CELEX: 51998PC0529
Language: en
Date: 1998-09-25
Title: Proposal for a Council Decision on the Community position within the EC/Turkey Association Council on the introduction of common outward processing arrangements for textiles and clothing

COMMISSION OF THE EUROPEAN COMMUNITIES
   • A
 t ' .,
                                                  Brussels, 25.09.1998
                                                  COM(1998) 529 final
 **                                               98/ 0279 (ACC)
                                   Proposal for a
 • .1                         COUNCIL DECISION
                       the Community position within the
                         EC/Turkey Association Council
     &  on the introduction of common outward processing arrangements
     I                       for textiles and clothing
   M
                          (presented by the Commission)
• €
 m
Hi
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 ---pagebreak---  ---pagebreak---                             Explanatory Memorandum
1. The EC-Turkey Association Council adopted Decision No 1/95 on implementing
   the final phase of the Customs Union on 22 December 1995.
2. Turkey adopted its own legislative measures to introduce outward processing
   arrangements for textiles and clothing, referred to as economic outward
   processing, in compliance with Article 12 of Decision 1/95,. The arrangements
   can be applied on the Community side where goods in free circulation of
   Community origin are exported temporarily to a third country and are then
   reimported into the Community in the form of compensating products;
   conversely, they can be used on the Turkish side where goods in free circulation
   of Turkish origin aie exported temporarily to a third country and are then
   reimported into Turkey in the form of compensating products.
3. Measures are required (a) to allow compensating products to be reimported into a
   part of the Customs Union other than that from which the goods had been
   exported for working in a third country under the economic outward processing
   arrangements and (b) to enable goods in free circulation originating in one part of
   the Customs Union which are to be processed in a third country to be placed
   under the economic outward processing arrangements in the other part of the
   Customs Union. The puipose of the proposed EC-Turkey Association Council
   Decision is to adopt measures allowing economic outward processing operations
   involving both parts of the Customs Union to be undertaken in a third country.
                                        â
 ---pagebreak--- 4. The measures in question will help consolidate the Customs Union. They form
   part of the Commission's initial operational proposals under the European Strategy
   for Turkey defined in the recent Commission Communication to the Council
   (COM (1998) 124 final of 4 March 1998).
5. They should not have any negative economic impact on Community operators as
   the economic outward processing arrangements will be used only in cases where
   import quotas apply, and such quotas have been abolished for Central and Eastern
   Europe and the Mediterranean countries, which account for the majority of
   processing of textiles and clothing. These measures must, nevertheless, anticipate
   any future economic outward processing needs and must therefore be global in
   nature.
6. The Commission invites the Council to adopt the attached proposal for submission
   of the draft decision to the EC/Turkey Association Council.
 ---pagebreak---                                     Council Decision
                             on the Community position
                    within the EC-Turkey Association Council
        on the introduction of common outward processing arrangements
                               for textiles and clothing
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 113 together with the first sentence of Article 228(2) thereof,
Having regard to the proposal from the Commission,
Whereas common outward processing arrangements for textiles and clothing must be
introduced under the Customs Union between the European Community and Turkey,
HAS DECIDED AS FOLLOWS:
The position to be taken by the Community within the EC-Turkey Association
Council on the introduction of common outward processing arrangements for textiles
and clothing shall be based on the proposed draft Decision in the Annex.
Done at Brussels,
                                                       For the Council,
                                                       The President
                                           <t>
 ---pagebreak---                               Draft proposal for a Decision
                         of the EC-Turkey Association Council
          on the introduction of common outward processing arrangements
                                 for textiles and clothing
THE EC-TURKEY ASSOCIATION COUNCIL,
Having regard to the Agreement establishing an Association between the European
Economic Community and Turkey,1
Having regard to Decision No 1/95 of the EC-Turkey Association Council of 22
December 1995 on implementing the final phase of the Customs Union,2
Whereas, pursuant to the eighth indent of Article 12(1) of Decision No 1/95, Turkey
adopted its own legislative measures to introduce outward processing arrangements
for textiles and clothing, hereinafter referred to as economic outward processing;
whereas such arrangements may apply on the Community side where goods in free
circulation of Community origin are exported temporarily to a third country to be
reimported into the Community in the form of compensating products and, on the
Turkish side, where goods in free circulation of Turkish origin are exported
temporarily to a third country to be reimported into Turkey in the form of
compensating products;
Whereas measures must be adopted to allow compensating products to be reimported
into a part of the Customs Union other than that from which the goods had been
exported for processing in a third country under the economic outward processing
arrangements, and to enable goods in free circulation originating in one part of the
Union which are to be processed in a third country to be placed under the economic
' O J L 217, 29.12.1964.
2
  OJ L35, 13.2.1996.
                                             .T
 ---pagebreak--- outward processing arrangements in the other part of the Customs Union; whereas
these measures must be based on the economic outward processing arrangements
already applying in both parts of the Customs Union;
Whereas an evaluation should be undertaken two years after this Decision enters into
force to establish how the common arrangements are working; whereas the
arrangements will have to be adjusted if any cases of fraud or disruption of the textile
market are detected;
Whereas the measures in question should preferably anticipate any future economic
outward processing needs; whereas they must therefore be global in nature,
 HAS DECIDED AS FOLLOWS:
                                           £
 ---pagebreak---                                        Article 1
1. The purpose of this Decision is to adopt measures providing for economic
   outward processing operations which concern both parts of the Customs Union.
   The operations in question are those undertaken under economic outward
   processing arrangements based on the following legal instruments:
   -    For the Community, Council Regulation (EC) No 3036/94 of 8 December
        1994 establishing economic outward processing arrangements applicable to
        certain textiles and clothing products reimported into the Community after
        working or processing in certain third countries;3
   -    For Turkey, [reference to the Turkish legislative act].
2. For the purposes of this Decision:
   -    " part of the Customs Union " means the European Community or Turkey as
        the case may be;
   -    other terms aie defined, mutatis mutandis, in the legal instruments referred to
        in paragraph 1.
                                       Article 2
1. Where, on the basis of the legal instruments referred to in Article 1, economic
    outward processing arrangements are applied in one part of the Customs Union,
    compensating products may be imported into the other part of the Customs Union
    in accordance with the terms of these arrangements.
 OJ L 322, 15.12.1994.
 ---pagebreak--- 2. The goods for which economic outward processing arrangements are authorised
   in one part of the Customs Union on the basis of the legal instruments referred to
   in Article 1 may originate in the other part of the Customs Union.
                                        Article 3
Two years after this Decision enters into force the EC-Turkey Association Council
shall, on the basis of a report by the EC-Turkish Customs Cooperation Committee set
up by Decision No 2/69 of the EC-Turkey Association Council, undertake an
evaluation of the arrangements established by this Decision and shall if necessary take
measures to correct any problems.
                                        Article 4
The EC-Turkey Customs Cooperation Committee shall lay down the appropriate
 measures to implement this Decision.
                                         Article 5
 This Decision shall enter into force on 1 January 1999.
 Done at Brussels on
                                                For the EC-Turkey Association Council
                                                The President
                                            <r
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(98) 529 final
                                             DOCUMENTS
EN                                                                10 11 02
                                    Catalogue number : CB-CO-98-535-EN-C
                                                             ISBN 92-78-39222-7
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