No C 203/16 Official Journal of the European Communities 29. 7. 83 
— under (b) in the second paragraph, insert a new indent after the first: '— are defined as 
extremely flammable by the EEC Directives relating to dangerous substances (4)'; 
footnote (4) placed at the end of the second indent shall become footnote (5); 
— the text at the bottom of the page under (3), (4), (5) shall read: 'Article 2 (2) (b), (c) and (d) 
of Council Directive 79/831/EEC of 18 September 1979 (OJ No L 259, 15. 10. 1979, pp. 11 
and 12).' 
4.5. Pre-treatment of toys likely to be washed 
— The present paragraph shall be preceded by the sentence '(a) Toys designed such that a 
child can enter them'. 
— The following paragraph shall be added: '(b) Disguise costumes; soft toys with a pile or 
textile surface. Such toys shall be washed, rinsed and spin-dried twice in a domestic 
washing machine, in a manner appropriate to the type of fabric of which they are made, at 
a temperature of 40° C with a moderate washing cycle and a light load or at a temperature 
of 50° C with a normal washing cycle and a heavier load (')•' 
— The following footnote (') shall appear at the bottom of the page: 'See, for example, 
Standard BS 5651, 1978, Ch. 6.' 
Proposal for a Council Regulation on outward processing relief arrangements* 
(Submitted by the Commission to the Council on 24 June 1983) 
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, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas, in the context of the international division 
of labour, many Community undertakings have 
recourse to outward processing relief arrangements, 
that is the exportation of goods with a view to their 
subsequent re-importation after processing, working 
or repair; whereas recourse to these arrangements is 
justified for economic or technical reasons; 
Whereas it is necessary to set up a system to provide 
partial or total exemption from import duties 
applicable to compensating products in order to 
avoid, at the time of their re-importation, the 
taxation of goods exported from the Community for 
processing; Whereas this exemption, if it concerns certain taxes 
other than customs duties and agricultural levies, 
may not be compatible with the common 
agricultural policy or with specific arrangements 
applicable to certain goods resulting from the 
processing of agricultural products, or with the 
objectives sought by the adoption of taxes of a 
particular type notably monetary compensatory 
amounts, additional amounts and compensatory 
taxes for compensating the price level used by third 
countries; whereas it is important to provide that the 
total or partial exemption applicable under the 
framework of the outward processing relief 
arrangements may not affect these taxes; whereas 
the Commission should be instructed to draw up a 
list of those taxes which may be of a very different 
nature; 
Whereas the use of outward processing relief 
arrangements must be refused by the competent 
authorities where the essential interests of 
Community producers are likely to be seriously 
affected; 
Whereas by virtue of Article 42 of the 1979 Act of 
Accession, the provisions of this Regulation 
regarding trade with third countries are to apply 
under the same conditions to trade within the 
Community in so far as customs duties may arise 
29. 7. 83 Official Journal of the European Communities No C 203/17 
during intra-Community trade; whereas, 
consequently, these provisions are applicable to 
trade between Greece and the other Member 
States; 
Whereas outward processing relief arrangements are 
governed at Community level by Council Directive 
76/119/EEC of 18 December 1975 on the 
harmonization of provisions laid down by law, 
regulation or administrative action in respect of 
outward processing ('); 
Whereas the importance of these arrangements in 
the context of the customs union is such as to 
require that they be uniformly applied in the 
Community; whereas it is therefore necessary to 
provide for an act that is directly applicable in the 
Member States and accordingly offers individuals 
the greatest measure of legal certainty; whereas it is 
appropriate to incorporate in a Regulation the 
principles of the above Directive; 
Whereas, it is necessary to ensure the uniform 
application of this Regulation and to provide for 
this purpose a Community procedure whereby 
implementing measures may be adopted; whereas it 
is advisable to organize close and effective 
collaboration between the Member States and the 
Commission in this area under the framework of the 
Committee for Customs Procedures with Economic 
Impact, set up by Council Regulation (EEC) No ... 
of... on inward processing relief arrangements; 
whereas it is important in this connection to give the 
Commission power to fix particular rules in order to 
take account of different price levels of goods in the 
Member States and, if necessary, of distortions of 
competition which could lead to deflection of 
trade; 
Whereas outward processing relief arrangements 
constitute an essential instrument of the 
Communitiy's commercial policy, 
HAS ADOPTED THIS REGULATION: 
TITLE 1 
General provisions 
Article 1 
1. This Regulation lays down the rules governing 
outward processing relief arrangements. 
