EN Official Journal of the European Union L 302/23

ACT

concerning the conditions of accession of the Kingdom of Spain and the Portuguese Republic and the adjustments to the Treaties





PART ONE

PRINCIPLES

Article 1

For the purposes of this Act:

— the expression ‘original Treaties’ means the Treaty establishing the European Coal and Steel Community, the Treaty establishing the European Economic Community and the Treaty establishing the European Atomic Energy Community, as supplemented or amended by treaties or other acts which entered into force before this accession; the expressions ‘ECSC Treaty’, ‘EEC Treaty’ and ‘Euratom Treaty’ mean the relevant original Treaties thus supplemented or amended,

— the expression ‘present Member States’ means the Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the French Republic, Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands and the United Kingdom of Great Britain and Northern Ireland,

— the expression ‘the Community as at present constituted’ means the Community made up of the present Member States,

— the expression ‘the Community as enlarged’ means the Community as constituted after the 1972 accession or after the 1979 accession, as the case may be,

— the expression ‘new Member States’ means the Kingdom of Spain and the Portuguese Republic.

Article 2

From the date of accession, the provisions of the original Treaties and the acts adopted by the institutions of the Communities before accession shall be binding on the new Member States and shall apply in those States under the conditions laid down in those Treaties and in this Act.

Article 3

1. The new Member States accede by this Act to the decisions and agreements adopted by the representatives of the Governments of the Member States meeting in Council. They undertake to accede from the date of accession to all other agreements concluded by the present Member States relating to the functioning of the Communities or connected with the activities thereof.

2. The new Member States undertake to accede to the conventions provided for in Article 220 of the EEC Treaty and to those that are inseparable from the attainment of the objectives of that Treaty and thus linked to the Community legal order, and also to the protocols on the interpretation of those conventions by the Court of Justice, signed by the Member States of the Community as originally constituted or as enlarged and to this end they undertake to enter into negotiations with the present Member States in order to make the necessary adjustments thereto.

3. The new Member States are in the same situation as the present Member States in respect of declarations or resolutions of, or other positions taken up by, the Council and in respect of those concerning the European Communities adopted by common agreement of the Member States; they will accordingly observe the principles and guidelines deriving from those declarations, resolutions or other positions and will take such measures as may be necessary to ensure their implementation.

Article 4

1. The agreements or conventions entered into by any of the Communities with one or more third States, with an international organization or with a national of a third State, shall, under the conditions laid down in the original Treaties and in this Act, be binding on the new Member States.

2. The new Member States undertake to accede, under the conditions laid down in this Act, to the agreements or conventions concluded by the Member States of the Community as originally constituted or as enlarged and any of the Communities, acting jointly, and to the agreements concluded by those States which are related to those agreements or conventions. The Community and the present Member States shall assist the new Member States in this respect.

3. The new Member States accede by this Act and under the conditions laid down therein to the internal agreements concluded by the Member States of the Community as originally constituted or as enlarged for the purpose of implementing the agreements or conventions referred to in paragraph 2.

4. The new Member States shall take appropriate measures, where necessary, to adjust their position in relation to international organizations and to those international agreements to which one of the Communities or to which other Member States are also parties, to the rights and obligations arising from their accession to the Communities.

Article 5

Article 234 of the EEC Treaty and Articles 105 and 106 of the Euratom Treaty shall apply for the new Member States to agreements or conventions concluded before their accession.

Article 6

The provisions of this Act may not, unless otherwise provided herein, be suspended, amended or repealed other than by means of the procedure laid down in the original Treaties enabling those Treaties to be revised.

Article 7

Acts adopted by the institutions of the Communities to which the transitional provisions laid down in this Act relate shall retain their status in law; in particular, the procedures for amending those acts shall continue to apply.

Article 8

Provisions of this Act the purpose or effect of which is to repeal or amend acts adopted by the institutions of the Communities, otherwise than as a transitional measure, shall have the same status in law as the provisions which they repeal or amend and shall be subject to the same rules as those provisions.

Article 9

The application of the original Treaties and acts adopted by the institution shall, as a transitional measure, be subject to the derogations provided for in this Act.

