Hi r-iM 
•s/m.* • vHet/mt COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC93) 10 final 
Brussels, 19 January 1993 
Proposal for a 
ftnilNfllL REGIIIATION (EEC) 
amending Regulation (EEC) No. 636/82 establishing arrangements for 
economic outward processing traffic applicable to certain textiles and 
clothing products re-Imported Into the Coinaiunity following 
working or processing in certain third countries 
frâBJ^^i-
IHÉLAV 
•^<vmam (presented by the Commission) 
EXLANATORY MEMORANDUM 
Council Regulation (EEC) No. 636/82 of 16 March 1982(1) created economic 
outward processing arrangements applicable to certain textile and clothing 
products reimported into the Community after working or processing in 
certain third countries. In the context of the application of these 
arrangements the annual quantities of compensating products which the 
beneficiaries of these arrangements are allowed to reimport, are 
distributed by the competent authorities of each Member State within the 
l imits "ô"? the annual quant it ies ôT compensât ing products whose 
reimportation the Member State concerned is allowed to authorize. 
As it has been outlined in the Communication of the Commission on the 
completion of the International Market in trade in textile and clothing 
products (Doc, 7006/92), as approved by the Council, the establishment of 
the Internal Market in 1993 will result in the creation of an area without 
internal frontiers comprising inter alia, the free movement of goods and 
the elimination of disparities as regards imports arrangements. It is. 
therefore, necessary to introduce the indispensable modifications to 
Council Regulation (EEC) No. 636/82 in order to ensure an implementation of 
the arrangements created by this Regulation at Community level. 
in order to achieve this objectif, it is proposed to proceed in a two-tier 
process: 
As a first step, to be introduced by 1st January 1993, the existing 
national OPT quotas would be replaced by Community quotas, open to 
those operators eligible under R 636/92 on a first-come, first-
served basis. The competent authorities in Member States would 
continue to deliver prior authorizations to applicants. By means of 
an informatic system to be established between Member States and the 
Commission, they will have to make sure that the allocated prior 
authorizations do not exceed the total annual quantities available. 
It will also be possible to reimport the compensating products in any 
Member State, regardless of which Member State issued the prior 
authorizat ion. 
As a second step, to be implemented by the end of 1993 at the 
latest, the rules for implementation of Reg. 636/82. in particular 
the admission of beneficiaries, which up to now is not uniform in 
the different Member States, will have to be harmonized. Other 
outstanding issues like the management of the 14% derogation for 
third countries' fabrics will also have to be addressed. 
The purpose of this proposal is to introduce the modifications of the first 
step. 
The proposed regulation is also intended to adapt the list of textile 
products (categories) to which Council Regulation (EEC) No. 636/82 applies 
resulting from the classification of textiles products based on the 
Combined Nomenclature. 
(1) JO n- L 76 du 20.3.1982, p. 1. 
^ I 
Proposal for a Council Regulation (EEC) No. ... of 
amending Regulation (EEC) No. 636/82 estabIishing arrangements for 
economic outward processing traffic applicable to certain textiles and 
clothing products re—imported Into the Community following 
working or processing In certain third countries 
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 of the Commission, 
Whereas Council Regulation (EEC) No. 636/82(1^. as last amended by the Act 
of Accession of Spain and Portugal of 12.6.1985^), created economic 
outward processing arrangements applicable to certain textile and clothing 
products reimported into the Community after working or processing in 
certain third countries; 
Whereas, consequently, the import arrangements in the Community for the 
textile and ciotning sectors as regards certain third countries contain 
specific measures applicable to products resulting from outward processing 
operations; 
(1) OJ No. L 76 of 20,3.1982, p. 1. 
(2) OJ No. L 302 of 15.11.1985, p. 139 
- 3 -
Whereas under Council Regulation (EEC) No. 4136/88 of 22 December 1988 on 
the common arrangements applicable to importations of certain textile 
products originating in third countries,C ) as last amended by Council 
Regulation (EEC) No. 362/92 of 19 December 1991c2>, the classification of 
textile products (categories) was based on the Combined Nomenclature; 
Whereas it is, therefore, necessary that the list of products to which 
the provisions of this Regulation apply should be in conformity with that 
classification; 
Whereas the present Regulation should not affect the reimportations into 
the Community of products after working or processing in third countries on 
the basis of prior authorizations issued before the date of its 
applications: 
Whereas it is both necessary and appropriate to adopt the proposed 
measures in order to ensure an efficient Community administration of the 
outward economic traffic arrangements; whereas this type of administration 
requires close cooperation between the Member states and tne Commission-, 
HAS ADOPTED THIS REGULATION: 
(1) OJ NO. L 387 of 31.12.1988. p. 42. 
(2) OJ No. L 45 Of 20.2.1992. p. 1. 
J^T u.. t C f £ . ».. 
Councli aeguI at I on CH^C) 535782. Isanendsc as follows: 
i. m Article i r paragraph 1, the words -50 to 52 of tie Common 
Customs Tariff" are replzced by the words "50 to 63 of the 
combined Nomenclature** 
z. At the end or Article 2, paragraph 2 Ca) the foi lowing text 
)$ added : 
-Tne Counc?;^ acting on a proposal or the Coranission, shari 
review the conditions for the application of this sub­
paragraph before the end of ?SS3.-
3- in Article 2, paragraph 2Cb}, the words "annuar quantities 
fired by xne eoapetem authorities of the Member state where 
the application is aade* are replaced by the words "annual 
quantities fixed at Co»ounity level". 
4* Article 2, paragraph 2Cc)a fs amended as follows c 
- At. the end of the first sub-paragraph the following test 
is added z 
"The Council, acting on a proposal of the Commission 
snaU review the conditions for the application of This 
paragraph before the end cf 1993". 
