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DOCUMENTS "COM"
COM(76)706
Vol.1976/0209

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)706final.
Brussels.23December1976*
RECOMMENDATION FORACOUNCILREGULATION
concludinganAgreementbetweentheEuropeanEconomic
CommunityandtheRepublicofIndiaonTradeand
CommercialCooperationinJuteProducts
(submittedt»theCouncilbytheCommission)
CCM(76)706final.

EXPLANATORY 1OM0RANIXJM
1.Byadecisionof20January1976"theCouncilauthorizedthe
CommissiontoopennegotiationswithIndiafortheconclusionof
anAgreementontradeinjut©products.
2.PursuanttothisdecisionandinconsultationwiththeArticle113
Committee,theCommissionheldnegotiationswithIndiaon
1,2,5and6Aprilandfrom28Juneto1July1976.
3.Followingthesenegotiations adraftAgreementwasdrawnup,
themainprovisionsofwhichareasfollows:
(i)IndiawillcontinuevoluntarilytorestrictitsexportstotheCommunityofcertainjutefabricstoagreedlevels
(categories4»5and7)5
v
(ii)theestablishment ofaconsultationprocedureinrespectofjutefibres(category6)*whicharenotsubjecttoimportrestrictions ,toenablesuchrestrictionstobeintroduced
undercertainconditions ;
(iii)provisionstoensureflexibilityinthequantitativelimitsfixed(carryover,advancedeliveryandtransfer);
(iv)continuationofaprogrammeofprogressivesuspensionof
CCTdutieswhichtheCommunityiscarryingoutaspartof
itsofferregardinggeneralizedtariffpreferencesfor
theproductsinquestion(thedutywhichiscurrently
reducedby50$or60$willbereducedby80$on
1January1977andby100%(totalexemption)on1July1978.
Inthecaseofjutefibres,however,dutieswillbe
suspendedentirelyon1January1977jandthetotalexemption
alreadyinforceintheUnitedKingdomandDenmarkwill
continuetobeapplied.
(v)assurancesbyIndiathatitwillprovideonnon-discriminatory
termsthejuteproductsnecessarytosupplytheCommunity
marketandindustry ?
(vi)definitionofthetermsofreferenceoftheJointCooperation
Committeewithaview,interalia,toexaminingthe
possibilities andformulatingsuggestionsregardingresearch
anddevelopmentcooperationintheproductionanduseofthe
productsinquestion.
AfterestablishingthatthedraftAgreementconformedwiththeoutcomeof
thenegotiations,theHeadsofDelegationinitialledthetexton2July1976®
4.TheCommissionconsidersthedraftAgreementinquestionanacceptable
resultfortheCommunityoItrecommendsthattheCouncilconcludethis
Agreementbyadoptingtheregulationofwhichadraftisannexedhereto.
A
AnearlierAgreementconcludedbetweentheCommunityandIndia
(cf.OJL82,24March1974)onthesameproductsexpiredon
31December1975®

An .Exchange ofUotes Yerbales inwhich thetwoparties have agreed
tothedefacto application oftheprovisions oftheAgreement pending
thecompletion oftheprocedures necessary toitsformal entry into
force isalso annexed .

RMJOMMENDAH OHFORACOUNCILREGULATION
ooncludinganAgreement "betweentheEuropeanEconomic
CommunityandtheRepublicofIndiaonTradeand
CommercialCooperationinJuteProducts
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropeanEconomic
Community,andinparticularArticle113thereof,
HavingregardtotheRecommendation fromtheCommission,
WhereastheAgreementonTradeandCommercialCooperationinJute
ProductsnegotiatedbetweentheEuropeanEconomicCommunityandthe
RepublicofIndiashouldbeconcluded,
HASADOPTEDTHISREGULATION :
Article 1
TheAgreementbetweentheEuropeanEconomicCommunityandthe
RepublicofIndiaonTradeandCommercialCooperationinJute
Products,thetextofwhichisannexedhereto,isherebyconcluded
onbehalfoftheEuropeanEconomicCommunity »
Article2
ThePresidentoftheCouncilshallnotifytheotherContracting
PartyofthecompletionbytheCommunityoftheprocedures
necessaryfortheentryintoforceoftheAgreement.
Article3
ThisRegulationshallenterintoforceonthethirddayfollowing
itspublicationinth®OfficialJournaloftheEuropeanCommunities «
DoneatBrussels,
FortheCouncil
ThePresident

