CELEX: 51983PC0597
Language: en
Date: 1983-10-13
Title: Proposal for a COUNCIL REGULATION (EEC) amending for the second time Regulation (EEC) No 616/78 on proof of origin for certain textile products falling within Chapter 51 or Chapters 53 to 62 of the Common Customs Tariff and imported into the Community and on the conditions for the acceptance of such proof (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 597
Vol. 1983/0223
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                C0HC83) 597 final
                                                Brussels, 13 October 1983
                               Proposal for a
                         COUNCIL REGULATION (EEC)
    amending for the second time Regulation (EEC) No 616/78 on proof
    of origin for certain textile products falling within Chapter 51
     or Chapters 53 to 62 of the Common Customs Tariff and imported
      into the Community and on the conditions for the acceptance of
                                 such proof
               (submitted to the Council by the Commission)
 C0M(83) 597 final
 ---pagebreak---                     EXPLANATORY MEMORANDUM
 For the purposes of ensuring that measures of commercial policy taken in
 the textile sector were respected, Council Regulation No. 3059/78 (i)
 and 6]6/78 (2) implementing in the Community bilateral textile agreements
 with certain third countries, laid down a procedure for the control of
 origin of imports of textile products into the Community.
 Due to an increasing problem of fraud these provisions were strengthened
 by Council Regulation No. 1681/81 (3 ) which provided for increased
 cooperation between Member States and with third countries through
 exchanges of information on cases of fraud.
 On the basis of this procedure, a large number of cases of fraudulent
 imports of an overall value of around 300 million ECU were discovered
 during this period. These cases involved goods which had been incorrectly
 admitted into the Community (including in some cases without payment of
 duty), on the basis of falsely declared origin and falsified documentation.
 As a result of investigations carried out on an ad hoc basis by the
 Commission in collaboration with Member States in a number of third
 countries, the Commission was able to obtain compensation from the true
 country of origin for a quantity of 50 million pieces of clothing
 representing a value of '150 million ECU. In parallel, legal proceedings
 were taken in Member States against the responsible importers. In. this
 context action has been taken with a view to recovering a considerable
 amount of the customs duties involved in a number of cases.
The abovementioned measures were reviewed by the Commission when drawing
up the measures necessary to implement the bilateral textile agreements
negotiated under the third Multifibre Arrangement. This review has
demonstrated that while some progress has been made in preventing fraud,
experience has also shown that the existing provisions are inadequate to
cope with the increasingly sophisticated frauds often involving several
Member States with which the Community is faced and which tend to be
organized outside the Community.
(1) 0J No L 365 of 2.7.1978
(2) 0J No. L 8U of 31.3.1978
(3) 0J No. L 169 of 2.6.1981
 ---pagebreak---                                     - 2 -
 These frauds are often carried out by international criminal organisations
 transiting goods through several countries. By exploiting the weak
 administrative procedures in force there the necessary documentation to
 disguise the true origin of goods can be obtained.       The proof relating
 to such cases therefore very often lies outside the Community.
 Following this review,revised origin control and administrative cooperation
 procedures were accordingly included in the latest series of bilateral
 textile agreements which entered into force on 1 January 1983 . These
 agreements now contain measures concerning :
 —        adjustment of quantitative limits in cases where evidence of circum­
          vention of these limits has been presented to the third country
          concerned. These provisions include the right for the Community to
          unilaterally adjust these limits where no agreement on the adjust­
         ments is reached with the third country;
          strengthened administrative cooperation and verification procedures
          including participation of Community officials in enquiries in
         third countries.
When adopting Regulation 3589/82 (1 ) implementing the bilateral agreements
from 1 January 1983, the Council and the Commission declared that all
the necessary measures would be taken, including revision of Regulation
6 1 6 /7 8 to ensure that provisions concerning fraud would be applied in a
satisfactory manner.
