COfMISS TON OF THE EUROPEAN COMMUNITIES 
C0M(92) 198 final 
Brussels, 7 May 1992 
Proposal for a 
COUNCIL REGULATION (EEC) 
opening Community quotas for imports 
of certain kinds of footwear originating in China 
(presented by the Commission) 
EXPiANATORY MEMO 
1. This proposal is made under the procedure laid down in Artfcfe 9(4) of 
Regulation (EEC) No 3420/83, which requires the Commission to refer the 
matter to the Council in the event of disagreement with a Member state 
regarding changes to be made to the import arrangements for products 
from state-trading countries. 
2. Pursuant to Article 10 of that Regulation, on 23 March 1992 France 
informed the other Member states and the Commission of its decision to 
introduce safeguard measures in respect of footwear imports from China. 
The French measures provided for the opening of three quotas, breaking 
down as foI 1ows: 
Pairs 
ex 64 03 footwear with uppers of leather 3\146 000 
ex 64 05 or composition leather 
- ex 64 04 sports footwear with outer soles 23 310 000 
ex 64 05 of leather or composition leather*. 
other footwear with uppers of 
textile materials 
- ex 64 03 slippers and other indoor footwear 24 730 000 
ex 64 04 
ex 64 05 
These quotas were adopted for a twelve-month period, beginning on 
23 March 1992. 
3. In view, in particular, of their implications for the completion of the 
single market, the French measures were discussed within the Advisory 
Committee for the East European Countries as provided for by Article 8 
of Regulation (EEC) No 3420/83. The upshot was that the Commission and 
the great majority of Member States took the view that, on the eve of 
the single market, these national measures were inappropriate., but that 
the national quantitative restrictions already applied to the products 
by other Member States made necessary a Council Regulation opening 
Community quotas for the products in question. 
4. This view is borne out by the Community industry's present difficulties. 
Since it is having to adjust to both completion of the single market and 
stiffer competition from abroad, it is important that it should not be 
destabilized by an excessive surge in imports. 
For footwear in general, the overall trend in the Community in the 
period 1985-90 was adverse: the Community's market share fell by 20%, 
while apparent consumption rose by 19%. Most of the increase was 
accounted for by imports from outside the Community, which rose by 85% 
in that period. China, the leading exporter, has more than doubled its 
exports to the Community. At the same time Community exports are 
effectively barred from entering China. 
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While, last year, total imports from outside the Community were 35% up 
on 1990, those from China increased by 97%, far more than the average. 
Growth was even more rapid in some of the most sensitive areas for 
Community producers, such as leather town shoes (up 140% on 1990) or 
leather sports shoes (up 292%). 
In 1990, non-Community imports took 34% of the market: last year's 
substantial increase and the relative stability of consumption suggests 
that this market share will increase appreciably. 
Annexed is a table showing trends in imports into the Community of the 
products in question. 
The purpose of this proposal is the establishment of Community quotas. 
The Commission believes that the quotas should be based on the average 
level of imports into the Community of the products in question for the 
last three years for which statistics are available and that codes 
should be used for the goods which will enable Chinese export figures to 
be compared with Community figures on imports. 
The six-digit codes of the Harmonized System (HS) nomenclature would 
generally seem to be the most suitable. The quotas could then be broken 
down as follows: 
CN CODES Annual value (ECU '000) 
6402 19 10 900 
6402 99 42 300 
6403 19 15 600 
6403 51 800 
6403 59 8 200 
6403 91 5 500 
6403 99 40 600 
6404 11 53 300 
6404 19 10 23 500 
The quotas would be opened from the date of this Regulation's entry into 
force until 31 December. They would be calculated pro rata, on the 
basis of the annual values, for the duration of this Regulation. 
This measure could make it difficult for some Community importers to 
match past turnover, mainly because imports of the products concerned 
are not restricted in some Member States. 
