The allocation will be made by maximum amounts per application for
eachcategory and for eachth ird country concerned. If a new applica-tion is submitted, additional amounts for the same category and for thesame third country may only be allocated by the competent authorities
to a particular applicant when the amount previously authorized for that
applicant has been actually utilized by at least 50 % or at least quanti-ties of goods corresponding to 80 % of the previously authorizedamount have been exported.
Each of the manufacturers who has been authorized to carry out
outward processing operations under this paragraph over the preceding
year shall have quantities of compensating products allocated to him
under paragraph4. Wh ere a manufacturer's Community productionhas declined due to outward processing operations carried out in thepreceding year, these past performance quantities shall be reducedproportionately.
The quantities for each category and each third country which have
been allocated shall correspond to the amount of compensating
products reimported by the manufacturer during the period referred toin the previous subparagraph.
6. Where beneficiaries do not use the total quantities for which they
have received prior authorizations under this Article, the unused quan-tities shall be re-credited to the Community quota and thereby be made
available in accordance withth e procedure referred to in paragraph5.
The applicant shall return, within 15 days of the expiry period, all prior
authorizations, unused or partly used, to the competent authorities whodelivered that authorization.
For the application of this paragraph, ‘unused quantities’ shall be
considered to be those quantities for which prior authorizations have1994R3036 — EN — 01.01.1994 — 000.001 — 6
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been issued but not used within a time limit of six months or nine
months in case of extension of the original time limit by the competentauthorities (i.e. the temporary export formalities for the entire quantity
of raw material indicated in the prior authorization have not been
completed). The competent authorities shall indicate to the Commissionas quickly as possible the amounts of any unused quantities to be re-credited to the Community quota.
7. At the end of any calendar year in which the available quantities
of compensating products prove to be insufficient in relation to applica-tions made under paragraph5, an examination sh all be made, inaccordance with the procedure set out in Article 12, as to the extent
and the way in which allocations have to be reviewed.
8. Provisions relating to the application of this Article shall be
adopted in accordance withth e procedures laid down in Article 12.
Article 4
1. The competent authorities shall only issue a prior authorization to
those applicants who meet the conditions laid down in this Regulation.
2. The applicant shall submit to the competent authorities the
contract concluded withth e undertaking responsible for carrying outthe processing operations for his account in the third country, or anyevidence considered by the said authorities to be equivalent thereto.
3. The competent authorities of the Member States shall notify the
Commission before 15 January eachyear of th e total quantities, percategory and third country, which are allocated to beneficiaries underArticle 3 (4) during that quota year.
4. From 15 January of eachyear, requests for prior auth orization
may be notified to the Commission by the competent authorities andprior authorizations may be issued.
The competent authorities of the Member States, before issuing prior
authorizations, shall notify the Commission of the amounts of therequests that they have received. By return, the Commission shall
notify its confirmation that the requested amount(s) of quantities are
available for reimportation in the chronological order in which the noti-fications of the Member States have been received (first come, firstserved basis).
Normally, suchnotifications sh all be communicated electronically
within the integrated network set up for this purpose, unless forimperative resons it is necessary to use other means of communicationtemporarily.
Article 5
1. Prior authorization shall be granted only where it is possible for
the competent authorities to identify temporarily exported goods in thereimported compensating products.
2. The competent authorities may refuse entitlement under the
scheme where they find that they are unable to obtain all the necessaryguarantees to enable them to exercise effective control over the obser-vance of the provisions of Article 2.
3. The prior authorization shall lay down the conditions under which
the processing operations are to take place; these shall include:
— the quantities of goods to be exported and of products to be reim-
ported, calculated by reference to the rate of yield fixed in the light
of the technical data relating to the processing operation or opera-
tions to be carried out, if the data have been established or, if not,the data available in the Community for operations of the samekind,
— the procedures for identifying the temporarily exported goods in the
compensating products,
— the time limit for reimportation depending upon the time necessary
to carry out the processing operation or operations.1994R3036 — EN — 01.01.1994 — 000.001 — 7
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4. Where the competent authorities establish that the level of
employment in the applicant's firm has been significantly reduced dueto outward processing operations carried out in any one year, those
competent authorities shall similarly reduce the quantities which can
be requested under this Regulation by that applicant in the followingyear.
Article 6
The prior authorization issued by the competent authorities shall be
submitted to the customs office concerned at the time of temporaryexportation for the purposes of accomplishing the customs formalities.
Article 7
If the Commission so requests, the Member States shall notify it of any
refusal of prior authorizations together with the reasons, relative to theconditions in this Regulation, why such authorization was withheld.
Article 8
1. Without prejudice to paragraph 2 and provided the conditions laid
down in the authorization are complied with and the other customs
formalities normally required at the time of importation are observed,
the reimportation of the compensating products may not be refused.
2. When the compensating products are reimported into the Commu-
nity, the person declaring them shall submit to the competentauthorities, without prejudice to any other Community rules governingtrade with the third country concerned, the prior authorization togetherwith proof that the processing operation has in fact been performed in
the third country stated in the prior authorization.
Article 9
The competent authorities may, where it is justified by the circum-
stances:
— grant an extension of the time limit originally fixed for reimporta-
tion,
— alllow the compensating products to be reimported in several
consignments; where this is done, a note shall be made on the priorauthorization as and when each consignment arrives.
