CELEX: 51975PC0214
Language: en
Date: 1975-05-21
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for processing work in relation to certain textile products under the outward processing traffic arrangements of the Community (submitted to the Council by the Commission)

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COM (75) 214
Vol. 1975/0078
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 ---pagebreak--- COMMISSION GIF THE EUROEEAN COMMUMTISS
                                             COM(75)214 final.
                                             Brussels , 21 May 1975
                                 Proposal for a
                       REGULATION (?"C ) OF THE COUNCIL
                 on the opening , allocation and administration
                 of a Community tariff quota for processing
                 work in relation to certain textile products
                 under the outward processin    traffic arrangements
                 of the Community
               ( submitted to the Council V t' e Commission )
    COW 75 ) 214 final .
 ---pagebreak---                                EXPLANATORY MEMORANDUM
1. In an Arrangement     concluded with the Swiss Federation on I August 19 69 *
   the European Economic Community undertook to open an annual duty free
   Community tariff quota of 1,87® , 000 units of account of added value on the
   various kinds of processing work for certain textile products included in the o
   outward processing traffic of the Community t » Switzerland .
2. Under the terms »f the memorandum agreed at the time the Arrangement was
   made , this annual tariff quota is divided into three categories of pro­
   cessing ! based on the quantities recorded und.er the former bilateral agree­
   ments ( concluded with Switzerland by France , Germany and Italy ), but taking
   into account the possibilities of extending it to the Benelux countries .
   On the basis ®f that division the total quota amount of 1,870,000 units of
   account is appropriated as follows ;
   a) 1,650,000 units of account for processing work on woven fabrics falling
       within Chr.pt ers 50 to 57 of the Common Customs Tariff ;
   b ) 143,000 units of account for twisting or throwing , re–-twisting cabling ,
       texturizing (whether or not combined with ether processing work) of yarns
       falling within Chapters 50 to 57 of the Common Customs Tariff ;
   c) 77 » 000 units of account for processing work on articles falling within
       headings 58»04 l 58.05 , 5&.0], 58 . 08 , 58 . 09 and 6^.01 of the Common
       Customs Tariff .
   (I ) OJ No L 240 , 24.9.1969 .
 ---pagebreak---  At the request of the Swiss authorities and so that the division of the
 whole quota into the three categories of processing referred to above should
 "be better related to the actual" movement of t"bade during the reference year
 which served as the basis for calculating the total amount of the quota and
 trade movements during recent quota periods or foreseeable movements , it was
  decided . to make certain transfers between the three quota amounts of
 which the final one was 150,000 u.a . , transferring from the figure alloca­
 ted for processing work on articles (category C ) to that set aside for
 processing work on woven fabrics falling within               Chapters 50 to 57 * Simi­
 larly and in order to allow access to the tariff quota , it was decided that
 the Community reserves should be amalgamated and that in this way the new
 reserve could cover all types of processing work regardless of the cate­
 gory they come under.
 The total quota amount of 1,870,000 u.a. would be allocated among the three
 categories , as follows :                                                         . .     ,.
 – 1,520,000 u.a. for processing operations on woven fabrics failing within
                                              J ? ' ■ . 'w .                  ■ . i.     , *"
    Chapters . 50 to 57 of "the Common Customs Tariff j
 – 123,000 u.a. for processing operations on woven fabrics falling                  within
    Chapters 50 to 57 of "the CCT$
 – 227,000 u.a. for processing work on articles falling within headings
    58.04 to. , 60. 01 of the CCT , subject to the setting up of a Community re–
    serve of 230,000 u.a. to be drawn, from the above amounts , that is 160,000
    u.a., 13.000 u.a. ,an,d 57 » 000 u.a. respectively .
                                                          v  v  «■ ' *   *
The only objective of the proposal Regulation annexed hereto is , therefore ,
to open the tariff quota provided for in the Arrangement concerned for the
period from I September 1975 to 31 August 197 6 , and to divide it between "the
Member States according to the factors shown in the Memorandum to the Arrange­
ment referred to above , taking into account the amendments which have been
made meanwhile and the need to provide for the participation of the new
Member States in the allocation of the tariff quota.
