CELEX: 51980PC0656
Language: en
Date: 1980-11-03
Title: DRAFT COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of a Community tariff quota for raw silk (not thrown), falling within heading No 50.02 of the Common Customs Tariff (1981)#DRAFT COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of a Community tariff quota for yarn, entirely of silk, other than yarn of noil or other waste silk, not put up for retail sale, falling within heading No ex 50.04 of the Common Customs Tariff (1981)#DRAFT COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of a Community, tariff quota for yarn, spun entirely from silk waste other than noiI, not put up for retail sale, falling within subheading 50.05 A of the Common Customs Tariff (1981) (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 656
Vol. 1980/0208
 ---pagebreak--- Disclaimer
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                         r
                                              COM(80)656 final
                                              Brussels - 3rd November 1980
                             DRAFT COUNCIL REGULATION ( EEC )
       opening, allocating and providing for the administration of a
         Community tariff quota for raw silk ( not thrown ), falling
       within heading No 50.02 of the Common Customs Tariff ( 1981 )
                            DRAFT COUNCIL REGULATION ( EEC )
       opening , allocating and providing for the administration of a
  Community tariff quota for yarn , entirely of silk , other than yarn of
     noil or other waste silk , not put up for retail sale , falling
       within heading No ex 50.04 of the Common Customs Tariff ( 1981 )
                           DRAFT COUNCIL REGULATION ( EEC )
     opening, allocating and providing for the administration of a
     Community, tariff quota for yarn ,       spun entirely from silk waste
        other than not I , not put up for retail sale , falling within
          subheading 50.05 A of the Common Customs Tariff         ( 1981 )
                          ■I       : :
                       . /
                      . /
                 (presented by the Commission to the Council )
C0M(80 ) 656 final
 ---pagebreak---                                 EXPLANATORY MEMORANDUM
The situation as regards raw silk -, yarn entirely of silk and yarn spun
entirely from silk waste other than noil was reviewed once again by Com-
ι                                ,
mission staff together with experts from the Member States at a meeting of
 the Group on Economic Tariff Problems organized by the Commission in April
  198Q .
  As in previous years , there was a general consensus in favour of maintaining
 things as they were .
The following emerged from these discussions :
  1 . Raw silk ( not thrown ) -
  For some years the volume of Community output had been extremely low and
               \
production continues only in some regions of Italy .
The reduction may be put down to several factors , one being that production
 came from small holdings that ware not sufficiently rationalized and moder­
nized and another that some non-*member countries , especially the People 's
Republic of China , offered for sale on the Community market very large
quantities of high-quality products very advantageous prices .
The Community had some time ago decided that it was advantageous for the
EEC to maintain its own production of raw silk .       As a result efforts have
been made in Italy to modernize and rationalize this activity by investing
several tens of thousands of million Italian lira , with aid either from
the Community ( EAGGF)'or from the State , the regions , the " Cassa del
Mezziogiorno " and individual breeders .     These efforts were designed to
bring about a gradual increase in production in the future .      V
                                             1 .
In view of this situation it appears that an extension of the quota scheme
now in force would secure the "Community 's supply and allow trends in Com­
munity production to be monitored without jeopardizing its future prospects .
 ---pagebreak--- According to current, estimates , the level of Community production in 1981
would be close to that expected for 1980 , about 40 tonnes .
On the basis of Member States' estimates , their import requirements may be
put at a total volume of 4 800 tonnes .   This has therefore been taken as
the figures for the initial quota in the attached draft regulation , but
the possibility of subsequent adjustments in the course of the quota year
are not ruled out .                          ,   •
                                           »   t
2 . For yarn entirely of silk or spun enti rely from silk waste other than
    noi I
These are specific qualities of yarn which are classified under tariff
heading ex 54.04 and sub-heading 50.05 A but for which there are no statis
tical subdivisions .  In the absence of statistical data , it was necessary
to rely on Member States' estimates as to their import requirements to >
determine the volume of the quotas .   For 1981 , these requirements total
60 tonnes for silk yarn and 270 tonnes for yarn spun entirely from silk
waste other than noil , and these figures have been taken as the quota
volumes in the attached draft regulations .
With regard to the quota duties , the Commission has no date justifying a
change in the 2.5% duty adopted in 1980 for silk yarn , exemption from duty
for raw silk and yarn spun entirely from silk waste other than noil is
once again proposed for 1981 .
