CELEX: 51976PC0160
Language: en
Date: 1976-04-22
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for processing work in relation to certain textile products under the outward processing traffic arrangements of the Community. (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 160
Vol. 1976/0046
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                      COM(76)160 final.
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                        !                                             Brussels . 22 April 1976 *
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                                               .   Proposal for a
                                  REGULATION (EEC ) OP THE COUNCIL
      on the opening , allocation and administration of a Community
                                                          ■
      tariff quota for processing work in relation to certain textile
      products under the outward processing traffic arrangements of
                                                   the Community., .
                     ( submitted to the Council by the Commission)
                                 ,■ > >
                                                                                                   ■ ■
    C0K(76 ) 160 final .
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
                        Τ · >
I#   In an Arrangement ooncluded with the Swiss Federation on I August I9°9i
     the European Eoonomio Community undertook to open an annual duty free
     Community tariff quota of 1,879,000 units of acoount of added value on the
     various kinds of processing work for certain textile produots included in the
     outward prooesBing traffic of the Community to Switzerland#
2.   Under the terms of the memorandum agreed at the time the Arrangement was
     made , this annual tariff quota is divided into three categories of pro­
     cessing, based on the quantities recorded under the former "bilateral agree­
     ments (concluded with Switzerland by Prance , Germany and Italy), but taking
     into account the possibilities of extending it to the Benelux countries#
   ■ On the basis «f that division the total quota amount of 1,870,000 units of
     account is appropriated as follows :
     a) 1,650,000 units of aocount for processing work on woven fabrics falling
         within Chapters 50 "to 57 of. the Common Customs Tariff j
     b) 143,000 units of account for twisting or throwing, re–twisting cabling,
         texturizing (whether or not combined with other processing work) of yarns
         falling within Chapters 50 to 57 of the Cwmmen Customs Tariff J
     o) 77 » 000 unite of aooount for processing work on articles falling within
         headings 50»O4 , 58«05 , 58*07 f 58*08 , 58*09   60.01 of the Common
         Customs Tariff#
     (I ) ©J No L 240, 24#9»I969.
 ---pagebreak---  At the request of the Swiss authorities and BO that the division of .ne
 whole quota into 'the three categories of processing referred to above should
  be better related to the aotml 'movement ^ "trade during the reference year
  which served as the "basis for. calculating t,he total amount of the quota and
  trade movements taring recent quota periods or foreseeable movements , it was
   decided to make certain tr^sfers /between, the three quota amounts of
  which the final one was 150,000 u.a.; transferring from the figure .alloca­
  ted for prooeaeing work on articles '(category C) to that Bet . aside for . _
  processing work on woven fabrics falling within Chapters 50 to 57. Simi­
   larly and in order to allow access to the tariff quota, it .was decided that
   the' Community reserves should be .amalgamated and that in this way the^new
   reserve could cover all types of processing' work regardless of the cate­
   gory they come under »               .          *                          .
   The "'t otal quota amount of 1,810,000 u.a. would be allocated among the throe
    categories as follows ; .       .     .     .         '•    .      * ■   ' .    '
    « 1 , 520,000 u.a, for processing operations on woven fabrics ailing w-tlan
       Chapters 50 to 57 of the Common Customs Tariff 5                    t          ■
    - 12^ 000 u.a# for processing operations on woven fabrics falling witlun
        Chapljeys 5° to 57 of the CCTj ^                                         - ! '
    -'227,000. u.a, fqv prooessing ^woyk on articles tailing within heacungs
   : "* 58.04 to '60.01 of' the CCT^ subject to 'the setting up of a Coonmnity re­
        serve of 230,000 u.a. to be drawn ^rom the above founts , ^hat. is . 160,000
        uia.» *X3»000 u.a.'and v57,000 u.a. respectively.
                                                                   t .
. The only objective of the proposal Regulation annexed horeto is , therefore ,
   to open the tariff quota provided for in the Arrangement concerned for the
    period from I September 197(5 to 31 August 197?', and to divide it between the
    Member States according to the factor, shown in the .KahOMBd® to the Arrange
    ment referred to above , talcing into account the amendments which have baon
    made meanwhile and the need io provide for the participation of the new
    Member States in the allocation of the tariff quota.
