CELEX: 51982PC0840
Language: en
Date: 1982-12-08
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) on common rules for imports of certain textile products originating in third countries (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82) 840
Vol. 1982/0256
 ---pagebreak--- Disclaimer
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 ---pagebreak---                                                                   COM(82 ) 840 final
      COMMISSION
        OF THE
                                                                  Brusse s,   December 1982
EUROPEAN COMMUNITIES                                              FOR OFFICIAL USE ONLY
    Generol Secretariat
                                 PROPOSAL FOR A COUNCIL REGULATION ( EEC )
                        on common rules for imports of certain textile products
                        originating in third countries
                               ( presented by the Commission to the Council )
    COM ( 82 ) 840 final
 ---pagebreak---                             EXPOSE DES MOTIFS
Ce projet de règlement est destiné à remplacer le règlement 3059 / 78 relatif
au régime commun applicable aux importations de certains produits textiles
originaires de pays tiers . Le régime établi par le dit règlement vient à
expiration le 31 décembre 1982 .
Le projet de règlement nouveau se fonde sur les principes et la structure de
son prédécesseur et tient compte également des éléments des nouveaux accords
bilatéraux textiles de la Communauté qui         diffèrent des anciens accords .
Il s' agit notamment des di sposi tlons . concernant l' introduction de nouveaux
quotas (" sortie de panier "), les augmentations abruptes des Importations
(" surges ") et la fraude .
 ---pagebreak---                  DRAFT
         COUNCIL REGULATION
   on common rules for imports of
certain textile products originating
         in third countries
 ---pagebreak---                                                            I
                                         (Acts whose publication is obligatory)
                                    COUNCIL REGULATION (EEC) No .
                                                 of     December 19
               on common rules for imports of certain textile products originating in third countries
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                        having equivalent effect to such quantitative
                                                                restrictions ;
Having regard to the Treaty establishing the                    Whereas it was agreed in the course of the
European Economic Community, and in particular
Article 113 thereof,                                            negotiations by the delegations from the Community
                                                                and the supplying countries that the said delegations
                                                                should recommend their respective authorities to
Having regard to the proposal from the Commission,              apply the arrangements set out in the Agreements
                 .·
                                                                negotiated on a provisional basis from 1 January
 Whereas the Community negotiated                               1978, pending their subsequent entry into force;
 agreements with a number of supplying
 countries on trade in textile products ;
 whereas both these agreements and the
 rules concerning their management laid                            Whereas it is necessary to ensure that the purpose of
 down in Council Regulation ( EEC )                                each of these Agreements shouid not be obstructed
 no 3059 ' 78 apply until 31 December 1982 ,                       by deflection of trade and that it is therefore
                                                                   necessary to determine the way in which the origin of
                                                                   the products in question is controlled and the
    Whereas the Community has accepted the extension               methods by which the appropriate administrative
    of the Arrangement regarding international trade in            cooperation is achieved;
  . textiles on the conditions laid down in the Protocol
    for the extension of the Arrangement and the                   Whereas compliance with the quantitative limits on
    conclusions adopted by the GATT Textiles                       exports established under the Agreements is ensured
    Committee on 21 December 1981 and annexed to                   by a double-checking system ; whereas > the
     that Protocol ;                                               effectiveness of these measures depends on the
     Whereas the Community has negotiated Agreements
     with a number of supplying countries on trade in
     textile products; whereas the said Agreements are
      intended to promote the orderly and equitable
      development of trade in textile products between the
      Community and its suppK ing countries, on the basis
      of cooperation between the contracting parties, and
       in particular to eliminate (he real danger of
       disruption of the Community market and the textile
       trade of the supplying countries ; whereas to this end
       they provide inter a!u that supplier countries' exports
       of certain textile products shall be subject to
       quantitative limits, and that the Community shall
       refrain from introducing quantitative restrictions
        undcr'Article XIX of the GATT or Article 3 of the
        abovementioned Arrangement, or applying measures
        ( 1 ) 0J no. L.ï'tï ,                     p. .
 ---pagebreak---         Community's establishing a set of Community
        quantitative limits to be applied to imports of all                certain threshold, agreement can be reached w ith the       Z.
         products from supplying countries whose exports are              supplying country on the introduction of quantitative         I -
         subject to quantitative limitations;                              limits;   whereas the supplying countries also
                                                                          undertake to suspend or    limit t.U'tr exports from the
                                                                          date of a request for such consultations, at the level
         Whereas products entering the customs territory of               indicated by the Community; whereas if no
         the \Community under the arrangements for inward                 agreement is reached with tne supplying country
         processing or other temporary admission                          within the period stipulated, the Community may
         arrangements anJ intended for re-exportation out of              introduce quantitative limits at a specific annual or
                                                                          multiannual level :
         the said territory in the same state or after processing
          should Hot be subject to such Community
          quantitative* limits:                                           Whereas the agreements established a system
                                                                          of cooperation between the Community and
          Whereas special rules are required for products                 the supplier countries with the aim of                            !