 ---pagebreak---                                                           4
                                                       Oraft
                                  COUNCIL REGULATION (EEC)
               opening, allocating and providing for the administration of a Community tariff
               quota for raw silk (not thrown), falling within heading No 50.02 of the Common
                                                 Customs Tariff ( 198 1*                ,                    '
JHE COUNCIL OP THE EUROPEAN                                    Whereas, in view of these factors, the initial percen­
 COMMUNITIES,                                                  tage shares in the quota volume for 1980 can be
                                                               expressed approximately as follows :
 Having regard to the Treaty establishing the European
Economic Community, and in particular Article 28                        Bénélux'                               0.11
thereof,        *      ,                                                Denmark ,                              0.11
                                                                        Germany _                              4.59
                                                                                                                     - 0.11
                                                                        France                              22.89
Having regard to the draft Regulation submitted by                      Ireland                                0.11
the Commission ,                                                        Italy                               68.65
                                                                        United Kingdom                         3.43
Whereas Community production of' raw silk (not
thrown) falling within heading No 50.02 of the
Common Customs Tariff does not cover the needs of
the user industries ; whereas the supply of the latter'        Whereas, to take account of future trends in imports
                                                              of the product in question in all the Member States,
therefore depends to a great extent on imports from            the quota should be divided into two instalments, the
non-member countries ; whereas it is in the interests
                                                               first being distributed among the Member States and
of the Community to suspend totally the Common
Customs Tariff duty on the product in question,
                                                               the second to form a reserve intended to cover any
within the limits of an appropriate Community tariff          subsequent requirements of Member States who have
                                                              used up their initial shares ; whereas, in order to
quota ;
                                                              ensure a certain degree pf security for importers of
                                                              each Member State the first instalment should in this
                                                              case be fixed at about 9CP/° of the total quota;'
Whereas it is desirable at the present time to avoid
final measures which could lead to the halting of
action taken in the sector over a number of years to
increase Community production ; whereas, under such
conditions, it is advisable to extend-^ the tariff system '    Whereas the initial shares may be used up at different
in foTce in 1980 ;                                             rates : whereas, to provide for this eventuality and to
                                                               avoid disruption of supplies, any Member State which .
                                                               has almost used up . its initial share should , dray/ an
Whereas Community production does not appear to                additional share from the reserve ; whereas this should
have changed considerably when compared with                   be done by tfach Member State when each of its addi­
 19 80; whereas, taking account of this production and         tional shares has been almost used up, and so on as
of the forecasts for 1 98 1 the imports needed to satisfy      many times as the reserve allows ; whereas the initial
 consumption within the Community can be estimated             and additional shares should be valid until the end of
 at 4 8;'0 tonnes ; whereas the fixing of the quota            the quota period ; whereas this form of administration
 amount at thils level docs not preclude an adjustment         requires close collaboration between Member States
 within the quota period ;                                     and the Commission , which latter must, in particular,
                                                               be able to keep a record of the extent to which the
                                                               tariff quota has been used up and to inform the
 Whereas equal and continuous access to the quota              Member States accordingly ;                       -
 should be ensured for all Community importers and
 the rate laid down for the tariff quota should be
 applied consistently to all imports of the product in
 question until the quota is used up ; whereas a system         Whereas if, at a given date in the quota period, a
 of utilization of the Community tariff quota, based on .       considerable quantity of .the initial share is left over in
 an allocation between the Member States concerned,          ' a Member State, it is essential that that Member State
 would, in the light of the principles outlined above,          should return a significant proportion to the reserve,
 appear consistent with the Community nature of the             so as to avoid a part of the quota remaining unused in
 quota ;                           ^                            one Member State when it could be used in others ;
 ---pagebreak---       Whereas, since*, the Kingdom of Belgium , the
      Kingdom of the Netherlands and the Grand Duchy of ^
      Luxembourg arc* united within and jointly represented *
      by « the    Benelux Economic Union, any measure •
     concerning the administration of the shares allocated ■■
      to that economic union may be carried ; out by any
     one, of its mcmpcrs,
                        *•
                                    , J '      ' - ■»       "■?
                     : !          ■ ■ ■?              ■■ "■}>
      HAS ADOPTED THIS REGULATION :
                              Article I
1 . From I January to 31 December I9ff], the auto­
     nomous duty of the Common Customs Tariff for raw
     silk (not thrown), falling within heading No 50.02,
     shall be totally suspended within a Community tariff
     quota of 4 gOO tonnes.
