CELEX: 51974PC0677
Language: en
Date: 1974-05-16
Title: DRAFT REGULATION (EEC) OF THE COUNCIL on the opening, allocating and administration of a Community tariff quota for raw silk (not thrown) falling within heading No 50.02 of the Common Customs Tariff for 1975.#DRAFT REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for yarn entirely of silk, other than yarn of noil or other waste silk, not put up for retail sale, falling within heading No ex 50.04 of the Common Customs Tariff for 1975.#DRAFT REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for yarn spun entirely from silk waste other than noil, not put up for retail sale, falling within heading No ex 50.05 of the Common Customs Tariff for 1975. (submitted to the Council by the Commission)

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DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 677
Vol. 1974/0107
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(74)677 Final
                                                        Brussels , 16 May 1974
                                    DRAFT
                       REGULATION ( EEC ) OF THE COUNCIL
  on the opening , allocating and administration of a Community tariff
    quota for raw silk ''(not ^thrown) falling within heading No 50.02
                   of the Common Customs Tariff for 1975 »
                                    DRAFT
                       REGULATION ( EEC ) OF THE COUNCIL
  on the opening , allocation and administration of a Community tariff
      quota for yarn entirely of silk , other than yarn of noil or
          other waste silk , not put up for retail sale , falling
             within heading No ex 50.04 of the Common Customs
    ■  "                       Tariff for 1975
                                    DRAFT
                       REGULATION ( EEC ) OF THE COUNCIL
   on the opening , allocation and administration of a Community tariff
         quota for yarn spun entirely from silk waste other than noil ,
           not put up for retail sale , falling within heading No ex
              50.05 of the Common Customs Tariff for 1975 »
               ( submitted to the Council "by the Commission )
 C0M(74 ) 677 Final
 ---pagebreak---                        EXPLAÏÏATORY MEMORANDUM
Following the review of "the problem of silk within the Community , provided
for in Protocol Ho VIII annexed to the Rome Agreement of 2 March i960
relating to list G , the Council passed a Resolution at its meeting of
29-31 May 19&7 which provides , in particular , that , with effect from 1
January 1970 :
II
2 . On expiry of the transitional period referred to in Article 8 of the
     Treaty, the Council , acting on the' "basis of Article 28 of the Treaty,
      shall decide that until 31 December 1976 "the suspension of the Common
      Customs Tariff duty which is provided for in Protocol No VIII shall not
     "be applied#  In order to enableuser industries to cover their require­
     ments from the world market , the Council shall at the same time open a
     nil-duty Community tariff quota for the period up to 31 December 1976 *
     The amount of that tariff quota, to be fixed by the Council each year ,
      shall correspond to the difference between the total consumption of raw
      silk and the amount produoed in the Community .
3 * Together with the decision concerning the non-application of the tariff
      suspension referred to in paragraph 2 above , the Council shall decide
     that during the period in which the tariff suspension referred to in
     paragraph 2 is not applied , silk yarn (tariff heading No 50.04-) and
     yarn spun from silk waste other than noil (tariff heading Ho 50*05 )
      shall be subject not to the reduced duties indicated in Protocol Ho IX ,
   . but to the Common Customs Tariff duties at the normal rates provxbd for
      each case . At the same time the Council shall , for the same period ,
     open reduced or nil duty Community tariff quotas if there are changes
     in supply sources or insufficient supplies within the Community which
     could have a prejudicial effeot on Member State processing industries#
   •          II
Since that time Protocol Hos VIII and IX annexed to the Rome Agreement
relating to list G , which were the basis for the aforesaid Resolution, have
 ---pagebreak--- "been revoked "by Article 49 of the Aot of Accession , However , the
Resolution itself is still in force and the economic object which
 it aimed to achieve undoubtedly remains valid .      The tariff quotas
 in question should therefore he opened for 1975 and, since on 1
 January 1974 they effected their first alignment of national duties
 on those of the Common Customs Tariff, the new Member States should
 share in those quotas .                           .     •
                                  !   ' • * /
As regards 1975 » "the problem of raw silk and of the two types of yarn has
                         s
been re-examined by the Commission departments . The results of this
 examinât ion are as follows s
                                /
– Raw silk ( not throvm )
   For several years , Community production has been falling constantly.
