CELEX: 51979PC0410
Language: en
Date: 1979-07-13
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) OPENING, ALLOCATING AND PROVIDING FOR THE ADMINISTRATION OF A COMMUNITY TARIFF QUOTA FOR PROCESSING WORK IN RESPECT OF CERTAIN TEXTILE PRODUCTS UNDER COMMUNITY OUTWARD PROCESSING ARRANGEMENTS (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 410
Vol. 1979/0147
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                          COM ( 79 ) 410 final
                                          Brussels , 13th July 1979
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                   PROPOSAL FOR A COUNCIL REGULATION (EEC )
        OPENING, ALLOCATING. AND PROVIDING FOR THE ADMINISTRATION
              OF A COMMUNITY TARIFF QUOTA TO* PROCESSING WORK
          IN RESPECT OF CERTAIN TEXTILE PRODUCTS        UNDER COMMUNITY
                       OUTWARD PROCESSING ARRANGEMENTS
               ( presented by the Commission to the Council )
COM ( 79 ) 410 final
 ---pagebreak---                                              -1-
                                   EXPLANATORY MEMORANDUM
                              (1 )
1.  In an Arrangement               concluded with the Swiss Confederation on 1 August 1969 .
                           %
    the European Economic Community undertook to open an annual duty-free
    Community tariff quota of 1 870 000 units of account of added value for
    various kinds of processing work in respect of certain textile products
    under the outward-prcrcessing traffic arrangements between the Community
    and Switzerland .
                                               i
    Under the terms of the memorandum agreed* at the time the Arrangement was
    made, this annual tariff quota is divided into three categoires of pro­
    cessing , based on the quantities recorded under the former bilateral
    agreements ( concluded with Switzerland by France, Germany and Italy ),
    but taking intri account the' possibi lities of extending it to the Benelux
    countries .
    On the basis of that division the total quota amount of 1 870 000 units
    of account is allocated , in accordance with certain amendments , as follows :
        (i )     1 520 000 units of account for processing work on woven fabrics falling
                 within Chapters 50 to 57 of the Common Customs Tariff ;
      ( ii )     123 000 units of account for twisting or throwing , re-twisting ,
                 cabling , texturizing ( whether or not combined with other processing
                 work ) of "yarns falling within Chapters 50 to 57- of the Common
                 Customs Tariff.;
             » . f
    ( iii ), '227 000 units of account for processing work on articles falling
         I • within headings Nos 58.04,. 58.05 , 58.07, 58.08, 58.09 and 60.01
         ' i     of the Common Customs Tariff, subject to the setting up of a
                 Community reserve of 230 000 u.a . to be drawn from the above
                 quotas , í.e . 160 000 u.a ., 13 000 u.a . and 57 000 u.a . respectively .
(1)   0J No L 240, 24.9.1969.
 ---pagebreak---                                    -2-
2.  The question whether this Arrangement should continue beyond 31 August 1977
    has been examined on several occasions , notably at the meeting of the
    EEC-Switzerland Joint Committee held on 3 November 1976, in regard to
    the quota amounts 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 products
   qualifying for Swiss origin status by reason of the processing work
   they have undergone can enter duty-free, expired on 1 July 1977 .
   This question was reconsidered at the meeting of the Joint Committee
   held on 8 May 1979 in order to examine, in the light of the experience
   gained and of the economic information available, the adaptations to be
   made to the Arrangement especially as regards the following points :
   -   reduction to be made to the total quota amount ;
   -   division of this amount into three categories of processing ;
   -   allocation of quota amounts among Member States ,.
   With regard to the first three points raised , the Swiss delegation laid
   stress on the retention of the Arrangement and its Memorandum in their
   present form , but agree provisionally to the abolition of the division
   of the total quota amount of 1 870 000 EUA into the three categories
   of processing initially adopted and hence to the aggregation of the
   shares allotted to certain Member States .