2. The outward processing relief arrangments 
allow the temporary exportation of goods outside 
the customs territory of the Community with a view 
to undergoing processing operations and being 
re-imported in the form of compensating products 
with partial or total exemption from the amount of 
import duties. 
(i) OJ No L 24, of 30. 1. 1976 p. 58. 3. For the purposes of this Regulation: 
(a) 'import duties' means customs duties, taxes 
having equivalent effect, agricultural levies and 
other taxes at importation provided for under 
the common agricultural policy of specific 
arrangements applicable to certain goods 
resulting from the processing of agricultural 
products; 
(b) 'temporarily exported goods' means goods 
placed under outward processing relief 
arrangements in order to be made the object of 
processing operations: 
(c) 'Community goods' means goods: 
— entirely obtained in the customs territory of 
the Community, without the contribution of 
goods imported from third countries; 
— imported from countries or territories not 
forming part of the customs territory of the 
Community and which have been placed in 
free circulation in a Member State in 
accordance with the Treaties, 
— obtained in the customs territory of the 
Community either from goods as provided 
for in the second indent above only, or from 
goods as provided for in the first and second 
indents above; 
(d) 'person' means a natural or legal person; 
(e) 'processing operations' means: 
— working of goods, including fitting or 
assembling them or adjusting them to other 
goods, 
— processing of goods, 
— repair of goods, including restoring them to 
their original condition and putting them in 
order; 
(f) 'compensating products' means all products 
resulting from a processing operation; 
(g) 'goods in the unaltered state' means temporarily 
exported goods which have not undergone any 
processing operation. 
Article 2 
Outward processing relief arrangments shall be 
open to: 
(a) Community goods, on condition that their 
temporary exportation has not given rise or does 
not give rise to any exemption from or remission 
of import duties or to any export refund 
established at Community level; 
(b) goods in the unaltered state within the meaning 
or Regulation (EEC) No.../... [inward 
processing], as well as the compensating 
products obtained under those arrangements. 
No C 203/18 Official Journal of the European Communities 29. 7. 83 
TITLE II 
Contents of the authorization and conditions 
governing the granting thereof 
Article 3 
1. The use of outward processing relief 
arrangements shall be conditional on the issue of an 
authorization by the competent authorities of the 
Member State in which the temporary export 
formalities are to be carried out. 
2. The authorization shall be issued at the request 
of the person who carries out the processing 
operations. That person shall be required to supply 
all the information needed for the issue of the said 
authorization. 
Article 4 
1. The authorization shall be granted: 
(a) only to persons established in the Community 
who supply proof that the processing operations 
will be carried out on their behalf; 
(b) only where it is possible to ensure that the 
compensating products have been manufactured 
from the temporarily exported goods. 
2. The competent authorities shall refuse to grant 
an authorization to persons who do not offer all the 
guarantees which they consider appropriate. 
Article 5 
Authorization shall not be granted where the use of 
outward processing relief arrangements is liable 
seriously to damage the essential interests of 
Community processors. 
Article 6 
1. The authorization shall lay down the 
conditions on which the arrangements may be 
used. 
2. The holder of the authorization is required to 
notify the competent authorities of any factors 
arising after the issue of the authorization and likely 
to influence its validity or content. The competent 
authorities may alter the authorization accordingly. 
Article 7 
1. The authorization shall be revoked where one 
or more of the conditions laid down for its issue are 
not or are no longer fulfilled. Such revocation shall not affect the retention under the arrangements of 
goods already temporarily exported before the date 
on which such revocation takes place. 