        I   • •
   Thus , according to present estimates , in 1975 Community production will
   not exceed some 200 metric tons . As for consumption, there axe no
   reliable statistics which could be used to determine the amount of the
   1975 quota .    It has therefore been necessary to make use of the
   estimates concerning import requirements submitted by the Member States , which
   amount to a total of 2 500 metric tons for 1975 » which figure has been
   adopted for the tariff quota .
– Silk yarn and .yarn spun from silk waste other than noil , entirely of silk
   The yarn in question is of certain very specifio qualities , which are
   classified under tariff heading Hos 50.04 and 50.05 , but for which no
   statistical subdivisions have been created .      In the absence of statistics
   on this yarn it has been necessary for the purpose of determining the
   amounts of the quotas to make use , as in the case of raw silk, of the
   estimates concerning imports requirements submitted by the Member States .
   Total requirements for 1975 amount to 60 metrio tons of silk yarn and 220
   metric tons of yarn spun from silk waste other than noil , which figures
   have been adopted for the tariff quotas .
   These results were approved by the government experts at the meeting held
   on "16 ; April 1974 *
                                                                     • • •/• • •
 ---pagebreak--- As regards quota duties , the Commission is in possession of no informar-
tion which would lead it to alter the 1974 rates of duty f i.e. 2»5 /& for
silk yarn and ifo for yarn spun from silk waste other than noil ; the
Resolution itself provided that raw silk should be free of duty .
 ---pagebreak---                                                                                                               ANÏÏEX A
                                                             TO VFT
                                          REGULATION .(EEC ) OP THE COUNCIL
              on the opening, allocating and administration of a Community tariff quota for raw silk
              (not thrown) falling within heading No 50.02 of the Common Customs Tariff for 1975
THE COUNCIL OF THE EUROPEAN COMMUNITIES, .                   light of the principles outlined above appear
                                                             consistent with the Community nature of the quota;
Having regard to the Treaty establishing the
European Economic Community, and in particular             , Whereas in view of these factors the initial percentage
Article 28 thereof :              '             ,   •
                                               /             shares in the quota volume can for 197-5" be expressed
                                                              approximately as follows :
Having regard to the draft Regulation submitted by
the Commission :
                                                                            Bénélux                 0.25 ....
Whereas, in accordance with the Resolution passed at                        Denmark              .. 0.25
its meeting of 29 to 31 May 1967, the Council, by its
Regulation (EEC) No 321 /70 (' ), reintroduced until                         Germany              10.50
31 December 1976 the 10 % autonomous duty of the
Common Customs Tariff for raw silk (not thrown)                              France               37.50 ~
falling within heading No 50.02; whereas the
conventional duty for that product is 5 % ;                                  Ireland    ■ •         0.25
                                                                             Italy                45.00
Whereas the resolution aforesaid further provides for
the opening, in respect of that period and for that                          United Kingdom         6.25 ;
product, of annual Community tariff quotas exempt
from customs duties ; . whereas the amount of those
quotas should correspond to the difference between
the total consumption of raw silk and the amount              Whereas, to take account of future import trends for
produced in. the Community:                                   the product under consideration, the total quota
                                                              to give importers some degree of certainty the first
                                                              being allocated and the second held as a reserve to
Whereas raw silk is produced in the Community and             cover at a later date the requirements of Member
whereas it is in the Community's interest to maintain         States who have used up their initial share ; whereas
this production on its territory; whereas that                to give importers some degree of certainly the first
production can be estimated at 200 metric tons for            tranche of the Community tariff quota should in the
1975 ; whereas taking account of this production and          event be fixed at 80% of the total quota;
of the forecasts for 1975, the imports needed to
satisfy consumption within the Community can be               Whereas the initial shares may be used up more or
estimated at 2 500 metric tons ;                              less quickly; whereas, therefore, to avoid disruption
                                                               of supplies any Member State which has almost used
                                                              up its initial share, must draw a supplementary share
Whereas equal and continuous access to the quota               from the reserve; whereas this must be done by each
should be ensured for all Community importers and              Member State as each one of its supplementary shares
the rate of levy for the tariff quota should be applied        is almost used up and as many times as the reserve
consistently to all imports of the product in question         allows ; whereas the initial and supplementary shares
 until the quota is used up ; whereas utilization of the       must be valid until the end of the quota period;
Community tariff quota based on an allocation                  whereas this form of administration requires close
between the . Member States concerned would in the             collaboration between the Member States and the
                                                               Commission, and the Commission must be in a
                                                               position to follow the extent to which the quota
                                                               volume has been used up and inform the Member
 (') OJ No L 43, 24. 2. 1970, p. 2.                            States thereof;
 ---pagebreak---                                                   - 2 -                                        A1TÎIEX A
  Whereas if, at a given date in the quota period, a                                Article 3
  considerable quantity is left over in a Member State,
  it is essential that such State should return a
  substantial proportion to the reserve, to prevent part   1.    If 90 % or more of a Member State's initial
  of the total quota from remaining unused in one         share specified in Article 2 (1 ) or of that share minus
  Member State while it could be used in others;          the portion returned to the reserve where Article 5 is
                                                          applied, has been used up ; that Member State shall
  Whereas since the Kingdom of Belgium, the Kingdom       without delay, by notifying the Commission, draw a
  of the Netherlands and the Grand Duchy of               second share, to the extent that the reserve is
  Luxembourg, are jointly represented by the Benelux       sufficient, equal to 10 % of its initial share, rounded
  Economic Union any measure concerning the               up where necessary to the next unit.