3. The attached proposal for a Regulation therefore serves no other purpose
   than to open, in European units of account , the tariff quota provided for
   in the Arrangement in question for the period 1 September 1979 to
   31 August 1980 and to allocate it among the Member States along the
   lines set out in the Memorandum covering the. Arrangement , account
   being taken of the adaptations that'have taken place meanwhile and of
   the need to ensure that the new Member States khare in the allocation
   of this tariff quota .
 ---pagebreak---                                      Proposal for a
                                 COUNCIL REGULATION (EEC)
             opening, allocating And providing for the 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 COMMUNITIES,
Having regard to the Treaty establishing the European                 Whereas the tariff quota in question
Economic Community, and in particular Article 113                     should therefore be opened for the
thereof,                                                              period 1 September 1979 to 31 August
                                                                      1980, in accordance.- with the detailed
Having regard to the proposal from the Commission,                    rules laid down in the arrangement
                                                                      referred to abdve and in the adaptations
Whereas on 1 August 1969 the Community concluded                      thereto, and in compliance with the
an arrangement with Switzerland on processing traffic                 provisions-of Council Regulation - CEEC )
in textiles; whereas under that arrangement the                       No 2779/ 78 of 23 November 1978 oan
Community undertook to open on 1 September of every                   the procedure for applying the European
year an annual duty-free Community tariff quota for                   unit of account ( EUA ) to legal acts
processed goods of 1 870 000 units of account of added                adopted in the customs sphere ( 1 ), and
value, apportioned as follows:
                                                                      in particular Article 2 thereof ;
(a) 1 650 000 units of account for processing work on
    woven fabrics falling within Chapters 50 to 57 of
    die Common Customs Tariff;
(b) 143 000 units of account for the twisting or
    throwing, cabling and texturizing (whether or not
    combined with other processing work) of yarns,
    falling within Chapters 50 to 57 of the Common
    Customs Tariff;
(c) 77 000 units of account for processing work on
    products falling within heading Nos 58.04, 58.05,
    58.07, 58.08 , 58.09 and 60.01 of the Common               Whereas provision should be made in particular to
    Customs Tariff;                                            ensure equal and continuous access for those concerned
                                                               with this quota and consistent application of the rate of
                                                               duty prescribed for the said quota until the quota is
Whereas, in order to facilitate the                            exhausted, to all goods reimported into any of the
administration of this tariff quota ,                          Member States        which have received one or other of
it has been decided to no longer .                             the treatments listed above; whereas in the light of these
allocate a quota amount provisionally                          principles arrangements for the utilization of the quota
to each of the three abovementioned                            based on an allocation among the Member States would
 categories of processing work ;                               seem to be consistent with 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 previous bilateral agreements, but
                                                               without precluding participation by Member States not
                                                               previously involved in such traffic, among which the
                                                               new Member States are included; whereas, to safeguard
                                                               the Community character of the quota, provision
                                                               (*) OJ No L 333, 30. 11 . 1978 , p. 5 .
