CELEX: 51974PC0556
Language: en
Date: 1974-04-24
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL 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 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM (74) 556
Vol. 1974/0094
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 ---pagebreak--- COMMISSION OF THE EU&OE3AN COMMUMT3ES
                                           COM(74)556 final
                                           Brussels , 24 April 1974
                                Proposal for a
                       REGULATION (EEC ) OF THE COUNCIL
                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
                 ( submitted to the Council tar the Commission)
   0011(74) 556 final
 ---pagebreak---                                EXPLAMTORY MEMORANDUM
                                                                              1
1c In an Arrangement concluded with the Swiss Fader" t ion on 1 August 19°9 »
   the European Economic Community undertook to open an annual duty-free
   Community tariff quota of 1 8'fO 000 units of account of added value in
   respect of the vrrious kinds of processing work for certain textile products
   i-cluded in the outward processing traffic of the Community to Switzerland .
2. Under the Annex to the Arrangement this annual tariff quota is divided into
   three categories of processing, on the "basis of the amount of the traffic
   under the former bilateral agreements (concluded with Switzerland by Prance ,
   Germany and Italy ) plus an allowance for the Benelux countries .
   On the basis of that division the total quota amount of 1 870 000 units of
   account is appropriated as follows t
   ( a) 1 650 000 units of account for .processing work on vroven fabrics
   falling within Chapters 50 "to 57 of the Common Customs Tariff ;
   (b ) 143 000 units of account for twisting or throwing, re-twisting, 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 articles falling within
   headings 53.04 , 58.05 , 58.07 , 53.03 58 . 09 and 60.01 of the Common Customs
   Tariff .
3. At the request of the Swiss authorities and so that the appropriation of the
   quota to the three categories of processing referred to above should be
   better related to the actual movement of tra.de during the reference year
   which served as the basis for calculating the total amount of the quota , it
   has been decided :
     OJ No L 240 , 24 December 1950 .
                                                                             •/•
 ---pagebreak---                                       - 2- -
( a) to transfer 150 000 units of account ftom the amount allocated for
     processing operations on woven fabrics? falling within Chapters 50 to 57
     of the Common Customs Tariff to the 77 000 units of account set aside
     for processing work on articles falling within headings 58<04to 60,01
     of the Common Customs Tariff . These 150 000 units of account , which
     have been allocated to France for operations on' knitted or crocheted
     fabric (processing work under ( c ) above ), have been deducted from that
     State 's quota- share under the aforementioned Annex in respect of
     processing work on woven fabrics .
(b ) to increase the amount appropriated to processing work on articles falling
     within headings 53.04 to 60.01 of the . Common Customs Tariff from
     227 000 units of account to 377 000 units of account , without . an3r
     corresponding increases in the total amount of the Community Tariff
     quota of 1 370 000 units of account .    This additional amount of
     150 000 has been drawn from the following sources :
     -   10 000 units of account from the 30 000 units of account allocated
     to the Benelux countries for all categories of processing workj
     - 120 000 units of account from the 900 000 units of account allocated
     to the Federal Republic of Germany for processing work on woven fabrics ;
     -  20 000 units of account from 1:20 000 units of account allocated to
     the Federal, Republic of . Germany for processing work on yarns
     The additional amount of 150 000 units of account thus obtained has
     been allocated as follows . to operations t& be carried out on articles falling
     within the abovementioned Tariff headings :
       Germany : 80 000 units of account (quota increased from 50 000 to
                  130 000 unit s of account )
       France : 20 000 units of account (quota increased from 150 000 to
                  170 000 unit s of account )
       Community reserve : 20 000 units of account (emount increased from
       7 000 to 57 000 \mits of account ).