 2 . Within the limits of this tariff quota ,
     Greece shall apply duties calculated in
     accordance with the relevant provisions
     in the Act of Accession 0 f that country
                              Article 2
    1.    A first instalment of 4 370 tonnes of this
    Community tariff quota shall be allocated among the
    Member States. Member States' shares, which, subject
    to Article 5, shall be valid until 31- December 1981
    shall be as follows :
                                           tonnes
            Bénélux                               5
            Denmark                               5
            Germany        Greece            200 5
            France                         1 000
            Ireland                               5
            Italy               >          3000
            United Kingdom                   150
    2.    The second instalment of4 ZO tonnes shall consti­
    tute the reserve .
     0J Nd L 291 , 19.11.1979 , p. 17 .
 ---pagebreak---                                                  - 6 -
                          Artide 3
 1.      1 / 90 % or more of a Member State's initial share
as fixed in Article 2 ( 1 ), or of that share minus any
portion returned to the reserve where Article 5 has
been applied, has been used up, that Member State
shall forthwith, by notifying the Commission, draw a
second share, to the extent that the reserve so permits,
equal to 10 % of its initial share, rounded up as neces­
sary to the next whole number.
2. If, after its initial share has been used up, 90 %
or more of the second share drawn by a Member State
has been used up, that Member State shall forthwith,
in the manner and to the extent provided in para­
graph 1 , draw a third share equal to 5 % of its initial
share .
3. If, after its second share has been used up, 90 %
or more of the third share drawn by a Member State
  has been used up, that Member State shall forthwith,
  in accordance with the same conditions, draw a fourth
  share equal to the third.
  This procedure shall apply until the reserve is used
  up.
  4. By way of derogation from paragraphs 1 , 2 and
  3, Member States may draw lesser shares than those
  specified therein if there are grounds for believing
  that those specified may not be used in full. They
  shall inform the Commission of their reasons for
  applying this paragraph .
                            Artide 4
   Additional shares drawn pursuant to Article 3 shall be
   valid until 31 December 1981 .
                               ν
                            Artide $
    Member States shall return to the reserve, not later
    than 1 October 198 \ the unused portions of their
    initial shares which, on 15 September 198 "], are in
    excess of 30 % of the initial amounts. They may
    return a greater - portion if there are grounds for
    believing that such portion may not be used up.
 ---pagebreak--- Member States shall notify- the Commission, not later
than 1 October 198*], of the total quantities of        raw
silk imported up to and including 15 September 198 1
and charged against the Community quota and of any
portion of their initial shares returned to the reserve.
                        Article 6
The Commission shall keep an account of the shares
opened by the Member States pursuant to Articles 2
and 3 and , as soon as it has been notified, shall inform
each State of the extent to which the reserve has been
used up.
It shall inform the Member States, not later than 5
October 1981 , of the amount in the reserve after
amounts have been returned thereto pursuant to
Article 5 .
It shall ensure that the drawing which exhausts the
reserve docs not exceed the balance available and to
this .end, shall notify the amount of that balance to
the Member State making the last drawing.
                        Article 7
1.    Member     States   shall   take    all    appropriate
measures    to  ensure   that   additional    shares  drawn
pursuant to Article 3 arc opened in such a way that
imports may be charged without interruption against
their aggregate shares of the Community quota.
 ---pagebreak--- 2. Member States shall ensure that importers of the                                Article 9
product in question established in their territory have
free access to the shares allocated to them .
3. Member States shall charge imports of the                Member States and the Commission shall cooperate
product in question against their shares as the product     closely ' to ensure that this Regulation is complied
is entered with the customs authorities for free circula­   with.
tion . -
4. The extent to which a Member State has used up
its share shall be determined according to the condi­
tions in paragraph 3.                                   .
                                                                                   Article 10
                       Article 8
At the Commissions request, Member States shall
inform it of the imports actually charged against their     This Regulation shall enter into force on 1 January
shares.                                                     1981 .
             This Regulation shall be binding in its entirety and directly applicable in all Member
             States.
             Done at Brussels.
