CELEX: 31977R1179
Language: en
Date: 1977-05-17 00:00:00
Title: Council Regulation (EEC) No 1179/77 of 17 May 1977 on the opening, allocation and administration of a Community tariff quota for processing work in respect of certain textile products under Community outward processing arrangemments

No L 142/6                             Official Journal of the European Communities                                  9. 6 . 77
                                        COUNCIL REGULATION (EEC) No 1179/77
                                                        of 17 May 1977
                on the opening, allocation and administration of a Community tariff quota for processing work
                 in respect of certain textile products under Community outward processing arrangements
 THE COUNCIL OF THE EUROPEAN COMMUNITIES,                           Whereas provision should be made in particular to ensure
                                                                    equal and continuous access for those concerned with this
                                                                    quota and consistent application of the rate of duty pre­
                                                                    scribed for the said quota until the quota is exhausted, to
Having regard to the Treaty establishing the European               all goods re-imported into any of the Member States and
Economic Community, and in particular Article 113                   which have received one or other of the treatments listed
thereof,                                                            above; whereas in the light of these principles arrange­
                                                                    ments for the utilization of the quota based on an alloca­
                                                                    tion among the Member States would seem to be con­
 Having regard to the proposal from the Commission,                 sistent with the Community character of the said quota;
                                                                    whereas, it therefore seems appropriate to make the allo­
                                                                    cation on the basis of the amount of the traffic under the
Whereas on 1 August 1969 the Community concluded an                previous bilateral agreements, but without precluding
arrangement with Switzerland on processing traffic in tex­         participation by Member States not previously involved in
tiles ; whereas under that arrangement the Community               such traffic,  among which the new Member States are
undertook to open on 1 September of every year an annual           included; whereas, to safeguard the Community character
duty-free Community tariff quota for processed goods of             of the quota, provision should be made to meet require­
 1 870 000 units of account of added value, apportioned             ments which may arise in those Member States in the
as follows :
                                                                    future permitting them to draw adequate amounts from
                                                                   the Community reserve;
(a) 1 650 000 units of account for processing work on
     woven fabrics falling within Chapters 50 to 57 of the
     Common Customs Tariff;
                                                                    Whereas to take account of future trends in the traffic in
                                                                    question in the various Member States, the total quota
 (b) 143 000 units of account for the twisting or throwing,         volume of 1 870 000 units of account should be divided
      cabling and texturizing (whether or not combined              into two tranches, the first being allocated among certain
      with other processing works) of yarns falling within          Member States and the second held as a reserve to cover
      Chapters 50 to 57 of the Common Customs Tariff;               the subsequent requirements of Member States when one
                                                                    of their initial shares has been exhausted and also,
(c) 77 000 units of account for processing work on pro­             requirements which may arise in certain Member States in
     ducts falling within heading Nos 58.04, 58.05 , 58.07,         respect of processing work for which no initial share of the
    58.08 , 58.09 and 60.01 of the Common Customs                   quota was allocated; whereas in order to give the parties
    Tariff;                                                         concerned in each Member State some degree of certainty
                                                                    it would seem appropriate to fix the first tranche of the
                                                                    Community quota at a relatively high level, namely
                                                                    1 640 000 units of account; whereas the total Community
Whereas, in order that the division of the whole quota into         reserve of 230 000 units of account shall consist of
the three categories referred to above shall correspond             amounts drawn from the allocations in respect of each
more exactly with the actual movement of trade during               category, that is 160 000, 13 000 and 57 000 units of ac­
the reference year or during previous quota periods as well         count respectively;
as with the foreseeable movement of trade during future
quota periods, it has been decided to adjust the said allo­
cation between the three categories by giving them
1 520 000, 123 000 and 227 000 units of account respec­
tively; whereas the Community tariff quota in question              Whereas the Member States may exhaust their initial
should be opened for the period 1 September 1977 to 31              shares at different rates; whereas to avoid disruption of
August 1978 according to the provisions laid down in the            supplies on this account it should be provided that any
arrangement specified above, and in amendments to it;               Member State which has almost used up one of its initial
 ---pagebreak---  9 . 6 . 77                             Official Journal of the European Communities                            No L 142/7
shares should draw an additional share from the reserve;               58.05 Narrow woven fabrics, and narrow fabrics
whereas each time its additional share is almost exhausted                     (bolduc) consisting of warp without weft as­
a Member State should draw a further share, and so on, as                     sembled by means of an adhesive, other than
 many times as the reserve allows; whereas the initial and                    goods falling within heading No 58.06 ;
 additional shares should be valid until the end of the quota
 period; whereas this form of administration requires close            58.07 Chenille yarn (including flock chenille yarn),
 collaboration between the Member States and the Com­                         gimped yarn (other than metallized yarn of
 mission, and the Commission must be in a position to                          heading No 52.01 and gimped horsehair yarn);
 keep account of the extent to which the quota has been                        braids and ornamental trimmings in the piece;
 used up and to inform the Member States accordingly;                          tassels, pompons and the like;
                                                                       58.08 Tulle and other net fabrics (but not including
                                                                               woven , knitted or crocheted fabrics), plain;
Whereas if at a given date during the quota period a con­
siderable quantity of a Member State's initial share re­               58.09 Tulle and other net fabrics (but not including
mains unused it is essential, to prevent a part of the quota                   woven, knitted or crocheted fabrics), figured;
from remaining unused in one Member State while it                             hand or mechanically made lace, in the piece,
could be used in others, that such State should return a                        in strips or in motifs;
significant proportion thereof to the reserve;                          60.01 Knitted or crocheted fabric, not elastic or rub­
                                                                               berized.