          re-imported undeV the arrangements for outward                  preventing circumvention by means of tranship­
          processing;
                                                                          ment , rerouting or other means ; whereas
                                                                          a consultation procedure is established under
          Whereas, in order to ap^Iv Community quantitative               which an agreement can be reached with a
          limits in conformity with rhe Agreements negotiated             supplier country in question on an equivalent
          with the supplying countries, it is necessary to                adjustment to the relevant quantitative limit
          establish a special management procedure; whereas it            when it appears that the agreement has been                         ,
          is dcoirablc that such common management system                 circumvented ; whereas supplier countries also
          be decentralized by allocating the quantitative limits          agreed to take the necessary measures to ensure
          among the Member States, and that the import                    that any adjustments could be rapidly applied ;
          authorizations be issued by the Member Sates
          authorities in accordance with the Rouble-checking              whereas in the absence of agreement with a
           svstcm defined in the Agreements ;                             supplier country within the time limit provided,
                                                                          the Community may , where clear evidence of cir­
                                                                          cumvention is'-frFovided , apply" the»equi valent
           Whereas, in order to ensure the best possible                  adju    !
                                                                          adjustment      .
           utilization of the Community quantitative limits, they
           should be allocated in accordance wittj the                        Whereas
                                                                              Wh<       in order inter aha to comply with time
           requirements of the Member States and with the                    limii set in the Agreements it is necessary to lay
                                                                             limits
           quantitative objectives established by the Council;               dow a rapid and efficient procedure fe>r introducing
                                                                             down
           whereas, however, the extent of the dispariti.es                  such
                                                                             such    quantitative  limits   and    concluding   such
'          existing in the conditions for importation of these               Agreements
                                                                             Agr<         with the supplying countries;
           products into the Member States and the particularly
           sensitive position of the Community textiles industry             Whc
                                                                             Whereas the provisions of this Regulation must be
           mean that the said conditions can be standardized                 appl
                                                                             applied in conformity with the Community's              O
           only gradual!); whereas for these reasons allocation         .    jntei
                                                                             international obligations, in particular with thole
           of supplies cannot immediately be effected on the                 Axisi
                                                                             Arising from . the abovementioned Agreements with
            basis of requirements alone;                                     supplying
                                                                             supr       countries,
             Whereas it is also necessary to introduce efficient and
             rapid procedures for altering Community quantitative
             limits and their allocation to take account of the
             development of trade flows, needs for additional
             imports and the Community 's obligations under the
             Agreements negotiated with supplying countries ;
Whereas in respect of certain textile products
under Limitation the agreements provide a con­
sultation procedure with supplier countries
whereby a limit may be agreed to the growth of
imports of a product where significant use of
its related quantitative limit follows a marked
underuse ; whereas supplier countries agreed
as well to limit their exports from the
 of the consultation request at a level established
  in the agreements ; whereas in the absence of
 agreement within the specified time limits supplier
  countries agreed to limit the growth in their
  exports to a level established in the agreements ,
               Whereas, in the case of products not sl
               quantitative limitation, the Agreements provide
               consultation pre>cedure whereby, in the event thai jie
               volume <>f i iv ports of a given category of products
               ir.:o the C- rr -w. - tv or one of its regions exceeds a
 ---pagebreak---                             Artici* 1
This Peculation shall applj to inports into the Conrunitj of the
textile product ttide of cotton , wool and synthetic or artificial
fibres listed in Annex Z and originating in the countries listed
in Annex II (hereinafter called 'supplier countries' )*
The classification of the products listed in Annex I shall be based
on the nomenclature of the Common Customs Tariff and in the nomenclature
of goods for the external trade statistics of the Community and the
statistics of trade between Member States ( NIMEXE ), without prejudice
to Article 3 ( 7 ). The procedures for the application of this paragraph
are laid down in Annex VI .
Subject to the provisions of this Regulation the importation into
the Community of the-textile products referred to in paragraph 1 shall
not be subject to quantitative restrictions or measures having equivalent
effect to such restrictions .
 ---pagebreak---                           Article 2
1 . The origin of the products referred to in Article
1 ( 1 ) shrill be determined in accordance with the ru'es
in for e in the Community .
2.      The procedures for control of the origin of the
products referred to in Article 1 ( 1 ) are laid do\^n in
Annex         V .
 ---pagebreak--- _      '                        –  ■ '              I.
   1m 7h9 isportatioa Into the Commitj of tile textile pi*edicts listed
           In Annex III originating In one of the rappl ier countries listed
           in that Annex ar.d shipped                            between
          1 Jar.jiry 1 93 3 and 31 Tecexter 19-^ shall be eubject to      Ainual
  '       quantitative Halts laid down in that Annex *
  2«      These quantitative limits are broken down between Member States of
          the Community for the year 1983 as set out in Annex IV. The breakdown
          for the years 1984 to 1986 shall be adopted in accordance with the
          procedure laid down in Article 15 *
 3» The release for free circulation in the Cocnunitj of isports
         subject to the Corcronity quantitative Units referred to in
         graj-h 1 6hall be subject to the presentation of an irpcrt
         authorization or equivalent document Issued by the Pezzer Stages *
         authorities in accordance with Article 10 «
4* The authorized imports shall be charged against the Community
        quantitative limits laid down for the year la which the product®
        are shipped in the supplier country concerned . In this Regulation
        shipment of products shall be considered to have takin place :n
       the d3te of their loading onto the exporting aircraft , vehicle or
    - vessel .
