title: RECOMMENDATION FOR A COUNCIL REGULATION CONCERNING THE CONCLUSION OF THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE PEOPLE'S REPUBLIC OF BANGLADESH ON TRADE IN JUTE PRODUCTS (presente by the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 408
Vol. 1980/0143
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                         COM(80)408 final
                                         Brussels , 22nd July 1980
                 RECOMMENDATION FOR A COUNCIL REGULATION
         CONCERNING THE CONCLUSION OF THE AGREEMENT BETWEEN THE
          EUROPEAN ECONOMIC COMMUNITY AND THE PEOPLE 'S REPUBLIC
                OF BANGLADESH ON TRADE IN JUTE PRODUCTS
                                   / >• r>          Hï\
             ( presente by the Commission to the   Council)
                                   \
  C0MC80 ) 408 final
 ---pagebreak---                                                   ·'·*»' , ·"· "         . ,ν.^" ··   · ν·     - · ·, .
                           EXPLANATORY MEMORANDUM
1.    The Agreement between the Community and Bangladesh on trade in jute
products , which came into force on 1 January      1976 . expired on 31 December 1979 .                       ,
                                        '               /                                                     ί
                                                                          ·                                   { ·
                                                -                . . ■                     ^                  <
     To determine the arrangements for imports of jute products from
1 January 1980 , the Council authorised the Commission by a decision of
23 November 1979 to open negotiations with Bangladesh for the conclusion
of a new Agreement .
                                                                                t.
2.   Pursuant to this decision and in consultation with the Art-icle 113
Committee , negotiations were held in November 1979 and March 1980 and
resulted in the initialling of a draft Agreement by both Heads of                                          J'
Delegation on 26 March 1980 .         '                                                                         ,
     The main provisions of the new Agreement are as follows :
     (i)      Duration of -four years (1 January 1980 to 3'! December 1983 );                           ■      |
     ( ii )   Bangladesh will voluntarily restrict its exports to the Community
              of certain jute fabrics to agreed levels ( categories 4 and 7 );
                                                                                \
     ( iii )  the establishment of a consultation procedure in respect of jute                                 '
                                                                                . 1
              fibres ( category 6 ), which are not subject to import restrictions ,
              to enable such restrictions to    be introduced under certain
              conditions ;                                                                                j
     ( iv )   provisions to ensure flexibility in the quantitative limits fixed                               •
              ( carryover , advance delivery and transfer);                                    .            .!-
 ■ :                                                                   .     . '    ■   .. . : \              '•
     ( v) .   continuation of total suspension of CCT duties on all jute products'
            - by the Community as part Of 1t3 Offer on generalised tariff pref
              erences ;                                                                                !
     tvl )    assurances by Bangladesh that it will provide on non-discriminatory
              terms the jute products necessary to supply the Community market
              and industry ;
                   i                                                                                i     -
 ---pagebreak---                                  -   2
( vii )     definition of the terms of reference of the Joint Cooperation
            Committee with a view, inter alia , to examining the possibilities
            and formulating suggestions regarding research and development
            cooperation in the production and use of the products in question ;
( viii )    an undertaking by the Community to abolish all quantitative
            restrictions on imports of jute products originating in Bangladesh
            on expiry of the Agreement , namely on 1 January 1984 .
3.      The Commission considers the draft Agreement which has the approval
of the Article 113 Committee , an acceptable result for the Community . It
therefore recommends that the Council approve this Agreement by adopting the
regulation of which a draft is annexed hereto.
        An exchange of Note Verba les in which the two parties have agreed to
the de facto application of the provisions of the Agreement from 1 May 1980 ,
pending the completion of 'the procedures necessary to its formal entry into
force is also annexed for the Council 's information .
