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( 1 ) OPINION DELIVERED ON 15 DECEMBER 1978 ( NOT YET PUBLISHED IN THE OFFICIAL JOURNAL ) .

( 2 ) OJ N L 357 , 31 . 12 . 1977 , P . 1 .

( 3 ) OJ N L 42 , 11 . 12 . 1978 , P . 1 .

COUNCIL REGULATION ( EEC ) N 3059/78

OF 21 DECEMBER 1978

ON COMMON RULES FOR IMPORTS OF CERTAIN TEXTILE PRODUCTS ORIGINATING IN THIRD COUNTRIES

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 ,

HAVING REGARD TO THE OPINION OF THE EUROPEAN PARLIAMENT ( 1 ) ,

CONSIDERING THE DECISIONS OF COMMERCIAL POLICY ADOPTED BY THE COUNCIL AT ITS SESSION OF 19 AND 20 DECEMBER 1977 ;

WHEREAS THE COMMUNITY HAS ACCEPTED THE EXTENSION OF THE ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES ON THE CONDITIONS LAID DOWN IN THE PROTOCOL FOR THE EXTENSION OF THE ARRANGEMENT AND THE CONCLUSIONS ADOPTED BY THE GATT TEXTILES COMMITTEE ON 14 DECEMBER 1977 AND ANNEXED TO THAT PROTOCOL ;

WHEREAS THE COMMUNITY HAS NEGOTIATED AGREEMENTS WITH A NUMBER OF SUPPLYING COUNTRIES ON TRADE IN TEXTILE PRODUCTS ; WHEREAS THE SAID AGREEMENTS ARE INTENDED TO PROMOTE THE ORDERLY AND EQUITABLE DEVELOPMENT OF TRADE IN TEXTILE PRODUCTS BETWEEN THE COMMUNITY AND ITS SUPPLYING COUNTRIES , ON THE BASIS OF COOPERATION BETWEEN THE CONTRACTING PARTIES , AND IN PARTICULAR TO ELIMINATE THE REAL DANGER OF DISRUPTION OF THE COMMUNITY MARKET AND THE TEXTILE TRADE OF THE SUPPLYING COUNTRIES ; WHEREAS TO THIS END THEY PROVIDE INTER ALIA THAT SUPPLIER COUNTRIES' EXPORTS OF CERTAIN TEXTILE PRODUCTS SHALL BE SUBJECT TO QUANTITATIVE LIMITS , AND THAT THE COMMUNITY SHALL REFRAIN FROM INTRODUCING QUANTITATIVE RESTRICTIONS UNDER ARTICLE XIX OF THE GATT OR ARTICLE 3 OF THE ABOVEMENTIONED ARRANGEMENT , OR APPLYING MEASURES HAVING EQUIVALENT EFFECT TO SUCH QUANTITATIVE RESTRICTIONS ;

WHEREAS IT WAS AGREED IN THE COURSE OF THE NEGOTIATIONS BY THE DELEGATIONS FROM THE COMMUNITY AND THE SUPPLYING COUNTRIES THAT THE SAID DELEGATIONS SHOULD RECOMMEND THEIR RESPECTIVE AUTHORITIES TO APPLY THE ARRANGEMENTS SET OUT IN THE AGREEMENTS NEGOTIATED ON A PROVISIONAL BASIS FROM 1 JANUARY 1978 , PENDING THEIR SUBSEQUENT ENTRY INTO FORCE ;

WHEREAS , IN ORDER TO PROVIDE FOR THE PROMPT ESTABLISHMENT OF SUCH ARRANGEMENTS AND AVOID IRREPARABLE DAMAGE TO COMMUNITY PRODUCERS , IMPORTS OF TEXTILE PRODUCTS ORIGINATING IN THE SUPPLYING COUNTRIES IN QUESTION HAVE BEEN MADE SUBJECT , FROM 1 JANUARY TO 31 DECEMBER 1978 , TO AUTHORIZATION AND QUANTITATIVE LIMITATION UNDER COMMISSION REGULATION ( EEC ) N 3019/77 ( 2 ) , CONFIRMED BY COUNCIL REGULATION ( EEC ) N 265/78 ( 3 ) ;

WHEREAS IT IS NECESSARY TO REPLACE THESE PROVISIONAL ARRANGEMENTS WITH A DEFINITIVE SYSTEM INCORPORATING ALL THE MEASURES NECESSARY TO ENSURE THE APPLICATION OF THE NEGOTIATED ARRANGEMENTS ;

WHEREAS IT IS NECESSARY TO ENSURE THAT THE PURPOSE OF EACH OF THESE AGREEMENTS SHOULD NOT BE OBSTRUCTED BY DEFLECTION OF TRADE AND THAT IT IS THEREFORE NECESSARY TO DETERMINE THE WAY IN WHICH THE ORIGIN OF THE PRODUCTS IN QUESTION IS CONTROLLED AND THE METHODS BY WHICH THE APPROPRIATE ADMINISTRATIVE COOPERATION IS ACHIEVED ;

WHEREAS COMPLIANCE WITH THE QUANTITATIVE LIMITS ON EXPORTS ESTABLISHED UNDER THE AGREEMENTS IS ENSURED BY A DOUBLE-CHECKING SYSTEM ; WHEREAS THE EFFECTIVENESS OF THESE MEASURES DEPENDS ON THE COMMUNITY'S ESTABLISHING A SET OF COMMUNITY QUANTITATIVE LIMITS TO BE APPLIED TO IMPORTS OF ALL PRODUCTS FROM SUPPLYING COUNTRIES WHOSE EXPORTS ARE SUBJECT TO QUANTITATIVE LIMITATIONS ;

WHEREAS PRODUCTS ENTERING THE CUSTOMS TERRITORY OF THE COMMUNITY UNDER THE ARRANGEMENTS FOR INWARD PROCESSING OR OTHER TEMPORARY ADMISSION ARRANGEMENTS AND INTENDED FOR RE-EXPORTATION OUT OF THE SAID TERRITORY IN THE SAME STATE OR AFTER PROCESSING SHOULD NOT BE SUBJECT TO SUCH COMMUNITY QUANTITATIVE LIMITS ;