  administration of the quota-shares allocated to that
  Economic Union may be carried out by one of its
  members, -                                               2. If, after its initial share has been used up, 90 %
                                                          Or more of the second share drawn by a Member
                                                           State has been used up, that Member State shall, by
                                                          notifying the Commission, draw a third share, to the
  HAS ADOPTED THIS REGULATION :
                                                           extent that the reserve is sufficient, equal to 5 % of
                                                          its initial share, rounded up where necessary to the
                                                          next unit.
         !                Article 1
                                                          3.     If, after its second share has been used up, 90 %
  1 . From 1 January to 31 December 1975 the              or more of the third share drawn by a Member State
  autonomous duty of the Common Customs Tariff             has been used up, that Member State shall, in
 for raw silk (not thrown) falling within heading No       accordance with paragraph 2, draw a fourth share
 50.02 shall be totally suspended in respect of a          equal to the third.
  Community tariff quota of 2 500 metric tons.
 2. Within the limits of this tariff quota, the new       This process shall apply by analogy until the reserve
 Member States shall apply the duties calculated in       is used up.
 accordance with the relevant provisions of the Act of
 Accession (').
                                                          4. By way of derogation from paragraphs 1 , 2 and
                                                          3, the Member States may draw shares lower than
                         Article 2                        those fixed in those paragraphs if there are grounds
                                                          for considering that those fixed may not be used up.
                                                          They shall inform the Commission of their reasons
 1.    A first tranche of 2 OOOmetric tons of this tariff for applying this paragraph.
 quota shall be allocated among the Member States;
 shares shall, subject to Article 5, be valid until 31
December 1975" and shall be as follows :
          Bénélux                   5 metric tons                                   Article 4
           Denmark                  5 metric tons
          Germany                 210 metric tons         Supplementary shares drawn pursuant to Article 3
                                                          shall be valid until 31 December 1975"-
         France                   750 metric tons
         Ireland                    5 metric tons
         Italy • •                900 metric tons
        .Upited Kingdom         125 metric tons                                     Article. 5
2,    The second tranche, of 50 0 metric tons, shall be   A Member State which on 15 September 1975 has
held in reserve.                                          not used up its initial share shall return to the reserve
                                                          not later than 10 October 1975" the unused portion
            i
                                                          exceeding 30 % of the initial amount. It may return a
                                                          greater portion if there are grounds for considering
(>) OJ No L 73, 27. 3. 1972, p. 14.                       that it may not be used up.
 ---pagebreak---                                                             - 3 -                                           AMEX A
The Member States shall, not later than 10 October           charges may be made, without interruption, against
 1975 notify to the Commission the total quantities of       their cumulative shares of the Community quota.
the raw silk imported up to and including 15
September 1975 and charged against the Community             2.     Each Member State shall ensure that importers
tariff quota and any quantities of the initial share         of the said product established in its territory have
returned to the reserve.                                     free access to the shares allocated to it.
                        Article 6                            3.    The extent to which a Member State has used
                                                             up its share shall be determined on the basis of
                                                             quantities of the imports in question entered for
The Commission shall keep ail account of the shares          home use. '
opened by the Member States pursuant to Articles 2
and 3 and shall, as soon as it has been notified, ,
inform each State of the extent to which the reserve /             <  .   '  ,       Article 8
has been used up.                                      , '
It shall inform the Member States, not later than 15         The Member States shall' regularly inform the
October 1975, of the amount held in reserve after            Commission of imports actually charged against their '
amounts have been returned thereto pursuant to               shares.
