COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC89) 156 final 
Brussels, 19 April 1989 
Proposal for a 
COUNCIL REGULATION (EEC) 
opening and providing for the administration of a 
Community tariff quota for processing work in respect of 
certain textile products under Community 
outward-processing traffic 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
In an Arrangement (1) concluded with the Swiss Confederation on 
1st August 1969, the European Economic Community undertook to open 
an annual duty-free Conmunity tariff quota of 1 870 000 units of 
accouffit of added value for various kinds of processing work in 
respect of certain textile products under the outward-processing 
traffic arrangements between the Oommunity and Switzerland. 
Under the terms of the memorandum agreed at the time the 
Arrangement was made, this annual tariff quota is divided into 
three categories of processing, based on the quantities recorded 
under the former bilateral Agreements ( concluded with Switzerland 
by France, Germany and Italy), but taking into account the 
possibilities of extending it to Benelux countries. 
On the basis of that division the total quota amount of 1 870 000 
units of account is allocated, in accordance with certain 
amendments, as follows : 
(i) 1 520 000 units of account for processing work on woven 
fabrics falling within Chapter 50 to 57 of the Common Customs 
Tariff ; 
(ii) 123 000 units of account for twisting or throwing, 
re-tatfisting, cablin, texturizing (whether or not combined 
with other processing work) of yarn falling within Chapters 
50 to 57 of the Common Customs Tariff ; 
(iii) 227 000 units of account for processing work on articles 
falling within heading NDS 58.04, 58.05, 58.07, 58.08, 58.09 
and 60.01 of the Common Customs Tariff, subject to the 
setting up of a Community reserve of 230 000 u.a. to be 
drawn from the above quotas, i.e. 160 000 u.a., 13 000 u.a. 
and 57 000 u.a. respectively. 
O.J. No L 240, 24.9.1979 
- 2 -
2. The question whether this Arrangement should continue beyond 31 
August 1977 has been examined on several occasions, notably at the 
meeting of the EEC-Switzerland Joint Committee held on 3 November 
1976, in regard to the quota amounts which should be adopted 
thenceforth, account being taken of the fact that the transitional 
period in the Free Trade Arrangement concluded with Switzerland, 
under which textile products qualifying for Swiss origin status by 
reasons of the processing work they have undergone can enter duty 
free, expired on 1 July 1977. 
The question was reconsidered at the meeting of Joint Committee 
held on 8 May 1979 in order to examine, in the light of the 
experience gained and of the economic information available, the 
adaptation to be made to the Arrangement especially as regards the 
following points : 
reduction to be made to the total quota amount ; 
division of this amount into three categories of processing ; 
allocation of quotas among Member States. 
With regard to the three points raised, the Swiss delegation laid 
stress on the retention of the Arrangements to its memorandum in 
their present form, but agree provisionally to the abolition of 
the division of the total quota amount of 1 870 000 EUA into the 
three categories of processing initially adopted and hence to the 
aggregation of the shares allotted to certain Member States. 
3. The attached proposal for a Regulation therefore serves no other 
purpose than to open, in ECU the tariff quota provided for in the 
Arrangement in question for the period 1 September 198 9 to 31 
August 19 90 and to allocate it among the Member States along the 
lines set out in the Memorandum covering the Arrangement, account 
being taken of the adaptations that have taken place meanwhile/ 
the need to ensure that all Member States share in the tariff 
quota, as well as the judgement of the Court of Justice in case 
51/87. 
Proposal for a 
COUNCIL REGULATION (EEC) 
opening and providing for die administration of a Community tariff 
Quota for processing work in respect of certain textile products under 
Community outward-processing traffic 
THE CO»" :;. ^F THE EUROPEAN COMMUNITIES, 
Having r-».-•-•.' r fhe Treaty establishing the European 
EconomV -r^wnity, and in oarticular Article 113 
thereof. 
