31976R1642

8 . 7 . 76 Official Journal of the European Communities No L 182/3

COUNCIL REGULATION ( EEC) No 1642/ 76 of 29 June 1976 on the opening , allocation and administration of a Community tariff quota for processing work in respect of certain textile products under Community outward processing arrrangements

THE COUNCIL OF THE EUROPEAN in the light of these principles arrangements for the COMMUNITIES , utilization of the quota based on an allocation among the Member States would seem to be consistent with Having regard to the Treaty establishing the European the Community character of the said quota ; whereas, Economic Community, and in particular Article 113 it therefore seems appropriate to make the allocation thereof, on the basis of the amount of the traffic under the previous bilateral agreements, but without precluding Having regard to the proposal from the Commission , participation by Member States not previously involved in such traffic, among which the new Member States are included ; whereas, to safeguard the Whereas on 1 August 1969 the Community Community character of the quota, provision should concluded an arrangement with Switzerland on be made to meet requirements which may arise in processing traffic in textiles ; whereas under that arran­ those Member States in the future permitting them to gement the Community undertook to open on 1 draw adequate amounts from the Community reserve ; September of every year an annual duty-free Commu­ nity tariff quota for processed goods of 1 870 000 units of account of added value , apportioned as follows : Whereas to take account of future tends in the traffic in question in the various Member States, the total (a) 1 650 000 units of account for processing work on quota volume of 1 870 000 units of account should be woven fabrics falling within Chapters 50 to 57 of divided into two tranches, the first being allocated the Common Customs Tariff ; among certain Member States and the second held as a reserve to cover the subsequent requirements of (b) 143 000 units of account for the twisting or Member States when one of their initial shares has throwing, cabling and texturizing (whether or not been exhausted and also requirements which may combined with other processing works) of yarns arise in certain Member States in respect of processing falling within Chapters 50 to 57 of the Common work for which no initial share of the quota was allo­ Customs Tariff ; cated ; whereas in order to give the parties concerned (c) 77 000 units of account for processing work on in each Member State some degree of certainty it products falling within heading Nos 58.04, 58.05, would seem appropriate to fix the first tranche of the 58.07, 58.08 , 58.09 and 60.01 of the Common Community quota at a relatively high level, namely Customs Tariff ; 1 640 000 units of account ; whereas the total Commu­ nity reserve of 230 000 units of account shall consist Whereas, in order that the division of the whole quota of amounts drawn from the allocations in respect of each category, that is 160 000, 13 000 and 57 000 into the three categories referred to above shall corres­ units of account respectively ; pond more exactly with the actual movement of trade during the reference year or during previous quota periods as well as with the foreseeable movement of trade during future quota periods, it has been decided Whereas the Member States may exhaust their initial to adjust the said allocation between the three catego­ shares at different rates ; whereas to avoid disruption ries by giving them 1 520 000 , 1 23 000 and 227 000 of supplies on this account it should be provided that units of account respectively ; whereas the Commu­ any Member State which has almost used up one of its nity tariff quota in question should be opened for the initial shares should draw an additional share from the period 1 September 1976 to 31 August 1977 reserve ; whereas each time its additional share is according to the provisions laid down in the arrange­ almost exhausted a Member State should draw a ment specified above, and in amendments to it ; further share, and so on, as many times as the reserve allows ; whereas the initial and additional shares Whereas provision should be made in particular to should be valid until the end of the quota period ; ensure equal and continuous access for those whereas this form of administration requires close concerned with this quota and consistent application collaboration between the Member States and the of the rate of duty prescribed for the said quota until Commission, and the Commission must be in a posi­ the quota is exhausted, to all goods reimported into tion to keep account of the extent to which the quota any of the Member States and which have received has been used up and to inform the Member States one or other of the treatments listed above ; whereas accordingly ;