Article 5 .                                             /                1
It shall ensure that the drawing which finally uses up                               Article 9
the reserve is limited to the balance available and to
this end shall specify the amount thereof to the             The , Member States ■ and the Commission shall
Member State making the last drawing.                         cooperate closely to ensure that this Regulation is
                                                              observed.
                        Article 7
                                                                                     Article 10
1 . The Member Sta,tes shall take all appropriate
measures to ensure that supplementary shares drawn           This Regulation shall enter into force on 1 January
pursuant to Article 3 are opened in such a way that           1975.
              This Regulation shall be binding in its entirety and directly applicable in all Member
              States.
              Done at Brussels,
                                                                                   For the Council
                                                                                    The Président
                                                   <y
                                                                                                        \
 ---pagebreak---                                                                                                   ATOEX B
                                REGULATION (EEC ) OP TKE COUNCIL
               on the opening, allocation and administration of a Community tariff quota for yarn
               entirely of silk, other than yarn of noil or other waste silk, not put up for retail sale,
                    falling within heading No ex 50.04 of the Common Customs Tariff for 1975
 THE COUNCIL OF THE EUROPEAN COMMUNITIES, '                      product level, might have adverse results for the
                                                                 Community's processing industries;
 Having regard , to the Treaty establishing the .
 European Economic Community, and in' particular
 Article 28 thereof:              V                              Whereas the duty under the Common Customs Tariff
                                                                 applicable on imports of the silk yarn in question is
                                                                 7 % ; whereas, when fixing the quota duty, it is
 Having regard to the draft Regulation submitted by           - appropriate to take into account, on 'the one hand,
 the Commission;                             '              ' the situation of the Community silk yarn producing
                                                                 industry and, on the other, that of the silk yarn
                                                               ■ processing industries with regard to their obtaining
 Whereas, in accordance with the Resolution passed at            supplies on favourable terms; whereas a quota duty
 its meeting of 29 to 31 May 1967, the Council, by its           of 2 ,5$ could best satisfy the abovementioned
 Regulation (EEC) No 322/70 (1), reintroduced until              requirements;
 31 December 1976 the 12 % autonomous duty of the
 Common Customs Tariff for yarn entirely of silk
 other than yarn of noil or other waste silk, not put
 up for retail sale falling within heading No ex 50.04;      • Whereas the trend in imports during 1973 suggests
 whereas the conventional duty for that product is
 7% ;                                                            that the import requirements of the yarns in question
                                                                 might be in the region of 60 metric tons for 1975;
                                                                 whereas the opening of a Community tariff quota of
 Whereas the resolution aforesaid further provides for           that volume is       unlikely   to harm     Community
 the opening in respect of that period and for such silk         production;
 yarn of an annual Community tariff quota with
 reduced or nil duty where a change in the sources of
 supply or an insufficient supply within the
 Community might have adverse results for the                    Whereas equal and continuous access to the quota
 processing industries in the Member States;                     should be ensured for all importers and the rate of
                                                                 levy for the tariff quota should be applied
                                                                 consistently to all imports of the product in question
Whereas silk yarn is produced in the Community;                  until the quota is used up; whereas, utilization of the
 whereas, although that production could cover all the           Community tariff quota in the light of the principles
 Community requirements by reason of its overall                 outlined above based on an allocation between the
volume, this does not apply with regard to yarn                  Member States concerned would appear consistent
entirely spun from silk; whereas there is, as a result,          with the Community nature of the quota; whereas to
an insufficient supply in the Community;                         represent as closely as possible the actual trend of the
                                                                 market in the product in question the allocation
                                                                 should follow proportionately the requirements of
Whereas consequently Community supply for those                  the Member States calculated both from statistics of
qualities of yarn depends to a considerable extent on            imports during a representative reference period and
imports; whereas full application of the duty under              from the economic outlook for the tariff year in
the Common Customs Tariff would result in those                  question ;
products being subjected to a considerable customs
charge while products manufactured from silk yarn
face powerful competition from similar products
manufactured from other material; whereas an                     Whereas the corresponding imports of the products
insufficient supply, added to competition at finished            falling within the tariff heading No 50.04 of each of
                                                                 the Member States concerned during the last three
                                                                 years for which complete statistics are available
                                                                 represent the following percentages of total
(') OJ No L 43, 24. 2. 1970, p. 5,                               Community imports of these products :
