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COUNCIL REGULATION ( EEC ) NO 1570/80

OF 18 JUNE 1980

OPENING , ALLOCATING AND PROVIDING FOR THE ADMINISTRATION OF A COMMUNITY TARIFF QUOTA FOR PROCESSING WORK IN RESPECT OF CERTAIN TEXTILE PRODUCTS UNDER COMMUNITY OUTWARD PROCESSING TRAFFIC

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY , AND IN PARTICULAR ARTICLE 113 THEREOF ,

HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION ,

WHEREAS ON 1 AUGUST 1969 THE COMMUNITY CONCLUDED AN ARRANGEMENT WITH SWITZERLAND ON PROCESSING TRAFFIC IN TEXTILES ; WHEREAS UNDER THAT ARRANGEMENT THE COMMUNITY UNDERTOOK TO OPEN , ON 1 SEPTEMBER OF EVERY YEAR , AN ANNUAL DUTY-FREE COMMUNITY TARIFF QUOTA FOR PROCESSED GOODS OF 1 870 000 EUROPEAN UNITS OF ACCOUNT OF ADDED VALUE , APPORTIONED AS FOLLOWS :

( A ) 1 650 000 EUROPEAN UNITS OF ACCOUNT FOR PROCESSING WORK ON WOVEN FABRICS FALLING WITHIN CHAPTERS 50 TO 57 OF THE COMMON CUSTOMS TARIFF ;

( B ) 143 000 EUROPEAN UNITS OF ACCOUNT FOR THE TWISTING OR THROWING , CABLING AND TEXTURIZING ( WHETHER OR NOT COMBINED WITH OTHER PROCESSING WORK ) OF YARNS FALLING WITHIN CHAPTERS 50 TO 57 OF THE COMMON CUSTOMS TARIFF ;

( C ) 77 000 EUROPEAN UNITS OF ACCOUNT FOR PROCESSING WORK ON PRODUCTS FALLING WITHIN HEADING NOS 58.04 , 58.05 , 58.07 , 58.08 , 58.09 AND 60.01 OF THE COMMON CUSTOMS TARIFF ;

WHEREAS , IN ORDER TO FACILITATE ADMINISTRATION OF THIS TARIFF QUOTA , IT WAS DECIDED NO LONGER TO ALLOCATE A QUOTA , PROVISIONALLY , TO EACH OF THE ABOVE THREE CATEGORIES OF PROCESSING ; WHEREAS THE QUOTA IN QUESTION SHOULD THEREFORE BE OPENED FOR THE PERIOD 1 SEPTEMBER 1980 TO 31 AUGUST 1981 , ACCORDING TO THE PROCEDURE PROVIDED FOR UNDER THE ABOVE ARRANGEMENT , AS AMENDED AND IN COMPLIANCE WITH THE PROVISIONS OF COUNCIL REGULATION ( EEC ) NO 2779/78 OF 23 NOVEMBER 1978 ON THE PROCEDURE FOR APPLYING THE EUROPEAN UNIT OF ACCOUNT ( EUA ) TO LEGAL ACTS ADOPTED IN THE CUSTOMS SPHERE ( 1 ) , AND IN PARTICULAR ARTICLE 2 THEREOF ;

WHEREAS PROVISION SHOULD BE MADE IN PARTICULAR TO ENSURE EQUAL AND CONTINUOUS ACCESS FOR THOSE CONCERNED WITH THIS QUOTA AND CONSISTENT APPLICATION OF THE RATE OF DUTY , PRESCRIBED FOR THE SAID QUOTA UNTIL THE QUOTA IS EXHAUSTED , TO ALL GOODS RE-IMPORTED INTO ANY OF THE MEMBER STATES AND WHICH HAVE RECEIVED ONE OR OTHER OF THE TREATMENTS LISTED ABOVE ; WHEREAS , IN THE LIGHT OF THESE PRINCIPLES , ARRANGEMENTS FOR THE UTILIZATION OF THE QUOTA BASED ON AN ALLOCATION AMONG THE MEMBER STATES WOULD SEEM TO BE CONSISTENT WITH THE COMMUNITY CHARACTER OF THE SAID QUOTA ; WHEREAS IT THEREFORE SEEMS APPROPRIATE TO MAKE THE ALLOCATION ON THE BASIS OF THE AMOUNT OF THE TRAFFIC UNDER THE PREVIOUS BILATERAL AGREEMENTS , BUT WITHOUT PRECLUDING PARTICIPATION BY MEMBER STATES NOT PREVIOUSLY INVOLVED IN SUCH TRAFFIC , AMONG WHICH THE NEW MEMBER STATES ARE INCLUDED ; WHEREAS , TO SAFEGUARD THE COMMUNITY CHARACTER OF THE QUOTA , PROVISION SHOULD BE MADE TO MEET REQUIREMENTS WHICH MAY ARISE IN THOSE MEMBER STATES PERMITTING THEM TO DRAW ADEQUATE AMOUNTS FROM THE COMMUNITY RESERVE ;