 ---pagebreak---                        RECOMMENDATION FOR A COUNCIL REGULATION
               concerning the conclusion of the Agreement between the
               European Economic Community and the People 's Republic of
               Bangladesh orj trade in jute products
THE gOUNCIL OF THE EUROPEAN      COMMUNITIES /
Having regard to the Treaty establishing the European Economic Community / and
in particular Article 113 thereof /
Having regard to the Recommendation from the Commission/
Whereas the Agreement on trade in jute products between the European Economic
Community and the People 's Republic of Bangladesh should be approved :
HAS ADOPTED THIS REGULATION :
                                    Article 1
The Agreement between the European Economic Community      and the People 's Republic
of Bangaldesh on trade in jute products is hereby approved on behalf of the
                            .                                                /
                 .... Community.
The text of the Agreement is annexed to this Regulation .
                                    Article 2
The President of the Council shall notify the other Contracting Party of the
completion of the procedures - necessary for the    entry into force of the AgreementCD
                                    Article 3
This Regulation shall enter into force on the third day following its publication
in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .                                                                   "
Done at - Brussels /                                      For the Council
                                                            The President
(1)
    The date of entry into force of this Agreement will be published in the Official
Journal of the European Communities by the General Secretariat of the Council . >
 ---pagebreak---                                AGREERENT
                                      « .
   between the European Economic Community and the People 's Republic of
  BangLadesh on trade in jute products '
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
    I-               '
  of the one part , and
  THE GOVERNMENT OF THE PEOPLE 'S REPUBLIC OF BANGLADESH
  of the other party ,
  NOTING the Joint Declaration of Intent on the' development of trade relations
  with Ceylon ( now Sri Lanka ), India , Malaysia , Pakistan ( now Bangladesh and
  Pakistan ) and Singapore , annexed to the Final Act of the Treaty of Accession of
  the Kingdom of Denmark , Ireland, the Kingdom of Norway and the United Kingdom
  of Great Britain and Northern Ireland to the European Economic Community and
  the European Atomic Energy Community, of 22 January 1972 ,
 HAVING REGARD to the Commercial Cooperation Agreement between the People 's
 Republic of Bangladesh and the Community,
   CONSCIOUS of the provisions of the General Agreement on Tariffs and Trade
   CONSCIOUS of the particular importance of the production and export of
   jute and jute products for the economy of the People 's Republic of Bangla
. desh , '
    DZSI30US of ensuring an increasing use of jute products and the orderly
   development of trade in jute products between the European Economic Commu
   nity , hereinafter referre4 to as "the Community". and the People 's Republ
   of Bangladesh .
   BELIEVING that it is necessary to encourage and facilitate contacts and
   cooperation between their respective jute interests ,
   STRESSING the need for promoting cooperation in research and development in
   the jute sector ,
   HAVE DECIDED , in a spirit of mutual cooperation , to conclude this Agreement .
 ---pagebreak---                           Article    1
       This Agreement shall apply to manufactured jute products ^o r igin3ti
■ in spd coming from Bangladesh ^ as defined in Annex A.
 ---pagebreak---                                                                           /
                                                                          Ρ
                    Article 2
     For the duration of this Agreement and within the framework of its
offer on generalised tariff preferences , the Community shall apply
autonomously to the manufactured jute products set out in Annex     and
originating in and coming from Bangladesh             v(suspended^)duties
of the Common Customs Tarifr^at the rate of zero .
 ---pagebreak---                                                                 " -           '     ν
                                                             ■      .     -     ,  '+
                                         Article 3 *.  ' . '
 1.    "j^he Community shall not subj ect " imports of products defined under
 Article 1 to new quantitative restrictions .
 2.    The Community shall suspend the existing quantitative restrictions'
 on t"^§ imports of the products defined in Annex C provided that the Government
 of Bangladesh applies such measures as are necessary to keep its exports            •
 within the quantitative limits set out in this Annex . The Community undertakes
 to take all appropriate steps in order to facilitate and encourage the ful I
 utilisation of the agreed quotas .                            ■ ,          .