WHEREAS SPECIAL RULES ARE REQUIRED FOR PRODUCTS RE-IMPORTED UNDER THE ARRANGEMENTS FOR OUTWARD PROCESSING ;

WHEREAS , IN ORDER TO APPLY COMMUNITY QUANTITATIVE LIMITS IN CONFORMITY WITH THE AGREEMENTS NEGOTIATED WITH THE SUPPLYING COUNTRIES , IT IS NECESSARY TO ESTABLISH A SPECIAL MANAGEMENT PROCEDURE ; WHEREAS IT IS DESIRABLE THAT SUCH COMMON MANAGEMENT SYSTEM BE DECENTRALIZED BY ALLOCATING THE QUANTITATIVE LIMITS AMONG THE MEMBER STATES , AND THAT THE IMPORT AUTHORIZATIONS BE ISSUED BY THE MEMBER STATES' AUTHORITIES IN ACCORDANCE WITH THE DOUBLE-CHECKING SYSTEM DEFINED IN THE AGREEMENTS ;

WHEREAS , IN ORDER TO ENSURE THE BEST POSSIBLE UTILIZATION OF THE COMMUNITY QUANTITATIVE LIMITS , THEY SHOULD BE ALLOCATED IN ACCORDANCE WITH THE REQUIREMENTS OF THE MEMBER STATES AND WITH THE QUANTITATIVE OBJECTIVES ESTABLISHED BY THE COUNCIL ; WHEREAS , HOWEVER , THE EXTENT OF THE DISPARITIES EXISTING IN THE CONDITIONS FOR IMPORTATION OF THESE PRODUCTS INTO THE MEMBER STATES AND THE PARTICULARLY SENSITIVE POSITION OF THE COMMUNITY TEXTILES INDUSTRY MEAN THAT THE SAID CONDITIONS CAN BE STANDARDIZED ONLY GRADUALLY ; WHEREAS FOR THESE REASONS ALLOCATION OF SUPPLIES CANNOT IMMEDIATELY BE EFFECTED ON THE BASIS OF REQUIREMENTS ALONE ;

WHEREAS IT IS ALSO NECESSARY TO INTRODUCE EFFICIENT AND RAPID PROCEDURES FOR ALTERING COMMUNITY QUANTITATIVE LIMITS AND THEIR ALLOCATION TO TAKE ACCOUNT OF THE DEVELOPMENT OF TRADE FLOWS , NEEDS FOR ADDITIONAL IMPORTS AND THE COMMUNITY'S OBLIGATIONS UNDER THE AGREEMENTS NEGOTIATED WITH SUPPLYING COUNTRIES ;

WHEREAS , IN THE CASE OF PRODUCTS NOT SUBJECT TO QUANTITATIVE LIMITATION , THE AGREEMENTS PROVIDE FOR A CONSULTATION PROCEDURE WHEREBY , IN THE EVENT THAT THE VOLUME OF IMPORTS OF A GIVEN CATEGORY OF PRODUCTS INTO THE COMMUNITY OR ONE OF ITS REGIONS EXCEEDS A CERTAIN THRESHOLD , AGREEMENT CAN BE REACHED WITH THE SUPPLYING COUNTRY ON THE INTRODUCTION OF QUANTITATIVE LIMITS ; WHEREAS THE SUPPLYING COUNTRIES ALSO UNDERTAKE TO SUSPEND OR LIMIT THEIR EXPORTS FROM THE DATE OF A REQUEST FOR SUCH CONSULTATIONS , AT THE LEVEL INDICATED BY THE COMMUNITY ; WHEREAS IF NO AGREEMENT IS REACHED WITH THE SUPPLYING COUNTRY WITHIN THE PERIOD STIPULATED , THE COMMUNITY MAY INTRODUCE QUANTITATIVE LIMITS AT A SPECIFIC ANNUAL OR MULTIANNUAL LEVEL ;

WHEREAS IN ORDER INTER ALIA TO COMPLY WITH TIME LIMITS SET IN THE AGREEMENTS IT IS NECESSARY TO LAY DOWN A RAPID AND EFFICIENT PROCEDURE FOR INTRODUCING SUCH QUANTITATIVE LIMITS AND CONCLUDING SUCH AGREEMENTS WITH THE SUPPLYING COUNTRIES ;

WHEREAS THE PROVISIONS OF THIS REGULATION MUST BE APPLIED IN CONFORMITY WITH THE COMMUNITY'S INTERNATIONAL OBLIGATIONS , IN PARTICULAR WITH THOSE ARISING FROM THE ABOVEMENTIONED AGREEMENTS WITH SUPPLYING COUNTRIES ,

HAS ADOPTED THIS REGULATION :

ARTICLE 1

1 . THIS REGULATION SHALL APPLY TO IMPORTS INTO THE COMMUNITY OF THE TEXTILE PRODUCTS LISTED IN ANNEX I AND ORIGINATING IN THE COUNTRIES LISTED IN ANNEX II ( HEREINAFTER CALLED " SUPPLYING COUNTRIES " ) .

2 . THE DESCRIPTION AND IDENTIFICATION OF THE PRODUCTS LISTED IN ANNEX I SHALL BE THOSE USED IN THE NOMENCLATURE OF THE COMMON CUSTOMS TARIFF AND IN THE NOMENCLATURE OF GOODS FOR THE EXTERNAL TRADE STATISTICS OF THE COMMUNITY AND THE STATISTICS OF TRADE BETWEEN MEMBER STATES ( NIMEXE ) , WITHOUT PREJUDICE TO ARTICLE 3 ( 4 ) .

3 . SUBJECT TO THE PROVISIONS OF THIS REGULATION THE IMPORTATION INTO THE COMMUNITY OF THE TEXTILE PRODUCTS REFERRED TO IN PARAGRAPH 1 SHALL NOT BE SUBJECT TO QUANTITATIVE RESTRICTIONS OR MEASURES HAVING EQUIVALENT EFFECT TO SUCH RESTRICTIONS .

ARTICLE 2

1 . THE ORIGIN OF THE PRODUCTS REFERRED TO IN ARTICLE 1 ( 1 ) SHALL BE DETERMINED IN ACCORDANCE WITH THE RULES IN FORCE IN THE COMMUNITY .

