CELEX: 51976PC0594
Language: en
Date: 1976-11-15
Title: Draft REGULATION (EEC) OF THE COUNCIL on the opening, allocating and administration of a Community tariff quota for raw silk (not thrown) falling within heading No 50.02 of the Common Customs Tariff for 7977.#Draft REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for yarn entirely of silk, other than yarn of noil or other waste silk, not put up for retail sale, falling within heading No ex 50.04 of the Common Customs Tariff for 1977.#Draft REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for yarn spun entirely from silk waste other than noil, not put up for retail sale, falling within heading No ex 50.05 of the Common Customs Tariff for 1977. (submitted to the Council by the Commission)

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DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 594
Vol. 1976/0184
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(76)594 final.
                                                     Brussels .     November 1976
                                   Draft
                  REGULATION, ( EEC ) OF THE COUNCIL
   on the opening , allocating and administration of a Community
   tariff quota for raw silk ( not thrown ) falling within heading
   No 50.02 of the Common Customs Tariff for 7977 .
                                   Draft
                  REGULATION ( EEC ) OF THE COUNCIL
   on the opening , allocation and administration of a Community
   tariff quota for yarn entirely of silk , other than yarn of noil
   or other waste silk , not put up for retail sale , falling within
   heading No ex 50.04 of the Common Customs Tariff for 1977.
                                / Draft f
                               /«V ,
                                                        , • 'X
                                                             .. • V
                   REGULATION '(EEC ) OF THE COUNCIL
                             p. -                    •        • -J
   on the opening , allocation and administration of a Community
                                 :     \           \W          •
   tariff quota for yarn spun entirely from silk , waste other than
   noil , not put up for retail . sale , falling within heading No ex
                                  \                    - u,/
   50.05 of the Common Customs Tariff for 1977.
                                         i j , i V ^
             ( submitted to the Council by the Commission )
   C0M(76 ) 594 final .
 ---pagebreak---                        EXPLANATORY LEimOIO
 Following the review of the problem of silk within the Community , provided
 for in Protocol No VIII annexed to the Rone Agreement of 2 l^aroh 19^0
 relating to list G, the Counoil passed a Resolution at its meeting of
 29-31 Kay 1967 whioh provides , in particular, that , with effeot from 1
 Januaiy 1970 1
 n
      On expiry of the transitional period referred to in Artiole 8 of the
     Treaty, the Counoil , acting, on the' "bas^s of Artiole 28 of the Treaty,
      Bhall deoide that until 31 December 197^ ^e suspension of the Common
      Customs Tariff duty whioh is provided for in Protocol No VIII shall not
     be applied . In order to enable - user industries to covor their require­
     ments from the world market , the Council shall at the same time open a
     nil–duty Community tariff quota for the period up to 31 Deoeiaber 197^ •
     The amount of that tariff quota, to bo fixed by the Counoil oach yoar ,
     shall oorroopond to the difference between the total oonsumpt ion of raw
     silk and the amount produoed in the Comminity •
     Together with the deoisiort concerning tiaa non-application of the tariff
     suspension referred to in paragraph 2 above , the Counoil shall decide
     that during the period in whioh the tariff suspension referred to in
     paragraph 2 is not applied, silk yam (tariff heading No 5O.C4 ) and 1
     yarn spun from silk waste other than noil (tariff heading No 50-^5 ) '
     shall be subjoot not to the reduood duties indicated in Protoool No IX,
   . but to, the Common Customs Tariff duties at the normal rates provibd for
     each case . At the same time the Council shall , for the same period,
     open reduoed or nil duty Community tariff quotas if there are ohangea
     in supply sources or insufficient supplies within the Community whioh
     could have a prejudicial effeot on Member State processing industries#
•*••••••••    "
i-nce that time Protocol Nos VIII and IX annexed to the Rome Agreement ,
relating to list 0, whioh' were the basis for the aforesaid Resolution, have
 ---pagebreak---                                         - 2 -
        been revoked by Article 49 of the Act of Accession .
        However , at the present time the problems in the silk sector Of textiles
        should be resolved on the same lines as in previous years . .
    3 . As regards 1977, the problem of raw silk and of the two types of yarn
        was re-examined by the Commi scion departments and the national experts
        in a meeting held on 16 September 1976 within the Council Working Party
        on Economic Questions . The results of this examination are as follows :
        - Raw silk ( not thrown )
          For several years , Community production has been insufficient ,
          particularly , as regards cocoons produced in Italy , fit the present
          time , it is a long way from reaching the 1000 metric tons estimated in
          the above -mentioned Council Resolution . It should be pointed out ,
          however , that this fall in Italian production is due to several
          factors (production organised on the basis of small enterprises , progressi'v
           closures of these enterprises , types of cocoons not selected     on
           the basis of yield, competition firstly from Japan and then from
           China ) which resulted in price falls and the shutting-down of most
           of these activities .
