Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 636/82 establishing economic outward processing arrangements applicable to certain textiles and clothing products reimported into the Community after working or processing in certain third countries
Date: 1993-07-13
Institutions: European Commission
Subjects: EU production, committee (EU), outward processing, re-import, tariff nomenclature, textile product

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(93) 259  final 

Brussels,  13 July  1993 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

amending Regulation  (EEC) No 636/82 establishing economic  outward 

processing  arrangements  applicable to certain textiles and 

clothing products reimported into the Community  after 

working or processing  in certain third  countries 

(presented  by the Commission) 

- 2 -

EXPLANATORY  MEMORANDUM 

Council  Regulation  (EEC)  No  636/82  of  16  March  1982 (*•) created  economic 

outward processing  arrangements  applicable  to certain textiles  and clothing 

products  reimported  into  the  Community  after  working  or  processing  in 

certain  third  countries.  In  the  context  of  the  application  of  these 

arrangements  the  annual  quantities  of  compensating  products  which  the 

beneficiaries  of  these  arrangements  have  been  allowed  to  reimport,  were 

distributed  until  the  end  of  1992  by  the  competent  authorities  of  each 

Member  State  within  the  limits  of  the  annual  quantities  of  compensating 

products  whose  reimportation  the  Member  State  concerned  was  allowed  to 

authorize. 

As  it  has  been  outlined  in  the  communications  of  the  Commission  on  the 

completion of the Internal Market  in trade  in textile and clothing  products 

(doc.  7006/92),  as  approved  by  the  Council,  the  establishment  of  the 

Internal  Market  in  1993  has  resulted  in  the  creation  of  an  area  without 

internal  frontiers  comprising,  inter  alia,  the  free  movement  of  goods  and 

the elimination of disparities  in import arrangements. 

It  is  therefore  necessary  to  introduce  the  indispensable  modifications  to 

Council Regulation  (EEC) No. 636/82 in order to ensure an implementation of 

the arrangements  created by this Regulation  at Community  level. 

In order to achieve this objective, the Commission proposed  in January  1993 

(COM(93) 10 final) a two-tier approach: 

-  .  As  a  first  step,  to  be  introduced  by  1 January  1993,  the  existing 

national  outward  processing  quotas  would  be  replaced  by  Community 

quotas,  open  to  those  operators  eligible  under  Council  Regulation 

No 636/82  on  a  first  come,  first  served  basis.  The  competent 

authorities  in  Member  States  would  continue  to  deliver  prior 

authorizations  to  applicants.  By  means  of  an  information  system  to 

be established  between Member states and the Commission, they have to 

make  sure  that  the  allocated  prior  authorizations  do  not  exceed  the 

total  annual  quantities  available.  It  will  also  be  possible  to 

reimport  the  compensating  products  in any  Member  state  regardless  of 

which Member State issued the prior authorization. 

(1)  OJ No L 76, 20.3.19 82, p. 1. 

3 -

- 

As a second  step, to be implemented by the  •nd  of  1993 at the latest, 

the  rules  for  implementation  of  Council  Regulation  No  636/12,  in 

particular  the  admission  of  beneficiaries,  which  up  to  now  has  not 

been  uniform  in  the  different  Member  States,  would  have  to  be 

harmonised,  other outstanding  issue»  like  the management  of  the 14% 

derogation  for  third  countries'  fabrics/yarn  are  also  to  be 

addressed. 

In  the  court»  of  the  discussion  in  the  113  committee  of  the  Commission's 

proposal  for  the  first  step,  it  appeared  that  a  large  majority  of  Member 

States  was  not  prepared  to  adopt  the  two-tier  approach  but  preferred  to 

proceed  with  a  complete  revision  of  Council  Regulation  No  636/t2  which 

would  encompass  all  the  necessary  adaptations  in  order  to  ensure  an 

implementation  of  the  arrangements  at  community  level  in  accordance  with 

the objectives of the Internal Market. 

In order to achieve this objective, the Commission  has decided to propose a 

comprehensive  revision  of  Council  Regulation  No  636/82  which  includes  its 

proposal  of  January  1993  and  addresses  in  particular  the  following 

elements : 

(a)  The  allocation  of  quantities  available.  Under  the  proposed  new 

system,  the  allocation  for applicants  other  than  operators with  past 

performance  rights,  would  be  done  on  a  first  come,  first  served 

basis,  by  maximum 

'tranches',  through  the  issue  of  prior 

authorizations.  To  this  effect  an  information  system will  be  set up 

between  the  Member  States  and  the  Commission  in  order  to  make  sure 

that  the  allocated  amounts  do  not exceed  the  total  annual  quantities 

available. 

