CELEX: 51976PC0578
Language: en
Date: 1976-11-10
Title: Proposal for a COUNCIL REGULATION (EEC) concerning import arrangements for certain textile products originating in MACAO (submitted to the Council by the Commission)

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COM (76) 578
Vol. 1976/0178
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                        COM(76)578 final.
                                               /
                                        Brussels . 10 flovember 1976*
                   ,            Proposal for a
                           COUNCIL REGULATION (EEC )
  concerning import arrangements for certain textile products origi­
                               nating in MACAO
                ( submitted to the Council tor the Commission)
                                             >
                                                        ,• I
              /
  C0M(76) 578 final#
          r
            \
 ---pagebreak---                               EXPLANATORY MMORABDIM
 1 * By a Decision of 16 June 1975# the Council authorized the Commission
to open negotiations with Macao for the conclusion of an agreement on
trade in textile products *
2*    In accordance with this Council Decision and in consultation with the
Article 113 Committee , the Commission held negotiations with Macao on
24 and 25 September 1975 *
Following these negotiations , a draft Agreement was drawn up and initialled
toy the HeadB of Delegation on 27 September 1975* The Commission has
submitted to the Council a recommendation for a regulation concluding this
Agreement ^ •
3.    The - draft Agreement provides in particular for voluntary restraint to
be applied by Macao authorities , within agreed quantitative limits , to
exports of certain textile products to the Community, and supervision by
the Community to ensure that these limits are observed *
In order to enable this supervision to be carried out , this proposal for
a regulation envisages the adoption of arrangements making the importation
into the Community of the products in question subject to quantitative
limits *
4 * The initialled Agreement naturally concerns only products originating
in and coming from Macao *         The Macao authorities therefore apply voluntary
restraint only in respect of direct exports to the Community *        This
products falling within the categories covered by the Agreement and
originating in Macao may be freely exported to the Community via other third
countries *        The Community can oppose indirect imports of this kind , since
the Agreement only requires it to admit produots originating in and coming
from Macao which are accompanied by export licences complying with the
provisions of the Agreement *          Since indirect imports of this kind run
counter to the objective of the agreement , the import arrangements adopted
by the Community must be applied to produots originating in Macao irrespective
of where they come from *
5 * It is proposed that the Community 's quantitative limits be administered
according to the procedure for administering Community quantitative quotas
established by Regulation (EEC ) No 1023/70, in particular Article 11 thereof*
Under this procedure , the Council must       fix the oriteria according to which
the quantitative limits will be allocated*
These allocation criteria are those which have guided the preliminary work
carried out within the Council with a view to the adoption of the decisions
relating to the opening of bilateral negotiations tinder the Arrangement
regarding International Trade in Textiles *         Allocation2 will therefore be
based on these oriteria and in partioul&r on the results of the work already
undertaken *
    Doc . S7334 / 76 ( COMER 90 ).
    This allocation will be the subject of a separate regulation to be adopted
    by the Commission, likewise on the basis of Regulation n° 1023/ 70 .
 ---pagebreak--- 6 . The Agreement negotiated provides for the automatic and imraediato
acceptance "by the Community authorities of imports subject to a ceiling
on production by tho importor of an export licence issuod "by the Macao
authorities , certifying that the quantities in question have "been
charged against the agreed ceiling.     As regards administration "by the
Community, this stipulation- means that the Member StatoB * authorities
are obliged to grant import licences , automatically and immediately , on
production of a request accompanied by an export licence , provided that
the agreed limits are observed *
7 » In order to enable the objectives of the Agreement to be fulfilled
as soon as possible , the Commission proposes that the Council adopt the
regulation the draft of which is annexed at the earliest possible date .
