CELEX: 51976PC0706
Language: en
Date: 1976-12-23 00:00:00
Title: RECOMMENDATION FOR A COUNCIL REGULATION concluding an Agreement between the European Economic Community and the Republic of India on Trade and Commercial Cooperation in Jute Products (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 706
Vol. 1976/0209
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                       COM(76)706 final.
                                       Brussels . 23 December 1976*
                 RECOMMENDATION FOR A COUNCIL REGULATION
            concluding an Agreement between the European Economic
            Community and the Republic of India on Trade and
            Commercial Cooperation in Jute Products
           ( submitted t» the Council by the Commission)
 CCM(76) 706 final .
 ---pagebreak---                           EXPLANATORY 1OM0RANIXJM
1 . By a decision of 20 January 1976 "the Council authorized the
Commission to open negotiations with India for the conclusion of
an Agreement on trade in jut© products .
2 . Pursuant to this decision and in consultation with the Article 113
Committee , the Commission held negotiations with India on
1 , 2 , 5 and 6 April and from 28 June to 1 July 1976 .
3 . Following these negotiations a draft Agreement was drawn up,
the main provisions of which are as follows :
      (i ) India will continue voluntarily to restrict its exports to
            the Community of certain jute fabrics to agreed levels
             (categories 4 » 5 and 7 ) 5                                   v
     (ii ) the establishment of a consultation procedure in respect of
            jute fibres (category 6 )* which are not subject to import
            restrictions , to enable such restrictions to be introduced
            under certain conditions ;
   (iii ) provisions to ensure flexibility in the quantitative limits
            fixed (carryover , advance delivery and transfer);
     (iv) continuation of a programme of progressive suspension of
            CCT duties which the Community is carrying out as part of
             its offer regarding generalized tariff preferences for
            the products in question ( the duty which is currently
             reduced by 50$ or 60$ will be reduced by 80$ on
             1 January 1977 and by 100% (total exemption) on 1 July 1978 .
             In the case of jute fibres , however , duties will be
             suspended entirely on 1 January 1977j and the total exemption
             already in force in the United Kingdom and Denmark will
             continue to be applied .
       (v) assurances by India that it will provide on non-discriminatory
             terms the jute products necessary to supply the Community
             market and industry ?
      (vi ) definition of the terms of reference of the Joint Cooperation
              Committee with a view , inter alia , to examining the
              possibilities and formulating suggestions regarding research
              and development cooperation in the production and use of the
              products in question .
  After establishing that the draft Agreement conformed with the outcome of
  the negotiations , the Heads of Delegation initialled the text on 2 July 1976®
  4 . The Commission considers the draft Agreement in question an acceptable
   result for the Communityo It recommends that the Council conclude this
  Agreement by adopting the regulation of which a draft is annexed hereto .
   A
     An earlier Agreement concluded between the Community and India
     ( cf . OJ L 82 , 24 March 1974 ) on the same products expired on
     31 December 1975®
 ---pagebreak--- An. Exchange of Uotes Yerbales in which the two parties have agreed
to the de facto application of the provisions of the Agreement pending
the completion of the procedures necessary to its formal entry into
force is also annexed .
 ---pagebreak---              RMJOMMENDAH OH FOR A COUNCIL REGULATION
       oonc luding an Agreement "between the European Economic
       Community and the Republic of India on Trade and
       Commercial Cooperation in Jute Products
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 Recommendation from the Commission ,
Whereas the Agreement on Trade and Commercial Cooperation in Jute
Products negotiated between the European Economic Community and the
Republic of India should be concluded ,
HAS ADOPTED THIS REGULATION :
                           Article 1
The Agreement between the European Economic Community and the
Republic of India on Trade and Commercial Cooperation in Jute
Products , the text of which is annexed hereto , is hereby concluded
on behalf of the European Economic Community »
                           Article 2
The President of the Council shall notify the other Contracting
Party of the completion by the Community of the procedures
necessary for the entry into force of the Agreement .