          However , the Italian delegation has stated that for several years
          considerable efforts have been made in Italy , towards the modernisation
          and rationalisation of this activity , by means of investments totalling
          6 000 million Italian lire with the aid of the Community ( EAGGF ) or
          the State , regions , the "Cassa del Mezzogiorno " and individual breeders .
          These efforts should make possible an increase in production in the near
          future .
However , the adoption of final measures in accordance with the 1967 Council
          Resolution could lead to the abandon and failure of all efforts made
          hitherto. It is therefore advisable to extend the quota system now
          in force to enable a close observation to be kept on Italian pro­
          duction .
          According to present estimates , in 1977 Community production will
          not exceed    some 40 metric tons . As for consumtion , there are no
          reliable staticstics which could be used to determine the amount of
          the 1977 quota . It has therefore been necessary to make use of the
          estimates concerning import requirements submitted by the Member
          States , which amount to a total of 3 800 metric tons for 1977, which
          figure has been adopted for the tariff quota in the draft regulation
        . attached to this document .
 ---pagebreak---                                  - 3 -
                      .. .M
- Silk yarn and yarn spun from silk waste other than noil , entirely
   of silk
   The yarn in question is of certain very specific qualities , which are
   classified under tariff heading N°s 50.04 and 50.05 , but for which
   no statistical subdivisions have been created .  In the absence of
   statistics on thilfc yarn it has been necessary for the purpose of
   determining the amounts of the quotas to make use , as in the case
   of raw silk , of the estimates concerning imports requirements
   submitted by the Member States . Total requirements for 1977 amount to 60
   metric tons of silk yarn and 195 metric tons of yarn spun from silk
   waste other than hoil , which figures have been adopted for the tariff
   quotas in the draft regulations attached to this document .
   These results werfe approved by the government experts .
As regards quota duties , the Commission is in possession Of no informa­
tion which would load it to alter the 1976 rates of duty , i.e. 2.5 %
 for silk yarn and 1 % for yarn spun from silk waste other than noil ;
exemption ^ ro(n    cjuty on raw       provided by the Resolution itself ,
 is again proposed for 1977 .
 ---pagebreak---                   DRAFT         REGULATION (EEC) No                 OF THE COUNCIL
               on the opening, allocation and administration of a Community tariff quota for raw silk
               (not thrown), falling within heading No 50.02 of the Common Customs Tariff (lffr )
Tl l£ COUNCIL OF THE EUROPEAN COMMUNITIES,                         Whereas Italian production in 1977
                                                                   may be estimated at 40 metric tons
                                                                   a year ; whereas , taking amount of this
                                                                   production and of the forecasts for
Having regard to ' the Treaty establishing the
European Economic Community, and in particular                     } 977 the imports needed to ^ satisfy
 Article 28 thereof;                                               consumption within the Community can b
                                                                   be estimated at 3 800 metric tons ;
                                                                   W:hereas the fixing of the quota amount
 Having regard to the draft Regulation submitted by                at this Level does not preclude an
 the Commission :                                                  adjustment within the quota period ;
 Whereas, in accordance with the resolution passed                     \Vh;rcas equal and continuous access to the quota
 at its meeting from 29 to 31 May 1967, the Council,                   should be ensured for all Community importers and
 by its Regulation (EEC) No 321 /70 ( ' ), reintroduced,               the rate laid down for the tariff quota should be
 until 31 December 1976, the 10% autonomous duty                       applied consistently to all imports of the product
 of the Common Customs Tariff for raw silk (not
 thrown), falling within heading No 50.02; whereas              in question until the quota is used up ; whereas
 the conventional duty for that product is 5% ;                 a system of utilisation of the Community tariff
                                                                quota, based on an allocation between the Member
                                                                States concerned, would, in the light of the principles
                                                                outlined above, appear consistent with the Com­
Whereas the aforementioned resolution further                   munity nature of the quota ;
provides for the opening, in respect of that period
and for that product, of annual Community tariff
quotas exempt from customs duties;                              Whereas, in view      of these factors, the initial
                                                                percentage shares in the quota volume for 197'f can
whereas the resolution also provided                            be expressed approximately as follows :
that the situation in the sector be
reexamined in 1976 ; whereas raw silk'                                  Bénélux                           0.17
manufactured from cocoons produced
                                                                        Dcnmark                           0.17
in Italy does not as yet reach the
1000 metric tons provided for in                                        Germany                           6.33
the above mentioned Council Reso­                                       France                          27
 lution ; whereas , however , major                                     Ireland                           0.17
 investments have been made in Italy                                                                      60.16
for thi purpose , with assistance                                       Italy
from t'r State , regions and indi­                                      United Kingdom                    6
 vidual , '<?rsons ; whereas the Community
 hos            contribution to this effort
 in the . orm of supplementary aid ;                           • Whereas, to tale account of future trends in ininorts
 whereas it is desirable at the                                  of the product in question ,
 present time to avoid final measures                            in all the Member States the quota
 that covdd lead to the halting of                               should be divided into two tranches ,.
