CELEX: 51977PC0557
Language: en
Date: 1977-11-10
Title: Proposal for a COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of Community tariff quotas for certain textile products falling within heading Nos 55.05 and 55.09 and subheading ex 58.01 A of the Common Customs Tariff, coming from Turkey (1978) (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 557
Vol. 1977/0182
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(77)557 final
                                              Brussels , 10 November 1977
                                Proposal for a
                            COUNCIL REGULATION (EEC )
                   opening , allocating and providing for the
                   administration of Community tariff quotas
                   for certain textile products falling within
                  heading Nos 55.05 and- 55.09 and subheading
                   ex 58.01 A of the Common Customs Tariff,
                         coming from Turkey ( 1978 )
          ( submitted to the Council by the Commission )
C0M(77 ) 557 final
 ---pagebreak---                          EXPLANATORY MEMORANDUM
1. As a result of negotiations with Turkey on the adjustments to
   be made to the Association Agreement between that country and
   the Community and the Additional Protocol , to take account of
   the accession of new Member States , the Community signed in
   Ankara on30 June 1973 a Supplementary Protocol which enter into
   force once it has been ratified .
   In the meantime / the Community has conclude an Interim Agreement
   which in theory runs only for the period prior to the entry into
   force of this Supplementary Protocol in order to implement , from
   1 January 1974, certain provisions of that Protocol relating to
   trade in goods .
   At the moment it is not possible to know if the tariff measures
   laid down by these Agreements in Turkey 's favour, should be given
   for 1978 on the basis of the Supplementary Protocol ot the Interil
   Agreement whose validity should be prolonged .
   The provisions of the annexed Regulations are based on the Interim
   Agreement and should thus be modified if the Supplementary Protocol
   enters into force on 1 January 1978 at the latest .
2. In the abovementioned Supplementary Protocol and Interim Agreement ,
   provision is made in particular in respect of textile products
   for the opening of the following annual Community tariff quotas ,
   subject to the conditions laid down for each product :
   CCT heading      Description              Annual tariff  Quota
   No
                                           j quota          duty
   55.05        Cotton yarn , not put up         390 tonnes 75% reduction
                for retail sale
   55.09       Other woven fabrics of        ; 1 390 tonnes 75% reduction
                cotton
 ---pagebreak--- They also determine for these products the allocation among the
Member State of the annual tariff quotas for textile products .
This allocation is as follows :
Cotton yarn ( heading No 55.05 )
Community as originally constituted                  300 tonnes
Denmark                                               40 tonnes
Ireland                                               10 tonnes
United Kingdom                                        40 tonnes
Other woven fabrics of cotton ( heading No 55.09 )
Community as originally constituted                1 000 tonnes
Denmark                                               20 tonnes
Ireland                                               10 tonnes
United Kingdom                                       360 tonnes
While Article 14 of the Supplementary Protocol fixes such an
allocation for a period ending at 1 July 1977 .    The Interim
Agreement fixes no limit to this special allocation / while
could be due to the initially limited period of validity of
the Interim Agreement applying in anticipated application some
of the provisions of the Supplementary Protocol .
The end of the transitional period fixed by the Act of Adhesion
on 1 July 1977 has led the Commission to reflect on the question
of this allocation / which has resulted in the proposal to have
a common system of administration of the above tariff quotas
involving / in each case / the opening of a single quota quantity
divided between the Member States according to the usual criteria
and the creation of a single Community reserve open to all Member
States .  .               ■
 ---pagebreak---                                   - 3 -
4.  Another problem arises in connection with the size of the quotas
    to be opened for 1978, in view of the decision taken by the
    Association Council during June 1973 to grant Turkey treatment
    as favourable as that granted to countries benefiting from
   generalized tariff preferences .
   As the decisions on the system to be applied to the developing
   countries will not be taken until very late this year , the
   present Commission proposal for 1978 is based for the calcula­
   tion of quota amounts on the proposal that the Commission has -
   used for the generalized system of preferences .   Thus the
   quantities proposed are the same as for 1977 and should be
   adjusted if the final decision made in the context of the
   generalized system of preferences is not that proposed by
   the Commission .
5. As regards the economic information to be used in determining
   the basis for the proposed allocation of the tariff quotas
   concerned , it should be remarked that they should be based
   principally on Member States' imports , actual and estimated ,
   specifically originating in or coming from Turkey for the
   categories of products considered .
   Thus , although it has been possible to draw up the appropriate
   information for the years 1974 to 1976, nevertheless because
   of the irregularity noted in imports during those reference
   years , it has not necessarily been possible to deduce any firm
   basis of assessment.' For this reason , as is customary , the
   quota volumes attributed to the original Community have been
   divided into two tranches , the first tranche being allocated
   among the Member States , and the second held as a reserve to
   cover any additional requirements which might come to light
   in those Member " States .