 ---pagebreak---  should be made to meet requirements which may arise         HAS ADOPTED THIS REGULATION :
 in those Member States in the future by permi tt i ng
them to draw adequate amounts from the
Community reserve;                                                                  Article 1
 Whereas to take account of future trends in the traffic    1.     From 1 September 1979
 in question in the various Member States, the total                to 3t August . 1980, a Community-
 quota volume of 1870000 European units of account
 should be divided into two instalments, the first being    tariff quota Of 1870 000 European units of
 allocated among certain Member States and the second        account (EUA) of value added shall be opened in the
 held as a reserve to cover the subsequent requirements      European Economic Community in respect of goods
of Member States when one of their initial shares has        resulting from processing work as provided for in the
been exhausted and also requirements which may arise         arrangement with Switzerland on processing traffic in
in certain Member States in respect of processing work       textiles as set out below :
for which no initial share of the quota was allocated ;      (a) . PrOC eSS i ng                       work on woven
whereas in order to give the parties concerned in each           fabrics falling within Chapters 50 to 57 of the
Member State some degree of certainty it would seem              Common Customs Tariff;
appropriate to fix the first instalment of the Community
quota at a relatively high level, namely 1640 000            (b)              . - twisting or throwing, cabling and
European units of account ;                                      texturizing (whether or not combined with other
                                                                 processing work) of yarns falling within Chapters
                                                                 50 to 57 of the Common Customs Tariff;
                                                             (c) processing . work on products . falling
                                                                 within the following headings of the Common
                                                                 Customs Tariff:
                                                                 58.04 Woven pile fabrics and chenille fabrics (other
                                                                         than terry towelling or similar terry fabrics
Whereas the Member States may exhaust their initial                      of cotton falling within heading No 55.08
shares at different rates; whereas to avoid disruption of                and fabrics falling within heading No 58.05 );
supplies on this account it should be provided that any
Member State which has almost used up one of its                  58.05 Narrow woven fabrics, and narrow fabrics
initial shares should draw an additional share from the                  (bolduc) consisting of warp without weft
reserve; whereas each time its additional share is almost                assembled by means of an adhesive, other
exhausted a Member State should draw a further share,                    than goods falling within heading No 58.06;
and so on, as many times as the reserve allows; whereas           58.07 Chenille yarn (including flock chenille yarn),,
the initial and additional shares should be valid until the              gimped yarn (other than metallized yarn of
end of the quota period; whereas this form of                            heading No 52.01 and. gimped horsehair
administration requires close collaboration between the                  yarn); braids and ornamental trimmings in
Member       States  and   the    Commission,    and    the              the piece; tassels, pompons and the like;
Commission must be in a position to keep account of               58.08 Tulle and other net fabrics (but not including
the extent to which the quota has been used up and to                    woven, knitted or crocheted fabrics), plain ;
inform the Member States accordingly;                             58.09 Tulle and other net fabrics (but not including
                                                                         woven, knitted or crocheted fabrics), figured;
                                                                         hand or mechanically made lace, in the piece,
                                                                         in strips or in motifs;
Whereas if at a given date in the quota period a                  60.01 Knitted or crocheted fabric, not elastic or
considerable quantity of a Member State's initial share                  rubberized.
remains unused it is essentials ^ ^ order to prevent
 a part of the quota from remaining unused
  in one Member State while it could be used
  in others / that such State return a -                     2. For the purposes of this Regulation:
 significant proportion thereof to the
  reserve;                                                   ^ 'processing work* means:          ,
                                                                  – for the purposes of paragraph 1 (a) and (c):
Whereas, since the Kingdom of Belgium, the Kingdom                    bleaching,      dyeing,      printing,  flocking,
of the Netherlands and the Grand Duchy of                             impregnating, dressing and other work which ,
Luxembourg are united within and jointly represented                  changes the appearance or quality of the goods,
by the Benelux Economic Union, any measure                            without however changing their nature,
concerning the administration of the shares allocated to          – for the purposes of paragraph 1 (b): twisting or
that economic union may be carried out by any one of                  throwing, cabling and texturizing, whether or
its members,                                                          not combined with reeling, dyeing or other
 ---pagebreak---                                                   -y-
        work which Aange* th« appearance, ^talrff or
         finish of the goods, without however hanging
         their nature;
(b) 'value added* means the difference between vV
     value for customs purposes as defined in Regulati..
     (EEC) No 803/68 (') at the time of reimportation
     and the value for customs purposes as it would be if
     the products were reimported in the state in which
     they were exported.
 3 . Within this tariff quota the Common Customs
 Tariff duties shall be totally suspended.
 4 . Reimports of products resulting from this
  processing work may not be charged to the tariff quota
  if they are already free of customs duties under other
  preferential tariff arrangements.
                  Article 2
  1.      The quota laid down in Article 1 ( 1 ) shall
          be divided into two tranches .