Αα.ΒΕΕΜΕΝΤ
theEarop.'sas Ee@ao®ic CoBaiunity a&dth«Bepufelie ®fIM1&
©atrad® ®a& ©©operation inJut® product®
THE COUNCIL OFTHEX730FZAM COMMUNITIES ,
ozthe ena part ,
and
fl$ GOVERNMENT 07TEE REPUBLIC OfINDIA
oftheother part ,
DESIROUS ©f©nsurlag anincreasing useofjute products &nd
theorderly development oftrade lathese product® between the
European Economic Comsarasity ,hereinafter referred toas"t&®
Cosraranity ^sadIndia ?
EAVTF8 SEG&HD totheCommercial Cooperation Agreement batwaan
theRepublic ofIndia mdtheComrmmity ,
NOTXFS theJoint Declaration ofIntent onthedevelopment of
xrade relations with Ceyloa (nowSxiLanka ),India ,Malaysia ,,Pakistan
(nowBangladesh andPakistan )endSingapore ,annexed to -thePinal
ActoftheTreaty ofAccession oftheKingdom ofDenmark ,Ireland ,theEixy
doseofNorway mdtheUnited Kingdom ofGreat Britain andF©rth® :w®,
Ireland totheEarepeM Eeoaomio Commaity andtheBaropaaa Atcaio
Energy Community ,of22January 1972 ,
COJSSCIOOS oftheprovisions ©ftheGeneral Agreement onTariffs
andTrade ,
BELIEYIHG that itisnecessary toencourage andfacilitate
contacts endcooperation between their respective jute intareeta ,
STRESSING thaaead forpromoting cooperation israeearoh and
development inthe jutaaactor ,
HAVEDB0IPED ,in&spirit etrnrtual eo?pera*i9n v*ooflnolvd#
this A^r«3JT-enta //
\C< .τ

Article 1
This Agreement shall apply tomanufactured jute products ,
originating inandcoming from India ,asdefined inAnnex A,

Article 2
for theduration ofthis Agreement andvithin theframework
ofitsoffer ongeneralized tariff preferences ,theCommunity shall
apply autonomously tomanufactured jute products originating in
andcoming from India ,theduties oftheCommon Customs Tariff sus­
pended iaaccordance with therate® andtimetable setoutinAnnex B.

Art-iole 3
1. TheCommunity shall not subject imports ofproducts defined
under Article 1tonew quantitative restrictions .
2. Asafirst step inthedirection ofeliminating instages re­
maining quantitative restrictions *theCommunity shall suspend the
existing quantitative restrictions ontheimports oftheproducts
defined inAnnex Cprovided that theGovernment ofIndia applies
such measures asarenecessary tokeep its exports within the quanti­
tative limits set out inthis Annex .
3. Ifadditional demand should arise ontheCommunity market ,
Community will notobject the^se quantitative limits being in­
creased ontheunderstanding that theadditional quantities shall
bedetermined onthebasis ofmutual agreement between both Parties *
Jf. Quantities ofthequota shares setoutinAnnex Cnottaken up
byaMember State oftheCommunity maybeused inanother Member State ,
within thelimits and inaccordance with theprocedures inforce in
theCommunity .TheCommunity undertakes toreply toanyrequest for
M-allocation made byIndia within four weeks ofitsreceipt .
/

Article H
TheCommunity shall noteubject imports ofjute yarn toquan­
titative restrictions .However ,theCommunity may ,when initsview
theconditions prevailing intheCommunity orinanyofitsmarkets
aresuch that alimitation onfurther trade maybenecessary ,request
consultations with India ,provided that thelevel ofimports into
suchregion oftheCommunity market hasexceeded theindicative level
indicated inAnnex E,andprovided further that therequest forsuch
consultations isaccompanied ,within areasonable period oftime ,
byastatement ofthemarket conditions intheCommunity orinthe
region oftheCommunity concerned .Until such time asamutually
satisfactory solution hasbeen reached ,India undertakes ,ifsore­
quested bytheCommunity ,tolimit theissue ofexport licences for
juteyarn totheCommunity ,ortotheregion orregions oftheCommu­
nitymarket concerned ,atthelevel*indicated bytheCommunity .L,