The competent authorities may also allow the reimportation of the
compensating products even if not all the processing operations
provided for in the prior authorization have been performed.
Article 10
Member States shall communicate to the Commission figures relating
to all reimportations carried out on their territory within the framework
of this Regulation. The Commission shall communicate this informa-tion to the Member States.
Article 11
1. The arrangements provided for in this Regulation shall replace all
other economic outward processing arrangements currently applied bythe Member States in respect of the products referred to in Article 1.
2. This Regulation shall apply without prejudice to Articles 149 to
159 (outward processing arrangements) of Regulation (EEC) No 2913/
92.
3. For the application of the provisions of Article 2 (3) of Protocol
No 1 on Textiles and Clothing Products to the Europe Agreements andthe Interim Agreements between the Community and the CzechRepublic, the Slovak Republic, Hungary, Poland, Romania andBulgaria respectively, the products which are listed in Annex II and1994R3036 — EN — 01.01.1994 — 000.001 — 8
▼C1
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which originate in those countries in accordance with Protocol No 4 on
origin to the Europe Agreements with the Community, do not need tobe subject to the arrangements or the specific measures referred to in
Article 1 (3) or the annual limits referred to in Article 2 (2) (b). Prior
authorizations for those categories of products shall be issued by thecompetent authorities after notification to the Commission of the quan-tities requested, and provided that the conditions of the Regulation arefulfilled.
Article 12
1. A committee on economic outward processing arrangements for
textiles (hereinafter called ‘the Committee’) shall be set up and shall
consist of representatives of the Member States, with a representative
of the Commission acting as chairman.
The Committee shall draw up its own rules of procedure.2. The Committee may examine all questions relating to the applica-
tion of this Regulation referred to it by its chairman either on his owninitiative or at the request of a representative of a Member State.
3. The provisions required for the application of this Regulation
shall be adopted in accordance with the procedure laid down below:
(a) the representative of the Commission shall submit to the
Committee a draft of the measures to be adopted. The Committee
shall deliver its opinion on the draft within a time limit which thechairman may lay down according to the urgency of the matter.►
C1The opinion shall be delivered by the majority provided for
in Article 148 (2) of the Treaty for the adoption of decisions whichthe Council is called upon to take on a proposal from the Commis-
sion, the votes of the representatives of the Member States being
weighted as provided for in Article 148 (2) of the Treaty. ◄The
Chairman shall not vote.
(b) (i) The Commission shall adopt the intended measures when they
are in accordance withth e Committee's opinion.
(ii) Where the intended measures are not in accordance with the
opinion of the Committee, or in the absence of any opinion,
the Commission shall forthwith submit to the Council aproposal relating to the measures to be taken. The Councilshall act by a qualified majority.
(iii) If, on the expiry of one month from the date on which the
matter was referred to it, the Council has not adopted anymeasures, the Commission shall adopt the proposed measuresand apply them immediately.
Article 13
This Regulation shall not affect the reimportation into the Community
of products after working or processing in third countries on the basis
of prior authorizations issued before the entry into force of this Regula-
tion.
Regulation (EEC) No 636/82 shall be repealed with effect from 31
December 1994.
Article 14
This Regulation shall enter into force on 1 January 1995. Article 11 (3)
shall apply from 1 January 1994.
This Regulation shall be binding in its entirety and directly applicable
in all Member States.1994R3036 — EN — 01.01.1994 — 000.001 — 9
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ANNEXI
Groupsofcategories referred to ►C1 inArticle1(4)(e) ◄
Similar products at the same stage of manufacture are defined as products
falling within the same category or within the same group of categories as listed
below:
Group 1 (outerwear)
Categories 4, 5, 6, 7, 8, 14, 15, 16, 17, 21, 26, 27, 28, 29, 68, 73, 74, 75, 76, 77,
78, 83, 156, 157, 159, 161.
Group 2 (underwear)
Categories 4, 5, 12, 13, 18, 24, 26, 28, 31, 68, 69, 70, 72, 73, 78, 83, 86, 157,
161.
Group 3 (other products)
Categories 10, 12, 68, 70, 72, 78, 83, 85, 87, 91.1994R3036 — EN — 01.01.1994 — 000.001 — 10
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ANNEXII
Listofmaximumprocessinglevelsreferred toinArticle 2(2)(d)
Compensating products by categories (1) Maximum processing level
Categories Operation
4, 5, 6, 7, 8, 10, 12, 13, 14, 15, 16, 17, 18, 21,
24, 26, 27, 28, 29, 31, 68, 69, 70, 72, 73, 74, 75,
76, 77, 78, 83, 85, 86, 87, 91, 156, 157, 159, 161Processing from woven or knitted fabrics (2)
(1) Categories refer to those listed in Annex I to Regulation (EEC) No 3030/93 of 12 October 1993 (OJ No L 275,
8. 11. 1993, p. 1) and any amendments thereof.
(2) However, the operation whereby fully fashioned knitwear is obtained from yarn may also count as a processing
operation within the meaning of thie Regulation, provided that the temporary exports of yarn authorized for this
purpose in any year do not exceed 7 % by weight of the total temporary exports authorized in the Community inthe previous year under specific arrangements of the type referred to in Article 1 (3).
The Commission shall ensure that the limit of 7 % as provided for above will not be exceeded at Community
level.
To this end, the provisions of Article 4 shall apply.1994R3036 — EN — 01.01.1994 — 000.001 — 11