CELEX: 51993PC0010
Language: en
Date: 1993-01-19
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 636/82 establishing arrangements for economic outward processing traffic applicable to certain textiles and clothing products re-imported into the Community following working or processing in certain third countries

COMMISSION OF THE EUROPEAN COMMUNITIES
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                                                                   C0MC93) 10 final
                                                                   Brussels, 19 January 1993
                                                    Proposal for a
                                             ftnilNfllL REGIIIATION (EEC)
                          amending Regulation (EEC) No. 636/82 establishing arrangements for
                        economic outward processing traffic applicable to certain textiles and
                              clothing products re-Imported Into the Coinaiunity following
                                   working or processing in certain third countries
                                           (presented by the Commission)
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 ---pagebreak---                              EXLANATORY MEMORANDUM
 Council Regulation (EEC) No. 636/82 of 16 March 1982(1) created economic
outward processing arrangements applicable to certain textile 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 are allowed to reimport, are
 distributed by the competent authorities of each Member State within the
 l imits "ô"? the annual       quant it ies ôT compensât ing  products   whose
 reimportation the Member State concerned is allowed to authorize.
As it has been outlined in the Communication of the Commission on the
 completion of the International Market in trade in textile and clothing
products (Doc, 7006/92), as approved by the Council, the establishment of
the Internal Market in 1993 will result in the creation of an area without
 internal frontiers comprising inter alia, the free movement of goods and
the elimination of disparities as regards imports 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 objectif, it is proposed to proceed in a two-tier
process:
       As a first step, to be introduced by 1st January 1993, the existing
       national OPT quotas would be replaced by Community quotas, open to
       those operators eligible under R 636/92 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 informatic system to be established between Member States and the
       Commission, they will 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
       authorizat ion.
       As a second step, to be implemented by the end of 1993 at the
        latest, the rules for implementation of Reg. 636/82. in particular
       the admission of beneficiaries, which up to now is not uniform in
       the different Member States, will have to be harmonized. Other
       outstanding issues like the management of the 14% derogation for
       third countries' fabrics will also have to be addressed.
The purpose of this proposal is to introduce the modifications of the first
step.
The proposed regulation is also intended to adapt the list of textile
products (categories) to which Council Regulation (EEC) No. 636/82 applies
resulting from the classification of textiles products based on the
Combined Nomenclature.
(1)    JO n- L 76 du 20.3.1982, p. 1.
 ---pagebreak---                                                ^ I
         Proposal for a Council Regulation (EEC) No. ... of
      amending Regulation (EEC) No. 636/82 estabIishing arrangements for
    economic outward processing traffic applicable to certain textiles and
           clothing products re—imported Into the Community following
                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 of the Commission,
Whereas Council Regulation (EEC) No. 636/82 ( 1 ^. as last amended by the Act
of   Accession   of  Spain  and  Portugal   of  12.6.1985^),   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, consequently,     the  import  arrangements  in the Community   for the
textile and    ciotning sectors as regards certain      third countries  contain
specific measures applicable to products resulting from outward processing
operations;
(1)    OJ No. L 76 of 20,3.1982, p. 1.
(2)    OJ No. L 302 of 15.11.1985, p. 139
 ---pagebreak---                                       - 3 -
 Whereas under Council Regulation (EEC) No. 4136/88 of 22 December 1988 on
 the  common  arrangements   applicable  to   importations    of   certain   textile
 products originating   in third countries,C ) as       last amended by Council
                                                     c2
 Regulation (EEC) No. 362/92 of 19 December 1991 >, the classification of
 textile products (categories) was based on the Combined Nomenclature;
 Whereas  it is,  therefore,   necessary that the    list of products to which
 the provisions of this Regulation apply should be        in conformity with that
 classification;
 Whereas the present Regulation should not affect the reimportations into
 the Community of products after working or processing in third countries on
 the  basis   of  prior  authorizations     issued  before     the   date   of   its
 applications:
Whereas    it  is both  necessary   and  appropriate    to   adopt    the  proposed
measures in order to ensure an efficient Community administration of the
outward economic traffic    arrangements; whereas this type of administration
 requires close cooperation between the Member states and tne Commission-,
HAS ADOPTED THIS REGULATION:
(1)   OJ NO. L 387 of 31.12.1988. p. 42.
(2)   OJ No. L 45 Of 20.2.1992. p. 1.
 ---pagebreak---                               J^T u.. t C f £ . »..
Councli aeguI at I on CH^C) 535782. Isanendsc as follows:
i.   m Article i r paragraph 1, the words -50 to 52 of tie Common
     Customs Tariff" are replzced by the words "50 to 63 of the
     combined Nomenclature**
z.  At the end or Article 2, paragraph 2 Ca) the foi lowing text
     )$ added :
     -Tne Counc?;^ acting on a proposal or the Coranission, shari
     review the conditions for the application of this sub-
     paragraph before the end of ?SS3.-
3-   in Article 2, paragraph 2Cb}, the words "annuar quantities
     fired by xne eoapetem authorities of the Member state where
    the application is aade* are replaced by the words "annual
    quantities fixed at Co»ounity level".
4*  Article 2, paragraph 2Cc)a fs amended as follows c
    -   At. the end of the first sub-paragraph the following test
        is added z
        "The Council, acting on a proposal of the Commission
        snaU review the conditions for the application of This
        paragraph before the end cf 1993".
    -    ir. the fjrst sentence of the second sub-p«ragra.ph the
        word "quarter-jy is replaced by the word "weeicJy".