 5*      Imports of products not subject to quantitative limitation before
         1 January 1983 which were in the course of shipment to the Community
        before that date shall not be subject to the Community quantitative
         limits referred to in this article provided they were shipped from the
         supplier country in which they originate before 1 January 1983 *
6 * The release for free circulation of products the importation of which
      was subject to quantitative limitation before 1 January 1983 and which '
      were shipped before the said date shall continue from that date to be
      subject to the presentation of the same import documents , and to the
      saijie import conditions , as before 1 January 1983 *                     *\
7. The definition of Cosaunity quantitative limits laid dova in
      Annex III and the categories of products to which they arplr
      shall be adapted in accordance with the procedure laid down in .
      Article 15 where this proves necessary to ensure that any subs^enl              ^
      acer.inent to the nomenclature of the Cocoon Custons tariff or t~e
      nomenclature of goods for the external trade statistics of the
      Cor.-u -. ity and the statistics of trade between Member States <NIMEXE) or any
      decision amtndim the classification of such products d°e.s not . result in a reduction
        of such quantitative limits .
 ---pagebreak---                             Article 4
  1 . The Community quantitative limits referred to
  in Article 3 shall not apply to the cottage industry
  and folklore products defined in Annex VII which
  are accompanied on importation by a certificate
  issued by the competent authorities of the country
  of origin in accordance with the provisions of Annex
  VII and which fulfil the other conditions laid down
  therein .
  2. The release for free circulation in the
   Community of the textile products referred to in
  paragraph 1 originating in the supplying countries
   listed in Annex VIII shall be granted only for those
   products covered by an import document issued by
   the competent authorities of the Member States,
   provided that similar machine-made products are
   subject to the quantitative limits referred to
  i n Arti c Le 3 .
   The said import document shall be issued auto­
    matically within a maximum of five working days
   from the date of presentation by the importer of
   the certificate referred to in paragraph 1 issued by
    the competent authorities of the supplying
    country.'
The import document shall be valid for six months and
      shall state the grounds for exemption as given in the
   i certificate referred to in paragraph 1 .
 ---pagebreak---                                   ARTICLE 5
1 . Should the level of imports into the Community of products falling
within a given Group I category referred to in Article 3 and originating
 in one of the supplier countries , exceed , in the course of a calendar
 year , the level of the preceding     calendar year by 10% of the quantitative
 limit for the current year in respect of that category , these imports
may be made subject to the measures provided for in this Article .
These measures may be limited to imports into specific regions of the
 Communi ty .
2.      Paragraph 1 shall not apply where the Community quantitative limits
established under Article 3 for the product wi,thin the category in
question originating in the supplier country concerned is less than
2.5% of total Community imports in 1980 for that Category .      However , in the
  of the countries referred to in Annexes XII and XIIA this level is 1% .
Paragraph 1 shall not apply where the level of imports of products
within the Category in question originating in the supplier country
   concerned during the current year is less than 50% of the quantitative
 limit established under Article 3 .
3.      Where the Commission finds , in accordance with the procedure laid 1
down in Article 15 that the conditions set out in paragraph 1 are
fulfilled and considers      that it is necessary', in the case of a given
 category of product :
 - to suspend wholly or in part the application of the provisions of
      Article 8 , or
 - to modify the quantitative limit established under Article 3 ,
 - and to compensate in respect of the third country concerned for the
      measures referred to in the first and second indents of this paragraph ,
  the Commission , with the concurring opinion of the Committee under the
 procedure in Article 15 :
  ( a ) shall open consultations with the supplier country concerned in
        accordance with the procedure set out in Article 14 with a view to
 ---pagebreak---         reaching agreement or joint conclusions in respect of the category
        products in question on :
        - the suspension wholly or in part of the provisions of Article 8, or
        - the modification of the quantitative limit established under
           Article 3 ,
        - as well as the corresponding equitable and quantifiable compensation .
  ( b ) may , pending a mutually satisfactory solution , request the supplier
        country concerned to restrain for a provisional one-month period
        from the date of notification of the request for consultations ,
        exports to the Community or one or more of its regions of the
        category of products in question .  This provisional limit shall be
        equal to one-twelfth of the level of imports of the category of
        products in question from the supplier country concerned     during the
        preceding calendar year .
                                                                                «
  ( c ) may, pending the conclusion of the consultations requested apply
        to the imports of the category of products in question , quantitative
        limits identical to those requested of the supplier country pursuant
        to point ( b ). These measures shall be without prejudice to the
        definitive arrangements to be made by the Community taking into account
        the results of the consultations .
