CELEX: 51974PC2014
Language: en
Date: 1974-12-04
Title: DRAFT DECISION OF THE ASSOCIATION COUNCIL DEROGATING FROM THE DEFINITION OF THE CONCEPT OF " ORIGINATING PRODUCTS " FOR 1975 IN ORDER TO TAKE ACCOUNT OF THE SPECIAL SITUATION OF MAURITIUS WITH REGARD TO CERTAIN TEXTILE PRODUCTS (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 2014
Vol. 1974/0337
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 ---pagebreak---     COMMISSION OF THE EUROPEAN COMMUNITIES
                                                           COM(74)2014 final.
                                                  Brussels . ^ december 1974
                               DRAFT DECISION
                         OP THE ASSOCIATION COUNCIL
             DEROGATING PROM THE DEFINITION OP THE CONCEPT OP   •
             " ORIGINATING PRODUCTS " FOR 1975 IN ORDER TO TAKE
             ACCOUNT OP THE SPECIAL SITUATION OP MAURITIUS WITH
             REGARD TO CERTAIN TEXTILE PRODUCTS
               ( submitted t« the Council by the Commission )
COM(7*0 201 ** final *
 ---pagebreak---                        EXPLAUATORT MEMORANDUM
I. - Background .
         The Association Agreement concerning the Accession of Mauritius to
the Convention of Association "between the EEC and the AASM , signed on 12
May 1972 i entered into force on 1 July 1973 *
On that date , therefore , Mauritius was to implement the decisions of the
Association Council , particularly on matters of origin . Mauritius had
however drawn attention to the fact that certain of its export-orientated
industries products would not "be able to meet in full the criteria definirig
the concept of " originating products " upon the entry into force of the
Agreement . Accordingly , a joint Declaration was annexed to this Agreement ,
according to which the Contracting Parties undertook to provide a period
of adaptation , in any event not extending beyond 31 December 1974 » for
certain export industries , in particular the textile industry. The Mauritian
Government subsequently notified the Commission of the extent to which it
intended to avail itself of this derogation . At the time it considered that
time limit envisaged would be long enough to enable its industries to change
the pattern of their sources of supply.
         Pursuant to this joint Declaration the EEC-AASM Association Council ,
by Decision 46/73 of 15 June 1973 , granted the requested derogation for the
years 1973 and 1974 and pointed quotas for each of the Tariff headings covered
by the derogation.
The Government of Mauritius put forward the following arguments in support of
its txo-fold request :
( 1 ) The delay in bringing the Agreement into force ( June 1973 instead of
      January 1973 ) had led the industrialists concerned to defer certain
      capital investments and the conclusion of certain contracts .
( 2 ) The setting up of spinning mills on Mauritius had been delayed for
      reasons connected with supplies of building materials .
      The difficulties encountered had involved water supplies and delays
      in certain cement and steel deliveries .
 ---pagebreak--- Application by Mauritius for 1975 .
The Commission has reoeived an application from Mauritius
under the terms of which that Associated State requests that t
1 ) the derogation granted be maintained "beyond 1974 for
    a maximum period of one year ;
2 ) there should be an aggregate amount for eaoh Chapter in order
    to make the system more flexible and promote exports of
    the produots in greatest demand ;
 ---pagebreak--- ( 3 ) The "breakdown "by tariff heading did not correspond with the beneficiary
      industries' true production and export potential . In order to take
      account of this potential only two amounts should be fixed , one for the
      products of Chapter 60 and the other for those of Chapter 61 .
      After examining this request the Commission considered that the Mauritian
      Government 's arguments in favour of a one-year extension of the derogation
      in force being granted were well-founded and that a favourable reply
      should be given to this request .
      However , it considered that although the breakdown of the amounts of the
      derogation was not entirely satisfactory it would not nevertheless be
      possible to accept a breakdown consisting of only two sections . Following
      contacts taken up with the industry the breakdown as proposed in the
      following draft decision was adopted and would be able to meet Mauri–
   •' tius' wishes without being detrimental to the Community 's textile
      industry.
      In particular , it was recognized necessary to maintain at the previous
      level , ( 50 metrio tons ) the quota laid down for gloves , mittens and mitts ,
      which is a particularly sensitive sector.
      In any event , it should be noted that Mauritius is continuing its efforts
      to create the conditions required for its products to meet in full the
      criteria for the definition of the concept of originating products ,
      particularly by setting up industries of first-stage processing.
      Finally , the possibility could be envisaged of continuing to exclude
      Reunion from the scope of the proposal for a decision annexed hereto .
      The draft decision of the Association Council annexed hereto if
      intended insofar as possible to meet the request from Mauritius .
 ---pagebreak---                               - 3 -
It is advisable to note that the Convention of Yaounde expires on the
31st January 1975 • Given the point reached "by the negotiations whioh
must replace the Convention, it is already clear that transitional
measures will be necessary. These transitional measures must "be decided
by the EEC-EAMA Council of Association before the expiring of the Yaounde
Convention and of the derogation concerning Mauritius , which would normally
take place in the context of these transitional measures . In the hypothesis
that , enventually, but before the end of 1975 > "the steps will be taken to
put into effect on an anticipatory basis the commercial section of the
Convention currently tinder negotiation, it would be necessary that a new
decision would be taken by the competent bodies on the basis of the guide­
lines which will be made clear to them .