 ---pagebreak---                                            -3-
    It should however be noted in this connection that according to information
    obtained during the meeting of the joint EEC - Swiss Commission , confirmed
    by the State of exhaustion of the quota concerned during previous cjuota
    periods , the new Member States are not using outward processing for their
    textileproduots# Until Buch time as the said Arrangement is repealed or
    thoroughly amended by reason of the expiry of the period of transition of
    the        _     Agreement concluded with Switzerland , it should be possible
    in order to cover any needs which could arise in the new Member States for
    these States to draw a sufficient share , where necessary , from the Community
    reserve#
5 . The proposal for a Regulation annexed hereto provides for the administration
    of the quota by the system of prior allocation and that the maximum amount
    returned to the reserve shall be 2CP/O of the initial share .
 ---pagebreak---                                                                                                                     ΑΪΓΝΕΧ
                                                     Proposal for a
                                 REGULATION (EEC) No . . »/l6 OF THE COUNCIL
                                                        of   ••••«•••
                  on the opening, allocation and administration of a Community tariff quota for
                  processing work in respect of certain textile products under Community
                                            outward processing arrangements
! THE COUNCIL OF THE EUROPEAN
: COMMUNITIES,
                                                                    trade during future quota periods, it has been decided
                                                                    to adjust the said allocation between the three catego-*
                                                                    ries by giving them 1 520 000, 123 000 and 227 000
                                                                    units of account respectively ; whereas the Commu­
   Having regard to the Treaty establishing the European            nity tariff quota in question should be opened for the
   Economic Community, and in particular Article 113                period 1 September 1976 to 31 August 1977
   thereof ;             ...                                        according to the provisions laid down in the arrange­
                                                                    ment specified above, and in amendments to it ;
   Having . regard to the proposal from the Commission ;
                                                                   Whereas provision should be made in particular to
                                                                   ensure     equal  and   continuous access    for   those
                                                                   concerned with this quota and consistent application
  Whereas on 1 August 1969 the Community                           of the rate of duty prescribed for the said quota until
  concluded an arrangement with Switzerland on                     the quota is exhausted, to all goods re-imported into
  processing traffic in textiles ; whereas under that arran­       any of the Member States and which have received
  gement the Community undertook to open on 1                      one or other of the treatments listed above ; whereas
  September of every year an annual duty free Commu­               in the light of these principles arrangements for the
  nity tariff quota for processed goods of 1 870 000              utilization of the quota based on an allocation among
  units of account of added value, apportioned as                 the Member States would seem to be consistent with
  follows :
                                                                  the Community character of the said quota ; whereas,
                                                                  it therefore seems appropriate to make the allocation
 (a) I 650 000 units of account for processing work on            on the basis of the amount of the traffic under the
      woven fabrics falling within Chapters 50 to 57 of           previous bilateral agreements, but without precluding
      the Common Customs Tariff ;                                 participation by Member States not previously
                                                                  involved in such traffic, among which the new
 (b) 1 4.? 000 units of account for the twisting or               Member States are included ; whereas, to safeguard the
      throwing, cabling and texturizing (whether or' not         Community character of the quota, provision should
      combined with other processing works) of yarns             be made to meet requirements which may arise in
      falling within Chapters 50 to 57 of the Common             those Member States in the future permitting them to '
      Customs Tariff ;                                           draw adequate amounts from the Community reserve ;
(c) 77 000 units of account for processing work on
      products falling within heading Nos 58.04, 58.05          Whereas to take account of future trends in the traffic
      58.07, 58.08, 58.09 and 60.01 of the Common                in question in the various Member States, the total
      Customs Tariff ;                                          quota volume of I 870 000 units of account should be
                                                                divided into two tranches, the first being allocated
                                                                among certain Member States and the second held as
                                                                a reserve to cover the subsequent requirements of
Whereas, in order that the division of the whole quota          Member States when one of their initial shares have
into the three categories referred to above shall corres­       been exhausted and also, requirements which may
pond more exactly with the actual movement of trade             arise in certain Member States in respect of processing
during the reference year or during previous quota              work (or which no initial share of the quota was allo­
periods as well as with the foreseeable movement of             cated ; whereas in order to give the parties concerned
 ---pagebreak--- in each Member State some degree of certainty it                (c) 227 000 units of account for processing work on
would seem appropriate to fix the first tranche of the                    articles falling within the following headings of