    -   At the end of the -second" &ib ~ paragraph the following test
        is added =
        •The commission saaH ensure that tee u«3t of 14% a©
        foreseen above will not be exceeded at the Community
        level-.
 ---pagebreak--- 5- Article 3 5s replaced by the following text =
   •1.     The Counol i shall establish at Comsmnity tevei the
        • annual quantities of compensating procticis whose
           reimportation may be authorised under the specific
           ïnport arrangements referred to In Article \C3).
    2*    The competent authorities shall distrisute the annuel
           quantities referred to in paragraph i above among _tha
          ceneflclarles as defined In Article 2.
    3-    Without Drejudïce to Article 2 (3), this distribution
          shall he Dado whilst ensuring that the ooiectlv* of
          maintaining the industrial activity of the beneficiary
           in the Community, as laid down In Artie re 2 C2JCaJ. Is
          respected both as regards the nature of th© products
          and their quantities expressed ir> physical units or
          added value.
    4.    The annual quantities of compensating products shati
          be distributed asons the beneficiaries on the basis
          of their demands» and supporting valid contracts*
          The competent authorities shall allocate th»
          quantities of compensâtIng products on a fîrst-coae,
          first-served basis. This allocation will ce done by
         maximum asounte for each category and for each third
          country concerned. if a now application is &ubaritted,
         additional amounts for each category and for each
         third country concerned may only pe allocated by the
         competent authorities to a particular beneficiary when
         the previously authorised emdunt for that beneficiary
         has been effectively utilised by c t least SOX.
      5* Notwithstanding paragraphs 3 and 4, each beneficiary
         shall be entitled with priority to an amount eauat to
         the total quantities of compensâtIng 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 years preceding the date of
         application of the present Regulation.
     $. Ouant it les of compensating products rererr^   to In
         paragraph S which have not been utilised by-the
         beneficiaries and which naye not $&en claimed by the»
         by 1 July of each caienear year, shau be re-eliocated
         in accordance with" the provisions of paragraph •£ among
         a n other beneficiaries as defined in Article 2 (23 -
 ---pagebreak---                                    - ( •  -
          7. if necessary, it aey he decided in accordance with
             the procedure laid down in Article :2„ that z certain
             perccazzg& of the annual cuantlties or compensating
             products may be ar located wizu priority to persons
             defined in Article 2 C2KaJ» tafclng Into account the
             value added of their production and/or the level of
             employment In their production.
          8. Provisions relating to the application of this Article
             shell be adopted in accordance with the procedures
             laid down in Article 11 before 1 January 7593.•
  6. The first paragraph of Article 4 is replaced by tne
     foi Jowîng text -.
      "1.
             The competent authorities shall malce sure that the •
             allocated prior authorisations do not exceed the total
             annual quantiiles of compensating products estebfished
             at Commun Ity level. For this purpose, the competent
             author 1 tes shall commun 1 cats to tne commission the
             quantities requested by the persons concerned before
             granting these authorisations ïn order to verify that
             these quantities are avai(ablewithin the total
             Quantities  established at Community fevei.*
7.   in Article 7, the first sub-paragraph is deleted.
8.   rn Article 5 r paragraph 2 is deleted.
9.   In Article ?V# the second sub-paragraph Is replaced by the
     fol lowing text z
     -Council Regulation CE£C) n~ 2473/56 of 24 July 1986 on
     outward processing relief arrangements z.ne the standcrd
     exchange system^1 ), as wen as any provisions taicen for its
     application, shall net be affected"-
(1) O.J. n- L 212 of z August 19S5,
 ---pagebreak---    f                                                -   •? -
*m  • '2"
           10,     The Annex t o the Regulation i s amended as f o l l o w s :
                   -  The i ï s t of c a t e g o r i e s i s replaced by t h e f o l l o w i n g
                       1 ist=
                       •-4. « . 8 . 7 , 8 , 10» 1 2 , 1 3 , 1 4 , 1 5 , 1 5 , 17» I S ,    21,
                      24. 26, 27, 28. 29. 3 1 , 68. 65, 7 0 . 7 2 , 7 3 , 7 4 ,            75,
                      76. 77, 7 8 . 53, 85, 36, 87, 9 1 . "
                   «  footnote n" 1 Is replaced by the following text
                      *Ci} Categories refer to those l i*tec in Annex 1 to
                      Council Regulation <E£CD n" 768/88 (OJ n* L $4 of
                      29.3.19883 and to Council Regulation CEHC3 n* $69/92
                      CO.J. n* L 45 Of 20-2.1992)."
                  -   At the end of footnote n* 2, first sub-paragraph, the
                      following text is added:
                      "The Council, acting on a proposal of the Commission,
                      shall review the conditions for the application of
                      this paragraph before the end of 1993.-
                  -   At the beginning of the first sentence of footnote n~
                      2, second sub-paragraph, the words mzvery wee**..- «re
                      added.
                  -   At the end of footnote n' 2 the following text is
                      added ?
                      "The Coaaission shall ensure that ti\e Halt of 7% as
                      foreseen above will not be exceeded at the Community
                      level".
                                             Article 2
          The present Regulation shall not affect the reimportation into
          the European Community of products after wording or processing in
          third countries on the basi* of prior authorization» issued
          before 1 January 1993.
                                             Article 3
          This Regulation shall enter into force on the third day following
          its publication in the Officiât journal of the European
          Communities, it shall apply from 1 January 1993.
          This Regulation shall be binding in its entirety and directly
          applicable in all Member state's-
          Pone zt    Brussels.
                                                                       For ths Counci 1
                                                                       The President
 ---pagebreak---                                                                                     "0
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