        The measures taken under this paragraph shall be the subject
        of a Commission communication published forthwith in the
        Official Journal of the European Communities .
4 . The consultations with the supplier country concerned which are
     provided for in paragraph 3 ( a ) may lead to the conclusion of 'an
     arrangement between that country and the Community or the adoption
     of joint conclusions on the modification of the quantitative limit
     in question or on the suspension wholly or in part of the provisions
     of Article 8 and on the compensation referred to in paragraph 3 .
 ---pagebreak---    5.   Should the Community and the supplier country fail to reach a
   satisfactory solution within 15 days following the opening of
   consultations and at the latest within one month following the
   request for consultations/ the provisions of Article 8 may ,
   for the category of products in question , be wholly or in part
   suspended , or the quantitative limit established under Article 3
  may be modified so as to restrain exports to the Community or any
- of its regions to 125% of imports attained during the preceding
  calendar year or to the level of exports up to the date of the
  request for consultations plus the level of exports provided for
  during the consultation period under paragraph 4 , whichever is the
'higher .
  The application of the measures provided for in this paragraph shall
  be limited to the year in which they are taken .
  Should the provisions of this paragraph be applied , an offer of
  equitable and quantifiable compensation shall be maintained .
  6.   The arrangements provided for in paragraph 4 shall be concluded
  and the measures provided for either in paragraphs 3 and 5 or in the
                                                                       t
  arrangement or joint conclusions referred to in paragraph 4 shall be
  decided in accordance with the procedure laid down in Article 15 .
  7.   The annual level of the quantitative limits modified under
  paragraphs 3 to 6 may not be less than the level of imports into the
  Community or into the region or regions concerned in 1980 of products
  of the same category originating in the same supplier country .
  8.   The quantitative limits modified in accordance with paragraphs 4
  and 6 in any year preceding 1986 shall be subject to a growth rate so
  as to ensure that the level of the quantitative limit established under
  Article 3    for  the year 1986 is regained in that year .
  9.   Where this Article is applied in respect of one or more Community
  regions , the compensation referred to in paragraphs 3 , 4 and 5 will
  concern the region : or regions of the Community indicated in the request
  for consultations .
 ---pagebreak---                                                                       / ' 10 .
10 . The quantitative limits established pursuant to paragraphs 3 to 6
     shall not apply to products which have already been dispatched to
     the Community provided that they were shipped from the supplier country
     in which they originate for export to the Community before the date
     of notification of the request for consultations .
 ---pagebreak---                                           Artnlc 6
                  1 . The Community quantitative limits referred to
                  in Article 3 shall not apply to products admitted into
                 the customs territory of the Community under the
                  arrangements for inward processing or other
                  suspensive arrangements, ptovided that they are
                 declared to be for re-export under such a system
                  outside the said territory in the same state or after
                  processing.
                   The subsequent rele.ise for free circulation of the
                    products referred to in the first subparagraph shall be
                    subject to the quantitative limits referred to in Article
                   3 and to the presentation of an import authorization
                   or equivalent document issued in accordance with
                    Article 3(3 ) and the products so released shall be
                   charged against the Community quantitative limit
                   established for the year for which the export licence
                   was issued .
             2*      Where the authorities in the Member States
              establish that imports of textile products have been
              charged against a Community quantitative limit fixed
              pursuant to Article 3 and that these products have
              subsequently been          re-exported outside the
              Community, they shall inform the Commission
              thereof and issue additional import authorizations for
              the same products and the same quantities in
              accordance with Article 3 ( 3 ) .
              Imports effected under cover of such authorizations
              shall not be charged against the Community
              quantitative limit for the current year or the                  «
              following year.
  Subject to the conditions laid down in Annex XIII , reimports into the
  Community of textile products after processing in the countries listed
  in that Annex shall not be subject to the quantitative limits referred
  to in Article 3 provided that they are effected in accordance with the
  regulations on economic outward processing in force in the Community ^
  Reimports into the Community of textile products after processing in the
r
  countries listed in Annex IX shall not be subject to the quantitative
  limits referred to in Article 3 provided that they are effected in
 accordance with the regulations on economic outward processing in force
  in the Community .
  Where imports into the Community of textile products Listed in Annex I and
  originating in the supptier countries Listed in Annex X are effected at
  abnormally low prices , the provisions of Annex X shall apply .
 ---pagebreak--- •Artide 7
1 . The Community quantitative limits shall be
allocated in such a way as to ensure the improved
utilization of these quantitative limits and to attain
progressively * more balanced penetration of the
markets by means of improved burden-sharing
between the Member States.
2.    The allocation of the Community quantita­
tive limits shall be adapted in accordance with the
procedure laid down in Article 1 5 and according
to the criteria defined in paragraph I where this
proves necessary, particularly in view of trends in
patterns of trade, in order to ensure their improved
utilization .
3. In cases referred to in paragraph 1 which are
of particular economic importance to one or more
Member States, the Commission shall however
refer proposals for amendment of the allocation
directly to the Council . The Council shall act
upon such proposals in accordance with Article
 113 of the Treaty.'