2 . THE PROCEDURES FOR CONTROL OF THE ORIGIN OF THE PRODUCTS REFERRED TO IN ARTICLE 1 ( 1 ) ARE LAID DOWN IN ANNEXES III AND VI .

ARTICLE 3

1 . THE IMPORTATION INTO THE COMMUNITY OF THE TEXTILE PRODUCTS LISTED IN ANNEX IV ORIGINATING IN ONE OF THE SUPPLYING COUNTRIES LISTED IN THAT ANNEX AND SHIPPED BETWEEN 1 JANUARY 1978 AND 31 DECEMBER 1982 SHALL BE SUBJECT TO THE ANNUAL COMMUNITY QUANTITATIVE LIMITS LAID DOWN IN THAT ANNEX .

2 . THE RELEASE FOR FREE CIRCULATION IN THE COMMUNITY OF IMPORTS SUBJECT TO THE COMMUNITY QUANTITATIVE LIMITS REFERRED TO IN PARAGRAPH 1 SHALL BE SUBJECT TO THE PRESENTATION OF AN IMPORT AUTHORIZATION OR EQUIVALENT DOCUMENT ISSUED BY THE MEMBER STATES' AUTHORITIES IN ACCORDANCE WITH ARTICLE 10 .

3 . THE AUTHORIZED IMPORTS SHALL BE CHARGED AGAINST THE COMMUNITY QUANTITATIVE LIMITS LAID DOWN FOR THE YEAR IN WHICH THE PRODUCTS ARE SHIPPED IN THE SUPPLYING COUNTRY CONCERNED .

4 . THE DEFINITION OF COMMUNITY QUANTITATIVE LIMITS LAID DOWN IN ANNEX IV AND THE CATEGORIES OF PRODUCTS TO WHICH THEY APPLY SHALL BE ADAPTED IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 15 WHERE THIS PROVES NECESSARY TO ENSURE THAT ANY SUBSEQUENT AMENDMENT TO THE NOMENCLATURE OF THE COMMON CUSTOMS TARIFF OR THE NOMENCLATURE OF GOODS FOR THE EXTERNAL TRADE STATISTICS OF THE COMMUNITY AND THE STATISTICS OF TRADE BETWEEN MEMBER STATES ( NIMEXE ) DOES NOT RESULT IN A REDUCTION OF SUCH QUANTITATIVE LIMITS .

ARTICLE 4

1 . THE COMMUNITY QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 3 SHALL NOT APPLY TO THE COTTAGE INDUSTRY AND FOLKLORE PRODUCTS DEFINED IN ANNEX VII WHICH ARE ACCOMPANIED ON IMPORTATION BY A CERTIFICATE ISSUED BY THE COMPETENT AUTHORITIES OF THE COUNTRY OF ORIGIN IN ACCORDANCE WITH THE PROVISIONS OF ANNEX VII AND WHICH FULFIL THE OTHER CONDITIONS LAID DOWN THEREIN .

2 . THE RELEASE FOR FREE CIRCULATION IN THE COMMUNITY OF THE TEXTILE PRODUCTS REFERRED TO IN PARAGRAPH 1 ORIGINATING IN THE SUPPLYING COUNTRIES LISTED IN ANNEX VIII SHALL BE GRANTED ONLY FOR THOSE PRODUCTS COVERED BY AN IMPORT DOCUMENT ISSUED BY THE COMPETENT AUTHORITIES OF THE MEMBER STATES , PROVIDED THAT SIMILAR MACHINE-MADE PRODUCTS ARE SUBJECT TO THE QUANTITATIVE LIMITS LAID DOWN IN ANNEX IV .

THE SAID IMPORT DOCUMENT SHALL BE ISSUED AUTOMATICALLY WITHIN A MAXIMUM OF FIVE WORKING DAYS AT THE DATE OF PRESENTATION BY THE IMPORTER OF A CERTIFICATE REFERRED TO IN PARAGRAPH 1 ISSUED BY THE COMPETENT AUTHORITIES OF THE SUPPLYING COUNTRY . THE IMPORT DOCUMENT SHALL BE VALID FOR SIX MONTHS AND SHALL STATE THE GROUNDS FOR EXEMPTION AS GIVEN IN THE CERTIFICATE REFERRED TO IN PARAGRAPH 1 .

ARTICLE 5

1 . IMPORTS OF PRODUCTS NOT SUBJECT TO QUANTITATIVE LIMITATION BEFORE 1 JANUARY 1978 WHICH WERE IN THE COURSE OF SHIPMENT TO THE COMMUNITY BEFORE THAT DATE SHALL NOT BE SUBJECT TO THE COMMUNITY QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 3 PROVIDED THEY WERE SHIPPED FROM THE SUPPLYING COUNTRY IN WHICH THEY ORIGINATE BEFORE 1 JANUARY 1978 AND WERE RELEASED FOR FREE CIRCULATION IN THE COMMUNITY BEFORE 1 APRIL 1978 .

2 . THE RELEASE FOR FREE CIRCULATION OF PRODUCTS THE IMPORTATION OF WHICH WAS SUBJECT TO QUANTITATIVE LIMITATION BEFORE 1 JANUARY 1978 AND WHICH WERE SHIPPED BEFORE THE SAID DATE SHALL CONTINUE FROM THAT DATE TO BE SUBJECT TO THE PRESENTATION OF THE SAME IMPORT DOCUMENTS , AND TO THE SAME IMPORT CONDITIONS , AS BEFORE 1 JANUARY 1979 .

ARTICLE 6

1 . THE COMMUNITY QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 3 SHALL NOT APPLY TO PRODUCTS ADMITTED INTO THE CUSTOMS TERRITORY OF THE COMMUNITY UNDER THE ARRANGEMENTS FOR INWARD PROCESSING OR OTHER SUSPENSIVE ARRANGEMENTS , PROVIDED THAT THEY ARE DECLARED TO BE FOR RE-EXPORT UNDER SUCH A SYSTEM OUTSIDE THE SAID TERRITORY IN THE SAME STATE OR AFTER PROCESSING . IN THE CASE OF PRODUCTS ORIGINATING IN SINGAPORE , MALAYSIA , HONG KONG AND SOUTH KOREA , SUCH DECLARATION MUST BE CERTIFIED IN AN EXPORT LICENCE ISSUED BY THE COMPETENT AUTHORITIES OF THE SUPPLYING COUNTRY IN ACCORDANCE WITH ANNEXES V AND VI .