                                                                         For the Council
                                                                          The President
 ---pagebreak---                                                      - 9 -
                                                    Draft
                                 COUNCIL REGULATION (EEC)
              opening , allocating and providing for the administration of a Community tariff
              quota for yarn , entirely of silk , other than yarn of noil or other waste silk, not
              put up for retail sale, falling within heading No ex 50.04 of the Common
                                               Customs Tariff ( 1981)
THE COUNCIL OF THE EUROPEAN                                    down for the tariff quota should be applied consist­
COMMUNITIES,                                                   ently to all imports of the product in question until
J
                                                               the quota is used up ; whereas a system of utilization
                                                               of the Community tariff quota, based on an allocation
Having regard to the Treaty establishing the European          between the Member States concerned , would, in the
Economic Community, and in particular Article 28               light of the principles outlined above, appear
thereof,
                                                               consistent with the Community nature of the quota ;
Having regard to the draft Regulation submitted by
the Commission ,
                                                           j Whereas, in view of these factors and of the forecasts
Whereas silk yarn is produced in the Community ;           i which it is possible to make, the initial percentage
whereas, although that production could cover all the         shares in the quota volume can be expressed approxi­
                                                              mately as follows :
Community requirements by reason of its overall
volume, this docs not apply with regard to yarn
entirely spun from silk ; whereas there is, as a result,    i                      !
an insufficient supply in the Community ;                             Bénélux                      2.08
                                                                      Denmark                      2.08
Whereas consequently Community supply for those                       Germany     Greece         20.83_2.08
qualities of yarn depends to a considerable extent on                 France                     25
imports ; whereas full application of the Common                      Ireland                      2.08
Customs Tariff duty would result in those products                    Italy                      41 . 67
being subjected to a considerable* customs charge          j          United Kingdom               4.18
while products manufactured from silk yarn face
powerful competition from similar products manufac­
tured from other material ; whereas an insufficient
supply, added to competition at finished product level,
might have adverse effects on the Community's
processing industries ;
Whereas the Common Customs Tariff duty applicable
to imports of the silk yarn in question in 1981 is 6.5% ;
whereas, when fixing the quota duty, it is appropriate
to take into account, on the one hand , the situation of
the Community silk yarn producing industry and, on
the other, that of the silk yarn processing industries
with regard to their supplies on favourable terms ;
whereas a quota duty of 2-5 % could best meet the
 abovemcntioncd requirements ;
Whereas the trends in imports during recent years
suggest that the import requirements for the yarns in
question might be in the region of 60 tonnes for
 1981 ; whereas the opening of a Community tariff
 quota of that volume is unlikely to harm Community
 production ;
 Whereas equal and continuous access to the quota
 should be ensured for all importers and the rate laid
 ---pagebreak---                         - 10
Whereas, to take account of future trends in imports
of the products in question, in the various Member
States, the quota should be divided into two instal­
ments, the first being distributed among the Member
States and the second to form a reserve intended to
cover any subsequent requirements of Member States
who have used up their initial shares ; whereas in
order to ensure a certain degree of security for impor­
ters of'each Member State the first instalment should
in this case be 80 % of the total quota ;
Whereas the initial shares may be used up at different
rates ; whereas, to provide for this eventuality and to
avoid disruption of supplies, any Member State which
has almost used up its initial share should draw an
additional share from the reserve ; whereas this should
be done by each Member State when each of its addi­
tional shares has been almost used up, and so on as
many times as the reserve allows ; whereas the initial
and additional shares should be valid until the end of
the quota period ; whereas this form of administration
requires close collaboration    between Member States
and the Commission, which       latter must, in particular,
be able to keep a record of     the extent to which the
tariff quota has been used       up and to inform the
Member States accordingly ;
Whereas if, at a given date in the quota period, a
considerable quantity of the initial share is left over in
a Member State, it is essential that that Member State
should return a significant proportion to the reserve,'
so as to avoid a part of the quota remaining unused in
one Member State when it could be used in others ;
Whereas, since the Kingdom . of Belgium, the
Kingdom of the Netherlands and the Grand Duchy of
Luxembourg are united within and jointly represented
by the Benelux Economic Union, any measure
concerning the administration of the shares allocated
to that economic union may be carried out by any"
one of its members,
HAS ADOPTED THIS REGULATION :
                         Article /       ,
 From 1 January to 31 December 1981 the auto­
 nomous duty of the Common Customs Tariff for yarn
entirely of silk, other tha^yarn of noil or other waste
silk, not put up for retail sale, falling within heading
 No ex 50.04 shall be suspended at 2-5 % within a
Community tariff quota of 60 tonnes.
