CELEX: 51982PC0088
Language: en
Date: 1982-03-03
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 traffic (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82) 88
Vol. 1982/0031
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 ---pagebreak--- COMMISSION Or THE EUROPEAN COMMUNITIES
                                                   COM(82)88 final
                                                   Brussels , 3 March 1982
                               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 traffic
                 ( submitted to the Council by the Commission )
                                 ;    ■.
                     •;          I• :         < •      r
 C0MC82 ) 88 final
 ---pagebreak---                                                                                           cs>n % ?
   ?n en Arr::r.cs.v,sr; i-        '' concluded 'with- the Swiss Confederation on 1 August 1v
   the . Eurcpwrn Sconowic CommWi'ty undertook to open an annual . dMty~free
   Community tariff quota of 3 870 000 units of account of added value for
   various kinds of orocesslng .work in respect of certain textile products
       *                                                      • .1 1 '  • r \ i*i rt « *       ; 1 ' '
   under the autwarcHprOcessing traffic arrangements between the Co^-nunity
   and Switzerland *                      f;         : \t    "         ■'                                                     :
    Under the terms of ' the memorandum ag^eecfft " the .tifte 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
" egreesnents: ( concluded with Switzerland by France, Germany- end Italy ),
    but taking into'^ account tha* possibi lities of extending it 'to the Benelux
   countries . .                             ".... v.      . •' '-.V           n        :  ...      . . •• .             *  '
                        1' ; ■ . .                                        !.l ' r' . .             rV '' . . ~ ; - ' ■      . .
    On the basis of that division the total puota . amount . of 1' 870 000 units •
  "of account . is allocated , 1n accordance vfith certain amendm.ents > as follows :
       ( 1)' - 1 520 000- units of- account for processing work on woven fabrics fall
 ■         , •. within Chapters . 50 ; to' 57 of the ' ■ Comjndir-.' Customs Tariff;
     Cii }- 123 000 units of . account for twisting or •throwing, rertwi sting,
   • ,            cabling ,* "text ur'i zing-' '(whether or 'not combined with other' processing
                  work ) of . yams .-falling within. Chapters 50                                       t$7- of. the" Common
               ■ Customs Tariff;                       . '                                                         '
    (4ri )        22? 000 units of account for processing work on articles falling
            . . within headings . Nos' 58.04,- 5S»05,: 'SS'^OV 38w08, 50.09 and '60.01
           " of -the ''Common Custosas Tariff, 'su^lje.ct to . the setting up of a •. ... •
         , . ' / Cornnunity. reserve - o'f - 230 000 u*a»|' to be''drr?,wn from'-thc above
                • quotas > '4 « e « - '140 CM u«a «>\ 15. .Q0Q -. &■«& » .and' -ST-'OQO u fl 3 «" respectively .
 ---pagebreak---                                                  t        - 2 -
   S.,""TSie' qi-res't'lon whether this • Arrrjngeraant: . shoul'd4' contlnwo beyond 31 August 19 / 7
              has' been exeiai ned on several occasions , notably at the iseeting of th-3       .
   ••" • • ' 's 'EC-S 'i 'itzerland - Join* Committee held on 3 November 1976, in regard, to        -■
              the quota amounts' which should be adopted thenceforth , account being . ,
  r           taken of the fact that the' transitional period 'in, the free Trade
 ); ■ Agreement concluded .with Switzerland ,;; under -which textile products-
r . mus I ifying for'Swtsr origin . status by reason 'of the processing . work
f.-          they have undergone can enter duty-free* expired . on 1 July 1977 .
jf •         This question was reconsidered at the . meeting of the Joint Committee
f •          held on a 'fey 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               regards the -following points ;
                   reduction to be made to the total quota amounts . '              ■ .      ;
 r' . -            division of 'this amount into three categories bf processings '
 };•- />           allocation of quota - amounts' among WeBibsr -State's/ . '
  I; .                 -                                  ' . ..
