ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)269
Vol.1978/0100

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(78)269final.
Brussels,19June1978
Proposalfora
COUNCIL REGULATION (EEC)
ontheopening,allocationandadministration ofaCommunity
tariffquotaforprocessingworkinrespectofcertaintextile
productsunderCommunityoutwardprocessingarrangements
(submittedtotheCouncilbytheCommission)
COM(78)269final.

EXPLANATORY MEMORANDUM
InanArrangement .ooncluded with "theSwiss Federation on1August 19©9f -
theEuropean Eoonomio Community undertook "toopen anannual duty free /'
Community tariff quota of1,870,000 units ofaooount ofadded value on
various kinds ofprocessing work forcertain textile produots inoluded int&4 ,
outward processing traffio oftheCommunity t©Switzerland * ■ ■ .
' ■+■ '•*•
Under thoterms ofthememorandum agreed atthetime theArrangement was '•
made ,this annual tariff quota isdivided into three categories ofpro– "
ceasing ,"based onthequantities recorded under theformer "bilateral agree .–••
inents (ooncluded with Switzerland byFrance ,Germany andItaly ),Tauttaking
into aooount thepossibilities ofoxtonding ittotheBenelux countries *;..
Onthebasis «fthat division thetotal quota amount of1,870,000 units of ./•'
aooount io nafollowoi
a) vmltd ofaccount forprocooaing work onwoven fabrics falling '
within Chapters 50 "to57oftheCommon Customs Tariff j
b)143,000 units ofaccount fortwisting orthrowing ,re–twisting cabling ,V
tojeturizing (whethor ornotoombined with ©ther processing work )ofymra«
falling within Chapters 50to57ofthoCwmmen Customs Tariff ;
o)77|000 units ofaooount forprooosoing work onartiolos falling withia' -.\
headings 50*O4i 58«05,5&*07 «53*08 ,58*09 and60*01 ofthoCommon'
CustociS Tariff .
OJNoL240/24September 1969 .

Attheroquect oftheSwiss authorities endso -that tnedivision ,ofthe
whole quota ,into 'tho -throe catssorioa ofproooaoins referred toabove should
"be "bettor related totheaotx^V movement 'ofstrade "during thereference year
which 6erved aathebasis forcalculating thetotal amount ofthequota and
trade movocnonta during recent quota periods orforeseeable movements ,itvas
decided tomake oortain transfers between thethree quota amounts of
whioh thof:>nalonewas 150,000 u.a.,transferring from thefigure alloca­
tedforprocesainff work onartiolos (category C)to'that setaside for
processing work onwoven fabrics falling within ChaptorD 5®to57-Simi­
larly andinorder toallow Access tothetariff quota ,itwasdecided that^ – 4 -
theCoiiKiunity reoorves Ghould boamalgamated andthat intnns waythenew
recurve could cover alltypes ofprocessing vo^k regardless ofthe cate­
gory they oomo undoi *.
.••• •f.. • . .• /• . • .. ,
Thototal quota n.-iovuit of1,o70,000 u.a.would beallocated among thothroe
categories asfollows j'
-1,(520,000 u.a ,forprocessing operations onwoven fabrios falling within
• »
Chapters £0to57ofthoCommon Customs Tariff : •■ .
-123,000 u.a .forprocessing operations onwoven fabrioe falling within
Chaptoya 50to57oftheCCTj
•-227,000 u.a .forprocessing woyk onarticles falling within headings
53.04 to60.01 oftheCCT .subject tothesetting upofaCommunity re~
ecrvo of2?.0,000 u.a ,tobodrawn from thoabove amounts ,that is160,000
u.a.,13.COOu.a ,and -57j000 u.a.reepootivoly .
'• ' ■• >. «• -• t• , • »• t' r y *
Thequestion whether this Arrangement should continue beyond 31August 1977
hasbeen examined onseveral occasions ,notably atthemeeting oftheJoint
EEC-Swiss Commission held on3November 1976 ,inregard tothequotas which
should beadopted thenceforth ,account being taken ofthefact that the
transitional period intheFree Trade Agreement concluded with Switzerland ,
under which textile goods qualify forSwiss origin status byreason ofthe
processing work they have undergone andcanenter futy~free ,expires on
1July 1977 .