THE SUBSEQUENT RELEASE FOR FREE CIRCULATION OF THE PRODUCTS REFERRED TO IN THE FIRST SUBPARAGRAPH SHALL BE SUBJECT TO THE QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 3 AND TO THE PRESENTATION OF AN IMPORT AUTHORIZATION OR EQUIVALENT DOCUMENT ISSUED IN ACCORDANCE WITH ARTICLE 3 ( 2 ) , AND THE PRODUCTS SO RELEASED SHALL BE CHARGED AGAINST THE COMMUNITY QUANTITATIVE LIMIT ESTABLISHED FOR THE YEAR FOR WHICH THE EXPORT LICENCE WAS ISSUED .

2 . RE-IMPORTATION INTO THE COMMUNITY OF TEXTILE PRODUCTS , AFTER THE PROCESSING IN THE COUNTRIES LISTED IN ANNEX IX OF GOODS TEMPORARILY EXPORTED FROM THE COMMUNITY , SHALL NOT BE SUBJECT TO THE COMMUNITY QUANTITATIVE LIMITS ESTABLISHED IN ARTICLE 3 , PROVIDED THAT THEY HAVE BEEN DECLARED AS SUCH UNDER ONE OF THE OUTWARD PROCESSING ARRANGEMENTS IN FORCE IN THE COMMUNITY PERMITTING QUANTITATIVE ACCOUNTING .

3 . WHERE THE AUTHORITIES IN THE MEMBER STATES ESTABLISH THAT IMPORTS OF TEXTILE PRODUCTS HAVE BEEN CHARGED AGAINST A COMMUNITY QUANTITATIVE LIMIT FIXED PURSUANT TO ARTICLE 3 AND THAT THESE PRODUCTS HAVE SUBSEQUENTLY BEEN RE-EXPORTED OUTSIDE THE COMMUNITY , THEY SHALL INFORM THE COMMISSION THEREOF AND ISSUE ADDITIONAL IMPORT AUTHORIZATIONS FOR THE SAME PRODUCTS AND THE SAME QUANTITIES IN ACCORDANCE WITH ARTICLE 3 ( 2 ) .

IMPORTS EFFECTED UNDER COVER OF SUCH AUTHORIZATIONS SHALL NOT BE CHARGED AGAINST THE COMMUNITY QUANTITATIVE LIMIT FOR THE CURRENT YEAR OR THE FOLLOWING YEAR .

4 . WHERE IMPORTS INTO THE COMMUNITY OF TEXTILE PRODUCTS LISTED IN ANNEX I AND ORIGINATING IN THE SUPPLYING COUNTRIES LISTED IN ANNEX X ARE EFFECTED AT ABNORMALLY LOW PRICES , THE PROVISIONS OF ANNEX X SHALL APPLY .

ARTICLE 7

1 . THE COMMUNITY QUANTITATIVE LIMITS INTRODUCED PURSUANT TO ARTICLE 11 SHALL BE ALLOCATED IN SUCH A WAY AS TO ENSURE THE IMPROVED UTILIZATION OF THESE QUANTITATIVE LIMITS AND TO ATTAIN PROGRESSIVELY A MORE BALANCED PENETRATION OF THE MARKETS BY MEANS OF IMPROVED BURDEN-SHARING BETWEEN THE MEMBER STATES .

2 . THE ALLOCATION OF THE COMMUNITY QUANTITATIVE LIMITS REFERRED TO IN PARAGRAPH 1 SHALL BE ADAPTED IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 15 AND ACCORDING TO THE CRITERIA DEFINED IN PARAGRAPH 1 WHERE THIS PROVES NECESSARY , PARTICULARLY IN VIEW OF TRENDS IN PATTERNS OF TRADE , IN ORDER TO ENSURE THEIR IMPROVED UTILIZATION .

ARTICLE 8

1 . SUPPLIER COUNTRIES MAY , AFTER NOTIFYING THE COMMISSION IN ADVANCE , UTILIZE THE SHARES ALLOCATED TO MEMBER STATES IN THE FOLLOWING WAYS :

( A ) ADVANCE UTILIZATION DURING ANY GIVEN YEAR OF A PORTION OF A SHARE ESTABLISHED FOR THE FOLLOWING YEAR SHALL BE AUTHORIZED FOR EACH CATEGORY OF PRODUCTS UP TO 5 % OF THE SHARE FOR THE YEAR OF ACTUAL UTILIZATION .

SUCH ADVANCE IMPORTS SHALL BE DEDUCTED FROM THE CORRESPONDING SHARES ESTABLISHED FOR THE FOLLOWING YEAR .

( B ) CARRY-OVER OF AMOUNTS NOT UTILIZED DURING ANY GIVEN YEAR TO THE CORRESPONDING SHARE FOR THE FOLLOWING YEAR SHALL BE AUTHORIZED UP TO 5 % OF THE SHARE FOR THE YEAR OF ACTUAL UTILIZATION .

( C ) TRANSFERS OF QUANTITIES IN GROUP I CATEGORIES SHALL BE MADE ONLY AS FOLLOWS :

_ TRANSFERS BETWEEN CATEGORIES 2 AND 3 SHALL BE AUTHORIZED UP TO 5 % OF THE SHARE ESTABLISHED FOR THE CATEGORY TO WHICH THE TRANSFER IS MADE ; HOWEVER , IN THE CASE OF THOSE CATEGORIES OF PRODUCTS ORIGINATING IN SOUTH KOREA , HONG KONG , HUNGARY OR ROMANIA , THE LIMIT SHALL BE 3 * 5 % ,

_ TRANSFERS BETWEEN CATEGORIES 4 , 5 , 6 , 7 AND 8 SHALL BE AUTHORIZED UP TO 5 % OF THE SHARE ESTABLISHED FOR THE CATEGORY TO WHICH THE TRANSFER IS MADE ; HOWEVER , IN THE CASE OF THOSE CATEGORIES OF PRODUCTS ORIGINATING IN SOUTH KOREA , HONG KONG , HUNGARY OR ROMANIA , THE LIMIT SHALL BE 3 * 5 % .

