CELEX: 51976PC0526
Language: en
Date: 1976-10-12
Title: PROPOSAL FOR A COUNCIL REGULATION concerning import arrangements for certain textile products originating in Malaysia (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 526
Vol. 1976/0161
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
           \                  <            COM(76 ) 526 final .
                                           Brussels . 12 October 1976 .
                                                i        \   '           ' 1 . ■
                          Γ                                · ■' <     . \
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                                                                    ι
                        PROPOSAL POR A COUNCIL REGULATION
                            /l ;         »
             concerning import arrangements for certain textile products
                       originating - in Malaysia .         -
               . ("
                ( submitted, to the Council "by the Commission)
                                                   . Λ .
                     .
 C0MC7 6 ) 526 final .
 ---pagebreak---  1 . By & Decision Oj. lo June 1975* "the Council authorised "the Corjaission to open
 negotiations with Malaysia *
 trade in textile products .
                                                     for -tho conclusion of an agreement on
 2 . In accordance wiuh >, iiis Council Decision ana. in consultation witix "tha
 Article 113 Committee , the Commission held, negotiations with Ma Laysi a
 from 16 to 20 October 1976 .
 Following these negotiations , a draft Agreement was drawn ut> and initialled by
 the Heads of Delegation on 23 October 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 00
 applied by the Malaysian 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 bo carried out , this proposal for a
 regulation envisages the adoption of arrangements making the importation into
tho Community of the products in question subject to quantitative limits .
4 . The initialled Agreement naturally concerns only products originating in and
coming from Malaysia .           The Malaysian authorities therefore apply voluntary
restraint only in respect of direct exports to the Community . Thus products
falling within the categories covered by the Agreement and originating in
 Malaysia may be freely exported to the Community via other third countries .
The Community can oppose indirect exports of this kind , since the Agreement
only requires it to admit products originating in and coming from ''"Jlaysia
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 bo
applied to products originating in Malaysia irrcspective 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 (ESC ) No 1023/70 , in particular Article 11 thereof.
Under this procedure , the Council must fix the criteria 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 und^r tho Arrangement regarding
International Trade in Textiles . Allocation will therefore "bo based on           those
criteria and in particular on the results of the work already undertaken.
  ihie allocation will be the subject of a separate regulation to "be adopted by
  the Commission, likewise on the basis of Regulation IIo 1023/70*
   Document S / 304 / 1 / 76 ( COMER 139, Rev . 1 )
 ---pagebreak--- 6 . The Agre onent negotiated provides for the automatic and immediate
acceptance by the Community authoritiea of imports subject to a ceiling
on production 131/ the importer of an esrport liconco ircauod by "tho
Malaysian 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 States' 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 tho Council adopt the
regulation the draft of which is annexed at the earliest possible date .
 ---pagebreak---                      PROPOSAL FOR A COUNCIL REGULA.ION
        concerning import arrangements for certain tequila products
        originating in Malaysia
THE COUNCIL OF TIES EUROPE WMJUiriTIISS ,
Having regard to the Treaty establishing the European Economic 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 Malaysia
negotiated an Agreement on trade in textile products ; whereas the Commission
has submitted to the Council a recommendation for a Regulation concluding i»hat
Agreement ;
Whereas , for the purpose of applying the Agreement which has been negotiated ,
 import arrangements for tho products in question should be adopted ;
Whereas the Agreement requires the Community to admit imports of certain textile
products within quantitative limits , the observance of which will bo
guaranteed by an agreed system of bilateral checking;
Whereas , appropriate provisions applicable in the Community should therefore bo
adopted for the duration of the Agreement , including the criteria for the
allocation of the quantitative limits agreed with Malaysia -.
Whereas , because 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 tho
 objectives of the Agreement T?y indirect imports of products originating in
Malaysia . -
  Whereas the quantitative limits laid down in the Agreement apply to exports
  from Malaysia and whereas the goods imported therefore should be charged
  against the quantitative limit fixed for ^e Per10ci in which these goods were
  exported from Malaysia .