Community quota at a relatively high level, namely ,                      the Common Customs Tariff :
1 640 000 units of account ; whereas the total Commu­                     58.04 Woven pile fabrics and chenille fabrics
nity reserve of 230 000 units of account shall consist                             (other than terry towelling or similar terry -
of amounts drawn from the allocations in respect of                                fabrics of cotton falling within heading No
each category, that is 160 000, 13 000 and 57 000                                  55.08 and fabrics falling within heading No
units of account respectively ;                                                    58.05);
Whereas the Member States may exhaust their initial              ;        58.05 Narrow woven fabrics, and narrow fabrics
shares at different rates ; whereas to avoid disruption                            (bolduc) consisting of warp without weft
of supplies on this account it should be provided that                             assembled by means of an adhesive, other
any Member State which has almost used up one of its                             . than goods falling within heading No
 initial shares should draw an additional share from the                            58.06 ;
 reserve ; whereas each time its additional share is                       58.07 Chenille yarn (including flock chenille
 almost exhausted a Member State should draw a                                      yarn), gimped yarn (other than metallized
 further share, and so on, as many times as the reserve                             yarn of heading No 52.04 an^ gimped
 allows ; whereas the initial and additional shares                                 horsehair yarn) ; braids and ornamental trim­
 should be valid until the end of the quota period ;                                mings in the piece ; tassels, pompons and
 whereas this form of administration requires close                  • '            the like ;                      .           .
 collaboration between the Member States and the
 Commission, and the Commission must be in a posi­                     ' 58.08 Tulle         and   other   net  fabrics (but   not
 tion to keep account of the extent to which the quota                              including . woven, knitted or crocheted
 has been used up and to inform the Member States                                   fabrics), plain (a) ;             <
 accordingly ;        ,                                                    58.09 Tullej and other net fabrics (but not
                                                                                    including woven, knitted or crocheted
 Whereas if at a given date during the quota period a                               fabrics), figured ; hand or mechanically
 considerable quantity of a Member State s initial share                             made lace, in the piece, in strips or in
  remains unused it is essential, to prevent a part of the                           motifs ;                              "
 quota from remaining unused in one Member State                           60.01 Knitted or crocheted fabric, not elastic or
 while it could be used in others, that such State
                                                                                     rubberized .                 .
  should return a significant proportion thereof to the
  reserve ;                                     ■<
                                                                   2.         For the purposes of this Regulation :
  Whereas, since the Kingdom of Belgium , the
                                                                   (a) 'processing work means':
  Kingdom of the Netherlands and the Grand Duchy of
  Luxembourg are united in and jointly represented by                      – for the purposes of paragraph 1 (a) and (c) :
  the Benelux Economic Union, any transaction' in                               bleaching, dyeing, printing, flocking, impreg­
  connection with the administration of the shares allo­                        nating, dressing and other work which changes
  cated to that Economic Union may be carried out by                            the appearance or quality of the goods, without
  any one of its members,                                                       however changing their nature ;
                                                                        - – for the purposes of paragraph 1 (b) : twisting or
   HAS ADOPTED THIS REGULATION :
                                                                    i           throwing, cabling and texturizing, whether or
                                                                      ' •       not combined with reeling, dyeing or other
                                                                                work which changes the appearance, quality or
                           Article 1                                            finish of the goods, without however changing
                                                                                their nature ;
   1 . As from 1 September 1976 and until 31 August
   197^, a Community tariff quota of 1 870 000 units of            (b) 'value added' means : the difference between the
   account of value added shall be opened in the Euro­        ,          ' value for customs purposes as defined in Regula­
   pean Economic Community in respect of goods                              tion (EEC) No 803/68 ( ' ) at the time of re-importa-
                                                                            tion and the value for customs purposes as it
   resulting from processing work as provided for in the                    would be if the products were re-imported in the
   arrangement with Switzerland on processing traffic in                    state in which they were exported.               <
   textiles. Such quota shall be apportioned as follows : '
   (a) 1 520 000 units of account for processing work on            3.        Each portion as laid down in paragraph 1 shall
        woven fabrics falling within Chapters 50 to 57 of           be divided into two tranches, the first being allocated
        the Common Customs Tariff ;                         <       among certain Member States in accordance with
   (b) 123 000 units of account for twisting or throwing,           Article 3 and the second, being used to constitute a
      • cabling and texturizing (whether or not pombined             reserve which shall be common to the three categories
        with other processing work) of yarns falling within         of processing.