Article 5
1. Imports into theCommunity ofjute products covered bythis
Agreement which areintended forimmediate re-export from theCom­
munity orforprocessing andsubsequent re-export outside theCom­
munity shall not besubject tothequantitative limits established
bythis Agreement .TheCommunity authorities shall ascertain ,under
theadministrative system ofcontrol inforce forthis purpose
within theCommunity ,thequantities ofjute products imported from
India which areimmediately re–exported orprocessed andsubsequently
re-exported from theCommunity ,and inforn the Indiana ,authorities
thereof *
2. Inany case where thecompetent authorities within theCommu­
nity ascertain under theadministrative system ofeontrol inforce
that imports ofju-te products covered bythis Agreement have been
charged against the ceilings established under this Agreement but
have subsequently been re-exported from theCommunity ,theauthorities
concerned will inform theIndien authorities ofthequantities in­
volved andwill authorise imports ofthesame quantities which shall
not becharged against the ceilings fixed bytheAgreements
the
3. Inany case ,where Community authorities ascertain that the
imports referred toinparagraph 1have been retained forconsumption
within theCommunity ,thelatter will notify theGovernment ofIndia
onaquarterly basis oftheamounts involved ..Insuch cases theGovern­
ment ofIndia shall ?attherequest oftheCommunity ,charge such
amounts against th®quantitative liait orlimits inquestion forthe
'current year * A

Article 6
1„ Within anyon©Agreement year ,theunused portions ofoneof
thequantitative limits established under this agreement inrespect
ofanyregion oftheCommunity Market maybetransferred toanother
quantitative limit established forthesame region ©ftheCommunity
market asfollows
from thecategory h/3tothecategory 7,andvice -versa
provided that thequantities involved donotexceed 20%
ofthequantitative limit towhich they aretransferred .
2. Unused quantities ,notexceeding 10%ofoneannual ceiling ,
maybecarried over andadded totheceiling forthefollowing year#
3» Each annual ceiling maybeexceeded ,uptoalimit of10%of
itstotal ,inanticipation oftheceiling forthefollowing year-
if. Theabove flexibility provisions must not ,inanysingle given
Agreement year ,result inanyceiling being exceeded bymore than 2Q%,
5. Theprovisions ofthepreceding paragraphs shall only beapplied
byIndia following written notification totheCommunity bytheIndians
authorities .
\Λ

Article 7
1. Theagreed quantitative limits shall beadministered using
asystem ofdouble checking thedetails ofwhich aresetoutin
Annex D,subject tosuch changes asmaybemutually agreed upon
intheJoint Cooperation Comittee setupinArticle 10.
2. India undertakes toinform theCommunity ,onaquarterly basis
ofthetotal quantities covered byexport authorisations issued by
theIndian authorities forall the jute products referred toinAr­
ticle 3and ,where appropriate ,inArticle
3. Similarly theCommunity will inform theIndian authorities ,
onaquarterly basis ,ofthetotal volume ofimports into theCommunity
p£-^the products inquestion * Ij

Arti©!® 8
1,Theimplementation ofthis Agreement shall notdisrupt the
normal trad® ch&nsi®!® between India s_adtheCommunity .
£.Should oneoftheParties inform theother that special diffi­
culties hare arisen inthis connection ,thetwoParties shall consult
each other ,within theframework oftheJoint Cooperation CJitttt8e t
inorder todetermine themeasure® neeessary toremedy th®situation®

Article 9
Without prejudice tothepolicies oftheGovernment ofIndia
concerning theregulation ofitsexports according totheproduction
situation and the external demand fortheabove mentioned products ,
India undertakes totake appropriate steps toensure that theneeds
oftheCommunity market and industries are met inanondiscriminatory
manner .

Article 10
<j, AJoint Cooperation Committee shall b©setupandentrusted
with the following tasks ?
»toarrange consultations promptly attherequest ofeither
Party onanymatter concerning thj@& trade jut® products
inaspirit ofcooperation ?
-toexamine anyproblem which mayarise asaresult ofthe
implementation ofthis Agreement ,including theperspectives
inthelight oftheeconomic situation intheCommunity' a
jute sector ,fortheelimination instages ofquantitative
restrictions ;
toexamine ways andmeans ofincreasing anddiversifying
theend-uses ofjute products ,including studies ofthe
experience ofother markets inthis regard ?
-toinvestigate possibilities ,andformulate suggestions for ,
cooperation inregard toresearch into anddevelopment of,
theproduction anduse® ofjute products ;
-todevelop contacts between ,andfacilitate joint projects
andprogrammes mutually agreed upon by,representatives
ofthejute trade andindustries ofboth India andthe
Community .
Z» TheJoint Cooperation Committee shall becomposed ofrepre­
sentatives oftheRepublic ofIndia andtheCommunity ,
3» TheJoint Cooperation Committee shall beconvened y§t|&nthe
request ofeither Contracting Party and ,inanycase ,atleast once
y®ar- /}

