31974R1769

10 . 7 . 74 Official Journal of the European Communities No L 186/ 1

I

(Acts whose publication is obligatory)

REGULATION ( EEC) No 1769/ 74 OF THE COUNCIL of 25 June 1974 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 heading Nos 58.04 and 60.01 by drawing a total of COMMUNITIES, 300 000 units of account from the share of the quota allocated to the Benelux countries for all processing operations and also from the shares allocated to Having regard to the Treaty establishing the European certain other Member States in respect of the Economic Community, and in particular Article 113 processing of textile fabrics and yarns falling within thereof ; Chapters 50 and 57 of the Common Customs Tariff ; whereas the Community tariff quota in question should be opened for the period 1 September 1974 to Having regard to the proposal from the Commission ; 31 August 1975 in accordance with the provisions laid down in the above arrangement, as amended ; Whereas on 1 August 1969 the Community concluded an arrangement with Switzerland on processing traffic in textiles ; whereas under that arrangement the Community undertook to open on 1 Whereas provision should be made in particular to September of every year an annual duty-free Commu­ ensure equal and continuous access for those nity tariff quota for processed goods of 1 870 000 concerned with this quota and consistent application units of account of added value, apportioned as follows : of the rate of duty prescribed for the said quota until the quota is exhausted, to all goods re-imported into any of the Member States and which have received (a) 1 650 000 units of account for processing work on one or other of the treatments listed above ; whereas woven fabrics falling within Chapters 50 to 57 of in the light of these principles arrangements for the the Common Customs Tariff ; utilization of the quota based on an allocation among the Member States would seem to be consistent with (b) 143 000 units of account for the twisting or the Community character of the said quota ; whereas, throwing, cabling and texturizing (whether or not it therefore seems appropriate to make the allocation combined with other processing work) of yarns on the basis of the amount of the traffic under the falling within Chapters 50 to 57 of the Common previous bilateral agreements, but without precluding Customs Tariff ; participation by Member States not previously involved in such traffic, among which the new (c) 77 000 units of account for processing work on Member States are included ; whereas, to safeguard the products falling within heading Nos 58.04, 58.05, Community character of the quota, provision should 58.07, 58.08 , 58.09 and 60.01 of the Common be made to meet requirements which may arise in Customs Tariff ; those Member States in the future permitting them to draw on the reserve in accordance with the system laid down in Article 3 ; Whereas in order that the apportionment of the quota among the three categories referred to above may correspond more closely with actual trade flows during the reference year it has been decided by joint agreement to raise to 377 000 units of account the Whereas to take account of future trends in the traffic amount of 77 000 units of account set aside for the in question in the various Member States, the total processing of products falling within certain tariff quota volume of 1 870 000 units of account should be headings in the Common Customs Tariff between divided into two tranches, the first being allocated

