ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)410
Vol.1979/0147

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM (79)410 final
Brussels ,13th July 1979
..;V ■ ' *•>
\n.
L%
Y .i-
-ν
PROPOSAL FOR ACOUNCIL REGULATION (EEC )
OPENING ,ALLOCATING .ANDPROVIDING FORTHEADMINISTRATION
OFACOMMUNITY TARIFF QUOTA TO*PROCESSING WORK
INRESPECT OFCERTAIN TEXTILE PRODUCTS UNDER COMMUNITY
OUTWARD PROCESSING ARRANGEMENTS
(presented bytheCommission tothe Council )
COM (79)410 final

-1-
EXPLANATORY MEMORANDUM
(1)
1.InanArrangement concludedwiththeSwissConfederation on1August1969.
%
theEuropeanEconomicCommunityundertooktoopenanannualduty-free
Communitytariffquotaof1870000unitsofaccountofaddedvaluefor
variouskindsofprocessing workinrespectofcertaintextileproducts
undertheoutward-prcrcessing trafficarrangements betweentheCommunity
andSwitzerland .
i
Underthetermsofthememorandum agreed*atthetimetheArrangement was
made,thisannualtariffquotaisdividedintothreecategoiresofpro­
cessing,basedonthequantities recordedundertheformerbilateral
agreements (concludedwithSwitzerland byFrance,GermanyandItaly),
buttakingintriaccountthe'possibilitiesofextendingittotheBenelux
countries .
Onthebasisofthatdivisionthetotalquotaamountof1870000units
ofaccountisallocated,inaccordancewithcertainamendments,asfollows:
(i)1520000unitsofaccountforprocessing workonwovenfabricsfalling
withinChapters50to57oftheCommonCustomsTariff;
(ii)123000unitsofaccountfortwistingorthrowing,re-twisting,
cabling,texturizing (whetherornotcombinedwithotherprocessing
work)of"yarnsfallingwithinChapters50to57-oftheCommon
CustomsTariff.;
».f
(iii),'227000unitsofaccountforprocessing workonarticlesfalling
I•withinheadingsNos58.04,.58.05,58.07,58.08,58.09and60.01
'ioftheCommonCustomsTariff,subjecttothesettingupofa
Communityreserveof230000u.a.tobedrawnfromtheabove
quotas,í.e.160000u.a.,13000u.a.and57000u.a.respectively .
(1)0JNoL240,24.9.1969.

-2-
2.ThequestionwhetherthisArrangement shouldcontinuebeyond31August1977
hasbeenexaminedonseveraloccasions,notablyatthemeetingofthe
EEC-Switzerland JointCommitteeheldon3November1976,inregardto
thequotaamountswhichshouldbeadoptedthenceforth,accountbeing
takenofthefactthatthetransitional periodintheFreeTrade
AgreementconcludedwithSwitzerland,underwhichtextileproducts
qualifyingforSwissoriginstatusbyreasonoftheprocessing work
theyhaveundergone canenterduty-free,expiredon1July1977.
Thisquestionwasreconsidered atthemeetingoftheJointCommittee
heldon8May1979inordertoexamine,inthelightoftheexperience
gainedandoftheeconomicinformation available,theadaptations tobe
madetotheArrangement especially asregardsthefollowingpoints:
-reductiontobemadetothetotalquotaamount;
-divisionofthisamountintothreecategoriesofprocessing;
-allocationofquotaamountsamongMemberStates,.
Withregardtothefirstthreepointsraised,theSwissdelegationlaid
stressontheretentionoftheArrangement anditsMemorandumintheir
presentform,butagreeprovisionally totheabolitionofthedivision
ofthetotalquotaamountof1870000EUAintothethreecategories
ofprocessinginitiallyadoptedandhencetotheaggregation ofthe
sharesallottedtocertainMemberStates.
3.TheattachedproposalforaRegulationthereforeservesnootherpurpose
thantoopen,inEuropeanunitsofaccount,thetariffquotaprovidedfor
intheArrangement inquestionfortheperiod1September1979to
31August1980andtoallocateitamongtheMemberStatesalongthe
linessetoutintheMemorandum coveringthe.Arrangement,account
beingtakenoftheadaptations that'havetakenplacemeanwhileandof
theneedtoensurethatthenewMemberStateskhareintheallocation
ofthistariffquota.

