ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)196
Vol.1980/0060

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COMMISSION OFTHEEUROPEAN COMMUNITIES
PROPOSAL FOR ACOUNCIL REGULATION (EEC )
OPENING ,ALLOCATING AND PROVIDING FORTHE ADMINISTRATION
OFACOMMUNITY TARIFF QUOTA FOR PROCESSING WORK
INRESPECT OFCERTAIN TEXTILE PRODUCTS UNDER
COMMUNITY OUTWARD PROCESSING ARRANGEMENTSCOM(80)196 final
Brussels .23rd April 1980
(presented bytheCommission tothe Council )
19/
"x.Vi
■: ,
\C:
V"~\ • '--n /
COM (80)196 final

EXPLANATORY MEMORANDUM
(1)
1.InanArrangement concludedwiththeSwissConfederation on1August1969,
theEuropeanEconomicCommunityundertooktoopenanannualduty-free
Communitytariffquotaof1870000unitsofaccountofaddedvaluefor
variouskindsofprocessing workinrespectofcertaintextileproducts
undertheoutward-processing trafficarrangements betweentheCommunity
andSwitzerland .
Underthetermsofthememorandum agreed*atthetimetheArrangement was
made,thisannualtariffquotaisdividedintothreecategoires ofpro­
cessing,basedonthequantities recordedundertheformerbilateral
agreements (concludedwithSwitzerland byFrance,GermanyandItaly),
buttakinginto^accountthe'possibilitiesofextendingittotheBenelux
countries.
Onthebasisofthatdivisionthetotalquotaamountof1870000units
ofaccountisallocated,inaccordance withcertainamendments,asfollows:
<i)1520000unitsofaccountforprocessing workonwovenfabricsfalling
withinChapters50to57oftheCommonCustomsTariff;
(ii)123000unitsofaccountfortwistingorthrowing,re-twisting,
cabling,texturizing (whetherornotcombinedwithotherprocessing '
work)ofyarnsfallingwithinChapters50to57-oftheCommon
CustomsTariff;
1
(iii)227000unitsofaccountforprocessing workonarticlesfalling
withinheadingsNos58.OA,58.05,58.07,58.08,58.09and60.01
NoftheCommonCustomsTariff,subjecttothesettingupofa
Communityreserveof230000u.a.tobedrawnfromtheabove
quotas,i.e.160COOu.a.,13000u.a.and57000u.a.respectively .
(1)GUN.L240,24.9.1979.

-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 anditsMemorandum intheir
presentform,butagreeprovisionally totheabolitionofthedivision
ofthetotalquotaamountof1870000EUAintothethreecategories
ofprocessinginitiallyadoptedandhencetotheaggregation ofthe
sharesallottedtocertainMemberStates.
3.TheattachedproposalforaRegulationthereforeservesnootherpurpose
thantoopen,inEuropeanunitsofaccount,thetariffquotaprovidedfor
intheArrangement inquestionfortheperiod1September1980to
31August1981andtoallocateitamongtheMemberStatesalongthe
linessetoutintheMemorandumcoveringtheArrangement,account
beingtakenoftheadaptationsthathavetakenplacemeanwhileandof
theneedtoensurethatthenewMemberStatesfehareintheallocation
ofthistariffquota.