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among certain Member States and the second held as (b) 1 23 000 units of account for twisting or throwing, a reserve to cover the subsequent requirements of cabling and texturizing (whether or not combined Member States which have exhausted their initial with other processing work) of yarns falling within share and also, requirements which may arise in Chapters 50 to 57 of the Common Customs certain Member States in respect of processing work Tariff ; for which no initial share of the quota was allocated ; whereas in order to give the parties concerned in each (c) 377 000 units of account for processing work on Member State some degree of certainty it would seem articles falling within the following headings of the Common Customs Tariff : appropriate to fix the first tranche of the Community quota at a relatively high level , namely some 90 % of 58.04 Woven pile fabrics and chenille fabrics the full amount of the quota ; whereas the reserve, (other than terry towelling or similar terry approximately 10 % , should be appropriated to each fabrics of cotton falling within heading No category of work in accordance with terms of the 55.08 and fabrics falling within heading No arrangement in question ; 58.05) ; Whereas the Member States may exhaust their initial 58.05 Narrow woven fabrics, and narrow fabrics shares at different rates ; whereas to avoid disruption (bolduc) consisting of warp without weft of supplies on this account it should be provided that assembled by means of an adhesive , other any Member State which has almost used up one of its than goods falling within heading No initial shares should draw an additional share from the 58.06 ; relevant reserve ; whereas each time its additional share is almost exhausted a Member State should draw 58.07 Chenille yarn (including flock chenille a further share , and so on , as many times as the yarn), gimped yarn (other than metallized reserve allows ; whereas the initial and additional yarn of heading No 52.01 and gimped horsehair yarn ) ; braids and ornamental trim­ shares should be valid until the end of the quota mings in the piece ; tassels, pompons and period ; whereas this form of administration requires close collaboration between the Member States and the like ; the Commission , and the Commission must be in a 58.08 Tulle and other net fabrics (but not position to keep account of the extent to which the including woven , knitted or crocheted quota has been used up and to inform the Member fabrics), plain ; States accordingly ; 58.09 Tulle and other net fabrics (but not Whereas if at a given date during the quota period a including woven , knitted or crocheted considerable quantity of a Member State's initial share fabrics), figured ; hand or mechanically remains unused it is essential , to prevent a part of the made lace , in the piece , in strips or in quota from remaining unused in one Member State motifs ; while it could be used in others, that such State 60.01 Knitted or crocheted fabric , not elastic nor should return a significant proportion thereof to the rubberized . reserve ; 2 . For the purposes of this Regulation : Whereas, since the Kingdom of Belgium , the Kingdom of the Netherlands and the Grand Duchy of (a) ' processing work' means : Luxembourg are united in and jointly represented by the Benelux Economic Union , any transaction in — for the purposes of paragraph 1 (a) and (c) : connection with the administration of the shares allo­ bleaching, dyeing, printing, flocking, impreg­ cated to that Economic Union may be carried out by nating, dressing and other work which changes any one of its Members , the appearance or quality of the goods, without however changing their nature ; HAS ADOPTED THIS REGULATION : — for the purposes of paragraph 1 (b) : twisting or throwing, cabling and texturizing, whether or Article 1 not combined with reeling, dyeing or other work which changes the appearance , quality or 1 . As from 1 September 1974 and until 31 August finish of the goods, without however changing 1975, a Community tariff quota of 1 870 000 units of their nature . account of value added shall be opened in the Euro­ (b) 'value added ' means : the difference between the pean Economic Community in respect of goods value for customs purposes as defined in Regula­ resulting from processing work as provided for in the tion ( EEC) No 803 / 68 (') at the time of re-importa­ arrangement with Switzerland on processing traffic in tion and the value for customs purposes as it textiles . Such quota shall be apportioned as follows : would be if the products were re-imported in the (a) 1 370 000 units of account for processing work on state in which they were exported . woven fabrics falling within Chapters 50 to 57 of the Common Customs Tariff ; (>) OJ No L 148 , 28 . 6 . 1968 , p. 1 .

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3 . Each portion as laid down in paragraph 1 shall 58.07, 58.08 , 58.09 and 60.01 of the Common be divided into two tranches, the first, of approxi­ Customs Tariff : mately 90 % , being allocated among certain Member States in accordance with Article 3 and the second, of (d) Benelux : approximately 10 % , to constitute the reserve. 20 000 units of account for processing work on threads and woven fabrics falling within Chapters 4. Within this tariff quota, the Common Customs 50 to 57 or for products falling within heading Tariff duties shall be totally suspended . Nos 58.04 , 58.05 , 58.07 , 58.08 , 58.09 and 60.01 of the Common Customs Tariff . Within this tariff quota, the new Member States shall apply duties calculated in accordance with the rele­ 2. The second tranche of each of the portions of vant provisions of the Act of Accession . the quota as fixed in Article 1 ( 1 ) — 150 000 , 13 000 and 57 000 units of account respectively — shall constitute the reserves . Article 2

1 . The first tranche of each portion of the quota as Article 3 laid down in Article 1 ( 1 ) shall be allocated as set out below among the Member States listed in the above In case of need, either in France in respect of the arrangement ; the shares, subject to Article 6, shall be processing work referred to in Article 1 ( 1 ) (b), or in valid from 1 September 1974 to 31 August 1975 : any of the new Member States in respect of any of the categories of processing work, the State concerned (a) Germany : shall , to the extent that the reserve so permits, draw from such reserve a sufficient share of the relevant 1 010 000 units of account, apportioned as quota . follows :