 ---pagebreak---                                   - 2 -
 Whereas for certain textile products , the Agreement provides for a consultation
 procedure enabling safeguard measures to bo adopted where there is a real risk        '
 of market disruption;     whereas , in accordance with this procedure , Malaysia
 has undertaken to apply voluntary restraint in respect of its exports of certain       i
 textile products to certain Member States ; whereas the observance of these             '
 quantitative limits will be guaranteed by an agreed system of bilateral chocking;
 Whereas , to this end , quantitative limits should be fixed for imports of thes.e         I
 products into the Member States in question , and detailed rules should 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 otnor temporary importation arrangements and are
 re-exported therefrom in their original state or after processing should not bo
 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 Economic Community and Malaysia is based , this Agreement
 does not apply to textile products of silk or of flax or ramie ,
Has ADOPTED THIS REGULATION
                                Article 1
1 . Imports into the Community of the textile products listed in Annex A ,
originating in Malaysia and exported between 1 November 1975                      • '
and 31 December 1977 » shall be subject to tho quantitative restrictions agreod.
between tho Community and     Malaysia and set 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 (SSC ) Eo 1023/70
of 25 fey 1970 establishing a common procedure for administering quantitative
quotas ^, 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 orrier to align them gradually
with market supply requirements .
3 . The competent authorities of the Member States concerned 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 Malaysian authorities
containing the details sot out in Annex C.
lOJ Ko L 124 , 8.6.1970, p.l
 ---pagebreak--- 4 » Authorised imports uhall he charjca a^inst tho quantitative xisits vaxid for
 the period during which "the products v.'cx o ta.-ccn aboard in Malaysia * or
export to the Community «
5 . Products whioh or.tor tho Cors-vniV *a ©i».Tfcosr.o territory under i«wetf4
processing or other temporary importation arrangements and are ro-e:cpor »Cu
therefrom in their original state or after processing snail not bo charged
against the (quantitative limits re^crrcci «.o i»» paragrt*pn 1 .
                                     /. rticle 2
1 . Xotwithctandinj paragraphs 2 , 3 and 4 * i^porxs into the Co.dimity of t*.e
textile products listed in Annex 3 originating in '"ialaysia c ~ii not be
subject to quantitative restrictions .
2 . In the "ember States specified in Annex 3. imports of the textile products refer­
red to in paragraph 1 and exported from rtai-aysia between L November TV75 to i1
0ecemDeri977 s haLL be subject to the quantitative limits stated in that Annex .
3 . The quantitative limits referred to in Paragraph 2 may bo modified according
to the procedure laid down by Regulation (22C) Xo 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 tho textile products referred to below , originating
in Malaysia and accompanied by a certificate issued and endorsed by the relevant
 Malaysianiauthorities ' and containing the details set out in Annex D , shall not
be subject to quantitative restrictions :
     ( i) cotton handloom fabrics of the cottage industry , containing not core than"'
            5/S by weight of man-made fibres , being fabrics which are both traditionally
            of the kind woven on handlooms and actually woven on a loom for which- tho
            motive power is provided entirely by the operators ( that is where the three
            primary movements of weaving, namely shedding, picking and beating, are
            induced by hand or foot and' no other source of power is used);
   ( ii) goods made up by the cottage industry from such handloon fabrics ;
       ( 1 ) Ministry of Trade and Industry , Malaysia
 ---pagebreak--- iii ) traditional Malaysian folklore handicraft textiles products ,
       including handicraft batik products ( 1 ), cut , sewn or otherwise
       fabricated by hand in cottages which are units of the cottage
       industry .
                              Arti c le_4
This Regulation shall enter into force on the third day following
its publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,                             For the Council
                                                   The President
 ( 1 ) Handicraft batik is produced by a traditional batik process by which
       colours and shades are introduced to a bleached or white fabric . The
       The process is carried out manually in three stages namely :
       ( a ) waxing ( application of wax by hand to the fabric )
       ( b ) dyeing / painting ( application of colour either by the traditional
             cottage method of dyeing or. by hand painting )
       ( c ) de-waxing ( boiling the fabric to remove the wax )
       The three stages of the process are repeated on the fabric for each
       of the colours or shades in the resulting design .