 ---pagebreak---                                          - 3 -
4' This allocation among "the Member States of the different pmcmts ?roroT>riated
   to the three categories of processing work RAISED p difficulty V" " c". WPS
   examined ft corsultrtions with exports from the various Member States
   organized by the Commission in the course of the yepr 1">60 . Under this
   allocation it would be possible for certain Member States ( iteiy and the
   Benelux countries ) to nportion P 11 or iDart of their shares pmong the three
   cptegorics of processing work (or alternatively pmonp two of tho-e categories )
   in any wsy they wished , whereas the quotes , eat aside for P.PC> category of
   processing work ere insufficient to allow this :    if these Member States
   appropriated the full emount of their allocations entirely to the first
   category the ;* would have to draw on the reserve for that category, while
   if they preferred to ^ ppro-oriate them   exclusively to the second and third
   categories . then the quotas for those categories would be exceeded
   However ., after consultation with the Member States , it a-opeers th?t such p
   situation should not reise any difficulties in nrrctice       This explains
   the a.bserce of any provision relating to this problem in the nro^osrl for p
   Regulation ennexed hereto , it being understood that the relevant Commission
   departments ? ct.ing in concert with, the Member States  ? re to ensure thrt the
   fl location of the quota among the different categories of processing work is
   rdhercd to , and that rdequatc sction is taken in the event of the slightest
   difficulty .
5- The annual Community tariff ruota provided for in this Arr»mreme"t was l?st
                                                    *
   opened by Covircil Regulation (EEC ) No 30 '5/ 73 of 6 November 1T73 - and ws
   vrlid. for the period 1 September n73 to 31 August
   The sole purpose of the proposed Regulation annexed hereto is thus to open
   a like quota for the period 1 September 1974 to 31 August 1975 , and to
   apportion it among the Member States in accordance with the aforementioned
   Annex , talcing into account the ejmended allocations as indicated in 3 above
   and the need to provide for the participation of the new Member States in the
   apportionment of the quota .
    OJ No L 309 of 9 November 1973 , p. 1 «
 ---pagebreak---   It should however be noted in this connection, that according to the infor­
  mation gathered at a meeting of the EEC-Switzerland Joint Committee it
  appears that the new Member States only play a very small part , or no part
  at all , in the outward processing of products in the textile sector .
  While waiting for a modification of the above-mentioned Arrangement in order
  to allocate the initial shares to the new Member States , it is advisable ,
  in order to cover any needs which might arise , in Ireland on the one hand
  or in Denmark or the United Kingdom on the other , in particular for those
  cases not covered by the Agreement concluded on 22 July 1972 between the
  Community and Switzerland , that provision should be made for these Member Stat
  to be able to draw an adequate quota share from the Community reserve when ■
  required .-
. As for the preceeding quota period, the proposal for a Regulation annexed
  hereto provides for the quota to be administered under a system of prior
  allocation and sets at 20 % the level above which unused portions of the
  initial quota share are to be returned to the reserve *
 ---pagebreak---                                    PROPOSAL FOR A
                        REGULATION (EEC ) OP THE COU1TCIL
                        on the opening , allocation and administration
                        of a Community tariff quota for processing work in
                        respect of certain textile product sounder Community
                        outward processing arrangements
THE COUNCIL OP THE EUROFEiOT COMMUÎTITIES .