WHEREAS , TO TAKE ACCOUNT OF FUTURE TRENDS IN THE TRAFFIC IN QUESTION IN THE VARIOUS MEMBER STATES , THE TOTAL QUOTA VOLUME OF 1 870 000 EUROPEAN UNITS OF ACCOUNT SHOULD BE DIVIDED INTO TWO INSTALMENTS , THE FIRST BEING ALLOCATED AMONG CERTAIN MEMBER STATES AND THE SECOND HELD AS A RESERVE TO COVER THE SUBSEQUENT REQUIREMENTS OF MEMBER STATES WHEN ONE OF THEIR INITIAL SHARES HAS BEEN EXHAUSTED , AND ALSO REQUIREMENTS WHICH MAY ARISE IN CERTAIN MEMBER STATES IN RESPECT OF PROCESSING WORK FOR WHICH NO INITIAL SHARE OF THE QUOTA WAS ALLOCATED ; WHEREAS , IN ORDER TO GIVE THE PARTIES CONCERNED IN EACH MEMBER STATE SOME DEGREE OF CERTAINTY , IT WOULD SEEM APPROPRIATE TO FIX THE FIRST INSTALMENT OF THE COMMUNITY QUOTA AT A RELATIVELY HIGH LEVEL , NAMELY 1 640 000 EUROPEAN UNITS OF ACCOUNT ;

WHEREAS THE MEMBER STATES MAY EXHAUST THEIR INITIAL SHARES AT DIFFERENT RATES ; WHEREAS , TO AVOID DISRUPTION OF SUPPLIES ON THIS ACCOUNT , IT SHOULD BE PROVIDED THAT ANY MEMBER STATE WHICH HAS ALMOST USED UP ONE OF ITS INITIAL SHARES SHOULD DRAW AN ADDITIONAL SHARE FROM THE RESERVE ; WHEREAS , EACH TIME ITS ADDITIONAL SHARE IS ALMOST EXHAUSTED , A MEMBER STATE SHOULD DRAW A FURTHER SHARE , AND SO ON , AS MANY TIMES AS THE RESERVE ALLOWS , WHEREAS THE INITIAL AND ADDITIONAL SHARES SHOULD BE VALID UNTIL THE END OF THE QUOTA PERIOD ; WHEREAS THIS FORM OF ADMINISTRATION REQUIRES CLOSE COLLABORATION BETWEEN THE MEMBER STATES AND THE COMMISSION , AND THE COMMISSION MUST BE IN A POSITION TO KEEP ACCOUNT OF THE EXTENT TO WHICH THE QUOTA HAS BEEN USED UP AND TO INFORM THE MEMBER STATES ACCORDINGLY ;

WHEREAS , IF AT A GIVEN DATE DURING THE QUOTA PERIOD A CONSIDERABLE QUANTITY OF A MEMBER STATE'S INITIAL SHARE REMAINS UNUSED , IT IS ESSENTIAL , TO PREVENT A PART OF THE COMMUNITY TARIFF QUOTA FROM REMAINING UNUSED IN ONE MEMBER STATE WHILE IT COULD BE USED IN OTHERS , THAT SUCH STATE SHOULD RETURN A SIGNIFICANT PERCENTAGE THEREOF TO THE CORRESPONDING RESERVE ;