(b)  The  concept  of  beneficiary  and  the  relevant  criteria.  The  criteria 

for  obtaining  the  benefit  of  outward  processing  arrangements  are  not 

clearly  defined  in  Council  Regulation  No  636/82.  This  has  resulted 

in  divergent  interpretations  and  applications  in  Member  States.  The 

present proposal  aims at defining more clearly  those criteria. At the 

same  time,  past  performance  rights  of  operators  will  be  preserved. 

They  can,  however,  be  reviewed  with  regard  to  those  operators  who 

have  not  been  manufacturing  in  the  Community  for  at  least  three 

years,  when  available  quantities  for  newcomers  do  not  prove 

sufficient. 

. 4 -

(c)  The  notion  of  similar  products.  Under  the  existing  regulation, 

operators  seeking  to  obtain  a  prior  authorization  must  in  principle 

establish  that  they  manufacture  similar  products.  Regulation 

No  636/82,  however,  does  not  contain  an  operational  definition  of 

"similar  products".  It  is therefore  proposed  to  group  the  different 

categories  of  products  into three  groups  of  categories  and  to  define 

similar  products  as  "products  falling  within  the  same  category  or 

within the same group of cateqories". 

(d)  The  link  between  outward  processing  and  production.  The  existing 

link  between  the  benefit  of  outward  processing  arrangements  and  the 

level  of  domestic  production  needs  to be more  clearly  defined.  It is 

proposed, without  touching  the  rights  of  legitimate  past  performers, 

that  during  the  first  nine months  of  each year, prior  authorizations 

would  only  be  granted  by  Member  State  authorities  to  those  persons 

who during  the preceding year  had maintained  a value of production in 

the  Community  of  at  least  50% of  their  total  turnover.  During  the 

remaining  three  months,  persons  not  meeting  this  condition  but  who 

maintain  a  significant  production  in  the Community  would  also  become 

eligible  for allocation of quantities. 

(e)  The  14%  derogation.  The  application  by  Member  States  of  the 

derogation  which  provides  that  up  to  14%  of  fabrics  going  into 

outward  processing  operations  can  be  of  third  country  origin,  if 

those  goods  are  not  sufficiently  available  wthin  the  Community,  is 

not  uniform.  To  eliminate  the  discrepancies,  it  is  proposed  to 

implement  this  derogation  clause  at  the  level  of  each  individual 

beneficiary.  A  higher  percentage  of  derogation  would  nonetheless  be 

permitted  in  exceptional  and  economically  justified  cases  on  the 

basis  of  a decision  taken  in accordance  with  the  procedure  laid  down 

in  Article  12  of  the  existing  Regulation,  which  governs  the 

applicable  rules on the management of the Regulation. 

5 -

At the same time the proposal covers two issues which  need to be addressed: 

(a)  a  technical  adaptation  of  th»? list  of  textile  products  (categories) 

to  which  the  Regulation  applies  in  order  to  take  into  account 

modifications  in  the  Combined  Nomenclature  which  occurred  since  the 

entry  into force of Council Regulation No  636/82; 

(b)  inclusion  of  a provision  in order  to ensure  a uniform  application  of 

the  tariff  exemption  accorded  to  PECOs  for  reimports  of 

textile/clothing  goods after outward processing  in those countries. 

- 6 -

Proposal for a 

COUNCIL REGULATION  (EEC) 

amending Regulation  (EEC) No 6 36/82 establishing economic  outward 

processing  arrangements  applicable to certain textiles  and 

clothing products reimported  into the Community  after 

working or processing  in certain third  countries 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic  Community, 

and in particular Article  113 thereof, 

Having regard to the proposal  from the Commission, 

Whereas  the  import  arrangements  in  the  Community  for  the  textile  and 

clothing  sectors  as  regards  certain  third  countries  contain  specific 

measures  applicable  to  products  resulting  from  outward  processing 

operations; 

Whereas  Council  Regulation  (EEC)  No  6 3 6 / 8 2 ^ ),  as  amended  by  the  Act  of 

Accession  of  Spain  and  Portugal  created  economic  outward  processing 

arrangements  applicable to certain  textile and clothing products  reimported 

into the Community  after working or processing  in certain third countries; 

Whereas the creation of the Internal Market of  1993 entails an area without 

frontiers  in  which  in  particular  the  free  movement  of  goods  will  be 

ensured;  whereas  this  entails,  inter  alia,  the  abolition  of  controls  at 

internal  frontiers  and  the  elimination  of  disparities  as  regards  import 

arrangements,  as  well  as  the  option  of  reimporting  compensating  products 

into  a  Member  State  other  than  that  in  which  the  prior  authorization  was 

granted; 

(1)  OJ No L 76, 20.3.1982, p. 1. 