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 on 1 August 1969 the Community concluded an Arrangement with
Switzerland on   processing traffic in textiles ;           whereas under that
Arrangement the Community undertook to open each 1 September an annual
duty-free Community tariff quota for processed goods of 1 870 000 units of
account of added value , apportioned as follows :
( a)  1 650 000 units of account for processing work on woven fabrics falling
      viithin Chapters 50 to 57 of the Common Customs Tariff ;
(b )  143 000 units of account for the twisting or throwing, cabling and
      texturizing (whether or not combined with other processing works ) of
      yarns falling within Chapters 50 "to 57 of the Common Customs Tariff;
( c ) 77 000 units of account for processing work on articles falling within
      heading Nos 58 . 04 , 58.05 , 58 . 07 . 58 . 08 , 58.09 End 60.01 of the Common
      Customs Tariff ;
Whereas in order that the apportionment of the quota among the three categories
referred to above may correspond more closely with actual trade flows during
tlie reference year it has been decided by joint agreement to
 ---pagebreak---                                      - 2 -
raise to 377 000 units of account the amount of 77 000 units of account set
aside for the processing of articles falling within certain Tariff headings
1 - ! 1 c Crvaon Customs Tariff between 58 . 04 and 60.01 "by drawing a total of
300 000 units of account ( i ) from the share of the quota allocated to the
Benelux countries for all processing operations and ( ii ) from the shares
allocated to certain other Member States in respect of the processing of
woven fabrics and yarns falling within Chapters 50 to 57 of the Common
Customs Tariff j    whereas the Community tariff quota in question should be
opened for the period 1 September 1974 to 31 August 1975 in accordance with
the apportionment laid down in the aforementioned Arrangement as thus amended ;
Whereas provision should be made to ensure in particular that those
participating in this Community Traffic enjoy equal and continuous access
to the quota and that rate of duty prescribed under the said quota is
applied consistently , until the quota is exhausted, to all goods reimported
into any of the Member States which have received one or other of the
treatments listed above }     whereas in the light of these principles
arrangements for the utilization of the quota based on an allocation among
the Member States would seem to be consistent with the Community nature of
such 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 nature of the quota, provision
should be made to meet requirements which may arise in those Member States
in the future permitting them to draw on the reserve in accordance with the
system laid down in      Article 3 of the present regulation ;   whereas such
provision is made in Article 3 » in respect pf exceptional cases and where
no initial share of the quota has been allocated ;
Whereas to take account of future trends in the traffio in question in the
various Member States , the total quota volume of 1 87O 000 units of account
should be divided into two tranches , the first being allocated among the
Member States and the second held as a reserve to cover the subsequent
requirements of Member States whicfr have exhausted their initial shares
   * w
 ---pagebreak--- and also requirements which may arise in certain Member States in respect
of processing work for which no initial sh»re of the q"ota        -"' Ic or J;' 1 *
whereas in order to give the perties concerned in each Member State some
degree of certainty it would seem appropriate to fix the first tranche of
the quota at a relatively high level , namely some $Qffo of the full amount of
the quota ; whereas the reserve ( approximately 10$ ) should he appropriated
to each category of work in accordance with terms of the Arrangement ;
Whereas the Member States may exhaust their initial shares at different r-tc ?
whereas to avoid disruption of supplies on this account it should he provided
that any Member State which has almost used up one of its initial shares
should draw an additional share from the relevant reserve ;    whereas each
tiE3 its additional share is almost exhausted a Member State should draw
a further share and so on as nany times as the reserve allows ; whereas the
initial and additional shares should" be valid until the end of the'_qu6ta period
whereas this form of admini strati on requires close collaboration between the
Member States and the Commission , and the Commission must be in a position
to keep account of the extent to which the quota has been used up end to
inform the Member States accordingly ;
Whereas if at a given date during the quota period a considerable quantity
of a Member State 's initial share remains unused it is essential to prevent
a paJrt of the quota from remaining unlised in one Member State while it could
be used in others , that such State should, return a significant proportion ,
thereof to the reserve ;
Whereas , since the Kingdom of Belgium , the Kingdom of the Netherlands and
the Grand Duchy of Luxembourg are united in and jointly represented by the
Benelux Economic Union , any transaction in connection with, fht administration
of the shares allocated to that Economic Union may bo carried out by any one
of its Members :
                                                                            /
 ---pagebreak--- HAS ADOPTED THIS EEGULATION :
                                   Article 1
With effect from 1 September 1974 and- until 31 August 1975 » a Community