WHEREAS , SINCE THE KINGDOM OF BELGIUM , THE KINGDOM OF THE NETHERLANDS AND THE GRAND DUCHY OF LUXEMBOURG ARE UNITED IN AND JOINTLY REPRESENTED BY THE BENELUX ECONOMIC UNION , ALL TRANSACTIONS CONCERNING THE ADMINISTRATION OF THE SHARES ALLOCATED TO THAT ECONOMIC UNION MAY BE CARRIED OUT BY ANY ONE OF ITS MEMBERS ,

HAS ADOPTED THIS REGULATION :

ARTICLE 1

1 . FROM 1 SEPTEMBER 1980 TO 31 AUGUST 1981 , A COMMUNITY TARIFF QUOTA OF 1 870 000 EUROPEAN UNITS OF ACCOUNT ( EUA ) OF VALUE ADDED SHALL BE OPENED IN RESPECT OF GOODS RESULTING FROM PROCESSING WORK AS PROVIDED FOR IN THE ARRANGEMENT WITH SWITZERLAND ON PROCESSING TRAFFIC IN TEXTILES AS FOLLOWS :

( A ) PROCESSING WORK ON WOVEN FABRICS FALLING WITHIN CHAPTERS 50 TO 57 OF THE COMMON CUSTOMS TARIFF ;

( B ) TWISTING OR THROWING , CABLING AND TEXTURIZING ( WHETHER OR NOT COMBINED WITH OTHER PROCESSING WORK ) OF YARNS FALLING WITHIN CHAPTERS 50 TO 57 OF THE COMMON CUSTOMS TARIFF ;

( C ) PROCESSING WORK ON PRODUCTS FALLING WITHIN THE FOLLOWING HEADINGS OF THE COMMON CUSTOMS TARIFF :

58.04 WOVEN PILE FABRICS AND CHENILLE FABRICS ( OTHER THAN TERRY TOWELLING OR SIMILAR TERRY FABRICS OF COTTON FALLING WITHIN HEADING NO 55.08 AND FABRICS FALLING WITHIN HEADING NO 58.05 ) ;

58.05 NARROW WOVEN FABRICS , AND NARROW FABRICS ( BOLDUC ) CONSISTING OF WARP WITHOUT WEFT ASSEMBLED BY MEANS OF AN ADHESIVE , OTHER THAN GOODS FALLING WITHIN HEADING NO 58.06 ;

58.07 CHENILLE YARN ( INCLUDING FLOCK CHENILLE YARN ) , GIMPED YARN ( OTHER THAN METALLIZED YARN OF HEADING NO 52.01 AND GIMPED HORSEHAIR YARN ) ; BRAIDS AND ORNAMENTAL TRIMMINGS IN THE PIECE ; TASSELS , POMPONS AND THE LIKE ;

58.08 TULLE AND OTHER NET FABRICS ( BUT NOT INCLUDING WOVEN , KNITTED OR CROCHETED FABRICS ) , PLAIN ( A ) ;

58.09 TULLE AND OTHER NET FABRICS ( BUT NOT INCLUDING WOVEN , KNITTED OR CROCHETED FABRICS ) , FIGURED ; HAND OR MECHANICALLY MADE LACE , IN THE PIECE , IN STRIPS OR IN MOTIFS ;

60.01 KNITTED OR CROCHETED FABRIC , NOT ELASTIC OR RUBBERIZED .

2 . FOR THE PURPOSES OF THIS REGULATION :

( A ) " PROCESSING WORK " MEANS :

- FOR THE PURPOSES OF PARAGRAPH 1 ( A ) AND ( C ) : BLEACHING , DYEING , PRINTING , FLOCKING , IMPREGNATING , DRESSING AND OTHER WORK WHICH CHANGES THE APPEARANCE OR QUALITY OF THE GOODS , WITHOUT HOWEVER CHANGING THEIR NATURE ,

- FOR THE PURPOSES OF PARAGRAPH 1 ( B ) : TWISTING OR THROWING , CABLING AND TEXTURIZING , WHETHER OR NOT COMBINED WITH REELING , DYEING OR OTHER WORK WHICH CHANGES THE APPEARANCE , QUALITY OR FINISH OF THE GOODS , WITHOUT HOWEVER CHANGING THEIR NATURE ;

( B ) " VALUE ADDED " MEANS : THE DIFFERENCE BETWEEN THE VALUE FOR CUSTOMS PURPOSES AS DEFINED IN COMMUNITY REGULATIONS ON THIS SUBJECT AT THE TIME OF RE-IMPORTATION AND THE VALUE FOR CUSTOMS PURPOSES AS IT WOULD BE IF THE PRODUCTS WERE RE-IMPORTED IN THE STATE IN WHICH THEY WERE EXPORTED .