 ---pagebreak---                                  - 11    -
2 . Within the iiinlts of this tariff quota ,
     Greece shall apply duties calculated in
    accordance with the relevant provisions
    "in the Act. of Accession of that country''
                          Anide 2
 I.    A first instalment of 48tonnes of this Commu­
 nity tariff quota shall be allocated among the Member^
  States. Member States' shares which, subject to Article
  5, shall be valid until 31 December 1981 , shall be as
  follows .:
                                          m tonnes
          Bénélux                             1
          Denmark                             1
          Germany     Greece                 10   1
          France                             12
          Ireland                             1
          Italy                             20
          United Kingdom                      2
  2.    The second instalment of 12 tonnes shall consti­
  tute the reserve.
                          Article 3
  1.    If 90 % or more of a Member State s initial share
  as fixed in Article 2 ( 1 ), or of that share minus any
  portion returned to the reserve where Article 5 has
  been applied, has been used up, that Member State
  shall forthwith, by notifying the Commission, draw a
  second share, to the extent that the reserve so permits,
  equal to 10 % of its initial share, rounded up as neces­
  sary to the next whole number.
    OJ No I 291 , 19.1 1 . 1979, p. 17
 ---pagebreak---                                12 -
2.    If, after its initial share has been used up, 90 %
or more of the second share d^awn-by a Member State
has been used up, that Member State shall forthwith,
in the manner and to the extent provided in para­
graph 1 , draw a third share equal tb 5 % of its initial
share.
3. If, after its second share has been used up, 90 %
or more of the third share drawn by a Member State
has been used up, that Member State shall forthwith,
in accordance with the same conditions, draw a fourth
share equal to the third.
This procedure shall apply until the reserve is used
U P-
4.    By way of derogation from paragraphs 1 , 2 and
3, Member States may draw lesser shares than those
specified therein if there are grounds for believing
that those specified may - not be used in full . They
shall inform the Commission of their reasons for
applying this paragraph .
                           Article 4
Additional shares drawn pursuant to Article 3 shall be
valid until       December 198 1 -
 ---pagebreak---                                                               13 -
                          A rtide 5 .                             pursuant to Article 3 are opened in such a way that
Member States shall return to the reserve, not later
                                                                  imports may be charged without interruption against
                                                                  their aggregate shares of the Community quota.
than I October 1981, the unused portions of their
initial shares which , on 15 September 198 ^, are in              2.      Member States shall ensure that importers of the
excess of 20 % of the initial amounts. They may                   product in question established in their territory have
return a greater portion if there are grounds for                 free access to the shares allocated to them .
believing that such portion may not be used up.
Member States shall notify the Commission, not later              3.      Member States shall charge against their shares
than 1 October 198 1, of the total quantities of silk             imports of the product in question as and when the
yarn imported up to and including 15 September                    product is entered in with the customs authorities for
 198 1 and charged against the Community quota and                free circulation .
of any portion of their initial shares returned to the
reserve.                                                          4.      The extent to which a Member State has used up
                                                                  its share shall be determined on the basis of the
                          Article 6                               imports charged in accordance with paragraph 3.
The Commission shall keep an account of the shares
opened by the Member States pursuant to Articles 2                                        Article 8
and 3 and, as soon as it has been notified, shall inform
each State of the extent to which the reserve has been            At the Commissions request, Member States shall
used up.                                                           inform it of the imports actually charged against their
                                                                  shares.
It shall inform the Member States, not later than 5
October 198 1 of the amount in the reserve after
amounts have been returned thereto pursuant to                                             Article 9
Article 5.
It shall ensure that the drawing which exhausts the                Member States and the Commission shall cooperate
reserve does not exceed the balance available and to               closely to ensure that this Regulation is complied
this end, shall notify the amount of that balance to               with .
the Member State making the last drawing.
                                                                                          Artide 10
                          Article 7
I.     Member      States  shall   take    all    appropriate     This Regulation shall enter into force on 1 January
measures    to   ensure   that   additional    shares  drawn        1981 .
               This Regulation shall be binding in its entirety and directly applicable in all Member
               States.