PART TWO

ADJUSTMENTS TO THE TREATIES

TITLE 1

PROVISIONS GOVERNING THE INSTITUTIONS

CHAPTER 1

The Assembly

Article 10

The following is substituted for Article 2 of the Act concerning the election of the representatives of the Assembly by direct universal suffrage, which is annexed to Decision 76/787/ECSC, EEC, Euratom:

‘Article 2 The number of representatives elected in each Member State is as follows: Belgium 24 Denmark 16 Germany 81 Greece 24 Spain 60 France 81 Ireland 15 Italy 81 Luxembourg 6 Netherlands 25 Portugal 24 United Kingdom 81

CHAPTER 2

The Council

Article 11

The following is substituted for the second paragraph of Article 2 of the Treaty establishing a single Council and a single Commission of the European Communities:

‘The office of President shall be held in turn by each Member State in the Council for a term of six months, in the following order of Member States: — for a first cycle of six years: Belgium, Denmark, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, Netherlands, Portugal, United Kingdom, — for the following cycle of six years: Denmark, Belgium, Greece, Germany, France, Spain, Italy, Ireland, Netherlands, Luxembourg, United Kingdom, Portugal.’

Article 12

The following is substituted for Article 28 of the ECSC Treaty:

‘Article 28 When the Council is consulted by the High Authority, it shall consider the matter without necessarily taking a vote. The minutes of its proceedings shall be forwarded to the High Authority. Wherever this Treaty requires that the assent of the Council be given, that assent shall be considered to have been given if the proposal submitted by the High Authority receives the approval: — of an absolute majority of the representatives of the Member States, including the votes of the representatives of two Member States which each produce at least one-ninth of the total value of the coal and steel output of the Community, or — in the event of an equal division of votes and if the High Authority maintains its proposal after a second discussion, of the representatives of three Member States which each produce at least one-ninth of the total value of the coal and steel output of the Community. Wherever this Treaty requires a unanimous decision or unanimous assent, such decision or assent shall have been duly given if all the members of the Council vote in favour. However, for the purposes of applying Articles 21, 32, 32a, 78e and 78h of this Treaty, and Article 16, the third paragraph of Article 20, the fifth paragraph of Article 28 and Article 44 of the Protocol on the Statute of the Court of Justice, abstention by members present in person or represented shall not prevent the adoption by the Council of acts which require unanimity. Decisions of the Council, other than those for which a qualified majority or unanimity is required, shall be taken by a vote of the majority of its members; this majority shall be considered to be attained if it represents an absolute majority of the representatives of the Member States, including the votes of the representatives of two Member States which each produce at least one-ninth of the total value of the coal and steel output of the Community. However, for the purpose of applying Articles 78, 78b and 78e of this Treaty which require a qualified majority, the votes of the members of the Council are weighted as follows: Belgium 5 Denmark 3 Germany 10 Greece 5 Spain 8 France 10 Ireland 3 Italy 10 Luxembourg 2 Netherlands 5 Portugal 5 United Kingdom 10 For their adoption, acts shall require at least 54 votes in favour, cast by not less than eight members. Where a vote is taken, any member of the Council may act on behalf of not more than one other member. The Council shall deal with the Member States through its President. The acts of the Council shall be published in such a manner as it may decide.’

Article 13

The following is substituted for the fourth paragraph of Article 95 of the ECSC Treaty:

‘These amendments shall be proposed jointly by the High Authority and the Council, acting by a ten-twelfths majority of its members, and shall be submitted to the Court for its opinion. In considering them, the Court shall have full power to assess all points of fact and of law. If, as a result of such consideration, it finds the proposals compatible with the provisions of the preceding paragraph, they shall be forwarded to the Assembly and shall enter into force if approved by a majority of three-quarters of the votes cast and two-thirds of the members of the Assembly.’

Article 14

The following is substituted for Article 148 (2) of the EEC Treaty and Article 118 (2) of the Euratom Treaty:

‘2. Where the Council is required to act by a qualified majority, the votes of its members shall be weighted as follows: Belgium 5 Denmark 3 Germany 10 Greece 5 Spain 8 France 10 Ireland 3 Italy 10 Luxembourg 2 Netherlands 5 Portugal 5 United Kingdom 10 For their adoption, acts of the Council shall require at least: — 54 votes in favour where this Treaty requires them to be adopted on a proposal from the Commission, — 54 votes in favour, cast by at least eight members, in other cases.’

CHAPTER 3

The Commission

Article 15

The following is substituted for the first subparagraph of Article 10 (1) of the Treaty establishing a single Council and a single Commission of the European Communities:

‘1. The Commission shall consist of 17 members, who shall be chosen on the grounds of their general competence and whose independence is beyond doubt.’

