Proposal for a REGULATION (EU) No  OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL repealing Council Regulation (EC) No 1541/98 on proof of origin for certain textile products falling within Section XI of the Combined Nomenclature and released for free circulation in the Community, and on the conditions for the acceptance of such proof and amending Council Regulation (EEC) No 3030/93 on common rules for imports of certain textile products from third countries
Date: 2010-10-06
Institutions: European Commission
Subjects: certificate of origin, free circulation, originating product, simplification of formalities, surveillance concerning imports, textile product, third country

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EUROPEAN COMMISSION 

Brussels, 6.10.2010 
COM(2010) 544 final 

2010/0272 (COD) 

Proposal for a 

REGULATION (EU) No  
OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

repealing Council Regulation (EC) No 1541/98 on proof of origin for certain textile 
products falling within Section XI of the Combined Nomenclature and released for free 
circulation in the Community, and on the conditions for the acceptance of such proof 
and amending Council Regulation (EEC) No 3030/93 on common rules for imports of 
certain textile products from third countries 

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EXPLANATORY MEMORANDUM 

1. CONTEXT OF THE PROPOSAL 

Objective of the proposal 

The  proposal  to  repeal  Council  Regulation  (EC)  No  1541/98  of  13  July  1998  on  proof  of 
origin  for  certain  textile  products  falling  within  Section  XI  of  the  Combined  Nomenclature 
and released for free circulation in the Community, and on the conditions for the acceptance 
of such proof aims to achieve a simplification of the formalities carried out by importers and 
increase  the  uniformity  of  the  rules  for  import.  For  the  consistency  it  is  also  proposed  to 
amend  Council  Regulation  (EEC)  No  3030/93  of  12  October  1993  on  common  rules  for 
imports of certain textile products from third countries. 

General context 

The  requirements  regarding  the  presentation  of  proof  of  origin  for  textile  products  were 
introduced with a view to ensuring the correct application of measures on products to which 
the quantitative restrictions applied and avoid market disruption caused by imports from the 
PR of China.  

Regulation (EC) No 1541/98 provides for the conditions of acceptance of proofs of origin for 
certain  textile  products  originating  in  third  countries  and  falling  within  Section  XI  of  the 
Combined Nomenclature, listed in Annex I to Regulation (EEC) No 3030/93. 

Over recent years the import measures applied by the Union to textile products have gradually 
decreased  in  their  number  and  impact.  Quantitative  restrictions  on  imports  originating  in 
countries which are WTO Members were eliminated with the expiry of the WTO Agreement 
on  Textile  and  Clothing  in  2005.  Special  safeguard  provisions  for  imports  of  textiles  and 
apparel  products  originating  in  the  PR  of  China  and  covered  by  the  Agreement  on  Textiles 
and  Clothing  (ATC)  ended  on  31  December  2008  and  the  regime  of  double  checking 
surveillance system of imports categories originating in the PR of China expired.  

The  management  of  imports  of  textile  products  from  third  countries,  not  members  of  the 
WTO, subject to remaining quantitative restrictions is based on import authorizations and not 
on the proofs of origin. 

The presentation of a proof of origin has no value when a system of surveillance is applied for 
the categories of products not subject to quantitative restrictions. Given that the products can 
be imported without any constraints, there is no reason for demanding guarantees regarding 
their origin.  

As  a  consequence,  taken  that  the  Union  trade  policy  measures  in  textiles  sector  are  limited 
and  can  be  managed  without  proofs  of  origin,  it  is  proposed  to  repeal  Council  Regulation 
(EC) No 1541/98 and in parallel to amend the related provisions of Council Regulation (EEC) 
No 3030/93. 

Existing provisions in the area of the proposal 

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Council  Regulation  (EC)  No  1541/98  of  13  July  1998  on  proof  of  origin  for  certain  textile 
products  falling  within  Section  XI  of  the  Combined  Nomenclature  and  released  for  free 
circulation in the Community, and on the conditions for the acceptance of such proof. 

Council Regulation (EEC) No 3030/93 of 12 October 1993 on common rules for imports of 
certain textile products from third countries. 

Council  Regulation  (EEC)  No  2913/92  of  12  October  1992  establishing  the  Community 
Customs Code provides in Article 26 that the customs authorities may require any additional 
proof of origin.  

Commission  Regulation  (EEC)  No  2454/93  of  2  July  1993  laying  down  provisions  for  the 
implementation  of  Council  Regulation  (EEC)  No  2913/92  establishing  the  Community 
Customs  Code  providing  that  Box  34  of  the  single  administrative  document,  completed  in 
accordance with the single administrative document explanatory notes in Annex 37, contains 
the  country  of  origin  for  imported  products.  This  indication  is  subject  to  the  normal 
verification  procedures,  including  the  possibility  for  the  customs  authorities  to  require 
additional proof, where appropriate, on a case by case basis. 

Consistency with the other policies and objectives of the European Union 

The  proposal  is  in  line  with  the  current  policy  of  simplification,  since  its  objective  is 
removing from the Union set of rules a legal instrument which is unnecessary. 

2. CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

Not relevant.  

Impact assessment 

Since the proposal regards the repeal of an existing regulation, the two possible options are: 1) 
no legislative action; 2) legislative action. 