- 7 -

Whereas  trade  in  textile  and  clothing  products  should  be  in  line with  the 

functioning  of  the  said  Internal  Market,  in  particular  as  regards  the 

application of the economic  outward  processing  arrangements  for textiles; 

Whereas  the  earlier  regional  outward  processing  quotas  have  been  replaced 

as  from  1  January,  1993  by  a  system  of  Community  quotas  not  allocated 

between Member States; 

Whereas the competent  authorities of Member States  should continue to issue 

prior  authorizations  to  applicants  wanting  to  make  use  of  outward 

processing,  but  in  doing  so  should  communicate  to  the  commission  the 

quantities  requested  in  order  to  verify  whether  those  quantities  are 

available within  the total limits established  at Community  level; 

Whereas  quantities  should  be  allocated  by  maximum  tranches,  and  the 

applications  for  a new tranche  should  only  be  possible  when  the  previously 

allocated tranche has been utilized  by at least 50%; 

Whereas  the  criteria  and  conditions  which  Member  state  operators  must 

observe  in  order  to  qualify  under  these  arrangements  are  not  at  present 

applied uniformly  throughout the Community; 

Whereas,  therefore,  the  rules  for  implementation  of  these  criteria  and 

conditions  have  to  be  harmonized  in  order  to  allow  access  to  outward 

processing  under  conditions  common  to  the  whole  Community,  especially  in 

respect  of  the  definition  "beneficiary",  the  term  of  "similar  products", 

the  priority  for  manufacturers  maintaining  an  important  production  within 

the Community  and the derogation  from the rule concerning  the origin of the 

product exported  for outward procèssing; 

Whereas  the  allocation  of product  quantities  to each  applicant  should  take 

account  not only  of the quantities  available  under  the  import  arrangements 

established  with  regard  to  the  particular  product  and  third  country 

concerned,  but  also  of  the  bona  fide  status  of  the  beneficiary  as 

manufacturer  and the efforts of the manufacturer  to maintain production and 

employment  within  the  Community  of  articles  at  the  same  stage  of 

manufacture,  while  at  the  same  t ime  not  reducing  the  quantities  made 

available to and used by  legitimate  past beneficiaries; 

- 8 

Whereas  in keeping with the objectives of this Regulation  it is appropriate 

that  the product  quantities  allocated  to persons  who  have  not  manufactured 

similar  products  in  the  Community  for  more  than  three  years  should  be 

reviewed  at  the  end  of  each  year  in  which  available  quantities  for 

newcomers do not prove sufficient; 

Whereas  for  the  purpose  of  ensuring  an  efficient  and  impartial  management 

of the system, the distribution  of outward  processing  quantities which have 

not  been  set  aside  to  meet  the  applications  of  .persons  with  past 

performance rights should be effected on a first-come, first-served basis; 

Whereas,  in view  of  Protocol No  1 on Textiles  and  Clothing  products  to the 

Europe  Agreements  and  the  Interim  Agreements  concluded  between  the 

Community  and  the  Czech  Republic,  the  Slovak  Republic,  Poland,  Hungary, 

Bulgaria  and  Romania,  it  is  appropriate  that  the  scope  of  the  application 

of the Regulation  be extended  to certain  liberalized categories  of products 

originating  in those countries; 

Whereas  it is necessary  that  the  list of  products  to which  this  Regulation 

applies  should  be  in conformity  with  the  present  classification  of  textile 

products  (categories) based on the combined Nomenclature; 

whereas  the  present  Regulation  should  not  affect  reimportations  into  the 

Community  of products  after  their  working  or  processing  in third  countries 

pursuant to prior  authorizations  issued before  the date of  its application; 

Whereas  an  efficient  Community  administration  of  the  outward  processing 

arrangements  requires  close  cooperation  between  the  Member  States  and  the 

Commission, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation  (EEC) No 636/82 is amended  as follows: 

1. 