2. The authorization shall be null and void if it is 
established that is was issued in consideration of 
inexact or incomplete information knowingly 
furnished by the person concerned. 
TITLE III 
Provisions relating to the operation of the 
arrangements 
Article 8 
The conditions for placing the goods under the 
outward processing relief arrangements shall be 
determined in accordance with the procedure 
provided for in Article 18 of Regulation (EEC) 
No.../... 
Article 9 
1. Subject to Article 10, the compensating 
products must be re-imported into the territory of 
the Community by the holder of the authorization. 
2. The competent authorities shall determine the 
time limit for re-importation having regard to the 
circumstances and nature of each processing 
operation. 
3. The competent authorities shall determine the 
rate of yield of the processing operation. 
4. The competent authorities may authorize, 
when the circumstances so justify, total or partial 
re-importation of compensating products which 
have only undergone part of the operations 
provided for in the authorization. 
Article 10 
When the ownership of the temporarily exported 
goods under outward processing relief arrangements 
is transferred, the competent authorities shall allow 
the arrangements to continue on condition that the 
compensating products are re-imported by the 
holder of the authorization. 
Article 11 
The compensating products may be re-imported 
under the arrangments by another person 
established in the Community provided he has 
obtained the consent of the holder of the first 
authorization and provided the conditions of the 
original authorization are fulfilled. 
29. 7. 83 Official Journal of the European Communities No C 203/19 
Article 12 
1. Where the compensation products are 
re-imported into a Member State other than that 
from which the goods were temporarily exported, 
the authorization granted by the competent 
authorities of the Member State of temporary 
exportation shall be recognized by the competent 
authorities of the Member State of re-importation. 
2. Where the circumstances so warrant, the 
competent authorities of the Member State of 
re-importation may amend the conditions provided 
for in the authorization. 
Article 13 
1. In order to calculate the partial or total 
exemption from the amount of import duties, 
provided for in Article 1 (2) where the compensating 
products are placed in free ciruculation, if necessary 
after being placed under another customs regime, 
the amount of import duties to be taken into account 
shall be the difference between : 
(a) the amount of import duties applicable to 
compensating products declared for free 
circulation and 
(b) the amount of import duties which would be 
applicable to goods temporarily exported if they 
were imported into the customs territory of the 
Community from countries where they were the 
object of the processing operation or of the last 
processing operation and placed in free 
circulation in that territory at the date of 
acceptance of the declaration for entry for free 
circulation of the compensating products. The 
amount of these import duties, hereinafter called 
the amount to be deducted, shall be determined 
under the conditions laid down in paragraph 2. 
2. The amount to be deducted shall be calculated 
on the basis of the quantity and nature of the 
temporarily exported goods at the date of their 
temporary exportation and on the basis of the value 
which shall be determined in accordance with the 
procedure provided for in Article 18 of Regulation 
(EEC) No.../... However, certain charges other 
than customs duties, taxes having equivalent effect 
and agricultural levies shall not be taken into 
consideration, in calculating the amount to be 
deducted. The list of these charges shall be adopted 
in accordance with the procedure referred to 
above. 
3. When the temporarily exported goods have been 
classified under a tariff heading providing for the 
application of a reduced or nil rate by virtue of a 
particular end use, this rate shall be taken into 
account in so far as the goods were so used in the 
country where the processing operation or last such 
operation took place. 4. Where the compensating products qualify for 
preferential tariff treatment applicable under 
Community provisions to the country in which the 
goods have been obtained, the rates of import duties 
to be taken into account in calculating the amount 
to be decucted shall be that which would be 
applicable if the temporarily exported goods 
fulfilled the conditions under which this preferential 
tariff treatment may be granted. 
5. The provisions of this Article shall be without 
prejudice to the application of the provisions 
adopted or to be adopted in the context of trade 
between the Community and third countries, 
providing for exemption from import duties in 
respect of certain compensating products. 