The  first  option  would  imply  that,  despite  the  expiry  of  bilateral  textile  agreements  and 
quantitative  restrictions  for  textile  products,  Regulation  No  1541/98  would  remain  in  force. 
Proof of origin for textile products would therefore continue to be required for release in free 
circulation, although there is no longer any risk that the origin of goods could be used in order 
to circumvent import restrictions. This solution appears not to be in line with the consistency 
of Community law and the recognized need for its simplification. It should also be noted that 
businesses  are  very  concerned  about  the  burden  of  existing  regulation  pointing  out  that  the 
costs of certification of origin are higher than an effective system of regulation should impose. 

The  repeal  of  Regulation  No  1541/98,  on  the  contrary,  will  contribute  to  improve  the 
regulatory environment for industry and to align the rules relating to imports of textiles with 
those  for  other  industrial  products,  for  which  presentation  of  certificates  of  origin  is  not 
compulsory.  In  all  cases  origin  is  declared  in  the  single  administrative  document  to  be 
presented for the release for free circulation of goods. 

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3. LEGAL ELEMENTS OF THE PROPOSAL  

Summary of the proposed action 

It is proposed to repeal Council Regulation (EC) No 1541/98 and amend Council Regulation 
(EEC) No 3030/93. 

Legal basis 

Article 207(2) of the Treaty on the Functioning of the European Union is the legal basis of 
this proposal. 

Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Union.  The  subsidiarity  principle 
therefore does not apply. 

Proportionality principle 

The proposal conforms to the principle of proportionality since the only way to repeal Council 
Regulation (EC) No 1541/98 and amend Council Regulation (EEC) No 3030/93 is adopting a 
Regulation of the European Parliament and of the Council. 

The proposal does not imply any burden on the customs authorities. 

Choice of instruments 

Proposed instrument: Regulation of the European Parliament and the Council. 

Other means would not be adequate for the following reason: the proposal aims at repealing a 
Council  Regulation,  only  a  Regulation  of  the  European  Parliament  and  the  Council  may  be 
used. 

4. BUDGETARY IMPLICATION 

The  proposal  has  no  implication  for  the  Union  budget  as  it  does  not  involve  any  additional 
expenditure. 

5. ADDITIONAL INFORMATION 

Simplification 

The  proposal  provides  for  simplification  of  legislation  and  reduction  of  administrative 
burdens. 

European Economic Area 

The proposed act does not concern an EEA. 

Entry into force 

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For reasons of legal consistency, the repeal of Council Regulation (EC)  No 1541/98 should 
enter into force at the time of related amendments of Council Regulation No (EEC) 3030/93 

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2010/0272 (COD) 

Proposal for a 

REGULATION (EU) No  
OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

repealing Council Regulation (EC) No 1541/98 on proof of origin for certain textile 
products falling within Section XI of the Combined Nomenclature and released for free 
circulation in the Community, and on the conditions for the acceptance of such proof 
and amending Council Regulation (EEC) No 3030/93 on common rules for imports of 
certain textile products from third countries 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Council  Regulation  (EC)  No  1541/981  provides  for  the  rules  on  proofs  of  origin  for 
certain textile products originating in third countries with which the Union concluded 
bilateral  agreements,  protocols  and  other  arrangements,  or  for  textile  products  for 
which the Union introduced a system of surveillance in order to monitor the trends of 
imports of products, or applies special safeguard measures. 

Since the adoption of Regulation (EC) No 1541/98 a number of major developments 
have  taken  place.  The  import  measures  applied  by  the  Union  to  textile  products  of 
Section XI of the Combined Nomenclature have gradually decreased in their number 
and impact and are now of a residual nature, in terms of both Combined Nomenclature 
headings covered and countries concerned. 

Council  Regulation  (EEC)  No  2913/92  of  12  October  1992  establishing  the 
Community  Customs  Code  provides  in  Article  26  that  the  customs  authorities  may 
require any additional proof of origin. 

In  all  cases  box  34  of  the  single  administrative  document,  completed  in  accordance 
with  the  single  administrative  document  explanatory  notes  in  Annex  37  to 
Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for 
the  implementation  of  Council  Regulation  (EEC)  No  2913/92  establishing  the 

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OJ L 202, 18.7.1998, p. 11. 

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Community Customs Code2 must contain the country of origin for imported products. 
This  indication  is  subject  to  the  normal  verification  procedures,  including  the 
possibility  for  the  customs  authorities  to require  additional  proof,  where  appropriate, 
on a case by case basis. 

The  obligation  to  provide  additional  proof  of  origin,  on  a  systematic  basis,  for  the 
textile  products  in  question  has  become  disproportionate  in  relation  to  its  aim  of 
supplementing certain import measures which have themselves practically fallen into 
disuse and thus places unnecessary burdens on traders. 

Given  that  the  products  in  question  can  be  imported  without  any  constraints  and  the 
above-mentioned  possibilities 
require  additional 
information, notably in case of doubt upon importation, there is no longer necessity for 
maintaining  the  additional  administrative  requirements  provided  for  in  Regulation 
(EC) No 1541/98. 

for  customs  authorities 

to 

Regulation (EC) No 1541/98 should therefore be repealed. 

Council  Regulation  (EEC)  No  3030/933  providing  that  the  proof  of  origin  in 
accordance with Regulation (EC) No 1541/98 may be accepted in certain cases should 
be amended accordingly, 

(5) 

(6) 

(7) 

(8) 

HAVE ADOPTED THIS REGULATION: 

Regulation (EC) No 1541/98 is repealed. 

Article 1 

Article 2 

In the first subparagraph of Article 1 (6) of Regulation (EEC) No 3030/93 the second sentence 
is deleted. 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 3 

2 
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OJ L 253, 11.10.1993, p.1. 
OJ L 275, 8.11.1993, p. 1 

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This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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