6. The Proposal for a Regulation on textile products provides for a
   single method of counting imports against quota shares in the
   Member States concerned , namely as and when they are entered for
   home use .
 ---pagebreak---                                                 Proposal for a
                                           COUNCIL REGULATION ( EEC)
           opening , allocating , and providing for the administration of Community tariff quotas
           for certain textile products falling within heading Nos 55.05 and 55.09 and subheading
                     ex 58.01 A of the Common Custoas Tariff, cooing froo Turkey (1978)
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                    – for woven fabrics of cotton :
                                                                 1 000 tonnes to the Community as originally
                                                                 constituted ,
Having regard to the Treaty establishing the
European Econooic Community , and in particular                  20 tonnes to Denmark ; 10 tonnes to Ireland
Article 113 thereof,                                             and 360 tonnes to the United Kingdom :
Having regard to the proposal froa the Commission ,          whereas Article 14 of the said Supplementary Protocol
                                                             only provides for such an allocation of tariff quotas
                                                             between the Community as originally constituted and the
Whereas , pending the entry into force of the Sup­           three new Member States until 1 July 1977; whereas ,
plementary Protocol signed in Ankara on 30 June              moreover , following the end of the transitional period
1973 containing the adjustments to be made to the            laid down in Article 39 of the Act of Accession , it is
Agreement establishing an Association between the            necessary to create a common system of administration
European Economic Comounity and Turkey and to                of the tariff quotas concerned, consisting in each
the Additional Protocol (1 ) consequent on the               case of the opening of a single quota divided between all
accession of new Member States , the Community has           the Member States according to the usual criteria and
undertaken, in an Interim Agreement (2) which                the creation of a single Community reserve , open to all
runs only for the period prior to the entry into             Member States ;
force of this Suppl ementqry Protocol which is
applicable until 31 December 1974 but which has
been extended for 1978 in accordance with the                Whereas it is   desirable to provide for a provisional
terms laid down in Article 13 thereof, to imple­             adjustment of   the tariff advantages for these goods
ment certain provisions of the Supplementary                 consisting of   a total suspension of the custoas duties
Protocol relating to trade in goods ; whereas ,            , of the Common   Customs Tariff and an increase in the
under Article 6 of this Interim Agreement amending           quotas ;
Article 1 of Annex 2 to the Additional Protocol ,
the Community oust reduce by 1% the custoas duties
on imports from Turkey of certain textile products           Whereas the volumes of the quotas to be opened for
falling within heading Nos 55.05 and 55.09 of the            1978 are therefore 1 026 tonnes for cotton yarn and
Common Customs Tariff, within the limit of annual            2 415 tonnes for other woven fabrics of cotton ;
Community tariff quotas of 390 tonnes for cotton
yarn and 1 390 tonnes for woven fabrics of cotton;
whereas the aboveoentioned Article 6 allocates               Whereas pursuant to Article 1 of Annex 2 to the
these Community tariff quotas as follows :                   Additional Protocol together with Article 2 of the
                                                              Interim Agreeaent ; for the duration of 1978 in
– for cotton yarn :                                          particular , the Community oust partially reduce the
                                                             duties applicable in respect of third countries to
     300 tonnes to the Community as originally               carpets; carpeting and rugs ; knotted (made up or not)
     constituted ,                                           of wool or of fine animal hair ( excluding hand-made
     40 tonnes to Denmark ; 10 tonnes to Ireland             carpets , carpeting and rugs) imported from Turkey;
     qnd 40 tonnes to the United Kingdom ,                   whereas it also qppears advisable to improve this
                                                             tariff advantage provisionally by ueans of a total
                                                              suspension of the duties applicable to the products
                                                              in question within a Community tariff quota fixed at
 (1 ) 0J No L 293, 29.12.1972, p. 4.                          a provisional level of 185 tonnes for 1978 and
 ( 2) 0J No L 277, 3.10.1973, p. 2.                           allocated in accordance with the same percentages as
                                                              those adopted for 1977;
 ---pagebreak---                                                          - 2 -
whereas it is necessary to guarantee to all
 importers equal and uninterrupted access to the
 abovementioned quotas and uninterrupted ;
 application of the rate laid down for those quotas 1
 to all imports of the product concerned into all
 Member States until the quota has been used up ; whereas
  in the light of the principles mentioned above, the
  Community nature of the quotas can best be
  respected by allocating the Community tariff
  quotas among the Member States; whereas, in
  order to reflect most accurately the actual i
  development of the market in the product
   concerned, such allocation shall be in proportion
   to the needs of the Member States, assessed by '
   reference both to the statistics of each State's ,
   imports from Turkey over a representative -
   period and to the economic outlook for the quota !