ANNEX 
IMPORTS BY EUR-12 FROM CHINA IN 'OOO ECU 
(1) (2) (3) (4) (5) (6) 
NC CODES 
640219 
640299 
640319 
640351 
640359 
640391 
640399 
640411 
64041910 
Total under quota 1989 
3 969 
17 954 
2 906 
656 
8 655 
764 
17 927 
36 179 
15 723 
104 733 1990 
7 518 
32 875 
8 829 
314 
5 875 
2 876 
30 235 
49 601 
20 428 
158 551 1991 
20 820 
76 115 
34 631 
1 428 
10 186 
12 670 
72 221 
72 991 
33 978 
335 040 Average 
1989-1991 
QUOTAS 
10 769 
42 315 
15 455 
799 
8 239 
5 437 
40 128 
52 924 
23 376 
199 442 1991/1989 
% change 
+ 424.6 
+ 323.9 
+1091.7 
+ 117.7 
+ 17.7 
+1558.4 
+ 302.9 
+ 101.7 
+ 116.1 
+ 219.9 
Source: Eurostat, Comext 
h 
proposal for a 
COUNCIL REGULATION (EEC) 
opening Community quotas for imports 
of certain kinds of footwear originating in China 
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 Council Regulation (EEC) No 3420/83 of 14 November 1983 on import 
arrangements for products originating in state-trading countries, not 
-.liberalized at Community level,1 as last amended by Regulation (EEC) 
No ... of ...,2 applies to imports of products originating in China; 
Whereas on 23 March 1992 France, pursuant to Article 10 of Regulation (EEC) 
No 3420/83, informed the other Member States and the Commission of its 
decision to introduce safeguard measures in respect of footwear imported 
from China; whereas the French measures provided for the opening of three 
separate quotas for different types of footwear for a twelve-month period 
starting on 23 March 1992; 
Whereas imports of footwear originating in China have increased very 
considerably in recent years throughout the Community; whereas this 
unrelieved pressure threatens serious injury to Community producers; 
Whereas, in accordance with Council Decision .../..., other Member States 
have opened quotas for imports of products originating in the state-trading 
countries for the year 1992; whereas part of these quotas concerns imports 
of footwear originating in China; 
1 OJ No L 346, 8.12.1983, p.6 
2 OJ No L p. . . 
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Whereas the application of national measures threatens the proper working 
of the internal market, and on the other hand the national quantitative 
restrictions applied to these products in other Member States make 
necessary a Council Regulation opening Community quotas for the products in 
quest ion; 
Whereas in accordance with Regulation (EEC) No 2616/85 of 16 September 1985 
on the conclusion of a trade and economic cooperation Agreement between the 
European Economic Community and the People's Republic of China, and in 
particular Article 6(1) thereof,1 consultations were held and the Chinese 
authorities informed of the French measures; whereas, in view of the injury 
caused to the Community industry by the considerable increase in China's 
exports of the products in question, the Chinese authorities were informed 
that Community quotas were planned; 
Whereas these Community quotas should be based on the average level of 
imports into the Community of the products in question for the last three 
years for which statistics are available and codes should be used for the 
goods to enable Chinese export figures to be compared with figures on 
Community imports; whereas the six-digit codes of the Harmonized System 
(HS) nomenclature would generally seem to be the most suitable; 
Whereas Council Regulation (EEC) No 1023/70 of 25 May 1970 establishing a 
common procedure for administering quantitative quotas,2 as last amended 
by the Act of Accession of Spain and Portugal, laid down rules on Community 
quotas; whereas administrative and technical factors make it necessary to 
divide the quota between Member States, and the criteria by which this is 
to be done must be established, 
1 0J No L 250, 19.9.1985, p. 2 
2 0J No L 124, 8.6.1970, p.1. 
HAS ADOPTED THIS REGULATION: 
Art icle 1 
From the date of this Regulation's entry into force until 31 December 1992, 
the following Community quotas shall apply to the footwear of Chinese 
origin mentioned below: 
CN CODES Annual value (ECU '000) 
6402 19 10 900 
6402 99 42 300 
6403 19 15 600 
6403 51 800 
6403 59 8 200 
6403 91 5 500 
6403 99 40 600 
6404 11 53 300 
6404 19 10 23 500 
The value of the quotas shall be calculated pro rata, on the basis of the 
annual value, for the duration of this Regulation. 
Art icle 2 
1. From the date of this Regulation's entry into force until 
31 December 1992, imports of footwear falling within the CN codes listed 
in Article 1 and originating in China shall be subject to presentation 
of an import authorization. 
2. As soon as the measures provided for in Article 3 have been adopted, an 
import authorization shall be issued within fifteen working days of an 
application being lodged, upon presentation by the applicant of a 
purchase contract for all the amounts requested. 
The authorization shall be valid for two months. 
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Art icle 3 
The quotas established in Article 1 shall be apportioned on the basis of 
traditional trade flows and estimated needs, in accordance with the 
procedure laid down in Article 11 of Regulation (EEC) No 1023/70. 
Art icle 4 
The national quantitative restrictions and quotas for which Articles 2, 3, 
9 and 10 of Regulation (EEC) No 3420/83 provide shall be replaced, in so 
far as they concern products falling within Chapter 64 of the Combined 
Nomenclature, by the measures laid down in this Regulation. 
Art icle 5 
This Regulation shall enter into force on the third day following its 
publication in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in 
a I I Member States. 
Done at Brussels, ... For the Council 
The President 
ISSN 0254-1475 
COM(92) 198 final 
DOCUMENTS 
EN 03 02 
Catalogue number: CB-CO-92-207-EN-C 
ISBN 92-77-43979-3 
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