CELEX: 51978PC0269
Language: en
Date: 1978-06-19
Title: Proposal for a COUNCIL REGULATION (EEC) 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 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 269
Vol. 1978/0100
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(78)269 final.
                                                   Brussels , 19 June 1978
                               Proposal for a
                          COUNCIL REGULATION (EEC )
      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
               ( submitted to the Council by the Commission)
 COM(78 ) 269 final .
 ---pagebreak---                              EXPLANATORY MEMORANDUM
In an Arrangement . ooncluded with "the Swiss Federation on 1 August 19©9f-
the European Eoonomio Community undertook "to open an annual duty free / '
Community tariff quota of 1,870,000 units of aooount of added value on
various kinds of processing work for certain textile produots inoluded in t&4,
outward processing traffio of the Community t© Switzerland*                  ■ ■         .
                                                                       '      ■ +■ ' •* •
Under tho terms of the memorandum agreed at the time the Arrangement was                '•
made , this annual tariff quota is divided into three categories of pro– "
ceasing, "based on the quantities recorded under the former "bilateral agree.– ••
inents (ooncluded with Switzerland by France , Germany and Italy), Taut taking
into aooount the possibilities of oxtonding it to the Benelux countries *;..
On the basis «f that division the total quota amount of 1,870,000 units of. /•'
aooount io                 na followoi
a)             vmltd of account for procooaing 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, V
    tojeturizing (whethor or not oombined with ©ther processing work) of ymra«
    falling within Chapters 50 to 57 of tho Cwmmen Customs Tariff ;
o) 77|000 units of aooount for prooosoing work on artiolos falling withia'-. \
    headings 50*O4i 58 « 05 , 5&*07 « 53*08 , 58*09 and 60*01 of tho Common'
    CustociS Tariff.
   OJ No L 240/ 24 September 1969.
 ---pagebreak--- At the roquect of the Swiss authorities end so -that tne division, of the
whole quota, into 'tho -throe catssorioa of proooaoins referred to above should
"be "bettor related to the aotx^V movement 'ofs trade "during the reference year
which 6erved aa the basis for calculating the total amount of the quota and
 trade movocnonta during recent quota periods or foreseeable movements , it vas
 decided to make oortain transfers between the three quota amounts of
whioh tho f:> nal one was 1 50,000 u.a ., transferring from the figure alloca­
ted for procesainff work on artiolos (category C) to' that set aside for
processing work on woven fabrics falling within ChaptorD 5® to 57 - Simi­
 larly
    ^
        and
         –
              in order to allow Access to the4 tariff quota,  -
                                                                        it was decided that
the CoiiKiunity reoorves Ghould bo amalgamated and that in tnns way the new
recurve could cover all types of processing vo^k regardless of the cate­
gory they oomo undoi*.
       . • •• • f. .   •          .        . •   /•     .             •             ..      ,
Tho total quota n.-iovuit of 1 , o70,000 u.a. would be allocated among tho throe
categories as follows j'
- 1,(520,000 u.a , for processing operations on woven fabrios falling within
                                                      •                      »
   Chapters £0 to 57 of tho Common Customs Tariff :                                 •■    .
- 123,000 u.a. for processing operations on woven fabrioe falling within
   Chaptoya 50 to 57 of the CCTj
•- 227,000 u.a . for processing woyk on articles falling within headings
   53.04 to 60.01 of the CCT . subject to the setting up of a Community re~
   ecrvo of 2?.0,000 u.a, to bo drawn from tho above amounts , that is 160,000
   u.a., 13 . COO u.a , and - 57j000 u.a.reepootivoly.
          '•         '   ■• >. «•   -• t •     ,    •     » •   t ' r     y *
The question whether this Arrangement should continue beyond 31 August 1977
has been examined on several occasions , notably at the meeting of the Joint
EEC-Swiss Commission held on 3 November 1976, in regard to the quotas which
should be adopted thenceforth , account being taken of the fact that the
transitional period in the Free Trade Agreement concluded with Switzerland,
under which textile goods qualify for Swiss origin status by reason of the
processing work they have undergone and can enter futy~free , expires on
1 July 1977 .
 ---pagebreak---                                     3
     Until such time as the economic data required for calculating these
     quotas are available, it has been decided by common accord purely and
     simply to renew the currently open quotas for a transitional period,
     during which time the contracting parties will endeavour to obtain
     the required data .