 ---pagebreak---                         PROPOSAL FOR A COUNCIL REGULATION
          concerning Import arrangements for certain textile products
                 originating in M a c a o
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Econonio Community,
and in particular Article 113 thereof ,
Having regard to the proposal from the Commission ,
Whereas , in the context of the Arrangement regarding International Trade
in Textiles , the European Economic Community and Macao have negotiated
an Agreement on trade in textile produots ; whereas the Commission has
submitted to the Counoil a recommendation for a Regulation concluding
that Agreement ;
Whereas , for the purpose of applying the Agreement whioh has been negotiated ,
import arrangements for the products in question should be adopted ;
Whereas the Agreement requires the Community to admit imports of certain
textile produots within quantitative limits , the observance of which will
be guaranteed by an agreed system of bilateral checking;
Whereas , appropriate provisions applicable in the Community should therefore
be adopted for the duration of the Agreement , inoluding the criteria for
the allocation of the quantitative limits agreed with Macao ;
Whereas , beoause of the considerable disparities between the conditions
currently governing imports of the products concerned into the Member States
and because of the particular sensitivity of the Community 's textile industry,
standardization of these import conditions can only be achieved progressively;
whereas the criterion to be adopted for the allocation of the Community
quantitative limits should therefore be the gradual adjustment of the
quantities admitted under current import conditions to market supply
requirements ;
Whereas steps should be taken to ensure that there is no evasion of the
objectives of the Agreement by indirect imports of produots originating in
Maoao >
Whereas the quantitative limits laid down in the Agreement apply to exports
from Maoao , and whereas the goods imported therefore should be charged
against the quantitative limit fixed for the year in whioh these goods were
exported from Maoao ;
 ---pagebreak---                                - 2 -
Whereas for certain textile products , the Agreement provides for a
consultation procedure enabling safeguard measures to be adopted where
there is a real risk of market disruption ; whereas , in accordance with
this procedure , Macao has undertaken to apply voluntary restraint in
respect of its exports of certain textile products to certain Member
States ; whereas the observance of these quantitative limits will be
guaranteed by an agreed system of bilateral checking ;
Whereas , to this end , quantitative limits should be fixed for imports of
these products into the Member States in question , and detailed rules
6hould be laid down for their administration by the Member States ;
Whereas the Agreement provides that those products which enter the
Community 's custom territory under inward processing or other temporary
importation arrangements and are re-exported therefrom in their original
state or after processing should not be charged against the agreed
quantitative limits ;
Whereas , account being taken of the provisions of Article 12 of the
Arrangement regarding International Trade in Textiles , on which the
abovementioned Agreement between the European Economio Community and
Macao is based , this Agreement does not apply to textile products of
silk or of flax or ramie ;
Whereas the Community and Macao have agreed that in certain cases the
quantitative liiaits for the period 1.10.1975 "to 31*12.1977 should be
established by taking into account , the carry-over of unutilized quan­
titative limits valid under the rules in effect until 30.9.76 .
HAS ADOPTED THIS REGULATION
                             Article 1
1 . Imports into the Community of the textile products listed in Annex A ,
originating in Macao and exported between 1 October 1975 an(* 31 December 1 977 1
shall be subject to the quantitative restrictions agreed between the
Oramunity and Macao and sat out in that Annex .
2.  These quantitative limits shall be allocated among the Member States
in accordance with the procedure laid down in Council Regulation (EEC )
No 1023/70 of 25 May 1970 establishing a common procedure for administering
quantitative quotas t and in particular in Article 11 thereof , in such a way
as to ensure the expansion and orderly development of trade in textiles and
to permit amounts to be carried over or brought forward from one year to
another .
However , the allocation shall be made on the basis of the import volumes
admitted under the conditions currently applied in the Member States and
shall provide for annual rates of increase that are appreciably higher for
those Member States whose import volumes are relatively the lowest , in
order to align them gradually with market supply requirements .
3.  The competent authorities of the Member StateB conoemed shall , within
the quantitative limits prescribed , automatically authorize the import of
the products referred to in paragraph 1 immediately upon production by the
importer of the original of the export licence issued by the relevant
Macao authorities and containing the details set out in Annex C.
'OJ No L 124 ? 8.6.1970, p.1 .
 ---pagebreak---                                 - 3 -
4 * Authorized imports shall be charged against the quantitative limits
valid for the year during which the products were taken aboard in Macao
for export to the Community*
5 . Products which enter the Community 's customs territory under inward
processing or other temporary importation arrangements and are re-
exported therefrom in their original state or after processing shall not
he charged against the quantitative limits referred to in paragraph 1 *
                               Article 2
1 * Notwithstanding paragraphs 2 , 3 and 4 » imports into the Community of
the textile products listed in Annex B originating in Macao shall not be
subject to quantitative restrictions .
2 . In the Member States specified in Annex B , imports of the textile
products referred to in paragraph 1 and exported from Macao between
1 October 1975 and 31 December 1977 shall be subjeot to the quantitative
limits stated in that Annex *
3*     The quantitative limits referred to in Paragraph 2 may be modified
acoording to the procedure laid down by Regulation (EEC) No 1023/70, and
in particular Article 11 thereof .
4.     Paragraphs 3 , 4 and 5 of Article 1 shall apply to the quantitative
restrictions referred to in this Article .
