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DOCUMENTS "COM"
COM(76)160
Vol.1976/0046

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)160final.
k.
j i
! Brussels.22April1976*
i..v.
h-'<" .\ ,
Sr .x*> \
■':?J«v'
'S <Sr> , ■
■:V; ■.■'.f ■'v1
.Proposalfora
REGULATION(EEC)OPTHECOUNCIL
ontheopening,allocationandadministration ofaCommunity
■tariffquotaforprocessingworkinrelationtocertaintextile
productsundertheoutwardprocessingtrafficarrangements of
theCommunity.,.
(submittedtotheCouncilbytheCommission)
,■>>
C0K(76)160final.■■

EXPLANATORY MEMORANDUM
Τ·>
I#InanArrangement ooncludedwiththeSwissFederationonIAugustI9°9i
theEuropeanEoonomioCommunityundertooktoopenanannualdutyfree
Communitytariffquotaof1,879,000unitsofacoountofaddedvalueonthe
variouskindsofprocessingworkforcertaintextileproduotsincludedinthe
outwardprooesBingtrafficoftheCommunitytoSwitzerland#
2.UnderthetermsofthememorandumagreedatthetimetheArrangement was
made,thisannualtariffquotaisdividedintothreecategoriesofpro­
cessing,basedonthequantitiesrecordedundertheformer "bilateralagree­
ments(concludedwithSwitzerlandbyPrance,GermanyandItaly),buttaking
intoaccountthepossibilities ofextendingittotheBeneluxcountries#
■Onthebasis«fthatdivisionthetotalquotaamountof1,870,000unitsof
accountisappropriated asfollows:
a)1,650,000unitsofaocountforprocessingworkonwovenfabricsfalling
withinChapters50"to57of.theCommonCustomsTariffj
b)143,000unitsofaccountfortwistingorthrowing,re–twistingcabling,
texturizing (whetherornotcombinedwithotherprocessingwork)ofyarns
fallingwithinChapters50to57oftheCwmmenCustomsTariffJ
o)77»000uniteofaooountforprocessingworkonarticlesfallingwithin
headings50»O4,58«05,58*07f58*08,58*0960.01oftheCommon
CustomsTariff#
(I)©JNoL240,24#9»I969.

AttherequestoftheSwissauthoritiesandBOthatthedivisionof.ne
wholequotainto'thethreecategoriesofprocessingreferredtoaboveshould
bebetterrelatedtotheaotml'movement^"tradeduringthereferenceyear
whichservedasthe"basisfor.calculatingt,hetotalamountofthequotaand
trademovementstaringrecentquotaperiodsorforeseeablemovements,itwas
decidedtomakecertaintr^sfers/between,thethreequotaamountsof
whichthefinalonewas150,000u.a.;transferringfromthefigure.alloca­
tedforprooeaeingworkonarticles'(categoryC)tothatBet.asidefor._
processingworkonwovenfabricsfallingwithinChapters50to57.Simi­
larlyandinordertoallowaccesstothetariffquota,it.wasdecidedthat
the'Communityreservesshouldbe.amalgamatedandthatinthiswaythe^new
reservecouldcoveralltypesofprocessing'workregardlessofthecate­
gorytheycomeunder» . * .
The"'totalquotaamountof1,810,000u.a.wouldbeallocatedamongthethroe
categoriesasfollows;....'•.*■'.'
«1,520,000u.a,forprocessingoperationsonwovenfabricsailingw-tlan
Chapters50to57oftheCommonCustomsTariff5 t ■
-12^000u.a#forprocessingoperationsonwovenfabricsfallingwitlun
Chapljeys5°to57oftheCCTj^ -!'-'227,000 .u.a,fqvprooessing^woykonarticlestailingwithinheacungs
:"*58.04to'60.01of'theCCT^subjectto'thesettingupofaCoonmnityre­
serveof230,000u.a.tobedrawn^romtheabovefounts,^hat.is.160,000
uia.»*X3»000u.a.'andv57,000u.a.respectively.
t.