   period concerned ; whereas, in spate of the limited
  need for imports from Turkey of the products ,
   concerned, as shown by the statistics for the
   majority of the Member States the Community
   character of the tariff quotas concerned should
   be safeguarded by making provisions to cover ;
   needs which might arise in these Member States;
Whereas imports into the various Member States from
             Turkey were as follows during the last three years
             for whiah complete statistics are available:
                                         . 1974 . •          1975              1976
                                      tonnes        %    tonnes       %   tonnes .   %
                                i
                                I
Cotton \artt
                                i
Bénélux                                7»000   27.76     4,255      14.13 13,648 18.31
Denmark                                      0        0     127      0.42      13   0.02
Germany..          ,             ; 6,333 25.11          14,196      47.15 25,000 33.54
France                           j 1,806 7.16            1,044       3.47 2,389 3.21
Ireland                          I         34   0.13           0        0     145   0.19
Italy                            I 6,690 26.53           7,999      26.57 30,019 40.28
United Kingdom                         3,357 13.31       2,485       8.26 3,319 4.45
                                     25,220             30,106            74,533
                            ' 1
Other woven fabrics of         J
cottcsv :                    . 1
Bénélux                                 , 000  53.70        948 . 64.33       535 17.38
Denmark                                      2  0.11         11      0.75      36   1.17
Germany                                   456 24.49         151     10.25  1,100 35.74
France                                    194 10.42          95      6.45     481 15.63
Ireland                                      0        0        0 . 5 0.03        1  0.03
Italy                                     210 11.28         244     16.56     835 27.13
United Kingdom                     I         0        0      24      1.63      90   2.92
                                       1,862             1,473 . 5         3,078
 ---pagebreak---  Whereas      in view of these figures and foreseeable market
              trends for the products concerned during 1978,
              the initial shares may be fixed approximately at
              the following percentages:
                                                   other woven
                                 cotton yarn    fabrics of cotton
      Bénélux                    16.16              20.08
      Denmark                     8.71                1.80
      Germany                    35.86              15.05
      France                      4.29              22.55
      Ireland                     2.27                0.92
      Italy                      23.99                7.50
     United Kingdom               8.72              32.10
 Whereas     in order to take into account the uncertainty of
             the import trends for the products concerned in
             the Member States, the quota volumes should be
             divided into two instalments, the first instalment
             being allocated to the Member States and the
             second held as a reserve intended ultimately to
             cover the requirements of those Member States
             which have used up their initial shares; whereas,
             in order to ensure a certain degree of security
             to importers, the first instalment should be
             determined at a relatively high level, which, under
             present circumstances, may be about 80% of each
             quota volume,
Whereas      the initial quota shares of the Member States
             may be used up at different times; whereas, in
             order to take this fact into account and avoid
             any break in continuity, it is important that any
             Member State having used up almost the whole
             of one of its initial quota shares should draw ,
             an additional quota share from the corresponding ,
             reserve; whereas, this must be done by each
             Member State as and wihen each of its additional •
             quota shares is almost entirely used up, and
             repeated as many times as each of the reserves
             allows; whereas each of the initial and additional
             quota shares must be available for use until the
             end of the quota period ; whereas this method .
             of administration calls . for close co-operation :
             between Member States and the Commission,
           . which must, in particular, be able to observe the .
             extent to which the quota amount is used and i
             inform Member States thereof,
Whereas^         ,a t a specified date in the quota period, a
             considerable balance remains in one or other
             Member State it is essential that that Member
             State pays a percentage of it back into die
             corresponding reserve, in order to prevent a part
             of one or other of the Community quotas from •
             remaining amused in one Member State when it ;
             could be used in others,                             .. i
 ---pagebreak---               I
                                                            - A -
„ Whereas the Kingdon of Belgiua, the Kingdoa of                j
   the Netherlands and the Grand Duchy of
   Luxembourg are united in and represented by
   the Benelux Economic Union, any measure
   concerning the administration of the quota shares
   allocated to that economic union may be carried
  out by any of its members,
  HAS ADOPTED THIS REGULATION :
                           Article 1
                                    \                     ,    '
  1 . From 1 January until 31 December 1978, Com­
  munity tariff quotas shall be opened for the
  following products coming from Turkey as shown ;
   below :                                                    -s
      CCT
                                                                    f
     hcûding                                Description                         Quota
       No
                                                                             ' tonnes'
     55.05      , Cotton yarn, not put up for retail sale                       1026
     55.09        Other woven fabrics of cotton
            V                                                                  2 415
     58.01
                  Carpets, carpeting and rugs (made up or not^ :
                  ex A. Of wool or of fine animal hair excluding handmade
                        carpets, carpeting and rugs     -   -                    185
  2 . The duties of the Common Customs Tariff are totally
  suspended for these tariff quotas .