Having e proposa! from the Commission, 
Whereas .:• i -.ucust 1969, the Community concluded 
an arrancrvrr nt - :ch Switzerland on processing traffic in 
textiles : - - -« ir irder that arrangement the Community 
undertook or^n, on 1 September of every year, an 
annual ;'. .• Community tariff quota for processed 
goods c" ' ~f •••0 units of account of added value, 
apport*or '; "': ilows: 
(a) ! 6"° r .; of account for processing work on 
woven •• r-LS falling within Chapter 50 to 57 of the 
Com nor. Caroms Tariff ; 
(b) 143 00'' j.~:r< ?' account for the twisting or throwing, 
cabling and tcxturizing (whether or not combined 
with ^ ^ processing work) of yarns falling within 
Chaptt-r. '» "- "7 of the Common Customs Tariff ; 
(c) ??'•}•'•':• -:• -:f account for processing work on 
produL fc'hr.g within heading Nos 58.04, 58.05, 
58.07. "S.CS 58.09 and 60.01 of the Common 
Customs Tsr-ff: ' Euratom) No 3308/80 of 16 December 1980 on the 
replacement of the European unit of account by the ECU 
in Community legal instruments (2) ; 
Whereas provision should be made in particular to ensure 
equal and continuous access for those concerned with this 
quota and consistent application of the rate of duty, pre­
scribed for the said quota until the quota is exhausted, to 
all goods re-imported into any of the Member States and 
which have received one or other of the treatments listed 
above ; whereas, it is appropriate to take the 
necessary measures to ensure efficient Community 
achrinistration of this tariff quota white offe­
ring the Member States the opportunity to draw 
from the quota volume the necessary quantities 
corresponding to actual imports; 
Whereas, since the Kingdom of Belgium, the Kingdom of 
the Netherlands and the Grand Duchy of Luxembourg 
are united within and jointly represented by the Benelux 
Economic Union, all transactions concerning the 
administration of the shares allocated to that economic 
union may be carried out by any one of its members, 
Whereas», in -Her to facilitate administration of this tariff 
quota, it w-- decided no longer to allocate a quota, provi­
sionally, to «ach ->f the above three categories of proces­
sing; -where i? the quota ia question should therefore be 
opened for (.;>e period 1 September 1989 to 31 August 
19Sfc accoMii «; :•-» the procedure provided for under the 
above arr^ng T.ert, as amended and in compliance with 
the provsior> of Council Regulation (EEC) No 2779/78 
of 23 N''v«;:iofr !978 on the procedure for applying the 
Euro pea" ».:'-.'* ^ account (BUA) to legal acts adopted in 
one ci'srnrw «nher* ('), and in particular Article 2 thereof, 
ind '} • p i^r.n* of of Council Regulation (EEC, 
(•) OJ No L Î«\ }n. 11. 1978, p. J. O OJ No L 345, 20. 12. 1980. p. t. 
HAS ADOPTED THIS REGULATION 
Article 1 
1. From 1 September 198 9 to 31 August 1990 the customs duties applicable to re-imports of 
the following products shall be totally suspended within the limit of the Community tariff quota 
shown herewith : 
'Serial No CNrCode Description Volume of 
tariff quota 
09.2502 
5606 00 
5606 00 91 
560600 99 
5801 
5801 10 00 
5801 22 00 
5801 23 00 
5801 24 00 
5801 25 00 
580126 00 
5801 32 00 
580.1 33 00 
5801 34 00 
5801 35 00 
5801 36 00 
580190 . 
5801 90 10 
580190 90 
5802 
5804 
5806 
5808 
6001 
6002 Goods resulting from processing work as provided for in the arrangement 
with Switzerland on processing traffic in textiles as follows: 
(a) processing work on woven fabrics falling within Chapters 50 to 55 of CN 
code 5809 00 00 
(b) twisting or throwing, cabling and texturizing (whether or not combined 
with other processing work) of yams falling within Chapters 50 to 55 or 
CN code 5605 00 00 
(c) processing work on products falling within the following CN codes : 
Gimped yam, and strip and the like of code 5404 or 5405, gimped (other than 
those of code 5605 and gimped horsehair yam) : chenille yarn (including 
flock chenille yam) ; loop wale-yam : 
— Other: 
— — Gimped yam 
Other 
Woven pile fabrics and chenille fabrics, other than fabrics of code 5802 or 
5806: 
— Of wool or fine animal hair 
— Of cotton : 
— — Cut corduroy 
Other weft pile fabrics 
— — Warp pile fabrics, épingle (uncut) 
— — Warp pile fabrics, cut 
— — Chenille fabrics 
— Of man-made fibres : 
— — Cut corduroy 
Other weft pile fabrics 
— — Warp pile fabrics, épingle (uncut) 
— — Warp pile fabrics, cut 
Chenille fabrics 
— Of other textile materials : 
Of flax 
Other ^ 
Terry towelling and similar woven terry fabrics, other than narrow fabrics of 
code 5806; tufted textile fabrics, other than products of code 5703 
Tulles and other net fabrics, not including woven, knitted or crocheted 
fabrics ; lace in the piece, in strips or in motifs 
Narrow woven fabrics, other than goods of code 5807 ; narrow fabrics 
consisting of warp without weft assembled by means of an adhesive (bolducs) 
Braids in the piece ; ornamental trimmings in the piece, without embroidery 
other than knitted or crocheted ; tassels, pompoms and similar articles 
Pile fabrics, including 'long pile' fabrics and terry fabrics, knitted or crocheted 
Other knitted or crocheted fabrics ' 1 870 000 ECU 
of value added 
"Y""hn the same limits» Spain and Portugal shall 
iiToms duties calculated in accordance with the 
. . 'V rhe Act oi .Vcessic;; ant! of the Protocol». 
• : '- re «son of ;hat accession. 
' c^ryose-(*) 'processing work* means : 
Tie purpose*- of paragrr.pi-i and (c) 
bleaching, iycirz pr'nting. flecking, impregna­
ting, dressing an J other work which changes the 
appearance or quality of the ^oods, without 
r:oweve- zlangir . th-ir nature. 