In  Article  1(1), the  words  "50  to  62  of  the  Common  Customs  Tariff" 

are replaced  by the words  "50 to 63 of the Combined  Nomenclature". 

- 9 -

2. 

At the beginning  of Article  1(3) the following words are  inserted: 

"Without prejudice  to the third paragraph of Article 11." 

3. 

In Article  1(4) the following  subparagraphs  are added: 

"(c)  'competent  authority'  means  the  authority  in  a  Member  State 

which  is  competent  to  <*pply  the  provisions  laid  down  in  the 

present  Regulation,  in  particular  the  granting  of  prior 

authorizations. 

(d)  'similar  products'  are  lefined  as  products  falling  within  the 

same  category  or  within  the  same  group  of  categories  as  is 

listed  in Annex  I, which may  be modified  in accordance with  the 

procedure  laid down in Article 12." 

4. 

Article 2(2)(a) is replaced by the following text: 

"(a) that person must: 

- 

prove  to  the  competent  authority,  when  applying  for  his 

first  prior  authorization  each  year,  that  he  has 

manufactured  in  the  preceding  year  products  which  are 

similar  to  and  at  the  same  stage  of  manufacture  as  the 

compensating  products  in  respect  of  which  the  application 

for the arrangement  is made; 

- 

perform,  within  --he  Community,  the  main  production 

processes  on  those  products  (cutting,  sewing,  assembling, 

or  knitting) on  his  own  account, either  in  his  or  her  own 

factory,  or  alternatively,  in  respect  of  some  but  not  all 

of  those  production  processes,  in  a  factory  of  another 

manufacturer  linked  to  him  by  a  joint  venture,  by 

subcontracting,  or  by  some  other  form  of  long-term 

cooperation contract; 

manufacture  in the community  those products  for sale on the 

market." 

-  10 -

5. 

In Article  2(2)(b) the second  part of the sentence  is replaced by the 

following text: 

"...  operations  within  the  quantities  allocated  by  the  competent 

authorities  of  the  Member  State  where  the  application  is  made,  and 

subject to the conditions  laid down  in Article  3." 

6. 

In  Article  2(2)(c)  the  last  sentence  of  the  first  subparagraph  is 

replaced by the following text: 

"Such  derogations  may  not  be  granted  in  respect  of  more  than  14% of 

the  total  value  of  the  goods(*)  in  respect  of  which  the  benefit  of 

the  arrangement  was  granted  to  the  beneficiary  during  the  previous 

year.  In  exceptional  and  economically  justified  cases  the  competent 

authorities,  on  the basis  of  a decision  taken  in accordance  with  the 

procedure  laid  down  in Article  12, may  agree  to  a  higher  percentage 

of derogation. 

(*)  'Total value of the goods" means: 

- 

in  the  case  of  the  goods  imported  beforehand,  their  value 
for  customs  purposes  as  defined  by  Regulation  (EEC) 
No  1224/80  (OJ No L  134, 31.5.1980, p. 1 ); 
in all other cases, the ex-factory price." 

7. 

In  Article  2(3), the  second  sentence  of  the  fourth  subparagraph  is 

deleted. 

8. 

Article  3 is replaced  by the  following text: 

"Article 3 

1.  The  Council  shall  establish  at  Community  level  the  annual 

quantities  of  compensating  products  whose  reimportation  may  be 

authorized  under the specific  import arrangements  referred to in 

Article 1(3). 

2.  The competent authorities  shall distribute  the annual  quantities 

referred  to  in paragraph  (1) above  amongst  the  beneficiaries as 

defined  in Article 2. 

-  11 -

3.  Without  prejudice  to  Article  2(3)  or  paragraph  (5) below,  this 

distribution  shall  be  such  as  to  ensure  that  the  objective  of 

maintaining  the  industrial  activity  of  the  beneficiary  in  the 

Community,  as  laid  down  in  Article  2(2)(a),  is  respected  as 

regards  both  the  nature  of  the  products  and  their  quantities 

expressed  in physical units or added value. 

4.  The  annual  quantities  of  compensating  products  shall  be 

distributed  among  the  beneficiaries  on  the  basis  of  their 

demands presented  in conformity with Article 4(2). 

The  allocation  will  be  effected  by  maximum  amounts  for  each 

category  and  for  each  third  country  concerned.  If  a  new 

application  is  submitted,  additional  amounts  for  each  category 

and  for  each  third  country  concerned  may  be  allocated  by  the 

competent  authorities  to  a particular  beneficiary  only  when  the 

previously  authorized  amount  for  that  beneficiary  has  been 

actually  utilized by at  Least 50%. 