PROPOSAL FOR
COUNCILREGULATION EEC)
opening,allocatingandprovidingfortheadministration ofaCommunitytariff
quotaforprocessingworkinrespectofcertaintextileproductsunderCommu­
nityoutwardprocessingtraffic
1
THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinpart;~ularArticle113
thereof,
HavingregardtotheproposalfromtheCommission ,
Whereason1August1969theCommunity
concludedanarrangement withSwitzerlandon
processingtrafficir\textiles;whereasunderthatarran-.
gementtheCommunityundertooktoopenon1
Septemberofeveryyearanannualduty-freeCommu­
nitytariffquotaforprocessedgoodsof1870000Euro­
peanunitsofaccountofaddedvalue,apportionedas
follows:
(a)1650000Europeanunitsofaccountfor
processingworkonwovenfabricsfallingwithin
Chapters50to57oftheCommonCustoms
Tariff;
(b)143000Europeanunitsofaccountforthetwisting
orthrowing,cablingandtexturizing(whetheror
notcombinedwithotherprocessingwork)of
yarnsfallingwithinChapters50to57ofthe
CommonCustomsTariff;
(c)77000Europeanunitsofaccountforprocessing
workonproductsfallingwithinheadingNos
58.04,58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
Whereas,inorderto-facilitateadministration of-this
tariffquota,itwasdecidednolongertoallocatea
quotaprovisionallytoeachoftheabovethreecatego­
riesofprocessingwhereasthequotainquestion
shouldthereforebeevenedfortheperiodfrom1
September1980te3!August1981accordingtothe
procedureprovidedforundertheabovearrangement
asamendedandincompliancewiththeprovisionsof
CouncilRegulation (EEC)No.2779/78of23
November1978ontheprocedureforapplyingtheEuropeanunitofaccount(EUA)tolegalactsadopted
inthecustomssphere('),andinparticularArticle2
thereof;
Whereasprovisionshouldbemadeinparticularto
ensureequalandcontinuousaccessforthose-
concernedwiththisquotaandconsistent "application
oftherateofdutyprescribedforthesaidquotauntil
thequotaisexhausted,toallgoodsreimportedinto
anyoftheMemberStatesandwhichhavereceived
oneorotherofthetreatmentslistedabove;"whereas
inthelightoftheseprinciplesarrangements forthe
utilizationofthequotabasedonanallocationamong
theMemberStateswouldseemtobeconsistentwith
theCommunitycharacterofthesaidquota;whereas,
itthereforeseemsappropriatetomaketheallocation
onthebasisoftheamountofthetrafficunderthe
previousbilateralagreements,butwithoutprecluding
participation byMemberStatesnotpreviously
involvedinsuchtraffic,^mongwhichthenew
MemberStatesareincluded;whereas,tosafeguardthe
Communitycharacterofthequota,provisionshould
bemadetomeetrequirementswhichm?.yarisein
thoseMemberStatespermittingthemtodraw
adequateamountsfromtheCommunityreserve;
Whereastotakeaccountoffuturetrendsinthetraffic
inquestioninthevariousMemberStates,thetotal
quotavolumeof1870000Europeanunitsofaccount
sh6uldbedividedintotwoinstalments ,thefirstbeing
allocatedamongcertainMemberStatesandthe
secondheldasareservetocoverthesubsequent
requirements ofMemberStateswhenoneoftheir
initialshareshasbeenexhaustedandalso,require­
mentswhichmayariseincertainMemberStatesin
respectofprocessingworkforwhichnoinitialshare
ofthequotawasallocated;whereasinordertogive
thepartiesconcernedineachMemberStatesome
degreeofcertaintyitwouldseemappropriatetofix
thefirstinstalmentoftheCommunityquotaatarela­
tivelyhighlevel,nemely1640000Europeanunitsof
account :
(')OJNoL333,30.11.1978,p.S.