 ---pagebreak---                                                           - 2 -                                               AÎHTEX B
                                      1971    1972  1973    Whereas if, at a given date in the quota period, a
                                                            considerable quantity is left over in a Member State,
       Bénélux    -                     0       0-7   0.0   it is essential that such State should return a
                                                            substantial proportion to the reserve, to prevent part
       Denmark                          0-5     0-2   0.0
                                                            of the total quota from remaining unused in one
                                                           Member State while it could be used in others;
       Germany                        35-0     18-6 15.8
       France                         20-0     17-1 17.1   "Whereas since the Kingdom of Belgium, the Kingdom
                                                           of the Netherlands and the Grand Duchy of
       Ireland                         0-7      1-4   0.0   Luxembourg are jointly represented by the Benelux
                                                           Economic Union, any measure concerning the
       Italy                          22-5     50-0 52.6    administration     of the   shares  allocated  to  that
                                                           Economic Union may be carried out by one of its
       United Kingdom                 21-3     12-0 14.5   members,
  Whereas in view of these factors and of the forecasts
  which it is possible to make the initial percentage,      HAS ADOPTED TH1S REGULATION:
  shares in the quota volume can be expressed
 approximately as follows:
                                                                                    Article 1
                 Bénélux                  2
                 Denmark                  2                 1 . From 1 January to 31 December 1975", the
                                                            autonomous duty of the Common Customs Tariff for
                 Germany               34                  yarn entirely of silk, other than yarn of noil or other
          l                                                waste silk, not put up for retail sale, falling within
                 France                24                   heading No ex 50.04 shall be suspended at 2\5 % in
                                                            respect of a Community tariff quota of 60 metric
                 Ireland    »            2                  tons .
                 Italy                 26                  2.      Within the limits of the tariff quota, the new
                 United Kingdom         10 :               Member States shall apply the duties calculated in
                                                            accordance with the relevant provisions of the Act of
                                                           Accession (').
 Whereas, to take account of future import trends for
 the product under consideration, the total quota
 volume should be divided into two tranches, the first                              Artide 2
 being allocated and the second held as a reserve to
 cover at a later date the requirements of Member          1.      A first tranche of 50 metric tons of this
 States who have used up their initial share; whereas      Community tariff quota shall be allocated among the
 to give importers some degree of certainty the first      Member States; the shares shall, subject to Article 5,
 tranche of the Community quota should in the event        be valid until 31 December 1975^ and shall be as      as
 be fixed at 83 % of the total quota;                      follows :
                                                                      Bénélux                1 metric ton
Whereas the initial shares may be used up more or                     Denmark                1 metric ton
less quickly; whereas, therefore, to avoid disruption
of supplies any Member State which has almost used                     Germany              17 metric tons
up its initial share, must draw a supplementary share
from the reserve; whereas this must be done by each                   France                12 metric tons
Member State as each one of its supplementary
shares is almost used up, and as many times as the                     Ireland               1 metric ton
reserve allows ; whereas the initial and supplementary
shares must be valid until the end of the quota                       Italy                 13 metric tons
period ; whereas this form of administration requires                                        5 metric tons
close collaboration between the Member States and                     United Kingdom
the Commission, and the Commission must be in a
position to follow the extent to which the quota
volume has been used Up and inform the Member
States thereof;                                             (*) OJ No L 73, 27. 3. 1972, p. 14.
 ---pagebreak---                                                      - 3 -                                              AEÏÏEX B
     2.    The second tranche, of 10 metric tons, shall be            The Member States shall, not later than 10 October
     held in reserve.
                                                                      1975" notify to the Commission the total quantities of
                                                                      silk varn imported up to and including 15 September
                                                                      1975" and charged against the Community tariff quota
                                                                      and any quantities of the initial share returned to the
                                                                     reserve.
                               Article 3
     1. If 90 % or more of a Member State's initial
     share specified in Article 2 ( 1 ), or of that share minus
    the portion returned to the reserve where Article 5 is                                  , Article 6
    applied, has been used up, that Member State shall
     without delay, by notifying the Commission, draw a              The Commission shall keep an account of the shares
    second share, to the extent that the reserve is                  opened by the Member States pursuant to Articles 2
    sufficient, equal to 10 % of its initial share, rounded          and 3 and shall, as soon as it has been notified,
    up where necessary to the next unit.          < ' ,              inform each State of the extent to which the reserve
                                                                     has been used up.