5.  Each legitimate beneficiary  shall be entitled to an amount equal 

to the total quantity  of compensating  products  for each category 

and  for  each  third  country  concerned  for  which  it  carried  out 

outward processing  operations  in conformity with the provisions 

of  the  Regulation,  during  one  of  the  two  calendar  years 

preceding  the  year  of  its  application.  Beneficiaries  mentioned 

in this  paragraph  become  eligible  for  allocations  in  accordance 

with  paragraph  (6)  only  when  they  have  fully  used  their  past 

performance rights. 

In  addition,  a  legitimate  beneficiary  who  waives  his  past 

performance  rights  in  respect  of  a  specific  category  and/or 

country  becomes  eligible  to apply  for an equivalent  quantity  in 

another  category  and/or  country,  in  accordance  with  the  first 

subparagraph  of paragraph  (6)  (general rules  for newcomers); the 

criteria  generally  to be  applied  in such  cases  shall  be  decided 

in accordance with the procedure  laid down  in Article 12. 

-  12 -

6.  The competent  authorities  shall allocate on a first-come, first-

served  basis  the quantities  of compensating  products  which  have 

not  been  temporarily  set  aside  to  fulfil  the  applications  made 

under paragraph  (5). 

During  the  first  nine  months  of  each  year  allocations  shall  be 

granted  to  those  manufacturers  who  can  prove  that  in  the 

preceding  year  they  maintained  a  production  value  in  the 

Community  of at least  50'* of their total turnover. 

During  the  remaining  three  months  of  each  year  those 

manufacturers  who  can  prove  that  in  the  preceding  year  they 

maintained,  in  the  Community,  a  significant  production  of 

similar  products,  in relation  to  the  quantities  requested,  can 

participate  in the distribution  of  the remaining quota. 

7.  Where  those  beneficiaries  referred  in  paragraph  (5) do  not  use 

the  total  quantities  to  which  they  are  entitled,  the  remainder 

of  such quantities, but  in any  case  not more than  10.5% of  each 

total  quantity(*),  shall  be  added  to  the  following  year's 

quantities referred  to in paragraph (6). 

8.  At  the  end  of  each  year  in  which  available  quantities  of 

compensating  products  prove  to  be  insufficient  to  satisfy  the 

applications  made  under  paragraph  (6)  consideration  shall  be 

given  in accordance  with  the  procedure  laid  down  in Article  12, 

to  the  extent  to  which,  and  the  way  in  which,  allocations  to 

those  persons who  have  not manufactured  similar  products  for  at 

least three years have to be reduced. 

9.  Provisions  relating  to the  application  of  this Article  shall  be 

adopted  in  accordance  with  the  procedures  laid  down  in 

Article 12. 

<*)  According  to  Article  4(2)  of  Annex  XXIII  of  Council 

Regulation  No 4136/36, which expired  on 31 December  1992." 

13 -

9. 

Article  4(1) is replaced  by the following text: 

"1.  Application  of  the  arrangements  contained  in  this 

Regulation  is subject to the issue of a prior  authorization 

by the competent authorities. 

In order  to ensure  that the  allocated  prior  authorizations 

do  not  exceed  the  total  annual  quantities  of  compensating 

products  established  at  Community  level  the  competent 

authorities  shall  issue  prior  authorizations  only  upon 

confirmation  by  the  Commission  that  there  are  still 

quantities  available  of  the  total  Community  quota  for  the 

category  and  the  third  country  concerned,  for  which  the 

quantities  are requested by the persons  concerned." 

10.  Article  4(2)is deleted. 

11.  Article  5(4) is replaced  by the following text: 

"4.  When 

granting 

prior 

authorizations 

the 

competent 

authorities  must  be  satisfied  that the  level  of  employment 

in  the  factory  oi  factories  of  the  applicant  is  not 

significantly  affected." 

12.  In Article  7, the first paragraph  is deleted. 

13.  In  Article  8,  the  words  at  the  end  of  paragraph  (1)  "by  the 

Member  state  that  issued  the  prior  authorization  for  those 

products" are deleted. 

14.  Article  8(2) is deleted. 

15.  In  the  first  and  second  paragraphs  of  Article  9,  the words  "of 

the Member State concerned"  are deleted. 