3
Until such time astheeconomic data required forcalculating these
quotas areavailable ,ithasbeen decided bycommon accord purely and
simply torenew thecurrently open quotas foratransitional period ,
during which time thecontracting parties will endeavour toobtain
therequired data .
Thedata currently available donot yetpermit arough estimate tobe
formed ofthe size ofthereduction tobemade inthequota amounts .
Itistherefore proposed that thetariff quota opened fortheperiod
upto31August 1978 berenewed for afurther year .
i
5.Theannexed proposal foraRegulation therefore serves noother t
purpose than toopen thetariff quota provided for intheArrangement
concerned fortheperiod between 1September 1978 and 31August 1979 ,
andtoallocate itamong theMember States along the lines setout in
theMemorandum covering this Arrangement ,account being taken ofthe 1
changes occurring meanwhile andoftheneed toensure that thenew
Member States share intheallocation ofthis tariff quota .
Thoproposal foraRegulation onnoxed hareto provides for "theadministration
ofthoquota bythosystem ofprior allocation andthat the maxisvuza araount
returned tothoreserve shall be2C6&oftheinitial share * •

ΑϊϊΤΤΞΧ
Proposalfora
REGULATION (EEC)OFTHECOUNCIL
ontheopening,allocationandadministrationofaCommunitytariffquotafor
processingworkinrespectofcertaintextileproductsunderCommunity
outwardprocessingarrangements
THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle113
thereof;tradeduringfuturequotaperiods,ithasbeendecided
toadjustthesaidallocationbetweenthethreecatego­
riesbygivingthem1520000,123000and227000
unitsofaccountrespectively;whereastheCommu­
nitytariffquotainquestionshouldbeopenedforthe
periodISeptember1978to31August1979
accordingtotheprovisionslaiddowninthearrange­
mentspecifiedabove,andinamendmentstoit;
HavingregardtotheproposalfromtheCommission ;
Whereason•IAugust196VtheCommunity
concludedanarrangement 'villiSwitzerlandon
piocessingtrafficintextiles;whereastinderthatarran­
gementtheCommunityundertooktoopenonI
SeptemberofeveryyearanannualdutyfreeCommu­
nitytariffquotaforprocessedgoodsof1870000
unitsofaccountofaddedvalue,apportionedas
follows:
(a)Iti.W000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
(l>)14.1000unitsofaccountforthetwistingor
throwing,cablingandtcxturizing(whetheror'not
combinedwithotherprocessingworks)ofyarn*
fallingwithinChapters50to57oftheCommon
CustomsTariff;
«
(c)77000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
'58.07,58.OK,58.09and60.01oftheCommon
CustomsTariff;
whereas,inorderthatthedivisionofthewholequota
intothothreecategoriesreferredtoaboveshallcorres­
pondmoreexactlywiththeactualmovementoftrade
duringihcreferenceyearorduringpreviousquoin
|H*riodsoswellaswiththeforeseeablemovementofWhereasprovisionshouldbemadeinparticularto
ensureequalandcontinuousaccess,forthose
concernedwiththisquotaandconsistentapplication
oftherateofdutyprescribedforritesaidquotauntil
thequotaisexhausted,toallgoodsre-importedirito
anyoftheMemberStatesandwhichhavereceived
oneorotherofthetreatmentslistedabove;whereas
inthelightoftheseprinciplesarrangements forthe
utilizationofthequotabasedonanallocationamong
theMemberStateswouldseemtobeconsistentwith
theCommunitycharacterofthesaidquota;whereas,
itthereforeseemsappropriatetomaketheallocation
onthebasisof(heamountofthetrafficunderthe
previousbilateralagreements,butwithoutprecluding
participation byMemberStatesnotpreviously
involvedinsuchtraffic,amongwhichthenew
MemberStatesarcincluded;whereas,tosafeguardthe
