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COM(76)526
Vol.1976/0161

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COMMISSION OFTHEEUROPEAN COMMUNITIES
\ < COM(76)526final.
Brussels.12October1976.
i\' '1.■
Γ ·■' < .\
\
ι
PROPOSALPORACOUNCILREGULATION
/l; »
concerningimportarrangements forcertaintextileproducts
originating -inMalaysia .-
.("
(submitted ,totheCouncil "bytheCommission)
.Λ.
.
C0MC76)526final.

1.By&Decision Oj.loJune 1975 *"theCouncil authorised "theCorjaission toopen
negotiations with Malaysia * for -thoconclusion ofanagreement on
trade intextile products .
2.Inaccordance wiuh >,iiisCouncil Decision ana .inconsultation witix "tha
Article 113Committee ,theCommission held ,negotiations with MaLaysi a
from 16to20October 1976 .
Following these negotiations ,adraft Agreement wasdrawn ut>andinitialled by
theHeads ofDelegation on23October 1975 .TheCommission hassubmitted to
theCouncil arecommendation foraregulation concluding this Agreement
3.Thedraft Agreement provides inparticular forvoluntary restraint to00
applied bytheMalaysian authorities ,within agreed quantitative limits ,to
exports ofcertain textile products totheCommunity ,andsupervision bythe
Community toensure that these limits areobserved .
Inorder toenable this supervision tobocarried out ,this proposal fora
regulation envisages theadoption ofarrangements making theimportation into
thoCommunity oftheproducts inquestion subject toquantitative limits .
4.Theinitialled Agreement naturally concerns only products originating inand
coming from Malaysia .TheMalaysian authorities therefore apply voluntary
restraint only inrespect ofdirect exports totheCommunity .Thus products
falling within thecategories covered bytheAgreement andoriginating in
Malaysia maybefreely exported totheCommunity viaother third countries .
TheCommunity canoppose indirect exports ofthis kind ,since theAgreement
onlyrequires ittoadmit products originating inandcoming from ''"Jlaysia
which areaccompanied byexport licences complying with theprovisions ofthe
Agreement .Since indirect imports ofthis kind runcounter totheobjective
oftheagreement ,the import arrangements adopted bytheCommunity must bo
applied toproducts originating inMalaysia irrcspective ofwhere they come
from .
5.Itisproposed that theCommunity 'squantitative limits beadministered
according totheprocedure foradministering Community quantitative quotas
established byRegulation (ESC)No1023/70,inparticular Article 11thereof .
Under this procedure ,theCouncil must fixthecriteria according towhich the
quantitative limits will beallocated .
These allocation criteria arethose which have guided thepreliminary work carried
outwithin theCouncil with aview totheadoption ofthedecisions relating ,
totheopening ofbilateral negotiations und^r thoArrangement regardingInternational Trade inTextiles .Allocation will therefore "bobased onthose
criteria andinparticular ontheresults ofthework already undertaken .
ihieallocation will bethesubject ofaseparate regulation to "beadopted by
theCommission ,likewise onthebasis ofRegulation IIo1023/70*
Document S/304/1/76 (COMER 139,Rev.1)

6.TheAgreonentnegotiatedprovidesfortheautomaticandimmediate
acceptance bytheCommunityauthoritieaofimportssubjecttoaceiling
onproduction 131/theimporterofanesrportliconcoircauodby"tho
Malaysianauthorities ,certifyingthatthequantitiesinquestionhave
beenchargedagainsttheagreedceiling.Asregardsadministration bythe
Community,thisstipulation meansthattheMemberStates'authoritiesare
obligedtograntimportlicences,automatically andimmediately ,on
productionofarequestaccompanied byanexportlicence,providedthat
theagreedlimitsareobserved.
7.InordertoenabletheobjectivesoftheAgreementtobefulfilledas
soonaspossible,theCommissionproposesthatthoCounciladoptthe
regulationthedraftofwhichisannexedattheearliestpossibledate.