 action aken ; whereas , under such                             , the first being distributed among
 conditi 'ns , it is advisable to extend                        the Member States and the second
 the system now in force to enable a                            to form a reserve intended to
 close observation to be kept on                                 cover any subsequent requirements
 Italian production ;                                           of Member States who have used up
 Whereas the opening of an annual tariff                         their initial shares ; whereas , in
 quota f ( r nil-duty raw silk imports                          order to ensure a certain degree
 amounts corresponding to the needs of                          of security for importers                of each
 the pr ; essing industries would appear                        Member States the first tranche
 to be      ne solution to the demands of                        should 'in this case be fixed at 80%
 t          ommunity industries and would                        of the total quota ;
 n.         n and increase the level of
  r         k production ;
           N <> L 43, 24. 2. 1970, p. 2.
 ---pagebreak---                                                                     2
Whereas »! m - 1111 ; ; ;i \h.ircs in ;v be u    \:p    ..
rates ; uli . u.is . i < pntvi.1i' I - t O h --                       2. The second tranche of 800 metric tons shall
to avoid disruption of supplies, any M lti.xi                         constitute the reserve.
which has almost used up its initial share shouk,
draw an additional share from the reserve ; whereas
this should he done by each Member State when                                                   Article 3
each of its ulditmnal shares has been almost used
up, and so on as many times as the reserve allows ;
whereas the initial and additional shares should be                    1 . If 90% or more of a Member State's initial share
valid until | he end of the quota period ; whereas                     as fixed in Article 2 ( 1 ), or of that share minus any
 this form of administration requires close collabor­                  portion returned to the reserve where Article 5 has
 ation between Member States and the Commission,                       been applied , has been used up, that Member State
 which latter must, in particular, be able to keep                     shall forthwith , by notifying the Commission , draw
                                                tariff                 a second share, to the extent that the reserve so
   a record of the extent to which theiquota has been                  permits, equal to 10% of its initial share, rounded
   used up and to inform the Member States                              up as necessary to the next whole number.
   accordingly ;
Wheras if , at a given date in the quota
period , a considerable quantity of the                                 2. If, after its initial share has been used up, 90%
initial share is left over in a Member                                  or more of the second share drawn by a Member
                                                                        State has been used up, that Member State shall
   State, it is essential that that Member State should                 forthwith, in the manner and to the extent provided
   return a significant proportion to the reserve, so as                in paragraph 1, draw a third share equal to 5% of
   to avoid a part of the quota remaining unused in                     its initial share.
    one Member State when it could be used in others;
   Whereas, since the Kingdom of Belgium, the                           3 . If, after its second share has been used up, 90%
                                                                        or more of the third share drawn by a Member
    Kingdom of the Netherlands and the Grand Duchy                      State has been used up, that Member State shall
    of Luxembourg, arc vnited within and jointly-                       forthwith , in accordance with the same conditions,
    represented by the Iki.clux Economic Union, any                     draw a fourth share equal to the third.
    measure concerning the administration of the shares
    allocated to that Economic Union may be carried
    out by any one of its members,                                      This procedure shall apply until the reserve is used
                                                                        up .
     HAS ADOPTED THIS REGULATION :
                                                                        4. By way of derogation from paragraphs 1 , 2 and
                                                                        3, Member States may draw lesser shares than those
                                    Article 1                           specified therein if there are grounds for believing
                                                                        that those specified may not be used in fuil. They
                                                                        shall inferm the Commission of their reasons for
     1 . From 1 January to 31 December 197 7 the                         applying this paragraph.
     autonomous duty of the Common Customs Tariff
     for raw silk (not thrown), falling within heading
     No 50.02, shall be totally suspended within a Com­                                          Article 4
     munity tariff quota of 3800metric tons.
     2. Withi the tariff quota, the new Member States                    Additional shares drawn pursuant to Article 3 shall
     shall ap; y duties calculated in accordance with the                be valid until 31 December 197 7
     relevant provisions of the Act of Accession.
                                                                                                 Article 5
                                    Article 2
      1 . A first tranche of 3000 metric tons of this Com­               Member States shall return to the reserve, not later
      munity tariff quota shall be allocated among the                   than 1 October 197 \ the unused portions of their
      Member States. Member States' shares, which,                       initial shares which , on 15 September 19" 7, are in
      subject t< Article 5, shall be valid until 31 December             excess of 20% of the initial amounts. They rr.av
      19 / 7, sh .. , be as follows :                                    return a greater portion if there are grounds for
                                                                         believing that such portion may not be used up.
                                                     in metric tons
               Bénélux                                      5            Member States shall notify the Commission , nor later
                                                                         than 1 October 197 7 of the total quantities of the
               Dcnmark                                       5           raw silk imported up to and including 15 September
               Germany                                                    1977 and charged against the Community quota and
                                                                         of any portion of their initial shares returned to
                France                                   810             the reserve.