Article 16

Article 14 of the Treaty establishing a single Council and a single Commission of the European Communities is amended as follows:

1. The first subparagraph is replaced by the following: "The President and the six Vice-Presidents of the Commission shall be appointed from among its members for a term of two years in accordance with the same procedure as that laid down for the appointment of members of the Commission. Their appointments may be renewed.

2. The following subparagraph is added: ‘The Council, acting unanimously, may amend the provisions concerning Vice-Presidents.’

CHAPTER 4

The Court of Justice

Article 17

The following is substituted for the first paragraph of Article 32 of the ECSC Treaty, the first paragraph of Article 165 of the EEC Treaty and the first paragraph of Article 137 of the Euratom Treaty:

‘The Court of Justice shall consist of 13 Judges.’

Article 18

The following is substituted for the first paragraph of Article 32a of the ECSC Treaty, the first paragraph of Article 166 of the EEC Treaty and the first paragraph of Article 138 of the Euratom Treaty:

‘The Court of Justice shall be assisted by six Advocates-General.’

Article 19

The following is substituted for the second and third paragraphs of Article 32b of the ECSC Treaty, the second and third paragraphs of Article 167 of the EEC Treaty and the second and third paragraphs of Article 139 of the Euratom Treaty:

‘Every three years there shall be a partial replacement of the Judges. Seven and six Judges shall be replaced alternately. Every three years there shall be a partial replacement of the Advocates-General. Three Advocates-General shall be replaced on each occasion.’

CHAPTER 5

The Court of Auditors

Article 20

The following is substituted for Article 78e (2) of the ECSC Treaty, Article 206 (2) of the EEC Treaty and Article 180 (2) of the Euratom Treaty:

‘2. The Court Auditors shall consist of 12 members.’

CHAPTER 6

The Economic and Social Committee

Article 21

The following is substituted for the first paragraph of Article 194 of the EEC Treaty and the first paragraph of Article 166 of the Euratom Treaty:

‘The number of members of the Committee shall be as follows: Belgium 12 Denmark 9 Germany 24 Greece 12 Spain 21 France 24 Ireland 9 Italy 24 Luxembourg 6 Netherlands 12 Portugal 12 United Kingdom 24

CHAPTER 7

The ECSC Consultative Committee

Article 22

The following is substituted for the first paragraph of Article 18 of the ECSC Treaty:

‘A Consultative Committee shall be attached to the High Authority. It shall consist of not less than 72 and not more than 96 members and shall comprise equal numbers of producers, of workers and of consumers and dealers.’

CHAPTER 8

The Scientific and Technical Committee

Article 23

The following is substituted for the first subparagraph of Article 134 (2) of the Euratom Treaty:

‘2. The Committee shall consist of 33 members, appointed by the Council after consultation with the Commission.’

TITLE II

OTHER ADJUSTMENTS

Article 24

The following is substituted for Article 227 (1) of the EEC Treaty:

‘1. This Treaty shall apply to the Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Portuguese Republic and the United Kingdom of Great Britain and Northern Ireland.’

Article 25

1. The Treaties and the acts of the institutions of the European Communities shall apply to the Canary Islands and to Ceuta and Melilla, subject to the derogations referred to in paragraphs 2 and 3 and to the other provisions of this Act.

2. The conditions under which the provisions of the EEC and ECSC Treaties concerning the free movement of goods, and the acts of the institutions of the Community concerning customs legislation and commercial policy, shall apply to the Canary Islands and to Ceuta and Melilla are set out in Protocol 2.

3. Without prejudice to the specific provisions of Article 155 the acts of the institutions of the European Communities concerning the common agricultural policy and the common fisheries policy shall not apply to the Canary Islands and to Ceuta and Melilla.

The Council acting by a qualified majority on a proposal from the Commission shall determine the provisions of a socio-structural nature, which, in the sphere of agriculture, shall apply to the Canary Islands, whilst ensuring that these provisions are compatible with the general objectives of the common agricultural policy.

4. At the request of the Kingdom of Spain, the Council, acting unanimously on a proposal from the Commission and after consulting the Assembly, may:

— decide to include the Canary Islands and Ceuta and Melilla in the customs territory of the Community,

— define the appropriate measures aimed at extending to the Canary Islands and to Ceuta and Melilla the provisions of Community law in force.