Proposalfora
COUNCILREGULATION (EEC)
opening,allocatingAndprovidingfortheadministrationofaCommunitytariffquotafor
processingworkinrespectofcertaintextileproductsunderCommunityoutwardprocessing
arrangements
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle113
thereof,
HavingregardtotheproposalfromtheCommission,
Whereason1August1969theCommunityconcluded
anarrangementwithSwitzerlandonprocessingtraffic
intextiles;whereasunderthatarrangement the
Communityundertooktoopenon1Septemberofevery
yearanannualduty-freeCommunitytariffquotafor
processedgoodsof1870000unitsofaccountofadded
value,apportionedasfollows:
(a)1650000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
dieCommonCustomsTariff;
(b)143000unitsofaccountforthetwistingor
throwing,cablingandtexturizing (whetherornot
combinedwithotherprocessingwork)ofyarns,
fallingwithinChapters50to57oftheCommon
CustomsTariff;
(c)77000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
Whereas,inordertofacilitatethe
administration ofthistariffquota,
ithasbeendecidedtonolonger.
allocateaquotaamountprovisionally
toeachofthethreeabovementioned
categoriesofprocessing work;Whereasthetariffquotainquestion
shouldthereforebeopenedforthe
period1September1979to31August
1980,inaccordance .-withthedetailed
ruleslaiddowninthearrangement
referredtoabdveandintheadaptations
thereto,andincompliancewiththe
provisions-of CouncilRegulation -CEEC)
No2779/78of23November1978oan
theprocedureforapplyingtheEuropean
unitofaccount(EUA)tolegalacts
adoptedinthecustomssphere(1),and
inparticularArticle2thereof;
Whereasprovisionshouldbemadeinparticularto
ensureequalandcontinuousaccessforthoseconcerned
withthisquotaandconsistentapplicationoftherateof
dutyprescribedforthesaidquotauntilthequotais
exhausted,toallgoodsreimportedintoanyofthe
MemberStateswhichhavereceivedoneorotherof
thetreatmentslistedabove;whereasinthelightofthese
principlesarrangementsfortheutilizationofthequota
basedonanallocationamongtheMemberStateswould
seemtobeconsistentwiththeCommunitycharacterof
thesaidquota;whereasitthereforeseemsappropriate
tomaketheallocationonthebasisoftheamountofthe
trafficunderthepreviousbilateralagreements,but
withoutprecludingparticipationbyMemberStatesnot
previouslyinvolvedinsuchtraffic,amongwhichthe
newMemberStatesareincluded;whereas,tosafeguard
theCommunitycharacterofthequota,provision
(*)OJNoL333,30.11.1978,p.5.