TRANSFERS OF QUANTITIES INTO THE DIFFERENT CATEGORIES IN GROUP II , III , IV , V OR VI MAY BE MADE FROM ANY CATEGORY IN GROUP I , II , III , IV , V OR VI SUBJECT TO A MAXIMUM OF 5 % OF THE SHARE ESTABLISHED FOR THE CATEGORY TO WHICH THE TRANSFER IS MADE .

THE TABLE OF EQUIVALENCE APPLICABLE TO THE ABOVEMENTIONED TRANSFERS IS GIVEN IN ANNEX I .

( D ) THE CUMULATIVE APPLICATION OF THE PROVISIONS OF POINTS ( A ) , ( B ) AND ( C ) MAY NOT , IN THE COURSE OF ANY GIVEN YEAR , CAUSE A LIMIT ESTABLISHED FOR THE CATEGORY AND FOR THE YEAR IN QUESTION TO BE EXCEEDED BY MORE THAN 15 % ; HOWEVER , IN THE CASE OF CATEGORIES OF PRODUCTS ORIGINATING IN SOUTH KOREA , HONG KONG , HUNGARY OR ROMANIA SUCH AN EXCESS MAY NOT BE GREATER THAN 11 % FOR GROUP I CATEGORIES AND 12 * 5 % FOR CATEGORIES IN GROUP II , III , IV , V OR VI .

2 . IN THE EVENT OF RECOURSE BY A SUPPLIER COUNTRY TO THE PROVISIONS OF PARAGRAPH 1 , THE COMMISSION SHALL NOTIFY THE AUTHORITIES OF THE MEMBER STATE CONCERNED WHICH SHALL AUTHORIZE THE IMPORTS IN QUESTION IN ACCORDANCE WITH THE DOUBLE-CHECKING SYSTEM DEFINED IN ANNEXES V AND VI .

3 . WHERE A MEMBER STATE'S SHARE HAS BEEN INCREASED BY THE APPLICATION OF PARAGRAPH 1 ABOVE , OR OF ARTICLE 9 , OR WHERE FURTHER POSSIBILITIES FOR IMPORTS INTO THAT MEMBER STATE HAVE BEEN CREATED UNDER ARTICLE 9 , SUCH INCREASES OR FURTHER IMPORT POSSIBILITIES SHALL NOT BE TAKEN INTO ACCOUNT FOR THE PURPOSES OF APPLYING PARAGRAPH 1 IN THE CURRENT YEAR OR SUBSEQUENT YEARS .

ARTICLE 9

1 . MEMBER STATES WHICH FIND THAT THEY REQUIRE ADDITIONAL IMPORTS FOR THEIR INTERNAL CONSUMPTION OR WHICH CONSIDER THAT THEIR SHARE MAY NOT BE FULLY UTILIZED SHALL NOTIFY THE COMMISSION ACCORDINGLY .

2 . THE COMMUNITY QUANTITATIVE LIMITS LAID DOWN IN ARTICLE 3 MAY BE INCREASED IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 15 WHERE IT APPEARS THAT ADDITIONAL IMPORTS ARE REQUIRED .

3 . AT THE REQUEST OF A MEMBER STATE WHICH FINDS THAT IT REQUIRES ADDITIONAL IMPORTS , EITHER ON THE OCCASION OF FAIRS OR WHERE IT HAS ISSUED IMPORT AUTHORIZATIONS OR EQUIVALENT DOCUMENTS FOR UP TO 80 % OF ITS NATIONAL SHARE , THE COMMISSION MAY , AFTER ORAL OR WRITTEN CONSULTATIONS WITH THE MEMBER STATES WITHIN THE COMMITTEE SET UP UNDER ARTICLE 14 , OPEN UP ADDITIONAL POSSIBILITIES FOR IMPORTS INTO THAT MEMBER STATE .

IN AN EMERGENCY , THE COMMISSION SHALL OPEN CONSULTATIONS WITHIN THE COMMITTEE WITHIN FIVE WORKING DAYS FOLLOWING RECEIPT OF THE REQUEST FROM THE MEMBER STATE CONCERNED AND SHALL TAKE A DECISION WITHIN 15 WORKING DAYS CALCULATED FROM THE SAME DATE .

ARTICLE 10

1 . THE AUTHORITIES OF THE MEMBER STATES SHALL ISSUE THE IMPORT AUTHORIZATIONS OR EQUIVALENT DOCUMENTS PROVIDED FOR IN ARTICLE 3 ( 2 ) UP TO THE AMOUNT OF THEIR SHARES , TAKING INTO ACCOUNT THE MEASURES TAKEN PURSUANT TO ARTICLES 7 , 8 AND 9 .

2 . THE IMPORT AUTHORIZATIONS OR EQUIVALENT DOCUMENTS SHALL BE ISSUED IN ACCORDANCE WITH ANNEXES V AND VI .

3 . THE QUANTITIES OF PRODUCTS COVERED BY THE IMPORT AUTHORIZATIONS OR EQUIVALENT DOCUMENTS PROVIDED FOR IN ARTICLE 3 SHALL BE CHARGED AGAINST THE SHARE OF THE MEMBER STATE WHICH ISSUED THOSE AUTHORIZATIONS OR DOCUMENTS .

ARTICLE 11

1 . THE IMPORTATION INTO THE COMMUNITY OF TEXTILE PRODUCTS LISTED IN ANNEX I , ORIGINATING IN THE SUPPLIER COUNTRIES LISTED IN ANNEX II AND NOT SUBJECT TO THE COMMUNITY QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 3 , SHALL BE SUBJECT TO A SYSTEM OF ADMINISTRATIVE CONTROL .