On a proposal from the Commission acting on its own initiative or at the request of a Member State, the Council, acting unanimously and after consulting the Assembly, may decide to make such adjustments to the arrangements applicable to the Canary Islands and to Ceuta and Melilla as may prove necessary.

PART THREE

ADAPTATIONS TO ACTS ADOPTED BY THE INSTITUTIONS

Article 26

The acts listed in Annex I to this Act shall be adapted as specified in that Annex.

Article 27

The adaptations to the acts listed in Annex II to this Act made necessary by accession shall be drawn up in conformity with the guidelines set out in that Annex and in accordance with the procedure and under the conditions laid down in Article 396.

PART FOUR

TRANSITIONAL MEASURES

TITLE I

PROVISIONS GOVERNING THE INSTITUTIONS

Article 28

1. During the first two years following accession, each of the new Member States shall hold an election by direct universal suffrage of 60 representatives, to the Assembly, of the people of Spain and of 24 representatives, to the Assembly, of the people of Portugal, respectively, in accordance with the provisions of the Act of 20 September 1976 concerning the election of representatives of the Assembly by direct universal suffrage.

The term of office of those representatives shall end at the same time as that of the representatives elected in the present Member States for the current five-year term.

2. From accession and for the period running until each of the elections referred to in paragraph 1, the representatives of the Assembly of the people of Spain and Portugal shall be appointed by the Parliaments of the new Member States within themselves in accordance with the procedure laid down by each of those States.

Article 29

For the purposes of applying the second paragraph of Article 2 of the Treaty establishing a single Council and a single Commission of the European Communities, the new order for Member States fixed in Article 11 of this Act shall apply on the expiry of the periods of rotation remaining to run in accordance with the order of the Member States fixed in Article 2 above in its version in force before the accession.

TITLE II

TRANSITIONAL MEASURES CONCERNING SPAIN

CHAPTER 1

Free movement of goods

Section I

Tariff provisions

Article 30

1. The basic duty to which the successive reductions provided for in Articles 31, 75 (1) and 173 (1) and (2) are to be applied shall, for each product, be the duty actually applied on 1 January 1985 to products originating in the Community as at present constituted and Spain within the context of their trade.

2. The basic duty used for the moves towards alignment on the Common Customs Tariff and the ECSC unified tariff provided for in Articles 37, 75 (2) and 173 (4) shall, for each product, be the duty actually applied by the Kingdom of Spain on 1 January 1985.

3. However, if after that date and before accession a tariff reduction is applied, such reduced duty shall be considered as a basic duty.

4. The Community as at present constituted and the Kingdom of Spain shall inform each other of their respective basic duties.

5. Notwithstanding paragraph 1, for the products appearing hereafter, the basic duties to which the Kingdom of Spain shall apply the successive reductions laid down in Article 31 shall be those indicated opposite each product.

CCT heading No Description Basic duty 24.02 Manufactured tobacco; tobacco extracts and essences: A. Cigarettes 50 % B. Cigars 55 % C. Smoking tobacco 46,8 % D. Chewing tobacco 26 % E. Other, including agglomerated tobacco in the form of sheets or strip 10,4 % 27.09 Petroleum oils and oils obtained from bituminous minerals, crude Free

Article 31

1. Customs duties on imports between the Community as at present constituted and the Kingdom of Spain shall be progressively abolished in accordance with the following timetable:

— on 1 March 1986, each duty shall be reduced to 90,0 % of the basic duty,

— on 1 January 1987, each duty shall be reduced to 77,5 % of the basic duty,

— on 1 January 1988, each duty shall be reduced to 62,5 % of the basic duty,

— on 1 January 1989, each duty shall be reduced to 47,5 % of the basic duty,

— on 1 January 1990, each duty shall be reduced to 35,0 % of the basic duty,

— on 1 January 1991, each duty shall be reduced to 22,5 % of the basic duty,

— on 1 January 1992, each duty shall be reduced to 10,0 % of the basic duty,

— the last reduction of 10 % shall be made on 1 January 1993.

2. Nothwithstanding paragraph 1, duty-free entry shall apply from 1 March 1986 to:

(a) imports which benefit from the provisions relating to tax exemptions applicable to persons travelling from one Member State to another;

(b) imports of goods sent in small consignments, not of a commercial nature, which benefit from the provisions relating to tax exemptions applicable between Member States.