                            Article 2
  1 . A first instalment of each of the quotas referred to in
  Article 1, which shall be 792 . tonnes . for cotton yarn not
  put up for retail dale, 1,947                       tonnes      . for other woven
  fabrics of cotton and 151                       tonnes for carpets,
  carpeting and rugs of wool or of fine animal hair , shall
  be shared among                the Member States ; the shares which ,
  subject to Article 5 shall be valid until 31 December 1978 /
  shall be as follows .
 ---pagebreak---                                                     - 5 -
Member State
                                                             in tonnes
                                                           CCT heading No
                                                     55.05     55.09      ex 58.01 A
Bénélux                                                128       391           14
Denmark                                                 69        35           14
Germany                                                284       293           36
France                                                  34       439           26
Ireland                                                 18        18            2
Italy                                                  190       146           18
United Kingdom                                          69       625           41
                                                      792      1,947          151
The second instalment of each quota, amounting to
234, 468 and 34          tonnes     respectively, shall
constitute the corresponding reserve.
                         Article 3
1 . If 90% or more of one of any Member State's
initial shares, as daid down in Article 2 ( 1 ) or 90%
of that share less the amount returned into the
corresponding reserve, where Article 5 has been '
applied, has been used up, that Member State shall
without delay, by notifying the Commission, draw
 a second share in the quota equal to 15% of its ■
initial share, rounded up to the next unit where
appropriate, to the extent that the amount in the
 reserve allows.
 2. If, after one or other of its initial shares has ,
 been used up, 90% or more of the second share
drawn by one of the Member States has been used
 up, that Member State shall, in tihe manner provided
 for in paragraph 1 , draw a third share equal to
 7-5% of its initial share.
 3 . If, after one or other of its second shares has
 been used up, 90% or more of Dhe third share drawn ;
 by a Member State has been used up, the latter shall,
 in the same manner, draw a fourth share equal to
 the third .
 This procedure shall be followed until the reserve
  has been exhausted.
 4. Notwithstanding paragraphs 1, 2 and 3, Member
 States may draw smaller shares than those fixed in
  those paragraphs if there is reason to believe that
 those shares might not be used up. They shall inform
 the Commission of their reasons for applying this
  paragraph.                                                                      /
 ---pagebreak---                                                       - 6 -
                               Article 4
       Each of the additional shares drawn pursuant to
       Article 4 shall be valkl until 31 December \ 9!& .
                               Article 5
       The Member States shall return to the reserve, not
       later than 1 October 19^, the unused portion of
       their initial share which, on 15 September 1978 , is
       in excess of 20% of the initial amount. They may
       return a greater portion if there are grounds for
       believing that such portion may not be used in full.
. . , Member States shall, not later than 1 October 1978,
    - notify the Commission of the total imports of the
       products concerned effected under the Community
       quotas up to and including 15 September 1978 and,
       where appropriate, the proportion of each of their
       initial shares that they are returning to each of the
       reserves .
                               Article   6
       The Commission shall keep account of the shares
       opened by Member States in accordance with Article
       2 and 3 and shall inform each of them of the extent
       to which the reserves have been used as soon as it
       receives the notifications.
       It shall, not later than 5 October 197 § notify, the
       Member States of the state of each of the reserves
       after the return of shares pursuant to Article 5.
       It shall ensure that any -drawing which uses up a
       reserve is limited to the balance available and, for
     . this purpose, shall specify the amount thereof to
   1 the Member State which makes the final -drawing.
                                Article 7
 1 . Member States shall take all measures necessary to
       ensure that, when additional shares are drawn
        pursuant to Article 3 , it is possible for imports to
        be counted without interruption against their
        accumulated shares of the Community tariff quotas.
2 . Member States shall ensure for importers of the
        products concerned established in their territory
         free access to the shares allocated to then .
 3 . Member States shall count imports of the products
         concerned against their shares as and when such
         products are presented for customs clearance
         under cover of a declaration that they have been
         made available for consumption .
 ---pagebreak---                                            - 7 -
4 * - . -T he extent to which the Member State 's shares have been_used_
         ud shall be established on the basis of imports counted in –
         accordance with paragraph 3 .
                                         Article 8
                  On receipt of a request from the Commission,
                  Memlber States shall inform it of imports of the prod­
                  ucts concerned actuallly charged against their shares.
                                         Article 9
                  The Member States        and   the Commission      shah
                  cooperate closely in order to ensure flhat this
                  Regulation is observed.
                                         Article " 0
                  This Regulation shall enter into force on 1 January
                  197 8 .
  This Regulation shall be binding in its entirety and directly applicable in all Member
  States.
  Done at Brussels,
                                                                     For the Council
                                                                      The President