Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 3030/93 on common rules for imports of certain textile products from third countries

(presented by the Commission)

EXPLANATORY MEMORANDUM

Council Regulation (EEC) No 3030/93 of 12 October 1993 on common rules for imports of certain textile products from third countries governs the Communities' textile trade with certain third countries.

On-going experience with the provisions of Regulation (EEC) No 3030/93 suggests that certain improvements could usefully be made for the benefit of the competent authorities, operators and third countries.

In addition, the accession of the People's Republic of China to the WTO makes it necessary to amend Regulation (EEC) No 3030/93 in order to incorporate certain provisions of the Accession Protocol.

In particular, the amendments relate to the following areas:

(a) Regulation (EEC) No 918/83 makes provision for the exemption of goods imported into the Community from customs duties under certain circumstances. Its provisions relate to well-defined special conditions where the usual need to protect the economy is absent, such as in the case of imports of commercial samples or consignments of negligible value. Forming part of the Communities' customs legislation the said Regulation does not exempt imported goods from other trade policy measures such as the application of quantitative limits, the issuing of export and import licenses, surveillance documents and the rules concerning proof of origin which govern the import into the Community of textiles and apparel products covered by Regulation (EEC) No 3030/93.

The same reasons which led to the adoption of Regulation (EEC) No 918/83 apply equally in the field of textile imports for the exemption from requirements concerning quantitative limits, licensing, surveillance and proof of origin. However, Community legislation does not make provision for such exemption.

Particularly with regard to samples for trade promotion purposes, it is necessary to complete Community legislation in the light of the experience that the absence of any regulation on the Community level causes on the one hand a lack of legal security and on the other hand the possibility for circumvention.

For this reason it is appropriate to incorporate by reference the rules of Regulation (EEC) No 918/83 into Regulation (EEC) No 3030/93.

(b) Regulation (EC) No 1541/98 sets up the general rules concerning the proof of origin for textile and clothing products. According to Articles 2 and 3 of that Regulation, the release for free circulation in the Community of textile products listed in groups IA, IB, IIA and IIB of Annex I to Regulation (EEC) No 3030/93 requires a certificate of origin while for products listed in other groups of Annex I, i.e. groups IIIA, IIIB, IV and V, a declaration of origin is sufficient.

Some bilateral agreements, protocols or other arrangements between the Community and supplier countries are going beyond these general provisions by requiring a certificate of origin for groups of products other than IA, IB, IIA and IIB of Annex I to Regulation (EEC) No 3030/93. Some of them also establish forms of certification of origin that are different from those established generally for textile and clothing products by Council Regulation No 1541/98.

It seems desirable, in the interest of administrative simplification, and without prejudice to the application of the rules contained in these bilateral agreements, protocols and other arrangements, to enable the application of the general provisions contained in Regulation (EC) No 1541/98 and therefore to require certificates of origin only for imports of products listed in groups IA, IB, IIA and IIB of Annex I to Regulation (EEC) No 3030/93, while as a general rule imports falling within all other groups of products, i.e. groups IIIA, IIIB, IV and V, should only be accompanied by a declaration of origin. It is also advisable to establish that, in addition to the modalities provided for in bilateral agreements with third countries, the origin of textile and clothing products can be proved in accordance with the requirements established in Regulation (EC) No 1541/98.

(c) The People's Republic of China became Member of the World Trade Organisation on 11 December 2001. As part of the terms and conditions for China's accession to the WTO, Paragraph 242 of the Report of the Working Party, which forms an integral part of the Protocol on the Accession of China to the WTO, sets out a specific safeguard clause applicable until 31 December 2008 concerning imports of textiles and apparel products covered by the ATC of Chinese origin to a WTO Member.

The safeguard provisions of Regulation (EEC) No 3030/93 must be brought into conformity with the above mentioned provision.

The measures set out in the current regulation have received the favourable opinion of the Legal Service, the Directorates General for Enterprise, Taxation & Customs Union, External Relations and the European Anti-Fraud Office.

The Commission is therefore asked to adopt the attached Proposal for a Council Regulation amending Council Regulation (EEC) No 3030/93 of 12 October 1993 on common rules for imports of certain textile products from third countries.

2002/0205 (ACC)

Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 3030/93 on common rules for imports of certain textile products from third countries

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C ..., ..., p. ...

Whereas:

(1) The application of Regulation 3030/93 has raised questions with regard to textile products that are imported under special circumstances, and in particular when imported as commercial samples or in consignments of negligible value.

(2) Council Regulation (EEC) No 918/83 of 28 March 1983 setting up a Community system of reliefs from customs duty [2] makes provision for the exemption from customs duties of goods imported into the Community under certain circumstances, namely where the usual need to protect the economy is absent. As it forms part of the Communities' customs legislation, however, that regulation does not exempt imported goods from trade policy measures other than customs duties, such as the quantitative restrictions, licensing and other administrative requirements provided for under Regulation (EEC) No 3030/93.

[2] OJ L 105, 23.4.1983, p. 1.

(3) It is appropriate to provide for an exemption from these measures under the same circumstances as those set out in Regulation (EEC) No 918/83.