 ---pagebreak---                                           -3-
    It should however be noted in this connection that according to information
    obtained during the meeting of the joint EEC - Swiss Commission , confirmed
    by the State of exhaustion of the quota concerned during previous quota
    periods , the new Member States are not using outward processing for their
    textileproducts . Until such time as the said Arrangement is repealed or
    thoroughly amended by reason of the expiry of the period of transition of
    the Association Agreement concluded with Switzerland , it should be possible
    in order to cover any needs which could arise in the new Member States for
    these States to draw a sufficient share , where necessary , from the Community
    reserve .
5 . The proposal for a Regulation annexed hereto provides for the administration
    of the quota by the system of prior allocation and that the maximum amount
    returned to the reserve shall be 20$ of the initial share .
                              /
 ---pagebreak---                                   Proposai for a
                  REGULATICN (EEC ) No.     ,/73 QF.THE COUNCIL
                               from .           i •• .
                    on the opening, allocation and administration
                    of a Community tariff quota for processing work
                    in relation to certain textile products under
                    the outward processing traffic arrangements of
                    the Community
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,     .
Having regard to the Treaty establishing the European Economic Community ,
 and in particular Article 113 thereof 5
Having regard to the proposal from the Commission }              ,  '
Whereas on I August 1969 the Community concluded an Arrangement with Switzer­
 land on the processing traffic in textiles } whereas under that Arrangement
the Community undertook to open an annual Community duty-free tariff quota on
 I September every year amounting to a total of 1,870,000 units of account of
 added value for processed goods , divided as follows ;
 a) 1,650,000 units of account for processing work on woven fabrics falling'
    within Chapters 50 to 57 of the Common Customs Tariff }
b) 143 » 000 units of account for the twisting or throwing, cabling, texturi­
    zing (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 aocount for processing work on articles falling within
    heading Nos 58»Q4» 58*05 , 58.07 , 58*08 , 58*09 and 60.01 of the Common
    Customs Tariff }
 ---pagebreak---                                       -2-
Whereas , in order that the division, of the whole quota into the three
categories referred to above shall correspond more exactly with the actual
movement of trade ^during .the reference year or, . during previous quota periods
as well as with the foreseeable movement of trade during future quota periods ,
it has "been decided to adjust the said allocation "between the three cate­
gories by giving them 1,520,000 , 123,000 and 227,000 units of account
respectively j whereas the Community tariff quota in question should be
opened for the period I September 1975 to 31 August 1976 according to the pro­
visions laid down in the Arrangement specified above , and in amendments to it )
Whereas equal and continuous access to the quota should be ensured for all
interested parties and the rate of duty for the tariff quota should be app­
lied consistently until the cjiota is exhausted to all products which have
undergone ojie of the processes mentioned above and have been reimported
into the Member States j whereas in the , light of these principles , arrange­
ments for the utilization of the Community tariff quota based on an alloca­
tion among Member States would seem to be consistent with the Community
nature of the quota j whereas , therefore , it seems appropriate to make the
allocation taking into account the quantities recorded undeir the previous
bilateral agreements , without prejudicing the opportunities of Member States ,
including the new Member States , which were not involved previously in this
traffic ; whereas to safeguard the Community nature of the quota in questions ,
provision should be made to meet requirements which may arise in these
Member States in the future by allowing them to draw sufficient quantities
from the Community reserves
                                                             , •••/•••
 ---pagebreak---                                       -3-
Whereas to take account of future trends in the traffic in question in the
various Member States , the total quota volume of 1,870,000 units of account
should be divided into two tranches , the first being allocated among certain
Member States and the second part held as a reserve to cover subsequently
the requirements of Member States which have exhausted their initial share
of the quota , and requirements which may arise in the other Member States'
processing work for which an initial share of the quota was not allocated !
whereas to give the parties concerned in the other Member States some de­
gree of certainty it would be appropriate to fix the first tranche of the
Community tariff quota at a relatively high level , that is at 1,640,000
units of account | whereas the total Community reserve of 230,000 units of
account shall consist of amounts drawn from the allocations in respect of
each category , that is 160,000 , 13,000 and 57»000 u.a. respectively !