-  14 -

16.  In Article  11, the second paragraph  is replaced by the  following 

text : 

"Council  Regulation  (EEC) No  2473/86  of  24 July  1986  on  outward 

processing  relief  arrangements  and  the  standard  exchange 

system^*),  as  well  as  any  provisions  adopted  for  its 

application, shall not be affected by those arrangements. 

(*>OJ No L 212, 2.8.1986, p. 1." 

17.  In Article  11 a third paragraph  is added, as follows: 

"For  the  application  of  the  provisions  of  Article  2(3)  of 

Protocol  No  1  on  Textiles  and  Clothing  Products  to  the  Europe 

Agreement  and  the  Interim  Agreements  between  the  Community  and 

the  Czech  Republic,  the  Slovak  Republic,  Hungary,  Poland, 

Romania and Bulgaria respectively, the products which are  listed 

in Annex  2 and which  originate  in those  countries  in  accordance 

with  Protocol No  4 on  Origin  to  the  Europe  Agreements  with  the 

Community, do not need  to be  subject  to the  arrangements  or the 

specific  measures  referred  to  in  Article  1(3)  or  the  annual 

limits referred  to in Article  2(2)(b).  Prior authorizations  for 

those  categories  of  products  shall  be  issued  by  the  competent 

authorities  after  notification  to  the  Commission  of  the 

quantities  requested,  and  provided  that  all other  conditions  of 

this Regulation  are  fulfilled." 

18.  The attached  Appendix  1 becomes Annex  1 to the Regulation. 

19.  The  Annex  is  replaced  by  the  attached  Appendix  2  and  becomes 

Annex  2 to the Regulation; and references made  in the  Regulation 

to the Annex become references to Annex 2. 

-  15 -

Article 2 

The  present  Regulation  shall  not  affect  the  reimportation  into  the 

Community  of products  after working  or processing  in third countries on the 

basis  of  prior  authorizations  issued  before  the  entry  into  force  of  this 

Regulation. 

Article 3 

This  Regulation  shall  enter  into  force  on  the  seventh  day  following  its 

publication  in the official Journal  of the European  Communities. 

This Regulation  shall be binding  in its entirety  and directly  applicable  in 

all Member  States. 

Done at Brussels, 

For the  Council 

The  President 

- 16 -

'ANNEX 1 

Appendix 1 

Groups of categories referred to in Article l(4)di 

Similar products at the same stage of manufacture are defined as products 
falling within the same category or within the same group of categories as 
listed below: 

1st group (Outerwear) 

c a t e g o r i es  4,  5,  6,  7,  8,  1 4,  1 5 / 1 6,  17,  2 1,  2 6,  2 7,  2 8,  2 9,  7 3,  7 4,  7 5, 
7 6,  7 7,  7 8,  8 3. 

2nd group (Underwear) 

categories 4, 13, 18, 24, 28, 31, 6), 72, 78, 83, 86. 

3rd group (Other products) 

categories 10, 12, 68, 70, 72, 78, 33, 85, 87. 

-  17 -

"ANNEX 2 

Appendix 2 

List of maximum processing  levels referred to in Article  2(2)(d) 

Compensating products by categories(1) 

Maximum processing  level 

Categories 

Operation 

"4,  5, 6,  7, 8,  10,  12, 13, 14, 15, 
16,  17, 18, 21, 24, 26, 27, 28, 29 
31, 68, 69, 70, 72, 73, 74, 75, 76, 77, 
78,  83, 85, 86, 87, 91." 

Processing  from woven or 
knitted  fabrics(2) 

(1)  Categories  refer  to  those  listed  in  Annex  1  to  council  Regulation 

(2)  However,  the  operation  whereby  fully  fashioned  knitwear  is  obtained 
from yarn may also count as a processing  operation within the meaning 
of  this  Regulation,  provided  that  the  temporary  exports  of  yarn 
authorized  for this purpose in any year do not exceed  7% by weight of 
the  total  temporary  exports  authorized  in  the  Community  in  the 
previous  year under  specific  arrangements  of  the  type referred  to in 
Article 1(3). 

The  Commission  shall  ensure  that  the  limit  of  7%  as  foreseen  above 
will not be exceeded at the Community level. 

To this end the provisions of Article  4, paragraph  1, subparagraph 2, 
shall apply." 

-  18  -

ISSN 0254-1475 

COM(93) 259 final 

DOCUMENTS 

EN 

11 02 

Catalogue number : CB-CO-93-286-EN-C 

ISBN 92-77-56468-7 

Office  for Official  Publications of the European Communities 
L-2985 Luxembourg