    2.    If, after its initial share has been used up, 90 %
    or more of the second share drawn by a Member               , It shall inform the Member States not later than 15
    State has been used up, that Member State shall, by              October 1975 of the amount held in reserve after
    notifying the Commission, draw a third share, to the             amounts have been returned thereto pursuant to
   extent that the reserve is sufficient, equal to 5 % of        . Article 5 .
    its initial share, rounded up where necessary to the
   next unit.                                .  ;
                                                                    It shall' ensure that the drawing which finally uses up
                                                                     the reserve is limited to the balance available and to
   3.     If, after its second share has been used up, 90 %          this end shall specify the amount thereof to the
   or more of the third share drawn by a Member State                Member State making the last drawing.
   has been used up, that Member State, shall in
   accordance with paragraph 2, draw a fourth share
   equal to the third.
                                                                                            Article 7
   This process shall apply by analogy until the reserve
   is used up.                                                      1 . The Member States shall take all appropriate
                                                                    measures to ensure that supplementary shares drawn
                                                                    pursuant to Article 3 are opened in such a way that
  4. By way of derogation from paragraphs 1 , 2 and                 charges may be made, without interruption, against
 3, the Member States may draw shares lower than                    their cumulative shares of the Community quota.
  those fixed in, those paragraphs if there are grounds
 for considering that those fixed may not be used up.
  They shall inform the Commission of their reasons                2.      Each Member State shall ensure that importers
 for applying this paragraph.                                       of the said product established in its territory have
                                                                   free access to the shares allocated to it.
                              Article 4
                                                                   3 . The Member States shall charge against their
                                                                    shares imports of the said product, when the product
                                                                   is entered for home use.
 Supplementary shares drawn pursuant to Article 3
 shall be valid until 31 December 1975.
                                                                   4.      The extent to which a Member State has used
                                                                   up its share shall be determined on the basis of the
                                                                   imports charged in accordance with paragraph 3 .
                             Article 5
A Member State which on 15 September 197S has
not used up its initial share shal' return to the reserve                                   Article 8
not later than 10 October 1975" the unused portion •
exceeding 20 % of the initial amount. It may return a             The Member States shall regularly . inform the
greater portion if there are grounds for considering              Commission of imports actually charged against their
that it may not be used up.                                       shares.
 ---pagebreak---                      Article 9                                                        Article 10
The Member States and the Commission shall                   This Regulation shall enter into force on 1 January
cooperate closely to ensure that this Regulation is          1975.
observed.
            This Regulation shall be binding in its entirety and directly applicable in all Member
            States.
            Done at Brussels, '                  • ;   . •     <
                                                           /       '    ' . '   '   for the Council
                                            >'                              '         The Président
                                                                      /                 ' "
                                                                    '             - * r     – '   - • • - •   (
                                                                                                            t
                                             ■ '         /      '         '   r
 ---pagebreak---                                                                                                       AÎTNEX G
                                                  WIFT
                                   REGULATION (EEC ) OF THR. COOTCIL .
               on the opening, allocation and administration of a Community tariff quota for yarn
               spun entirely from silk waste other than noil, not put up for retail sale, falling within
                             heading No ex 50.05 of the Common Customs Tariff for 1975"
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                       products being subjected to a considerable customs
                                                               charge while products manufactured from silk yarn
                                                               face powerful competition from similar products
                                                               manufactured from other material ; whereas an
Having regard to the Treaty establishing the                   insufficiency of supply within the Community,
European Economic Community, and in particular                 added to competition at finished product level, might
Article 28 thereof;      •           '
                                                               have adverse results for the Community's processing
                                                               industries;
Having regard to the draft Regulation submitted by
the Commission :                                     ,
                                                              .Whereas the duty under the Common Custom? Tariff
                                                               applicable on imports of the silk waste yarn in
                                                               question is 3-5 % ; whereas when fixing the quota
Whereas, in accordance with the resolution passed at           duty it is appropriate to take into account, on the one
its meeting of 29 to 31 May 1967, the Council, by its           hand, the situation of the Community industry