                Ireland                                      5
                I, ■ •                                  1805
                I 7 \ tic U Kir '.loin                    180
 ---pagebreak---                                                        3
                         Article 6                          2. Member States shall ensure that importers *
                                                                                   established in their territory have
The Commission shall keep an account of the shares          tree access to trie shares allocated to them.
opened hv the Member Stares pursuant to Articles
2 and 3 and, as soon as it has been notified, shall         3.  The extent to which a Member State has used
inform each State of the extent to which the reserve        up its share .shall be determined on the basis of the
has been used up.                                           imports of the product in question entered with the
                                                            customs authorities for home use.
It shall inform the Member Sr->trs      not later than
5 October 197. '( of the reserve position after                                      Article 8
amounts have been returned tnercto pursuauc to
Article 5.                                                  At the Commission's request. Member States shall
It shali ensure that the drawing which exhausts the         inform it of the imports actually charged against
                                                            their shares.
reserve docs not exceed the balance available and
to this end, sli.ill notify the amount of that balance
to the Membei State making the last drawing.                                         Article 9
                                                            Member States and the Commission shall cooperate
                         Article 7                          closely to ensure that this Regulation is complied
                                                            with.
1 . Member States shall take all appropriate measures
to ensure that additional shares drawn pursuant to                                  Article 10
Article 3 .ire opened in such a way that imports
may be . barged without interruption against their          This Regulation       shall   enter  into   force    on  1
aggregate shares of the Community quota.                    January 197 f •
             This Regulation shall be binding in its entirety and directly applicable in all Member
             States.
             Done at      Brussels ,
                                                                                For the Council
                                                                                  The President
 ---pagebreak---                                                        Draft
                                                                 \
                                 REGULATION (EEC) No ,           1     „ OF THE COUNCIL
                 on the opening, allocation and administration of a Community tariff quota for yarn,
                 entirely of silk, other than yarn of noil or other waste silk, not put up for retail sale]
                      falling within heading No ex 50.04 of the Common Customs Tariff (197 7)
   THE COUNCIL OF THE EUROPEAN COMMUNITIES,                        Customs Tariff duty would result in those products
                                                                   being subjected to a considerable customs charge
                                                                   while products manufactured from silk yarn face
                                                                   powerful competition from similar products
  Having regard to the Treaty establishing the                     manufactured from other material ; whereas an
  European Economic Community, and in particular                   insufficient supply, added to competition at
   Article 28 thereof;                                             finished product level, might have adverse results
                                                                   for the Community's processing industries;
  Having regard to the draft Regulation submitted
  by the Commission:
                                                                  Whereas the Common Customs Tariff duty
                                                                   applicable to imports of the silk yarn in question is
  Whereas, in accordance with the resolution passed               7% ; whereas, when fixing the quota duty, it is
  at its meeting from 29 to 31 May 1967, the Council ,            appropriate to take into account, on the one hand ,
  by its Regulation (EEC) No 322/70 {' ), reintroduced,          the situation of the Community silk yarn producing
 until 31 December 1976, the 12% autonomous duty                 industry and, on the other, that of the silk yarn
 of the Common Customs Tariff for silk yarn, other               processing industries with regard to their supplies
 than yarn of noil or other waste silk, not put up               on favourable terms ; whereas a quota duty of 2-5%
 for retail sale, falling within heading No ex 50.04;            could best meet the abovementioned requirements:
 whereas the conventional duty for that product is
 7% ;
                                                                 Whereas the trends in imports dufing 197 5 suggest
 Whereas      the   aforementioned     resolution   further      that tjic import requirements for the yarns in
 provides for the opening in respect of that period              question might be in the region of 60 metric tons
 and for such silk yarn of an annual Community                   for 197 ; whereas the opening of a Community
 tariff quota with reduced or nil dutyand for a                 tariff quota of that volume is unlikely to harm
   reexamination of the sectoral situation Community production;
   in 1976 ; whereas however , major invest­
  ments have been made in Italy for raw
   silk , with        the assistance of the ! State , Whereas equal and continuous access to the quota
  the      regions and individual persons ;                     should be ensured for all importers and the rate
  whereas the Community has made contri­                        laid down for the tariff quota should be applied
  butions to these efforts in the form                          consistently to all imports of the product in question
  of supplementary aid; whereas for yarn until the quota is used up; whereas a system of
  entirely of silk it is appropriate to'                        utilization of the Community tariff quota, based on
  follow a policy analagous to that ; which an allocation between the Member Stares concerned,
  is proposed for raw silk ; whereas ,                          would, in the light of the principles outlined above,
  under such conditions , it is advisable appear consistent with the Community nature of the
  to extend the system now in force ! to                        quota ; whereas, to represent as closely as possible
                                                                the actual market trends in the product in question,
  enable a close observation "to be ;                           the alf.ocation should be proportionate to the
  kept on Italian production ;                    ,   j         requirements of the Member States calculated with
  Whereas silk yarn is produced in the Community ;              reference to statistical data on imports during a
  whereas, although that production could cover all             representative reference period and to the economic
" the Community requirements by reason of its overall           prospects for the quota period in question;
  volume, this does not apply with regard to 'yarn                                             '
  entirely spun from silk ; whereas there is, as a result,
  an insufficient supply in the Community;
  Whereas consequently Community supply for those
  qualities of yarn depends to a considerable extent
  on imports; whereas full application of the Common
  (*) OJ Ne L 43 , 24. 2. 1970, p, 5 .
