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DOCUMENTS "COM"
COM(76)4
Vol.1976/0004

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COMMISSION OFTHEEUROPEAN COMMUNITIES
V COM(76)4 final
Brussels .21January 1976 *
PROPOSAL FORACOUNCIL REGULATION
onthecommon arrangements applicable
toimports oftextile products under
\
theoutward processing system
(Submitted bytheCommission totheCouncil )
COM (76)4final

EXPLANATORY METWRANEUM
1.Aproposalforadirectiveontheharmonizationofprovisionslaid
down"bylaw,regulationoradministrativeactioninrespectofoutward
processingisbeingexamined "bytheCouncilwithaviewtoitsadoption#
ThepurposeofthisdirectiveistoharmonizetheCommunityruleson
temporaryexportationforoutwardprocessingandtoensuretheuniform
applicationoftheprovisionsrelatingtothetarifftreatmentof
re-imported products.
Thedifferencesintheadministrative provisionsofMemberStateswith
regardtothequantitativecontrolofproductsre-importedafter
processingthereforeremain.Importsresultingfromprocessingoperations
are,inthecaseofproductswhichhavenotbeenliberalized,subjecteither
tospecialquotas,ortodeductionsfromthenormalquotas,orto
authorization onacase-by-casebasis,dependingontheMemberState;in
1thecaseofproductswhichhavebeenliberalized,theoperationsinquestion
aresubjecttoauthorization insomeMemberStates,andentirely
unrestricted inothers.
2.InconnectionwiththeapplicationoftheArrangement Regarding
International TradeinTextiles,theCommunityhasnegotiatedandisat
presentnegotiatingwiththethirdcountrieswhicharetheprincipal
suppliersoftextileproductsbilateralagreementsbasedingeneralon
voluntaryrestraintexercisedbythesecountriesinrespectoftheir
exportstotheCommunityofcertainproductswhichareregardedas
sensitive.Thevoluntaryrestraintceilingsprovidedforintheseagreements
ingeneralrelateonlytodirectimports;there-importation intotheCommunity
ofproductsresultingfromprocessingoperationsinthesecountriesis
normallykeptoutsidethescopeoftheseagreements,forseveralreasons:
tocomplywiththeprovisionsoftheMFA,whichprovidesforspecialand
individualized treatmentfortheseimports,becausetheceilingsagreedare
generallymanagedbytheexportingcountryandthisisincompatible with
•processingtraffic,andbecauseitislogicalthattheCommunityshouldretain
theresponsibility forassessingthevolumeofthistraffic,whichdepends
onthegeneraleconomiosituationineaohoftheMemberStates.

However,certaintextileproducts(inparticularclothing)exportedfrom
someofthesethirdcountriestotheCommunityconsistverylargely(up
to80$insomeMemberStates)ofproductsresultingfromprocessing
operations *
IthasthereforeprovednecessarytolaydownCommunityprovisionsmaking
itpossibletocontrolthequantitiesofthesere-imports.Itwouldbe
illogicaltomakedirectimportssubjecttorestrictions ortovoluntary
restraint,ortotheconsultation mechanismsresultinginvoluntary
restraintwhichareprovidedforintheagreements,whileleavingre-imports,
whicharesometimesconsiderable involume,outsidethescopeofany
Communitycontrolmechanism.
3.Consequently ,theCommissionrecommendsthattheCounciladoptthe
proposalforaregulationannexedhereto.
WithregardtotheAnnextothisdecision,inwhicharefixedtheamountsof
theannualCommunityquotasforthere–importationofcertainproductsfrom
certainthirdcountries,theCommissionreservestherighttoBubmit
quantifiedproposalsduringthediscussionoftheproposalintheappropriate
Councilgroup;thelistofthirdcountriesintheAnnexcouldthusbe
reviewedaocordingtowhetherornottheCommunityhasopenednegotiations
withthesecountries *
0

PROPOSAL FORACOUNCIL REGULATION
onthecommon arrangements applicable
toimports oftextile products under
theoutward processing system
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,,
andinparticular Article +13thereof ,
Having regard totheproposal from theCommission ,f
Whereas v-fche use ofoutward processing isofgreat importance inthetextiles
sector }/
Whereas itis "therefore essential ,aspart oftheimplementation _ ; /
oftheimport arrangements fortextiles ,toadopt certain measures
"regarding thequantities involved inoutward processing traffic for
textiles without prejudice totheprovisions applicable tothetariff
aspect ofsuch processing traffic *
Whereas therefore these imports must bemade subject tosurveillance
andmust belimited bymeans ofquotas_for certain products and ./
4/forcertain third countries , /
HAS ADOPTED THIS REGULATION : ,
Article 1
1.Importation into theCommunity oftextile produots falling within
Chapters 51 "to62inclusive oftheCCTtinder theoutward processing
system shall besubject toCommunity surveillance .
t

^Importation of_these products shall therefore beconditional upon the _/
presentation ofaspecial authorization granting thebenefit ofthe
outward processing system issued bythecompetent authorities ' /
oftheMember State oftemporary exportation ,inaccordance with the
provisions oftheCouncil Directive of ontheharmonization
ofprovisions laid down bylaw ,regulation oradministrative action inrespect
oftheoutward processing system .
2.Where compensating products arere-imported into aMember State other
than theState which temporarily export therelevant goods ,thecompetent
authorities oftheMember State oftemporary exportation shall ,before
issuing theauthorization ,inform theauthoritiesofthe Member ^tate^of ^"""
_ _ _ ___ " -- \ ...
re-importation andtheCommission ofthenature oftheprocessing operations ,the
description andquantities ofthecompensating products andthetime limit
forre-importation .
Intheevent ofsuch re-imports being likely tocause economio difficulties ,
consultations shall take place ontheinitiative ofaMember State orof
theCommission inorder tofind emappropriate solution .
Article 2
'•Inthecase ofthecompensating produots andthethird countries listed ''
intheAnnex ,theauthorizations referred toinArticle 1shall beissued
within thelimits of'theCommunity quotas whereof thesizeforthecalendar year
isfixed inthe said AnnexT /
2.Thequotas shall beadministered inaccordance with theprocedure laid
downinRegulation (EEC)No1023/70^andshall beallooated~acoording to*
requirements forthesupply of "thecompensating products concerned .
(1)OJlîoL124,8.6.1970 ,p.1.

Article 3
Until 30November ofeach year anynecessary amendments shall be .adopted for
thefollowing year tothemeasures provided forinArticle 2.
Article 4
This Regulation shall enter into force on1January 1976 .
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels . For the Council
The President

ANNEX
flomimiriity Quotas referred toinArticle 2
Compensating Produots
YUGOSLAVIA Amount ofQuota
60.04 Knitted undergarments
60*03 Knitted outergarments
61*01 Outergarments formen
61.02 BOutergarments forwomen
61*03 Undergarments formen
R0UMAMA
60.05
61.01
61.02
ex61*03Knitted outergarments
Outergarments formen
Outergarments forwomen
Men'sshirts
HUNGARY
60.04
60*05
61.01
61.02
61.03
61.04Knitted undergarments
Knitted outergarments
Outergarments formen
Outergarments forwomen
Undergarments formen
Undergarments forwomen
P0LAND
60*04
60.05
61.01
61.02
61.03Knitted undergarments
Knitted outergarments
Outergarments formen
Outergarments forwomen
Undergarments formen