Whereas Member States may exhaust their initial shares at different rates !
whereas to avoid disruption of supplies on this account it should be provi-
dedthat any Member State which has almost used up one of its initial shares
should draw an additional share from the reserve ! whereas each time its
additional share is almost exhausted a Member State should draw a further
share , and so on as many times as the reserve allows ! whereas the initial
and additional shares should be valid until the end of the quota period ;
Whereas this form of administration requires close collaboration between
the Member States and the Commission , and the Commission must be in a posi­
tion to keep account of the extent to    which the quota has been used up
and to inform the Member States accordingly !
Whereas if at a given date in the quota period a considerable quantity of a
Member State 's initial share remains unused it is essential , to prevent a
part of the quota from remaining unused in one Member State while it could
be used in others , that such State should return a significant proportion
thereof to the reserve j
Whereas , since the Kingdom of Belgium , the Kingdom of the Netherlands and
the Grand Duchy of Luxembourg .are united within and jointly represented
                                                         • • • I• • •
 ---pagebreak---                                                   -4-
   by the Benelux Economio Union , any transaction in respect of the admini­
    stration of the shares allocated to that Economic Union may be carried out
   "by any one of its members ! -             -
   HAS ADOPTED THIS REGUI^ICNî              .   _  .
                                              Article I
I. There , shall be opened for the period I September 1975 "to 31 August 1976 a
   Community tariff quota of 1,870,000 units of account of value added in re­
   spect of. goods resulting from the processing work provided for in the
   Arrangement with Switzerland on processing traffic in textiles . Such quota
   shall be divided as follows :
   a) 1,520,000 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, texturizing ,
         (whether combined with other processing work) of yarns falling within
         Chapters 50 to . 57 of the Common Customs Tariff }
   c) 277»000 units of account for processing work on articles falling within ,
         the following headings of the Common Customs Tariff :
         53.04 - Woven pile fabrics and phenille fabrics :( other than terry towel–\
              ... ling or similar terry fabrics of cotton falling within heading
                   No . 55 * 08 and fabrics falling within heading Ho . 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 . 05 J , .
         58.07 Chenille yarn (including flock chenille yam), gimpod yarn (other
                   than metallised, yarn of heading No 52.01 and gimped horsehair
                   yarn) J braids and ornamental trimmings in the piece } tassels , pom­
                   poms and the like }
         58.08 Tulle and other net fabrics (but not including woven, knitted or
                   crocheted fabrics ), plain j
         53.09 Tulle and other net fabrics (but not including woven , knitted or
                   crocheted fabrics ), figured } hand or mechanically made la'?e , 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" means :
        - for the purposes of paragraph I ( a) and ( c ): bleaching, dyeing, .
           printing, flocking, impregnating, dressing and other work which
           changes the appearance of -quality of the goods , without , however ,
           changing their nature j ,       ^
        - for the purposes of paragraph I (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 pur­
        poses as defined by Regulation (EKJ) No 803/68 (i) and the value for
        customs purposes as it would be if the products were imported in the .
        same state in which they were exported .
3 . Each of the amounts referred to in paragraph I shall be subdivided into
    two tranches 5 the first shall be allocated among certain Member States in
    accordance with Article 3$ the second shall constitute a Community reserve
    for the three categories of processing.
4 . The Common Customs Tariff duties shall be totally suspended in respect of
    importations under the above quota.
    New Member States shall apply in respect of importations within the quota
    duties calculated in accordance with the relevant provisions of the Act
    of Accession .
    I0J No L 148 , 28.6.1968, p. I.