tariff quota of 1 870 000 units of account of value added ^nall "be opened
in the European Economic Community in respect of goods resulting from
processing work as provided for in the Arrangement with Switzerland on
processing traffic in textiles . Such quota shall be apportioned as follows :
( a ) 1 370 000 units of account for processing work on woven fabrics falling
      within Chapters 50 "to 57 of the Common Customs Tariff;
(b ) 123 000 units of account for twisting or throwing, cabling and
      texturizing (whether or not combined with other processing work ) of
      yams falling within Chapters 50 to 57 of the Common Customs Tariff;
(c ) 377 000 units of account for processing work on articles 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 of cotton falling within
              heading No 55-08 and fabrics falling within heading No 58.05 );
      53.05   Narrow woven fabrics , and narrow fabrics (bolduc ) consisting of
              warp without weft assembled by means of an adhesive , other than
              goods falling within heading No 58.06 ;
      58.07   Chenille yarn ( including flock chenille yarn ), gimped yarn
              (other than metallized yarn of heading No 52.01 and gimped
              horsehair yarn ); braids and ornamental trimmings in the piece ;
              tassels , pompons and the like ;
      58.08   Tulle and other net fabrics (but not including woven , knitted
              or orocheted fabrics ), plain ;
      58.09   Tulle and other net fabrics (but not including woven, knitted
              or orocheted fabrics), figured ; hand or mechanically made lace ,
              in the piece , in strips or in motifs ;
 ---pagebreak---                                             -5-
           60.01    Knitted, or crocheted fabric , not elastic nor rubberized .
2.  For the purposes of this Régulation ,
     ( a) "processing work" meansî
           – for the purposes of paragraph 1 (a ) and ( c ): bleaching, dyeing,
             printing , flocking, impregnating , dressing and other work which
             changes the appearance or quality of the goods , without however
             changing their nature ;
           - for purposes of paragraph 1 (b ): twisting or throwing, cabling and
             texturizing , whether or not combined with reeling , dyeing or other
             work which changes the appearance , quality or finish of the goods ,
             without however changing their nature .
     (b ) "added value" means : the difference between the value for customs
           purposes as defined in Regulation (EEC ) No 803/68 1 at the time of
           re-importation and the value for customs purposes as it would be if
           the products were re-imported in the state in which they were exported .
3 . Each portion of the quota as laid down in paragraph 1 shall be divided into
    two tranches , the first , of approximately         being allocated among the
    Member States in accordance with Article 3 and the second , of approximately
    '10$, to constitute the Community reserve .
4 . The Common Customs Tariff duties shall be totally suspended in respect of
    re-importatiors under the quota.
    The new Member States shall apply in respect of re-importat iaofl under the
    quota duties calculated in accordance with the relevant provisions of the
    Act of Accession .
      0J ïïo L 148 , 28X1968, p. 6 .
 ---pagebreak---                                       Article 2
Trie first tranche of each portion of the quota as laid dovm in Article 1(1 )
       shall "be allocated among the Member States .        The shares for each
       Member State, as laid down by the abovo-rient ionod arrangement and subject
       to Article 6 3hall be valid from 1 September 1974 to 31 August 1975 shall
       be as follows :
( a ) Germany :
       1 010 000 units of account , apportioned as follows :
       - 780 000 units of account for processing work on woven fabrics
         falling within Chapters 50 to 57 of the Common Customs Tariff ;
       - 100 000 units of account for twisting or throwing , cabling and
         texturizing (whether or not combined with other processing work ) of
         yarns falling within Chapters 5° "to 57 of the Common Customs Tariff ;
       - 130 000 units of account for processing work on articles falling
         withir headings 58.04 , 58.05 , 58.07 , 58.08 , 58 . 09 and 60.01 of
         the Common Customs Tariff :
(b ) France :
       600 000 units of account , apportioned as follows :
     . - 430 000 units of account for processing work on fabrics falling
         within Chapters 50 "to 57 of the Common         Customs Tariff ;
       - 17Q 000. units of account for processing work on articles falling
         within headings 58.04 , 58,05 , 58.07 , 58.08 , 58 . 09 and 60.01 of the
         Common Customs Tariff ;
( c ) Italy :
       20 000 units of acoount , i.e. half for 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, and half for processing work on articles falling within
       headings 58 . 04 , 58.05 , 58.07 , 58.08 , 58 . 09 and 60.01 of the Common
       Customs Tariff;                                   1
 ---pagebreak---   (d ) Bénélux :
        20 000 units of account for processing work on threads and woven
        fabrics falling within Chapters 50 to 57 or for articles falling
        within headings 58.04 , 58.05 , 58.07 , 58.08 , 58.09 and 60.01 of the
        Common Customs Tariff .        r
  The second tranche of each of the portions of the quota as fixed in Article l(t )
  - 150 000 , 13 000 and 57 000 units of account respectively - shall constitute
  the Community reserves .