PROPOSAL FORACOUNCIL REGULA.ION
concerning import arrangements forcertain tequila products
originating inMalaysia
THECOUNCIL OFTIESEUROPE WMJUiriTIISS ,
Having regard totheTreaty establishing theEuropean Economic Community ,and
inparticular Article 113thereof ,
Having regard totheproposal from theCommission ,
Whereas ,inthecontext oftheArrangement regarding International Trade in
Textiles ,theEuropean Economic Community andMalaysia
negotiated anAgreement ontrade intextile products ;whereas theCommission
hassubmitted totheCouncil arecommendation foraRegulation concluding i»hat
Agreement ;
Whereas ,forthepurpose ofapplying theAgreement which hasbeen negotiated ,
import arrangements forthoproducts inquestion should beadopted ;
Whereas theAgreement requires theCommunity toadmit imports ofcertain textile
products within quantitative limits ,theobservance ofwhich will bo
guaranteed byanagreed system ofbilateral checking ;
Whereas ,appropriate provisions applicable intheCommunity should therefore bo
adopted fortheduration oftheAgreement ,including thecriteria forthe
allocation ofthequantitative limits agreed with Malaysia -.
Whereas ,because oftheconsiderable disparities between theconditions
currently governing imports oftheproducts concerned into theMember States
andbecause oftheparticular sensitivity oftheCommunity 'stextile industry ,
standardization ofthese import conditions canonly beachieved progressively ;
whereas thecriterion to'beadopted fortheallocation oftheCommunity
quantitative limits should therefore bethegradual adjustment ofthequantities
admitted under current import conditions tomarket supply requirements ;
Whereas steps should betaken toensure that there isnoevasion oftho
objectives oftheAgreement T?yindirect imports ofproducts originating in
Malaysia .-
Whereas thequantitative limits laid down intheAgreement apply toexports
from Malaysia andwhereas thegoods imported therefore should becharged
against thequantitative limit fixed for^ePer10ciinwhich these goods were
exported from Malaysia .

-2-
Whereas forcertain textile products ,theAgreement provides foraconsultation
procedure enabling safeguard measures toboadopted where there isareal risk '
ofmarket disruption ;whereas ,inaccordance with this procedure ,Malaysia
hasundertaken toapply voluntary restraint inrespect ofitsexports ofcertain i
textile products tocertain Member States ;whereas theobservance ofthese '
quantitative limits will beguaranteed byanagreed system ofbilateral chocking ;
Whereas ,tothis end,quantitative limits should befixed forimports ofthes.e I
products into theMember States inquestion ,anddetailed rules should belaid
down fortheir administration bytheMember States ;
Whereas "theAgreement provides that those products which enter theCommunity' scustom
territory under inward processing orotnor temporary importation arrangements andare
re-exported therefrom intheir original state orafter processing should notbo
charged against theagreed quantitative limits ;
Whereas ,account being taken oftheprovisions ofArticle 12oftheArrangement
regarding International Trade inTextiles ,onwhich theabovementioned Agreement
between theEuropean Economic Community andMalaysia isbased ,this Agreement
does notapply totextile products ofsilk orofflax orramie ,
Has ADOPTED THIS REGULATION
Article 1
1.Imports into theCommunity ofthetextile products listed inAnnex A,
originating inMalaysia andexported between 1November 1975 •'
and 31December 1977 »shall besubject tothoquantitative restrictions agreod .
between thoCommunity and Malaysia andsetoutinthat Annex .
2.These quantitative limits shall beallocated among theMember States in
accordance with theprocedure laid down inCouncil Regulation (SSC)Eo1023/70
of25fey1970 establishing acommon procedure foradministering quantitative
quotas ^,andinparticular in/article 11thereof ,insuchawayastoensure the
expansion andorderly development oftrade intextiles and topermit amounts to
becarried over orbrought forward from oneyear toanother .
However ,theallocation shall bemade onthebasis oftheimport volumes admitted
under theconditions currently applied intheMember States and shall .provide
forannual rates ofincrease that areappreciably higher forthose Member States
whose import volumes arerelatively thelowest ,inorrier toalign them gradually
with market supply requirements .
3.Thecompetent authorities oftheMember States concerned shall ,within the
quantitative limits prescribed ,automatically authorize theimport oftheproducts
referred toinparagraph 1immediately upon production bytheimporter ofthe
original oftheexport licence issued bytherelevant Malaysian authorities
containing thedetails sot outinAnnex C.
lOJKoL124,8.6.1970 ,p.l

