CELEX: 51977PC0081
Language: en
Date: 1977-03-17
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for processing work in relation to certain textile products under the outward processing traffic arrangements of the Community. (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 81
Vol. 1977/0031
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(77)81 final.
                                              Brussels ,  17 March 1977 .
                                                 & ek Ik & H
                                                 BU®                  M
                                Proposal for a           ^
                        REGULATION ( ESC ) OP THE COUNCIL
        on the opening ! allocation and administration of a Community
        tariff quota for processing work in relation to certain textile
        products under the outward processing traffic arrangements of
                                the Community .
              ( submitted to the Council "by the Commission)
COM(77 ) 81 final
 ---pagebreak---                              EXPLANATORY MEMOIUNDUM
In an Arrangement . concluded with the Swiso Federation on 1 August 1969 ,
the European Eoonomio Community undertook to open an annual duty free ' .
Community tariff quota of 1 , 870,000 units of account of added value on the
various kinds of processing work for certain textile produots included in thd
outward processing traffic of the Community to Switzerland.
Under tho terms »f the memorandum agreed at the time the Arrangement was "
made , this annual tariff quota is divided into three categories of pro–            .:
ceasing, based on the quantities recorded under the former "bilateral agree.– ■
ments ( concluded with Switzerland by France , Germany and Italy), but taking
into aocount the possibilities of extending it to the Benelux countries . ..
On tho bacis «f that division the total quota amount of 1,870,000 units of...
acoount is appropriated as follows :
a) 1,650,000 units of aocount for processing work on woven fabrics falling
                                                                    «    . .  V *··
   within Chapters 50 to 57 of the Common Customs Tariff j
b) 143,000 units of account for twisting or throwing, re-twisting cabling, .
   texturizing (whether or not combined with ether processing work) of yarns
   falling within Chapters 50 to 57 of the Cwmmen Customs Tariff ,
0) 77,000 units of aooount for processing work on articles falling within •
   headings 50 . 04 , 58*05 , 58.07 , 58.08 , 58.09 and 60.01 of tho Common *
   Customs Tariff .
  0J No L 240 - 24 September 1969 .
                                                                mmm/••■
                                               (
 ---pagebreak--- At the request of the Swiss authorities and so that the division of the
whole quota into 'the three categories of prooeaainff referred to above should
"be better related to the actual movement ofv trade 'during the reference year
which served as the basis for calculating the total amount of the quota and
trade movements during recent quota periods or foreseeable movements , it was
 decided to make certain transfers between the three quota amounts of
which the f^nal one was 1 }l 0 , 000 u.a « , transferring from the figure alloca­
ted for processing- work on artiolos (category C ) to that set aside for
processing work on woven fabrics falling within            Chapters 50 "to 57 - Simi­
larly and in order to allow recess to the tariff           quota , it was decided that
the Community reserves should be amalgamated and           that in this way the new
reserve could cover all types of processing work           regardless of the cate­
gory they come under .
The totai quota amount of 1 , 870,000 u.a. would be allocated among the throe
categories as follows :
- 1, , 520,000 u.a . for processing operations on woven fabrics falling within
                                                 »                      •
   Chapters 50 to 57 of "the Common Customs Tariff j                            ■
– 123,000 u.a. for processing operations on woven fabrics falling within
   Chapf-eys 50 to 57 of the CCTj
– 227,000 u.a . for processing woj^k on articles falling within headings
   53.04 'to 60.01 of the CCT , subject to the setting up of a Community re~
                                   »  *1
   serve of 2?0,000 u.a, to be drawn from the above amounts , that is 160,000
   u.a., 13 * COO u.a , and . 57 » 000 u.a. respectively .
