ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)619
Vol.1978/0240

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)619 final
Brussels,23November 1978
Proposal fora
COUNCIL REGULATION (EEC)
ontheopening,allocation andadministration ofa
Communitytariffquotaforprocessing workinrespect
ofcertaintextileproducts underCommunity outward
processing arrangements
(submitted totheCouncilbytheCommission )
C0M(78)619final

EXPLANATORY MEMORANDUM
(1)
1.InanArrangement concluded withtheSwissFederation on1August1969,
theEuropean Economic Community undertook toopenanannualduty-free
Communitytariffquotaof1870000unitsofaccountofaddedvaluein
respectofvariouskindsofprocessing workforcertaintextileproducts
undertheoutwardprocessing trafficarrangements betweentheCommunity
andSwitzerland .
Underthetermsofthememorandum agreedatthetimetheArrangement was
made,thisannualtariffquotaisdividedintothreecategories ofpro­
cessing,basedonthequantities recorded undertheformerbilateral
agreements (concluded withSwitzerland by,France,Germany andItaly),,
buttakingintoaccount'thepossibilities ofextendingittotheBenelux
countries .
Onthebasisofthatdivision thetotalquotaamountof1870000units
ofaccountisallocated following certain amendments ,asfollows :
a)1520000unitsofaccountforprocessing workonwovenfabricsfalling
withinChapters 50to57oftheCommonCustomstariff;
b)123000unitsofaccountfortwisting orthrowing,re-twisting ,cabling,
texturizing (whetherornot.combined withotherprocessing work)ofyarns
fallingwithinChapters 50to57oftheCommonCustomsTariff;
c)227000unitsofaccountforprocessing workonarticlesfallingwithin
headings N°s58.04,58.05,58.07,58.08,58.09and60.01oftheCommon
CustomsTariff,subjecttothesettingupofaCommunity reserveof
230000u.a.tobedrawnfromtheabovequotas,i.e."160000u.a.,
Φ
13000u.a.and57000u.a.respectively .
2.ThequestionwhetherthisArrangement shouldcontinue beyond31August1977
hasbeenexamined onseveraloccasions,notablyatthemeetingofthe
EEC-Swiss JointCommittee heldon3November 1976,inregardtothequota
amountswhichshouldbeadoptedthenceforth ,accountbeingtakenofthe
factthatthetransitional periodintheFreeTradeAgreement concluded
(1)0JN°L240,24'September 1969.

-2-
y
withSwitzerland,underwhichtextileproductsqualifyingforSwissorigin
statusbyreasonoftheprocessingworktheyhaveundergonecanenter
duty-free,expireson1July1977.
Itwasdecidedbycommonaccordthatuntilsuchtimeastheeconomic
datarequiredforcalculatingtheseamountsareavailablethecurrently
openquotaamountsshouldsurely,andsimplyberenewedforatransitional
period,duringwhichtimethecontractingpartieswillendeavourtoobtain
therequireddata.
.Thedatacurrentlyavailabledonotyetpermitaroughestimatetobe
formedofthesizeofthereductiontobemadeinthequotaamounts.
Itwasthereforeagreedthatthetariffquotaopenedfortheperiod
upto31August1978berenewedforafurtheryear. -
3.Totakeaccountoftheapplication from1January1979onwardsofthe
EuropeanunitofaccounttoActsadoptedbytheinstitutions ofthe
EuropeanCommunities,theCouncil,whenadoptingRegulation (EEC)N°1926/
(1)78of25July1978,decidedtodividethequotaperiodintotwoparts,
onecoveringtheperiod1Septemberto31December1978andtheotherthe
period1Januaryto31August1979.
TheannexedproposalforaRegulationthereforeservesnootherpurpose
thantoopen,inEuropeanunitsofaccount,thetariffquotaprovided
/
forintheArrangementinquestionfortheperiodfrom1Januaryto31
■August1979andtoallocateitamongtheMemberStatesalongthelines
setoutintheMemorandumcoveringtheArrangement,accountbeingtaken
ofthechangesoccuringmeanwhileandoftheneedtoensurethatthe
newMemberStatesshare.intheallocationofthistariffquota.
(1)OJ'N0L225,16.8.1978,p.11.,

