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ARTICLE 1

IRELAND IS AUTHORIZED TO RETAIN , UNTIL 1 JANUARY 1985 , THE SYSTEM APPLICABLE TO ASSEMBLY AND IMPORT OF MOTOR VEHICLES ( HEREINAFTER REFERRED TO AS THE " SCHEME " ) APPLIED IN ACCORDANCE WITH THE PROVISIONS OF THE MOTOR VEHICLES ( REGISTRATION OF IMPORTERS ) ACT , 1968 ( HEREINAFTER REFERRED TO AS THE " ACT " ) .

ARTICLE 2

1 . FROM THE DATE OF ACCESSION , ALL THE IMPORTERS-ASSEMBLERS OF MAKES OF VEHICLES MANUFACTURED IN THE COMMUNITY WHO HAVE BEEN REGISTERED UNDER THE ACT , AND WHO CONTINUE TO FULFIL THE CONDITIONS OF REGISTRATION , SHALL BE AUTHORIZED TO IMPORT FROM OTHER MEMBER STATES AND WITHOUT RESTRICTION FULLY BUILT-UP VEHICLES OF MAKES MANUFACTURED IN OTHER MEMBER STATES .

2 . FROM 1 JANUARY 1974 , IRELAND SHALL , WITHIN THE FRAMEWORK OF THE TARIFF REDUCTIONS WHICH IT IS TO CARRY OUT IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 32 OF THE ACT OF ACCESSION , APPLY NON-DISCRIMINATORY TARIFF TREATMENT TO THE VEHICLES IMPORTED BY THE IMPORTERS-ASSEMBLERS REFERRED TO IN PARAGRAPH 1 .

3 . IRELAND SHALL RETAIN THE RIGHT TO REPLACE THE FISCAL ELEMENT CONTAINED IN THE CUSTOMS DUTIES APPLIED TO MOTOR VEHICLES AND PARTS THEREOF BY INTERNAL TAXES IN ACCORDANCE WITH ARTICLE 95 OF THE EEC TREATY AND ARTICLE 38 OF THE ACT OF ACCESSION . IN PARTICULAR THESE TAXES MUST NOT ENTAIL ANY DISCRIMINATION BETWEEN THE RATES APPLIED TO :

_ PARTS MANUFACTURED IN IRELAND AND PARTS IMPORTED FROM OTHER MEMBER STATES ;

_ VEHICLES ASSEMBLED IN IRELAND AND FULLY BUILT-UP VEHICLES IMPORTED FROM OTHER MEMBER STATES ;

_ PARTS MANUFACTURED IN IRELAND OR IMPORTED FROM OTHER MEMBER STATES AND VEHICLES ASSEMBLED IN IRELAND OR IMPORTED FROM OTHER MEMBER STATES .

ARTICLE 3

1 . THE TARIFF TREATMENT REFERRED TO IN ARTICLE 2 ( 2 ) SHALL , FROM 1 JANUARY 1974 , ALSO APPLY TO A GLOBAL QUOTA WHICH IRELAND SHALL OPEN , FROM THE DATE OF ACCESSION , TO THE OTHER MEMBER STATES IN RESPECT OF VEHICLES ORIGINATING IN THE COMMUNITY OTHER THAN THOSE COVERED BY SPECIAL TREATMENT UNDER THE SCHEME .

2 . THIS QUOTA SHALL BE FIXED ANNUALLY ON THE BASIS OF A PERCENTAGE OF THE NUMBER OF VEHICLES ASSEMBLED IN IRELAND DURING THE PREVIOUS YEAR . THIS PERCENTAGE IS TO BE 3 % IN 1973 AND SHALL INCREASE EACH YEAR BY ONE POINT TO REACH 14 % IN 1984 .

IRELAND MAY ALLOCATE THE AMOUNT OF THIS QUOTA BETWEEN THE FOLLOWING CATEGORIES OF VEHICLES :

I . _ PRIVATE VEHICLES

( A ) WITH A CYLINDER CAPACITY LESS THAN OR EQUAL TO 1,500 CC

( B ) WITH A CYLINDER CAPACITY GREATER THAN 1,500 CC .

II . _ COMMERCIAL VEHICLES

( A ) WITH A TARE WEIGHT LESS THAN OR EQUAL TO 3.5 TONS

( B ) WITH A TARE WEIGHT GREATER THAN 3.5 TONS .

THE TARE WEIGHT SHALL BE ESTABLISHED IN ACCORDANCE WITH THE RULES FOR THE CLASSIFICATION OF VEHICLES FOR THE PURPOSES OF THE ROAD TAX IN IRELAND .

3 . WITHIN THIS ALLOCATION , IRELAND MAY FIX THE QUOTAS AS FOLLOWS :

CATEGORY I _ PRIVATE VEHICLES ... 85 % OF THE GLOBAL QUOTA , ALLOCATED AS FOLLOWS :

I . ( A ) ( UP TO 1,500 CC ) 75 %

I . ( B ) ( OVER 1,500 CC ) 25 %

CATEGORY II _ COMMERCIAL VEHICLES 15 % OF THE GLOBAL QUOTA , ALLOCATED AS FOLLOWS :

II . ( A ) ( UP TO 3.5 TONS ) 75 %

II . ( B ) ( OVER 3.5 TONS ) 25 %

4 . IF , DURING THE PERIOD OF APPLICATION OF THE QUOTA SYSTEM , IT BECOMES CLEAR THAT THIS QUOTA HAS NOT BEEN USED TO THE FULL , FOR REASONS CONNECTED WITH ITS ALLOCATION IN THE MANNER DESCRIBED ABOVE , THE COMMISSION MAY , AFTER CONSULTING THE IRISH GOVERNMENT , DETERMINE THE APPROPRIATE MEASURES TO BE TAKEN BY THE IRISH GOVERNMENT IN ORDER TO FACILITATE THE FULL USE OF THE GLOBAL QUOTA .

ARTICLE 4

WHERE THE APPLICATION OF THIS PROTOCOL , AND OF ARTICLE 2 ( 1 ) IN PARTICULAR , GIVES RISE TO DISTORTIONS IN COMPETITION BETWEEN IMPORTERS-ASSEMBLERS ESTABLISHED IN IRELAND LIKELY TO JEOPARDIZE A PHASED TRANSITION FROM THE SYSTEM APPLIED AT THE TIME OF ACCESSION TO A SYSTEM WHICH IS IN ACCORDANCE WITH THE EEC TREATY , THE COMMISSION MAY AUTHORIZE THE IRISH GOVERNMENT TO TAKE APPROPRIATE MEASURES TO REDRESS THE SITUATION . THESE MEASURES MAY NOT CALL INTO QUESTION THE FINAL DATE FOR THE ABOLITION OF THE SCHEME .

ARTICLE 5

IRELAND SHALL CARRY OUT ALL ADDITIONAL ADJUSTMENTS TO THE SCHEME WITH A VIEW TO FACILITATING THE TRANSITION FROM THE SYSTEM APPLIED AT THE TIME OF ACCESSION TO A SYSTEM WHICH IS IN ACCORDANCE WITH THE EEC TREATY .