4»Authorised imports uhall hecharjca a^inst thoquantitative xisits vaxid for
theperiod during which "theproducts v.'cxota.-ccn aboard inMalaysia *or
export totheCommunity «
5.Products whioh or.tor thoCors-vni V*a©i».Tfcosr.o territory under i«wetf4
processing orother temporary importation arrangements andarero-e:cpor »Cu
therefrom intheir original state orafter processing snail notbocharged
against the (quantitative limits re^crrcci «.oi»»paragrt*pn 1.
/.rticle 2
1.Xotwithctandinj paragraphs 2,3and 4*i^porxs into theCo.dimity oft*.e
textile products listed inAnnex 3originating in'"ialaysia c~ii notbe
subject toquantitative restrictions .
2.Inthe"ember States specified inAnnex 3.imports ofthetextile products refer­
redtoinparagraph 1andexported from rtai-aysia between LNovember TV75 toi1
0ecemDeri977 shaLL besubject tothequantitative limits stated inthat Annex .
3.Thequantitative limits referred toinParagraph 2maybomodified according
totheprocedure laiddown byRegulation (22C)Xo1023/70,andinparticular
Article 11thereof .
4.Paragraphs 3,4and 5ofArticle 1shall apply tothequantitative restrictions
referred tointhis Article .
Article 3
Imports into theCommunity ofthotextile products referred tobelow ,originating
inMalaysia andaccompanied byacertificate issued and endorsed bytherelevant
Malaysianiauthorities 'andcontaining thedetails setoutinAnnex D,shall not
besubject toquantitative restrictions :
(i)cotton handloom fabrics ofthecottage industry ,containing notcore than"'
5/Sbyweight ofman-made fibres ,being fabrics which areboth traditionally
ofthekind woven onhandlooms andactually woven onaloom forwhich -tho
motive power isprovided entirely bytheoperators (that iswhere thethree
primary movements ofweaving ,namely shedding ,picking andbeating ,are
induced byhand orfoot and'noother source ofpower isused );
(ii)goods made upbythecottage industry from such handloon fabrics ;
(1)Ministry ofTrade andIndustry ,Malaysia

iii)traditional Malaysianfolklorehandicrafttextilesproducts,
includinghandicraftbatikproducts (1),cut,sewnorotherwise
fabricated byhandincottageswhichareunitsofthecottage
industry.
Article_4
ThisRegulationshallenterintoforceonthethirddayfollowing
itspublication intheOfficialJournaloftheEuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels, FortheCouncil
ThePresident
(1)Handicraft batikisproducedbyatraditional batikprocessbywhich
coloursandshadesareintroduced toableachedorwhitefabric.The
Theprocessiscarriedoutmanuallyinthreestagesnamely:
(a)waxing(application ofwaxbyhandtothefabric)
(b)dyeing/painting(application ofcoloureitherbythetraditional
cottagemethodofdyeingor.byhandpainting)
(c)de-waxing (boilingthefabrictoremovethewax)
Thethreestagesoftheprocessarerepeatedonthefabricforeach
ofthecoloursorshadesintheresultingdesign.