ANNEX
COUNCILREGULATION (EEC)
ontheopening,allocationandadministration ofaCommunitytariffquotaforprocessing
workinrespectofcertaintextileproductsunderCommunityoutwardprocessingarrange­
ments
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle113.
thereof,
HavingregardtotheproposalfromtheCommission,
Whereason1August1969theCommunityconcluded '
anarrangementwithSwitzerlandonprocessingtraffic .
in"textiles;whereasunderthatarrangementtheCom­
munityundertooktoopenon1Septemberofeveryyear
anannualduty-freeCommunitytariffquotafor "
processedgoodsof1870000unitsofaccountofadded
value,apportionedasfollows:
(a)1650000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff,
(b)143000unitsofaccountforthetwistingorthrow­
ing,cablingandtexturizing (whetherornotcom­
binedwithotherprocessingworks)ofyarnsfalling
withinChapters50to57oftheCommonCustoms
Tariff, ^
(c)77000unitsofaccountforprocessingworkon■
productsfallingwithinheadinggNos58.04,58.05,. /
58.07,58.08,58.09and60.01oftheCommon :
CustomsTariff;• \
Whereas,inorderthatthedivisionofthewholequota
intothethreecategoriesreferredtoaboveshallcorre­
spondmoreexactlywiththeactualmovementoftrade
duringthereferenceyearorduringpreviousquota
periodsaswellaswiththeforeseeablemovementof
tradeduringfuturequotaperiods,ithasbeendecidedto
adjustthesaidallocationbetweenthethreecategories
bygivingthem1520000.123000and227000units
ofaccountrespectively;

-2-
(1)Whereas,byitsRegulation (EEC)N°1926/78of25July1978the
Councilhasalreadyopenedthetariffquotaconcernedfortheperiod
1Septemberto31December1978tocoverfour-twelfths ofthearnnual
amounts;whereastheremainderofthequotainquestionshouldtherefore
beopenedfortheperiod1Januaryto31August1979,inaccordancewith
thedetailedruleslaiddowninthearrangementreferredtoaboveand
amendmentsthereto,andinaccordancewiththeprovisionsofRegulation
'ontheapplicationoftheEuropeanunitofaccounttoActs
1
adoptedbytheinstitutions oftheEuropeanCommunities,andinparticu­
larArticle14thereof;whereasonthisbasisthetotalquotavolume
andtheamountsallocatedtoeachcategoryare1"2^6666,1013333,
82000and151333Europeanunitsofaccountrespectively ;
WhereastheCommunity'scommitmentisannualwhilere-importsofproducts
afterprocessingareseasonalandprovisionshouldthereforebemadefor
theunusedpartsofthequotaopenedfortheperiod1^Septemberto
<- •
31December1978tobecarriedoverwithaviewtotheirpossibleuse
duringtheperiodforwhichthisRegulationisapplicable
Whereasprovisionshouldbemadeinparticularto
ensureequalandcontinuousaccessforthoseconcerned
vwiththisquotaandconsistentapplicationoftherateof
.dutyprescribedforthesaidquotauntilthequotais
exhausted,toallgoodsreimportedintoanyofthe
MemberStatesandwhichhavereceivedoneorotherof,
thetreatmentslistedabove;whereas,inthelightof
theseprinciples,arrangementsfortheutilizationofthe
« iquotabasedonanallocationamongtheMemberStates
wouldseemtobeconsistentwiththeCommunity
characterofthesaidquota;whereasitthereforeseems
appropriatetomaketheallocationonthebasisofthe
amountofthetrafficunderthepreviousbilateral
agreements,butwithoutprecludingparticipationby
IMemberStatesnotpreviouslyinvolvedinsuchtraffic,
amongwhichthenewMemberStatesareincluded;
whereas,tosafeguardtheCommunitycharacterofthe•
quota,provisionshouldbemadetomeetrequirements
.whichmayariseinthoseMemberStatesinthefutureby
-,'permittingthemtodrawadequateamountsfromthe/
■Communityreserve; • ;
(1)0JNoL\