.TheonlyobjectiveoftheproposalRegulationannexedhoretois,therefore,
toopenthetariffquotaprovidedforintheArrangementconcernedforthe
periodfromISeptember197(5to31August197?',andtodivideitbetweenthe
MemberStatesaccordingtothefactor,showninthe.KahOMBd®totheArrange
mentreferredtoabove,talcingintoaccounttheamendmentswhichhavebaon
mademeanwhileandtheneedioprovidefortheparticipationofthenew
MemberStatesintheallocationofthetariffquota.

-3-
Itshouldhoweverbenotedinthisconnectionthataccordingtoinformation
obtainedduringthemeetingofthejointEEC-SwissCommission ,confirmed
bytheStateofexhaustionofthequotaconcernedduringpreviouscjuota
periods,thenewMemberStatesarenotusingoutwardprocessingfortheir
textileproduots# UntilBuchtimeasthesaidArrangementisrepealedor
thoroughlyamendedbyreasonoftheexpiryoftheperiodoftransitionof
the_AgreementconcludedwithSwitzerland ,itshouldbepossible
inordertocoveranyneedswhichcouldariseinthenewMemberStatesfor
theseStatestodrawasufficientshare,wherenecessary,fromtheCommunity
reserve#
5.TheproposalforaRegulationannexedheretoprovidesfortheadministration
ofthequotabythesystemofpriorallocationandthatthemaximumamount
returnedtothereserveshallbe2CP/Ooftheinitialshare.

ΑΪΓΝΕΧ
Proposalfora
REGULATION (EEC)No..»/l6OFTHECOUNCIL
of••••«•••
ontheopening,allocationandadministration ofaCommunitytariffquotafor
processingworkinrespectofcertaintextileproductsunderCommunity
outwardprocessingarrangements
!THECOUNCILOFTHEEUROPEAN
:COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle113
thereof;...
Having.regardtotheproposalfromtheCommission ;
Whereason1August1969theCommunity
concludedanarrangementwithSwitzerlandon
processingtrafficintextiles;whereasunderthatarran­
gementtheCommunityundertooktoopenon1
SeptemberofeveryyearanannualdutyfreeCommu­
nitytariffquotaforprocessedgoodsof1870000
unitsofaccountofaddedvalue,apportionedasfollows:
(a)I650000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
(b)14.?000unitsofaccountforthetwistingor
throwing,cablingandtexturizing(whetheror'not
combinedwithotherprocessingworks)ofyarns
fallingwithinChapters50to57oftheCommon
CustomsTariff;
(c)77000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,58.05
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
Whereas,inorderthatthedivisionofthewholequota
intothethreecategoriesreferredtoaboveshallcorres­
pondmoreexactlywiththeactualmovementoftrade
duringthereferenceyearorduringpreviousquota
periodsaswellaswiththeforeseeablemovementoftradeduringfuturequotaperiods,ithasbeendecided
toadjustthesaidallocationbetweenthethreecatego-*
riesbygivingthem1520000,123000and227000
unitsofaccountrespectively;whereastheCommu­
nitytariffquotainquestionshouldbeopenedforthe
period1September1976to31August1977
accordingtotheprovisionslaiddowninthearrange­
mentspecifiedabove,andinamendmentstoit;
Whereasprovisionshouldbemadeinparticularto
ensureequalandcontinuousaccessforthose
concernedwiththisquotaandconsistentapplication
oftherateofdutyprescribedforthesaidquotauntil
thequotaisexhausted,toallgoodsre-importedinto
anyoftheMemberStatesandwhichhavereceived
oneorotherofthetreatmentslistedabove;whereas
inthelightoftheseprinciplesarrangementsforthe
utilizationofthequotabasedonanallocationamong
theMemberStateswouldseemtobeconsistentwith
theCommunitycharacterofthesaidquota;whereas,
itthereforeseemsappropriatetomaketheallocation
onthebasisoftheamountofthetrafficunderthe
previousbilateralagreements,butwithoutprecluding
participationbyMemberStatesnotpreviously