        Chapters 50 to 57 of the Common Customs
        Tariff ;                                     ,              ( i) OJ No L 148, 28. 6. 1968, p. I.
 ---pagebreak---                                                                              3
        4.       Within this tariff quota, the Common Customs             50 to 57 or for products falling within heading
        Tariff duties shall be totally suspended.                         Nos 58.04, 58.05, 58.07, 58.08 , 58.09 and 60.01 of
                                                                          the Common Customs Tariff.
        Within this tariff quota, the new Member States shall
        apply duties calculated in accordance with the rele­         2.     The second tranche which amounts to 230 000
        vant provisions of the Act of Accession.       /
                                                                     units of account shall constitute a Community reserve
                                                                     which may be used for the three categories of
    ;!                                   .                            processing.
                                 ,   Article 2
j       1 . The first tranche of each portion of the quota as                                 Article 3                      '
  !     laid down in Article 1 ( 1 ) shall be allocated as set out
  '     below among the Member States listed in the above
 j     arrangement ; the shares, subject to Article 6, shall be       In case of need, either in France in respect of the
j      valid from 1 September 1976 to 31 August 1 97! •              processing work referred to in Article 1 ( 1 ) (b), or in
                                                                     any of the new Member States in respect of any of the
I                 '      ■  •               ,                        categories of processing work, the State concerned
       (a) Germany :
                                                                     shall, to the extent that the reserve So permits, draw
               1 080 000      units  of    account, apportioned as   from such reserve a sufficient share of the quota.
               follows :
             '– 850 000 units of account for processing work                                  Artide 4
                    on woven fabrics falling within Chapters 50 to
                    57 of the Common Customs Tariff ;
                                                                      1.    If a Member State has used 90 % or more of one
             '•– 100 000 units of account for twisting or
                                                                     of its initial shares as fixed in Article 2 ( 1 ), or of that
                    throwing, cabling and texturizing (whether or
                                                                     share minus any portion returned to the reserve
                    not combined with other processing work) of
                                                                     pursuant to Article 6, it shall forthwith, by notifying
                    yarns falling within Chapters 50 to 57 of the    the Commission draw a second share, to the extent
                    Common Customs Tariff ;
                                                                     that the relevant reserve so permits, equal to 10 % of
             – 130 000 units of account for processing work          its initial share, rounded up as necessary to the next
                    on products falling within heading Nos 58.04,    whole number.
                    58.05, 58.07, 58.08 , 58.09 and 60.01 of the
                    Common Customs Tariff ;
                                                                     2.     If a Member State, after exhausting one of its .
                                                                     initial shares, has used 90 % or more of the second
       (b) France :
                                                                     share drawn by it, that Member States shall, in accor­
              520 000 units of account, apportioned as follows :     dance with the conditions laid down in paragraph 1 ,
                                                                     draw a third share equal to 5 % of its initial share.
             – 500 000 units of account for processing work
                    on fabrics falling within Chapters 50 to 57 of   3.     If a Member State, after exhausting its second
                    the Common Customs Tariff ;                      share, has used 90 % or more of the third share drawn
             – 20 000 units of account for processing work on        by it, that Member State shall, in accordance with the
                    products falling within heading Nos 58.04,       same condition, draw a fourth share equal to the third.