 ---pagebreak---                                                                          reserve allows ; whereas the initial and additional
Whereas the imports of the products falling within                       * h,tr<.-» < houkl be valid until the end of the quorr
tariff heading No 50.04 of each of the Member                            periuJ ; whereas this form of administration requires
States concerned during the last three years for which                   close collaboration between Member States and tin
complete statistics arc available represent the                          Commission, which latter must, in particular, be able
following percentages of total Community import*                         to keep a record of the extent to which thcjq^io?;
of these products:                                                       has been used up and to inform the Member States
                                                                         accordingly;
                                1973    1974 [ 1075,
Bénélux                            0      5    ( 0        .    Whereas if, at a given d.itc in the quota period , a
                                               I
                                          0   :
                                                               considerable quantity of the initial share 1 s
Denmark                            0              0     .
                                                                Lett over in a member state , it is essenti
Gcrmany                           15-8   28 j( 43.15         that that Member State should return a
Vruiuc                            171    17   !• 25.16       proportion to the reserve , so as to avoid
                                               I
                                                             a n.trf of thp nnnta rpmaininn "" used in onf
Ireland                            0      7       0.05
                                                             Member Stqte when it could be used in other
Italy                            52-6    39 |l 21.58         Whereas, since the Kingdom of Belgium, the Kingdom
                                  14-5    4; ! iOM            of the Netherlands and the Grand Duchy of
United Kingdom
                                              i               Luxembourg are united within and jointly represented
                                                             by the Benelux Economic Union, any measure
Whereas, in view of these factors and of the forecasts       concerning the administration of the shares allocated
which it is possible to make, the initial percentage         to that Economic Union may be carried out by
shares in the quota volume can be expressed                   any one of its members,
 approximately as follow*:
                                                      I
         Bénélux                              21
                                                              HAS ADOPTED THIS REGULATION :
         Denmark                             21
         Germany                            36%.                                          Article 1
         France                             25-5
         Ireland                              21              1 . From 1 January to 31 December 197 J the
         Italy                              27-7              autonomous duty of the Common Customs Tariff
                                                              for yarn entirely of silk, other than yarn of noil or
         United Kingdom                      4 3:
                                                             other waste silk, not put up for retail sale, failing
                                                             within heading No ex 50.04 shall be suspended at
 Whereas, to take account of future trends in imports
                                                             2-5% within a Community tariff quota of 60 metric
                                                             tons .
 of the product in question, the quota should be
 divided into two tranches, the first being allocated
 and the second to form a reserve intended to cover          2. Within the tariff quota, the new Member States
 any subsequent requirements of Member States who            shall apply duties calculated in accordance with the
 have used up their initial shares ; whereas, in order       relevant provisions of the Act of Accession.
 to ensure a certain degree of security for importers,
 the first tranche of the Community tariff quota                                          Article 2
 should be fixed at 78% of the total quota;         :
                                                                   I
Whereas , to take account of future
                                                             1 . A first tranche of 47 metric tons of this Com­
trends in imports of the product ;                          munity tariff quota shall be allocated among the
in question , in the various Member                         Member States. Member States' shares which, subject
   States , the quota should be divided                     to Article 5, shall be valid until 31 December 197 7
into two tranches , the first being                          shall be as follows:
distributed among the Member States !                                                                     in metric tons
and the second to form a reserve in- j
                                                                     Benelux                                    1
tended to cover any subseauent re­
quirements of Member States who have                                 Denmark                                    1
used up their initial shares ; whereas                               Germany                                   17
in order to ensure a certain degree                              I   France                                    12
of security for importers of each ,
Member State the first tranche                                       IrelancJ                                   1
   should be fixed at 78% " of' the                                  Italy                                     13
total quota ;                                                        United Kingdom                             2.