(4) Council Regulation (EC) No 1541/98 [3] lays down the general rules concerning the proof of origin for textile and clothing products falling within Section XI of the Combined Nomenclature, listed in Annex I to Regulation (EEC) No 3030/93. According to Articles 2 and 3 of that Regulation, the release for free circulation in the Community of textile products listed in groups IA, IB, IIA and IIB of Annex I to Regulation (EEC) No 3030/93 requires a certificate of origin while for products listed in other groups of Annex I, i.e. groups IIIA, IIIB, IV and V, a declaration of origin is sufficient.

[3] OJ L 202 , 18.7.1998 , p. 11.

(5) Some bilateral agreements, protocols or other arrangements between the Community and supplier countries go beyond these general provisions, namely by requiring a certificate of origin for groups of products other than IA, IB, IIA and IIB of Annex I to Regulation (EEC) No 3030/93 or by requesting the use of specific forms of certification of origin while Regulation (EC) No 1541/98 only specifies the general conditions with which the certificates used must comply.

(6) It seems desirable, in the interest of administrative simplification, to work towards a single regulatory system for proof of origin in respect of imports of textile and clothing products from all countries. It is advisable, in this regard, to follow the general provisions contained in Regulation (EC) No 1541/98.

(7) It is appropriate, therefore, to establish that, in addition to the specific requirements provided for in bilateral agreements with third countries, the origin of textile and clothing products can be proved in accordance with the general requirements in Regulation (EC) No 1541/98.

(8) The People's Republic of China became a Member of the World Trade Organisation on 11 December 2001.

(9) As part of the terms and conditions for China's accession to the WTO, Paragraph 242 of the Report of the Working Party, which forms an integral part of the Protocol on the Accession of China to the WTO, sets out a specific safeguard clause applicable until 31 December 2008 concerning imports of textiles and apparel products covered by the ATC of Chinese origin to a WTO Member.

(10) The safeguard provisions of Regulation (EEC) No 3030/93 should be brought into conformity with Paragraph 242.

(11) Regulation (EEC) No 3030/93 should therefore be amended accordingly.

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 3030/93 is hereby amended as follows:

1. The following subparagraph is added to Article 1 (4):

"By way of derogation from the provisions of this Regulation, textile products which would qualify for relief from customs duties under Council Regulation (EEC) No 918/83 [4] shall not be subject to quantitative restrictions, licensing or requirements regarding proof of origin when they are imported in the 'special circumstances' set out in that Regulation."

[4] OJ L 105, 23.4.1983, p. 1.

2. Article 1(6) is replaced by the following:

"6. The requirements regarding proof of origin of the products referred to in paragraph 1 shall be as laid down in Annex III and in the relevant Community legislation in force. However, proof of origin presented in accordance with the provisions of Regulation (EC) 1541/98 may also be accepted in place of the proof of origin required by bilateral agreements, protocols or other arrangements which lay down more stringent requirements.

The procedures for verification of the origin of those products shall be as laid down in Annex IV and in the relevant Community legislation in force."

3. The following Article 10a is inserted:

"Article 10a Special safeguard provisions for China

1. Should imports into the Community of textiles and apparel products originating in China and covered by the Agreement on Textiles and Clothing ,threaten to impede, owing to market disruption, the orderly development of trade in those products, such imports may, during the period ending on 31 December 2008, be made subject to specific safeguard measures under the following conditions:

(a) The Commission - acting at the request of a Member State or on its own initiative - shall open consultations with China with a view to easing or avoiding such market disruption. The request for consultation shall provide China with a detailed factual statement of reasons and justifications for the request for consultations, with current data showing the existence or threat of market disruption and the role of products of Chinese origin in that disruption. Consultations shall be commenced within 30 days of receipt of the request, the consultation period lasting 90 days from such receipt, unless extended by mutual agreement. Upon receipt of the request for consultations China shall - during the period of consultation - hold its shipments to the Community of textile or textile products in the category or categories subject to the consultations, at a level no greater then 7.5 per cent (6 per cent for wool product categories) above the amount entered during the first 12 months of the most recent 14 months preceding the month in which the request for consultations was made.

(b) The Commission may, if no mutually satisfactory solution is reached during the 90-day consultation period, establish a quantitative limit for the category or categories subject to the consultations. The quantitative limit shall be set up on the basis of the level at which China held its shipments upon receipt of the Community's request for consultation. The term of this quantitative limit shall be effective for a period ending on 31 December of the year in which consultations were requested, or, where three months or less remained in the year at the time of the request for consultations, for a period ending 12 months after the request for consultations . Consultations with China shall be continued during the term of the quantitative limit set up under this provision.

(c) No action taken under this paragraph shall remain in effect beyond one year without reapplication, unless otherwise agreed between the Community and China. Measures shall not be applied to the same product at the same time under this paragraph and the provisions of Section 16 of the Protocol on the Accession of China to the WTO. Measures taken pursuant point (b) shall be the subject of a Commission communication published without delay in the Official Journal of the European Communities.

2. The quantitative limits established pursuant to this Article 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.

3. The measures provided for in this Article shall be adopted and implemented in accordance with the procedure laid down in Article 17."

Article 2

This Regulation shall enter into force on the [twentieth] day following that of its publication in the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President