                    58.05, 58.07, 58.08, 58.09 and 60.01 of tbe
                    Common Customs Tariff ;                          This process shall continue to apply until the reserve
                                                                     is exhausted .
       (c) Italy :
              20 000 units of account, i.e. half for twisting or     4.     Notwithstanding paragraphs 1 to 3, a Member
              throwing, cabling and texturizing (whether or not      State may draw shares lower than, those specified in
             combined with other processing work) of yarns           those paragraphs if there are grounds for believing           »
              falling within Chapters 50 to 57 of the Common         that those specified may not be used in full. Any
              Customs Tariff, and half for processing work on        Member State applying this paragraph shall inform
           , products falling within heading Nos 58.04, 58.05,     , the Commission of its grounds for so doing.
              58.07, 58.08 , 58.09 and 60.01 of the Common
              Customs Tariff ;
                                                                                              Article i
       (d) Benclux :
              20 000 units of account for processing work on         Additional shares drawn pursuant to Articie 4 shall be
              threads and woven fabrics falling within Chapters      valid until 31 August 1977 »
 ---pagebreak---                                                                 - 4 -
                                Article 6                                 pursuant to Article 4 are opened in such a way thai
    The Member States referred to in Article 2 shall, not
                                                             r    :
                                                                          re-importation may be charged without interruption
    later than 1 June 1977 return to the reserve the ■>'
                                                                          against their accumulated shares of the quota.                    j
                                                                                                                                    »
    unused portion of their initial share which, on 15 May >
      1977, is in excess of 20 % of the initial volume. They              2.    Every Member State shall administer its shajra
    may return a greater portion if therfe are grounds for                by a system of prior allocation. It shall ensure that il
    believing that it may> not be used in full.'                          persons established in its territory involved in tht
                                                                          processing traffic have free access to the shares alio
    Member States shall not later than 1 June 1977 notify                 cated to it.
                                                                                                                                          !
    the Commission of the total quantities of the product
    in question re-imported up to and including 15 May                    3.    Thf extent to which a Member State has used U|
     1977 and charged against the Community quota and                     its shares shall be determined on the basis of the valu
    of any portion of their initial quotas returned to the '              added, as established when upon re-importation th
    reserve .                                                             products concerned are entered with the custom
                                                                          authorities for home use.
    -                      '    Article 7            -         ''
v 1' '                                              ' 5                                                            •                     !
    The Commission shall keep an account of the shares                                            Article 9                -           ir
    opened by the Member States pursuant to Articles 2, 3                                                                              ■j
    and 4 and shall as soon as the information reaches it,
    inform each State of the extent to which the reserve
                                                                          At the request of the Commission, the Member Stall
    has been used up.
                                                                          shall inform it of re-importations charged againi
                                                                          their shares.                                                J
    It shall, not lattsr than 3 June 1977, inform the
    Member       States   of   the   amounts      still  in     reserve
    following any return of shares pursuant to Article 6.                                         Article 10                          ?■
                                                                                                                                      h
    It shall ensure that when an amount exhausting this
    reserve is drawn the amount so drawn does not exceed                  Member States and the Commission shall coopent
    the balance available, and to this end shall notify the
                                                                          closely to ensure that this ' Regulation is compile
                                                                          with.
    amount of that balance to the Member State making                                      •   '            .                        "!
    the last drawing.                                                                                     •   •                      K
                                                                                                                         '           I:
                                Article 8                                                         Article 11                        fa
     I.    Member       States   shall   take     all   appropriate       This Regulation shall enter into force on 1 Septemb
    measures to ensure that additional shares drawn                     . l976 -,                                  . .              i
                   This Regulation shall be binding in its entirety and directly applicable in all Member
                   States.
        •                                     . .. 'A   .* : 'V     i'
                    Done at Brussels,
                                                                                       For the Council                             j,
                                                                                        The President                              !i
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