                           Article 3
This Regulation shall enter into force on the third day following
its publication in th® Official Journal of the European Communities «
Done at Brussels ,
                                           For the Council
                                           The President
 ---pagebreak---                                Α α. Β Ε Ε Μ Ε Ν Τ
             the Earop.'sas Ee@ao®ic CoBaiunity a&d th« Bepufelie ®f IM1&
   ©a trad® ®a&                ©©operation in Jut® product®
   THE COUNCIL OF THE X730FZAM COMMUNITIES ,
                                                    oz the ena part ,
   and
   fl$ GOVERNMENT 07 TEE REPUBLIC Of INDIA
                                                    of the other part ,
          DESIROUS ©f ©nsurlag an increasing use of jute products &nd
    the orderly development of trade la these product® between the
    European Economic Comsarasity, hereinafter referred to as "t&®
    Cosraranity^ sad India?
          EAVTF8 SEG&HD to the Commercial Cooperation Agreement batwaan
    the Republic of India md the Comrmmity,
          NOTXFS the Joint Declaration of Intent on the development of
    xrade relations with Ceyloa (now Sxi Lanka), India, Malaysia,, Pakistan
    (now Bangladesh and Pakistan) end Singapore , annexed to - the Pinal
    Act of the Treaty of Accession of the Kingdom of Denmark, Ireland, the Eixy
    dose of Norway md the United Kingdom of Great Britain and F©rth®:w®,
    Ireland to the EarepeM Eeoaomio Commaity and the Baropaaa Atcaio
    Energy Community, of 22 January 1972 ,
          COJSSCIOOS of the provisions ©f the General Agreement on Tariffs
    and Trade ,
          BELIEYIHG that it is necessary to encourage and facilitate
    contacts end cooperation between their respective jute intareeta,
           STRESSING tha aead for promoting cooperation is raeearoh and
     development in the jut a aactor,
           HAVE DB0IPED, in & spirit et rnrtual eo?pera*i9nv *o oflnolvd#
     this A^r«3JT-enta                                               //
\C                                                                 <      . τ
 ---pagebreak---                          Article 1
       This Agreement shall apply to manufactured jute products ,
originating in and coming from India , as defined in Annex A ,
 ---pagebreak---                            Article 2
       for the duration of this Agreement and vithin the framework
of its offer on generalized tariff preferences , the Community shall
apply autonomously to manufactured jute products originating in
and coming from India , the duties of the Common Customs Tariff sus­
pended ia accordance with the rate® and timetable set out in Annex B.
 ---pagebreak---                             Art-iole 3
1.     The Community shall not subject imports of products defined
under Article 1 to new quantitative restrictions .
2.     As a first step in the direction of eliminating in stages re­
maining quantitative restrictions * the Community shall suspend the
existing quantitative restrictions on the imports of the products
defined in Annex C provided that the Government of India applies
such measures as are necessary to keep its exports within the quanti­
tative limits set out in this Annex .
3.     If additional demand should arise on the Community market ,
Community will not object     the^se quantitative limits being in­
creased on the understanding that the additional quantities shall
be determined on the basis of mutual agreement between both Parties *
Jf .   Quantities of the quota shares set out in Annex C not taken up
by a Member State of the Community may be used in another Member State ,
within the limits and in accordance with the procedures in force in
the Community . The Community undertakes to reply to any request for
M-allocation made by India within four weeks of its receipt .
                                                           /
 ---pagebreak---                            Article H
       The Community shall not eubject imports of jute yarn to quan­
titative restrictions . However , the Community may , when in its view
the conditions prevailing in the Community or in any of its markets
are such that a limitation on further trade may be necessary , request
consultations with India , provided that the level of imports into
such region of the Community market has exceeded the indicative level
indicated in Annex E, and provided further that the request for such
consultations is accompanied , within a reasonable period of time ,
by a statement of the market conditions in the Community or in the
region of the Community concerned . Until such time as a mutually
satisfactory solution has been reached , India undertakes , if so re­
quested by the Community, to limit the issue of export licences for
jute yarn to the Community, or to the region or regions of the Commu­
nity market concerned, at the level* indicated by the Community.