  Whereas the initial shares may be used up at              2. The second tranche of              13 metric  tons   shall
  different rates; whereas, to provide for this even­       constitute the reserve.
  tuality and to avoid disruption of supplies, any
  Member State which has almost used up its initial
  share should draw an additional share from      -     the      >                       Article 3
  reserve ; whereas this should be done by each Member
  State when each of its additional shares has been         1 . If 90% or more of a Member Stare 's iniriai share
  almost used up, and so on as many times as the            as fixed in Article 2 ( 1 ), or of that share minus any
 ---pagebreak---                                                                     3
 portion returned to the reserve where Article 5 has                                     Artirlc 6
 been applied, has been used up, rktt Member Statu
 slull forthwith , by notifying the Commission, draw           The Commission shall keep an account of the shares
 a second share, to the extent that the reserve so             opened by the Member States pursuant to AniJes
 permits, equal to 10% of its initial share, rounded           2 and 3 and , as soon as it has been notified , shall
 up as necessary to the next whole number.                     inform cadi State of the extent to which the reserve
                                                               has bevn used up .
 2. If, after its initial share has been used up, 90%          It shall inform the Member States, not later than
or more of the second share drawn by a Member                  5 ( October 19 / 7 , of the reserve Dosition pfte
 State has been used up, that Member State shall               amounts have been returned thereto pursuant to
forthwith, in the manner and to the extent provided            Article 5 .
 in paragraph 1 , draw a third share equal to 5% of
 its initial share.                                            It shall ensure that the drawing which exhausts the
                                                               reserv ; docs not exceed the balance available and to
                                                               this e,id , shall notify the amount of that balance to
                                                               the Member State making the last drawing.
3. If, after its second share has been used up, 90%
or more of the third share drawn by a Member State
has been used up, that Member State shall forthwith,                                     Article 7
in accordance with the same conditions, draw a
fourth share equal to the third.
                                                               1 . Member States shall take all appropriate measures
                                                               to ensure that additional shares drawn pursuant to
This procedure shall apply until the reserve is used           Article 3 are opened in such a way that imports may
up.                                                            be charged without interruption against their
                                                               aggregate share: of the Community quota .-
4. By way of derogation from paragraphs 1 , 2 and 3 ,          2. Member States shall ensure that importers
Member States may draw lesser shares than those                                      : established in their territory have
                                                               free access to the shares allocated to then .
specified therein if there are grounds for believing
that those specified may not be used in full. They
shall inform the Commission of their reasons for               3 . Member States shall charge against their shares
applying this paragraph.                                       impoits of the product in question as and when the
                                                               product is entered with the customs authorities
                                                               for home use.
                         Article 4                             4 . The extent to which a Member Stare has used
                                                               up its share shall be determined on the basis of the
                                                               imports charged in accordance with paragraph 3.
Additional shares drawn pursuant to Article 3 shall
be valid until 31 December 197<7
                                                                                         Article 8
                         Artide 5                              At the Commission's request, Member States shall
                                                               inform it of the imports actually charged against
                                                               their shares.
Member States shall return to the reserve, not later
than 1 October 197. 7 the unused portions of their
initial shares which, on 15 September 197< , are in                                      Article 9
excess of 20% of the initial amounts. They may
return a greater portion if there are grounds for              Member States and the Commission shall cooperate
believing that such portion may not be used up.                closely to ensure that this Regulation is complied
                                                               with.
Member States shall notify the Commission, not
later th n 1 October 197^, of the total quantities of                                   Article 10
silk van . imported up to and including 15 September
197'7and charged against the Community quota and
of any portion of their initial shares returned to the         This Regulation shall enter into force on 1 January
rcsen                                                          197.7 .
                 This Regulation shall be binding in its entirety and directly applicable in all Member
                 States.
                 Done at   Brussels ,
                                                                                    For the Council
                                                                                       The President
 ---pagebreak---                                                                 Draft
                                            REGULATION ( EEC)                         OF THE COUNCIL
                             on the opening, allocation and administration of a Community tariff quota for yarn,
                             spun entirely from silk waste other than noil , not put up for retail sale, falling within
                                          heading No ex 50.05 of the Common Customs Tariff ( 197 7 )
              THF. COUNCIL OF THE EUROPEAN COMMUNITIES ,                         Customs Tariff duty would result in those products
                                                                            , being subjected to a considerable customs charge
                                                                           )• while products manufactured from silk yarn face
                                                                                 powerful competition from similar products
              Having regard to the Treaty establishing the                   , manufactured       from   other material ;  whereas    an
              European Economic Community, and in particular                  i insufficient supply, added to competition at finished
               Article 28 thereof;                                            " product level, might have adverse results for the
                                                                               i Community's processing industries;
              Having regard to the draft Regulation submitted
              by the Commission;
                                                                                 Whereas the Common Customs Tariff duty applicable