      Taking into account the uncertainties consequent upon the delays in­
volved in these different procedures and of the need to give adequate
assurances to the exporters of Mauritius , it would appear preferable to
propose that the decision of the Council of Association would be applicable
just until the entering into force of the commercial provisions of the Con­
vention which will suceed the Convention of Yaounde and not later than the
31st December 1975 *
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 si g-ei oe 25 »_1t" l=c^ f arc. ir. p-articilar Article                       v 2 / thereo- ;
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 r,i ::i _ .- - -- ç R ;
 ìCiereas an Associatici. A^reenant ccc.oemii^? ~.~z& accessicai or K.=– tì ~; ì '^b to
 the Ccz^gtLcc cf Associatias iras sdg=.ed a"; Pert La^Ls an 12 Xagr - 372 ;
■Khsreas ~"~-=~ Izreeaiem                   t-j* the application "to Kauriti^is of Zecisions
 cf "s *v Associatisi Council cc the defizu.ticsi of the oor.eept of " originatix
products " , sad in. p-articilar of liecisijsi Jo 3-/ 71 ;
 &i£r&se « iECwsTBr « m ordsr "vo » a£6 i*to &cco%nr» 115                                si           ci
irccrmcQ to ccollticsls it. c^ conrr . j vit - t^s car^rrrcsi or "tr^e cc^icer • ox
 " r. – –              - proctrrts " , lecisioa So 4£/73 cf the I3C/aA3£ Association
 Csr=r<ril cf o                1^73 stipulates thai ^rtil 31 lieceaser 1974 textile
 oD–G_ f oj-C2 f 6l–Ci, oC-^5 , cl–CI f 61-C2 , 6l-C3 » c.-Ci, cl–C7j £l–P5 f
arc £1–10 fva ' 1 re considered as ■ originating products " , nithl a the 1 i ai t
 cf certain ~ –.=^-° ^ ;
 ■hereas "she ~^~~~ ~ f             cf ~ ~~ "–: ~ -   " ~ « is Xa^riti^is has "been delated for
 rsasxs corrected                   lbs e-pply of "oudldLng xia-t-erxais, ar^c xhereas ■therefore ,
 cerva: ^ cf that Associated State * s textile procncts do tct yet ne-et ire
 criteria laid da«n ~sj the defir±i<B of "She zsoticn of                              ~      " ~ prtxincis"
 in the relatisn3 cev-eeu the ZZC a=d "she -t                        ; vhereas esrae^p'i'j , the
 rer^e=i preee=."»d hj the Gcrerrmers of                     - –' ~- - = g - sc . a "be aet and 3ai
 1 » ar^sr7 1575               caf; ri tic^ ia fsree is rssp-ect cf cerrain terrile products
 ¥■*• r ^fa-- • .^rec. i ti s^a * Aasoo^ate^. Stale g           ^ De b^:-.10**.~       for a in i    –i* period
 of œue 7«ar ;
                                                                                                          -/•
 ---pagebreak---       HAS DECIDED AS FOLLOWS :
                                     Article 1
      In derogation from, the special provisions in List A annexed to Decision
      No 36/71 on the definition of the concept of " originating products" and
      on the methods of administrative cooperation , textile products manufactured
      in Mauritius and falling within the Tariff Reading Nos 60.02 , 60. 04, 60. 05 ,
      61.01 , 61*02 , 61.03 , 61.04, 61.07 , 61.09 and- 61.10 shall be considered as
      products originating in Mauritius under the conditions set out hereinafter.
                                     Article 2
                                                        /     ,
      The derogation shall , for the year 1975 t t>® limited to the amounts specified
      he low in respect of the products conoerned :
60.02 Gloves , mittens and mitts , knitted or crocheted , not elastic
      nor rubberized                                                       50 metric tons
                                                                                          I
60.04 Under garments , knitted or crocheted , not elastic nor
                                                                                          !
      rubberized                                                          330 metrio tons
60.05 Outer garments , clothing accessories , and other articles ,
      knitted or crocheted, not elastic nor rubberized                    330 metrio tons
61.01 Men's and boys' outer garments                        )
                                                                          240 metrio tons
61.02 Women 's , girls' and infants' outer garments         <
61.03 Men 's and boys' under garments , including collars ,     )
                                                                          240 metric tons
      shirt-fronts and cuffs                                    \
                                                                /
61.04 Women 's , girls' and infants' under garments             )
 ---pagebreak--- 61.07      Ties , bow ties and cravats
61*09      Corsets , corset-belts , suspender-belts , brassieres , )
           braces , suspenders , garters and the like ( inoluding  <     metrio tons
           such articles of knitted or crocheted fabric ),         )
           whether or not elastic .                                I
61.10      Gloves , mittens , mitts , stockings , socks and        )
           eockettes , not being knitted or crocheted goods        ;
                                       Article 3
      The necessary measures will be taken by the Mauritian authorities in
      order to verify the quality and quantity of exports of the produots
      referred to in Artiole 2 *
      Movement certificates AY 1 issued pursuant to this Decision shall bear one
      of the following entries :
      " marchandises réputées originaires en vertu de la déoision n° ••••••
         du Conseil d' Association •'
      M  ( same  entry  in German) "
      u  ( same  entry  in Italian) "
      "  ( same  entry  in Dutch ) "
      •• ( same  entry  in Danish) "
      n Originating products by virtue of Association Council Decision No ••••"
      This entry shall be in red ink under the heading " observations "•
                                       Article 4
      Should imports under this derogation give rise , or threaten to give rise to
      difficulties leading to a change in an economic situation in a region of the
      Community, the latter may, pursuant to Article 16 ( 2 ) of the Convention of
      Association , take or authorize the Member State concerned to take the necessary
      protective measures ^
                                                                                   •/
 ---pagebreak---                            - 4 -
                     Article 5
The Associated States , the Member States and the Community shall "be
required , each to the extent to which they are concerned , to take the
necessary steps to implement this Decision*
                     Article 6
This Deoision shall enter into force on 1 January 1975 *
It shall apply until 31 December 1975 and until the entry into force
of the latest *
                                               Done at