involvedinsuchtraffic,amongwhichthenew
MemberStatesareincluded;whereas,tosafeguardthe
Communitycharacterofthequota,provisionshould
bemadetomeetrequirementswhichmayarisein
thoseMemberStatesinthefuturepermittingthemto'
drawadequateamountsfromtheCommunityreserve;
Whereastotakeaccountoffuturetrendsinthetraffic
inquestioninthevariousMemberStates,thetotal
quotavolumeofI870000unitsofaccountshouldbe
dividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesandthesecondheldas
areservetocoverthesubsequentrequirementsof
MemberStateswhenoneoftheirinitialshareshave
beenexhaustedandalso,requirementswhichmay
ariseincertainMemberStatesinrespectofprocessing
work(orwhichnoinitialshareofthequotawasallo­
cated;whereasinordertogivethepartiesconcerned

ineachMemberStatesomedegreeofcertaintyit
wouldseemappropriatetofixthefirsttrancheofthe
Communityquotaatarelativelyhighlevel,namely,
1640000unitsofaccount;whereasthetotalCommu­
nityreserveof230000unitsofaccountshallconsist
ofamountsdrawnfromtheallocationsinrespectof
eachcategory,thatis160000,13000and57000
unitsofaccountrespectively ;
WhereastheMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruption
ofsuppliesonthisaccountitshouldbeprovidedthat
anyMemberStatewhichhasalmostuseduponeofits
initialsharesshoulddrawanadditionalsharefromthe
reserve;whereaseachtimeitsadditionalshareis
almostexhaustedaMemberStateshoulddrawa
furthershare,andsoon,asmanytimesasthereserve
allows;whereastheinitialandadditionalshares
shouldbevaliduntiltheendofthequotaperiod;
whereasthisformofadministration requiresclose
collaboration betweentheMemberStatesandthe
Commission,andtheCommissionmustbeinaposi­
tiontokeepaccountoftheextenttowhichthequota
hasbeenusedupandtoinformtheMemberStates
accordingly ;,
Whereasifatagivendateduringthequotaperioda
considerablequantityofaMemberStatesinitialshare
remainsunuseditisessential,topreventapartofthe
quotafromremainingunusedinoneMemberState
whileitcouldbeusedinothers,thatsuchState
shouldreturnasignificantproportionthereoftothe
reserve; ■<
Whereas,sincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourgareunitedinandjointlyrepresentedby
theBeneluxEconomicUnion,anytransaction'in
connectionwiththeadministration ofthesharesallo­
catedtothatEconomicUnionmaybecarriedoutby
anyoneofitsmembers,
HASADOPTEDTHISREGULATION :
Article1
1.Asfrom1September1976anduntil31August
197^,aCommunitytariffquotaof1870000unitsof
accountofvalueaddedshallbeopenedintheEuro­
peanEconomicCommunityinrespectofgoods
resultingfromprocessingworkasprovidedforinthe
arrangementwithSwitzerlandonprocessingtrafficin
textiles.Suchquotashallbeapportionedasfollows:'
(a)1520000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff; <
(b)123000unitsofaccountfortwistingorthrowing,
•cablingandtexturizing(whetherornotpombined
withotherprocessingwork)ofyarnsfallingwithin
Chapters50to57oftheCommonCustoms
Tariff; ,(c)227000unitsofaccountforprocessingworkon
articlesfallingwithinthefollowingheadingsof
theCommonCustomsTariff:
58.04Wovenpilefabricsandchenillefabrics
(otherthanterrytowellingorsimilarterry-
fabricsofcottonfallingwithinheadingNo
55.08andfabricsfallingwithinheadingNo
58.05);
;58.05Narrowwovenfabrics,andnarrowfabrics
(bolduc)consistingofwarpwithoutweft
assembledbymeansofanadhesive,other
.thangoodsfallingwithinheadingNo
58.06;
58.07Chenilleyarn(includingflockchenille
yarn),gimpedyarn(otherthanmetallized
yarnofheadingNo52.04an^gimped
horsehairyarn);braidsandornamentaltrim­
mingsinthepiece;tassels,pomponsand
•'thelike; . .
