ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)125
Vol.1981/0033

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)125final
Brussels/24thMarch1981
PROPOSAL FORACOUNCILREGULATION (EEC)
opening,allocating andprovidingfortheadministration ofa
Communitytariffquotaforprocessing workinrespectofcer­
taintextileproductsunderCommunityoutwardprocessing arran­
gements.._ • / "«.<*.X.<*\gements
U--
(presentedbytheCommissiontotheCouncil)t.\ .»ν
«|XS
LPj-
«?^.</
τ/
COM(81)125finalti-

■■:• .'iirrr^T.w.TT - vyp .AMAtXòv MPMfti?aMftMM " ;'-r."■•; . _Tr" "'EXPLANATORY MEMORANDUM r
i,V - ■. -- > : ■ .■ • ■ "■ -S
>'' .·* " ·»* ΦΛ\ '·.'· *- ' ··.·.· \*
i.InanArrangement Concluded with theSwiss Confederation on1August ■•1969/'}
f\" ;• v
ktheEuropean Economie éommurïity undertook toopenan
^Community tarif fquota of1870000units ofaccounttheEuropean Economic Community undertook toopen anannual duty-free
Community tariff quota of1870000units ofaccount ofadded value for {
I'-various kinds ofprocessing work inrespect ofcie'rtairi textile productsI
-1
under theoutward-processing traffic arrangements between theCommunity
andSwitzerland * ■, .'•; .-;■ ..v- . ■ vY..\' –
*-
Under theterms of 'thememorandum ag^eecf atthetime theArrangement was
- ■' .· -V '' -'ί
made ,this annual tariff quota isdivided into .three categoires ofpro- |
cessing ,based onthequantities recorded under theformer bilateral , |
tv
.– ;;; "
■countries . ,* v*
η -.ν ·■' ■ ·:ν 1 ·- ·■·.;· .■ ■;■·ι./agreements (concluded with Switzerland byFrance ,Germany and Italy ),
buttaking into "account the'possibi lities ofextending ;ittotheBenelux |
t. ■ • r . 4 • - A
ί π ?■ . -Γ.■·. Λ.·ν · - ; ....;. .I
^Onthebasis ofthJt division thetotal quota amo,M»)t,of 1'870000units .
r • • i* , . . • • ■.
l\ s ',i
lofaccount isallocated ,inaccordance wjth certain amendments /asfollows : ]
y.
:
£Ci>' 1520000unit isofaccount forprocessing work onwoven fabrics falling ,.
fwithin Chapters 50to57ofthe Common .Customs Tariff ; <?
(ii>-123000units ofaccount fortwisting orthrowing,' re-twisting , \ 1
cabling ,texturizing (whether or !hotcombined with trther processing ^j
Vwork )ofyarns falling within Chapters '50^957-ofthe'Common '^;l
Customs Tariff ; : \ :: \*?
■1'■/■>. .. ...V .■ ..■ ■
Hii )227000units ofaccount forprocessing work onarticles falling !
1.' .within headings .Nos58.04 ,58.05 ,58.07,' 5,8*08 ,58.09 and <S0.01
■ ' . . -· · '_ ·.- .-· · ·· ·" ''■oftheCommon Customs Tariff ^subject to .thesetting upofa
' Community reserve of .230000o.a.jtobedrawn from theabove . -5
IV quotás ,'i.e,'160 .000u«a0y.13Q0Q¿ü:«á«¿nd570QOu«a¿>respect'ively .-|
(1)6UN«,I.240-24.9,197 ?(itir<jif ;ii'ii'l'-ijfm'imir •

.Thequestion whether thisArrangement should continue beyond 31August 1977
...hasbeenexamined onseveral occasions ,notably atthemeeting ofthe
EEC-Switzerland Joint Committee heldon3November 1976,inregard to
thequota amounts which should beadopted thenceforth ,,account being
taken ofthefactthatthetransitional period in,theFreeTrade
Agreement concluded withSwitzerland ,JuVufer which textile products ?
qualifying forSwiss origin status byreason oftheprocessing work '
theyhaveundergone canenter duty-free *,expired on1July 1977 .
Thisquestion wasreconsidered atthemeeting oftheJoint Committee :
^heldon8«ay1979inorder toexamine ,inthelight oftheexp,'eri«nce
'gained andoftheeconomy Information available ,the-adaptations tobe ;
madetotheArrangement especial Lyasregards thefollowing points s
--reduction tobemade tothetotal <fuo?a .aaourit ;
.~division ofthisamount intothree categories ofprocessing ; ' ■
allocation ofquota amounts among Member States,'.'
Withregard tothefirst three points raised ,theSwiss delegation laid
stress-on theretention ofthe/Arrangement anditsMemorandum *„their
present -form,butagree provisionally ,totheabolition ofthedivision ''
ofthetotal -quota .amount of1870000 ,,£UAintoth*threecategories J
ofprocessing initially adopted .andhence t«the .aggregation ofthe'
shares allotted tocertain Weaber States -,'
Theattached proposal foraRegulation ;therefore serves noother purpose -
thantoopen,inEuropean units ofaccount ,,thetariff quota provided for
intheArrangement inquestion fortheperiod 1September 1981to
311August 1982andtoallocate Itamong themember States' along the
lines setoutIntheMemorandum covering .theArrangement ,account
being taken ofthe^■Pt«t1on»'that' havetaken place meanwhile andof
theneedtoensure that ;vajuj7#eaber States fchara Intheallocation '"
ofthis tariff ouota «... "7 :,;
ri
/

