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
Date: 1989-04-19
Institutions: European Commission
Subjects: outward processing, tariff quota, textile product

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 
Quota  for  processing  work 

and  providing  for  die  administration  of  a  Community  tariff 
textile  products  under 

in  respect  of  certain 

Community  outward-processing  traffic 

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 
the 
administration  of  the  shares  allocated  to  that  economic 
union  may  be  carried  out  by  any  one  of  its  members, 

transactions  concerning 

THE  CO»" 

:;.  ^F  THE  EUROPEAN  COMMUNITIES, 

Having  r-».-•-•.' 
EconomV 
thereof. 

r 

fhe  Treaty  establishing  the  European 
-r^wnity,  and  in  oarticular  Article  113 

Having 

e  proposa!  from  the  Commission, 

.:• 

Whereas 
i  -.ucust  1969,  the  Community  concluded 
an  arrancrvrr  nt  -  :ch Switzerland  on  processing  traffic  in 
irder that arrangement  the  Community 
textiles : -  -  -«  ir 
or^n,  on  1  September  of  every  year,  an 
undertook 
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 
fc'hr.g  within  heading  Nos  58.04,  58.05, 
produL 
58.07.  "S.CS  58.09  and  60.01  of  the  Common 
Customs  Tsr-ff: 

' 

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, 
i^r.n*  of  of  Council  Regulation  (EEC, 
ind 

'} •  p 

(•)  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 

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 : 

5606 00 

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: 

5606 00 91 

— —  Gimped  yam 

560600 99 

Other 

5801 

Woven  pile  fabrics  and  chenille  fabrics, other  than  fabrics  of  code  5802 or 
5806: 

1 870 000  ECU 
of  value  added 

5801  10 00 

—  Of  wool  or  fine  animal  hair 

—  Of  cotton : 

5801 22 00 

— —  Cut  corduroy 

5801 23 00 

Other  weft  pile  fabrics 

5801 24 00 

— —  Warp  pile  fabrics,  épingle  (uncut) 

5801 25 00 

— —  Warp  pile  fabrics,  cut 

580126 00 

— —  Chenille  fabrics 

—  Of  man-made  fibres : 

5801 32 00 

— —  Cut  corduroy 

580.1 33 00 

Other  weft  pile  fabrics 

5801 34 00 

— —  Warp  pile  fabrics,  épingle  (uncut) 

5801 35 00 

— —  Warp  pile  fabrics,  cut 

5801 36 00 

Chenille  fabrics 

580190 . 

— Of  other  textile  materials : 

5801 90 10 

580190 90 

Of flax 

Other 

^ 

5802 

5804 

5806 

5808 

6001 

6002 

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 

' 

"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) 
pr'nting.  flecking,  impregna 

bleaching,  iycirz 
ting,  dressing  an J  other  work  which  changes  the 
appearance  or  quality  of 
the  ^oods,  without 
r:oweve-  zlangir  .  th-ir  nature. 

Each Member State shall ensure that importers of the 
2. 
products concerned  have free access to the quotas for such 
times as the balance of  the tariff  quota so permits. 

said 

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 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 

—  (- 

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. 

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. 

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. 

2. 

3. 

4. 

5. 

Ligne  budgétaire  concernée  :  Chap.  12  art. 120 

Base  juridique  :  a r t.  113  du  t r a i té 

I n t i t u lé  cke  la  masure 

t a r i f a i re 

:  Proposition  de  règlerrent  du 

Conseil  portant  ouverture 

et  mode  de  gestion  d'un  contingent 

t a r i f a i re  conmunautaire  pour  des  traitements  de  certains  produits 

t e x t i l es  en  t r a f ic  de  perfectionnement  p a s s if  de  la  Cbninunauté 

Objectif  :  Respecter  l es  engagements  de  la  Communauté 

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 

COM(89)  156  final 

ISSN 0254-1475 

DOCUMENTS 

Proposal  for  a 

COUNCIL  REGULATION  (EEC) 

opening  and  providing  for  the  administration  of  a 
Community  tariff  quota  for  processing  w o rk  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 

€ 

COMMISSION OF THE EUROPEAN COMMUNITIES 

19.4.1989