shouldbemadetomeetrequirementswhichmayarise
inthoseMemberStatesinthefuturebypermitting
themtodrawadequateamountsfromthe
Communityreserve;
Whereastotakeaccountoffuturetrendsinthetraffic
inquestioninthevariousMemberStates,thetotal
quotavolumeof1870000Europeanunitsofaccount
shouldbedividedintotwoinstalments,thefirstbeing
allocatedamongcertainMemberStatesandthesecond
heldasareservetocoverthesubsequentrequirements
ofMemberStateswhenoneoftheirinitialshareshas
beenexhaustedandalsorequirementswhichmayarise
incertainMemberStatesinrespectofprocessingwork
forwhichnoinitialshareofthequotawasallocated;
whereasinordertogivethepartiesconcernedineach
MemberStatesomedegreeofcertaintyitwouldseem
appropriatetofixthefirstinstalmentoftheCommunity
quotaatarelativelyhighlevel,namely1640000
Europeanunitsofaccount;HASADOPTEDTHISREGULATION :
Article 1
WhereastheMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruptionof
suppliesonthisaccountitshouldbeprovidedthatany
MemberStatewhichhasalmostuseduponeofits
initialsharesshoulddrawanadditionalsharefromthe
reserve;whereaseachtimeitsadditionalshareisalmost
exhaustedaMemberStateshoulddrawafurthershare,
andsoon,asmanytimesasthereserveallows;whereas
theinitialandadditionalsharesshouldbevaliduntilthe
endofthequotaperiod;whereasthisformof
administration requiresclosecollaborationbetweenthe
MemberStatesandtheCommission,andthe
Commissionmustbeinapositiontokeepaccountof
theextenttowhichthequotahasbeenusedupandto
informtheMemberStatesaccordingly;
Whereasifatagivendateinthequotaperioda
considerablequantityofaMemberState'sinitialshare
remainsunuseditisessentials^^ordertoprevent
apartofthequotafromremainingunused
inoneMemberStatewhileitcouldbeused
inothers/thatsuchStatereturna-2.
significantproportionthereoftothereserve; ^
Whereas,sincetheKingdomofBelgium,theKingdom
oftheNetherlandsandtheGrandDuchyof
Luxembourgareunitedwithinandjointlyrepresented
bytheBeneluxEconomicUnion,anymeasure
concerningtheadministration ofthesharesallocatedto
thateconomicunionmaybecarriedoutbyanyoneof
itsmembers,1.From1September1979
to3tAugust.1980,aCommunity-
tariffquotaOf1870000Europeanunitsof
account(EUA)ofvalueaddedshallbeopenedinthe
EuropeanEconomicCommunityinrespectofgoods
resultingfromprocessingworkasprovidedforinthe
arrangementwithSwitzerlandonprocessingtrafficin
textilesassetoutbelow:
(a).PrOCeSSing workonwoven
fabricsfallingwithinChapters50to57ofthe
CommonCustomsTariff;
(b).-twistingorthrowing,cablingand
texturizing(whetherornotcombinedwithother
processingwork)ofyarnsfallingwithinChapters
50to57oftheCommonCustomsTariff;
(c)processing .workonproducts .falling
withinthefollowingheadingsoftheCommon
CustomsTariff:
58.04Wovenpilefabricsandchenillefabrics(other
thanterrytowellingorsimilarterryfabrics
ofcottonfallingwithinheadingNo55.08
andfabricsfallingwithinheadingNo58.05);
58.05Narrowwovenfabrics,andnarrowfabrics
(bolduc)consistingofwarpwithoutweft
assembledbymeansofanadhesive,other
thangoodsfallingwithinheadingNo58.06;
58.07Chenilleyarn(includingflockchenilleyarn),,
gimpedyarn(otherthanmetallizedyarnof
headingNo52.01and.gimpedhorsehair
yarn);braidsandornamentaltrimmingsin
thepiece;tassels,pomponsandthelike;
58.08Tulleandothernetfabrics(butnotincluding
woven,knittedorcrochetedfabrics),plain;
58.09Tulleandothernetfabrics(butnotincluding
woven,knittedorcrochetedfabrics),figured;
handormechanicallymadelace,inthepiece,
instripsorinmotifs;
60.01Knittedorcrochetedfabric,notelasticor
rubberized.
ForthepurposesofthisRegulation:
'processingwork*means:,
–forthepurposesofparagraph1(a)and(c):
bleaching,dyeing,printing,flocking,
impregnating,dressingandotherworkwhich,
changestheappearanceorqualityofthegoods,
withouthoweverchangingtheirnature,
–forthepurposesofparagraph1(b):twistingor
throwing,cablingandtexturizing,whetheror
notcombinedwithreeling,dyeingorother

-y-
workwhichAange*th«appearance,^talrffor
finishofthegoods,withouthoweverhanging
theirnature;
(b)'valueadded*meansthedifferencebetweenvVvalueforcustomspurposesasdefinedinRegulati..
(EEC)No803/68(')atthetimeofreimportationandthevalueforcustomspurposesasitwouldbeif
theproductswerereimportedinthestateinwhich
theywereexported.
3.WithinthistariffquotatheCommonCustoms
Tariffdutiesshallbetotallysuspended.
4.Reimportsofproductsresultingfromthis
processingworkmaynotbechargedtothetariffquota
iftheyarealreadyfreeofcustomsdutiesunderother
preferentialtariffarrangements.
Article2
1.ThequotalaiddowninArticle1(1)shall
bedividedintotwotranches.
Thefirsttranche/of1640000
EUA,shallbeallocatedassetoutbelowamong
theMemberStatescoveredbytheaforesaidarrangements
theshares,subjecttoArticle6,shallbevalidfrom
1September1980to31August1980:
(EUA)
Bénélux 20000
Germany 1080000
France 520000
Italy 20000
2.Thesecondtranche,of230000EUA,shall
constitute aCommunityreserve.
(1)0JNoL148,28.6.1968,p.1