Proposalfora
COUNCILREGULATION (EEC)
opening,allocatingandprovidingfortheadministrationofaCommunitytariffquotafor
processingworkinrespectofcertaintextileproductsunderCommunityoutward
processingtraffic'
THECOUNCILOFTHEEUROPEAN
'COMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity,andinparticular
Article113thereof,
HavingregardtotheproposalfromtheCommission,
whereason1August1969theCommunity
concludedanarrangementwithSwitzerlandon
processingtrafficintextiles;whereasunderthat
arrangementtheCommunityundertooktoopen,on
1Septemberofeveryyear,anannualduty-free
Communitytariffquotaforprocessedgoodspf
1870000.unitsofaccountofaddedvalue,
apportionedasfollows:
(a)1650000 ,unitsofaccountfor
processingworkonwovenfabrics.fallingwithin
'Chapters50to57oftheCommonCustoms
jTariff;
(b)143000 ,■unitsofaccountforthe
twistingorthrowing,cablingandtexturizing
(whetherornotcombinedwithotherprocessing
work)ofyarnsfallingwithinChapters50to57of
theCommonCustomsTariff;
(c)77000EuropeanUnitsofaccountforprocessing
workonproductsfallingwithinheadingNos
58.04,58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
Whereas,inordertofacilitateadministrationofthis
tariffquota,itwasdecidednolongertoallocatea
quota,provisionally,toeachoftheabovethreecate­
goriesofprocessing;whereasth6quotainquestion
shouldthereforebeopenedfortheperiod1
September198*1to31August1982,accordingtothe
procedureprovidedforundertheabovearrangement,
asamendedandincompliancewiththeprovisionsof
CouncilRegulation(EEC)No2779/78of23
November1978ontheprocedureforapplyingthe
Europeanunitofaccount(ECJA)tolegalacts
adoptedinthecustomssphere('),andinparticular
Article2thereof;.Whereasprovisionshouldbemadeinparticularto
ensureequalandcontinuousaccessforthose
concernedwith.thisquotaandconsistentapplication
oftherateofduty,prescribedforthesaidquotauntil'
thequotaisexhausted,toallgoodsre-importedinto
anyoftheMemberStatesandwhichhavereceived
oneorotherofthetreatmentslistedabove;whereas,
inthelightoftheseprinciples,arrangementsforthe
utilizationofthequotabasedonanallocationamong
theMemberStateswouldseemtobeconsistentwith
theCommunitycharacterofthesaidquota;whereas
itthereforeseemsappropriatetomaketheallocation
onthebasisofthe'amountofthetrafficunderthe
previousbilateralAgreements,butwithoutprecluding
participation byMemberStatesnotpreviously
involvedinsuchtraffic^'
. whereas,tosafeguard
theCommunitycharacterofthequota,provision
•shouldbemadetomeetrequirementswhichmay
ariseinthoseMemberStatespermittingthemtodraw
adequateamountsfromtheCommunityreserve;
Whereas,totakeaccountoffuturetrendsinthe
trafficinquestioninthevariousMemberStates,the
totalquotavolumeof1870000Europeanunitsof
accountshouldbedividedintotwoinstalments,the
firstbeingallocatedamongcertainMemberStates
andthesecondheldasareservetocoverthesub­
sequentrequirementsofMemberStateswhenoneof
theirinitialshareshasbeenexhausted,andalso
requirementswh^chmayariseincertainMember
States'inrespectofprocessingworkforwhichno
initialshareofthequotawasallocated;whereas,in
ordertogivethepartiesconcernedineachMember
Statesomedegreeofcertainty,itwouldseemappro­
priatetofixthefirstinstalmentoftheCommunity
quota,atarelativelyhighlevel,namely1640000
Europeanunitsofaccount;
,(')OJNoL353,30.11.1971,p.9.23WhereastheMemberStatesmayexhausttheirinitial
thesharesatdifferentrates;whereas,toavoiddisruption
,ctsofsuppliesonthisaccount,itshouldbeprovidedthat
ilaranyMemberStatewhichhasalmostuseduponeof
itsinitialsharesshoulddrawanadditionalsharefrom
thereserve;whereas,eachtimeitsadditionalshareis
almostexhausted,aMemberStateshoulddrawa
jPTT^rtiiershare,andsoon,asmanytimesasthereserve
. •*he«ta»theinitialandadditionalshares