Communitycharacterofthequota,provisionshould
bemadetomeetrequirementswhich'mayarisein
thoseMemberStatesinthefuturepermittingthemto
drawadequateamountsfromtheCommunityreserve;
whereastotakeaccountoffuturetrendsinthetraffic
inquestioninthevariousMemberStates,thetotal
quotavolumeofI870000unitsofaccountshouldbe
dividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesanilthesecondheldas'
areservetocoverthesubsequentrequirements of
MemberStateswhenoneoftheirinitialshareshave1
beenexhaustedandalso,requirement !!whichmay
ariseincertainMemberStatesinrespectofprocessing
workforwhichnoinitialshareof(hequotawasalio*
cMed;whereasinordertogivethepartiesconcerned

-2-
ineachMcmlvrStatesomedegreeofcertaintyit
would'seemappropriatetofixthefirsttrancheofthe
Communityquotaatarelativelyhighlevel,namely
1640000unitsofaccount;whereasthetotalC^ommu-
inlyreserveof2.10000unitsofaccountshallconsist
ofamnunt>drawnfromtheallocationsinrespectof
eachcatci?',i'y.thatis16'iOOO,1.1000and.57000
-un'itsolrif'.-ountrespectively;
VCherf.i;theMemberStates'mayexhausttheirinitial
sharesMditferentrates;whereastoavoiddisruption
cl«uppiic.sonthisaccountitshouldbeprovidedthat
.my1MemberStalewhichhasalmostuseduponeofits
initialsh.ircsshoulddrawanadditionalsharefrom(he
reserve;whereaseachliriieitsadditionalshareis
almor>texhausted -aMemberStateshoulddrawa
'furthershare,andsoon,asmanytimesasthereserve
allows;whereastheinitialandadditionalshares
shouldl:rvaliduntiltheend-ofthequotaperiod;
whereatthisformofadministration requiresdose
colhboia'.ion betweentheMemberStatesandthe
ComivwsMqn,ondtheCommissionmustbeinaposi­
tiontokeepaccountoftheextenttowhichthequota
hashernusedupandtoinformtheMemberStates
accordingly ;
Whereasifatagivendateduringthequotaperioda
considerablequantityofaMemberState'sinitialshare
remainsunuseditisessentia!,topreventapartofthe
quotafromremorningunusedinoneMemberState
whileitcouldbeusedinothers,thatsuchState1
shouldreturnasignificantproportionthereoftothe
reserve;
■Whereas,sincetheKingdom'ofBelgium,the'
KingdomoltheNetherlandsandtheGrandDuchyof.
lAixcnil/Ourgareunitedinandjointlyrepresentedby
theBeneluxEconomicUnion,anytransactionin
connectionwiththeadministration ofthesharesnllo-
cntedtothatEconomicUnionmaybecarriedoutby
nnyoneofitsmembers,
HASADOPTEDTHISREGULATION :
Articlef
!«
to,rom1SeptemberIV^anduntil.11August
IV79,aCommunitytariffquotaofI870000unitsof
accountofvalueadded.shallbeopenedintheEuro­
peanUconomicCommunityinrespectofgoods
resultingfromprocessingworkasprovidedforinthe
ArrangementwithSwitzerlandonprocessingtrafficin
tcxiilcvSuchquotashallbeapportionedasfollows:
(a)I<20000tmifoofaccountforprocessingworkon
wovenfabricsfailingwithinChapters50tosiof■
theCommonCustomsTariff;
(b)12.1000unitsofaccountfortwistingorthrowing,'
cablingandtexturi/.ing(whetherornot(Combined
withotherprocessingwork)ofyarnsfallingwithin
^•apters50tu57oftheCommonCustomslariff;(c)227000unitsofaccountforprocessingworkon
articlesfallingwithinthefollowingheadingsof
theCommonCustomsTariff:
58.04Wovenpilefabricsandchenillefabrics
(otherthanterrytowellingorsimilarterry
fabricsofcottonfallingwithinheadingNo
/ ■'55.08andfabricsfailingwithinheadingNo
58.05);
58.05Narrowwovenfabrics,andnarrowfabrics
(bolduc)consistingofwarpwithoutweft
assembledbymeans/ofanadhesive,other
.thangoodsfailingwithinheadingNo
58.06;
58.07Chenilleyarn(includingflockchenille
yarn),gimpedyarn(otherthanmetallized
,yarnofheadingNo52.01andgimped
horsehairyarn);braidsandornamentaltrim­
<mingsinthepiece;tassels,pomponsand
•thelike; /.