 3.    The Community shall not object to the limits allocated in Annex C
                                                                f
 being exceeded in the event of additional demand developing on the market
of the Community/ taking(§Ts£ into account^the ' level, of the imports into
 the Community of raw jute > on the understanding that any additional quantity
 shall be fixed by mutual agreement between the Parties .
                               Φ
A.     Quantities set out in Annex C not taken up by any one Member State of the
Community may be used in-another Member State, in accordance with the procedures
                                                                      •                I
in farce in the Community.       The . Community undertakes to consider as favourably
as conditions in the Community market allow , any request for re-allocation
made by Bangladesh and to reply to this request within four weeks of its
receipt .                                            '
                            *                                           '
5.    All quantitative restrictions on imports into the Community of jute
products originating in and coming from Bangladesh will be eliminated aSLrfrer
                 January 1984 .
 ---pagebreak---    1.    Imports into the Community of jute products covered by this Agreement
   which are intended for immediate re-export from the Community or . for processing
   and subsequent re-export outside the Community shall not be subject to the '
   quantitative limits established by this Agreement . The Community authorities
   will ascertain , under the administrative system of control in force to this .
   effect withn the Community, the quantities of jute products imported from
  Bangladesh which have been immediately re-exported, or re-exported after
  processing ,. outside the Community, and they will accordingly inform the Bangladesh
  authorities on a quarterly basis ., •
  2. In any case where the competent authorities within the Community ascertain^
  under . the administrative - system of control in force, that imports of jute
- products covered by this Agreement have been counted against the ceilings
  established under this. Agreement but have subsequently been re-exported
  from the Community, the authorities concerned will inform , on a quarterly      ,
  basis , the Bangladesh authorities of the quantities involved and will authorize
  imports of the game quantities . which shall not be counted against the ceilings
  fixed by the Agreement .                              •
  3.    In any case where the Community ascertains that, the imports referred
  to in paragraph , 1 have been retained for consumption within the Community, '
  the latter will notify the government of Bangladesh on a quarterly basis of
  the amounts involved. In such cases Bangladesh shall , at the request of the       -
                * ,      • *        ** .
 Community , count such amounts against.the quantitative limit or limits in •
 question for the current year .
 ---pagebreak---  1.   The Community shall Rot subject imports pf jute yarn to quantitative
 restrictions. However / should it consider that Bangladesh exports of jute
yarn; are seriously prejudicing conditions in its market or in the market
of any of its regions , making a limitation of further trade necessary ,
the Community may request a consultation with Bangladesh , provided that the
request for such consultation is accompanied by a statement demonstrating
the existence of the above conditions in the Community or in the region       f-
concerned .                                                1
2.    Such consultation shall be entered into within three weeks of
notification Of the request , with a view to reaching an agreement or a
mutually acceptable conclusion within two further ■weeks at the latest .    -
Should such agreement or mutually acceptable conclusion not be reached within
the specified period , the Community may introduce a quantitative limitation
in the market o ^ the Community or in the markets of the region or regions
concerned on an annual basis which shall , in any case, not be lower than the
level reached by imports of jute yarn from Bangladesh into the affected market
markets during the twelve months prbr to the date on which the request for
consultation was notified .                             ..
3.    Paragraph 5 of A rt i c le 3 i4r upp 1 1 uib I m.
 ---pagebreak---                                                                                y
                                                                                /
                             Article 6
 1.   Within any one Agreement year , the unused portions of one of the quantitative
 limitg established under this Agreement in respect of any region of the
 Community market may be transferred to another quantitative limit established
 for the same region of the Community market as follows :
          from ife Category A to tf>^ Category 7 and vice-versa , provided that
         the quantities involved do not exceed 20% of the quantitative limit
          for the Category to which the transfer is made .
2.    Unused quantities , not exceeding 10% of one annual ceiling , may be
carried over and added to the same ceiling for the following year .
3.    Each annual ceiling may be - exceeded , up to a limit of 10% of its total ,
in anticipation of the same ceiling for the following year .      Quantities used
in anticipation shall be deducted from the same ceiling of the subsequent year .