     The data currently available do not yet permit a rough estimate to be
     formed of the size of the reduction to be made in the quota amounts .
     It is therefore proposed that the tariff quota opened for the period
     up to 31 August 1978 be renewed for a further year .
           i
5 . The annexed proposal for a Regulation therefore serves no other         t
    purpose than to open the tariff quota provided for in the Arrangement
     concerned for the period between 1 September 1978 and 31 August 1979 ,
     and to allocate it among the Member States along the lines set out in
     the Memorandum covering this Arrangement , account being taken of the        1
     changes occurring meanwhile and of the need to ensure that the new
     Member States share in the allocation of this tariff quota .
    Tho proposal for a Regulation onnoxed hareto provides for "the administration
    of tho quota by tho system of prior allocation and that the maxisvuza araount
    returned to tho reserve shall be 2C6& of the initial share * •
 ---pagebreak---                                                                                                             ΑϊϊΤΤΞΧ
                                                  Proposal for a
                             REGULATION (EEC)                      OF THE COUNCIL
              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                                 trade during future quota periods, it has been decided
COMMUNITIES,                                                 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
                                                             nity tariff quota in question should be opened for the
Having regard to the Treaty establishing the European        period I September 1978 to 31 August 1979
Economic Community, and in particular Article 113            according to the provisions laid down in the arrange­
thereof ;
                                                             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 • I August 196V the Community                     of the rate of duty prescribed for rite said quota until
concluded an arrangement 'villi Switzerland on               the quota is exhausted, to all goods re-imported irito
piocessing traffic in textiles ; whereas tinder that arran­  any of the Member States and which have received
gement the Community undertook to open on I                  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
                                                             on the basis of ( he amount of the traffic under the
(a) I ti.W 000 units of account for processing work on        previous bilateral agreements, but without precluding
     woven fabrics falling within Chapters 50 to 57 of        participation by Member States not previously
     the Common Customs Tariff ;                              involved in such traffic, among which the new
                                                              Member States arc included ; whereas, to safeguard the
(l>) 14.1000 units of account for the twisting or             Community character of the quota, provision should
     throwing, cabling and tcxturizing (whether or' not       be made to meet requirements which 'may arise in
     combined with other processing works) of yarn*           those Member States in the future permitting them to
     falling within Chapters 50 to 57 of the Common           draw adequate amounts from the Community reserve ;
     Customs Tariff ;
                                  «
(c) 77 000 units of account for processing work on            whereas to take account of future trends in the traffic
     products falling within heading Nos 58.04, 58.05,        in question in the various Member States, the total
  ' 58.07, 58.OK, 58.09 and 60.01 of the Common
     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 anil 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 1
 into tho three categories referred to above shall corres­    been exhausted and also, requirement!! which may
 pond more exactly with the actual movement of trade          arise in certain Member States in respect of processing
 during ihc reference year or during previous quoin           work for which no initial share of (he quota was alio*
 |H*riods os well as with the foreseeable movement of         cMed ; whereas in order to give the parties concerned
 ---pagebreak---                                                        - 2 -
     in each Mcmlvr 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 C^ommu-
     inly reserve of 2.10 000 units of account shall consist                58.04 Woven pile fabrics and chenille fabrics
     of amnunt> drawn from the allocations in respect of                             (other than terry towelling or similar terry
     each catci?' , i'y. that is 16'iOOO, 1 .1 000 and .57 000                       fabrics of cotton falling within heading No
- un'its ol rif'.-ount respectively ;                          /                ■ ' 55.08 and fabrics failing within heading No
                                                                                     58.05) ;
     VC herf.i ; the Member States' may exhaust their initial               58.05 Narrow woven fabrics, and narrow fabrics
     shares M ditferent rates ; whereas to avoid disruption                          (bolduc) consisting of warp without weft
    cl «uppiic.s on this account it should be provided that                          assembled by means /of an adhesive, other
    .my 1 Member Stale which has almost used up one of its                         . than goods failing within heading No
    initial sh.ircs should draw an additional share from ( he                        58.06 ;
    reserve ; whereas each liriie its additional share is
    almor>t exhausted - a Member State should draw a                        58.07 Chenille yarn (including flock chenille
' further share, and so on, as many times as the reserve                             yarn), gimped yarn (other than metallized
    allows ; whereas the initial and additional shares                ,              yarn of heading No 52.01 and gimped
    should l:r valid until the end- of the quota period ;                            horsehair yarn) ; braids and ornamental trim­
    whereat this form of administration requires dose                     <          mings in the piece ; tassels, pompons and
    colhboia'.ion between the Member States and the                •                 the like ;                     /.