- ir. the fjrst sentence of the second sub-p«ragra.ph the 
word "quarter-jy is replaced by the word "weeicJy". 
- At the end of the -second" &ib ~ paragraph the following test 
is added = 
•The commission saaH ensure that tee u«3t of 14% a© 
foreseen above will not be exceeded at the Community 
level-. 
5- Article 3 5s replaced by the following text = 
•1. The Counol i shall establish at Comsmnity tevei the 
• annual quantities of compensating procticis whose 
reimportation may be authorised under the specific 
ïnport arrangements referred to In Article \C3). 
2* The competent authorities shall distrisute the annuel 
quantities referred to in paragraph i above among _tha 
ceneflclarles as defined In Article 2. 
3- Without Drejudïce to Article 2 (3), this distribution 
shall he Dado whilst ensuring that the ooiectlv* of 
maintaining the industrial activity of the beneficiary 
in the Community, as laid down In Artie re 2 C2JCaJ. Is 
respected both as regards the nature of th© products 
and their quantities expressed ir> physical units or 
added value. 
4. The annual quantities of compensating products shati 
be distributed asons the beneficiaries on the basis 
of their demands» and supporting valid contracts* 
The competent authorities shall allocate th» 
quantities of compensâtIng products on a fîrst-coae, 
first-served basis. This allocation will ce done by 
maximum asounte for each category and for each third 
country concerned. if a now application is &ubaritted, 
additional amounts for each category and for each 
third country concerned may only pe allocated by the 
competent authorities to a particular beneficiary when 
the previously authorised emdunt for that beneficiary 
has been effectively utilised by ct least SOX. 
5* Notwithstanding paragraphs 3 and 4, each beneficiary 
shall be entitled with priority to an amount eauat to 
the total quantities of compensâtIng products for each 
category and for each third country concerned for 
which It carried out outward processing operations. 
In conformity with the provisions of the Regulation, 
during one of the two years preceding the date of 
application of the present Regulation. 
$. Ouant it les of compensating products rererr^ to In 
paragraph S which have not been utilised by-the 
beneficiaries and which naye not $&en claimed by the» 
by 1 July of each caienear year, shau be re-eliocated 
in accordance with" the provisions of paragraph •£ among 
an other beneficiaries as defined in Article 2 (23 -
- (• -
7. if necessary, it aey he decided in accordance with 
the procedure laid down in Article :2„ that z certain 
perccazzg& of the annual cuantlties or compensating 
products may be ar located wizu priority to persons 
defined in Article 2 C2KaJ» tafclng Into account the 
value added of their production and/or the level of 
employment In their production. 
8. Provisions relating to the application of this Article 
shell be adopted in accordance with the procedures 
laid down in Article 11 before 1 January 7593.• 
6. The first paragraph of Article 4 is replaced by tne 
foi Jowîng text -. 
"1. 
The competent authorities shall malce sure that the • 
allocated prior authorisations do not exceed the total 
annual quantiiles of compensating products estebfished 
at Commun Ity level. For this purpose, the competent 
author 1 tes shall commun 1 cats to tne commission the 
quantities requested by the persons concerned before 
granting these authorisations ïn order to verify that 
these quantities are avai(ablewithin the total 
Quantities established at Community fevei.* 
7. in Article 7, the first sub-paragraph is deleted. 
8. rn Article 5r paragraph 2 is deleted. 
9. In Article ?V# the second sub-paragraph Is replaced by the 
fol lowing text z 
-Council Regulation CE£C) n~ 2473/56 of 24 July 1986 on 
outward processing relief arrangements z.ne the standcrd 
exchange system^1 ), as wen as any provisions taicen for its 
application, shall net be affected"-
(1) O.J. n- L 212 of z August 19S5, 
f 
*m • '2" - •? -
10, The Annex to the Regulation is amended as follows : 
- The iïst of categories is replaced by the following 
1 ist = 
•-4. «. 8. 7, 8, 10» 12, 13, 14, 15, 15, 17» IS, 21, 
24. 26, 27, 28. 29. 31, 68. 65, 70. 72, 73, 74, 75, 
76. 77, 78. 53, 85, 36, 87, 91." 
« footnote n" 1 Is replaced by the following text 
*Ci} Categories refer to those l i*tec in Annex 1 to 
Council Regulation <E£CD n" 768/88 (OJ n* L $4 of 
29.3.19883 and to Council Regulation CEHC3 n* $69/92 
CO.J. n* L 45 Of 20-2.1992)." 
- At the end of footnote n* 2, first sub-paragraph, the 
following text is added: 
"The Council, acting on a proposal of the Commission, 
shall review the conditions for the application of 
this paragraph before the end of 1993.-
- At the beginning of the first sentence of footnote n~ 
2, second sub-paragraph, the words mzvery wee**..- «re 
added. 
- At the end of footnote n' 2 the following text is 
added ? 
"The Coaaission shall ensure that ti\e Halt of 7% as 
foreseen above will not be exceeded at the Community 
level". 
Article 2 
The present Regulation shall not affect the reimportation into 
the European Community of products after wording or processing in 
third countries on the basi* of prior authorization» issued 
before 1 January 1993. 
Article 3 
This Regulation shall enter into force on the third day following 
its publication in the Officiât journal of the European 
Communities, it shall apply from 1 January 1993. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member state's-
Pone zt Brussels. 
For ths Counci 1 
The President 
"0 
ISSN 0254-1475 
COM (93) 10 final 
DOCUMENTS 
EN 02 
Catalogue number : CB-CO-93-014-EN-C 
ISBN 92-77-51939-8 
Office for Official Publications of the European Communities 
L-2985 Luxembourg