— 780 000 units of account for processing work on woven fabrics falling within Chapters 50 to Article 4 57 of the Common Customs Tariff ; — 100 000 units of account for twisting or 1 . If a Member State has used 90 % or more of one throwing, cabling and texturizing (whether or of its initial shares as fixed in Article 2 ( 1 ), or of that not combined with other processing work) of share minus any portion returned to the reserve yarns falling within Chapters 50 to 57 of the pursuant to Article 6, it shall forthwith , by notifying Common Customs Tariff ; the Commission draw a second share , to the extent that the relevant reserve so permits, equal to 10 % of — 130 000 units of account for processing work its initial share, rounded up as necessary to the next on products falling within heading Nos 58.04, whole number . 58.05, 58.07, 58.08 , 58.09 and 60.01 of the Common Customs Tariff ; 2 . If a Member State, after exhausting one of its (b) France : initial shares, has used 90 % or more of the second share drawn by it, that Member States shall , in accor­ 600 000 units of account, apportioned as follows : dance with the conditions laid down in paragraph 1 , draw a third share equal to 5 % of its initial share . — 430 000 units of account for processing work on fabrics falling within Chapters 50 to 57 of 3 . If a Member State, after exhausting its second the Common Customs Tariff ; share, has used 90 % or more of the third share drawn — 170 000 units of account for processing work by it, that Member State shall , in accordance with the on products falling within heading Nos 58.04, same condition , draw a fourth share equal to the third . 58.05 , 58.07, 58.08 , 58.09 and 60.01 of the Common Customs Tariff ; This process shall continue to apply until each reserve is exhausted . (c) Italy : .

20 000 units of account, i.e. half for twisting or 4. Notwithstanding paragraphs 1 to 3 , a Member throwing, cabling and texturizing (whether or not State may draw shares lower than those specified in combined with other processing work) of yarns those paragraphs if there are grounds for believing falling within Chapters 50 to 57 of the Common that those specified may not be used in full . Any Customs Tariff, and half for processing work on Member State applying this paragraph shall inform products falling within heading Nos 58.04, 58.05, the Commission of its grounds for so doing.

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Article5¶

Additional shares drawn pursuant to Article 4 shall be 1 . Member States shall take all appropriate valid until 31 August 1975. measures to ensure that additional shares drawn pursuant to Article 4 are opened in such a way that Article 6 re-importation may be charged without interruption against their accumulated shares of the quota. A Member State which on 15 May 1975 has not exhausted one or other of its initial shares, as fixed in 2 . Every Member State shall administer its shares Article 2 ( 1 ) or arising from the application of Article by a system of prior allocation . It shall ensure that all 3 , shall , not later than 10 June 1975 , return to the rele­ persons established in its territory involved in the vant reserve the unused portion in excess of 20 % of processing traffic have free access to the shares allo­ the initial amount. It may return a greater portion if cated to it . there are grounds for believing that it may not be used in full . 3 . The extent to which a Member State has used up its shares shall be determined on the basis of the value Member States shall not later than 10 June 1975 notify the Commission of the total quantities of the added, as established when upon re-importation the products concerned are entered with the customs product in question re-imported up to and including authorities for home use . 15 May 1975 and charged against the Community quota and of any portion of their initial quotas returned to the relevant reserve . Article 9

Article 7 Member States shall inform the Commission at regular intervals of re-importations charged against The Commission shall keep an account of the shares their shares . opened by the Member States pursuant to Articles 2, 3 and 4 and shall as soon as the information reaches it, inform each State of the extent to which the reserves Article 10 have been used up . It shall, not later than 15 June 1975, inform the Member States and the Commission shall cooperate Member States of the amounts still in reserve closely to ensure that this Regulation is complied with . following any return of shares pursuant to Article 6 .

It shall ensure that when an amount exhausting one of the reserves is drawn the amount so drawn does not Article 11 exceed the balance available, and to this end shall notify the amount of that balance to the Member State This Regulation shall enter into force on 1 September making the last drawing. 1974 .

This Regulation shall be binding in its entirety and directly applicable in all Member States .

Done a Luxembourg, 25 June 1974 .

For the Council

The President

H. D. GENSCHER