               Done at Brussels,
                       *                                                       For the Council
                                                                                 The Président
 ---pagebreak---                                                      - 14 -
                                                     Draft
                                    COUNCIL REGULATION (EEC)
                 opening, allocating and providing for the administration of a Community tariff
                 quota for yarn , spun entirely from silk waste other than noil, not put up for
                 retail sale, falling within subheading 50.05 A of the Common Customs Tariff
                                                        198 1 )
THE COUNCIL OF THE EUROPEAN                                   Whereas equal and continuous access to the quota
COMMUNITIES,                                                  should - be ensured for all importers and the rate laid
                                                              down for the tariff quota should be applied consist­
                                                              ently to all imports of the product in question until
Having regard to the Treaty establishing the European         the <!| uota is used up ; whereas a system of utilization
Economic Community, and in particular Article 28              of the Community tariff quota, based on an allocation
thereof,                                                    • between the Member States concerned, would, in the
                                                              light of the principles outlined          above, appear
                                                              consistent with the Community nature of the quota ;
Having regard to the draft Regulation submitted by
the Commission ,-
                                                              Whereas, in view of these factors and of the forecasts
                                                              which it is possible to make, the initial percentage
Whereas yarn spun from waste silk is produced in the          shares in the quota volume can be expressed approxi­
                                                              mately as follows :
Community ; whereas, although that production
should cover all the Community requirements by
reason of its overall volume, this does not apply with
regard to yarn entirely spun from waste silk ; whereas
there is, as a result, an insufficient supply in the                   Bénélux                  2.08
Community ;                                                            Denmark               .  2.08
                                                                       Germany Greece          20.83     2.08
                                                                       France                  25
Whereas, consequently. Community supplies of those
                                                                       Ireland _   , .          2.08
qualities of yarn depend to a considerable extent on
imports ; whereas full application of the Common                       Ita'y                   41.67
Customs Tariff duty would result in those products                     United Kingdom           / ig
being subjected to a considerable customs , charge
while products manufactured from silk yarn face
powerful competition from similar products manufac­
tured from other material ; whereas an insufficient
supply, added to competition at finished product level,
might have adverse effects on the Community's
processing industries ;
Whereas the Common Customs Tariff duty applicable
to imports of the yarn spun from waste silk in ques­
tion is 3- 4% ; whereas, when fixing the quota duty, it
is appropriate to take into account, on the one hand,
the situation of the Community industry producing
yarn spun from waste silk and, on the other, that of
 the industries processing yarn spun from waste silk
with regard to their supplies on favourable terms ;
 whereas a zero quota duty could best meet the above-
 mentioned requirements ; -
 Whereas the trends in imports in recent years suggest
 that Community import requirements for the yarns in
 question might be in the region of 270 tonnes for.
  l l>8 1 ; whereas the opening of a Community tariff
 quota of that volume is unlikely to harm Community
 production ;             ' ■ '
                           I
 ---pagebreak---                               - 15 -
     Whereas, to take account of future trends in imports
     of the product in question in the various Member
     States the quota should be divided into two instal­
     ments, the first being distributed among the Member
     States and the second to form a reserve intended to
     cover any subsequent requirements of Member States
     who have used up their initial shares ; whereas in
     order to ensure a certain degree of security for impor­
     ters of each Member State the first instalment should
     be fixed at approximately 8 0% of the total quota ;
   . Whereas the initial shares may be used up at different
     rates ; whereas, to provide for this eventuality and to
     avoid disruption of supplies, any Member State which
     has almost used up its initial share should draw an
     additional share from the reserve ; whereas this should
     be done by each Member State when each of its addi­
     tional shares has been almost used up, and so on as
     many times as the reserve allows ; whereas the initial
     and additional shares should be valid until the end of
     the quota period ; whereas this form of administration
     requires close collaboration between Member States
     and the Commission , which latter must be able to
     keep a record of the extent to which the tariff quota
     has been used up and to inform the Member States
     accordingly ;
     Whereas if, at given date in the quota period, a consid­
     erable quantity of the initial share is left over in a
     Member State, it is essential that that Member State
     should return a significant proportion to the reserve,
     so as to avoid a part of the quota remaining unused in
     one Member State when it could be used in others ;
     Whereas, since the Kingdom of Belgium, the
     Kingdom of the Netherlands and the Grand Duchy of
     Luxembourg are united within and jointly represented
     by the Benelux Economic Union, any measure
     concerning the administration of the shares allocated
     to that economic union may be carried out by any
     one of its members,
     HAS ADOPTED THIS REGULATION :
                              Artich 1
1 . From 1 January to 31 December 1981 the auto­
      nomous duty of the Common Customs Tariff for yarn ,
     spun entirely from silk waste other than noil, not put
     up for retail sale, falling within subheading 50.05 A,
     shall be totally suspended           within a Commu­
     nity tariff quota of270 tonnes.
