ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)420
Vol.1977/0136

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)420 final
Brussels,23September1977*
Proposalfora
COUNCILREGULATION (EEC)
concerning importarrangements forcertain
textileproductsoriginating intheSocialist
Federative RepublicofYugoslavia
(submittedtotheCouncilbytheCommission )
kf2?c-.H.^/5,VId\ASor*ida.£5/
C0M(77)420final

EXPLANATORY MEMORANDUM
1.Byadecisionof18December1975"theCouncilauthorized ,theopeningof
negotiations withtheSocialistFederativeRepubLicofYugoslaviato
concludeanAgreementontradeintextileproducts.
2.InconformitywiththeabovecitedCouncildecisionandinconsultation
withthespecialArticle113Committee,theCommissionheldnegotiations
withYugoslavia "betweenMarchandJune1976.
Followingthesenegotiations adraftAgreementwasdrawnupandinitialled
"bytheheadsofdelegationon25June197^»TheCommissionpresenteda
recommendation fortheconclusionofthisAgreementtotheCouncilon
April6,1977.Thiswasapproved "bytheCouncilon5"thofApril1977•
3.TheAgreementprovides,inparticular,forvoluntaryrestraint "bythe
Yugoslavauthorities ,withinagreedquantitative limits,onexportsof
certaintextileproductstotheCommunityandforchecks "bytheCommunity
thattheselimitsarenotbeingexceeded.
Inordertocarryoutthesechecks,thisproposalforaregulation
introducesarrangements wherebyimportsintotheCommunityoftheproducts
inquestionaresubjecttoquantitative limits.
4.TheAgreementconcernsonlyproductsoriginatinginandcomingfrom
Yugoslavia.TheYugoslavauthorities applyvoluntaryrestraintonly
todirectexportstotheCommunity.Thus,productsincategories
coveredbytheAgreementandoriginatinginYugoslaviacanbefreely
exportedtotheCommunityviaanothercountry.TheCommunitycan
raiseobjectionstosuchindirectexports,fortheAgreementobliges
itonlytoadmitproductsthatoriginateinandcomefromYugoslavia
whichareaccompanied byexportcertificates drawnupinaccordance
withtheprovisionsoftheAgreement.Sincesuchindirectimports
arecontrarytotheaimsoftheAgreement,theimportsystemestablished
bytheCommunitymustnecessarily applytoproductsoriginatingin
Yugoslaviawherevertheyznaycomefrom.

5.Itisproposed that theCommunity quantitative restrictions hemanaged
inaccordance with the same procedure asthe Community quantitative quotas
laid down inRegulation (EEC)No.1023/70,andinparticular Article 11
thereof ,^hisprocedure requires theCouncil tofixthecriteria for
thedistribution ofthequantitative restrictions .
Thedistribution criteria referred toarethose that guided the
preparatory work within theCouncil fortheadoption ofdecisions onthe
opening ofbilat'eral negotiations under theArrangement regarding
International Trade inTextiles .Thedistribution (1)will thus be
based onthese criteria andinparticular ontheresults ofwork already
accomplished .
6.TheAgreement negotiated provides fortheautomatic andimmediate
acceptance bytheCommunity authorities ofimports subject toaceiling ,
upon presentation bytheimporter oftheoriginal export certificate
issued bytheYugoslav authorities stating that thequantities exported
have been charged against theagreed ceilings .Inpractical terms ,
this stipulation means that theMember States *authorities areobliged to
grant import authorization automatically andimmediately upon presentation
ofarequest from theimporter which isaccompanied bytheexport certificate
referred toabove ,oncondition that theagreed limits arenotexceeded .
7*Inorder toenable alltheaims oftheAgreement tobeaccomplished
assoon aspossible ,theCommission proposes that theCouncil adopt
theattached draft regulation speedily .
(1)Thedistribution will bethesubject ofaseparate regulation tobe
adopted bytheCommission ,also onthebasis ofRegulation No.1023/70.

PROPOSAL FOR A
COUNCIL REGULATION (EEC)
.concerning import arrangements forcertain textile products
originating in -CheSocialist Federative Republic ofYugoslavia
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
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 andtheSocialist Federative Republic
ofYugoslavia have negotiated anAgreement ontrade intextiles ;whereas the
Council hasapproved arecommendation foraRegulation concluding that
Agreement presented bytheCommission ;
Whereas ,forthepurpose ofimplementing theAgreement ,import arrangements must
beadopted fortheproducts inquestion }
Whereas theAgreement requires theCommunity toadmit imports ofcertain textile
products within thequantitative limits ,compliance with which will be
guaranteed byasystem ofbilateral checking ;
Wh easappropriate provisions applicable intheCommunity should therefore be
adopted for1976 and 1977 »including criteria fortheallocation ofthequantitat­
ive limits agreed with theSocialist Federative Republic ofYugoslavia .
Whereas ,inview oftheconsiderable disparities existing between theconditions
currently governing imports oftheproducts concerned into theMember States and
inview oftheparticular sensitivity oftheCommunity 'stextile industry ,standar­
dization ofthese import conditions canonly beachieved progressively ;whereas the
criterion tobeadopted fortheallocation oftheCommunity quantitative limits
should therefore beinparticular thegradual adjustment ofthequantitaties ad­
mitted under current import conditions tomarket supply requirements ;