— (- the purposes of p*rw-j»p,h ! (I) : twisting o; 
•:-•*:: ig, cabling and texn»nzing, «.-hether or not 
- yn-v ived with reeling, dyeing or other work 
«hu r changes the atpear«noe. quality or finish of 
.oods, without however changing their nature ; 
(h, V. i- > .*.' means the difference between the value 
for customs purposes as defined in Community Regu­
lations ->n this subject at the time of re-importation 
and ne value for customs purposes as it would be if 
th.- products were re-imported in the state in which 
t.nty were exported. 
4. Re-imports of products, resulting from this proces­
sing wc-k m?y not be charged to the tariff quota if they 
are already free of customs duties under other preferential 
tariff arrangements. 
Article 2 
The tariff quotas referred to in Article 1 shall be administered 
by the Commission, which may take any appropriate 
measure with a view to ensuring the efficient administration 
thereof. said 2. Each Member State shall ensure that importers of the 
products concerned have free access to the quotas for such 
times as the balance of the tariff quota so permits. 
3. Member States shall charge re-importS of the 
products against their drawings as and when the goods are 
entered with the customs authorities under cover of 
declarations of entry into free circulation. 
4. The extent to which the quotas have been used up shall 
be determined on the basis of the imports charged in 
accordance with paragraph 3. 
Article 5 
At the request of the Commission, Member States shall 
inform it of imports actually charged against the quotas. 
Article 3 
If an importer presents in a Member State a declaration of 
entry into free circulation, including a request for preferential 
benefit for a product covered by this Regulation, and if this 
declaration is accepted by the customs authorities, the 
Member State concerned shall draw, from the tariff quota, 
by means of notification to the Commission, a quantity 
corresponding to these needs. 
The requests for drawing, with the indication of the date of 
acceptance of the said declarations, must be communicated 
to the Commission without delay. 
The drawings are granted by the Commission on the basis of 
the date of acceptance of die declaration of entry into free 
circulation by the customs authorities of the Member State 
concerned, to the extent that the available balance so 
permits. 
If a Member State does not use the quantities drawn, it shall 
return them as soon as possible to the tariff quota. 
If the quantities requested are greater than the available 
balance of the tariff quota, allocation shall be made on a pro 
rata basis with respect to the requests. Member States shall be 
informed by the Commission in accordance with the same 
procedures. 
Article 4 
1. Member States shall take all appropriate measures to 
ensure that their drawings pursuant to Article 3 enable 
imports ro be charged without interruption against their 
accumulated shares of the Community quota. Article 6 
The Member States and the Commission shall cooperate 
closely to ensure that this Regulation is complied with. 
Article 7 
This Regulation shall enter into force on 1 Septenfcer 1 
This Regulation shall be binding in its entirety and directly applicable in all Member 
States. 
Done at Brussels, 
For the Council 
The President b 
FICHE FINANCIERE 
1. Ligne budgétaire concernée : Chap. 12 art. 120 
2. Base juridique : art. 113 du traité 
3. Intitulé cke la masure tarifaire : Proposition de règlerrent du 
Conseil portant ouverture et mode de gestion d'un contingent 
tarifaire conmunautaire pour des traitements de certains produits 
textiles en trafic de perfectionnement passif de la Cbninunauté 
4. Objectif : Respecter les engagements de la Communauté 
5. Mode de calcul : 
- No du T.D.C. : divers 
- Volume du contingent : 1 870 000 écus 
- Droit à appliquer : 0 % 
- Droit du T.D.C. : divers (droit moyen 10 %) 
6. Perte de recettes : 
- si utilisation totale du contingent : 
1 870 000 écus x 10 % = 187 000 écus 
- sur base utilisation prévisible : 
300 000 écus à 10 % = 30 000 écus 
(pas d'augmentation des pertes de recettes par rapport à la période 
précédente ). 
Commission of the European Communities 
C0M(89) 156 final 
Proposal for a 
COUNCIL REGULATION (EEC) 
opening and providing for the administration of a Community tariff quota 
for processing work in respect of certain textile products under Com­
munity outward-processing traffic 
(submitted to the Council by the Commission) 
19.4.1989 
Office for Official Publications of the European Communities 
L - 2985 Luxembourg 
Series: DOCUMENTS 
1989 - 7 pp. - Format: 21.0 * 29.7 cm 
EN 
ISSN 0254-1475 
ISBN 92-77-48362-8 
Catalogue number: CB-C0-89-145-EN-C 
ISSN 0254-1475 
COM(89) 156 final 
DOCUMENTS 
Proposal for a 
COUNCIL REGULATION (EEC) 
opening and providing for the administration of a 
Community tariff quota for processing work in 
respect of certain textile products under Community 
outward-processing traffic 
(submitted to the Council by the Commission) 
11 02 
Catalogue number: CB-CO-89-145-EN-C 
ISBN 92-77-48362-8 19.4.1989 
€ 
COMMISSION OF THE EUROPEAN COMMUNITIES