-2-
"7
WhereastheMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruption
ofsuppliesonthisaccountitshouldbeprovidedthat
anyMemberStatewhichhasalmostuseduponeofits
initialsharesshoulddrawanadditionalsharefromthe
reserve;whereaseachtimeitsadditionalshareis
almostexhausted aMemberStateshoulddrawa
furthershare,andsoon,asmaytimesasthereserve
allows;whereastheinitialandadditionalshares
shouldbevaliduntiltheendofthequotaperiod;
.whereasthisformofadministration requiresclose
collaboration betweentheMemberStatesandthe
Commission ,andtheCommissionmustbeinaposi­
tiontokeepaccountoftheextenttowhichthequota
hasbeenusedupandtoinformtheMemberStates
accordingly ;
Whereasifatagivendateduringthequotaperioda
considerablequantityofaMemberState'sinitialshare
remainsunuseditisessential,topreventapartofthe
Communitytariffquotafromremainingunusedin
oneMemberStatewhileitcouldbeusedinothers,
thatsuchStateshouldreturnasignificantpercentage
thereoftothecorresponding reserve;
Whereas,sincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourgareunitedinandjointlyrepresentedby
theBeneluxEconomicUnion,anytransactionin
connectionwiththeadministration ofthesharesallo­
catedtothatEconomicUnionmaybecarriedoutby.
anyoneofitsmembers,
HASADOPTEDTHISREGULATION :
Article1
1.Asfrom1September1980an^until31August
i98,aCommunitytariffquotaof1870000Euro­
peanunitsofaccount(EUA)ofvalueaddedshallbe
openedinrespectofgoodsresultingfromprocessing
workasprovidedforinthearrangementwithSwitzer­
landonprocessingtrafficintextilesasfollows:
(a)processingworkonwovenfabricsfallingwithin
Chapters50to57oftheCommonCustoms
Tariff;
(b)twistingorthrowing,cablingandtexturizing
(whetherornotcombinedwithotherprocessing
work)ofyarnsfallingwithinChapters50to57of
theCommonCustomsTariff;
(c)processingworkonproductsfallingwithinthe
followingheadingsoftheCommonCustoms
Tariff:
58.04Wovenpilefabricsandchenillefabrics
(otherthanterrytowellingorsimilarterry
fabricscicottonfallingwithinheadingNo
55.0SanufabricsfallingwithinheadingNo
58.05);58.05Narrowwovenfabrics,andnarrowfabrics
(bolduc)consistingofwarpwithoutweft
assembledbymeansofanadhesive,other
thangoodsfallingwithinheadingNo
58.06;
58.07Chenilleyarn(includingflockchenille
yarn),gimpedyarn(otherthanmetallized
yarnofheadingNo52.01andgimped
horsehairyarn);braidsandornamentaltrim­
mingsinthepiece;tassels,pomponsand
thelike;
58.08Tulleandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),plain(a);
58.09Tulleandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),figured;handormechanically
madelace,inthepiece,instripsorin
motifs;
60.01Knittedorcrochetedfabric,notelasticnor
rubberized .
2.ForthepurposesofthisRegulation :
(a)'processingworkrneans:
–forthepurposesofparagraph 1(a)and(c):
bleaching,dyeing,printing,flocking,impreg­
nating,dressingandotherworkwhichchanges
theappearanceor-qualityofthegoods,without
howeverchangingtheirnature,
•–forthepurposesofparagraph 1(b):twistingor
throwing,cablingandtexturizing,whetheror
notcombinedwithreeling,dyeingorother
workwhichchangestheappearance ,qualityor
finishofthegoods,withouthoweverchanging
theirnature;
(b)'valueadded'means:thedifferencebetweenthe
valueforcustomspurposesasdefinedinCom­
munityregulations onthis
Subject atthetimeofre-importa-
tionandthevalueforcustomspurposesasit
wouldbeiftheproductswerere-importedinthe
stateinwhichtheywereexported.
3.Withinthistariffquota,theCommonCustoms
Tariffduties-shallbetotallysuspended .
4.Reimportsofproductsresultingfromthis
processingworkmaynotbechargedtothetariff
quotaiftheyarealreadyfreeofcustomsdutiesunder
otherpreferentialtariffarrangements .
Article2
1.ThetariffquotareferredtoinArticle1(1)shall
bedividedintotwoinstalments .
Thefirstinstalment,1640000Europeanunitsof
account,shallbeallocatedassetoutbelowamongthe

