Proposal for a Council Regulation (EC) on the implementing methods for Decision No..... of the EC- Cyprus Association Council derogating from the provisions concerning the definition of the concept of originating products laid down in the Agreement establishing an association between the European Economic Community and the Republic of Cyprus
Date: 1997-06-05
Institutions: European Commission
Subjects: Cyprus, association agreement (EU), clothing, originating product

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  05.06.1997 
COM(97) 274  final 

97/0164 (ACC) 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

on the implementing methods for Decision No 

of the EC-Cyprus Association Council  . 

derogating from the provisions concerning the definition of the concept of originating products laid 
down in the Agreement establishing an association between the European Economic Community 
and the Republic of Cyprus 

(presented  by  the  Commission) 

SUMMARY 

In a joint declaration  annexed to the Protocol fixing the terms for the transition to the 
second stage of the EEC-Cyprus Agreement, the Community and Cyprus agreed to 
examine requests for derogations made by Cyprus after the entry into force of the said 
Protocol. 

The requests were intended to permit Cyprus to use fabric of third country origin for the 
manufacture  of garments which are intended for export to the Community within the 
framework  of a preferential regime provided for in the Agreement. 

A draft  decision of the EC-Cyprus Association Council granting Cyprus a prolongation 
of an existing derogation for fixed quantities during a limited period has been submitted 
to the Commission for approval by means of written procedure, on condition that Cyprus 
collects the duties applicable to the materials used initially and regularly furnishes  certain 
statistics to the Community. 

This draft  regulation fixes the implementing methods for this decision. 

EXPLANATORY  MEMORANDUM 

According to the current rules of origin of the EEC-Cyprus Agreement, garments 
manufactured  in Cyprus may only benefit from preferential treatment on import into the 
Community if they are made up from fabric woven in Cyprus or in the Community. 

As practically no weaving takes place on the Island, Cyprus has been granted since the 
entry into force of the Association Agreement in 1973 a derogation for men's garments, 
allowing the use of imported fabric. 

An equivalent derogation for women's garments and for men's shirts was granted in 
1989 for a period of two years by Decision No.  1/89 of the EEC-Cyprus Association 
Council of 28 July 1989(1) prolonged for three further  periods of two years by Decision 
No.  1/91  of 19 December  1991(2), Decision No.1/94 of 14 February  1994(3) and Decision 
No.  1/95  of 22 December  1995(4). 

Cyprus has requested a further  prolongation of this derogation and a draft  decision of the 
EC-Cyprus Association Council granting Cyprus a prolongation of the said derogation 
has been submitted to the Commission for approval. 

The Commission is charged with the management of the quantitative limits fixed in the 
decision in question. 

To this end it is proposed that the Council adopts a draft  regulation on the implementing 
methods for the said decision. 

(I) OJ No L 230 of 8.8.1989, p. 3. 
a)  OJ No. L 372 of 31.12.1991, p. 37. 
(3) OJ No. L 53 of 24.02.1994, p.  19. 
<4) OJ No. L 326 of 31.12.1995, p. 63. 

Proposal  for  a 

COUNCIL  REGULATION  ŒO 

on the implementing methods for Decision No 

of the EC-Cyprus Association  Council 

derogating from the provisions concerning the definition of the concept of originating products laid 
down in the Agreement establishing an association between the European Economic Community 
and the Republic of Cyprus 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article  113 thereof, 

Having regard to the proposal from the Commission, 

Whereas the Agreement establishing an Association between the European Economic Community and 
the Republic of Cyprus (1) was signed on  19 December  1972; whereas it entered into force on  1  June 
1973; 

Whereas the Additional  Protocol<2) to the said Agreement was signed at Brussels on  15 September  1977; 
whereas it entered into force on  1  June  1978; 

Whereas, pursuant to Article 25 of the Protocol concerning the definition  of the concept of originating 
products and methods or administrative cooperation annexed to the Additional Protocol, as extended by 
Article 2 of the Protocol laying down the conditions and procedures for the implementation of the 
second stage of the Agreement establishing an association between the European Economic Community 
and the Republic of Cyprus and adapting certain provisions of the Agreement(3), which was signed at 
Luxembourg on  19 October  1987, entered into force on  1  January  1988 and forms an integral part of the 
Agreement, the EC-Cyprus Association Council adopted Decision No ....(4) derogating from the rules of 
origin applicable to certain textile products; 

Whereas the implementing methods for this Decision should be fixed, 

HAS ADOPTED THIS REGULATION: 

Article I 

1. The quantities listed in Annex I to Decision No 

shall be administered by the Commission. 

If an  importer enters, for circulation  in a Member State, a product covered by a certificate  EUR. 1 
bearing the endorsement  referred  to in Article 4 of Decision No 
and that entry is accepted by the 
customs authorities, the Member State concerned shall, by notifying  the Commission draw an amount 
corresponding to its requirements. 

2. Requests for drawing, endorsed with the date of acceptance of the said entry, must be forwarded to the 
Commission  forthwith. 

( 1 )OJNoL133,21.5.  1973, p. 2. 
(2) OJ No L 339, 28. 12. 1977, p. 2. 
(3) OJ No L 393, 31.  12. 1987, p. 2. 
(4) See page 

of this Official  Journal 

<f 

3. Drawings shall be granted by the Commission in chronological order of the date of acceptance by the 
customs authorities of the Member State concerned of the entry for free circulation, to the extent that the 
available balance of the said amount so permits. 

4. Should a Member State fail to use the quantities it has drawn, it shall return them as soon as possible. 

5. If the quantities requested are greater than the available balance of the amount, they shall be granted 
pro rata, pursuant to paragraph 3. The Commission shall inform  the Member States of the drawings 
made. 

Member States shall be informed forthwith when the quantity has been used up. 

This Regulation shall apply for a period of two years starting on 28 July 1997. 

Article 2 

Article 3 

This Regulation shall enter into force on the day of 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 

For the Council 
The President 

IMPACT  STATEMENT 
IMPACT ON COMPETITION AND EMPLOYMENT IN THE COMMUNITY 

The proposal will not have any effect  on competition and employment in the Community. 

c 

ISSN 0254-1475 

COM(97) 274 final 

DOCUMENTS 

EN 

10  11 

Catalogue number  : CB-CO-97-270-EN-C 

ISBN 92-78-20857-4 

Office  for Official  Publications of the European Communities 

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