                                                                                 to imports of the yarn spun from waste silk in
              Whereas, in accordance with the resolution passed                  question is 3-5% ; whereas, when fixing the quota
              at its meeting from 29 to 31 May 1967, the Council,                duty, it is appropriate to take into account, on the
              by its Regulation (EEC) No 323/70 (' ), reintroduced,              one hand, the situation of the Community industry
              until 31 December 1976, the 7% autonomous duty                     producing yarn spun from waste silk and, on the
              of the Common Customs Tariff for yarn, spun                ^       other, that Of the industries processing yarn spun
              entirely from silk waste other than noil, not put up               from waste silk with regard to their supplies on
              for retail sale, falling within heading No ex 50.05 ;              favourable terms ; whereas a quota duty of 1% could
              whereas the conventional duty for that product is                  best meet the abovementioned requirements;
              3-5% ;
              Whereas      the   aforementioned    resolution  further           Whereas the trends in imports during 197 5 suggest
              provides for the opening, in respect of that period                that Community import requirements for the yarns in
              and for such yarn , of an annual Commurrity tariff ■               question might be in the region of 195 metric tons
              quota with reduced duty or nil duty, anc' for a          j         for 1977, whereas the opening of a Community
      reexamination ot the sectoral situation I                                  tariff quota of that volume is unlikely to harm
      in 1976 ; whereas , however , major invest­                                Community production;
      ments have been made in Italy for this
      purpose with the assistance of the State ,                                       r
                                                                                       i'
,     the regions and individual persons ; where­                                Whereas equal and continuous access to the quota
      as the Community has made contributions                                    should be ensured for all importers and the rate
      to these efforts in the form of supple­                                    laid down for the tariff quota should be applied
      mentary aid ; whereas for yarn spun entirely                                consistently to all imports of the product in question
      from silk , it is appropriate to follow t                                  until the quota is used up ; whereas a system of
      a policy analagous to that which is pro­                                   utilization of the Community tariff quota, based
      posed for raw silk ; whereas under such                                    on    an   allocation  between    the ' Member   States
      conditions , it is advisable to extend                                     concerned, would, in the light of the principles
  " " the " ■system-- now in force to enable a                                   outlined above, appear consistent with the Com­
                                                                                 munity nature of the quota ; whereas, to represent
      close observation to be kept on Italian ;                                  as closely as possible the actual market trends in the
      production ;                                                   j           product in question, the allocation should be
           Whereas yam spun from waste silk is produced in                       proportionate to the requirements of the Member
                                                                                 States calculated with reference to statistical data
          the Community; whereas, although that production
          should cover all the Community requirements by                         on imports during a representative reference period
          reason of its overall volume, this docs not apply                      and to the economic prospects for the quota period
          with regard to yarn entirely spun from waste silk ;                    in question ;
          whereas there is, as a result, an insufficient supply
          in the Community;
         Whereas, consequently, Community supplies of those
          qualities of yarn depend to a considerable extent
          on imports; whereas full application of the Common
         ( ') OJ No L 43 , 24. 2. 1970, p. 8.
 ---pagebreak---    Whereas the imports of the products falling within              Whereas if, at a jxiven date in the quota period , a
   he;nliiv4 No 50.05 of each of the Member States                 considerable qi amity of the initiaL share i g Left
   concerned during the last three years for which                over in a Member State , it is essential that
   complete statistics are available represent the
   following percentages of total Community imports               that Member State should return a orooortior
   of these products:                                             to the reserve , so - as to -avoid 2 psrt
                                                                  n-f Ho minta rpmaininn unu«:pH in nnrp Member
                                            1973     1974 1 9 7 5 S\v/iate wh?n "*?• (tou '-fl be < H?? d "> n pthers ;
                                                                   Whereas, since the Kingdom of Belgium , tfie King-'
   Bénélux                                   1-5       1    0      dom of the Netherlands and the Grand Duchy of
                                                                   Luxembourg are united within and jointly
   Denmark                                   0         0    0      represented by the Benelux Economic Union, any
   Germany                                  43-7      50    56.6 measure concerning the administration of the shares .
                                             7-2      10
                                                                   allocated to that Economic Union may be carried
   France                                                   18.5
                                                                   out by any one of its members,
   Ireland                                   0         0  ,0
   Italy                                    360       33    14.9
   United Kingdom                           12-6       6;   10     HAS ADOPTED THIS REGULATION :
   When/as, in view of these factors and of the forecasts               \                   Article 1
   which it is possible to make, the initial percentage
   shares in the quota vokme can be expressed                       1 . From 1     January to 31       December 1977 the
   approximately as follows :                                      autonomous duty of the Common Customs Tariff
                                                                   for yam, spun entirely from silk waste other than
             Bénélux                            0*6                noil, not put up for retail sale, falling within heading
             Denmark                            0-6                No ex 50.05, shall be suspended at 1% within a
                                                                   Community tariff quota of 195 metric tons.
             Germany                           49-4
             France                             9-3                2. Within the larqifrfa^tlie^iKW Member States
             Ireland                            0-6                shall apply duties calculated in accordance with the
                                                                    relevant provisions of the Act of Accession.