4.    The above flexibility provisions must not , in any single given Agreement
year , result in any ceiling being exceeded by more than    20% .
5.    The provisions of the pi        j paragraphs shall only be applied by Bangladesh
following written notification to the Community by the Bangladesh authorities .
 ---pagebreak---                                Article 7
    I             • -
 1. : The agreed ceilings shall be administered using a sys'tem of double-
 checking . the details for which are set out in Annex D , subject to such
                                                    /       »
 changes as may be mutually agreed .
2.    Bangladesh undertakes to inform the Community , on a six-monthly basis
of the total quantities covered by'export authorisations issued by the      '
Bangladesh authorities for all the jute products referred to in Article . 3
and , where appropriate , in Article 5 ."
3.    Similarly , the Community will inform the Bangladesh authorities , on a
six-monthly basis , of the total volume of imports into the Community of
the products in question .   ■       <
 ---pagebreak---                                                                            . i?
                            I       '      .
                                                           I
                          Article 8
             '      _                                     )
. 1.   The implementation of this Agreement shall not disrupt the normal
 trade channels between the Community and Bangladesh .
2.     Should one of the Parties inform the other that special difficulties •
have arisen in this connection , the two Parties shall consult each other
within the framework of the Joint Cooperation Committee in order to determine
the measures necessary to remedy the situation.
 ---pagebreak---                            Article 9
     Without prejudice to the policies of the Government of Bangladesh
concerning the regulation of its exports according to the production
situation and the .external' demand for the above mentioned products , Bangladesh
undertakes to take appropriate steps to ensure that the needs of .the
Community market and industries are met in a non-discriminatory' manner.
 ---pagebreak---                                    Article 10
 1.      A Joint Cooperation Committee shall be set up- and entrusted with
 the -following tasks :          .                 ' -
    . <              , ■                                  ·     ·                  ·.
         -   to arrange consultations promptly at the request of either Party
             on any matter concerning the trade in jute products in a spirit of
  /          cooperation ;
                                           •                  L
        -    to examine any problem which may arise as a result of the
             implementation of this Agreement ;
        -   to examine ways and means of increasing and diversifying the end-
            uses of jute products , including studies of the experience of     other
            markets in this regard ;
        -   to investigate possibilities / and formulate suggestions for , cooperation
            in regard to research into and development of , the production and
                                                        y
            uses of jute products ;          -      '       ,
        -   to examine the feasibility of promoting the use of jute products
           by means of publicity and marketing activities ;
        -  to develop       contacts between , and facilitate joint . projects and
           programmes mutually agreed upon by , representatives of the jute
           trade and industries of both the Community and         Bangladesh .
2.      The Joint Cooperation Committee shall be composed of representatives
of the Community and of       Bangladesh .
3.      The Joint Cooperation Committee shall, be convened at the request of
either Contracting Party and , in any case , at least once a year , and
at a place mutually agreed upon .        '      .      -
 ---pagebreak---                               Article 11
1.    This Agreement shall eQter into force on the first day of the month
following the date oh which the Parties notify each other that the •
procedures necessary for this purpose have been . completed and shall apply
from 1 January 1980 .  It shall remain in force until 31 December 1983 .
 ---pagebreak---                            ' '» 6 , c
■T he Annsxe.j -font? an -integral part of this Ao :
 ---pagebreak---                                                                                i v
                                                                               _ y 1. ~K-
                                                                                i
                             Article 13
     This Agreement shall be drawn up in two copies in the Danish , Dutch ,
English,' French , German , Italian and Bengali languages , each text being
equally authentic .
Done at Brussels ,                                      On the   26 March 1980
                                                 ι
 ---pagebreak---                                                      AMEX A
         Definition of categories of jute products covered by Article 1
Category   1         Jute fabrics weighing more than 500 g/m2 and of a '
                     width of not more than 15Q cm , and jute "bags of
                     fabric weighing more than 500 g/m2 .