 ---pagebreak---                                              . . ANNEX A
QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 1
 ---pagebreak---                                                                                                            _ ANNEX_B
                                                          QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 2
               CCT
                                                                                                                     Quantities
Cate­                                                                                          Member
                         MIMEXE       Code                   Description                                Um ts
gory        headi ng                                                                           State                 1.11.75 to    19 7 7
                 M°         ( 1976 )                                                                               31.12.76
          55 . C9     55.09 - all codes             Other woven fabrics of cotton              France   1.000kg          466      424
                                                                                               United-
                                                                                               Kingdom  1.000kg       1.341  (a) 1.219 ( b )
          56.07                                     Woven fabrics of man-made fibres ( discon­
                                                    tinuous or waste ) :
                       56.07-01 to 36               A. • of synthetic , textile fibres
                                                                   of which
    2 a   ex 55.09                                  Other woven fabrics of cotton :            France    1.000 kg       140        127
                                                                                               United -  1.000 kg       263        239
                     55.09-03;04;05;51 ;            - Other than unbleached and bleached
                                                                                               Kingdom
                     52 ; 53 ; 54 ; 55 ; 56 ; 57 ;
                     59 ; 61 ; 63 ; 64 ; 65 ; 66 ;
                     67;69;ex71;31;82 ;
                     83 ; T>4 ; 86 ; 87 ; 92 ; 93 ;
                     97
           56.07                                    Woven fabrics of man-made fibres ( discon­
                                                    tinuous or waste ):
                                                    ex A. of synthetic textile fibres :
                     56.07-ex01;ex03 ;                  - other than unbleached and bleached
                     05 ; 07 ; 08 ; 13 ; 14 ; 16 ;
                     1 8 ; 21 ; 23 ; 26 ; 27 ; 28 ;
                     33;34;36
( a ) With a maximum of 875 tons for products, falling under one or other of positions 55.09 and 56.07 A
( b ) Vith a maximum of 795 tons for products falling under one or other of positions 55.09 and 56.07 A.
 ---pagebreak---                                              ANNEX_B _
                                             p. 2
QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 2
 ---pagebreak---                                                                   ArTNSX C
                  Détails referred to in Article 1M )
        The export licences issued by the . . Ministry - of"Trade and Industry, for the
productscovered by this Regulation shall specify or contain:
        1.   the destination, and in particular the Member State for v£.ich
             the goods are intended;
        2.   the sériai nuznber;
        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
             products covered by the licence ;
        6.   the category against Xiihich the product has been charged by the
           Malaysian ■ authorities and the description of the product ;
        7.   a certificate to the effect that the quantity in question has
             been charged against the Member State of destination's share of
             the agreed ceiling 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 Malaysia , for export to the Community.
 ---pagebreak---                                                             I \r?^r»Y T)
               Corti ficnti on rcOrrM t, o in " rtioln \
                                                                         V
The certificate issued by the rolovant Malaysian authorities               for tho          i
products referred to in Article 5 ex this Rcjju_i.ci.ti 021 shall contain:                  !■
The following heading:
" Certificate in respect of cotton handloom fabrics and products thoroof "
           Kame and address of manufacturer.
        ■ Namo and addrosc of exporter .                                               /
           Name and address of import or vitnin tho Community.                                I
                                                                                              !.
           Description of gooas .
           Quantity ( in tonnes or items).                                                    !i
           Kama of vessel or flight number .
           Port or airport of destination .
           The following certification:                                                      j
"This is to certify that the above shipment consists of :                         -               ;
                                                                                           J1
     ( i) cotton handloom fabrics (as defined in Article 4,1 ( i ) of the
             Agreement ) containing not more than 5% by weight of man-made 1                    1
             fibres , or
   f . . \        -,   ^
   ( ii ) goods made up by the cottage industry from cotton handlo^j                           ;
             fabrics ( as defined in Article 4.1 ( i ) of the Agreement        , or
( iii ) traditional Ma '- a y s ' an folklore handicraft textile products
             cut , sown or otherwise fabricated by hand in cottages which
             are units of the cottage industry .
                                     Signed
 ( 1 ) Ministry of Trade and Industry       at :
         - Koala Lumpur ( principal office )                                                  j
         - Penang , Gohorbru , Kota Kenia , Notd oaru , Kiitooo lu , Kuching ( subsidiaries 1
  Ee^tion.i0nS referred *<>             those set out in Article 3 of this