The question whether this Arrangement should continue beyond 31 August 1977
has been examined on several occasions , notably at the meeting of the Joint
EEC-Swiss Commission held on 3 November 1976, in regard to the quotas which
should be adopted thenceforth , account being taken of the fact that the
transitional period in the Free Trade Agreement concluded with Switzerland ,
under which textile goods qualify for Swiss origin status by reason of the
processing work they have undergone and can enter futy-free , expires on
1 July 1977 .
 ---pagebreak---                                   -3 -
     Until such time as the economic data required for calculating these
    quotas are available , it has been decided by common accord purely and
    simply to renew the currently open quotas for a transitional period ,
    during which time the contracting parties will endeavour to obtain
    the required data .
5.  The annexed proposal for a Regulation therefore serves no other
    purpose than to open the tariff quota provided for in the Arrangement
    concerned for the period between 1 September 1977 and 31 August 1978 ,
    and to allocate it among the Member States along the lines set out in
    the Memorandum covering this Arrangement , account being taken of the
    changes occurring meanwhile and of the need to ensure that the new
    Member States share in the allocation of this tariff quota .
   The proposal for a Regulation annexed hereto provides for the administration
   of tho quota "by tho system of prior allocation ana that the majcimvua amount
   returned to the reserve shall "be 20$ of the initial share .
 ---pagebreak---                                                                                                            AÎTNEX
                                                  Proposai for a
                             REGULATION (EEC) No.../ f7 OF THE COUNCIL
                                                    of
             on the opening, allocation and administration of a Community tariff quota for
             processing work in respect of certain textile products under Community
                                          outward processing arrangements
THE COUNCIL OF THE EUROPEAN                                 trade during future quota periods, it has been decided
COMMUNITIES,                                                to adjust the said allocation between the three catego­
                                                             ries by giving them 1 520 000, 123 000 and 227 000
                                                            units of account respectively ; whereas the Commu­
Having regard to ( he Treaty establishing the European       nity tariff quota in question should be opened for the
Economic Community, and in particular Article 113            period I September 1977 to 31 August 1978
thereof ;                                                   according to the provisions laid down in the arrange­
                                                             ment specified above, and in amendments to it ;
 Having regard to the proposal from the Commission ;         Whereas provision should be made in particular to
                                                             ensure equal and continuous access for <: hose
                                                             concerned with this quota and consistent app.ication
Whereas on 1 August 1969 the Community                       of the rate of duty prescribed for the said quota until
concluded an arrangement with Switzerland on                 the quota is exhausted, to all goods re-imported into
processing traffic in textiles ; whereas under that arran­   any of the Member States and which nave received
gement the Community undertook to open on I                  one or other of the treatments listed above ; whereas
September of every year an annual duty free Commu­           in the light ot these principles arrangements for the
nity tariff quota for processed goods of 1 870 000           utilization of the quota based on an allocation among
units of account of added value, apportioned as              the Member States would seem to be consistent with
follows :                                                    the Community character of the said quota ; whereas,
                                                             it therefore seems appropriate to make the allocation
                                                             on the basis of the amount of the traffic under the
(a) 1 650 000 units of account for piocessing work on        previous bilateral agreements, but without precluding
    woven fabrics falling within Chapters 50 to 57 of        participation by Member States not previously
    the Common Customs Tariff ;                              involved in such traffic, among which the new
                                                             Member States arc included ; whereas, to safeguard the
(b) 143 000 ami its of account for the twisting or           Community character of the quota , provision should
    throwing, cabling and texturizing (whether or * not      be made to meet requirements which may arise in
    combined with other processing works) of yarns           those Member States in the future permitting them to
    falling within Chapters 50 to 57 of the Common           draw adequate amounts from the Community reserve ;
     Customs Tariff ;
(c) 77 000 units of account, for processing work on          Whereas to take account of future trends in the traftic
    products falling within heading Nos 58.04, 58.05,        in question in the various Member States, the total
    58.07, 5H.08 , 58.09 and 60.01 ot the Common
    Customs Tariff ;
                                                             quota volume of I 870 000 units of account should be
                                                             divided into two tranches, the first being allocated
                                                             among certain Member States and the second held as
                                                             a reserve to cover the subsequent requirements of