Whereas, since the Kingdom of Belgium, the Kingdom of
the Netherlands and the Grand Duchy of Luxembourg are              2. For the purposes of this Regulation :
united in and jointly represented by the Benelux Economic
Union, any transaction in connection with the administra­          (a) 'processing work' means:
tion of the shares allocated to that economic union may be
carried out by any one of its inembers,                                — for the purposes of paragraph 1 (a ) and (c):
                                                                           bleaching, dyeing, printing, flocking, impregnat­
                                                                           ing, dressing and other work which changes the
                                                                           appearance or quality of the goods, without how­
                                                                           ever changing their nature,
HAS ADOPTED THIS REGULATION :
                                                                       — for the purposes of paragraph 1 (b): twisting or
                                                                           throwing, cabling and texturizing, whether or not
                                                                           combined with reeling, dyeing or other work
                            Article 1
                                                                           which changes the appearance, quality or finish of
                                                                           the goods, without however changing their
                                                                           nature ;
 1 . As from 1 September 1977 and until 31 August 1978 ,
 a Community tariff quota of 1 870 000 units of account            (b) 'value added' means the difference between the value
of value added shall be opened in the European Economic                for customs purposes as defined in Regulation (EEC)
Community in respect of goods resulting from processing                No 803 /68 (*) at the time of re-importation and the
work as provided for in the arrangement with Switzerland               value for customs purposes as it would be if the pro­
on processing traffic in textiles. Such quota shall be appor­          ducts were re-imported in the state in which they
tioned as follows :
                                                                       were exported.
(a) 1 520 000 units of account for processing work on              3 . Each portion as laid down in paragraph 1 shall be di­
      woven fabrics falling within Chapters 50 to 57 of the        vided into two tranches, the first being allocated among
      Common Customs Tariff;                                       certain Member States in accordance with Article 2 ( 1 )
                                                                   and the second being used to constitute a reserve which
 (b) 123 000 units of account for twisting or throwing,            shall be common to the three categories of processing.
      cabling and texturizing (whether or not combined
      with other processing work) of yarns falling within         4. Within this tariff quota, the Common Customs Tariff
      Chapters 50 to 57 of the Common Customs Tariff;
                                                                  duties shall be totally suspended.
(c) 227 000 units of account for processing work on               5 . Re-imports of products resulting from this processing
     articles falling within the following headings of the        work may not be charged to the tariff quota if they are al­
     Common Customs Tariff:                                       ready free of customs duties under other preferential tariff
                                                                  arrangements.
     58.04 Woven pile fabrics and chenille fabrics (other
             than terry towelling or similar terry fabrics of
             cotton falling within heading No 55.08 and
             fabrics falling within heading No 58.05 );            0) OJ No L 148 , 28 . 6. 1968, p. 1 .
 ---pagebreak---   No L 142/8                             Official Journal of the European Communities                                     9. 6 . 77
                            Article 2                                                         Article 3
 1 . The first tranche of each portion of the quota as laid         In case of need, either in France in respect of the proces­
 down in Article 1(1 ) shall be allocated as set out below          sing work referred to in Article 1 ( 1 ) (b), or in any of the
 among the Member States listed in the above arrange­               new Member States in respect of any of the categories of
 ment; the shares, subject to Article 6, shall be valid from 1      processing work, the State concerned shall, to the extent
 September 1977 to 31 August 1978 .                                 that the reserve so permits, draw from such reserve a suffi­
                                                                    cient share of the quota.