58.08Tulleandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),plain(a);
58.09Ttille-andothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),figured;handormechanically
madelacc,inthepiece,instripsorin
motifs;
.60.01Knittedorcrochetedfabric,notclasticor
rubberized. <■•'. :
2.Forthepurposesofthis.Regulation:
(a)'proccssingwork*mcans:
–forthepurposesofparagraph I(a)and(c):
bleaching,dyeing;printing,flocking,impreg­
nating,dressingandotherworkwhichchanges
theappearanceorqualityofthegoods,without
howeverchangingtheirn.mire;
•forthepurposesofparagraphI(b):twistingor
throwing,cablingandtexturizing,whetheror
notcombinedwithreeling,dyeingorother
workwhichchanges(heappearance,qualityor
finishofthegoods,withouthoweverchanging
theirnature;
(b)valueaddedmeans:thedifferencebetweenthe
valueforcustomspurposesasdefinedinRegula­
tion(EEC)No80.1/68(')atthetimeofre-importa-
tionandthevalueforcustomspurposesasit
wouldbeiftheproductswerere-importedinthe
stateinwhichtheywereexported,
.1.Eachportionaslaiddowninparagraph 1shall
bedividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesinaccordancewith
Article&-andthesecond,beingusedtoconstitutea
reservewhichshallbecommontothethreecategoriesofprocessing.
(')OJNoLMK,2H.fi.|V6H,

-3-
4.'Withinthistariffquota,theCommonCustoms
Tariffdutiesshallbetotallysuspended.
5.Reir,-.portsofproductsresultingfrom
thisprocessing workmaynotbechargedto
thetariffquotaiftheyarealreadyfree
ofcustomsHuti®sunH®rotherpreferential
tariffarrangements .
Artide2
1.Thefirsttrancheofeachportionofthequotaas
laiddowninArticleI(I)shallbeallocatedassetout(
belowamongtheMemberStateslistedintheabove
arrangement;theshares,subjecttoArticle6,shallbe
validfromISeptember1978to31August19^9».
(a)Germany:
I080000
foilows:unitsofaccount,apportioned as
»–8.M)000unitsofaccountforprocessingwork
onwovenfabricsfallingwithinChapters50to
57oftheCommonCustomsTariff;
100000unitsofaccountfortwistingor
throwing,cablingandtexturizing(whetheror
notcombinedwithotherprocessingwork)of
yarnsfallingwithinChapters50to57ofthe
CommonCustomsTariff;
–130000unitsofaccountforprocessingwork
onproductsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
(b)France:
520000unitsofaccount,apportionedasfollows!'
–501)000unitsofaccountforprocessingwork
onfabricsfallingwithinChapters50to57of
ti»eCommonCustomsTariff;
–20000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,
5!«.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
»
(c)Italy:
20000unitsofaccount,i.e.halffortwistingor•
throwing,cablingandtexturizing(whetherornot
combinedwithotherprocessingwork)ofyarns
fallingwithinChapters50to57oftheCommon
CustomsTariff,andhalfforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.0Vand60.01oftheCommon
CustomsTariff;
(ci)Hcnclux: •
20000unityofaccountforprocessingworkon
threadsandwovenfabricsfallingwithinChapters50to57orforproductsfallingwithinheading
Nos58.04,58.05,58.07,58.08,58.09and60.01ol
theCommonCustomsTariff.
2.Thesecondtranchewhichamountsto230000
unitsofaccountshailconstituteaCommunityreserve
whichmaybeusedforthethreecategoriesof
processing .
Article3
Incaseofneed,eitherinFranceinrespectofthe
processingworkreferredtoinArticleI(1)(b),orin
anyofthenewMemberStatesinrespectofanyofthe
categoriesofprocessingwork,theStateconcerned
shall,totheextentthatthereservesopermits,draw
fromsuchreserveasufficientshareofthequota.