Regulation (EEC) No 323/70 (x), reintroduced until             producing yarn spun from waste silk and, on the
31 December 1976 the 7 % autonomous duty of the                other, that of the industries processing yarn spun
Common Customs Tariff for yarn spun entirely from              from waste silk with regard to their obtaining
silk waste other than noil, not put up for retail sale         supplies on favourable terms ; whereas a quota duty
falling within heading No ex 50.05 ; whereas the               of 1 % could best satisfy the abovementioned
conventional duty for that product is 3-5 % ;                  requirements;
Whereas the aforesaid resolution further provides for
the opening in respect of that period and for such             Whereas the trend in imports during the last few
yarn of an annual Community tariff quota with                  years and the first months of 1973 suggest that
reduced duty or nil duty where a change in the                 Community import requirements of the yarns in
sources of supply or an insufficient supply within the         question might be in the region of 220metric tons for
Community might have adverse results for the                 ' 1976; whereas the opening of a Community tariff
processing industries in the Member States ;                   quota of that volume is unlikely to harm Community
                                                               production;
Whereas yarn spun from waste silk is produced in the
Community; whereas although that production should
cover all the Community requirements by reason of               Whereas equal and continuous access to the quota
its overall volume, this does not apply with regard to         should be ensured for all importers and the rate of
yarn entirely spun from waste silk ; whereas there is,          levy for the tariff quota should be applied
as a result, an insufficiency of supply in the                 consistently to all imports of the product in question
CommunitV; '                                                    until the quota is used up ; whereas utilization of the
                                                                Community tariff quota based on an allocation
                                                               between the Member States concerned would in the
                                                               light of the principles outlined above appear
Whereas consequently Community supply for those                consistent with the Community nature of the quota ;
qualities of yarn depends to a considerable extent on          whereas to represent     as closely as possible the actual
imports ; whereas full application of the duty under           trend of the market      in the product in question the
the Common Customs Tariff would result in those                 allocation should         follow proportionally the
                                                                requirements of the    Member States calculated both
                                                                from statistics of imports during a representative
                                                                reference period and from the economic outlook for
( ' ) OJ No I 43, 24. 2. 1970, p. 8.                            the tariff year in question;
 ---pagebreak---                                                                  - 2 -                                              AMEX 0
  Whereas the imports of the products falling within            Commission must be in a position to follow the
  the heading No 50.05 of each of the Member States             extent to which the quota volume has been used, up
  concerned during the last three years for which               and inform the Member States thereof;
  complete statistics are available represent the •
 following percentages of total Community imports of            Whereas if, at given date in the quota period, a
  these products :                                              considerable quantity is left over in a Member State,
                                                                it is essential that such State should return a
                                      1971        1972 1973     substantial proportion to the reserve, to prevent part
       Bénélux                          0-5          0-1    1.5 of the total quota from remaining unused in one
                                                                Member State while it could be used in others;
       Denmark                          0-1          0-1    o.o
                                                                Whereas since the Kingdom of Belgium, the Kingdom
       Germany                        39-2         4i-o 43.7.   of the Netherlands and the Grand Duchy of
                                                                Luxembourg, are jointly represented by the Benelux
       France                           5-0        10-8    '7.2 Economic Union any measure concerning the
                                                                administration    of the     shares   allocated  to  that
       Ireland                           0       ' 0-6      0.0
                                                                Economic Union may be carried out by one of its
       Italy                           47-0        38-7 36.0    members,
       United Kingdom                    8-2         8-7 12.6
                                                                 HAS ADOPTED THIS REGULATION :
 Whereas in view of these factors and of the forecasts
  which it is possible to make the initial percentage,                                 . Article 1
 shares in the quota volume can be expressed
 approximately as follows: ■                                    1.    From 1 January to 31 December 1975 the
                 Bénélux                0-5    '                autonomous duty of the Common Customs Tariff for
                                                                yarn spun entirely from silk waste other than noil,
                 Denmark               0-5                      not put up for retail sale, falling within heading No
                                                                ex 50.05, shall be suspended at 1 % in respect of a
                 Germany             44.7                       Community tariff quota of 220 metric tons.
                 France                6 .3                     2. Within the limits of this tariff quota, the new
                 Ireland               0-5                      Member States shall apply the duties calculated in
                                                                accordance with the relevant provisions of the Act of
                 Italy               34-3                        Accession ( ' ).