This draft is accordingly submitted on the basis of experience acquired
to date in ensuring the satisfactory application of the bilateral textile
agreements and in response to the joint declaration by the Council and
the Commission. The object of this draft is to :
                                                         ./.
(1) OJ No. L 37^ of 3 1 .12.1982
 ---pagebreak---                                - 3 -
      extend and clarify the procedure established by Regulation 1681/81
     to provide for exchanges of information between Member States on
     all cases of fraud (not just origin) and between them and the
     Commission so that the evidence required for the adjustment of
     quantitative limits can be furnished to third countries;
     to create a procedure for the carrying out of Community administrative
     cooperation and investigative missions in third countries by the
     Commission in cooperation with Member States.
The adoption of this draft is essential to ensure that measures of
commercial policy provided for in the textile sector are correctly
applied, in particular as regards the adjustment of quantitative limits
by the Commission and the carrying out of legal proceedings in Member
States.
 ---pagebreak---                                       Proposal for a
                                COUNCIL RE GULATION (EEC)
                            amending for the second time
    Regulation (EEC) No. 616/78 on proof of origin for certain textile products
    falling within Chapter 51 or Chapters 53 to 62 of the Common Customs Tariff
   and imported into the Community and on the conditions for the acceptance of
   such proof.
   THE COUNCIL OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Economic Community,
   and in particular Article 113 thereof,
   Having regard to the proposal from the Commission,
   W.hereas the arrangements applied since 1 January 1978 to certain textile
  products falling within Chàpters 51 and 53 to 62 of the Common Customs Tariff
  and imported into the Community include quantitative limits established or
  agreed with certain third countries which supply the Community; whereas, in
  addition, all imports of the said textile products are subject to a system of
  surveillance; whereas such arrangements and systems have been renewed as
  from 1 January 1983;
 Whereas in order to prevent any deflection of trade or abuse which could be
 detrimental to the application of these arrangements, the               Council has
 adopted in Regulation (EEC) No. 616/78 0 ) as               amended by Regulation
 (EEC) No. 1681/81           a system for the control of origin of certain textile
 products imported into the Community, based on the requirement of a
 certificate of origin , or in the case of less sensitive products,
                                                                    .»·/..
(1) OJ No. L 84, 3 1 .3 .1 9 7 8 , p. 1
(2) OJ No. L 169, 2 6 .6 .1 9 8 1 , p. 5
 ---pagebreak---                                             - 2 -
       a declaration of origin; whereas Regulation (EEC) No. 1681/81 has reinforced
       this system by laying down an internal procedure for exchanges of information
       between    Member States on cases of fraud and between            them   and the
      Commission;
    . Whereas experience has snown that the scope of the procedure thus established
      needs to tje extended and clarified;
      Whereas experience has also shown that prevention of fraud requires that the
      Commission in particular carries out Community administrative cooperation
      and investigative missions be carried out in third countries by the Commission
      in cooperation with Mfember States to discover the facts and establish proof
      relating to fraudulent traffic for the purposes of taking appropriate measures
      both within the Community and with regard to third countries,
      HAD ADOPTED THIS REGULATION :
      Article 1
      Regulation (EEC) No 616/78 is hereby amended as follows:
1.    Article 4 is replaced by the following:
   " Article 4                                                 r
      1.    In order to ensure that measures of commercial policy provided for in the
            textile sector are correctly applied, each Member State shall work
             together with the Commission in the framework of Council Regulation
            (EEC) No. 1468/81 of 19 May 1981 on mutual assistance between the
                                                                    •· · /. . .