 ---pagebreak---                                                                                      13 .
                                              Article 8
 1. Supplier countries other than the countries listed in Annexes XI and XII may ,
    after notifying the Commission in advance , utilize the shares allocated
    to Member States in the following ways :
                       (a) Advance utilization during any given year of a
                             portion of a share established tor the following
        '.i.                 year shall be authorized for each category of
                             products up to 5 % of the share for the year of
                             actual utilization .
                             Such advance imports shall l>e deducted from the
                             corresponding shares established for the
                             following year.
                        (t>) Carry-over of amounts not utilized during any
                             given year to the corresponding share for the
                             following year shall be authorised up to 5 % of
                             the share for the year of actual utilization.
    c ) Except for the countries listed in Annex IX , where the relevant                    *
          percentages in each case referred to below shall be 3*57°» "transfers
          of quantities in Group I categories shall be made only as follows :
         – transfers from category 1 to categories 2 and 3 shall be
               authorized up to 5% of the share established for the category
               to • which the transfer is made *
         – transfers between categories 2 and 3 shall be authorized \\p
               to 5% of the share established for the category to which the
               transfer is made *
         – transfers between categories 4 » 5 » 6 , 7 and 8 shall be
               authorized up to 5 /^              the share established for the
               category to which the transfer is made *
             Transfers of quantities into the different categories in Group
'            II or III may be made from any category in Croup I f II or III
             subject to a maximum of 5$ the share established for the
             category to which the transfer is made *
                                                   f
             The table of equivalence applicable to the abovementioned transfers
             is given in Annex I *
                                                                                • • •/• • •
 ---pagebreak---            A) Th« cumulative application of the provisions of points a )f b)
                  and c) Bay not , in the course of any given year, cause a liait
                 established for the cat ®#rery and for the year in question to
                 be exceeded by sore than 15& however » in the cave of categories
                 of products originating in the countries listed in Annex IX ,
                 such an excess Bay not be greater than 11% for Group X eate<ories
                 and 12*5^ for categories in Cr<wps II and III.
      Zm The country listed in Annex XI , Bay utilise the aharea in the fit
            Ways as provided, in paragraph 1 provided that *
           • in the case of rub-paragraph e «) and b ) there shall be no
                authorisation for                    category 1 f and the authorisation li
                respect ©f                 category 2 thall b« limited to 2*5%
           • in th® case ©? sub-ptirAgr&pk 9) %mj®fer« %«                            *     eategery 2
                aha 11 be liaited to 2.JJC
S, The country listed 1ft Anne * XII may uti li*e the shares to the
       same way as provided in paragraph 1 provided * hat :
       • 1n the case of subparagraphs ( a ) and ( b ) there shall be no
          authorisation for Categories                2 and 3 and authorisation
          in respect of all other categories shall be limited to 1X
          except that further authorisation to 5X way b# agreed following
          consultations in accordance with Article 14 ;                                                     •
     - In the case of sub-paragraph ( c ) there shall be no transfers                                     j
        to Categories 2 and 3 , and transfers between Categories U , 5 ,
        6 , 7 and 8 shall be limited to 3.5% .
    - in the case of sub-paragraph ( d ) such excess may not be greater
        than 10% for Group 1 categories and 11% for categories in
        Groups II and III .
    - the same provisions shall apply to the country tisted in Annex XII A
              except that , in the case of sub-paragraphs ( a ) and ( b ) referred
        to in the first indent , there shall be no authorisation for
        Categories 1 , 2 and 3 .
      In the event of recour* by a mppher country to                 * Member State * *hare ha« been
if* provision* of paragrjph I , the C«>mmtv»ion *halt '^waiea by the application of paragraph I above, or
notify the author.t.e* of the Member Stare concernej ™ A"'Jc *• or " ht f*" (urt h<r iwhlme* for import*
which »hall authorize the import* in quettion in ,n,°             Member St.ite ha\e been crcatcJ unJor
accorJanc* ~.«h ihe douhle-ch^lm,: *)*tem Jef.neJ Amc,« '• ,UlK "wrrj^ or father 'Ton
in Annex            VI.                               po»uhiliiie* thjll not he taken into account for the
                                                      purpose* of applying paragraph I in the current year
                                                      or lubtcduen* yean.
 ---pagebreak---                           Article 9
  1 . Member States which find that they require
  additional imports for their internal consumption OP
 which consider that their share may not be fully
 utilized shall notify the Commission accordingly.
 2.    The Community quantitative limits laid down
 in Article 3 may be increased in accordance with the
 procedure laid down in Article 15 where it appears
 that additional imports are required.
 3.    At the request of a Member State which finds
 that it requires additional imports, either on the
 occasion of fairs or where it has issued import
 authorizations or equivalent •documents for up to
 80 % of its national share, the Commission may,
 after oral or written consultations with the Member
States within the Committee set up under Article " T5 ,
 open up additional possibilities for imports into that
Member State.