                                                             L,
 ---pagebreak---                             Article 5
 1.     Imports into the Community of jute products covered by this
Agreement which are intended for immediate re-export from the Com­
munity or for processing and subsequent re-export outside the Com­
munity shall not be subject to the quantitative limits established
by this Agreement . The Community authorities shall ascertain , under
the administrative system of control in force for this purpose
within the Community , the quantities of jute products imported from
India which are immediately re–exported or processed and subsequently
re-exported from the Community , and inforn the Indiana, authorities
thereof *
2.      In any case where the competent authorities within the Commu­
nity ascertain under the administrative system of eontrol in force
that imports of ju-te products covered by this Agreement have been
charged against the ceilings established under this Agreement but
have subsequently been re-exported from the Community , the authorities
concerned will inform the Indien authorities of the quantities in­
volved and will authorise imports of the same quantities which shall
not be charged against the ceilings fixed by the Agreements
                           the
3.      In any case , where Community authorities ascertain that the
imports referred to in paragraph 1 have been retained for consumption
within the Community , the latter will notify the Government of India
 on a quarterly basis of the amounts involved .. In such cases the Govern­
 ment of India shall ? at the request of the Community , charge such
 amounts against th® quantitative liait or limits in question for the
'current year*                                                A
 ---pagebreak---                           Article 6
1„     Within any on© Agreement year , the unused portions of one of
the quantitative limits established under this agreement in respect
of any region of the Community Market may be transferred to another
quantitative limit established for the same region ©f the Community
market as follows
       from the category h/3 to the category 7 , and vice- versa
       provided that the quantities involved do not exceed 20 %
       of the quantitative limit to which they are transferred .
2.     Unused quantities , not exceeding 10 % of one annual ceiling ,
may be carried over and added to the ceiling for the following year#
3»     Each annual ceiling may be exceeded , up to a limit of 10 % of
its total , in anticipation of the ceiling for the following year-
if .   The above flexibility provisions must not , in any single given
Agreement year , result in any ceiling being exceeded by more than 2Q %,
5.      The provisions of the preceding paragraphs shall only be applied
by India following written notification to the Community by the Indians
authorities .
 \Λ
 ---pagebreak---                           Article 7
1.      The agreed quantitative limits shall be administered using
a system of double checking the details of which are set out in
Annex D , subject to such changes as may be mutually agreed upon
in the Joint Cooperation Comittee set up in Article 10 .
2.      India undertakes to inform the Community , on a quarterly basis
of the total quantities covered by export authorisations issued by
the Indian authorities for all the jute products referred to in Ar­
ticle 3 and , where appropriate , in Article
3.      Similarly the Community will inform the Indian authorities ,
on a quarterly basis , of the total volume of imports into the Community
p£-^the products in question*                               Ij
 ---pagebreak---                            Arti©!® 8
     1 , The implementation of this Agreement shall not disrupt the
normal trad® ch &nsi®!® between India s_ad the Community .
     £. Should one of the Parties inform the other that special diffi­
culties hare arisen in this connection , the two Parties shall consult
each other , within the framework of the Joint Cooperation CJitttt8e t
in order to determine the measure® neeessary to remedy th® situation®
 ---pagebreak---                             Article 9
         Without prejudice to the policies of the Government of India
concerning the regulation of its exports according to the production
situation and the external demand for the above mentioned products ,
India undertakes to take appropriate steps to ensure that the needs
of the Community market and industries are met in a nondiscriminatory
manner .
 ---pagebreak---                                 Article 10
<j ,       A Joint Cooperation Committee shall b© set up and entrusted
with the following tasks ?
           » to arrange consultations promptly at the request of either
              Party on any matter concerning thj@& trade    jut® products
              in a spirit of cooperation ?
           - to examine any problem which may arise as a result of the
              implementation of this Agreement , including the perspectives
              in the light of the economic situation in the Community' a
              jute sector , for the elimination in stages of quantitative
              restrictions ;
              to examine ways and means of increasing and diversifying
              the end-uses of jute products , including studies of the
              experience of other markets in this regard ?
           - to investigate possibilities , and formulate suggestions for ,
              cooperation in regard to research into and development of ,
              the production and use® of jute products ;
            - to develop contacts between , and facilitate joint projects
              and programmes mutually agreed upon by , representatives
              of the jute trade and industries of both India and the
              Community .
 Z»         The Joint Cooperation Committee shall be composed of repre­
 sentatives of the Republic of India and the Community,
 3»         The Joint Cooperation Committee shall be convened y§t|&n the
 request of either Contracting Party and , in any case , at least once
     y®ar -                                                   /}
 ---pagebreak---                             Article 11
         This Agreement shall enter into force on the first day of
  the month following the date on which the Parties notify each other
  that the procedures necessary for this purpose hare been completed ,
  and shall apply from 1 January 1976 . It shall remain in force until
  31 December 1979 *                                       $
<\37
 ---pagebreak---                   Article 12
Th« Annexes form &a Integral part of this Agreement ,
 ---pagebreak---                               Article 13
           This Agreement has been drawn up in two copies in the Danish ,
   Dutch , English , French , German , Italian and Hindi languages , each
   text being authentic .