No L 182/4 8 . 7 . 76 Official Journal of the European Communities

Whereas if at a given date during the quota period a 58.09 Tulle and other net fabrics (but not considerable quantity of a Member State's initial share including woven, knitted or crocheted remains unused it is essential , to prevent a part of the fabrics), figured ; hand or mechanically quota from remaining unused in one Member State made lace, in the piece, in strips or in while it could be used in others, that such State motifs, should return a significant proportion thereof to the 60.01 Knitted or crocheted fabric, not elastic or reserve ; rubberized . Whereas, since the Kingdom of Belgium , the 2. For the purposes of this Regulation : Kingdom of the Netherlands and the Grand Duchy of Luxembourg are united in and jointly represented by (a) 'processing work' means : the Benelux Economic Union, any transaction in connection with the administration of the shares allo­ — for the purposes of paragraph 1 (a) and (c) : 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 not combined with reeling, dyeing or other Article 1 work which changes the appearance, quality or finish of the goods, without however changing 1 . As from 1 September 1976 and until 31 August their nature ; 1977, a Community tariff quota of 1 870 000 units of (b) 'value added' means the difference between the account of value added shall be opened in the Euro­ value for customs purposes as defined in Regula­ pean Economic Community in respect of goods tion (EEC) No 803/68 (') at the time of reimporta­ resulting from processing work as provided for in the tion and the value for customs purposes as it agreement with Switzerland on processing traffic in would be if the products were reimported in the textiles . Such quota shall be apportioned as follows : state in which they were exported. (a) 1 520 000 units of account for processing work on woven fabrics falling within Chapters 50 to 57 of 3 . Each portion as laid down in paragraph 1 shall the^ Common Customs Tariff ; be divided into two tranches, the first being allocated among certain Member States in accordance with (b) 1 23 000 units of account for twisting or throwing, Article 2 and the second, being used to constitute a cabling and texturizing (whether or not combined reserve which shall be common to the three categories with other processing work) of yarns falling within of processing. Chapters 50 to 57 of the Common Customs Tariff ; 4. Within this tariff quota, the Common Customs Tariff duties shall be totally suspended. (c) 227 000 units of account for processing work on articles falling within the following headings of the Common Customs Tariff : Within this tariff quota, the new Member States shall apply duties calculated in accordance with the rele­ 58.04 Woven pile fabrics and chenille fabrics vant provisions of the Act of Accession . (other than terry towelling or similar terry fabrics of cotton falling within heading No 55.08 and fabrics falling within heading No Article 2 58.05), 58.05 Narrow woven fabrics, and narrow fabrics 1 . The first tranche of each portion of the quota as (bolduc) consisting of warp without weft laid down in Article 1 ( 1 ) shall be allocated as set out assembled by means of an adhesive, other below among the Member States listed in the above than goods falling within heading No arrangement the shares, subject to Article 6, shall be 58.06, valid from 1 September 1976 to 31 August 1977. 58.07 Chenille yarn (including flock chenille (a) Germany : yarn), gimped yarn (other than metallized yarn of heading No 52.01 and gimped 1 080 000 units of account, apportioned as horsehair yarn ) ; braids and ornamental trim­ follows : mings in the piece : tassels , pompons and — 850 000 units of account for processing work the like , on woven fabrics falling within Chapters 50 to 58.08 Tulle and other net fabrics (but not 57 of the Common Customs Tariff, including, woven , knitted or crocheted fabrics), plain (a), (') OJ No L 148 , 28 . 6 . 1968 , p. 1 .