Category   2         Jute fabrics weighing not less than 310 g/m2 but not
                     more than 500 g/m2 , and of a width of not more than 150 cm ,
                     and jute bags of fabrics weighing not less than 310 g/m2
                     but not more than 500 g/m2 »
Category   3         Jute fabrics weighing less than 310 g/m2 and of width of
                     not more than 150 cm , and jute bags of fabric weighing
                     less than 310 g/m2 ,
Category 4           Woven fabrics of jute , irrespective of their weight per
                     square metre / of a width more than 150 cm . but not more than
                     310 cm . other than those referred to in Category 7 .
Category 5           Woven fabrics of jute , irrespective of their weight per
                     square metre , of a width more than 310 cm , other than those
                     referred to in Category 7 , with no patent selvedges at any
                     interval throughout the width of the cloth .
Category 6           Jute yarn .
Category 7           Jute fabrics , bleached, dyed or printed , either wholly or
                      in part , of a width of more, than 150 cm . irrespective
                     of their weight per m2 with no patent selvedges at any
                      interval throughout the width of the cloth .
 ---pagebreak---                                    Tariff suspensions covered by Article 2
OCT heading                                                                   Rate of Suspension to be
              .                     Description of goods                                  applied
  No .           • >
  57. Oo       Yarn of jute or of other textile bast                                  Q
            •
                  fibres of heading So 57-03 «t
                                                           '
  57.10        Woven faurics of jutq or of other textile .                              «
                  bast fibres of heading iio 57«P3
                  A. Of a width of not more than 1 50 ca                                0 ,
                     and weighing per ir-2
                     I.    Less than 310 g                 •                       '■     *
                     II . Hot less than 310 g but not more
                           t.ica 500 g    -
                     III . More than 500 g> "            '        '
                 B. Of a width of Bare than 150 cm                 "
  62.03 ■     Sacks and bags of a kind -iced for the . packing
                  of goods                                  !' ''          •' •
                 A. Of jute or of. other textile bast fibres                •    '      0           • –
                     of heading So 57.03
                     II . Other . .                           '      ' - .                  •     •
                           ( a) Of fabrics weighing less than .
                                 310 g/m2
                           (b) Of fabric weighing Aot less
                                 than 310 g/m2 but not more than
                               ' 500 g/m2 " .                                                   ^
                           ( c) Of . fabric weighing nore than
                                 500 g/m2              *                                              •:
                 Bio Community hereby undertakes to continue to suspend customs duties on all
                 imports of packaging materials , in accordance with the provisions of the
                Customs Convention on temporary imports of packing items.
 ---pagebreak---                                           Af-ÎNEX C
         Products and quantitative Limits for which Bangladesh will exercise restraint
   towards the Commu.vity for the period during which the Agreement shall be
   applicable .  Products covered by Category 5 (as defined in Annex A} will not be
   subject to quantitative limitations .
         The Community hereby notifies Bangladesh that the quantitative limits for the •
   jute products listed below will be allocated between the Member States as
   follows :          . '
   Category 4 ( as defined in Annex A )              Quantitative limits       '       ( metric tons )
     Member State               1980                 1981         1982           1983
     Bénélux                      280                  308      •  339            , 373
  J Denmark                       285                  313 - •     3^5              379
  ! France                    1.100                 1.210      1.331          1.464 .