 ---pagebreak---                                           - 3-
         administrative authorities of the Member States and cooperation between
         the latter and the Commission to ensure the correct application of the
         iaw on customs or agricultural matters (D. To this end each Member State
         shall communicate to the Commission as soon as possible all the useful
         information in its possession concerning important cases of abuses or
         irregularities which come to its notice or which it has valid reason to
         presume exist with regard to such measures of commercial policy. The
        Commission shall inform the other Member States thereof. Furthermore
         Member States shall on their own initiative or at the request of the
        Commission provide additional information including copies of ail docu­
        mentation, possibly in the form of an extract, necessary to determine the
        facts fuily and to establish proof of abuses or irregularities with regard to
        the third countries concerned with a view to :
        (i)    implementing administrative cooperation with third countries as
               provided for in Article 4a (2 );
        (ii)   adjusting quantitative iim its established for imports of textile
               products in accordance with the procedure iaid down in Article 13 of
               Council Regulation (EEC) No. 3589/82 of 22 December 1982 on
               common rules for imports of certain tex tile products originating in
               third countries (2).
       (iii)   carrying out missions referred to in Article 4b.
(1) 0 3 No. L 144 of 2.6.1981, p.l
(2) 0 3 No. L 374 of 31.12.1982, p. 106
 ---pagebreak---                                              - 4-
     2.     The Commission shall/ at the request of a Member State or on its own
            initiative exam ine, at the earliest opportunity with Member States all
            questions relating to the application of paragraph 1, and proceed with
            exchanges of views which will enable Member States and the Commission
            to com plete their information and to present any possible observations on
            cases concerning the application of paragraph 1.
     3.    When paragraph 1 has been applied to the products provided for in Article
            3, the Com m ittee on Origin shall, pursuant to the procedure laid down in
           A rticle 13 of Regulation (EEC) No. 802/68 examine whether to require
           that a certificate of origin be produced for the products concerned and
           with regard to the third countries concerned in accordance with Article 2.
           The decision shall be taken in accordance with the procedure laid down in
           Article 14 of Regulation (EEC) No. 802/68."
2.   Article 4a(1) is replaced by the following:
   " 1.    Information communicated in whatever form pursuant to A rticle 4,
           including information obtained as a result of the missions referred to in
           Article 4 b,   shall be of a confidential nature. It shall be covered by the
           obligation of professional and commercial secrecy and shall enjoy the
           protection extended to iike information under both the national law of the
           Member State which received it and the corresponding provisions applying
           to the Community authorities."
3.   The following Article is inserted:
     "Article 4b
       1.  For the purposes of ensuring that measures of commercial policy
          provided for in the textile sector are correctly applied, the
          Commission shall in particular carry out Community administrative
          cooperation and investigate mi ssions in third countries in
          cooperation with Member States under the following terms:
 ---pagebreak---                                     - 5 -
      (i)     the Commiss io n may unde rta ke such m i ss ion s on its own initiative
              or at the request of the Member State(s) concerned;
      (ii)    the Member State(s) concerned shall designate, at the request
              of the Commission, experts entrusted to pa rt icipate in such
             missions;
      (iii)  the Me mb er States    and the Commission shall make available the
              information and d o c u men ta tio n necessary for execution of the
             missions to be carried out in acco rda nc e with the procedure
              laid down in Article 4;
     (iv)    mi ssion ex penses incurred in carrying out tasks referred to in
             this Article shall be reimbursed by the Commission.
2.   The Commission shall inform the Member States of the results of the
     missions referred to in paragraph 1."
Article 2
This Regulation shall enter into force on the day of its pu bl ication in the
Official Journal of the European Communities.
It shall apply with effect from 1 September 1983.
This Regulation shall be binding in its en ti ret y and directly applicable
in all Member States.
Done at Brussels,                                            For the Council
                                                              The President
 ---pagebreak--- FINANCIAL RECORD
Draft proposal for a Council Regulation amending for the second time
Regulation (EEC) No. 6 1 6 /7 8 on proof of origin for certain textile
products falling within Chapter 51 or Chapter 53 to 62 of the Common
Customs Tariff and imported into the Community and on the conditions for
the acceptance of such proof.
