31977R1179

No L 142/6 9. 6 . 77 Official Journal of the European Communities

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, requirements which may arise in certain Member States in (c) 77 000 units of account for processing work on pro­ respect of processing work for which no initial share of the ducts falling within heading Nos 58.04, 58.05 , 58.07, 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

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 58.07 Chenille yarn (including flock chenille yarn), period; whereas this form of administration requires close collaboration between the Member States and the Com­ gimped yarn (other than metallized yarn of heading No 52.01 and gimped horsehair yarn); mission, and the Commission must be in a position to braids and ornamental trimmings in the piece; keep account of the extent to which the quota has been tassels, pompons and the like; used up and to inform the Member States accordingly; 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 which changes the appearance, quality or finish of Article 1 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 .

No L 142/8 Official Journal of the European Communities 9. 6 . 77

Article2¶

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 1 . If a Member State has used 90% or more of one of its woven fabrics falling within Chapters 50 to 57 of 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 2 . If a Member State, after exhausting one of its initial products falling within heading Nos 58.04 , 58.05 , shares , has used 90% or more of the second share drawn 58.07, 58.08 , 58.09 and 60.01 of the Common by it, that Member States shall, in accordance with the Customs Tariff; 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, has used 90% or more of the third share drawn by it, that — 500 000 units of account for processing work on Member State shall , in accordance with the same condi­ fabrics falling within Chapters 50 to 57 of the tion , draw a fourth share equal to the third. Common Customs Tariff,

— 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 , Article 5 58.09 and 60.01 of the Common Customs Tariff;

Additional shares drawn pursuant to Article 4 shall be valid until 31 August 1978 . ( d) Benelux :

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 .

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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 shares shall be determined on the basis of the value added, The Commission shall keep an account of the shares as established when upon re-importation the products opened by the Member States pursuant to Articles 2, 3 and concerned are entered with the customs authorities for 4 and shall as soon as the information reaches it, inform home use. each State of the extent to which the reserve has been used up . Article 9 It shall, not later than 5 July 1978 , inform the Member States of the amounts still in reserve following any return At the request of the Commission, the Member States of shares pursuant to Article 6. 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