 ---pagebreak---                                                      - 14
                                                     Draft
                                    COUNCIL REGULATION (EEC)
                 opening, allocating and providing for the administration of a Community tariff
                 quota for yarn , spun entirely from silk waste other than noil , not put up for
                 retail sale, falling within subheading 50.05 A of the Common Customs Tariff
                                                         ( 198 1 )                      ,
THE COUNCIL OF THE EUROPEAN                                     Whereas equal and continuous access to the quota
COMMUNITIES,                                                    should - be ensured for all importers and the rate laid
                                                                down for the tariff quota should be applied consist­
                                                                 ently to all imports of the product in question until
Having regard to the Treaty establishing the European           'the d)uota is used up ; whereas a system of utilization
Economic Community, and in particular Article 28                of the Cpmmunity tariff quota, based on an allocation
thereof,                                                         between the Member States concerned, would, in the
                                                                 light of the principles outlined above, appear
                                                                 consistent with the Community nature of the quota ;
Having regard to the draft Regulation submitted by
the Commission ,
                                                                Whereas, in view of these factors and of the forecasts
                                                                which it is possible to make, the initial percentage
Whereas yarn spun from waste silk is produced in the            shares in the quota volume can be expressed approxi­
                                                                mately as follows :              .   '
Community ; whereas, although that production
should cover all the Community requirements by
reason of its overall volume, this does not apply with
regard to yarn entirely spun from waste silk ; whereas
there is, as a result, an insufficient supply in the                    Bénélux                  2.08
Community ;                                                             Denmark                  2.08
                                                                        Germany Greece         20.83     2.08
                                                                        France                 25
Whereas, consequently. Community supplies of those
                                                                        Ireland           ,      2 . 08
qualities of yarn depend to a considerable extent on
imports ; whereas full application of the Common                        lta'y                  41.67
Customs Tariff duty would result in those products                      United Kingdom           4 18
being subjected to a considerable customs charge
while products manufactured from silk yam face
powerful competition from similar products manufac­
tured from other material ; whereas an insufficient
supply, added to .competition at finished product level ,
might have adverse effects on the Community's
processing industries ;
Whereas the Common Customs Tariff duty applicable
to imports of the yarn spun from waste silk in~ ques­
tion is J' 4% ; whereas, when fixing the quota duty, it
is appropriate to take into account, on the one hand,
 the situation of the Community industry producing
 yarn spun from waste silk and, on the other, that of
 the industries processing yarn spun from waste silk
 with regard to their supplies on favourable terms ;
 whereas a zero quota duty could best meet the above-
 mentioned requirements ;
 Whereas the trends in imports in recent years suggest
 that Community import requirements for the yarns in
 question might be in the region of 270 tonnes for
  l l>8 1 ; whereas the opening of a Community tariff
 quota of that volume is unlikely to harm Community
  production ; .          ' •
 ---pagebreak---                              - 15 -
    whereas, to take account of future trends in imports
    of the product in question in the various Member
    States the quota should be divided into two instal­
    ments, the first being distributed among the Member
    States and the second to form a reserve intended to
    cover any subsequent requirements of Member States
    who have used up their initial shares ; whereas in
    order to ensure a certain degree of security for impor­
    ters of each Member State the first instalment should
    be fixed at approximately 8 0% of the total quota ;
    Whereas the initial shares may be used up at different
    rates ; whereas, to provide for this eventuality and to
    avoid disruption of supplies, any Member State which
    has almost used up its initial share should draw an
    additional share from the reserve ; whereas this should
    be done by each Member State when each of its addi­
    tional shares has been almost used up, and so on as
    many times as the reserve allows ; whereas the initial
    and additional shares should be valid until the end of
    the quota period ; whereas this form of administration
    requires close collaboration between Member States
    and the Commission , which latter must be able to
    keep a record of the extent to which the tariff quota
    has been used up and to inform the Member States
    accordingly ;
    Whereas if, at given date in the quota period, a consid­
    erable quantity of the initial share is left over in a
    Member State, it is essential that that Member State
    should return a significant proportion to the reserve,
    so as to avoid a part of the quota remaining unused in
    one Member State when it could be used in others ;
    Whereas, since the Kingdom of Belgium, the
    Kingdom of the Netherlands and the Grand Duchy of
    Luxembourg are united within and jointly represented
    by the Benelux Economic Union, any measure
    concerning the administration of the shares allocated
    to that economic union may be carried out by any
    one of its members,
    HAS ADOPTED THIS REGULATION :
                             Article I
1 . From 1 January to 31 December 1981 the auto­
    nomous duty of the Common Customs Tariff for yarn ,
    spun entirely from silk waste other than noil, not put
    up for retail sale, falling within subheading 50.05 A,
    shall be totally suspended           within a Commu­
    nity tariff quota of 270 tonnes.
