COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 05.06.1997 
COM(97) 274 final 
97/0164 (ACC) 
Proposal for a 
COUNCIL REGULATION (EC) 
on the implementing methods for Decision No of the EC-Cyprus Association Council . 
derogating from the provisions concerning the definition of the concept of originating products laid 
down in the Agreement establishing an association between the European Economic Community 
and the Republic of Cyprus 
(presented by the Commission) 

SUMMARY 
In a joint declaration annexed to the Protocol fixing the terms for the transition to the 
second stage of the EEC-Cyprus Agreement, the Community and Cyprus agreed to 
examine requests for derogations made by Cyprus after the entry into force of the said 
Protocol. 
The requests were intended to permit Cyprus to use fabric of third country origin for the 
manufacture of garments which are intended for export to the Community within the 
framework of a preferential regime provided for in the Agreement. 
A draft decision of the EC-Cyprus Association Council granting Cyprus a prolongation 
of an existing derogation for fixed quantities during a limited period has been submitted 
to the Commission for approval by means of written procedure, on condition that Cyprus 
collects the duties applicable to the materials used initially and regularly furnishes certain 
statistics to the Community. 
This draft regulation fixes the implementing methods for this decision. 
EXPLANATORY MEMORANDUM 
According to the current rules of origin of the EEC-Cyprus Agreement, garments 
manufactured in Cyprus may only benefit from preferential treatment on import into the 
Community if they are made up from fabric woven in Cyprus or in the Community. 
As practically no weaving takes place on the Island, Cyprus has been granted since the 
entry into force of the Association Agreement in 1973 a derogation for men's garments, 
allowing the use of imported fabric. 
An equivalent derogation for women's garments and for men's shirts was granted in 
1989 for a period of two years by Decision No. 1/89 of the EEC-Cyprus Association 
Council of 28 July 1989(1) prolonged for three further periods of two years by Decision 
No. 1/91 of 19 December 1991(2), Decision No.1/94 of 14 February 1994(3) and Decision 
No. 1/95 of 22 December 1995(4). 
Cyprus has requested a further prolongation of this derogation and a draft decision of the 
EC-Cyprus Association Council granting Cyprus a prolongation of the said derogation 
has been submitted to the Commission for approval. 
The Commission is charged with the management of the quantitative limits fixed in the 
decision in question. 
To this end it is proposed that the Council adopts a draft regulation on the implementing 
methods for the said decision. 
(I) OJ No L 230 of 8.8.1989, p. 3. 
a) OJ No. L 372 of 31.12.1991, p. 37. 
(3) OJ No. L 53 of 24.02.1994, p. 19. 
<4) OJ No. L 326 of 31.12.1995, p. 63. 
Proposal for a 
COUNCIL REGULATION ŒO 
on the implementing methods for Decision No of the EC-Cyprus Association Council 
derogating from the provisions concerning the definition of the concept of originating products laid 
down in the Agreement establishing an association between the European Economic Community 
and the Republic of Cyprus 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof, 
Having regard to the proposal from the Commission, 
Whereas the Agreement establishing an Association between the European Economic Community and 
the Republic of Cyprus (1) was signed on 19 December 1972; whereas it entered into force on 1 June 
1973; 
Whereas the Additional Protocol<2) to the said Agreement was signed at Brussels on 15 September 1977; 
whereas it entered into force on 1 June 1978; 
Whereas, pursuant to Article 25 of the Protocol concerning the definition of the concept of originating 
products and methods or administrative cooperation annexed to the Additional Protocol, as extended by 
Article 2 of the Protocol laying down the conditions and procedures for the implementation of the 
second stage of the Agreement establishing an association between the European Economic Community 
and the Republic of Cyprus and adapting certain provisions of the Agreement(3), which was signed at 
Luxembourg on 19 October 1987, entered into force on 1 January 1988 and forms an integral part of the 
Agreement, the EC-Cyprus Association Council adopted Decision No ....(4) derogating from the rules of 
origin applicable to certain textile products; 
Whereas the implementing methods for this Decision should be fixed, 
HAS ADOPTED THIS REGULATION: 
Article I 
1. The quantities listed in Annex I to Decision No shall be administered by the Commission. 
If an importer enters, for circulation in a Member State, a product covered by a certificate EUR. 1 
bearing the endorsement referred to in Article 4 of Decision No and that entry is accepted by the 
customs authorities, the Member State concerned shall, by notifying the Commission draw an amount 
corresponding to its requirements. 
2. Requests for drawing, endorsed with the date of acceptance of the said entry, must be forwarded to the 
Commission forthwith. 
(1)OJNoL133,21.5. 1973, p. 2. 
(2) OJ No L 339, 28. 12. 1977, p. 2. 
(3) OJ No L 393, 31. 12. 1987, p. 2. 
(4) See page of this Official Journal 
<f 
3. Drawings shall be granted by the Commission in chronological order of the date of acceptance by the 
customs authorities of the Member State concerned of the entry for free circulation, to the extent that the 
available balance of the said amount so permits. 
4. Should a Member State fail to use the quantities it has drawn, it shall return them as soon as possible. 
5. If the quantities requested are greater than the available balance of the amount, they shall be granted 
pro rata, pursuant to paragraph 3. The Commission shall inform the Member States of the drawings 
made. 
Member States shall be informed forthwith when the quantity has been used up. 
Article 2 
This Regulation shall apply for a period of two years starting on 28 July 1997. 
Article 3 
This Regulation shall enter into force on the day of its publication in the Official Journal of the 
European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at 
For the Council 
The President 
IMPACT STATEMENT 
IMPACT ON COMPETITION AND EMPLOYMENT IN THE COMMUNITY 
The proposal will not have any effect on competition and employment in the Community. 
c 
ISSN 0254-1475 
COM(97) 274 final 
DOCUMENTS 
EN 10 11 
Catalogue number : CB-CO-97-270-EN-C 
ISBN 92-78-20857-4 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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