 , Cone at                                   on the       j
,\y                                                      h
 ---pagebreak---                                                        MSE3C A
                                                      («■Mneuaar^iyMWSwan»
         Definition of categories of jut© products covered by Article 1
Category    1        Jute fabrics weighing mors than 50® g/w2 and of a
                     width of not more than 150 cm , and jut© bags of
                     fabric weighing more than 500 g/m2 .
Category    2        Jute fabrics weighing not less than 310 g/m2 "but not
                     more than 500 g/m2 , and of a width of not more than 150 cm ,
                     and jut© bags of fabrics weigMng not less than 310 g/m2
                     "but not more than 500 g/m2 .
Category    3         Jute fabrics weighing less than 310 g/m2 and of width of
                     not more than 150 cm f and jute bags of fabric weighing
                      less than 310 g/m2 .
Category    4         Jut® fabrics of a width of more than 150 cm bat not more
                      than 230 cm, irrespective of their weight per m2 f other
                      than those referred to in category 7 *
Category     5        Jute fabrics of a width of more than 230 cm, irrespective
                      of their weight per ®2 t other than those referred tc in
                      category 7®
 Category    6        Jute yarn^s
 Category    7         Jute fabrics ( T ) , bleached , dyed or printed , either who
                      or in part ,, of a." width       more than 150 «cm»ir «espectiv
                       their weight per m2 »
( 1 ) With no patent selvecgaa at any internal throughout <>,>«,/© 0 ®
      the width of the cloth                                               i
 ---pagebreak---                       9
                             Tariff ffospension& cew®y©& 'by As-tiel® 2
CCT Heading                                 -1 .  ,       , Pate of redaction to be
   N®                          Description of goods                a . 1.1.1977 - 1.7.12?8
        Yam of jute or of other textile "bast                            100 >     ~
           fibres of heading Ko 57*03
        Woven fabrics of jute or of other textile
           "bast fibres of heading No 57«03
            A. Of a width of not more thaa 150 cm
                and weighing per m2
                I.      Less than 310 g                                   80 %       100^
                II. Not less than 310 g But not mom              _        %(%        100,
                        than 5°0 g
                III . More than $00 g                                     8c$fo      100£
            £. Of * width of more than, 150 em                            BC&          100%
         S&tfks and bags of a kind used for the packing
            of goods
            A. Of jute or of other textil® 'feast fibres
                 of heading Ho 57® 03
                 II .    Other
                         (a) Of fabrics weighing less thaa
                              310 g/rs2                                   BO$   '     100 £
                         (b) Of fabric weighing not lees
                              thnn 210 g/ra2 but not sore than
                              500 g/r.2                                    "         "
                         (c ) Of fabric weiring aore than.
                              500 g/z2                                      "        w
    Ί
              7r.e Coaarunity hereby undertakes to continue to suspend customs duties or.
              ic^orts of packaginc materials , in aceordarxe with the provisions ©f th®
              Custoas C©as,v®ati©3& on teaporaarar impart® @f paoki'Ag
                                                                                L         β β Φ/ β © Ο
 ---pagebreak---                                                                                                       ANNEX C
      Products for which India wi It exercise restraint towards the Community
      from the entry into force of this Agreement .
      The Community hereby notifies India that the quantitative limits for the jute
      products mentioned below will fee allocated between the Member States as follows
      Categories 4/ 5                                                   Quantitative limits                 (Metric tons )
        Member
                                        1976                                                   197®
         State
                                                                                197?