  j'v • with regard to the first three points raised/ the Swiss delegation laid ;
  'f ' .■ stress - on the retention of the .'Arrangement' anid its MenioranduaTin their .-.-
  ■ ■ '"present - form ,, but agree provisionally, to the abolition of the division . ' 1
  *' of the total -.quota amount of -1 870 000, ^UA/I nt-o the three -categories . .' • . •
  r ; of processing initially'' adopted, and .hence' to ;. the aggregation of - the                  ;
  j . shares allotted to 'Certain Member States ;-
  3,          The attached proposal for. a Regulation'' therefore 'serves no other purpose ■
  r           than to open, , -in " _        ECU      _ _ _         the tariff quota provided for ;
  f           in -the ' Arrangement in question for the1- -period' i . 'September 1982 ' to       \ ;
  t         '31 August 1983 and to allocate . It . among the Member States - along the . •
       . lines- set out in the ffleroorandum -covering -., the .Arrangement, account '                ;
   •         'being taken of the adaptations that .-have: taken- place meanwhile and of .
              the need-to ensufe thatI; • all " Y-ftercker : ; Ststes - share 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 undei
                                      Community outward processing traffic
THE COUNCIL OF THE EUROPEAN                               Whereas provision should be made in particular to
COMMUNITIES,                                              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
Having regard to the Treaty establishing the European     the quota is exhausted, to ail goods re-imported into
Economic Community, and in particular Article 113         any of the Member States and which have received
thereof,                                                  one or other of the treatments lisred above ; whereas,
                                                          in the light of these principles, arrangements for the
Having regard to the proposal from the Commission.        utilization of the quota based on an allocation among
                                                          the Member States would seem to be consistent with
                                                          the Community character of the said quota : whereas
Whereas , on 1 August 1969, the Community                 it therefore seems advisable to make the allocation on
concluded an arrangement with Switzerland on              the basis of the amount of the traffic under the pre­
processing traffic in textiles ; whereas under that       vious bilateral Agreements, but without precluding
arrangement the Community undertook to open, on 1         participation by Member States not previously
September of every year, an annual duty-free Commu­       involved in such traffic :
nity tariff quota for processed goods of ' 1 870 000
units of account of added value, apportioned , . as ,
follows :                                           .i  .
                                                          Whereas, to safeguard the Community character of
(a) 1 650 000 units of account for processing work on     the quota, provision shou'd be made to meet require­
    woven fabrics falling within Chapters 50 to 57 of     ments which may arise in those Member States permit­
     the Common Customs Tariff ;            ,             ting them to draw ; adequate amounts from the
                                                          Community reserve ,
(b) 143 000 units of account for the twisting or
     throwing, cabling and texturizing (whether or hot                         '[ ;
     combined with other processing work) of yarns
                                                          Whereas,, to take account of possible developments in
     falling within Chapters 50 to 57 of the Common       the traffitr in question in the various Member States,
     Customs Tariff ;
                                                          the total quota volume of 1 870 000 ECU should be
(c) 77 000 units of account for processing work on        divided into two instalments, the first being allocated
     products failing within heading Nos 58.04, 58.05,    among certain Member States and the second held as
     53.07, 58.08, 58.09 and 60.01 of the Common          a reserve to cover^ the subsequent requirements of
     Customs Tariff ; .                                   Member States when one of their initial shares has
                                                          been exhausted, and also requirements which may
                                                          arise in certain Member Stares in respect of processing '
Whereas, in order to facilitate administration of this    work for which no. initial share of the quota was allo­
tariff quota, it was decided no longer to allocate a      cated ; whereas, in order to give the parties concerned
quota, provisionally, to each of the above three          In each Member State some degree of certainty, it
categories of processing ; whereas the quota in ques­     •would seem appropriate to lis the firs; instalment of
tion should therefore be opened for the period 1          the Community quota at* a relatively high level,
September 198 2 to 31 August 1983 according to the        namely 1 640 000 ECU ;
 procedure provided for under the above arrangement,                r.        i ; . :
as amended and in compliance with the provisions of
 Council Regulation (EEC) No 2779/78 of 23
 November 1 978 on the procedure for applying the         Whereas the Member States may exhaust their initial
 European unit of account (EUA) to legal acts adopted     shares at different, rates ; whereas to avoid disruption
 in one customs sphere (!), and in particular Article 2   of supplies on this account, it should be provided that
 thereof, and the provisions of Council Regulation        any Member State which has almost used up one of its
(EEC./Euracom) No" 3308/80 of 16 December I9S0 on         initial shares should draw an additional share from the
 the replacement of the European unit of account by        reserve ; whereas, each time its additional share is
 the ECU in Community legal instruments (2) ;             almost exhausted, 1 a Member State should draw a