          The first tranche / of 1 640 000
          EUA, shall be allocated as set out below among
          the Member States covered by the aforesaid arrangements
          the shares , subject to Article 6, shall be valid from
          1 September 1980 to 31 August 1980 :
                                                           ( EUA)
                     Bénélux                                 20 000
                     Germany                             1 080 000
                      France                               520 000
                      Italy                                  20 000
  2.    The second tranche , of 230 000 EUA , shall
         constitute a Community reserve .
  (1 )     0J No L 148, 28.6.1968, p.1
 ---pagebreak---                                                     -4-
                              Article 3
i In case of need
                         -                                  .   . in
   any of the new Member States /
                                     . the State concerned shall,
  to the extent that the reserve so permits, draw from
  such reserve an appropriate share of
  the quota .
                              Article 4
  1 . If a Member State has used 90% or more of
  its initial share . as fixed in Article 2 ( 1 ), or of that share
  minus any portion returned to the reserve pursuant to
  Article 6, it shall forthwith, by notifying the
  Commission, draw a second share, to the extent that the
  relevant reserve so permits, equal to 10% of its initial
  share, rounded up as necessary to the next whole
  number.
  2. If a Member State, after exhausting its initial share,
  has used 90% or more of the second share drawn by it,
  that Member State shall forthwith, in the manner and to
  the extent provided in paragraph 1 , draw a third share
     equal to 5% of its initial share, rounded up as necessary
     to the next whole number.
     3 . If a Member State, after exhausting its second share,
     has used 90% or more of the third share drawn by it,
     that Member State shall, in the manner and to the
     extent provided in paragraph 1 , draw a fourth share
     equal to the third.
     This process shall apply until the reserve is used up.
     4. By way of derogation from paragraphs 1 , 2 and 3 , a
     Member State may draw shares lower than those
     specified in those paragraphs if there are grounds for
     believing that those specified may not be used in full.
     Any Member State applying this paragraph shall inform
     the Commission of its grounds for so doing.
                                Article S
     Additional shares drawn pursuant to Article 3 shall be
     valid until 31 August 1 980 •
 ---pagebreak---                               Article 6
    The Member States referred to in Article 2 ( 1)sh all /
not later than 1 July 19 SC^ return to the reserve the unused
    portion of their initial share which, on 15 June 19 80 / 1 S
    in excess of 20% of the initial volume. They may return
    a greater portion if there are grounds for believing that
    it may not be used in full.                                      2. The Member States shall ensure that all persons
                                                                     established in its territory involved in the processing
    Member States shall , not later than 1 July 19 8Ci.notify        traffic have free access to the shares allocated to it.
    the Commission of the total quantities of the product in
    question rcimported up to and including 15 June 19 80            3 . The extent to which a Member State has used up its
    and charged against the Community quota and of any               shares shall be determined on the basis of the value
    portion of their initial shares returned to the reserve.         added, as established when upon reimportation the
                                                                     products concerned are entered with the custqms
                                                                     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,          At the request of the Commission, the Member States
    inform each State of the extent to which the reserve has         shall inform it of reimportations charged against their
    been used up.                                                    share. .
    It shall, not later than 5 July 198Q, inform the Member                                  Article 10
    States of the amounts still in reserve, following any
    return of shares pursuant to Article 6.
                                                                     Member States and the Commission shall cooperate
    It shall ensure that when an amount exhausting this              closely to ensure that this Regulation is complied with.
     reserve is drawn the amount so drawn does not exceed
     the balance available, and to this end shall notify .the                                Article 11
     amount of that balance to the Member State making the
     last drawing.
                                                                     This Regulation shall enter into force on 1         September
                                                                      1979 .
                              Article 8
      1 . The Member States shall take all appropriate
     measures to ensure that additional shares drawn
      pursuant to Article 4 are opened in such a way that
      reimportation may be charged without interruption
      against their accumulated share of the
      quota.
                     This Regulation shall be binding in its entirety and directly applicable in all Member States.
                     Done at Brussels ,
                                                                                               For the Council
                                                                                                The President