2 . SHOULD IMPORTS INTO THE COMMUNITY OF PRODUCTS FALLING WITHIN ANY GIVEN CATEGORY , REFERRED TO IN PARAGRAPH 1 AND ORIGINATING IN ONE OF THE SUPPLIER COUNTRIES , EXCEED , IN RELATION TO THE PRECEDING CALENDAR YEAR'S TOTAL IMPORTS INTO THE COMMUNITY OF PRODUCTS IN THE SAME CATEGORY , THE PERCENTAGES INDICATED IN THE TABLE APPEARING IN ANNEX XI , SUCH IMPORTS MAY BE MADE SUBJECT TO QUANTITATIVE LIMITS UNDER THE CONDITIONS LAID DOWN IN THIS ARTICLE . THESE ARRANGEMENTS MAY BE LIMITED TO IMPORTS INTO SPECIFIC REGIONS OF THE COMMUNITY .

3 . SHOULD THE IMPORTS REFERRED TO IN PARAGRAPH 2 INTO A GIVEN REGION OF THE COMMUNITY EXCEED , IN RELATION TO THE TOTAL QUANTITIES CALCULATED FOR THE WHOLE COMMUNITY ACCORDING TO THE PERCENTAGE SPECIFIED IN PARAGRAPH 2 , THE PERCENTAGE SET FOR THAT REGION IN THE TABLE BELOW , SUCH IMPORTS MAY BE MADE SUBJECT TO QUANTITATIVE LIMITS IN THE REGION IN QUESTION :

GERMANY 28 * 5 %

BENELUX 10 * 5 %

FRANCE 18 * 5 %

ITALY 15 %

DENMARK 3 %

IRELAND 1 %

UNITED KINGDOM 23 * 5 %

4 . PARAGRAPHS 2 AND 3 SHALL NOT APPLY WHERE THE PERCENTAGES SPECIFIED THEREIN HAVE BEEN REACHED AS A RESULT OF A FALL IN TOTAL IMPORTS INTO THE COMMUNITY , AND NOT AS A RESULT OF AN INCREASE IN EXPORTS OF PRODUCTS ORIGINATING IN THE SUPPLIER COUNTRY CONCERNED .

5 . MEASURES TAKEN PURSUANT TO THIS PARAGRAPH SHALL BE THE SUBJECT OF A COMMISSION COMMUNICATION PUBLISHED WITHOUT DELAY IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

WHERE THE COMMISSION FINDS , IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 15 , THAT THE CONDITIONS SET OUT IN PARAGRAPHS 2 AND 3 ARE FULFILLED AND CONSIDERS THAT A GIVEN CATEGORY OF PRODUCTS SHOULD BE MADE SUBJECT TO A QUANTITATIVE LIMIT , WITH THE CONCURRING OPINION OF THE COMMITTEE UNDER THE PROCEDURE IN ARTICLE 15 :

( A ) IT SHALL OPEN CONSULTATIONS WITH THE SUPPLIER COUNTRY CONCERNED IN ACCORDANCE WITH THE PROCEDURE SPECIFIED IN ARTICLE 13 , WITH A VIEW TO REACHING AN AGREEMENT OR JOINT CONCLUSIONS ON A SUITABLE LEVEL OF LIMITATION FOR THE CATEGORY OF PRODUCTS IN QUESTION ;

( B ) IT MAY REQUEST THE SUPPLIER COUNTRY CONCERNED , WITH EFFECT FROM THE DATE OF NOTIFICATION OF THE REQUEST FOR CONSULTATIONS AND PENDING A MUTUALLY SATISFACTORY SOLUTION , TO SUSPEND OR LIMIT AT THE LEVEL INDICATED BY THE COMMISSION ITS EXPORTS OF THE CATEGORY OF PRODUCTS IN QUESTION TO THE COMMUNITY OR TO ONE OR MORE REGIONS THEREOF ;

( C ) IT MAY , PENDING THE OUTCOME OF THE REQUESTED CONSULTATIONS , APPLY TO THE IMPORTS OF THE CATEGORY OF PRODUCTS IN QUESTION QUANTITATIVE LIMITS IDENTICAL TO THOSE REQUESTED OF THE SUPPLIER COUNTRY PURSUANT TO POINT ( B ) . THESE MEASURES SHALL BE WITHOUT PREJUDICE TO THE DEFINITIVE ARRANGEMENTS TO BE MADE BY THE COMMUNITY , TAKING INTO ACCOUNT THE RESULTS OF THE CONSULTATIONS .

6 . THE CONSULTATIONS WITH THE SUPPLIER COUNTRY CONCERNED WHICH ARE PROVIDED FOR IN PARAGRAPH 5 ( A ) MAY LEAD TO THE CONCLUSION OF AN ARRANGEMENT BETWEEN THAT COUNTRY AND THE COMMUNITY OR THE ADOPTION OF JOINT CONCLUSIONS ON THE INTRODUCTION AND LEVEL OF QUANTITATIVE LIMITS .

SUCH ARRANGEMENTS OR JOINT CONCLUSIONS SHALL STIPULATE THAT THE QUANTITATIVE LIMITS AGREED BE ADMINISTERED IN ACCORDANCE WITH A DOUBLE-CHECKING SYSTEM .

7 . SHOULD THE COMMUNITY AND THE SUPPLIER COUNTRY FAIL TO REACH A SATISFACTORY SOLUTION WITHIN ONE MONTH FOLLOWING THE OPENING OF CONSULTATIONS , AND AT THE LATEST WITHIN TWO MONTHS FOLLOWING NOTIFICATION OF THE REQUEST FOR CONSULTATIONS , IMPORTS OF THE CATEGORY OF PRODUCTS IN QUESTION MAY BE MADE SUBJECT TO THE QUANTITATIVE LIMITS INDICATED IN THE REQUEST FOR CONSULTATIONS AT AN ANNUAL LEVEL NOT LOWER THAN THAT REACHED BY IMPORTS OF THE SAID CATEGORY OF PRODUCTS AND INDICATED IN THE REQUEST FOR CONSULTATIONS .

8 . THE ARRANGEMENTS PROVIDED FOR IN PARAGRAPH 6 SHALL BE CONCLUDED , AND THE MEASURES PROVIDED FOR EITHER IN PARAGRAPHS 5 AND 7 , OR IN THE ARRANGEMENTS OR JOINT CONCLUSIONS REFERRED TO IN PARAGRAPH 6 SHALL BE DECIDED IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 15 .