In an emergency, the Commission shall open
consultations within the Committee within five
working days following receipt of the request from
the Member State concerned and shall take a decision
within 15 working days calculated from the same
date.
 ---pagebreak---                                 Art ici a 10
The authorities of the Member States shall issue tha import
authorizations or equivalent documents provided for ift Article 3 ( 3 )
up to the amount of their shares , taking into account tha measures
taken pursuant to Articles 5 f 7 ? 8 and 9 »
The import authorisations or equivalent Documents eh all be issu€d
in accordance with Aixne\              VI «
The quantities of products covered by the import authorisations or
equivalent documents provided for in Article 3 shall be chnr-;ed
against the share of the Member State which issued thOB3 authorizations
or docur -nts .
The coir, jet en t authorities of the Member States shall cancel import
                                                                        «
authorizations or equivalent documents already issued in cases fchere
the corresponding export licences have been withdrawn or cancelled by
the competent authorities in the supplier countries® however , if the
competent authorities of a Ksmber State have not "been informed by the
competent authorities cf a supplier country of the withdrawal or
cancellation of an export licence until after the related products have
been imported into such Member State , the quantities in question shall
be set off      against the Kember State 's quota share for the year
during which shipment of oroducts took place .
 ---pagebreak---                            Article tt
   1.    The importation into the Community of textile
   products listed in Annex I, originating in the supplier
   countries listed in Annex II and not subject to the
   Community quantitative limits referred to in Article
   3, shall be subject to a system of administrative
  surveillance .                              ,
   2. Should imports into the Community of products
   falling within , any given category, referred to in
.. paragraph 1 and originating in one of the supplier
   countries, exceed, in relation to the preceding
  calendar year's total imports into the Community of
   products in the same category, the percentages
  indicated in the table appearing in Annex X- 1V such
  imports may be made subject to quantitative limits
  under the conditions laid down in this Article. These
  arrangements may be limited to imports into specific
  regions of the Community.
  3.     Should the imports referred to in paragraph 2
 into a given region of the Community exceed, in
  relation to the total quantities calculated for the
 whole Community according to the percentage
 specified in paragraph 2, the percentage set for that
 region in the table below, such imports may be made
 subject to quantitative limits in the region in
 question:
                 Germany                28-5 %
                 Benelux                10-5 %
                 France                 18 5 %
                Italy                   15%
                Denmark                  3%
                Ireland                  1 %
                United Kingdom          23-5%
                Greece                   2%
4. Paragraphs 2 and 3 shall not apply where the
percentages specified therein have been reached as a
result of a fall in total imports into the Community,
and not as a result of an increase in exports of
products       originating   in    the  supplier    country
concerned .
^ Where the Commission finds, in accordance with the
      procedure lajd down in Article 15, that the conditions
      set out in paragraphs 2 and 3 are fulfilled and
      considers that a given category of products should be
      nude subject to a quantitative limit, with the
      concurring opinion of the Committee under the
      procedure in Article 15 :
      (a) it shall open consultations with the supplier
           country concerned        in accordance    with the
           procedure specified in Article       with a view to
           reaching an agreement or joint conclusions on a
          suitable level of limitation for the category of
          products in question;
 ---pagebreak---    J                                                                                                    J8 .
       0) Pending * autually aatlafaotery solution^ th ?v Community may request the supplier count
           concerned to limit exports of the products in the Category concerned to the Community
      to the region or region® of the Coraounlty B&rket speoifltd by the Community
           for a provisional poriod of 3 oontha frota thi diti on wMch th* request for
           cone ill tatlons la a&d® . Such provisional Halt shall be established at
           of the level of laports reached during the calendar year preceding that In
           « hich imports exceeded the level resulting fro« the application of tha
           formula set out In paragraph 2 , and gava rlaa to the - request for consultation
           or 25^ of the level resulting froa tha application of the foraula aat out in
           paragraph 2, whichever la the higher*
       c) it may request the supplier countries listed
           in Annexes . IX ana XII
         AjSth effect from the date of notification of the
          *&q<iest for consultations and pending a mutually
            satisfactory solution , to suspend or limit at the
           loci indicated by the Commission its exports of
           the category of products in question to the ,
           Community or to one or more regions thereof;
       d) it may , pending the outcome of the requested '
           consultations, apply to the imports of the
           category of products in question quantitative
           limits identical to those requested of the supplier
           country pursuant to points ( h). and ( C-) • These measures
           shall he without prejudice to the definitive
           arrangements to be made by the Community,
           taking     into  account     the - results of   the
           consultations .
        Measures taken pursuant to this paragraph shall
  he. the subject of a Commission communication                             v;
  published 'without delay in the Official journal the
 fatropcan Communities.
                                                                             Il
         6.     The consultations with the supplier country
         concerned which are provided for in paragraph 5 (a)
         may lead to the conclusion of an arrangement
         between that country and the Community or the
         adoption of joint conclusions on the introduction and
         loci of quantitative limits.