 ---pagebreak---                                - 16 -
2 . Within the limits of this tariff quota ,,
       i                             *                       »
     Greece shall 'apply duties calculated in
         1
     accordance with the . relevant provisions
                                                               1
     in the Act of Accession of that country
                           Artide 2
 1 . ■ A first instalment of 21 4 tonnes of this Commu­
 nity tariff quota shall be allocated among the Member
 States. Member States' shares which, subject to Article
 5, shall be valid until 31 December 1981 , shall be as
 follows :
                                                m tonnes
      Bénélux                                      1
      Denmark                                       1
      Germany        Greece                   .  10 _
      France                                     60
      Ireland                                       1
      Italy                                     100
      United Kingdom                        '     40
 2.        The second instalment of 5 6 tonnes shall consti­
 tute the reserve.
                           Article 3
  1.       If 90 % or more of a Member State s initial share
  as fixed in Article 2 ( 1 ), or of that share minus any
  portion returned to the reserve where Article 5 has
  been applied, has been used up, that Member State
 shall forthwith, by notifying the Commission, draw a
 second share, to the extent that the reserve so permits,
 equal to 10 % of its initial share, rounded up as neces­
 sary to the next whole number. •
      0J No L 291 , 19.11.1979 , p. 17 .
 ---pagebreak---                             - 17 -
2.    If, after its inita ! share has been used up, 90 %
or more of the second share drawn by a Member State
has been used up, that Member State shall forthwith,
in the manner and to the extent provided in para­
graph 1 , draw a third share ecjual to 5 % of its initial
share .                            |
3.,    If, after its second share has been used up, 90 %
or more of the third share drawn ; by a Member State
has been used up, that Member State shall forthwith,
in accordance with the same conditions, draw a fourth
share equal to the third .
This procedure shall apply until the reserve is used
up .
4.      By way of derogation from paragraphs 1 , 2 and
3 , Member States my draw lesser shares than those
specified therein if there are grounds for believing
that those specified may not be used in full . They
shall inform the Commission of their reasons for
applying this paragraph.
                            Artide 4
Additional shares drawn pursuant to Article 3 snail be
valid until 31 December 198 1 .
 ---pagebreak---                           Article ï                             pursuant to Article 3 are opened in          a w§y thai
Member States shall return to the reserve , not later
                                                                imports may be chargcc! without interruption against
                                                                their aggregate share* of the Community quota..
 than 1 October 198 *, the uniised portions or their
initial shares w! : ch, on 15 . September 198'|, are r,         2.     Member States shall ensure that importers of the -
excess of 20 % of the initial amounts. They may                 product in question established in their territory have
return a greater pcaion if there are grounds for                free access to the shares allocated to th.-m .
believing that such portion may not be used up.               «
Member States shai ! notify the Commission, not later           3.     Member States shall charge against their shares
than 1 October 198 1 of the total quantities of yarn            imports of the product in . question as and v/ hen the
spun entirely from siik waste imported up to and                product is entered with the customs authorities for
                                                                free circulation . ,       '               -   . '
including 15 September 198"] and charged against the
Community quota and of any portions of their initial                                              < .
shares returned to the reserve.                          -      4.     The extent to which a Member State has used "up
                                                                its share shall be determined on the basis of the
                          Article 6
                                                                imports charged in accordance with paragraph 3 .
The Commission shall keep an account of the shares                                     Article 8
opened by the Member States pursuant to Articles 2
and 3 and, as soon as it has been notified , shall inform
each State of the extent to which the reserve has been          At the Commission's request Member States - shall
                                                                inform it of the imports actually charged against their
used up.     ,                                                  shares .
It shall inform the Member States, not later than 5
October 198 1 of the amount in the reserve after
                                                                                       Article 9
amounts have been returned thereto pursuant to
Article 5.
                                                                Member States and the Commission shall cooperate
It shall ensure that the drawing which exhausts the             closely to ensure that this Regulation is complied
reserve docs not exceed the balance available and to            with .
this end, shall notify the amount of that balance to
the Member State, making the last drawing.
                          Ar/ icli- 7                                                  Artide 10
1.    Member       States' shall     take  all    appropriate   This Regulation shall enter into force on 1 January
measures    to   ensure   that   additional    shares drawn     1981 .                          .
               This Regulation shall be binding in its entirety and directly applicable in all Member
               States .
               Done at Brussels, .
                                                                            For the Council
                                                                              The President