ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)406
Vol.1978/0156

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)406final.
Brussels,2August1978
Proposalfora
COUNCIL REGULATION (EEC)
maintainingquantitative restrictions on
theimportationintoBelgium,Luxembourg
andtheNetherlands ofcertaintextile
productsoriginatinginGreece
(submittedtotheCouncil "bytheCommission)
COM(78)406final.
1r

EXPLANATORY KSIOIiANDUM
1.Aswasestablishedatthoboginningof1977?allGroekexportsof
textileproducts "benefitfromvariousincentives,notablyaninterestrate
' -- 1
subsidyonloanstothesupplier,calculatedasavariableproportionof
thoexportprice(DecisionNo1574oftheCreekMonetaryCommittee),
Thesubsidyisaimedatoncouraging exportspaidforinconvertible
currencyandtakestheformofarepayment'ofpartofthefobpricoon
exportation ;atthemoment,thisrefundcanbeashighastwelvepercenton
textileproducts,dependingontheamountofvalueaddedinGreece#Inthe
caseofcottonyarn,theavera.~eis8.5%oftheprice.Aneacureofthis
3:iniisequivalenttoanexportsubsidy,andassuchiscontrarytothe
very-principleofArticle92oftheTreaty.'Article5*j0*"theAthensAgree­
mentstatesthattheContractingTartiesrecognizethat/theprincipleslaid
downinArticlo$2ofthoTreatyshould'boappliedinthoirrelations
withintheAssociation..Tothatend,Articlo.52(l)providesthatthoAsso-
}ciationCouncilshall,by1November1964»adopttherulesandooniitions
fortheapplicationoftheseprinciples.Sincenodecisionhascofarbeen
t-vken,Articlo55enablesthoCommunitytoadoptanyprotectivemeasures
whichitconsiderstobeneededtoovercomedifficulties duetotheabsence
ofadecisionoftheAssociation Councilonthematter.
,Itshouldbonotodthatthemoasureconcernedconstitutes anaid
whichundernormal .Communitypracticewould'neverqualifyforexemption
uriderArticlo92(2)or(3).
\ V1
Thi3measure,whichisprosentedbyGreeceasareimbursement of
indirecttaxesonexport,eventhoughsuchapresentation cannotboaccepted
bytheCommission,would,fromthatpointofview,becontrarytothe •
provisionsofArticlo53(2)whichforbidfreimbursements onexportgreater
; .. •I ,thantheactualinternalcharges.

EvenontheCreekinterpretation ,thedetailsprovidedbyGreeceindicate
arealleveloftnxpaidofnomorethanabout2.5/«•Anexaminationof
thoCreekcalculations showsfirstofallthatonly4.284asagainstare­
imbursementrateof8.5%ioaccountedforandthataotothercm.ti.ilvroven
Croecodoesnotcoentobeabletoestablishabrookdownofchargoc.Out
ofthe4.234£afurther0.714/'»representingafinancingchargeforthotrue
beforeitisreimbursedand1.102$forotampdutyreimbursedbyotherracasuroo,
shouldbedeductedleavingonly2.468
2.Anotherexportincentivewithamorelimitedeffectshouldalsobe
mentioned.Itconsistsofaflatc–ratepercentagedeductionfromthoexporter's
taxableincome,forentertainment expensesetc.,irrespective ofthevalue
ofhisexports(Article35ofLawNo3323/1955)*'•
Thisconcessionissetattwopercentofexportturnover;nosupport­
ingevidencei3requiredandthedeductionisallowedinadditiontoany
expenditure onpromotiondulysubstantiated andacceptedbythetaxauthorities.
Itsvalueasaproportionofthopricodependson,therateofdirecttax
payablebytheexporter ,andmaybeasmuchas0.8 .
>Γ-
Thismeasureisaremissionofdirecttaxwhichconstitutes anexport
. ) '
aid;"thesameconsiderations ,thereforeapplyasforthefirstone.*'.
.ThesematterswerelaidbeforetheAssociation CouncilinJanuary1977
butnodecisionhassofarbeentiaken.InOctoberandDecember1977»however,
a^–s'vivcnli'wasworkedoutbetweenthepartieswithaviewtoremedying
thocumulativemarketdisruptioncausedbyimportsoftheproduotsin
question.
■' ' . _
3*Sincethobeginningof1978»thismoihinvjvendihasbeencalledinto
questionontheGreekside.Atthosametimeanumberoftheagreedlimits ,
havebeenexceededatregionallevol..andtheapriorisurveillance system
revealsthatotherswillbeexceededshortly.
r