         Such arrangements or joint conclusions shall stipulate
         that the quantitative limits agreed be administered in
         accordance with a double-checking system.                                              .
         7 Should the parties be unable in the course of consultations to reach .
I          " satisfactory solution within on. aonth following the opening of consult, ions,
                      t the Utest within two months following notification of the
             for "consultations, the Community shall have the right to
             auantitive limit at an annual level not lower than the leve^
              the application of the formula set out in paragraph 2, or
              of imports reached during the calendar year preceding that ,n :h ^
              exceeded the level resulting fro. the application of the formula se ou
               ,n paragraph 2 and gave rise to the re„uest for consultations, whoever
               is the higher
                                                          lict^d in Annex XXI the time limits referred to
               In rtspect of the country                  listed in Annex
               abovi shall be reduced by half .
 ---pagebreak---    8. The arrangements provided for in paragraph 6
_ shall ho COIK luJcJ, and the measures provided for
   cither in paragraphs 5 and 7, or in the arrangements
   or joint conclusions referred to in paragraph 6 shall
   be decided in accordance with the procedure laid
  down in Article 15 .
          The annual level of the quantitative limits laid
   down in accordance with paragraphs 5 to 8 may not
   be less than the level of imports, into the Community
   or into the region or regions concerned in /<?SO, of
   products of the same category and originating in the
   same supplier country.
    fnm rh n            devclopmcnt of total imports
    into the Community of a product which is subject
   to a quantitative limit fixed in accordance with
   leteI 8ofP,hS t0 8 rt'nJcrs, it nec«sary, the annua!
   level of that quantitative limit shall be increased,
   after consultation w.th the supply country, in
   ESTÏT "T. ™                           Iaid *>w„ in
   Article 14. to ensure compliance with the con­
   ditions set out in paragraphs 2 and 3.'
   •11. The quantitative limits fixed in accordance
 . with paragraphs 6, and 8 shall provide for an
   annual growth rate determined by mutual agree­
      ment with the supplier country concerned in
      the context of the consultation procedure laid
      down in Article    14 .
12. The quantitative limits established pursuant to
paragraphs 5 to K shall nor apply to products which
have already been dispatched to the Community
provided that they were shipped from the supplier
country in which they originate for export to the
Community before the d.uc of notification of the
request for consultations.
13.     The quantitative limits established pursuant to
paragraphs 5 to 8 shall be administered in accordance
with Articles 3 and 4 and fr to 10 , save as .
otherwise provided in a-ccordance with
the procedure Laid down in Article 15 .
 ---pagebreak---                                                                                    20 .
                                   Arti c Le 12
 1.   For the textile products subject to the quantitative limits referred to
      in Article 3 Member States shall notify the Commission , within the
      first 10 days of each month , of the total quantities , in the appropriate
      units and by country of origin and category of products , for which
      import authorizations have been issued during the preceding month .
 2.   For the textile product *, cited in Annex    m and originating in the
       supplier countries listed in Annex VIII , Member States shall notify
      the Commission within the first 10 days of each month of the total
      quantities in the appropriate units and by country of origin and category
       of products , for which import documents have been issued in accordance
      with Article 4 , paragraph 2 daring the preceding month .
       In respect of the textile products in Annex I , Member States shall notify
       the Commission monthly , within 30 clays following the end of each month , of
       the total quantities imported during that month , by country of origin and
        NIMEXE code and in the units , including where appropriate supplementary units f
       of the NIMEXE code .    The imports shall be brokers '•.own accordance with the
         statistical procedures in force .
 3. j Foi products cited in Annex VII paragraph 1 , Member States shall notify
      the Commission monthly within 30 days following the end of each month , of
      the total quantities imported daring that month , in the appropriate units
      and by country of origin and category of products .
4*    In order to enable market trends in the products covered by this
      Regulation to be monitored , Member States shall communicate to the
      Commission , before 31 March each year , statistical data for the preceding
     year on exports®     The statistical data relating to the production and
      consumption of each product shall be forwarded under arrangements to be
     determined subsequently pursuant to the procedure laid down in Article 15 *
5 »r Where the nature of the products or particular circumstances so require ,
     the Corr.nission may , at the request of a Member State or on its own
     initiative , alter the time limits for communicating the abovementioned
     information under the procedure laid down in Article 15 *
6.   Member States shall notify the Commission under conditions set in
     accordance with the procedure laid down in Article 15 » of all other
     particulars deemed under that procedure to be necessary in order to
     ensure compliance with the obligations agreed between the Community and
     the supplier countries .
 ---pagebreak---                             ARTICLE 13
Where information available to the Commission as a result of inves­
tigations carried out in accordance with procedures laid down in
Annex V , constitutes evidence that products originating in a
supplier country listed in Annex II and subject to quantitative limits
referred to in Article 3 or established under the procedure laid down
in Article 11 , have been transhipped , re-routed or otherwise imported
into the Community in circumvention of such quantative limits , the
Commission may open consultations with the supplier country concerned
in accordance with the procedure laid down in Article 14 with a view
to reaching agreement on an equivalent adjustment of the corresponding
quantative limits .