                               Article 3
Imports into the Community of the textile products referred to below ,
originating. in Macao and accompanied by a certificate issued and endorsed
by the relevant from this territory and containing the details set out in
Annex D, shall not be subjeot to quantitative restrictions :
    (i ) cotton handloom fabrics of the cottage industry, containing not
          ■ore than 5% ty weight of man-made fibres , being fabrics which are
          both traditionally of the kind woven on handlooms and actually woven
          on a loom for whioh the motive power is provided entirely by the
          operators (that is where the three primary movements of weaving,
          namely shedding, picking and beating, are induoed by hand or foot
          and no other Bource of power is used)}
  ( ii ) handmade goods made up by the cottage industry from such handloom
          cotton fabrics ;
  ( iii ) machine
          jerseys ; and pull-overs knitted by hand from wool yarns without use of
  (iv) traditional Maoao folklore handioraft textile products out , sewn,
          or otherwise fabricated by hand in oottages whioh are units of the
          cottage industry*
  Repartição Provinoial de Serviços de Economia de Maoao *
 ---pagebreak---                           Article 4
This Regulation shall enter into foroe on the third day following its
publication in the Official Journal of the European Communities *
This Regulation shall fee binding in its entirety and directly applicable
in all Member States *
Done at Brussels .                                 For the C OTITIC il
                                                   The President
 ---pagebreak---                                         ANNEX A : QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 1
                                                                                             Level of quantitative limits
                                                                                                    " 1 , 000 nieces
 Category CCT heading ΝΙΜΞΧΞ                                Description
          No          code     ( 1976 )                                                     1.10.75 - 31.12.76       19 7 7
Γτ-       ex 61.01                      Men's and boys' outer garments :                     • '        ^           11.980.000 -
                      61 . 01-61 1 63 ; – Trousers ( including jeans ), breeches and the
                      65 ; 67 : ex 69       like , other than of silk or waste silk or of
                                           flax or ramie
              61.02                     Women s , girls' and infants' outer garments :
                                        ex . B Other than babies garments :
                      61 . 02-ox 91 ;   – Trousers ( including jeans ), breeches and the
                      ex 93 ; ex 95 ;      like , other than of silk or waste silk or of
                      ex 96; ex 98 ;       flax or ramie
                      ex 99
                                                                                                                     *
                                                                                          I
 ---pagebreak---                                                ANNEX B : QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 2
i Cate- i     CCT        Code NIMEXE                d e s c r i p t î o n             Member
i gorie { heading           C 1976 )                                                   State
                                                                                                  j _       .[ Level of auantitative limits
•   –o
h-2–I-
         i       n°                                                                               j 01 1s T Ï9757Î976           j         TTTT~
            ex
               60.04
                                          Undergarments , knitted or crocheted,        France       pieces         (3 )            1.800.000 ( 3 )
                                          not elastic or rubberized :
                        60.04-ex11;13;j - Shirts , ubdervests , T-shirts , sin­
                        ex24;ex29;ex35{ glets and the like , other than of
                        41;ex45;ex59; J silk or noil or" other waste silk or
                        ex70;ex80       !    of flax or ramie
        ■
       i–
           -60-. 05-                      ©uter -garmefvts- and other articles kirHf-t- &en«-lux-   -,    1 J"    600.000 ( 1 )      513.500
                                          ted or crocheted , not elastic nor rub- ! France          pièces j 2.200.000     (1)     1.900.400
                                          berized :                                  I
                                          ex A. Outer garments and other articles!:
                       60.05~01;22;23 ;    - Jerseys , pull-overs , slip-overs ,     !
                       24;25;ex29;31 ;        twinsets , cardigans , bed jackets and!
                       33;34;ex 39            jumpers , other than of silk or waste !
                                              silk or of flax or ramie               !