 ---pagebreak--- The first tranche of each of the amounts referred to in Article l(l ) shall
be allocated as follows aajong the Member States mentioned in the Arrange­
ment 5 the shares shall be valid subject to Article 6 from I September 1975
to 31 August 197 ^
a) Germanyj                                                                         M'
   1 , 080,000 units of account , divided as follows :
   - 850,000 units of account for processing work on woven fabrics falling
       within Chapters 50 to 57 of the Common Customs Tariff j
   - 100,000 units of account for twisting or throwing, cabling, texturizing
       (whether combined with other processing work) of yarns falling within
       Chapters 50 to - 57 . of the Common Customs Tariff j
   - 130,000 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 Coriimon
       Customs Tariffs '                                                               ,v
b) France :
   520,000 units of account , divided as follows :
   - 500,000 units of account for processing work on fabrics falling within
       Chapters 50 to 57 of the Common Customs Tariff j
   - 20,000 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 Tariffs
c) Italy:                                          ■'                            7
   20,000 units of account , i.e. half for twisting or throwing, cabling,
   texturizing (whether combined with other processing work) of yarns fallin
   within Chapters 50 "to 57 of the Common Customs Tariff, and half for pro­
   cessing work on woven fabrics falling within Chapters 50 to 57                  on
   articles falling within headings 58 . 04, 58.05 , 58*07 , 58 * 08 , 58 . 09 and
   60.01 of the Common Customs Tariffî :
 ---pagebreak---                                               -7-
    ά) Ββηθίΐΐχί                            ;
       20,000 units of account for processing work -on yarns and woven fabrics
       falling within Chapters 50 to 57 or on articles falling within headings
       58.04 , 58.05 , 58.07 , 58.08 , 58.09 and 60.01 of the Common Customs Tariff.
2 . The second tranche of each of the amounts referred to in Article l(l ):
    - 160,000, 13,000 and 57 » 000 units of account respectively - shall ,
      constitute the Community reserve , which shall thus amount to 230,000 .;
      units of account .
                                         Article 3
    If the processing work referred to in Article l(l)(b) is required in Prance
    or if any processing work is required in the new Member States , those States
    shall draw a sufficient share from the reserve , to the extent that the re­
    serve so permits .
                                         Art ici g 4
1 . As soon as a Member State has used $Ofa or more of one of its initial shares
    as fixed in Article 2(l), or of that share minus any portion returned to the
    reserve pursuant to Article 6 , it shall forthwith , "by notifying the Commission,
    draw a second share , to the extent that the reserve so permits , equal to
    10$ of its initial share , rounded up to the nearest unit .
2 . As soon as a Member St ate t after exhausting one or other of its initial .
    shares , has used SCffo or more of the second share drawn "by it , that Member
    State shall forthwith , in the manner and to the extent provided in para­
    graph X , draw a third share equal to 5$ of its initial share .
 ---pagebreak---                                       -s-
As soon as a Member State , after exhausting one or other of its second,
shares , has used 9 or more of the third share drawn by it , that -Member
State shall , in the manner and to the extent provided in paragraph I , draw
a fourth share equal to the third.
It shall continue in this fashion until the reserve is exhausted.
By way of derogation from paragraphs I , 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 5
Additional shares drawn pursuant to Article 4 shall be valid until 31 Au­
gust 1976 .
                                   Article .6 . .
A Member State which on 15 May 1976 has not exhausted one or other of its
initial shares as fixed in Article 2(l ) or resulting from the application
of. Article 3 shall not, later than TO June 1976 return to the reserve any
unused portion in excess of 20fc of the initial amount . It ,nay 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 1976, notify the Commission of
the total quantities of the product in question reimported up to and inclur-
ding 15 May 197 ^ and charged against the Community quota and of my portion
of their initial shares 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 reserve has been
    used up .
    It shall , not later than 15 June 1976 , inform the Member States of the
    amount still in reserve following any return of shares pursuant to Article 6 .
    It shall ensure that when an amount exhausting the reserve 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.
                                                            " I'
                                      Article 8
1 . Every Member State shall take all appropriate measures to ensure that shares
    drawn pursuant to Article 4 are opened in such a way that importations may be
    charged without interruption against its accumulated share of the Community
    quota.
2. Member States shall administer their shares by the system of prior alloca­
    tion. They shall ensure that all persons involved in the processing traffic
    in their territory have free access to the quotas allocated to them.
3 . The extent to which a Member State has used up its shares shall be deter­
    mined on the basis of the value added admitted upon reimportation of the
    products concerned entered with the customs authorities for home use .
                                                                 * m • /• • •
 ---pagebreak---                                     -10-
                                   Articlé 9
Every Member State shall notify the Commission at regular intervals of
products reimported and charged against its share .
                                   Article 10
The Member States and the Commission shall cooperate closely to ensure that :
this Regulation is complied with .
                                   Article II
This Regulation shall enter into force on I September 197 5 *
              This Regulation shall be binding in its entirety end directly'
              applicable in all Member States .                      "
Done at Brussels ,                            For the Council
                                              The Pre sïdélit •