8 . 7 . 76 No L 182/ 5 Official Journal of the European Communities

— 100 000 units of account for twisting or its initial share, rounded up as necessary to the next throwing, cabling and texturizing (whether or whole number. not combined with other processing work) of yarns falling within Chapters 50 to 57 of the 2. If a Member State, after exhausting one of its Common Customs Tariff, initial shares, has used 90 % or more of the second share drawn by it, that Member State shall, in accor­ — 130 000 units of account for processing work dance with the conditions laid down in paragraph 1 , on products falling within heading Nos 58.04, draw a third share equal to 5 % of its initial share. 58.05, 58.07, 58.08 , 58.09 and 60.01 of the Common Customs Tariff ; 3 . If a Member State , after exhausting its second share, has used 90 % or more of the third share drawn (b) France : by it, that Member State shall , in accordance with the 520 000 units of account, apportioned as follows : same condition, draw a fourth share equal to the third. — 500 000 units of account for processing work This process shall continue to apply until the reserve on fabrics falling within Chapters 50 to 57 of is exhausted . the Common Customs Tariff, — 20 000 units of account for processing work on 4. Notwithstanding paragraphs 1 to 3, a Member products falling within heading Nos 58.04, State may draw shares lower than those specified in 58.05 , 58.07, 58.08 , 58.09 and 60.01 of the those paragraphs if there are grounds for believing Common Customs Tariff ; that those specified may not be used in full . Any Member State applying this paragraph shall inform (c) Italy : the Commission of its grounds for so doing. 20 000 units of account, i.e. half for twisting or throwing, cabling and texturizing (whether or not Article 5 combined with other processing work) of yarns falling within Chapters 50 to 57 of the Common Additional shares drawn pursuant to Article 4 shall be Customs Tariff, and half for processing work on valid until 31 August 1977 . products falling within heading Nos 58.04, 58.05, 58.07, 58.08 , 58.09 and 60.01 of the Common Customs Tariff ; Article 6

(d) Benelux : The Member States referred to in Article 2 shall , not 20 000 units of account for processing work on later than 1 July 1977, return to the reserve the threads and woven fabrics falling within Chapters unused portion of their initial share which, on 15 50 to 57 or for products falling within heading June 1977, is in excess of 20 % of the initial volume. Nos 58.04, 58.05 , 58.07 , 58.08 , 58.09 and 60.01 of They may return a greater portion if there are grounds the Common Customs Tariff. for believing that it may not be used in full .

2 . The second tranche which amounts to 230 000 Member States shall not later than 1 July 1977 notify the Commission of the total quantities of the product units of account shall constitute a Community reserve in question reimported up to and including 15 June which may be used for the three categories of 1977 and charged against the Community quota and processing. of any portion of their initial quotas returned to the reserve . Article 3 Article 7 In case of need, either in France in respect of the processing work referred to in Article 1 ( 1 ) (b), or in The Commission shall keep an account of the shares any of the new Member States in respect of any of the opened by the Member States pursuant to Articles 2, 3 categories of processing work, the State concerned and 4 shall as soon as the information reaches it, shall , to the extent that the reserve so permits, draw inform each State of the extent to which the reserve from such reserve a sufficient share of the quota . has been used up .

It shall, not later than 5 July 1977, inform the Article 4 Member States of the amounts still in reserve following any return of shares pursuant to Article 6. 1 . If a Member State has used 90 % or more of one of its initial shares as fixed in Article 2 ( 1 ), or of that It shall ensure that when an amount exhausting this share minus any portion returned to the reserve reserve is drawn the amount so drawn does not exceed pursuant to Article 6 , it shall forthwith , by notifying the balance available , and to this end shall notify the the Commission draw a second share , to the extent amount of that balance to the Member State making that the relevant reserve so permits, equal to 10 % of the last drawing.

No L 182/ 6 8 . 7 . 76 Official Journal of the European Communities

Article8¶

1 . Member States shall take all appropriate At the request of the Commission , the Member States measures to ensure that additional shares drawn shall inform it of reimportations charged against their pursuant to Article 4 are opened in such a way that shares . reimportation may be charged without interruption against their accumulated shares of the quota . Article 10 2. Every Member State shall administer its shares by a system of prior allocation . It shall ensure that all Member States and the Commission shall cooperate persons established in its territory involved in the closely to ensure that this Regulation is complied processing traffic have free access to the shares allo­ with . cated to it .

3 . The extent to which a Member States has used up its shares shall be determined on the basis of the Article 11 value added , as established when upon reimportation the products concerned are entered with the customs This Regulation shall enter into force on 1 September authorities for home use . 1976 .

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

Done at Luxembourg, 29 June 1976.

For the Council

The President

G. THORN