'58.08Tulleandothernetfabrics(butnot
including .woven,knittedorcrocheted
fabrics),plain(a); <
58.09Tullejandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),figured;handormechanically
madelace,inthepiece,instripsorin
motifs; "
60.01Knittedorcrochetedfabric,notelasticor
rubberized . .
2.ForthepurposesofthisRegulation :
(a)'processingworkmeans':
–forthepurposesofparagraph 1(a)and(c):
bleaching,dyeing,printing,flocking,impreg­
nating,dressingandotherworkwhichchanges
theappearanceorqualityofthegoods,without
howeverchangingtheirnature;
-–forthepurposesofparagraph 1(b):twistingor
ithrowing,cablingandtexturizing,whetheror
'•notcombinedwithreeling,dyeingorother
workwhichchangestheappearance,qualityor
finishofthegoods,withouthoweverchanging
theirnature;
(b)'valueadded'means:thedifferencebetweenthe
,'valueforcustomspurposesasdefinedinRegula­
tion(EEC)No803/68(')atthetimeofre-importa-
tionandthevalueforcustomspurposesasit
wouldbeiftheproductswerere-importedinthe
stateinwhichtheywereexported. <
3.Eachportionaslaiddowninparagraph 1shall
bedividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesinaccordancewith
Article3andthesecond,beingusedtoconstitutea
reservewhichshallbecommontothethreecategories
ofprocessing.
(i)OJNoL148,28.6.1968,p.I.

3
4.Withinthistariffquota,theCommonCustoms
Tariffdutiesshallbetotallysuspended.
Withinthistariffquota,thenewMemberStatesshall
applydutiescalculatedinaccordancewiththerele­
vantprovisionsoftheActofAccession.
/
;! .
,Article2
j 1.Thefirsttrancheofeachportionofthequotaas
!laiddowninArticle1(1)shallbeallocatedassetout
'belowamongtheMemberStateslistedintheabove
jarrangement ;theshares,subjecttoArticle6,shallbe
jvalidfrom1September1976to31August197!•
I ' ■• ,
(a)Germany:
1080000unitsofaccount,apportioned as
follows:
'–850000unitsofaccountforprocessingwork
onwovenfabricsfallingwithinChapters50to
57oftheCommonCustomsTariff;
'•–100000unitsofaccountfortwistingor
throwing,cablingandtexturizing(whetheror
notcombinedwithotherprocessingwork)of
yarnsfallingwithinChapters50to57ofthe
CommonCustomsTariff;
–130000unitsofaccountforprocessingwork
onproductsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
(b)France:
520000unitsofaccount,apportionedasfollows:
–500000unitsofaccountforprocessingwork
onfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
–20000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01oftbe
CommonCustomsTariff;
(c)Italy:
20000unitsofaccount,i.e.halffortwistingor
throwing,cablingandtexturizing (whetherornot
combinedwithotherprocessingwork)ofyarns
fallingwithinChapters50to57oftheCommon
CustomsTariff,andhalfforprocessingworkon
,productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
(d)Benclux:
20000unitsofaccountforprocessingworkon
threadsandwovenfabricsfallingwithinChapters50to57orforproductsfallingwithinheading
Nos58.04,58.05,58.07,58.08,58.09and60.01of
theCommonCustomsTariff.
2.Thesecondtranchewhichamountsto230000
unitsofaccountshallconstituteaCommunityreserve
whichmaybeusedforthethreecategoriesof
processing .
Article3 '
Incaseofneed,eitherinFranceinrespectofthe
processingworkreferredtoinArticle1(1)(b),orin
anyofthenewMemberStatesinrespectofanyofthe
categoriesofprocessingwork,theStateconcerned
shall,totheextentthatthereserveSopermits,draw
fromsuchreserveasufficientshareofthequota.
