Proposal for a Council Decision on the Community position within the EC/Turkey Association Council on the introduction of common outward processing arrangements for textiles and clothing
Date: 1998-09-25
Institutions: European Commission
Subjects: Association Council (EU), Türkiye, clothing, outward processing, textile product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.09.1998 
COM(1998) 529 final 

98/ 0279 (ACC) 

Proposal for a 

COUNCIL DECISION 

the Community position within the 

EC/Turkey Association Council 

on the introduction of common outward processing  arrangements 

for textiles and clothing 

(presented by the Commission) 

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Explanatory Memorandum 

1.  The EC-Turkey  Association  Council  adopted  Decision No  1/95  on  implementing 

the final  phase of the Customs Union on 22 December  1995. 

2.  Turkey  adopted  its  own  legislative  measures  to  introduce  outward  processing 

arrangements  for  textiles  and  clothing,  referred 

to  as  economic  outward 

processing,  in  compliance  with Article  12 of  Decision  1/95,.  The  arrangements 

can  be  applied  on  the  Community  side  where  goods  in  free  circulation  of 

Community  origin  are  exported  temporarily  to  a  third  country  and  are  then 

reimported  into  the  Community 

in  the  form  of  compensating  products; 

conversely, they  can be  used on the Turkish  side where goods  in free  circulation 

of  Turkish  origin  aie  exported  temporarily  to  a  third  country  and  are  then 

reimported into Turkey in the form of compensating products. 

3.  Measures are required (a) to allow compensating products to be reimported into a 

part  of  the  Customs  Union  other  than  that  from  which  the  goods  had  been 

exported  for  working  in  a third  country  under the economic  outward  processing 

arrangements and (b) to enable goods in free circulation originating in one part of 

the  Customs  Union  which  are  to  be  processed  in  a  third  country  to  be  placed 

under  the  economic  outward  processing  arrangements  in  the  other  part  of  the 

Customs  Union.  The  puipose  of  the  proposed  EC-Turkey  Association  Council 

Decision  is to adopt measures  allowing  economic  outward  processing  operations 

involving both parts of the Customs Union to be undertaken in a third country. 

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4.  The  measures  in  question  will  help  consolidate  the  Customs  Union.  They  form 

part of the Commission's  initial operational proposals under the European Strategy 

for  Turkey  defined  in  the  recent  Commission  Communication  to  the  Council 

(COM (1998)  124 final  of 4 March  1998). 

5.  They  should not have  any negative  economic  impact  on  Community  operators  as 

the  economic  outward  processing  arrangements  will  be  used  only  in  cases  where 

import quotas apply, and such quotas have been abolished  for Central and Eastern 

Europe  and  the  Mediterranean  countries,  which  account  for  the  majority  of 

processing  of textiles  and clothing.  These measures must, nevertheless,  anticipate 

any  future  economic  outward  processing  needs  and  must  therefore  be  global  in 

nature. 

6.  The Commission invites the Council to adopt the attached proposal  for submission 

of the draft decision to the EC/Turkey Association  Council. 

Council Decision 

on the Community position 

within the EC-Turkey Association Council 

on the introduction of common outward processing arrangements 

for textiles and clothing 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Article  113 together with the first sentence of Article 228(2) thereof, 

Having regard to the proposal from the Commission, 

Whereas common outward processing  arrangements  for textiles and clothing must be 

introduced under the Customs Union between the European Community and Turkey, 

HAS DECIDED AS FOLLOWS: 

The  position  to  be  taken  by  the  Community  within  the  EC-Turkey  Association 

Council on the introduction  of common outward  processing  arrangements  for  textiles 

and clothing shall be based on the proposed draft  Decision  in the Annex. 