Article 11
This Agreement shall enter into force onthefirst dayof
themonth following thedate onwhich theParties notify each other
that theprocedures necessary forthis purpose hare been completed ,
andshall apply from 1January 1976 .Itshall remain inforce until
31December 1979 * $
<\37

Article 12
Th«Annexes form &aIntegral part ofthis Agreement ,

Article 13
This Agreement hasbeen drawn upintwocopies intheDanish ,
Dutch ,English ,French ,German ,Italian andHindi languages ,each
text being authentic .
,Cone at onthe j
,\y h

MSE3C A
(«■Mneuaar^iyMWSwan »
Definition ofcategories ofjut© products covered byArticle 1
Category 1
Category 2Jute fabrics weighing mors than 50®g/w2andofa
width ofnotmore than 150cm,andjut© bags of
fabric weighing more than 500g/m2.
Jute fabrics weighing notless than 310g/m2 "butnot
more than 500g/m2,andofawidth ofnotmore than 150cm,
andjut©bags offabrics weigMng notless than 310g/m2
"butnotmore than 500g/m2.
Category 3
Category 4
Category 5Jute fabrics weighing less than 310g/m2andofwidth of
notmore than 150cmfandjute bags offabric weighing
less than 310g/m2.
Jut® fabrics ofawidth ofmore than 150cmbatnotmore
than 230cm,irrespective oftheir weight perm2fother
than those referred toincategory 7*
Jute fabrics ofawidth ofmore than 230cm,irrespective
oftheir weight per®2tother than those referred tcin
category 7®
Category 6
Category 7Jute yarn^s
Jute fabrics (T),bleached ,dyed orprinted ,either who
orinpart ,,ofa."width more than 150 «cm»ir «espectiv
their weight perm2»
(1)With nopatent selvecgaa atanyinternal throughout <>,>«,/© 0®
thewidth ofthecloth i

9
Tariffffospension& cew®y©&'byAs-tiel®2
CCTHeading -1., ,Pateofredactiontobe
N® Descriptionofgoods a.1.1.1977 -1.7.12?8
ΊYamofjuteorofothertextile "bast 100>~
fibresofheadingKo57*03
Wovenfabricsofjuteorofothertextile
"bastfibresofheadingNo57«03
A.Ofawidthofnotmorethaa150cm
andweighingperm2
I.Lessthan310g80%100^
II.Notlessthan310gButnotmom _%(%100,
than5°0g
III.Morethan$00g
£.Of*widthofmorethan,150em8c$fo100£
BC& 100%
S&tfksandbagsofakindusedforthepacking
ofgoods
A.Ofjuteorofothertextil®'feastfibres
ofheadingHo57®03
II.Other
(a)Offabricsweighinglessthaa
310g/rs2 BO$'100£
(b)Offabricweighingnotlees
thnn210g/ra2butnotsorethan
500g/r.2 ""
(c)Offabricweiringaorethan.
500g/z2 " w
7r.eCoaarunityherebyundertakestocontinuetosuspendcustomsdutiesor.
ic^ortsofpackagincmaterials,inaceordarxewiththeprovisions©fth®
CustoasC©as,v®ati©3&onteaporaararimpart®@fpaoki'AgL
ββΦ/β©Ο

ANNEX C
Products forwhich India wiItexercise restraint towards theCommunity
from theentry into force ofthis Agreement .
TheCommunity hereby notifies India that thequantitative limits forthejute
products mentioned below will feeallocated between theMember States asfollows
Categories 4/5 Quantitative limits (Metric tons )
,ν/Member
State1976 197 ? 197®
| 1979
BWL k.5k7 4*569 4.592 4.615
DK ! 696 698 701 705
FI
j 825940 1.083 1c224
FRG 1.8202.058 2.332 2.607
IR1 500 700 800 1.000
I 3^8402 462 437
UK
11.450 1.600 1.800 1.V90
EEC
|
I10.186
TfflnMBrri iiHiIttìiihii I11HUiiiiirFiBfflTTrB10.967 11.770 12.628
/7 L,