Whereas, in order that the division of the whole quota       Member States when one of their initial shares have
into the three categories referred to above shall corres­    been exhausted and also, requirements which may
pond more exactly with the actual movement of trade          arise in certain Member States in respect of processing 0
during the reference year or during previous quoin          work for which no initial share of ( he quota was allo­
periods ns well as with the foreseeable movement of         cated ; whereas in order to give the parties concerned
 ---pagebreak--- in each Member State some degree of certainty it            (c) 227 000 units of account for processing work on
would seem appropriate to fix the first tranche of the            articles falling within the following headings of
                                                                  the Common Customs Tariff :
Community quota at a relatively high level, namely
1 640 000 units of account ; whereas the total Commu­              58.04 Woven pile fabrics and chenille fabrics
nity reserve of 2.10 000 units of account shall consist                     (other than terry towelling or similar terry
ot amount* drawn from the allocations in respect of                         fabrics of cotton falling within heading No
each category, that is 160 000, 13 000 and .57 000                          55.08 and fabrics falling within heading No
units of account respectively ;                                             58.05) ;
W here.!-, the Member States may exhaust their initial             58.05 Narrow woven fabrics, and narrow fabrics
shares at ditfercnt rates ; whereas to avoid disruption                     (bolduc) consisting of warp without weft
oi supplies on litis account it should be provided ( hat                     assembled by means of an adhesive, other
any Member State which has almost used up one of its                      . than goods failing within heading No
 initial shares should draw an additional share from the                     58.06 ;
 reserve ; whereas each time its additional share is               58.07 Chenille yarn (including flock chenille
 almost exhausted a Member State should draw a                               yarn), gimped yarn (other than metallized
 further share, and so on , as many times as the reserve                     yarn of heading No 52.01 and gimped
 allows ; whereas the initial and additional shares                          horsehair yarn) ; braids and ornamental trim­
 should l:c valid until the end of the quota period ;                         mings in the piece ; tassels, pompons and
 wherea* this form of administration requires close                          the like ;                      •
 collaboration between the Member States and the
 Commission, and the Commission must be in a posi­              ' 58.08 Tulle and            other net   fabrics (but   not
 tion to keep account of the extent to which the quota                        including woven, knitted or crocheted
  has been used up and to inform the Member States                            fabrics), plain (a) ;
 accordingly ;                                                      58.09 Tulle - and other net          fabrics (but   not
                                                                              including woven, knitted or crocheted
 Whereas if at a given date during the quota period a                         fabrics), figured ; hand or mechanically
  considerable quantity of a Member State s initial share                     made lace, in the piece, in strips or ir
  remains unused it is essential , to prevent a part of the                    motifs ;
  quota from remaining unused in one Member State                   60.01 Knitted or crocheted fabric, not elastic or
  while it could be used in others, that such State
                                                                               rubberized .
  should return a significant proportion thereof to the
  reserve ;
                                                              2.       For the purposes of this Regulation :
  Whereas, since the Kingdom of Belgium , the                 (a) 'processing work means :
  Kingdom of the Netherlands and the Grand Duchy of
  Luxembourg are united in and jointly represented by               – for the purposes of paragraph 1 (a) and (c) :
  the Benelux Economic Union, any transaction in                         bleaching, dyeing, printing, flocking, impreg­
  connection with the administration of the shares allo­                 nating, dressing and other work which changes
  cated to that Economic Union may be carried out by                     the appearance or quality of the goods, without
  nny one of its members,                                                however changing their nature ;
                                                                    – for the purposes of paragraph 1 (b) : twisting or
                                                                         throwing, cabling and tcxturizing, whether or
   HAS ADOPTED THIS REGULATION :                                         not combined with reeling, dyeing or other
                                                                         v/ork which changes the appearance, quality or
                          A rl it'Ic /                                   finish of the goods, without however changing
                                                                         their nature ;
   I. As from I September 1 977 and until 31 August
   1 978 , a Community tariff quota of 1 870 000 units of      (b) 'value added' means : the difference between the
   account of value added shall be opened in the Euro­               value for customs purposes as defined in Regula­
   pean Economic Community in respect of goods                       tion ( EEC) No 80.1/68 ( ' ) at the time of re-importa-
                                                                     tion and the value for customs purposes as it
   resulting from processing work as provided for in the             would be if the products were re-imported in the
   arrangement with Switzerland on processing traffic in             state in which they were exported.