Thesedevelopments arocausingtho,I'ombcrStatesconsiderable anxioty,
andseveralofthemhavelodgedformalrequestforlimitsonvariousproducts
originatinginGreece.-TheserequestshaveobligedtheCommissiontocarry
outtheundertakifigo AsrejardsGrcecogiven "to'theCouncilon207)ece:nbcr
1^77andsubsequentlyreaffirmedon6and27June,whenitpromisedtotnko
withoutdelayallappropriatepoliticalandeconomicmeasuresconsonantwith,
thoCommunity'sinternational obligationsinordertoprotecttheinterests 1
.i •• '' . ! v . v ..>rofitstextilesector*
4.However,beforehavingrccourcotothoprovisionsofArticlo53tho.
Coa-niscion madeafinalefforttoresolvethoproblemvithintheU2C-Greece
Association Committeeatameetingwhichtookplaceon30Juno,but.no
•solutionwasreached.; 'i
5*ITornally,the-establishment ofacountervailing /dutyissufficient
todealwithasituationofabnormal .competition# Inthopresentsituation
suchasolutionwouldbe.totallyinadequatebecauseoftechnicaldifficulties
involvedandthoexceptionally larjoquantitiesofimportsconccrnc'..In
thesecircumstances ,tho11103bappropriatecourseofactionistolimitiinpoils
ofproductsoriginatirginGreece,whichispossibleunderArticlo53since
'thetypeofnoasuretoboinvokedi3notspecific^,'• .1•
■Thelimitsmusthoweverboestablished atGuchalevelthatCrcccodoe
notsuffermorethanbythe.applicationofocountervailing duty# ''
Asthelimitsagreodinthemohir;vlvcn.liofDecember1977»which
nxobasedontraditionaltradeflox/s,al»orcproucnt"acceptable"lovclufur
theCommunity,cincotheyaroinlinewith-thopolipyofinlomalglobal
ceilings,'theymootthooriterionstatedabove* .

69.Inviowoftheforegoing,aridinviowofthobreachesalroa.lyrc^intoro^
inrespectofcertainregionalilevelsandrequestsreceivedfromthoT'ember
Statesaffected,thoCommissionha3decidedtousetheprocedureprovidedin
Article12ofRegulation(EEC)NO1439/74tointroducequantitative "restric­
tionsonsomeoftheseimports,byadoptingRegulation(EEC)I858/78.
7.Article12(6)ofRegulation143?/74stipulatesthatwithintenworking
d.-^rsoftheentryintoforceofmeasureswhichithasadoptedunderthat
Article,thoCommissionshallmakeaproposaltotheCouncilonappropriate
measurestobeadoptedbytheCounciltocarryonfromtheCommission's
emergencymeasures.InthisconnectionitispointodoutthatCommissionregu­
lationsadoptedpursuanttoArticle12ofRegulation(EEC)No1/J39/74^xpiro
sixweeksaftertheirentryintoforceunlessconfirmedbytheCouncil.
1'
Accordingly ,theCommissionproposesthattheCounciladopttho
proposalforaregulationsetoutintheAnnex,whichisaimedutconfirming
thomeasuresadoptedbytheCommissionregulationmentionedabove.

ANNEX
PR0P03ALFDRCOUÍJCILRECULATION(SSC)No
maintainingquantitative restrictions ontheimportation
intoBelgium,LuxembourgandtheNetherlandsofcertain ;
textileproduotsoriginatinginGreece.--v---–
THECOUNCILOFTHEEUROPEANCOKMJNITIES ,,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
Havingregardt<>CouncilRegulation(EEC)No1439/74of4June1974onoommon
rulesforimports(l)fandinparticularArticle13thereof,'■c'
Afterconsultation withintheAdvisoryCommitteeestablished byArticle5of
th.itRegulation, :'■. .
/- ',.' -' '''1'\'• '•.*
HavingregardtotheproposalfromtheCommission,
V/hcreasbyRejulation(EEC)Nol858/78f27.7*78(2),theCommissionintroduced
quantitativerestrictions ontheimportationintoBelgium,Luxembourgand
theNetherlandsofcertaintextileproductsoriginatinginGreecej
Whereasthefactorswhichcausedtheserestrictions tobeintroduced3till
persist;whereasitisaccordingly necessai^yforthemtoremaininforce •
until31December1978; ■'.:,. r
HASADOPTEDTHISREGULATION I ' .'„,
(1)OJNo'L159,15.^.1974,p:1
(2)OJNoL212,2.8.1978,p.

-2-
Article1
" \
Thequantitativereotrictions ontheimportationintoBelgium,Luxem­
bourgand.theNetherlandsofcertaintextileproductsoriginatinginGreece,
introducedbyRegulation(ESC)No1858/78challremainapplicableuntil
31December1978» .
Article2
ThisReflationshallenterintoforceon2.8,1978,
♦
ThisRegulationchallbebindinginitsentiretyanddirectIn­
applicableinallMemberStates.
Donoat3rur.eela» FbrthoCouncil
ThePrésident