    ComivwsMqn, ond 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 hern used up and to inform the Member States                                 fabrics), plain (a) ;
    accordingly ;
                                                                            58.09 Ttille - and other net fabrics (but not
    Whereas if at a given date during the quota period a                             including woven, knitted or crocheted
   considerable quantity of a Member State's initial share                           fabrics), figured ; hand or mechanically
    remains unused it is essentia!, to prevent a part of the                         made lacc, in the piece, in strips or in
   quota from remorning unused in one Member State                                   motifs ;
   while it could be used in others, that such State 1                  . 60.01 Knitted or crocheted fabric, not clastic or
  should return a significant proportion thereof to the                              rubberized.           <■ •'  .                :
   reserve ;
                                                                   2. For the purposes of this. Regulation :
  ■Whereas, since the Kingdom' of Belgium, the '
   Kingdom ol the Netherlands and the Grand Duchy of.              (a) 'proccssing work * mcans :
   lAixcnil/Ourg are united in and jointly represented by                  – for the purposes of paragraph I (a) and (c) :
  the Benelux Economic Union, any transaction in
  connection with the administration of the shares nllo-                         bleaching, dyeing; printing, flocking, impreg­
  cnted to that Economic Union may be carried out by                             nating, dressing and other work which changes
 nny one of its members,                                                         the appearance or quality of the goods, without
                                                                                 however changing their n.mire ;
                                                                               • for the purposes of paragraph I (b) : twisting or
  HAS ADOPTED THIS REGULATION :                                                  throwing, cabling and texturizing, whether or
                                                                                 not combined with reeling, dyeing or other
                               Article f                                         work which changes ( he appearance, quality or
                                         !        «                              finish of the goods, without however changing
                                                                                 their nature ;
        to     ,rom 1 September IV^ and until .11 August
   I V79, a Community tariff quota of I 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 Uconomic Community in respect of goods                             tion ( EEC) No 80.1/68 ( ') at the time of re-importa-
 resulting from processing work as provided for in the                    tion and the value for customs purposes as it
 Arrangement with Switzerland on processing traffic in                    would be if the products were re-imported in the
 tcxiilcv Such quota shall be apportioned as follows :                    state in which they were exported,
 (a) I <20 000 tmifo of account for processing work on
         woven fabrics failing within Chapters 50 to si of ■      .1.        Each portion as laid down in paragraph 1 shall
         the Common Customs Tariff ;                             be divided into two tranches, the first being allocated
                                                                 among certain Member States in accordance with
 (b) 12.1000 units of account for twisting or throwing,'         Article &- and the second, being used to constitute a
         cabling and texturi/.ing (whether or not (Combined      reserve which shall be common to the three categories
         with other processing work) of yarns falling within     of processing.
         ^•apters
         lariff ;
                     50 tu 57 of the Common Customs
                                                                 (') OJ No L MK, 2H. fi. | V6H,
 ---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 ol
                                                                        the Common Customs Tariff.