Article4~
1.IfaMemberStatehasused90%ormoreofone
ofitsinitialsharesasfixedinArticle2(1).orofthat
shareminusanyportionreturnedtothereserve
pursuanttoArticle6,itshallforthwith,bynotifyin.,
theCommission drawasecondshare,totheextent
thattherelevantreservesopermits,equalto10%of
itsinitialshare,roundedupasnecessarytothenext
wholenumber.
2.IfaMemberState,afterexhaustingoneofits
initialshares,hasused90%ormoreofthesecond
sharedrawnbyit,thatMemberStatesshall,inaccor­
dancewiththeconditionslaiddowninparagraph I,
drawathirdshareequalto5%ofitsinitialshare.
3.IfaMemberState,afterexhaustingitssecond
share,hasused90%ormoreofthethirdsharedrawn
byit,thatMemberStateshall,inaccordancewiththe
samecondition,drawafourthshareequaltothethird.
Thisprocessshallcontinuetoapplyuntilthereserve
isexhausted.
4.Notwithstanding paragraphs Ito3,aMember
Statemaydrawshareslowerthanthosespecifiedin
thoseparagraphsiftherearegroundsforbelieving
thatthosespecifiedmaynotbeusedinfull.Any
MemberStateapplyingthisparagraphshallinform
theCommissionofitsgroundsforsodoing.
ArtideJ
AdditionalsharesdrawnpursuanttoArticle4shallbe
validuntili\August1V79#

¿Anide6 .
TheMemberStaffsreferredtoirtArticle2shall,not
laterthanlJuly-•97?-return10,lvrr«crvethc
unusedportionoftheirinitialsharewhich,on15Junt'
1979jsinexcessof20%oftheinitialvolume.They
mayreturn-agreaterportioniftherearcgroundsfor
believingthatitmaynotbeusedinfull.
MemberStatesshallnotlaterthan1July1979notify.
theCommissionofthetotalquantitiesoftheproduct
inquestionre-importeduptoandincluding15Juni
19#andchargedagainsttheCommunityquotaand
ofanyportionoftheirinitialquotasreturnedtothe
.reserve. .■•'. 11
Arîkie7
TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3
and4andshallassoonastheinformationreachesit,
informeachStateoftheextenttowhichthereserve
liasbeenusedup..'
itshall,notUntrthan5July597.9,informthe
MemberStatesoftheamountsstiliinreserve
followinganyreturnofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingthis--
reserveisdrawntheamountsodrawndoesnotexceed
thebalanceavailable,andtothisendshallnotifythe
amountofthatbalancetotheMemberStatemaking
thelastdrawing.. *,.-.
Artide8
».•
l..MemberStates'shalltakeaUappropriate
measure*toensurethatadditionalsharesdrownpursuanttoArticle4areopenedinsuchawaythat
re-imporutiort maybechargedwithoutinterruption
againsttheiraccumulatedsharesofthequota.
?..EveryMemberSlateshalladministeritsshares
byasystemofpriorallocation.Itshallensurethatall
personsestablishedinitsterritoryinvolvedin,'he
processingtraffichavefr^eaccesstothesharesallo­
catedtoit.
3.Th£extenttowhichaMemberStatehasusedup
itssharesshallbedeterminedonthebasisofthevalue
added,asestablishedwhenuponre-importation the
productsconcernedareenteredwiththecustoms
authoritiesforhomeuse. ...
Artide,9:.
AttherequestoftheCommission ,theMemberStates
shallinformitofre-importations chargedagainst
theirslures,
sArtideIO\
* i
MemberStatesandtheCommission shallcooperate
closelytoensurethatthis'Regulationiscomplied
'with. '
14\
i''ΑηίίίϊΠ
ThisRegulationshallenterintoforceon1September
1978. "'i
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States. .' ,i• \
•*
:vt*.Bruueiji"
'·<·ν·^·'"·,
V-·'·-·ί.:.;.ν..»,Γ*».
ίν'V *'
*11.^A:
FortheC<>i<liai*