                 United Kingdom      13-2                C7
                                                                                         Article 2
 Whereas, to take account of future import trends for
 the product under consideration, the total quota                1.   A first tranche of 190 metric tons of this
volume should be divided into two tranches, the first           Community tariff quota shall be allocated among the
being allocated and the* second held as a reserve to            Member States ; the shares shall, subject to Article 5,
 cover at a latejr date the requirements of Member              be valid until 31 December 1975" and shall be as
States who have used up their initial share; whereas            follows :            '
to give importers some degree of certainty the first
tranche of the Community quota should be fixed at                         Bénélux                   1 metric ton
85 % of the total quota;
                                                                          Denmark                   1 metric ton
                       , ' I •                                                                  • 4
Whereas the initial shares may be used up more or                         Germany                 85 metric tons
less quickly; whereas, therefore, to avoid disruption
of supplies any Member State which has almost used                        France                  12 metric tons
up its initial share, must draw a supplementary share
from the reserve; whereas this must be done by each                       Ireland                   1 metric ton
Member State as 'each one of its supplementary
shares is almost used up, and as many times as the                        Italy                   65 metric tons
reserve      allows ;      whereas the       initial     and
                                                                          United Kingdom          25 metric tons
supplementary shares must be valid until the end of
the quota period ; whereas this form of
administration requires close collaboration between
the Member States and the Commission, and the                   (») OJ No L 73, 27. 3. 1972, p. 14,
 ---pagebreak---                                                     - 3 -                                     miEX c
2.     The second tranche, of 30 metric tons, shall be     The Member States shall, not later than 10 October
held in reserve.                                           1975", notify to the Commission the total quantities of
                                                           yarn from silk waste imported up to and including 15
                                                           September 1976* and charged against the Community
                                                           tariff quota and any fractions of the initial share
                                                           returned to the reserve.
                         Article 3
1.     If 90 % or more of a Member State's initial
share specified in Article 2 ( 1 ) or of that share minis
the portion returned to the reserve where Article 5 is                            Article 6
applied, has been used up, that Member State shall
without delay, by notifying the Commission, draw a .       The Commission shall keep an account of the shares
second share, to the extent that the reserve is .          opened by the Member States pursuant to Articles 2
sufficient, equal to 10 % of its initial share, rounded    and 3 and shall, as soon as it has been notified,
up where necessary to the next unit.        , ' -          inform each State of the extent to yhich the reserve
                                                           has been used up.
2. If, after its initial share has been used up, 90 %
or more of the second share drawn by a Member              It shall inform the Member States pot later than 15
State has been used up, that Member State shall, by '      October 1975" of tfye qmount held in reserve after
notifying the Commission, draw a third share, to the       amounts have been returned thereto pursuant to
                                                           Article 5 .
extent that the reserve is sufficient, equal to 5 % of
its initial share, rounded up where necessary to the
next unit.                           -                     It shall ensure that the drawing which finally uses up
                                                           the reserve is limited to the balance available and to
                                                           this end 6hall specify the amount thereof to the
3 . If, after its second share has been used up, 90 %      Member State making the last drawing.
or more of the third share drawn by a Member State
has been used up, that Member State shall, in
accordance with paragraph 2, draw a fourth share
equal to the third.
                                                                                   Article 7
This process shall apply by analogy until the reserve
is used up.,                                               1.    The Member States shall take all appropriate
                                                           measures to ensure that supplementary shares drawn
                                                           pursuant to Article 3 are opened in such a way that
4. By way of derogation from paragraphs 1, 2 and           charges may be made, without interruption, against
3 , the Member States may draw shares lower than           their cumulative shares of the Community quota.
those fixed in those paragraphs if there are grounds
for considering that those fixed may not be used up.
They shall inform the Commission of their reasons          2.    Each Member State shall ensure that importers
for applying this paragraph.                               of the said product established in its territory have
                                                           free access to the shares allocated to it. .
                                                           3 . The Member States shall charge against their
                         Article 4                         shares imports of the product in question, when the
                                                           product is entered for home use.
Supplementary shares drawn pursuant to Article 3
shall be valid until 31 December 1975"!
                                                           4.     The extent to which a Member State has used
                                                           up its share shall be determined on the basis of the
                                                           imports charged in accordance with paragraph 3 .
                         Article 5
A Member State which on 15 September 197l has
not used u,p its initial share shall return to the reserve                          Article 8
not later than 10 October 1975 the unused portion
exceeding^ 20 % of the initial amount. It may return a     The Member States shall regularly inform the
greater portion if there are grounds for considering        Commission of imports actually charged against their
that it may not be used up.                            ■ '  shares .
 ---pagebreak---                                                                - 4 -                                    ABÏÏEX 0
                     Article 9                                                   Article 10'
The Member States and the Commission shall                 This Regulation shall enter into force on 1 January
cooperate closely to ensure that this Regulation is        1974",
observed .                                                                                                  !
            This Regulation shall be binding in its entirety and directly applicable in all Member
            States .
            Done at Brussels*
                                                                                For the Council  .
                                                                                 The Président