   textiles. Such quota shall be apportioned as follows :
   (a) 1 520 000 units of account for processing work ori      3.       Each portion as laid down in paragraph I shall
       woven fabrics falling within Chapters 50 to 57 of        be divided into two tranches, the first being allocated
        the Common Customs Tariff ;                            among certain Member States in accordance with
   (b) 12.1000 units of account for twisting or throwing,      Article 3 and the second, being used to constitute a
        cabling and tcxturizing (whether or not combined        reserve which shall be common to the three categories
        with other processing work) of yarns falling within     of processing.
        Chapters 50 to 57 of the Common Customs
        Tariff ;                                                (') OJ No L 148, 28. 6. 1968, p. I.                 ,
 ---pagebreak---                                                                          - 3 -
     4.      Within this tariff quota, the Common Customs                 50 to 57 or for products falling within heading
                                                                          Nos 58.04, 58.05, 58.07, 58.08, 58.09 and 60.01 of
     Tariff duties shall be totally suspended.                            the Common Customs Tariff.
     5 . Reimports of products resulting from
this processing work may not be charged to                          2. The second tranche which amounts to 230 000
the tariff quota if they are already free                           units of account shall constitute a Community reserve
of customs H uti®s Linger ot h er preferential                      which may be used for the three categories of
tariff arrangements .                                               processing.
                                 Artide 2
      1 . The first tranche of each portion of the quota as                                  Article 3
     laid down in Article 1 ( 1 ) shall be allocated as set out   _
     below among the Member States listed in the above              In case of need, either in France in respect of the
     arrangement ; the shares, subject to Article 6, shall be       processing work referred to in Article 1 ( 1 ) (b), or in
     valid from 1 September 1977 to 31 August 19^.                  any of the new Member States in respect of any of the
                                                                    categories of processing work, the State concerned
     (a) Germany :                                                  shall, to the extent that the reserve so permits, draw
                                                                     from such reserve a sufficient share of the quota.
            1 080 000     units of account, apportioned as
           follows :
           *– 850 000 units of account for processing work                                    Article 4
                 on woven fabrics falling within Chapters 50 to
                 57 of the Common Customs Tariff ;
                                                                      1 . If a Member State has used 90 % or more of one
           – 100 000 units of account for twisting or                of its initial shares as fixed in Article 2 ( 1 ), or of that
                 throwing, cabling and texturizing (whether or       share minus any portion returned to the reserve
                  not combined with other processing work) of        pursuant to Article 6, it shall forthwith, by notify; t
                 yarns falling within Chapters 50 to 57 of the        the Commission draw a second share, to the extent
                  Common Customs Tariff ;                             that the relevant reserve so permits, equal to 10 % of
            – 1 30 000 units of account for processing work           its initial share, rounded up as necessary to the next
                                                                     whole number.
                  on products falling within heading Nos 58.04,
                  58.05, 58.07, 58.08, 58.09 and 60.01 of the
                  Common Customs Tariff :                             2. If a Member State, after exhausting one of its
                                                                      initial shares, has used 90 % or more of the second
       (b) France :                                                   share drawn by it, that Member States shall , in accor*
                                                                      dance with the conditions laid down in paragraph 1 ,
             520 000 units of account, apportioned as follows :       draw a third share equal to 5 % of its initial share.