                                                           further share, and so on, as many times as the reserve
(>) OJ No L 333, 30. 11 . 1978, p. 5.                     allows ;< whereas the initial and additional shares
(2) Oj No L 345, 20 . 12. 1580, p. 1-                     should be valid until the end of the quota period ;
                                                                    :■        n :
 ---pagebreak--- whereas this form of administration requires close              58.07 Chenille yarn (including flock chenille
collaboration between the Member States and the                          yarn), girnped yarn (other then metallized
Commission, and the Commission must be in a posi­                        yarn of heading No 52.01 and gimped
tion to keep account of the extent to which the quota                    horsehair yarn) ; braids and ornamental trim­
had been used up and to inform the Member States                         mings in the piece ; tassels, pompons and
accordingly ;                            -                               the like ;
                                                                58.08 Tulle and other net fabrics (but not
Whereas, if at a given date during the quota period a                    including woven, knitted or crocheted
considerable quantity of a Member State's initial share                  fabrics), plain (a) ;
remains unused, it is essential, to prevent a part of the
Community tariff quota from remaining unused in                 58.09 Tulle and other net fabrics (but not
one Member State while it could be used in others,                       including woven, knitted or crocheted
that such State should return a significant percentage                   fabrics), figured ; hand or mechnically made
thereof to the corresponding reserve ;                                   lace, in the piece, in strips or in motifs ;
                                                                60.01 . Knitted or crocheted fabric, not elastic or
Whereas, since the Kingdom of Belgium, the                               rubberized.
Kingdom of the Netherlands and the Grand Duchy of
Luxembourg are united in and jointly represented by        2. For the purposes of this Regulation :
the   Benelux       Economic    Union,    all transactions
concerning the administration of the shares allocated      (a) 'processing work means :
to that economic union may be carried out by any
one of its members,                                             – for the purposes of paragraph 1 (a) and (c) :
                                                                     bleaching, dyeing, printing, flocking, impreg­
                                                                     nating, dressing and other work which changes
                                                                     the appearance or quality of the goods, without
HAS ADOPTED THIS REGULATION :
                                                                     however changing their nature,
                                                                – for the purposes of paragraph 1 (b) : twisting or
                                                                     throwing, cabling and texturizing, whether or
                          Article 1
                                                                     not combined with reeling, dyeing or other
                                                                     work which changes the appearance, quality or
                                                                     finish of the goods, without however changing
1 . From 1 September 198 2 to 31 August 1983 a                       their nature ; .
Community tariff quota of 1 870 000 ECU of value
added shall be opened in respect of goods resulting        (b) 'value added' means the difference between the
from processing work as provided for in the arrange­            value for customs purposes as defined in Commu­
ment with Switzerland on processing traffic in textiles          nity Regulations on this subject at the time of
as follows :                                           ■         re-importation and the value for customs purposes
                                                                 as it would be if the products were re-imported in
(a) processing work on woven fabrics falling within              the state in which they were exported.
    Chapters 50 to 57 of the Common Customs
    Tariff ;                       ■                     '
       \                                                   3 . Within this tariff quota, the Common Customs
(b) twisting or throwing, cabling and texturizing          Tariff duties shall be totally suspended.
    (whether or not combined with other processing                                 :  I .
    work) of yarns falling within Chapters 50 to 57 of     Within the same limits, Greece shall apply customs
    the Common Customs Tariff ;
                                                           duties calculated in accordance with the provisions of
(c) processing work on products falling within the         the 1979 Act of Accession and of the protocols
    following headings of the Common Customs               concluded by reason of that accession.
    Tariff :
                                                           4. Re-irr\ports of products resulting from this
    58.04 Woven pile fabrics and chenille fabrics          processing work may not be charged to the tariff
             (other than terry towelling or similar terry  quota if they are already free of customs duties under
             fabrics of cotton falling within heading No   other preferential tariff arrangements.
             55.08 and fabrics falling within heading No
             58.05) ;
    58.05 Narrow woven fabrics, and narrow fabrics
                                                                                     . Article 2
             (bolduc) consisting of warp without weft                  i
             assembled by means of an adhesive, other
             than goods falling within heading . No         1 . The tariff quota referred to in Article 1 ( 1 ) shall be
             58.06 :                                       divided into two instalments.