-3-
MemberStateslistedin(heabovearrangement ;the
shares,subjecttoArticle6,shallbevalidfromI
September198Qo31December1981:
(mEurotuan
Bénélux
FédéralRepublic
ofGcrmany
France
Italyunitsofaccount)
20000
1080000
520000
20000
2.Thesecondinstalment whichamountsto
230000Europeanunitsofaccountshallconstitutea
Community reserve.Artide6
TheMemberStatesreferredtoinArticle2(1)shall,
notlaterthantJuly198r]returntothereservethe
unusedportionoftheirinitialsharewhich,on15
June1980^isinexcessof20%oftheinitialamount.
Theymayreturnagreaterportioniftherearegrounds
forbelievingthatitmaynotbeusedinfull.
MemberStatesshallnotlaterthan1July198(1notify
theCommission ofthetotalquantitiesoftheproduct
inquestionre-importeduptoandincluding15June
1980andchargedagainsttheCommunity quotaand
ofanyportionoftheirinitialquotareturnedtothe
Article3
Incaseofrteediri<thenewMemberStatestheState
concernedshall,totheextentthatthereserveso
permits,drawfromsuchreserveasufficientshareof
thequota.
Article4
1.IfaMemberStatehasused90%ormoreofits
initialshareasfixedinArticle2(1),orthatshare
minusanyportionreturnedtothereservepursuantto
Article6,itshallforthwith,bynotifyingtheCommis­
sion,drawasecondshare,totheextentthattherele­
vantreservesopermits,equalto10%ofitsinitial
share,roundedupasnecessarytothenextwhole
number.Article7
TheCommission shallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3
and4arklshall,assoonastheinformation reachesit,
informeachMemberStateoftheextenttowhichthe
reservehasbeenusedup._
Itshall,notlaterthan5July1981,informthe
MemberStatesoftheamountsstillinreserve
followinganyreturnofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingthis
reserveisdrawntheamountsodrawndoesnotexceed
thebalanceavailable,andtothisendshallnotifythe
amountofthatbalancetotheMemberStatemaking
thelastdrawing.
2.IfaMemberState,afterexhaustingitsinitial
share,hasused90%ormoreofthesecondshare
drawnbyit,thatMemberStateshall,inaccordance '
withtheconditionslaiddowninparagraph 1,drawa
thirdshareequalto5%ofitsinitialshare.
3.IfaMemberState,afterexhaustingitssecond
share,hasused90%ormoreofthethirdsharedrawn
byit,thatMemberStateshall,inaccordancewiththe
samecondition,drawafourthshareequaltothethird.
Thisprocessshallcontinuetoapplyuntilthereserve
isexhausted .
4.Bywayofderogationfromparagraphs 1,2and
3,aMemberStatemaydrawshareslowerthanthose
specifiedinthoseparagraphsiftherearegroundsfor
believingthatthosespecifiedmaynotbeusedinfull.
AnyMemberStateapplyingthisparagraphshall
informtheCommission ofitsgroundsforsodoing.
V.V'Artide5
vV..vv-jsjrsijvwKv4shailbc /ν,ν
V»\".un.'ii>1S.it-i.-s;.Article8
1.MemberStatesshalltakeallappropriate
measurestoensurethatadditional sharesdrawn
pursuanttoArticle4areopenedinsuchawaythat
re-importation maybechargedwithoutinterruption
againsttheiraccumulated sharesoftheCommunity
tariffquota.
2.EveryMemberStateshallensurethatallpersons
establishedinitsterritoryinvolvedintheprocessing
traffichavefreeaccesstoihesharesallocatedtoit.
3.TheextenttowhichaMemberStatehasusedup
itssharesshallbedetermined onthebasisofthevalue
added,asestablishedwhenuponre-importation the
productsconcernedareenteredwiththecustoms
authoritiesforfreecirculation .
»Article9
AttherequestoftheCommission ,theMemberStates
shallif-rcmjitoranvts-impcrabcris ortheproducts
stti 3««j*rsc shucs..

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Article10 Article11
ThisRegulationshallenterintoforceon1September
1980.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,
FortheCouncil
ThePresidentMemberStatesandtheCommissionshallcooperate
closelytoensurethatthisRegulationiscomplied
with.