      5 . Reir,-.ports of products resulting from
this processing work may not be charged to                         2. The second tranche which amounts to 230 000
the tariff quota if they are already free                          units of account shail constitute a Community reserve
of customs Huti®s unH®r other preferential                         which may be used for the three categories of
tariff arrangements .                                              processing.
                                  Artide 2
      1.     The first tranche of each portion of the quota as                              Article 3
     laid down in Article I ( I ) shall be allocated as set out  (
     below among the Member States listed in the above             In case of need, either in France in respect of the
     arrangement ; the shares, subject to Article 6, shall be      processing work referred to in Article I ( 1 ) (b), or in
     valid from I September 197 8to 31 August 19^9 » .             any of the new Member States in respect of any of the
                                                                   categories of processing work, the State concerned
     (a) Germany :                                                 shall, to the extent that the reserve so permits, draw
                                                                   from such reserve a sufficient share of the quota.
           I 080 000        units of account, apportioned     as
           foilows :
           »– 8.M) 000 units of account for processing work                                 Article 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 notifyin .,
                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 I ,
                                                                    draw a third share equal to 5 % of its initial share.
           – 501)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
                ti»e 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 .
                 5 !« .05, 58.07, 58.08 , 58.09 and 60.01 of the
                 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 I 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, 58.0V and 60.01 of the Common
           Customs Tariff ;
      (ci) Hcnclux :                            •                                            Artide J
           20 000 unity of account for processing work on           Additional shares drawn pursuant to Article 4 shall be
           threads and woven fabrics falling within Chapters        valid until i \ August 1V79 #
 ---pagebreak---                      ¿          Anide 6                                  .            pursuant to Article 4 are opened in such a way that
                                                                                      re-imporutiort may be charged without interruption
 The Member Staffs referred to irt Article 2 shall, not                               against their accumulated shares of the quota.
  later than lJuly- • 97?- return 10 ,lvr r«crve thc
  unused portion of their initial share which, on 15 Junt'                             ?.. Every Member Slate shall administer its shares
  1979 js in excess of 20 % of the initial volume. They                                by a system of prior allocation. It shall ensure that all
  may return - a greater portion if there arc grounds for                              persons established in its territory involved in ,'he
  believing that it may not be used in full.                                           processing traffic have fr^e access to the shares allo­
  Member States shall not later than 1 July 1979 notify .                              cated to it.
  the Commission of the total quantities of the product
  in question re-imported up to and including 15 Juni                                  3.     Th£ extent to which a Member State has used up
  19# and charged against the Community quota and                                      its shares shall be determined on the basis of the value
  of any portion of their initial quotas returned to the                               added, as established when upon re-importation the
. reserve.                              . ■  •   ' .                       1   1       products concerned are entered with the customs
                                                                                       authorities for home use.                      .. .
                                 Arîkie 7
  The Commission shall keep an account of the shares                                                             Artide , 9       : .
  opened by the Member States pursuant to Articles 2, 3
  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 States
                                                                                        shall inform it of re-importations charged against
  lias been used up. .                         '                                        their slures,
  it shall , not Untr than 5 July 597.9, inform the
  Member States            of   the    amounts         stili    in    reserve
  following any return of shares pursuant to Article 6.                                                        s Artide IO       \
                                                                                                                                 *           i
  It shall ensure that when an amount exhausting this --                                Member States and the Commission shall cooperate
  reserve is drawn the amount so drawn does not exceed
  the balance available, and to this end shall notify the
                                                                                        closely to ensure that this ' Regulation is complied
                                                                                     ' with.                                    '
  amount of that balance to the Member State making
  the last drawing. .                                       * , .             - . 1 4   \
                                                                                    i ''
                                                                                                                 Αηίίίϊ Π
                                 Artide 8
                                                     » .   •
   l . . Member States ' shall              take          aU    appropriate             This Regulation shall enter into force on 1 September
  measure* to ensure that additional sh ares drown                                       197 8.               "               'i
                     This Regulation shall be binding in its entirety and directly applicable in all Member
                     States.                             . '                        , i •                                \
                         • *
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