–3–
Whereastotakeaccountoffuturetrendsinthetraffic
inquestioninthevariousMemberStates,thetotal
quotavolumeof1246666Europeanunitsofaccount
dividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesandthesecondheldasa
reservetocoverthesubsequentrequirementsof
MemberStateswhenoneoftheirinitialshareshasbeen '
exhaustedandalso,requirementswhichmayarisein
certainMemberStatesinrespectofprocessingworkfor
whichnoinitialshareofthequotawasallocated;
whereas,inordertogivethepartiesconcernedineach
MemberStatesomedegreeofcertainty,itwouldseem
appropriatetofixthefirsttrancheoftheCommunity
quotaatarelativelyhighlevel,namely1no-*-z-z-zp^..,account;where*thetotalCommuLv,icr»eUmtS°f
153333Europeanunitsofaccountshallconsistofamountsdr
°mtheallocationsinrespectofeachcategory,"thatis
-106666,8667and38000Europeanunits
ofaccountrespectively :
I
WhereastheMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruptionof '[.-
suppliesonthisaccountitshouldbeprovidedthatany
MemberStatewhichhasalmostuseduponeofitsin- -
itialsharesshoulddrawanadditionalsharefromthe
reserve;whereaseachtimeitsadditionalshareisalmost
exhaustedaMemberStateshoulddrawafurthershare,
andsoon,asmanytimesasthereserveallows;whereas
theinitialandadditionalsharesshouldbevaliduntilthe/
endofthequotaperiod;whereasthisformofadminis­
trationrequiresclosecollaboration betweenthe
MemberStatesandtheCommission,andtheCom­
missionmustbeinapositiontokeepaccountofthe '
extenttowhichthcquotahasbeenusedupandtoin­
formtheMemberStatesaccordingly;
Whereasifatagivendateduringthequotaperioda
considerablequantityofaMemberState'sinitialshare
remainsunuseditisessential,topreventapartofthe
quotafromremainingunusedinoneMemberState
whileitcouldbeusedinothers,thattheStateinquestion
returnasignificantproportionthereoftothereserve;
Whereas,sincetheKingdomofBelgium,theKingdom '
oftheNetherlandsandtheGrandDuchyofLuxem- ■>
bourgareunitedinandjointlyrepresentedbythc
BénéluxEconomieUnion,anytransactioninconnection
withtheadministrationofthesharesallocatedtothat
economicunionmaybecarriedoutbyanyoneofits
members, •

1HASADOPTEDTHISREGULATION :
Article1
1.From1Januaryuntil31August1979,aCom­
munitytariffquotaof1246666Europeanunitsofaccount(EUA)ofvalue
addedshallbeopenedintheEuropeanEconomic .
Communityinrespectofgoodsresultingfromprocess­
ingworkasprovidedforinthearrangementwithSwit- ■',
zerlandonprocessingtrafficintextiles.Suchquotashall
beapportionedasfollows:
(a)1013333EUAforprocessingworkons"'
wovenfabricsfallingwithinChapters50to57of'
theCommonCustomsTariff;
(b)82000EUAfortwistingofthrowing,
cablingandtexturizing(whetherornotcombined
withotherprocessingwork)ofyarnsfallingwithin
Chapters50to57oftheCommonCustomsTariff;
(c).151333EUAforprocessingworkon
articlesfallingwithinthefollowingheadingsofthe
CommonCustomsTariff: - ■
58.04Wovenpilefabricsandchenillefabrics(other >
thanterrytowellingorsimilarterryfabrics'■
ofcottonfallingwithinheadingNo55.08
andfabricsfallingwithinheadingNo58.05), .
58.05Narrowwovenfabrics,andnarrowfabrics'
(bolduc)consistingofwarpwithoutweft
assembledbymeansofanadhesive,other"
thangoodsfallingwithinheadingNo58.06,*
58.07Chenilleyarn(includingflockchenilleyarn)
gimpedyarn(otherthanmetallizedyarnof>
eaingNo52.01andgimpedhorsehair
,yarn);braidsandornamentaltrimmingsin
thepiece;tassels,pomponsandthelike,
58.08Tulleandothernetfabrics(butnotincluding
woven,knittedorcrochetedfabrics),plain,.
58.09Tulleandothernetfabrics(butnotincluding
woven,knittedorcrochetedfabrics),figured;
handormechanicallymadelace,inthepiece,'
mstripsorinmotifs,
60.01Knittedorcrochetedfabric,notelasticor'
n1hh#»rttaA