9 . THE ANNUAL LEVEL OF THE QUANTITATIVE LIMITS LAID DOWN IN ACCORDANCE WITH PARAGRAPHS 5 TO 8 MAY NOT BE LESS THAN THE LEVEL OF IMPORTS , INTO THE COMMUNITY OR INTO THE REGION OR REGIONS CONCERNED IN 1976 , OF PRODUCTS OF THE SAME CATEGORY AND ORIGINATING IN THE SAME SUPPLIER COUNTRY .

10 . WHERE THE DEVELOPMENT OF TOTAL IMPORTS INTO THE COMMUNITY OF A PRODUCT WHICH IS SUBJECT TO A QUANTITATIVE LIMIT FIXED IN ACCORDANCE WITH PARAGRAPHS 5 TO 8 RENDERS IT NECESSARY , THE ANNUAL LEVEL OF THAT QUANTITATIVE LIMIT SHALL BE INCREASED , AFTER CONSULTATION WITH THE SUPPLIER COUNTRY IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 13 , TO ENSURE COMPLIANCE WITH THE CONDITIONS SET OUT IN PARAGRAPHS 1 AND 2 .

11 . THE QUANTITATIVE LIMITS FIXED IN ACCORDANCE WITH PARAGRAPHS 6 , 7 AND 8 SHALL PROVIDE FOR A MINIMUM ANNUAL GROWTH RATE DETERMINED AS FOLLOWS :

( A ) FOR PRODUCTS OF GROUP I :

_ 0 * 5 % PER ANNUM FOR PRODUCTS OF CATEGORIES 1 AND 2 ,

_ 4 % PER ANNUM FOR PRODUCTS OF CATEGORIES 3 TO 8 .

( B ) FOR PRODUCTS OF GROUPS II , III , IV , V AND VI , THE RATE SHALL BE DETERMINED IN THE AGREEMENTS WITH THE SUPPLIER COUNTRIES PROVIDED FOR IN PARAGRAPH 5 , BY MUTUAL AGREEMENT WITH THE SUPPLIER COUNTRY CONCERNED IN THE CONTEXT OF THE CONSULTATION PROCEDURE LAID DOWN IN ARTICLE 13 .

12 . THE QUANTITATIVE LIMITS ESTABLISHED PURSUANT TO PARAGRAPHS 5 TO 8 SHALL NOT APPLY TO PRODUCTS WHICH HAVE ALREADY BEEN DISPATCHED TO THE COMMUNITY PROVIDED THAT THEY WERE SHIPPED FROM THE SUPPLIER COUNTRY IN WHICH THEY ORIGINATE FOR EXPORT TO THE COMMUNITY BEFORE THE DATE OF NOTIFICATION OF THE REQUEST FOR CONSULTATIONS .

13 . THE QUANTITATIVE LIMITS ESTABLISHED PURSUANT TO PARAGRAPHS 5 TO 8 SHALL BE ADMINISTERED IN ACCORDANCE WITH ARTICLES 3 TO 10 , SAVE AS OTHERWISE PROVIDED IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 15 .

ARTICLE 12

1 . IN RESPECT OF EACH QUANTITATIVE LIMIT SET OUT IN ANNEX IV , MEMBER STATES SHALL NOTIFY THE COMMISSION , WITHIN THE FIRST 10 DAYS OF EACH MONTH , OF THE TOTAL QUANTITIES , IN THE APPROPRIATE UNITS AND BY COUNTRY OF ORIGIN AND CATEGORY OF PRODUCTS , FOR WHICH IMPORT AUTHORIZATIONS HAVE BEEN ISSUED DURING THE PRECEDING MONTH .

2 . IN RESPECT OF THE TEXTILE PRODUCTS IN ANNEX I , MEMBER STATES SHALL NOTIFY THE COMMISSION MONTHLY , WITHIN 30 DAYS FOLLOWING THE END OF EACH MONTH , OF THE TOTAL QUANTITIES IMPORTED DURING THAT MONTH , BY COUNTRY OF ORIGIN AND NIMEXE CODE AND IN THE UNITS , INCLUDING WHERE APPROPRIATE SUPPLEMENTARY UNITS , OF THE NIMEXE CODE .

THE IMPORTS SHALL BE BROKEN DOWN IN ACCORDANCE WITH THE STATISTICAL PROCEDURES IN FORCE .

3 . MEMBER STATES SHALL NOTIFY THE COMMISSION MONTHLY WITHIN 30 DAYS FOLLOWING THE END OF EACH MONTH , OF THE QUANTITIES , IN THE APPROPRIATE UNITS AND BY COUNTRY OF ORIGIN AND CATEGORY OF PRODUCTS , OF PRODUCTS SPECIFIED IN PARAGRAPH 1 OF ANNEX VII .

4 . IN ORDER TO ENABLE MARKET TRENDS IN THE PRODUCTS COVERED BY THIS REGULATION TO BE MONITORED , MEMBER STATES SHALL COMMUNICATE TO THE COMMISSION , BEFORE 31 MARCH EACH YEAR , STATISTICAL DATA FOR THE PRECEDING YEAR ON EXPORTS . THE STATISTICAL DATA RELATING TO THE PRODUCTION AND CONSUMPTION OF EACH PRODUCT SHALL BE FORWARDED UNDER ARRANGEMENTS TO BE DETERMINED SUBSEQUENTLY PURSUANT TO THE PROCEDURE LAID DOWN IN ARTICLE 15 .

5 . WHERE THE NATURE OF THE PRODUCTS OR PARTICULAR CIRCUMSTANCES SO REQUIRE , THE COMMISSION MAY , AT THE REQUEST OF A MEMBER STATE OR ON ITS OWN INITIATIVE , ALTER THE TIME LIMITS FOR COMMUNICATING THE ABOVEMENTIONED INFORMATION UNDER THE PROCEDURE LAID DOWN IN ARTICLE 15 .