ANNEXC
P-2
ProductsforwhichIndiawiltexerciserestrainttowardstheCommunityfrom
theentryintoforceofthisAgreement-
TheCommunityherebynotifiesIndiathatthequantitative limitsforthejute
productsmentionedbelowwillbeallocatedbetweentheMemberStatesasfollows
Category7 Quantitative limits (Metrictons)
Member
State •1976 1977 1978 1979
BNL 586 589 592 595
DK 17* 175 176 m
F 185205 227 $51
FRG *55 490 530 571
IR1 100 MO 170 200
UK93
35097
390108
430117
480
EEC1.943 2,086 2.233 2,391

ΑΝΜ£Χ0
Syafceaofdoubl©ehackingdeferredtoinArticlef
I.atbi»Community,thecomplectauhtoritiesshallaccept,withoutdelay,
importsofproductslistedinArticle3ofthisAgreementuponproducti025
oftheimporter'srequesttogetherwiththeoriginalcopyofthaexport
permit(l)»
'FeecompetetIndianauthorities naiwllissueexportpermitsforallthe
productslistedinArsicle3ofthisAgreementwithinthequantitative -limitsset
outininneacC(andinanycasewherethe'provisionsofarticle4-barebeeninv«kd&)9
Theexportpermitmustmention ?
(a)thedestination,(relevantMomberState)
(h)thesériainumber,
(c)thenameandaddressoftheimporter,,
(d)thenameandaddressoftheexporter,
(e)thenetweight(inkilogrammesormetrictons)andthevaluet
(f)thecategoryandtheclassification oftheproducts,
(g)'thecertification issued "bytheauthoritiesstatingthatthequantityhas"beend<
liltedagainsttheagreedquantitativelimitsforexporttotheCommunity
(relevantMemberState)or,whereappropriatedisforimmediatere-eaporfc
orforinwardprocessingandsubsequentre-exportoutsidetheCommunity *
IntheCommunity,theoompeteatauthoritiesshallaccept,withinreasonable
limits,differences betweentheweightasstatedintheexportpermitandthe
cargoweightortheimportedweight®ThecompetentIndianauthoritiesshall
howeverendeavourtoreducesuchdiscrepancies toaminimum*
ThecompetentIndianauthoritiesshallnotifythecompetentauthoritiesin
t-heCommunityof©aywithdrawal,orpartwithdrawal,ofanexportpermit*Thai
lattershall,withinthecontextoftheadministrative regulationsgoverning
snofamattersjtakeappropriatesteps*
ThecompetentIndianauthoritiesehallforwardevery .threemonthsto'.hecom­
petentauthorities intheCommunity,tfiatheCommission,asummaryovthe
exportpermitsissued.Thesesummariesshall,state,foreve»*yat&yyyof
product,theretwe'ghttn-metrictunsoft-heauthorizedexports,.theiras­
signmenttothevariousceilintsa.-»d.theMember -StatesoftheCommunityto
tfbichthegoodsJiav.®beencor.sig'ne-J.' -• •-«-,".*'~'v
ThecompetentCommunityauthoiitiesshallforwardeverythreemontr-stothe
competentauthorities-inIndia,viatheMissionofIndiatotheEuropean
EconomicCommunityiriBrusselsasummaryofthemostrecantfiguresavailabte
forimportsofproductscoveredbythisAgreement.
fi";,wh»reimportlicencesarerequired -undertheregulationinforesinone
orj?iherVembtfS&ate^-suchlicencesshall-beissuedautomatically or,
de»ar,ti>withinaHmiteiidumberofeays» fl
■} /

AüNEX £
Indicative levels for tag imports of .jute yarn with reference
toarticle 4ofthe Agreement
Metric tons
Bénélux 640
United Kingdom 240
r I
J

ANNEX F
JOINT DECLARATION
The Contracting Parties agree tomake aspecial
effort tofulfil the tasks set out inArticle 10ofthe
Agreement .Tothis end they will :
a)encourage andfacilitate contacts between Indian
and Community jute interests ,inparticular
-annual review andmonitoring meetings
between the industrial and commercial
interests ofthetwosides ;;
-exchange ofdelegations ;
the formulation and execution ofjoint
promotion and publicity campaigns 5
b)examine thepossibility ofproviding support
for anyprogrammes orprojects jointly recommended
bythejute interests ofthetwosides aslikely
tobeofmutual benefit tothese interests ;
c)toconsider modalities tofacilitate .contacts and
cooperation between theIndian Jute Industries Research
Association andinterest edEuropean research .institutes and
examine -thepossibility "ofproviding support forany
\specific projects jointly drawn uporrecommended bythc-5 .through
V
j\yc