  | F.R.Germany                   500 , - , ,      -   550         605              666,
     Ireland                      230                  275         303      "       333
     Italy                      : 180                  198         218           "'zho
     United Kingdom               750                  823         908  ...         998
     EEC                      3.3^5                 3.679      4.049          4 . 453
   Category 7 ( as defined in Annex A )          Quantitative limits                 ( metric tons )
     Member State               1980                   1981        1982         1983
F Bénélux .                       363                  392         423             457
     Denmark               '•     356 '                384         415             448
     France                       229                  247         267             288
     F.R. G.ermany             • 410                   443   •     478             516
I    Ireland        . '            96                  1Q4         112             121
     Italy                         83                   90-         97             105
     United Kingdom               308                ~ 333 -       359        . 388
                                                               2.151,' &
| EEC                         1.845                1.993                      2.323
 ---pagebreak---                                          ANNEX 0
                        System of double checking referred to in Article 7                    . *
     1.       in 'the Community , the competent authorities shall accept , without de ! ay, imports
     of products for which quantitative limitations have been agreed upon in Article 3
     and , where appropriate in Article 5 of this Agreement , upon production of the
     importer 's request together with the original copy of the export permit ( 1 ).
    2 . , The= commpetent Bangladesh "authorities shall issue export permits for all the
    products listed in Article 3 of this Agreement within the quantitative limits .
     set out 'jn Annex C ( and in ar.y case where the, provisions of Article 5 have
    been invoked ). - :■            :                                                     V /
           '    '  Ï        '     *        '
    3.    ' The export permit must mention : - •                            •
    ( a ) ' the destination ( relevant Member State )                             '  '
    ( b)       the senal number ,                                      ,        1 .
    (c)        the name and address of the importer,                                T,            . ^
    ( d)       the name ancf address of the exporter ,
    (e)        the net weight ( in ki logrammes , or , metric' tons ) and the value, .                  >
    (f)        the category and the classification of tfje. products ( 2 ),
    (g)        the certification issued by the Bangladesh authorities stating that the quantity
              'has been debited against the agreed quantitative limits for export to the
               Community ( relevant Member State of final destination ) or , where appropriate ,
               is for immediate re-export or for . inward processing and subsequent re-export
               outside the Community ( 3 ).                                                               ,
   4.'         In the Community , the ' competent authorities shall accep 1 , within reasonable -
    limits , differences between the weight as stated in the export permit and the cargo
   weight or the imported weight . The competent Bangladesh authorities shall however
   endeavour to reduce such discrepancies to a minimun).                 •»
   5.          The competent Bangladesh authorities shall notify the competent authorities
 - in the Community of any withdrawal , or part withdrawal , of an export permit .. ' ,-The
   latter shall , within the context of the administrative regulations governing
   such matters , take appropriate steps .                     .                            ,
   6.         The competent Bangladesh authorities shall forward every si months to the
• competent authorities in the Community , via the Commission , a summary of the
   export permits issued . These summaries shall state , for every category of product , :
   the net' weight in metric tons of the authorised exports ^ their assignment to the
   various ceilings and the Member States of the Commnnity to which the goods have
   been consigned.                                       ,   ,   -            '        .      • ^
  7.          The competent Community authorities shall forward every six . months to the
   competent authorities in Bangladesh , via the Mission of Bangladesh to the European                     \
   Economic Communities in Brussels a summary of the most recent figures available'
   for imports of products covered by tms Agreement ,
   (1)        Where import licences are required under the regulation in f>rce in one or              ,
              other Member State , such licences shall be issued automafielly on demand,
              within a limited number ofdays .         • . '
 (2 )        In the case of the fabrics* of Category 4 the width shall be indicated ( in
             centimetres ), till such time as appropriate changes ti NIMEXE are made .
                                                      ' /'          -           continued overleaf •
 ---pagebreak---                                ANNEX  D ( continued )
Footnote ( 3 ) Exports shall be debited against the quantitative limits established
               for ths year in which shipment of the goods has been effected .
 ---pagebreak---                                                                                Z- 5
                                   ANNEX E
                                JOINT DECLARATION
     The Contracting Parties agree to make a special effort to fulfil)^
the tasks set out in Article 10 of the Agreement .   To this end they will
   ι
endeavour to. faci litate annual round-table discussions between the industrial ,
commercial and research interests on both sides , and they undertake to examine , the
possibility of providing support for any programmes or projects recomended
as a result of such discussions as likely, to be of mutual "benefit to these
interests .              - .. .                '  •     ,