             Italy                             30-9
             United Kingdom                     8-6 ;
Whereas , to take account of future trends                                                  Article 2
in imports of the product in question
in the various Member States the quota                              1 . A first tranche of 162 metric tons of this Com­
should be divided into two tranches , the                           munity tariff quota shall be allocated among the
first being distributed among the Member                            Member States. Member State's shares which, subject
States and the second to form a reserve                             to Article 5 , shall be valid until 31 December 197' 7
                                                                    shall be as follows :
intended to cover any subsequent require­
ments of Member States who have used up
                                                                                                              in metric tons
their initial shares ; whereas in order
                                                                            Bcnclux                                 1
to ensure a certain degree of security
for importers of each Member State                     the                  Denmark                                 1
first tranche should be fixed at 83% of the                                 Germany                                80
total quota ;                                                               France                                 lJ
      Whereas the initial shares may be used up at different                Ireland                                 1
      rates ; whereas, to provide for this eventuality and                  Italy                                  50
      to avoid disruption of supplies, any Member State                     Unite4 Kingdom                         14;
      which has almost used up its initial share should
 ^    draw an additional share from the reserve; whereas
      this should be done by each Member State when                2. The secoad tranche of 33           metric tons shall
      each of its additional shares has been almost used ■          constitute the reserve.                                  .
      up, and . so on ai; many times as the reserve allows ;
      whereas the initial and additional shares should be
                                                                                            Article 3
      valid until the end of the quota period ; whereas this
      form of administration requires close collaboration
      between Member States and the Commission, which               1 . If 90% or, more of a Member Scare 's initial share
      latter must be able ,to keep a record of the extent          as fixed in ^.rricle 2 ( 1 ), or of rhat share minus any
      to which thei<fiT<M Tias been used up and to inform j
      the Member States accordingly;
 ---pagebreak---                                                                3
     portion returned to the reserve where Article 5 has                                  Anide 6
     been applied , has been used lip, that Member State
£   shall forthwith, by notifying the Commission, draw             The Commission shall keep an account of the shates
    a second share, to the extent that the reserve so              opened by the Member States pursuant to Article -.
,   permits, equal to 10% of its initial share, rounded            2 and 3 and, as soon as it has been notified , shall
Q    up as necessary to the next whole number.                     inform each State of the extent to which the reserve
                                                                   has been used up.
    2. If, after its initial share has been used up, 90%           It shall inform the Member States, nor later than
    or more of the second share drawn by a Member
    State has been used up, that Member State shall                5 October 197 7 of the reserve position after
    forthwith, in the manner and to the extent provided           amounts have been returned thereto pursuant to
                                                                  Article 5 .
    in paragraph 1 , draw a third share equal to 5%
    of its initial share.
                                                                  It shall ensure that the drawing which exhausts the
                                                                  reserve does not exceed the balance available and
   3. If, after its second share has been used up, 90%            to this end, shall notify the amount of that balance
   or more of the third share drawn by a Member                   to the Member State making the last drawing.
   State has been used up, that Member State shall
   forthwith, in accordance with the same conditions,                                    Artide 7
   draw a fourth share equal to the third.
                                                                  1 . Member States       shall   take   all  appropriate
   This procedure shall apply until the reserve is used           measures to ensure that additional shares drawn
   up .                                                           pursuant to Article 3 are opened in such a way
                                                                  that imports may be charged without interruption .
                                                                  against their aggregate shares of the Community
   4. By way of derogation from paragraphs 1 , 2 and              quota .
   3 , Member States may draw lesser shares than those
   specified therein if there are grounds for believing          2. Member States shall , ensure that importers
   that those specified may not be used in full. They                                     , established in their territory
  shall inform the Commission of their reasons for               have free access to the shares allocated to them.
   applying this paragraph.
                                                                 3 . Member States shall charge against their shares
                                                                 imports of the product in question as and when
                                                                 the product is entered with the customs authorities
                             Article 4                           for home use.
                                                                 4. The extent to which a Member Stare has used
  Additional shares drawn pursuant to Article 3 shall            up its share shall be determined on the basis of the
   be valid until 31 December 197t 7-
                                                                 imports charged in accordance with paragraph 3.
                                                                                         Article 8
                            Article S
                                                                 At t,(ie Commission's request, Member States shall
                                                                 inform ir of the imports actually charged against their
   Member States shall return to the reserve, not later          shares.
  than 1 October 19-77 ie unused portions of their
  initial shares which, on 15 September 1977, are in
  excess of 20% of the initial amounts. They may                                         Article 9
  return a greater portion if there are grounds for
  believing that such portion may not be used up.                Member States and the Commission shall cooperate
                                                                 closely to ensure that this Regulation is complied
                                                                 with. •
  Member States shall notify the Commission, not
  later than 1 October 197p of the total quantities
  of yarn from silk waste imported up to and including                                  Article 10
  15 September 19? 7 and charged against the Com­
  munity quota and of any portions of their initial              This Regulation       shall    enter  into   force    on
  shares returned to the reserve.                                1 January 1977 .
                        This Regulation shall be binding in its entirety and directly applicable in all Member
                        States.
                           Done at Brussels ,
                                                                                          For the Council
                                                                                            The President