-2
Whereas imports ofg*oods exported from theSocialist Republic ofYugoslavia
should ,becharged against the (juantitive limits fixed intheAgreement for
the same peri i;
Whereas steps should hetaken toensure that there isnoevasion oftheobjectives
oftheAgreement byindirect imports ofproducts originating intheSocialist
Republic ofYugoslavia ;
Whereas theAgreement provides that those products which enter theCommunity 's
customs territory under inward processing orother temporary importation arrange­
ments andaxere-exported therefrom intheir original state orafter processing
should notbecharged against theagreed quantitative limits ;
Whereas theAgreement does notapply tore–imports from Yugoslavia oftextile
articles produced bytheworking orprocessing ofproducts temporarily ex­
ported bythe Community ;
HAS ADOPTED THIS REGULATION i
Article 1
Imports into theCommunity ofthetextile products listed inAnnex I,
o„ginating inYugoslavia andexported between 1January 1976 and 31December 1977 »
.are.subject tothequantitative limits agreed between theCommunity and the
SocialistFederativeRepublic ofYugoslaviaand6etoutinthat Annex .
2. Thequantitative limits are allocated among theMember States inaccor­
dance with theprocedure laid down inCoucil Regulation (EEC)No1023/70of
25May 1970 establishing acommon procedure foradministering quantitative quotas
(1),andinparticular inArticle 11thereof ,insuch awayastoensure the
expansion andorderly development oftrade intextiles andtopermit amounts to
becarried over orbrought forward from oneyear toanother .
However ,theallocation is made onthebasis oftheimport volumes
admitted under theconditions currently applied intheMember States andshall
provide forannual rates ofincrease which areappreciably higher forthose
Member States whose import volumes arerelatively thelowest ,insuch awaythat
this allocation isgradually aligned with market supply requirements .
(1)JOL.124of8.6.1970 ,p.1

3*ThecompetentauthoritiesoftheMemberStatesconcerned ,shall,within
thequantitativelimitsprescribed,automatically authorizetheimportofthe
productsreferredtoinparagraph 1immediately uponproductionbytheimporter
oftheoriginaloftheexportlicenceissuedbythecompetentauthoritiesof
theSocialistFederativeRepublicofYugoslaviaandcontainingthedetailsset
outinAnnexII.
4.Authorizedimports .arechargedagainstthequantitativelimitsvalid
fortheyearduringwhichtheproductsweretakenaboardwithintheterritory
oftheSocialistFederativeRepublicof"YugoslaviaforexporttotheCommunity.
5.ProductswhichentertheCommunity'scustomsterritoryunderinwardpro­
cessingorothertemporaryimportationarrangements andarere–exportedthere-
fromintheiroriginalstateorafterprocessingshallnotbechargedagainst
thequantitativelimitsreferredtoin_paragraph 1.
6.ProductswhichentertheCommunity*s customsterritoryafteroutwardwor­
kingorprocessinginYugoslaviaofproductstemporarily exportedbytheCommu­
nityshallnotbechargedagainstthequantitative limitsreferredtoin
paragraph 1.
Article2
ThisRegulation .entersintoforceonthethirddayfollowingitspu­
blicationintheOfficialJournaloftheEuropeanCommunities.
ThisRegulation isbindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels,
FortheCouncil
ThePresident

ANNEX I
Quantitative limits referred toinArticle 1
Common
Customs
Tariff KoIîTimez
Description of
goodsQuantitative limits
(metric tons )
jCode 1976 1977
55-09
i01to
98Other woven fabrics
ofcotton
ofvhichEEC 12779 13546
ex55.09 Cotton fabrics ,other
than unbleached or
bleached
EEC 1425 1505
ex62.02 £11,41,
43,47,
71,73,
81Bedlinen ,table
linen ,toilet linen
andkitchen linen of c
curtains and other
furnishing artioles
ofcottonotton j
EEC 952 1009

AOTîEXII
DetailsreferredtoinArticle 1
TheexportlicencesissuedbytheauthoritiesoftheSocialistFederative
RepublicofJugoslaviainrespectoftheproductssubjecttorestraint
underthisregulationshallspecifyorcontain:
1•destination
2.sériainumber
3.importer *snameandaddress
4.exporter *snameandaddress
5»netweight(inmetrictons)andvalue
6.categoryandclassification ofproduct
7.certificateissuedbytheYugoslavauthorities showingthatthe
quantityhasbeendebitedagainsttheagreedceilingforexportsto
theCommunityor,whereappropriate ,isforimmediatere-exportor
forprocessingandsubsequentre–exportoutsidetheCommunity.
8.yearduringwhichtheproductswereexportedi.e.loadedinYugoslavia
forexport.