Artide4
1.IfaMemberStatehasused90%ormoreofone
ofitsinitialsharesasfixedinArticle2(1),orofthat
shareminusanyportionreturnedtothereserve
pursuanttoArticle6,itshallforthwith,bynotifying
theCommission drawasecondshare,totheextent
thattherelevantreservesopermits,equalto10%of
itsinitialshare,roundedupasnecessarytothenext
wholenumber.
2.IfaMemberState,afterexhaustingoneofits.
initialshares,hasused90%ormoreofthesecond
sharedrawnbyit,thatMemberStatesshall,inaccor­
dancewiththeconditionslaiddowninparagraph 1,
drawathirdshareequalto5%ofitsinitialshare.
3.IfaMemberState,afterexhaustingitssecond
share,hasused90%ormoreofthethirdsharedrawn
byit,thatMemberStateshall,inaccordancewiththe
samecondition,drawafourthshareequaltothethird.
Thisprocessshallcontinuetoapplyuntilthereserve
isexhausted .
4.Notwithstanding paragraphs 1to3,aMember
Statemaydrawshareslowerthan,thosespecifiedin
thoseparagraphsiftherearegroundsforbelieving »
thatthosespecifiedmaynotbeusedinfull.Any
MemberStateapplyingthisparagraphshallinform
,theCommissionofitsgroundsforsodoing.
Articlei
AdditionalsharesdrawnpursuanttoArticie4shallbe
validuntil31August1977»

-4-
Article6
r:
TheMemberStatesreferredtoinArticle2shall,not
laterthan1June1977returntothereservethe■>'
unusedportionoftheirinitialsharewhich,on15May>
1977,isinexcessof20%oftheinitialvolume.They
mayreturnagreaterportioniftherfearegroundsfor
believingthatitmay>notbeusedinfull.'
MemberStatesshallnotlaterthan1June1977notify
theCommissionofthetotalquantitiesoftheproduct
inquestionre-importeduptoandincluding15May
1977andchargedagainsttheCommunityquotaand
ofanyportionoftheirinitialquotasreturnedtothe'
reserve.
- 'Article7 -''
v1'' '5
TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3
and4andshallassoonastheinformationreachesit,
informeachStateoftheextenttowhichthereserve
hasbeenusedup.
Itshall,notlattsrthan3June1977,informthe
MemberStatesoftheamountsstillinreserve
followinganyreturnofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingthis
reserveisdrawntheamountsodrawndoesnotexceed
thebalanceavailable,andtothisendshallnotifythe
amountofthatbalancetotheMemberStatemaking
thelastdrawing.
Article8
I.MemberStatesshalltakeallappropriate
measurestoensurethatadditionalsharesdrawn
ThisRegulationshallbebindinginits
States.
• ...'A.*:'Vi'
DoneatBrussels,pursuanttoArticle4areopenedinsuchawaythai
re-importation maybechargedwithoutinterruption
againsttheiraccumulatedsharesofthequota.j
»
2.EveryMemberStateshalladministeritsshajra
byasystemofpriorallocation.Itshallensurethatil
personsestablishedinitsterritoryinvolvedintht
processingtraffichavefreeaccesstothesharesalio
catedtoit.
!
3.ThfextenttowhichaMemberStatehasusedU|
itssharesshallbedeterminedonthebasisofthevalu
added,asestablishedwhenuponre-importation th
productsconcernedareenteredwiththecustom
authoritiesforhomeuse.
• !
Article9 -ir
■j
AttherequestoftheCommission,theMemberStall
shallinformitofre-importations chargedagaini
theirshares. J
Article10 ?■h
MemberStatesandtheCommissionshallcoopent
closelytoensurethatthis'Regulationiscompile
with.
•' . "!
•• K
'I:
Article11 fa
ThisRegulationshallenterintoforceon1Septemb
.l976-, ..i
entiretyanddirectlyapplicableinallMember
FortheCouncil j,
ThePresident !i
''■ei
k
i
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