3 . WITHIN THIS TARIFF QUOTA , THE COMMON CUSTOMS TARIFF DUTIES SHALL BE TOTALLY SUSPENDED .

4 . RE-IMPORTS OF PRODUCTS RESULTING FROM THIS PROCESSING WORK MAY NOT BE CHARGED TO THE TARIFF QUOTA IF THEY ARE ALREADY FREE OF CUSTOMS DUTIES UNDER OTHER PREFERENTIAL TARIFF ARRANGEMENTS .

ARTICLE 2

1 . THE TARIFF QUOTA REFERRED TO IN ARTICLE 1 ( 1 ) SHALL BE DIVIDED INTO TWO INSTALMENTS .

THE FIRST INSTALMENT , 1 640 000 EUROPEAN UNITS OF ACCOUNT , SHALL BE ALLOCATED AS SET OUT BELOW AMONG THE MEMBER STATES LISTED IN THE ABOVE ARRANGEMENT ; THE SHARES , SUBJECT TO ARTICLE 6 , SHALL BE VALID FROM 1 SEPTEMBER 1980 TO 31 AUGUST 1981 :

* ( EUA ) *

BENELUX*20 000*

GERMANY ( FR ) *1 080 000*

FRANCE*520 000*

ITALY*20 000*

2 . THE SECOND INSTALMENT WHICH AMOUNTS TO 230 000 EUROPEAN UNITS OF ACCOUNT SHALL CONSTITUTE A COMMUNITY RESERVE .

ARTICLE 3

IN CASE OF NEED IN THE OTHER MEMBER STATES THE STATE CONCERNED SHALL , TO THE EXTENT THAT THE RESERVE SO PERMITS , DRAW FROM SUCH RESERVE A SUFFICIENT SHARE OF THE QUOTA .

ARTICLE 4

1 . IF A MEMBER STATE HAS USED 90 % OR MORE OF ITS INITIAL SHARE AS FIXED IN ARTICLE 2 ( 1 ) , OR THAT SHARE MINUS ANY PORTION RETURNED TO THE RESERVE PURSUANT TO ARTICLE 6 , IT SHALL FORTHWITH , BY NOTIFYING THE COMMISSION , DRAW A SECOND SHARE , TO THE EXTENT THAT THE RELEVANT RESERVE SO PERMITS , EQUAL TO 10 % OF ITS INITIAL SHARE , ROUNDED UP AS NECESSARY TO THE NEXT WHOLE NUMBER .

2 . IF A MEMBER STATE , AFTER EXHAUSTING ITS INITIAL SHARE , HAS USED 90 % OR MORE OF THE SECOND SHARE DRAWN BY IT , THAT MEMBER STATE SHALL , IN ACCORDANCE WITH THE CONDITIONS LAID DOWN IN PARAGRAPH 1 , DRAW A THIRD SHARE EQUAL TO 5 % OF ITS INITIAL SHARE .

3 . IF A MEMBER STATE , AFTER EXHAUSTING ITS SECOND SHARE , HAS USED 90 % OR MORE OF THE THIRD SHARE DRAWN BY IT , THAT MEMBER STATE SHALL , IN ACCORDANCE WITH THE SAME CONDITIONS , DRAW A FOURTH SHARE EQUAL TO THE THIRD .

THIS PROCESS SHALL CONTINUE TO APPLY UNTIL THE RESERVE IS EXHAUSTED .

4 . BY WAY OF DEROGATION FROM PARAGRAPHS 1 , 2 AND 3 , A MEMBER STATE MAY DRAW SHARES LOWER THAN THOSE SPECIFIED IN THOSE PARAGRAPHS IF THERE ARE GROUNDS FOR BELIEVING THAT THOSE SPECIFIED MAY NOT BE USED IN FULL . ANY MEMBER STATE APPLYING THIS PARAGRAPH SHALL INFORM THE COMMISSION OF ITS GROUNDS FOR SO DOING .

ARTICLE 5

ADDITIONAL SHARES DRAWN PURSUANT TO ARTICLE 4 SHALL BE VALID UNTIL 31 AUGUST 1981 .