             – 500 000 units of account for processing work
                  on fabrics falling within Chapters 50 to 57 of       3.    If a Member State, after exhausting its second
                  tiie Common Customs Tariff ;                         share, has used 90 % or more of the third share drawn
             – 20 000 units of account for processing work on          by it, that Member State shall, in accordance with the
                  products falling within heading Nos 58.04,           same condition, draw a fourth share equal to the third .
                  58.05, 58.07, 58.08 , 58.09 and 60.01 of the
                   Common Customs Tariff ;                             This process shall continue to apply until the reserve
                                                                       is exhausted.
        (c) Italy :
                                                                       4. Notwithstanding paragraphs 1 to 3, a Member
             20 000 units of account, i.e. half for twisting or •      State may draw shares lower than those specified in
             throwing, cabling and texturizing (whether or not         those paragraphs if there are grounds for believing
             combined with other processing work) of yarns             that those specified may not be used in full. Any
              falling within Chapters 50 to 57 of the Common            Member State applying this paragraph shall inform
              Customs Tariff, and half for processing work on           the Commission of its grounds for so doing.
              products falling within heading Nos 58.04, 58.05,
              58.07, 58.08, 58.09 and 60.01 of the Common
              Customs Tariff ;
                                                                                                Article J
        (d) Bénélux :
              20 ()00 units of account for processing work on           Additional shares drawn pursuant to Article 4 shall be
              threads and woven fabrics falling within Chapters         valid until 31 August 1978 s
 ---pagebreak---                                                        . ; - 4 -
                           Article 6                                    pursuant to Article 4 are openeo in such a way that
                                                                        re-importation may be charged without interruption
The Member States referred to in Article 2 shall, not
                                                                        against their accumulated shares of the quota.
later than lJuly- 1978 , return to the reserve the
unused portion of their initial share which, on 15 J urn"               2. Every Member State shall administer its shares
 1978 is in excess of 20 % of the initial volume. They
                                                                        by a system of prior allocation. It shall ensure that all
may return a greater portion if there are grounds for                   persons established in its territory involved in the
believing that it may not be used in full.                              processing traffic have free access to the shares allo­
Member States shall not later than lJuly 1978 notify                    cated to it.
the Commission of the total quantities of the product
in question re-imported up to and including 15 Juni                     3.    Th£ extent to which a Member State has used up
 1978 and charged against the Community quota and                       its shares shall be determined on the basis of the value
of any portion of their initial quotas returned to the                  added, as established when upon re-importation the
reserve .
                                  ' •          •
                                                                        products concerned are entered with the customs
                                                                        authorities for home use.                    . .
                           Article 7
The Commission shall keep an account of the shares                                                Article 9
opened by the Member States pursuant to Articles 2, 3
and 4 and shall as soon as the information reaches it,
inform each State of the extent to which the reserve
                                                                        At the request of the Commission, the Member States
                                                                        shall inform it of re-importations charged against
has been used up.                                                       their shares.
It shall , not lansr than S July 1978, inform the
Member       States   of  the    amounts         still    in reserve
following any return of shares pursuant to Article 6.                                             Article 10       \
It shall ensure that when an amount exhausting this
reserve is drawn the amount so drawn does not exceed                    Member States and the Commission shall cooperate
the balance available, and to this end shall notify the
                                                                        closely to ensure that this ' Regulation is complied
                                                                        with.                                     1
amount of that balance to the Member State making
the last drawing. .                                     , .
                           Article 8
                                                                                                  Article Î1                  n
                                                                      r                                      •
1 . . Member States         shall         take   all     appropriate    This Regulation shall enter into force on 1 September
measures to ensure that additional shares drawn                      . » 977 . ,                               . , ,
               This Regulation shall be binding in its entirety and directly applicable in all Member
          7     States*                                                   :  v .
                                                     * <i                        : :i >
          i . Done at Brussels,                      ' v
                                                                                                   'Κ' ·
                        "      '      ■ I
                                                                                        For the Council
                                                                             ■ '; r      The President