1.   Budgetary heading code : 1301 and 2500
2.   Legal Basis : Article 113, EEC Treaty
3.   Description of Project
     3.1  General Objectives
          To ensure the effective application of Community textile
          import arrangements by reinforcing the methods of preventing
          fraud on the origin of textile products.
     3.2  Specific Objectives
          - to extend and clarify the methods of exchanging information
            on cases of fraud between Member States and between them and
            the Commission established by Regulation 6 1 6 /7 8 as amended
            by Regulation 1681/81.
          - to establish a coordinated procedure for the carrying out
            of Community administrative cooperation and investigative
            mission by the Commission in cooperation with Member States.
     3.3  Financial implications of the pro.ject
          The carrying out of Community administrative cooperation and
          investigative missions by the Commission in cooperation with
          Member States.
                                                              ·/.
 ---pagebreak---                                  -  2 -
H. Justification of the project
   To date some investigations into cases of fraud involving enquiries
   in third countries have been carried out on an ad hoc basis by the
   Commission in collaboration with certain Member States.   These
   missions have been necessary to establish proof relating to fraudulent
   operations (not otherwise available in the Community) and to determine
   the true origin of the goods.   The successful outcome of these ad
   hoc missions has enabled the Member States to instigate proceedings
   against those responsible in the Community, and the Commission to
   seek compensation vis-à-vis the true country of origin of the
   goods. These investigations have also provided the basis for the
   recovery of a certain amount of own resources. However, experience
   has shown that these frauds tend increasingly to become more sophis­
   ticated and involve more than one Member State,. Moreover, most of
   the proof lies outside the Community while the means at the disposal
   of the Community to carry out the appropriate investigations are
   insufficient.
   Furthermore since 1 January, the Commission is responsible for
   implementing the provisions on the new textile agreements in particular
   those relating to the adjustment of quantitative limits. As establishing
   the necessary proof in support of such adjustments may involve
   carrying out enquiries in third countries, it is necessary that the
   appropriate Community basis for the undertaking of such enquiries
   be created.
5. Financial implication in respect of intervention appropriations
   5.]  Basis for estimation
        The introduction of a procedure for the carrying out of
        Community administrative cooperation and investigative missions
        by the Commission in cooperation with Member States will
 ---pagebreak---                               - 3 -
          result in operational expenses necessary for such missions
          which will be carried out as and when the need arises.
          The appropriations to be provided should cover the following :
               mission expenses (i.e. travel and accomodation) of
               Commission officials carrying out the missions in third
               countries ;
               mission expenses of experts of Member States assisting
               the Commission in carrying out such missions in third
               countries;
          -    mission expenses of Commission officials incurred as a
               result of travel within the Community for the preparation
               of such missions;
               mission expenses of experts of Member States incurred as
               a result of travel within the Community (Brussels or in
               other Member States) for the preparation of such missions.
          The estimations shown below are based on an initial    hypothesis
          of 6 enquiries per year.   Each enquiry will require 5 days of
          preparation of dossiers in Brussels, 5 days in Member State(s)
          concerned and 3 weeks in one or several third countries.
      5.2 Estimated appropriations to be provided for
          Task                Budgetary post           Budgetary post
                                    1301                    2500
Preparation of dossier in
Brussels                                                     8,300 ECUS
6 x (2pers. 5 days)
Preparation of dossier in
Member States                       3,600 ECUS               ^,600 ECUS
6 x (2 pers. 5 days)
Enquiry in third countries         27,600 ECUS              55,200 ECUS
6 x (3 pers, 21 days)
Total                              31,200 ECUS              68,100 ECUS
 ---pagebreak--- 6. Implications for own resources
   In addition to their repercussion on the implementation of the
   quantitative arrangements applicable to textile imports, the
   administrative cooperation and investigative missions are liable to
   lead to the recovery of customs duties in cases where goods fraudu­
   lently imported have been incorrectly exempted from payment of duty
   under a preferential regime.