Article 14 
1. Reimportation of compensating products shall 
be carried out totally free of customs duties, taxes 
having equivalent effect and agricultural levies 
where it is duly established, to the satisfaction of the 
competent authorities that the repair of goods 
temporarily exported under the outward processing 
relief arrangements was carried out free of charge, 
either because of a contractual obligation or legal 
reasons arising from a guarantee or because of the 
existence of a manufacturing defect. 
2. Paragraph 1 shall not, however, apply where 
account was taken of the defect, for the purposes of 
determining the customs value, at the time the goods 
were released for free circulation. 
TITLE IV 
Final provisions 
Article 15 
1. Where Article 12 applies and as long as import 
duties are to be charged in the context of trade 
between the Member State into which the 
compensating products are re-imported and the 
Member State from which the goods are temporarily 
exported, the amount which may be deductible 
persuant to Article 13 shall be reduced by the 
amount of import duties which would have been 
applicable to the temporarily exported goods, if they 
had been imported direct from the Member State 
from which the goods were temporarily exported for 
processing. 
2. Measures derogating from paragraph 1 may be 
adopted in accordance with the procedure provided 
for in Article 18 of Regulation (EEC) No .../... so 
that account can be taken of a special situation, 
particularly in the case of the application of 
different price levels for agricultural produce in the 
Member States concerned. 
No C 203/20 Official Journal of the European Communities 29. 7. 83 
Article 16 
The procedures provided for in this Regulation shall 
also be used for the implementation of non-tariff 
measures of common commercial policy, without 
prejudice to any special rules provided for in that 
area. 
Article 17 
1. Each Member State shall notify the Commission 
of the factors which led to the grant or refusal of 
outward processing relief authorizations in so far as 
the processing operations warrant investigations at 
Community level on the basis of detailed rules to be 
established in accordance with the procedure 
provided for in Article 18 of Regulation 
(EEC).../... 
The Commission shall forward this information to 
the other Member States. 
These notifications shall be examined by the 
Committee referred to in Article 18 of this 
Regulation. 
The said notifications and information shall be 
treated as confidential. 
2. When the competent authorities in a Member 
State consider that a consultation is necessary to 
ensure that the economic conditions provided for in 
Article 5, allowing the issue of an authorization, are 
fulfilled, it shall submit the case to the Commission 
which shall forward this information to the other 
Member States. 
The Commission shall decide, after the Committee 
referred to in Article 18 has delivered an opinion, on 
the existence or absence of the conditions provided 
for in Article 5. 
Article 18 
The Committee for Customs Procedures with 
Economic Impact, established by Article 16 of Regulation (EEC) No.../... shall examine any 
matter concerning the implementation of this 
Regulation raised by its chairman either on his own 
initiative or at the request of the representative of a 
Member State. 
Article 19 
The provisions required for the implemention of this 
Regulation shall be adopted in accordance with the 
procedure provided for in Article 18 of the 
Regulation (EEC) No .../... 
Article 20 
1. This Regulation shall enter into force on 
1 January 1984. With the exception of Articles 18 
and 19, it shall apply six months after the adoption 
of the implementing provisions to be adopted in 
relation to Articles 3, 4, 5, 6, 8, 9, 10, 12, 13, 16 and 
17, in accordance with the procedure provided for 
in Article 18 of Regulation (EEC) No .../... 
2. The provisions of Directive 76/119/EEC and 
Commission Directives 76/527/EEC (l) and 
76/206/EEC (2) adopted for its implementation, 
shall be repealed with effect from the date from 
which the provisions of this Regulation apply. Any 
reference to the said Directives shall be construed as 
a reference to this Regulation. 
3. Authorizations granted before the date of entry 
into force of this Regulation shall be revoked or 
replaced no later than one year after that date if they 
cannot be retained on the basis of this Regulation. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
(i) OJ No L 69, 12. 6. 1976, p. 43. 
(2) OJ No L 62, 4. 3. 1978, p. 40.