 ---pagebreak---                                                              - 3 -
Tr j first instalment, 1 640 000 ECU , shall he allo-                                      Article 6
cked as set out below .miong the Member States listed
in the above arrangement ; the shares, subject: to            The Member States refem-d to in Article 2 (!) snail,
Article 6, sisali be valid from 1 September ac to 31          not btf.r than 1 July 1 983 ^ return to the reserve the
Au-juat ISS3-                                                 unused portion of their inUW share ■swhich , on . 15
                                                              June 1 98 3_is in excess of 20 % of ths initial amount.
                                             (ECU)            They may return a greater portion if there arc grounds
          Bénélux                           20 000            for believing that it may not be used in full
          Gerrr.any                      1 0S0 000
          France                           520 000            Member States shall, riot later than 1 July ' 983 /notify
          Italv                             20 000            the Commission of the total quantities of the product
                                                              in question re-imported up to and including 15 June
2.     The     second  instalment,   which   amounts      vo  1983 and charged against the Community quota and
230 000 ECU, shall constitute a Community lescrve.            of any portion of their initial quota returned to the
                                                              reserve.
                         Article 3
                                                                                           Article 7
In case of need in the other Memoer States the State
concerned shall, to the extent that the reserve so             the Commission shall keep an account of the shares
permits, draw from such reserve a sufficient share of         opened by the Member States pursuant to Articles 2, 3
the quota.                                                    and 4 and shall, as soon as the information reaches it,
                                   i                  . I     inform each Member State of the extent to which the
                                                              reserve has been used up.
                         Article 4                    1'
                                                              It shall, not later than 5 July 1983 , inform the
1.      If a Member State has used 90 % or more of its
                                                              Member States of            the   amounts  still in  reserve
initial share as fixed in Article 2(1 ), or that share        following any return of shares pursuant to Article 6.
minus any portion returned to the reserve pursuant to
Article 6, it shall forthwith, by notifying the Commis­
sion, draw a second share, to the extent that the rele­       It shall, ensure thap when an amount exhausting this
                                                              reserve is drawn the amount so drawn does not exceed
vant reserve so permits, equal to 10 % of its initial         the balance available, and to this end shall notify die
share, rounded up as necessary to the next whole
number.                                           . '
                                                              amount of that balance to the Member State making
                                                              the last drawing.         ;
2.      If a Member State, after exhausting its initial
share, has used 90 % or more of the second share
                                                                                           Article H
drawn by it, that Member State shall, in. accordance
with the conditions laid down in paragraph 1 , draw s»
third share equal to 5 % of its initial share.          ;     1.     Member States          snail   take all   appropriate
                                                              measures to ensyre that additional shares drawn
3.      If a Member State, after exhausting its second        pursuant to Artifiif, 4 are opened in such a way that
share, has used 90 % or more of the third share drawn         re importation npiay be charged veithoi't interruption
by it, that Member State shall, in accordance with the        against their acquiQuiated shares of the Community
same conditions, draw a fourth share equal to the             tariff quota.           ;
third .
                                                              2.     Every Member State, shall ensure that all persons
This process shall continue to apply until the reserve        established in its territory involved in the processing
is exhausted.                                                 traffic, ;have free ; ;access to the shares allocated to it.
4. By way of derogation from paragraphs 1 , 2 and             3.    The extent to; which a Member State has used up
3, a Member State may draw shares lower than those            its shares shall be; determined on the basis of the value
specified in those paragraphs if there are grounds for        added, as established when upon re-importation the
believing that those specified may not be used in full.       products concerned are entered with the customs
Any Member State applying this paragraph shall                authorities for free circulation .
inform the Commission of its grounds for so doing.
                                                                                           Article 9 .
                         Article 5
                                                              At the; request of: the Commission, the Member States
Additional shares drawn pursuant to Article 4 shall be        shall inform it of any re-importations of. the products
valid until 31 August 1983 - .                                in question actually charged against their share.
 ---pagebreak---                      Artide 10                                                  Article 11
Member States and the Commission shall cooperate
closely to ensure that this Regulation is complied        This Regulation shall enter into force on 1 September
with.                                                     1982 .
            This Regulation shall be binding m its entirety and directly applicable in all Member
            States.
            Done at Brussels,
                                                                    For the Council
                                                                      The President