Done at Brussels, 

For the Council, 

The President 

<t> 

Draft proposal for a Decision 

of the EC-Turkey Association Council 

on the introduction of common outward processing arrangements 

for textiles and clothing 

THE EC-TURKEY ASSOCIATION COUNCIL, 

Having  regard  to  the  Agreement  establishing  an  Association  between  the  European 
Economic Community and Turkey,1 

Having  regard  to  Decision  No  1/95  of  the  EC-Turkey  Association  Council  of  22 
December  1995 on implementing the final phase of the Customs Union,2 

Whereas, pursuant  to the eighth indent of Article  12(1) of Decision No  1/95,  Turkey 

adopted  its  own  legislative  measures  to  introduce  outward  processing  arrangements 

for  textiles  and  clothing,  hereinafter  referred  to  as  economic  outward  processing; 

whereas  such  arrangements  may  apply  on  the  Community  side  where  goods  in  free 

circulation  of  Community  origin  are  exported  temporarily  to  a  third  country  to  be 

reimported  into  the  Community  in  the  form  of  compensating  products  and,  on  the 

Turkish  side,  where  goods  in  free  circulation  of  Turkish  origin  are  exported 

temporarily  to  a  third  country  to  be  reimported  into  Turkey  in  the  form  of 

compensating products; 

Whereas measures must be adopted to allow compensating products to be reimported 

into  a  part  of  the  Customs  Union  other  than  that  from  which  the  goods  had  been 

exported  for  processing  in  a  third  country  under  the  economic  outward  processing 

arrangements,  and  to  enable  goods  in free circulation  originating  in  one  part  of  the 

Union  which  are to be processed  in  a third  country  to be placed  under the  economic 

' O JL  217, 29.12.1964. 
2OJ  L35,  13.2.1996. 

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outward processing  arrangements  in  the  other part of  the  Customs  Union;  whereas 

these  measures  must  be  based  on  the  economic  outward  processing  arrangements 

already applying in both parts of the Customs Union; 

Whereas an evaluation should be undertaken two years after this Decision enters into 

force  to  establish  how  the  common  arrangements  are  working;  whereas  the 

arrangements will have to be adjusted if any cases of fraud or disruption of the textile 

market are detected; 

Whereas the measures  in question  should preferably  anticipate  any  future  economic 

outward processing needs; whereas they must therefore be global in nature, 

HAS DECIDED AS FOLLOWS: 

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Article  1 

1.  The  purpose  of  this  Decision  is  to  adopt  measures  providing  for  economic 

outward processing  operations which concern both parts of the  Customs  Union. 

The  operations  in  question  are  those  undertaken  under  economic  outward 

processing arrangements based on the following legal instruments: 

-  For  the  Community,  Council  Regulation  (EC)  No  3036/94  of  8 December 

1994  establishing  economic  outward  processing  arrangements  applicable  to 

certain  textiles  and  clothing  products  reimported  into  the  Community  after 
working or processing in certain third countries;3 

-  For Turkey, [reference to the Turkish legislative act]. 

2.  For the purposes of this Decision: 

-  " part of the Customs Union "  means the European Community or Turkey as 

the case may be; 

-  other terms aie defined,  mutatis mutandis,  in the legal instruments referred to 

in paragraph 1. 

Article 2 

1.  Where, on the basis  of the  legal  instruments  referred to in Article  1, economic 

outward processing  arrangements are applied in one part of the Customs Union, 

compensating products may be imported into the other part of the Customs Union 

in accordance with the terms of these arrangements. 

OJ  L 322, 15.12.1994. 

2.  The goods  for  which  economic  outward  processing  arrangements  are  authorised 

in one part of the Customs  Union on the basis of the legal instruments referred to 

in Article  1  may originate in the other part of the Customs Union. 

Article 3 

Two  years  after  this  Decision  enters  into  force  the  EC-Turkey  Association  Council 

shall, on the basis of a report by the EC-Turkish Customs Cooperation Committee set 

up  by  Decision  No  2/69  of  the  EC-Turkey  Association  Council,  undertake  an 

evaluation of the arrangements established by this Decision and shall if necessary take 

measures to correct any problems. 

Article 4 

The  EC-Turkey  Customs  Cooperation  Committee  shall  lay  down  the  appropriate 

measures to implement this Decision. 

Article 5 

This Decision shall enter into force on 1  January 1999. 

Done at Brussels on 

For the EC-Turkey Association Council 

The President 

<r 

ISSN 0254-1475 

COM(98) 529 final 

DOCUMENTS 

EN 

10  11  02 

Catalogue number  :  CB-CO-98-535-EN-C 

ISBN  92-78-39222-7 

Office for Official  Publications of the European Communities 

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