Pending the result of the consultations referred to in paragraph 1 ,
the Commission may request the supplier country concerned to make the
necessary arrangements as a precautionary measure to ensure that
adjustments of quantitative limits agreed following such consultations
way be carried out in the year in which the request to open consultations
was made , or for the following year if the quantitative limit for the current
 year is exhausted , where clear evidence of circumvention is provided .
The present paragraph is not applicable to the country listed in Annex X{I .
 Should the Community and the supplier country fail to reach a satis­
 factory solution within the period specified in Article 14 the
 Commission may ^ where clear evidence of circumvention has been provided
 deduct from the relevant quantitative limits amounts equivalent to
 the products originating in the supplier country concerned in accordance
 with the procedure laid down in Article 15 .
 ---pagebreak---                                                                     22 .
                         ARTICLE U
The Commission ©hall conduct the effiairaltaiions referred "to in
the Regulation other than those referred to in parwrxph 2
of this Article / accordance with the following rules :
- the Commission shall notify the supplier country concerned of
  the request for consul tat ions ?
- the request for consultations shall ba followed within a
  reasonable period (and in any case not later than fifteen
  days following the notification ) by a statement Getting out
  the reasons and circumstances which , in the Commission 's
  opinion , justify the submission of such a request ;
- the Commission shall initiate consultations within one month
  at the latest of notification of the request , with a view to
  reaching agreement or a mutually acceptable conclusion within
   one further month at the latest#
      2 . The consultations referred to in Article 5 of this Regulation ^
          and /held with the country listed in Annex XII shall be governed
          by the following rules :
          - the Commission shall notify the supplier country concerned of
            the request for consultations , together with a statement setting
            out the reasons and ci rcumstanees which , in the Commission 's
            opinion , justify the submission of such a request ;
          - the Commission shall initiate consultations within 15 days at
            the latest of notification of the request , with a view to
            reaching agreement or a mutually acceptable conclusion within
            15 days at the latest .
 ---pagebreak---                              ARTICLE 15
                1.   A Textile Commiitec , hereinafter called 'the
                Committee', composed of representatives of the
                Member States and chaired by a Commission
                representative, is hereby set up.
                                                                 I
                2.   The Committee shall draw up its rules of
                procedure.
       3 . Where reference is made to the procedure
     defined in this Article, the chairman , on his own
      initiative or at the request of a Member State, shall
      refer the matter to the Committee.
    4•      The Commission representative shall submit
     draft measures to the Committee. The Committee
     shall deliver an opinion on the draft measures within
     a period which may be fixed by the chairman
     depending on the degree of urgency of the matters
     to be examined . T he Committee shall decide by a
     qualified majority
                       * as specified in Article 148 ( 2) of the
     Treaty. The chairman shall not vote.
     3. (a ) The Commission shall adopt the measures
              proposed where they are in conformity with
               the Committee's opinion .
         (b) Where the measures proposed arc not in
              conformity with the Committee's opinion, or
              where no opinion has been given , the
              Commission shall        submit to the Council
              without delay a proposal for the measures to
              be taken . The Council shall act by a qualified
              majority .
         (c) Should the Council fail to take a decision
              within one month of the dare on which the
              proposal was laid before it, the Commission
              shall adopt the proposed measures.
5 • The chairman may, on his own initiative or at the
    request of one of the Member States' representatives,
    consult the Committee about any other matter relating
  ' to the operation of this Regulation.
 ---pagebreak---         Article 15 ( a )
        The Member States shall inform the Commission forthwith of all measures
        taken pursuant to this Regulation and of all laws , regulations or
       administrative provisions concerning arrangements for importation of the
       products covered by this Regulation .
 Amendoents to the Annexes to this Regulation which nay be necessary to
 take into account the conclusion , amendment or expiry of agreements
 with third countries or amendments made to Community rules on statistics ,
 customs arrangements or common import arrangements shall "^e adopted in
 accordance with the procedure laid down in Article 15 of this Regulation . -
                                Article 17
This Regulation shall enter into force on the day following its publication
in the Official JournaL of the European Communities .
It shall apply until 31 December 1986 .
 ---pagebreak---                      Check list of Annexes
   I - List of products
  II - List of third countries with bilateral agreement
 III - Community Quotas ( 1983 - 86 )
  IV - Member States breakdown 1983
   V - Detailed rules on :  Origin , Administrative Cooperation
  VI - Detailed rules on :  Classification , Double Checking ,
                            Common Provisions
 VII - Rules and Administration of trade in folklore products
VIII - Folklore countries ( India , Pakistan )
  IX - State Trading Countries ( Bulgaria , Czechoslovakia , Hungary ,
                                  Poland , Romania )
   X - Price Clause ( State Trading countries )
  XI - Brazil ( special flexibility provisions )
 XII - Hong Kong ( special provisions for dominant suppliers )
XIII - Rules on administration of outward processing ( TPP )
'XIV - Table of basket exit levels