             61.02                        Women 's , girls' and infants outer gar­      France
                                                                                                   pieces '1.600.000 ( 1 )         1.369.700
                                          ments   :
                                          ex B. Other than babies' garments :
                       61.02-83;85;87; - Shirts and blouses , other than of
                       ex89                  silk or noil or other waste silk
                                             or of flax or ramie
            ex 61.03 !                  ! Men'ç
                                          Men s anrl
                                                  and hnvs'
                                                      boys' munder garments , in­      Bénélux                    400.000 ( 2 )      342.500
                                                                                                   pieces i
                                          cluding collars , shirts fronts and          France                   2.459.200 (2)     2.631.400
                                          cuffs :                                      Royaume-                       ( 3)        2.030.000 ( 3 )
                       61.03-11;15;ex     - Shirts , other than of silk or noil        Uni
                       ex19                 or other waste silk or of flax or
                                             ramie
            ex 61.03                      Men s and boys' under garments , inclu­      France       piecesi ?. 014 . 000 ( 2 )     2.155.000
                                          ding collars , shirts fronts and cuffs :
                       61.03-ex(31;35 ; - Pyjamas , other than of silk or noil
                       39 )                 or other waste silk or of flax or
                                            ramie
 ---pagebreak---                                                                                                                                               p. 2
                                                  ANNEX B - ; QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 2
   "cate-1 CCT                               ––    –                             -i
                                                                                       Member                 Level of quant ital           ive limits     [
                            NIMEXE Code         Description                        i              Units
    gory ! heading                                                                     State                                                    ––       –H
 i    _o   '    .a    I
      nu   i    nu    i
           i          i                                                                                     ■    1975 / 1976                     1 9 7 7   i
           I          I                                                                                                                                    i
                                           I                                                    «       p – – – – – – – – – – – – – – –I
           ι
      7    !   61.05                         Handkierchiefs                             Bénélux   1000                  90 ( 1 )                  73,4
           ι
           ι
                                             ex B. other :                              Italy       kg                273,3 ( 1 )     •       - 222,8
           I
                                                                                        France                          83,3 ( 2 )                85,0
           I
                           6TÏ05-30                - of cotton                                                                                             ι
                                                                                                                                 (
                                                                                                                                                           ι
                                                                                                                                                           i
i          X          II                   1                                       !Π ––––––––                                          1
      8    !   62.02     62.02-1 1;41;43; i   Bed linen , table linen , toilet          Italy     1000                320 ( 1 )    ■:   !       273,9      !
           ι
                         47:71 ; 73 ; 81 ; l  Linen and kitchen linen , curtains                   kg
                                              and other furnishing articles :                                                                              ι
                                              ex B. other than net curtains :                                                                              ι
                                                  - of cotton
                                                                                                                                          I                I
                                                                                                                                                           I
     ( 1 ) The quantitative restrictions established by the present Regulation enter into effect from 1 October 1976 and the first
           quota-period runs from the 1 October 1976 untill the 31 December 1976 .
     ( 2 ) The quantitative restrictions established by the present Regulation enter into effect from 1.1.1976 and the first
           quota-period is the year 1976 .
     ( 3 ) The quantitative restrictions established by the present Regulation enter into effect from 1.10.1976 and the first
           quota-period runs from the 1 October 1976 untill the 31 December 1977 .
 ---pagebreak---                                                           ASTTEDC C
                  Details referred to in Artiole 1(3 )
The export licences issued by the 'Repartição Provincial de Serviços
de Economia de Macao"    for products covered by this Regulation shall
specify or contain :
1*  the destination , and in partioular the Member State for which
    the goods are intended :
2»  the sériai ntunber :
3*  the name and address of the importer ;
4*  the name and address of the exporter ;
5.  the net weight , in kilograms or tonnes , and the value of the
    produots oovered by the licenoe ;
6 . the category against which the produot haB been charged by the
    Macao authorities and the description of the product ;
7*  a certificate to the effect that the quantity in question has
    been oharged against the Member State of destination 's share of
    the agreed oeiling for exports to the Community, or , where
    appropriate , that the quantity is intended for immediate re-export
    or for re-export after processing, from the Community;
8 * the year when the products were exported , that is when they were
    taken aboard in Macao for export to the Community
 ---pagebreak---                                                             AMEX D
                  Certification referred "to in Article 3
The certificate issued "by the " Repartipao Provincial de Service
de Economia de Macao" for the products referred to in Article 3
of this Regulation shall oontain :
The following heading:
"Certificate in respect of cotton handloom fabrics and handmade products
       Name and address of manufacturer .
       Name and address of exporter *
       Fame and address of importer within the Community*
       Description of goods *
       Quantity (in tonnes or items )*
       Name of vessel or flight number*
       Port or airport of destination *
       The following certification :
"This is to certify that the above shipment consists of :
   (i ) "cotton handloom fabrics (as defined in Article 4*l(i ) of the
         Agreement ^) containing not more than 5$ by weight of man-made
         fibres ," or
  (ii ) "handmade goods made up by the cottage industry from cotton handloom
         fabrics" (as defined in Article 4*l(i) of the Agreement t or
 (iii ) "jerseys and pull-overs knitted by hand from wool yarns without use
          of machine ";
  (iv) "traditional Haoao folklore handicraft textile produots cut ,
         sewn or otherwise fabricated by hand in oottages which are units
         of the oottage Industry?
                                           Signed
 The conditions referred to are those set out In Artiole 3 of this Regulation