. .ANNEX A
QUANTITATIVE LIMITS REFERRED TOINARTICLE 1

_ANNEX_B
QUANTITATIVE LIMITSREFERRED TOINARTICLE2
Cate­
goryCCT
heading
M°MIMEXECode
(1976)DescriptionMember
StateUmtsQuantities
1.11.75to
31.12.761977
55.C9
56.0755.09-allcodes
56.07-01to36
2aex55.09Otherwovenfabricsofcotton
Wovenfabricsofman-madefibres(discon­
tinuousorwaste):
A.•ofsynthetic,textilefibres
ofwhich
Otherwovenfabricsofcotton:France
United-
Kingdom1.000kg
1.000kg466
1.341(a)424
1.219(b)
56.0755.09-03;04;05;51 ;
52;53;54;55;56;57;
59;61;63;64;65;66;
67;69;ex71;31;82 ;
83;T>4;86;87;92;93;
97
56.07-ex01;ex03 ;
05;07;08;13;14;16;
18;21;23;26;27;28;
33;34;36-Otherthanunbleached andbleachedFrance
United-
Kingdom1.000kg
1.000kg140
263127
239
Wovenfabricsofman-madefibres(discon­
tinuousorwaste):
exA.ofsynthetictextilefibres:
-otherthanunbleached andbleached
(a)Withamaximumof875tonsforproducts ,fallingunderoneorotherofpositions55.09and56.07A
(b)Vithamaximumof795tonsforproductsfallingunderoneorotherofpositions55.09and56.07A.

ANNEX_B_
p.2
QUANTITATIVE LIMITSREFERRED TOINARTICLE2

ArTNSXC
DétailsreferredtoinArticle1M)
Theexportlicencesissuedbythe..Ministry -of"TradeandIndustry ,forthe
productscovered bythisRegulationshallspecifyorcontain:
1.thedestination ,andinparticulartheMemberStateforv£.ich
thegoodsareintended;
2.thesériainuznber;
3.thenameandaddressoftheimporter;
4.thenameandaddressoftheexporter;
5.thenetweight,inkilogramsortonnes,andthevalueofthe
productscoveredbythelicence;
6.thecategoryagainstXiihichtheproducthasbeenchargedbythe
Malaysian ■authorities andthedescription oftheproduct;
7.acertificatetotheeffectthatthequantityinquestionhas
beenchargedagainsttheMemberStateofdestination'sshareof
theagreedceilingforexportstotheCommunity,or,where
appropriate,thatthequantityisintendedforimmediatere-export,
orforre–exportafterprocessing,fromtheCommunity;
8.theyearwhentheproductswereexported,thatiswhenthey
weretakenaboardinMalaysia ,forexporttotheCommunity.

I\r?^r»YT)
CortificntionrcOrrMt,oin"rtioln\
V
ThecertificateissuedbytherolovantMalaysianauthorities fortho i
productsreferredtoinArticle5exthisRcjju_i.ci.ti021shallcontain: !■
Thefollowingheading:
"Certificateinrespectofcottonhandloomfabricsandproductsthoroof"
Kameandaddressofmanufacturer .
■Namoandaddroscofexporter. /
NameandaddressofimportorvitninthoCommunity.
I
!.
Description ofgooas.
Quantity(intonnesoritems). !i
Kamaofvesselorflightnumber.
Portorairportofdestination .
Thefollowingcertification : j
"Thisistocertifythattheaboveshipmentconsistsof: - ;
J1
(i)cottonhandloomfabrics(asdefinedinArticle4,1(i)oftheAgreement)containingnotmorethan5%byweightofman-made 1 1
fibres,or
f..\ -, ^(ii)goodsmadeupbythecottageindustryfromcottonhandlo^j ;fabrics(asdefinedinArticle4.1(i)oftheAgreement,or
(iii)traditional Ma'-ays''anfolklorehandicrafttextileproducts
cut,sownorotherwisefabricatedbyhandincottageswhich
areunitsofthecottageindustry.
Signed
(1)MinistryofTradeandIndustryat:
-KoalaLumpur(principaloffice) j
-Penang,Gohorbru,KotaKenia,Notdoaru,Kiitooolu,Kuching(subsidiaries 1
Ee^tion.i0nSreferred*<>thosesetoutinArticle3ofthis