ARTICLE 6

THE MEMBER STATES REFERRED TO IN ARTICLE 2 ( 1 ) SHALL , NOT LATER THAN 1 JULY 1981 , RETURN TO THE RESERVE THE UNUSED PORTION OF THEIR INITIAL SHARE WHICH , ON 15 JUNE 1981 , IS IN EXCESS OF 20 % OF THE INITIAL AMOUNT . THEY MAY RETURN A GREATER PORTION IF THERE ARE GROUNDS FOR BELIEVING THAT IT MAY NOT BE USED IN FULL .

MEMBER STATES SHALL , NOT LATER THAN 1 JULY 1981 , NOTIFY THE COMMISSION OF THE TOTAL QUANTITIES OF THE PRODUCT IN QUESTION RE-IMPORTED UP TO AND INCLUDING 15 JUNE 1981 AND CHARGED AGAINST THE COMMUNITY QUOTA AND OF ANY PORTION OF THEIR INITIAL QUOTA RETURNED TO THE RESERVE .

ARTICLE 7

THE COMMISSION SHALL KEEP AN ACCOUNT OF THE SHARES OPENED BY THE MEMBER STATES PURSUANT TO ARTICLES 2 , 3 AND 4 AND SHALL , AS SOON AS THE INFORMATION REACHES IT , INFORM EACH MEMBER STATE OF THE EXTENT TO WHICH THE RESERVE HAS BEEN USED UP .

IT SHALL , NOT LATER THAN 5 JULY 1981 , INFORM THE MEMBER STATES OF THE AMOUNTS STILL IN RESERVE FOLLOWING ANY RETURN OF SHARES PURSUANT TO ARTICLE 6 .

IT SHALL ENSURE THAT WHEN AN AMOUNT EXHAUSTING THIS RESERVE IS DRAWN THE AMOUNT SO DRAWN DOES NOT EXCEED THE BALANCE AVAILABLE , AND TO THIS END SHALL NOTIFY THE AMOUNT OF THAT BALANCE TO THE MEMBER STATE MAKING THE LAST DRAWING .

ARTICLE 8

1 . MEMBER STATES SHALL TAKE ALL APPROPRIATE MEASURES TO ENSURE THAT ADDITIONAL SHARES DRAWN PURSUANT TO ARTICLE 4 ARE OPENED IN SUCH A WAY THAT RE-IMPORTATION MAY BE CHARGED WITHOUT INTERRUPTION AGAINST THEIR ACCUMULATED SHARES OF THE COMMUNITY TARIFF QUOTA .

2 . EVERY MEMBER STATE SHALL ENSURE THAT ALL PERSONS ESTABLISHED IN ITS TERRITORY INVOLVED IN THE PROCESSING TRAFFIC HAVE FREE ACCESS TO THE SHARES ALLOCATED TO IT .

3 . THE EXTENT TO WHICH A MEMBER STATE HAS USED UP ITS SHARES SHALL BE DETERMINED ON THE BASIS OF THE VALUE ADDED , AS ESTABLISHED WHEN UPON RE-IMPORTATION THE PRODUCTS CONCERNED ARE ENTERED WITH THE CUSTOMS AUTHORITIES FOR FREE CIRCULATION .

ARTICLE 9

AT THE REQUEST OF THE COMMISSION , THE MEMBER STATES SHALL INFORM IT OF ANY RE-IMPORTATIONS OF THE PRODUCTS IN QUESTION ACTUALLY CHARGED AGAINST THEIR SHARE .

ARTICLE 10

MEMBER STATES AND THE COMMISSION SHALL COOPERATE CLOSELY TO ENSURE THAT THIS REGULATION IS COMPLIED WITH .

ARTICLE 11

THIS REGULATION SHALL ENTER INTO FORCE ON 1 SEPTEMBER 1980 .

THIS REGULATION SHALL BE BINDING IN ITS ENTIRETY AND DIRECTLY APPLICABLE IN ALL MEMBER STATES .

DONE AT LUXEMBOURG , 18 JUNE 1980 .

FOR THE COUNCIL

THE PRESIDENT

C . FRACANZANI

( 1 ) OJ NO L 333 , 30 . 11 . 1978 , P . 5 .