-5-
2.ForthepurposesofthisRegulation:
(a)*proccssingwork*means:
–forthepurposesofparagraph 1(a)and(c):
bleaching,dyeing,printing,flocking,impregnat­
ing,dressingandotherworkwhichchangesthe
appearanceorqualityofthegoods,without
howeverchangingtheirnature,
–forthepurposesofparagraph1(b):twistingor
throwing,cablingandtexturizing,whetheror
notcombinedwithreeling,dyeingorother
workwhichchangestheappearance,qualityor
finishofthegoods,withouthoweverchanging
theirnature;
(b)'valueadded'means:thedifferencebetweenthe
valueforcustomspurposesasdefinedinRegu-'
lation(EEC)No803/68(')atthetimeofre-im-•
portationandthevalueforcustomspurposesasit•
wouldbeiftheproductswerere-importedinthe
stateinwhichtheywereexported.
3.Eachportionaslaiddowninparagraph1shallbe
dividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesinaccordancewith
Article2(1)andthesecondbeingusedtoconstitutea
reservewhichshallbecommontothethreecategories
ofprocessing.
4.Withinthistariffquota,theCommonCustoms
Tariffdutiesshallbetotallysuspended.
5.Re-importsofproductsresultingfromthispro­
cessingworkmaynotbechargedtothetariffquotaif
theyirealreadyfreeofcustomsdutiesunderother
preferentialtariffarrangements .
Article2
1.Thefirsttrancheofeachportionofthequotaaslaid
downinArticle1(1)shallbeallocatedassetoutbelow
amongtheMemberStateslistedintheabovearrange­
ment;theshares,'subjecttoArticle6,shallbevalid
from1Januaryto31August1979.
(a)Germany:
120.000EUA,apportioned asfollows
566666EURforprocessingwork
onwovenfabricsfallingwithinChapters50to
•57oftheCommonCustomsTariff,
66667EUAfortwistingorthrow­ing,cablingandtexturizing(whetherornot
combinedwithotherprocessingwork)ofyarns
fallingwithinChapters50to57oftheCommon
CustomsTariff,
86667EUAforprocessingworkon
productsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;

(b)France:
346666EUAapportioned asfollows :
–333333-EUAforprocessing work
onfabricsfallingwithinChapters50to57of
,theCommon CustomsTariff,
–13333EUAforprocessing workon
productsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01ofthe
Common CustomsTariff;
(c)Italy:
.13334EUAi.e.ha.lffortwisting or
throwing ,cablingandtexturizing (whetherornot
combinedwithotherprocessing work)ofyarnsfal-.
lingwithinChapters 50to57oftheCommon
CustomsTariff,andhalfforprocessing workon..
productsfallingwithinheadingNos58.04,58.05,,.
158.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
(d)'Bénélux : 1' .
13334EUAforprocessing workon
yarnsandwovertfabricsfallingwithinChapters
50to57orforproductsfallingwithinheadingsN°S
58.04,58.05,58.07,58.08,58.09and60.01ofthe
Common CustomsTariff. ■>
2.Thesecondtranchewhichamountsto.153333EUA
shallconstitute aCommunity reservewhich
maybeusedforthethreecategoriesofprocessing ..

-7-
Totheseamountsshallbeadded,withoutprejudicetoArticle6,any
portionsofthestaresallocatedtoMemberStatesorofthereserve
setupunderArticle2ofRegulation(EEC)N°1926/78remainingunused
on31December1978.
MemberStatesshallnotifytheCommission,notlaterthan1February
1979,ofanyportionsofthesharesallocatedtothemundertheabove
Regulationremainingunusedon31December1978.
• *
<•
Article3 i'....
Incaseofneed,eitherinFranceinrespectofthepro­
cessingworkreferredtoinArticle1(1)(b),orinanyof
thenewMemberStatesinrespectofany,ofthe
categoriesofprocessingwork,theStateconcernedshall,
totheextentthatthereservesopermits,drawfrom
suchreserveanappropriateshareofthe
quota.
Article4
1.IfaMemberStatehasused90%ormoreofoneof
itsinitialsharesasfixedinArticle2(1),orofthatshare
•minusanyportionreturnedtothereservepursuantto
Article6,itshallforthwith,bynotifyingtheCom­
mission,drawasecondshare,totheextentthatthe
.relevantreservesopermits,equalto10%ofitsinitial y
^share,roundedupasnecessarytothenextwhole•
number.
2.IfaMemberState,afterexhaustingoneofitsinitial
shares,hasused90%ormoreofthesecondshare
drawn,byit,thatMemberStatesshall,inaccordance
withtheconditionslaiddowninparagraph 1,drawa
thirdshareequalto5%ofitsinitialshare.
3.IfaMemberState,afterexhaustingitssecondshare,
hasused90%ormoreofthethirdsharedrawnbyit,
thatMemberStateshall,inaccordancewiththesame
condition,drawafourthshareequaltothethird.
Thisprocessshallcontinuetoapplyuntilthereserveis
exhausted.
4.Notwithstanding paragraphs1to3,aMemberState
maydrawshareslowerthanthosespecifiedinthose
paragraphsiftherearegroundsforbelievingthatthose
specifiedmaynotbeusedinfull.AnyMemberState
applyingthisparagraphshallinfqrmtheCommissionof
itsgroundsforsodoing.