                                     Article 3
  In case of need , in Prance in respect of the processing work referred to in
. Article l(l)(b ), or in any of the new Member States in respect of any of the
  categories of processing work , the State concerned shall , to the extent that
  the relevant reserve so permits , draw from ;sueh. rese-rva a sufficient share
  of the quota .
                                      Article 4
 As soon as a Member State has used 90% or more of one of its initial shares '
  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 1055 of its initial share , rounded up as necessary to the. next whole number .
 As soon as a Member State , after exhausting one of its initial shares , has
  used JCP/o 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 5f° of its initial share .
 ---pagebreak---                                             -a-
3 * As soon as a Member State , after exhausting its second share , has used 90$
     or nor3 of the third sharo 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 .
     It shall continue in this fashim until the reserve is exhausted .
4.   By wny of derogation from paragraphs 1 to 3 , a Member State may draw shares
     loi/er 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 5
    Additional shares drawn pursuant to Article 4 shall be valid until
    .31 August 1975 *
                                          Article n
    A Member State which on 15 M?y 1975 has not exhausted one of its initial
     shares as . fixed . in Article 2(1 ) shall , not later than 10 June 1975 , return
     to the Relevant reserve the mused portion in excess of 20$ of the initial
     amount .  It may return a greater portion if there are grounds for believing
     that such portion may not be used in full .
     Member States shall , not later than 10 June 1975 * notify the Commission of
     the total quantities of the product in question re–imported up to and
     including 15 May 1975 End counted against the Community quota and of any
     portion of their initial quotas returned to the reserve .               .
 ---pagebreak---                                          -9-
                                     Article 7
   The Commission shall keep an account of the shares 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 reserves have "been
   used up .
   It shall , not later than 15 June 1 975 > inform the Member States of the
   amounts still in reserve following any return of shares pursuant to
   Article 6 .
   It shall ensure that when an amount exhausting one of the reserves is drawn
   the amount so drawn does not exceed the "balance available , and to this end
   shall notify the amount of that "balance to the Member State making the last
   drawing-
                                      Article 3
   Member States shall take all appropriate measures to ensure that additional
   shares drawn pursuant to Article 4 are opened in such a way that re–importations
   may be charged without interruption against thsir accumulated shares of the
   quota .
                                      Article 9
1. Every Member State shall administer its quota shares by a system of prior
   allocation .   It shall ensure that all persons established in their territory
   involved in the processing traffic have free access to the shares allocated
   to it .
2. The e:rtent to which a Member State has used up its quota shares shall be
   determined on the basis of the added value as established when upon
   re-importation the products concerned are entered with the customs authorities
   for home use .
 ---pagebreak---                                     <40-
                                 Article 10
Member States snail inform tlie Commission at regular intervals of the
operations charged against their shares .
                                 Article 11
Member States and the Commission shall co-operate closely to ensure that
this Regulation is complied with .
                                 Article 12
This Regulation shall enter into force on 1 September 1 974 •
This Regulation shall be binding in its entirety raid directly applicable
in all Member States .
Done at Brussels ,                                   For the Council
                                                     The Président