                                                                                                         |       1979
         BWL                      k.5k7                                       4*569          4.592              4.615
         DK      !                         696                                   698             701               705
                 I
         F
                 j                         825                                   940          1.083             1c 224
        FRG                        1.820                                       2.058          2.332             2.607
         IR1                                500                                  700              800           1.000
                                            3^8                                  402              462               437
         I
          UK                         1.450                                     1.600          1.800             1 . V90
               1
         EEC                    10.186                                        10.967        1 1 . 770          12.628
               |
               I
                   TfflnMBrri ii H i I ttìiihii I 11 HUiiiiirFiBfflTTrB
, ν /
/
 7                                                                                                             L,
 ---pagebreak---                                                              ANNEX C
                                                             P- 2
Products for which India wilt exercise restraint towards the Community from
the entry into force of this Agreement-
The Community hereby notifies India that the quantitative limits for the jute
products mentioned below will be allocated between the Member States as follows
Category 7               Quantitative limits                     ( Metric tons )
 Member
                 1976               1977             1978               1979
  State  •
    BNL           586                589              592                595
    DK            17 *               175              176                m
    F             185                205               227               $51
  FRG             * 55               490              530                571
    IR1            100               MO               170                200
                    93                                108
                                      97                                 117
    UK             350               3 90              430               4 80
    EEC
                1.943               2,086           2.2 33            2,391
 ---pagebreak---                                                                             Α Ν Μ £ Χ    0
                      Syafcea of doubl© ehacking deferred to in Article f
  I.a tbi» Community, the complect auhtorities shall accept , without delay,
  imports of products listed in Article 3 of this Agreement upon producti 025
  of the importer 's request together with the original copy of tha export
  permit ( l )»
  'Fee competet Indian authorities naiwll issue export permits for all the
  products listed in Arsicle 3 of this Agreement within the quantitative- limits set
 out in inneac C ( and in any case where the 'provisions of article 4- bare been inv«kd&) 9
  The export permit must mention ?
  ( a) the destination, ( relevant Momber State)
  (h )       the sériai number ,
  ( c)       the name and address of the importer ,,
  ( d)       the name and address of the exporter ,
  (e)        the net weight ( in kilogrammes or metric tons ) and the value t
  (f )     the category and the classification of the products ,
  ( g)      'the certification issued "by the authorities stating that the quantity has "been d<
            lilted against the agreed quantitative limits for export to the Community
             ( relevant Member State ) or , where appropriated is for immediate re-eaporfc
             or for inward processing and subsequent re-export outside the Community *
 In the Community, the oompeteat authorities shall accept , within reasonable
 limits , differences between the weight as stated in the export permit and the
 cargo weight or the imported weight® The competent Indian authorities shall
 however endeavour to reduce such discrepancies to a minimum*
 The competent Indian authorities shall notify the competent authorities in
 t-he Community of ©ay withdrawal , or part withdrawal , of an export permit * Thai
 latter shall , within the context of the administrative regulations governing
 snofa matters j take appropriate steps*
 The competent Indian authorities ehall forward every . three months to '.he com­
   petent authorities in the Community , tfia the Commission , a summary ov the
   export permits issued . These summaries shall, state , for eve »*y at&yyy of
   product , the ret we'ght tn -metric tuns of t-he authorized exports , . their as­
   signment to the various cei lints a.-»d . the Member - States of the Community to
   tfbich the goods Jiav.® been cor.sig'ne-J.      '         -   •      • - « - , ".* '~'v
   The competent Community authoi ities shall forward every three montr-s to the
   competent author ities - in India , via the Mission of India to the European
   Economic Community iri Brussels a summary of the most recant figures avai labte
   for imports of products covered by this Agreement .
   f i ";, wh»re import licences are required -under the regulation in fores in one
            or j?iher Vembtf S&ate ^ - such licences shall -be issued automatically or,
            de»ar,ti> within a Hmi teii dumber of eays »                           fl
■}                                                                                /
 ---pagebreak---                                                      AüNEX £
  Indicative levels for tag imports of .jute yarn with reference
  to article 4 of the Agreement
                                                  Metric tons
               Bénélux                                  640
               United Kingdom                           240
   r
                                                       I
J
 ---pagebreak---                                                              ANNEX  F
                           JOINT DECLARATION
        The Contracting Parties agree to make a special
 effort to fulfil the tasks set out in Article 10 of the
 Agreement .   To this end they will :
    a ) encourage and facilitate contacts between Indian
        and Community jute interests , in particular
        through
          - annual review and monitoring meetings
              between the industrial and commercial
              interests of the two sides ;;
           - exchange of delegations ;
              the formulation and execution of joint
              promotion and publicity campaigns 5
    b ) examine the possibility of providing support
        for any programmes or projects jointly recommended
        by the jute interests of the two sides as likely
        to be of mutual benefit to these interests ;
    c ) to consider modalities          to facilitate  . contacts and
        cooperation between the Indian Jute Industries Research
        Association and int erest ed European research. institutes    and
         examine - the possibility " of providing support for any
    \   specific projects jointly drawn up or recommended by thc-5 .
    V
                                                               c
j\y