-2-
shouldbevaliduntiltheendofthequotaperiod;
whereasthisformofadministrationrequire*close
collaborationbetweentheMemberStatesandthe
Commission,andtheCommissionmustbeina
positiontokeepaccountoftheextenttowhichthe
quotahas'beenusedupandtoinformtheMember
Statesaccordingly;
Whereas,ifatagivendateduringthequotaperioda
considerablequantityofaMemberStatesinitial
shareremainsunused,itisessential,topreventapart
oftheCommunitytariffquotafromremaining
unusedinoneMemberStatewhileitcouldbeusedin
others,thatsuchStateshouldreturna1'.significant
percentagethereoftothecorrespondingreserve;
Whereas,sincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchy
ofLuxembourgareunitedinandjointlyrepresented
bytheBeneluxEconomicUnion,alltransactions
concerningtheadministrationofthesharesallocated
tothateconomicunionmaybecarriedoutbyany
oneofitsmembers,
HASADOPTEDTHISREGULATION :
ArticleÎ
\.From!September1981to31August1982,a
Communitytariff.quotaof1870000Europeanunits
ofaccount(EUA)ofvalueaddedshallbeopenedin.
respectofgoodsresultingfromprocessingVorkas
providedforinthearrangementwithSwitzerlandon
processingtrafficintextilesasfollows:
'(a)processingworkonwovenfabricsfallingwithin
Chapters50to57oftheCommonCustoms
Tariff; .
(b)twistingorthrowing,cablingandtextunzing
(whetherornotcombinedwithotherprocessing
work)ofyarnsfailingwithinChapters50to57or
theCommonCustomsTariff;
(c)processingworkoriproductsfallingwithinthe
followingheadingsoftheCommonCustoms
Tariff:
58.04Wovenpilefabricsandchenillefabrics
(otherthanterrytowellingorsimilarterry
fabricsofcottonfalling,withinheading
No55.08andfabricsfallingwithinheading
No58.05); ,■,
58.05Narrowwovenfabrics,andnarrowfabrics
(bclduc)consistingofwarpwithoutweft
assembledbymeansofan<adhesive,other
thangoodsfallingwithinheading
.No58.06;58.0?Chenilleyarn(includingflockchenille
yarn),gimpedyarn(otherthanmetallized
yarnofheadingNo52.01andgimped
horsehairyarn);braidsandornamental
trimmingsinthepiece;tassels,pompons
i.andthelike;
58.08Tulleandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),plain(a);
58.09Tulleandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),figured;handormechanically
made,lace,inthepiece,instripsorin
motifs;
60.01Knittedorcrochetedfabric,notelasticor
rubberized .
2.ForthepurposesofthisRegulation:
(ô)'processingwork5means:
–-forthepurposesofparagraph 1(a)and(c):
•bleaching,dyeing,printing,flocking,impreg­
nating,^dressingandotherworkwhich
changestheappearanceorqualityofthe
goods,withouthoweitrchangingtheir
nature,
–forthe.purposesofparagraph 1(b):twisting
orthrowing,cablingandtexturizin.g,whether
ornotcombinedwithreeling,dyeingorother
workwhichchangestheappearance,quality
.orfinishofthegoods,withouthowever ^ j
changingtheirnature;
'(b)'valueadded'.means:,thedifferencebetweenthe
valueforcustomspurposes -asdefinedin
CommunityRegulationsonthissubjectatthe
timeofre-importationandthevalueforcustoms
pusposesasitwouldbe'iftheproductswerere-
importedinthestateinwhichtheywere
exported..
3.Withinthistariffquota,theCommonCustoms
Tariffdutiesshallbetotallysuspended .
Withinthesamelimits,Greeceshallapply
customsdutiescalculatedinaccordancewithth
provisions'oftheActofAccessionMWXM.
ttjjilfwJilSneoftheprotocolsconcludedbyreasonof'thai.'accession.
4.Re-importsofproductsresultingfromthis
processingworkmaynotbechargedtothetariff
quotaiftheyarealreadyfreeofcustomsdutiesunder
otherpreferentialtariffarrangements .
' Article2
1.ThetariffquotareferredtoinArticleI(1)shall
bedividedintotwoinstalments.
The"firstinstalment,1640000Europeanunitsof
account,shallbeallocatedassetoutbelowamong
theMenrberStateslistedintheabovearrangement ;