6 . MEMBER STATES SHALL NOTIFY THE COMMISSION , UNDER CONDITIONS SET IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 15 , OF ALL OTHER PARTICULARS DEEMED UNDER THAT PROCEDURE TO BE NECESSARY IN ORDER TO ENSURE COMPLIANCE WITH THE OBLIGATIONS AGREED BETWEEN THE COMMUNITY AND THE SUPPLIER COUNTRIES .

ARTICLE 13

THE COMMISSION SHALL CONDUCT THE CONSULTATIONS WITH THE SUPPLIER COUNTRIES PROVIDED FOR BY THIS REGULATION IN ACCORDANCE WITH THE FOLLOWING RULES :

_ THE COMMISSION SHALL NOTIFY THE SUPPLIER COUNTRY CONCERNED OF THE REQUEST FOR CONSULTATIONS .

_ WHERE APPROPRIATE , THE REQUEST FOR CONSULTATIONS SHALL BE FOLLOWED , WITHIN A REASONABLE PERIOD , AND IN ANY EVENT WITHIN 15 DAYS OF THE NOTIFICATION , BY A REPORT SETTING OUT THE CONDITIONS WHICH , IN THE COMMISSION'S OPINION , JUSTIFY THE SUBMISSION OF SUCH A REQUEST ,

_ THE COMMISSION SHALL INITIATE CONSULTATIONS WITHIN ONE MONTH AT THE LATEST OF NOTIFICATION OF THE REQUEST , WITH A VIEW TO REACHING AGREEMENT OR A MUTUALLY ACCEPTABLE CONCLUSION WITHIN ONE MONTH AT THE LATEST .

ARTICLE 14

1 . A TEXTILE COMMITTEE , HEREINAFTER CALLED " THE COMMITTEE " , COMPOSED OF REPRESENTATIVES OF THE MEMBER STATES AND CHAIRED BY A COMMISSION REPRESENTATIVE , IS HEREBY SET UP .

2 . THE COMMITTEE SHALL DRAW UP ITS RULES OF PROCEDURE .

ARTICLE 15

1 . WHERE REFERENCE IS MADE TO THE PROCEDURE DEFINED IN THIS ARTICLE , THE CHAIRMAN , ON HIS OWN INITIATIVE OR AT THE REQUEST OF A MEMBER STATE , SHALL REFER THE MATTER TO THE COMMITTEE .

2 . THE COMMISSION REPRESENTATIVE SHALL SUBMIT DRAFT MEASURES TO THE COMMITTEE . THE COMMITTEE SHALL DELIVER AN OPINION ON THE DRAFT MEASURES WITHIN A PERIOD WHICH MAY BE FIXED BY THE CHAIRMAN DEPENDING ON THE DEGREE OF URGENCY OF THE MATTERS TO BE EXAMINED . THE COMMITTEE SHALL DECIDE BY A MAJORITY OF 41 VOTES , THE VOTES OF THE MEMBER STATES BEING WEIGHTED AS SPECIFIED IN ARTICLE 148 ( 2 ) OF THE TREATY . THE CHAIRMAN SHALL NOT VOTE .

3 . ( A ) THE COMMISSION SHALL ADOPT THE MEASURES PROPOSED WHERE THEY ARE IN CONFORMITY WITH THE COMMITTEE'S OPINION .

( B ) WHERE THE MEASURES PROPOSED ARE NOT IN CONFORMITY WITH THE COMMITTEE'S OPINION , OR WHERE NO OPINION HAS BEEN GIVEN , THE COMMISSION SHALL SUBMIT TO THE COUNCIL WITHOUT DELAY A PROPOSAL FOR THE MEASURES TO BE TAKEN . THE COUNCIL SHALL ACT BY A QUALIFIED MAJORITY .

( C ) SHOULD THE COUNCIL FAIL TO TAKE A DECISION WITHIN ONE MONTH OF THE DATE ON WHICH THE PROPOSAL WAS LAID BEFORE IT , THE COMMISSION SHALL ADOPT THE PROPOSED MEASURES .

ARTICLE 16

THE CHAIRMAN MAY , ON HIS OWN INITIATIVE OR AT THE REQUEST OF ONE OF THE MEMBER STATES' REPRESENTATIVES , CONSULT THE COMMITTEE ABOUT ANY OTHER MATTER RELATING TO THE OPERATION OF THIS REGULATION .

ARTICLE 17

THE MEMBER STATES SHALL INFORM THE COMMISSION FORTHWITH OF ALL MEASURES TAKEN PURSUANT TO THIS REGULATION AND OF ALL LAWS , REGULATIONS OR ADMINISTRATIVE PROVISIONS CONCERNING ARRANGEMENTS FOR IMPORTATION OF THE PRODUCTS COVERED BY THIS REGULATION .

ARTICLE 18

ANY AMENDMENTS OR ADJUSTMENTS TO THE ANNEXES TO THIS REGULATION WHICH MAY BE NECESSARY TO TAKE INTO ACCOUNT THE CONCLUSION , AMENDMENT OR EXPIRY OF AGREEMENTS OR ARRANGEMENTS WITH THIRD COUNTRIES OR AMENDMENTS MADE TO COMMUNITY RULES ON STATISTICS , CUSTOMS ARRANGEMENTS OR COMMON IMPORT ARRANGEMENTS SHALL BE ADOPTED IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 15 .

ARTICLE 19

1 . THIS REGULATION SHALL ENTER INTO FORCE ON THE THIRD DAY FOLLOWING ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

IT SHALL APPLY UNTIL 31 DECEMBER 1982 .

2 . REGULATION ( EEC ) N 3019/77 AND REGULATION ( EEC ) N 265/78 , WITH THE EXCEPTION OF ARTICLE 4 THEREOF , ARE HEREBY REPEALED .

3 . ALL MEASURES TAKEN PURSUANT TO THE REGULATIONS MENTIONED IN PARAGRAPH 2 SHALL REMAIN VALID FOR THE PURPOSES OF THIS REGULATION .

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

DONE AT BRUSSELS , 21 DECEMBER 1978 .

FOR THE COUNCIL

THE PRESIDENT

OTTO GRAF LAMBSDORFF

ANNEXES : SEE O.J . N L 365 OF 27 . 12 . 78