(a) Germany :
      1 080 000 units of account, apportioned as follows :                                     Article 4
      — 850 000 units of account for processing work on
          woven fabrics falling within Chapters 50 to 57 of          1 . If a Member State has used 90% or more of one of its
           the Common Customs Tariff,                               initial shares as fixed in Article 2 ( 1 ), or of that share
                                                                    minus any portion returned to the reserve pursuant to Ar­
      — 100 000 units of account for twisting or throwing,           ticle 6, it shall forthwith, by notifying the Commission,
          cabling and texturizing (whether or not combined          draw a second share, to the extent that the relevant reserve
          with other processing work) of yarns falling               so permits, equal to 10% of its initial share, rounded up as
          within Chapters 50 to 57 of the Common Cus­               necessary to the next whole number.
          toms Tariff,
      — 130 000 units of account for processing work on
          products falling within heading Nos 58.04 , 58.05 ,        2 . If a Member State, after exhausting one of its initial
          58.07, 58.08 , 58.09 and 60.01 of the Common               shares, has used 90% or more of the second share drawn
          Customs Tariff;                                            by it, that Member States shall, in accordance with the
                                                                     conditions laid down in paragraph 1 , draw a third share
                                                                     equal to 5% of its initial share.
  (b) France:
       520 000 units of account, apportioned as follows :
                                                                    3 . If a Member State, after exhausting its second share,
      — 500 000 units of account for processing work on             has used 90% or more of the third share drawn by it, that
                                                                    Member State shall, in accordance with the same condi­
            fabrics falling within Chapters 50 to 57 of the
           Common Customs Tariff,                                   tion , draw a fourth share equal to the third.
      — 20 000 units of account for processing work on               This process shall continue to apply until the reserve is ex­
           products falling within heading Nos 58.04, 58.05 ,        hausted.
            58.07, 58.08 , 58.09 and 60.01 of the Common
            Customs Tariff:
                                                                      4 . Notwithstanding paragraphs 1 to 3 , a Member State
                                                                      may draw shares lower than those specified in those
 ( c) Italy:                                                          paragraphs if there are grounds for believing that those
                                                                      specified may not be used in full. Any Member State ap­
      20 000 units of account, i.e. half for twisting or              plying this paragraph shall inform the Commission of its
      throwing, cabling and texturizing (whether or not               grounds for so doing.
      combined with other processing work) of yarns falling
      within Chapters 50 to 57 of the Common Customs
      Tariff, and half for processing work on products fal­
      ling within heading Nos 58.04, 58.05 , 58.07, 58.08 ,
      58.09 and 60.01 of the Common Customs Tariff;                                           Article 5
                                                                    Additional shares drawn pursuant to Article 4 shall be
  (d) Benelux :                                                     valid until 31 August 1978 .
       20 000 units of account for processing work on
       threads and woven fabrics falling within Chapters 50
       to 57 or for products falling within heading Nos                                       Article 6
       58.04, 58.05 , 58.07 , 58.08 , 58.09 and 60.01 of the
       Common Customs Tariff.
                                                                    The Member States referred to in Article 2 shall, not later
                                                                    than 1 July 1978 , return to the reserve the unused portion
                                                                    of their initial share which, on 15 June 1978 , is in excess of
  2 . The second tranche which amounts to 230 000 units             20% of the initial volume. They may return a greater por­
  of account shall constitute a Community reserve which             tion if there are grounds for believing that it may not be
  may be used for the three categories of processing.               used in full .
 ---pagebreak---  9 . 6 . 77                             Official Journal of the European Communities                              No L 142/9
Member States shall, not later than 1 July 1978 , notify the      charged without interruption against their accumulated
Commission of the total quantities of the product in ques­         shares of the quota.
tion re-imported up to and including 15 June 1978 and
charged against the Community quota and of any portion            2. Every Member State shall administer its shares by a
of their initial quotas returned to the reserve.                  system of prior allocation. It shall ensure that all persons
                                                                  established in its territory involved in the processing traf­
                                                                  fic have free access to the shares allocated to it.
                          Article 7
                                                                  3 . The extent to which a Member State has used up its
The Commission shall keep an account of the shares                 shares shall be determined on the basis of the value added,
opened by the Member States pursuant to Articles 2, 3 and          as established when upon re-importation the products
                                                                   concerned are entered with the customs authorities for
4 and shall as soon as the information reaches it, inform
each State of the extent to which the reserve has been used        home use.
up .
                                                                                              Article 9
 It shall, not later than 5 July 1978 , inform the Member
States of the amounts still in reserve following any return
of shares pursuant to Article 6.                                   At the request of the Commission, the Member States
                                                                   shall inform it of re-importations charged against their
                                                                   shares.
 It shall ensure that when an amount exhausting this re­
 serve is drawn the amount so drawn does not exceed the
 balance available, and to this end shall notify the amount
                                                                                             Article 10
 of that balance to the Member State making the last draw­
ing.
                                                                   Member States and the Commission shall cooperate
                                                                   closely to ensure that this Regulation is complied with.
                          Article 8
                                                                                             Article 11
 1 . Member States shall take all appropriate measures to
 ensure that additional shares drawn pursuant to Article 4         This Regulation shall enter into force on 1 September
 are opened in such a way that re-importation may be               1977 .
                This Regulation shall be binding in its entirety and directly applicable in all Member States.
                Done at Brussels, 17 May 1977.
                                                                                       For the Council
                                                                                         The President
                                                                                            J. SILKIN