-3-L
-1
theshares,subjecttoArticle6,shallbevalidfrom
1September1981to31August198S .r
.(EUA)
Benelux
Germany(FR)
.France .
Italy20000
1080000
520000
20000
.1.Thesecondinstalmentwhichamountsto
230000Europeanunitsofaccountshallconstitutea
!Communityreserve.
Article3■
Incaseofneedin,theotherMemberStatestheState1
concernedshall,totheextentthatthereserveso;
permits,drawfromSuchreserveasufficientshareof
thequota.ArticleS • ,N
ι%,·
AdditionalsharesdrawnpursuanttoArticle4shallbe
validuntil31August1982..
Article6
TheMemberStatesreferredtoinArticle2(1)shall,
notlaterthan1July1982,returntothereservethe
unusedportionof'theirinitialsharewhich,on
15June1982,isinexcessof20%oftheinitial
amount.They'mayreturnagreaterportionifthere
aregroundsforbelievingthatitmaynotbeusedin
full.
MemberStatesshall,notlaterthan1July1982,
notifytheCommissionofthetotalquantitiesofthe
productinquestionre-importeduptoandincluding
15June1982andchargedagainsttheCommunity
quotaandofanyportionoftheirinitialquota
returnedtothereserve.
Article4Article7
1.''IfaMemberStatehasused90%ormoreofits
initialshareasfixedinArticle2(1),orthatshare
minusanyportionreturnedtothereservepursuantto
Article6,itshallforthwith,bynotifyingthe
Commission ,drawasecondshare,totheextentthat
therelevantreservesopermits,equalto10%ofits
initialshare,roundedupasnecessarytothenext
,wholenumber._
2.IfaMemberState,afterexhaustingitsinitial
share,hasused90%ormoreofthesecondshare
drawnbyit,thatMemberStateshall,inaccordance
withtheconditionslaiddowninparagraph 1,drawa
thirdshareequalto5%ofitsinitialshare. ,
3.*IfaMemberState,afterexhaustingitssecond
share,hasused90%ormoreofthethirdshare
drawnbyit,thatMemberStateshall,inaccordance
withthesameconditions,drawafourthshareequal
tothethird. ' \
Thisprocessshallcontinuetoapplyuntilthereserve
isexhausted .
4..Bywayofderogationfromparagraphs 1,2and
3,aMemberStatemaydrawshareslowerthanthose...
specifiedinthoseparagraphsifthereare*groundsfor
believingthatthosespecifiedmaynotbeusedinfull.
AnyMemberStateapplyingthisparagraphshall
informtheCommissionofitsgroundsforso.doing.,IfheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,
3and4andshall,assoonastheinformationreaches
it,informeachMemberStateoftheextenttowhich
thereservehasbeenusedup.
»
Itshall,not'laterthan5July1982,"informthe
MemberStatesoftheamountsstillinreserve
followinganyretyrnofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingthis
reserveisdrawn,theamountsodrawn'doesnot
exceedthebalanceavailable,andtothisendshall'
notifytheamountofthatbalancetotheMember
Statemakingthelastdrawing.
Article8
1.'MemberStatesshalltakeallappropriate
measurestoensurethatadditionalsharesdrawn
pursuanttoArticle4areopenedinsuchawaythat
re-importation maybechargedwithoutinterruption
againsttheiraccumulatedsharesoftheCommunity
tariffquota.
2.EveryMemberStateshallensurethatallpersons
establishedinitsterritoryinvolvedintheprocessing
traffichavefree'accesstothesharesallocatedtoit..

i
1-4-
3.TheextenttowhichaMemberStatehasused-
upitssharesshallbedeterminedonthebasis-ofthe
valueadded,asestablishedv,henupon:re-importation
theproductsconcernedare'enteredwif.hthecustoms
authoritiesforfreecirculation .
Añide9
AttherequestoftheCommission ,theMemberStages
sJ-aliinformitofanyr£'^nip^'x<?,■:»or'co>trcproJuCvS
sr?ouesiiofi.actuallychargedagainstthdrshare.Articlelu
MemberStatesandtheCommissionshallcooperate
dose'ytoensureihatthisRegulationiscomplied
wtth.
iÀriictz'il
Tsii:P.esrutawofishallenterir-toforceonISep'ember
1981
ThisRegulationshal!bebindinginitsestirstyarti-irect:vappbc-.u-.-ieinahtvjrvoer
iu:.e3.' .> •
L>onea"-
rbr:'v~îCoUrai
~'bipv'CîLr.i'li