-4-
Article3
iIncaseofneed
- ..in
anyofthenewMemberStates/
.theStateconcernedshall,
totheextentthatthereservesopermits,drawfrom
suchreserveanappropriateshareof
thequota.
Article4
1.IfaMemberStatehasused90%ormoreof
itsinitialshare.asfixedinArticle2(1),orofthatshare
minusanyportionreturnedtothereservepursuantto
Article6,itshallforthwith,bynotifyingthe
Commission,drawasecondshare,totheextentthatthe
relevantreservesopermits,equalto10%ofitsinitial
share,roundedupasnecessarytothenextwhole
number.
2.IfaMemberState,afterexhaustingitsinitialshare,
hasused90%ormoreofthesecondsharedrawnbyit,
thatMemberStateshallforthwith,inthemannerandto
theextentprovidedinparagraph1,drawathirdshare
equalto5%ofitsinitialshare,roundedupasnecessary
tothenextwholenumber.
3.IfaMemberState,afterexhaustingitssecondshare,
hasused90%ormoreofthethirdsharedrawnbyit,
thatMemberStateshall,inthemannerandtothe
extentprovidedinparagraph1,drawafourthshare
equaltothethird.
Thisprocessshallapplyuntilthereserveisusedup.
4.Bywayofderogationfromparagraphs 1,2and3,a
MemberStatemaydrawshareslowerthanthose
specifiedinthoseparagraphsiftherearegroundsfor
believingthatthosespecifiedmaynotbeusedinfull.
AnyMemberStateapplyingthisparagraphshallinform
theCommissionofitsgroundsforsodoing.
ArticleS
AdditionalsharesdrawnpursuanttoArticle3shallbe
validuntil31August1980•

Article6
TheMemberStatesreferredtoinArticle2(1)shall/
notlaterthan1July19SC^returntothereservetheunused
portionoftheirinitialsharewhich,on15June1980/1S
inexcessof20%oftheinitialvolume.Theymayreturn
agreaterportioniftherearegroundsforbelievingthat
itmaynotbeusedinfull.
MemberStatesshall,notlaterthan1July198Ci.notify
theCommissionofthetotalquantitiesoftheproductin
questionrcimporteduptoandincluding15June1980
andchargedagainsttheCommunityquotaandofany
portionoftheirinitialsharesreturnedtothereserve.
Article72.TheMemberStatesshallensurethatallpersons
establishedinitsterritoryinvolvedintheprocessing
traffichavefreeaccesstothesharesallocatedtoit.
3.TheextenttowhichaMemberStatehasusedupits
sharesshallbedeterminedonthebasisofthevalue
added,asestablishedwhenuponreimportation the
productsconcernedareenteredwiththecustqms
authoritiesforhomeuse.
TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3
and4andshall,assoonastheinformationreachesit,
informeachStateoftheextenttowhichthereservehas
beenusedup.Article9
AttherequestoftheCommission,theMemberStates
shallinformitofreimportations chargedagainsttheir
share..
Itshall,notlaterthan5July198Q,informtheMember
Statesoftheamountsstillinreserve,followingany
returnofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingthis
reserveisdrawntheamountsodrawndoesnotexceed
thebalanceavailable,andtothisendshallnotify.the
amountofthatbalancetotheMemberStatemakingthe
lastdrawing.
Article8Article10
MemberStatesandtheCommissionshallcooperate
closelytoensurethatthisRegulationiscompliedwith.
Article11
ThisRegulationshallenterintoforceon1September
1979.
1.TheMemberStatesshalltakeallappropriate
measurestoensurethatadditionalsharesdrawn
pursuanttoArticle4areopenedinsuchawaythat
reimportation maybechargedwithoutinterruption
againsttheiraccumulatedshareofthe
quota.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMemberStates.
DoneatBrussels,
FortheCouncil
ThePresident