-a-
•ArticleS
AdditionalsharesdrawnpursuanttoArticle4shallbe
validuntil31August1979.
Article6
TheMemberStatesreferredtoinArticle2aiall,not
laterthan1July1979,returntothereservethe
unusedportionoftheirinitialsharewhich,on
15June1979,,isinexcessof20%oftheinitial-
volume.Theymayreturnagreaterportionifthereare
groundsforbelievingthatitmaynotbeusedinfull.
MemberStatesshall,notlaterthan1July_1979_.J
notifytheCommissionofthetotalquantitiesof'the
productinquestionre-imported,uptoandincluding
15June1979\andchargedagainsttheCom­
munityquotaandofanyportionoftheirinitialquotas
returnedtothereserve.
Article7
TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3
and4andshall,assoonastheinformationreachesit,
informeachStateoftheextenttowhichthereservehas
beenusedup. -
Itshall,notlaterthan5July1979,.informthe
MemberStatesoftheamountsstillinreservefollowing ^
anyreturnofsharespursuanttoArticle6. ■'
Itshallensurethatwhenanamountexhaustingthis
reserveisdrawntheamountsodrawndoesnotexceed
thebalanceavailable,andtothisendshallnotifythe
amountofthatbalancetotheMemberStatemakingthe
lastdrawing.•'
•s , - /•••
■ Article8.
1.MemberStatesshalltakeallappropriatemeasures
toensurethatadditionalsharesdrawnpursuantto
,,Article4areopenedinsuchawaythatre-importation
maybechargedwithoutinterruptioitagainsttheir
accumulatedsharesofthequota. >
2.EveryMemberStateshallensurethatallpersons
establishedinitsterritoryinvolvedintheprocessing
traffichavefreeaccesstothesharesallocatedtoit.
3.TheextenttowhichaMemberStatehasusedupits
sharesshallbedeterminedonthebasisofthevalue
added,asestablishedwhenuponre-importation the
productsconcernedareenteredwiththecustoms
authoritiesforhomeuse.

-9-
Article9
AttherequestoftheCommission,theMemberStates
shallinformitofre-importations chargedagainsttheir.
shares.
Article10
MemberStatesandtheCommissionshallcooperate
closelytoensurethatthisRegulationiscompliedwith.
ArticleÎÎ
Thi«Regulationshallenterintoforceon1January
,1979.
ThisRegulationshallbebindinginitsentiretyanddirectly
applicableinallMemberStates.
DoneatBrussels,
FortheCouncil
ThePresident

FINANCIAL MEMORANDUM Date
1.■Numberofrelevant budgetheading :Chap.12Art.120
2.Legalbasis:Art.113
3.Titleoftariffmeasure :
ProposalforaCouncilregulation ontheopening,allocation and
administration ofaCommunitytariffquotaforprocessing workin
respectofcertaintextileproducts underCommunity outwardprocessing
arrangements .' ■
4.Aimofmeasure :TogiveeffecttoCommunity undertakings .
5.Methodofcalcultation :
-CCTheading N° :various
-Volumeofquota(s):1246666EUA
.■ .\ .-Dutiesapplicable :0%
-CCTduties :various (averageduty10%)
6.Lossofrevenue :
-intheeventoffulluseofquota:10%of1246666EUA=124667EUA
-onbasisofforesee-able use :10%of200000EUA='20000EUA
y(lossofrevenuealreadyincludedinthefinancial memorandum of
.Document C0M(78)269 of19June1978).