3. The rate of duty calculated in accordance with paragraph 1 shall be applied by rounding down to the first decimal place by deleting the second decimal.

Article 32

In no case shall customs duties higher than those applied to third countries enjoying most-favourednation treatment be applied within the Community.

In the event of the Common Customs Tariff duties being amended or suspended, or the Kingdom of Spain applying Article 40, the Council, acting by a qualified majority on a proposal from the Commission, may take the necessary measures for the maintenance of Community preference.

In the event of ECSC unified tariff duties being amended or suspended, or the Kingdom of Spain applying Article 40, the Commission may take the necessary measures for the maintenance of Community preference.

Article 33

The Kingdom of Spain may suspend in whole or in part the levying of duties on products imported from the Community as at present constituted. It shall inform the other Member States and the Commission thereof.

The Council, acting by a qualified majority on a proposal from the Commission, may suspend in whole or in part the levying of duties on products imported from Spain.

Article 34

Tariff quotas subject to reduced duty, resulting from Article 30, for the import into Spain of certain new passenger motor vehicles falling within subheading ex 87.02 A I b) of the Common Customs Tariff, shall be abolished upon accession in respect of vehicles imported from the Community as at present constituted.

From 1 January 1986, the Kingdom of Spain shall open annual tariff quotas subject to reduced duty for the import of motor vehicles for the transport of persons, with either a spark ignition or a compression ignition engine, other than motor coaches and buses, falling within subheading ex 87.02 A I b) of the Common Customs Tariff, originating in the Community as at present constituted. The admission of such motor vehicles to those tariff quotas shall be governed by the provisions of Protocol 6.

Article 35

Any charge having equivalent effect to a customs duty on imports in trade between the Community as at present constituted and Spain shall be abolished on 1 March 1986.

No customs duty of a fiscal nature shall be applied from 1 March 1986.

Article 36

Customs duties on exports and charges having equivalent effect in trade between the Community as at present constituted and Spain shall be abolished on 1 March 1986.

Article 37

1. For the purpose of the progressive introduction of the Common Customs Tariff and the ECSC unified tariff, the Kingdom of Spain shall amend its tariff applicable to third countries as follows:

From 1 March 1986:

(a) in the case of tariff headings in respect of which the basic duties do not differ by more than 15 % in either direction from the duties in the Common Customs Tariff or the ECSC unified tariff, these latter duties shall be applied;

(b) in other cases, the Kingdom of Spain shall apply a duty reducing the difference between the basic duty and the duty in the Common Customs Tariff or the ECSC unified tariff in accordance with the following timetable: — on 1 March 1986, a reduction of 10 %, — on 1 January 1987, a reduction of 12,5 %, — on 1 January 1988, a reduction of 15 %, — on 1 January 1989, a reduction of 15 %, — on 1 January 1990, a reduction of 12,5 %, — on 1 January 1991, a reduction of 12,5 %, — on 1 January 1992, a reduction of 12,5 %.

The Kingdom of Spain shall apply in full the Common Customs Tariff and the ECSC unified tariff from 1 January 1993.

2. Notwithstanding paragraph 1, for the products listed in the Annex to the Agreement on trade in civil aircraft concluded in the context of the 1973 to 1979 trade negotiations of the General Agreement on Tariffs and Trade, the Kingdom of Spain shall apply the Common Customs Tariff from 1 March 1986 in its entirety.

Article 38

The autonomous duties entered in the Community Common Customs Tariff shall be the autonomous duties of the Community as at present constituted. The conventional duties of the EEC Common Customs Tariff and of the ECSC unified tariff shall be the conventional duties of the EEC and of the ECSC, as at present constituted, with the exception of the adjustments to be made to take into account the fact that the duties in force in the Spanish and Portuguese tariffs are, on the whole, higher than the duties in force in the tariffs of the EEC and ECSC as at present constituted.

That adjustment which will be the subject of negotiation within the General Agreement on Tariffs and Trade, shall remain within the limits of the possibilities opened by Article XXIV of that Agreement.

Article 39

1. Where duties in the customs tariff of the Kingdom of Spain differ in nature from the corresponding duties in the Common Customs Tariff or the ECSC unified tariff, the progressive alignment of the former on the latter shall be effected by adding the components of the Spanish basic duty to those of the duty in the Common Customs Tariff or the ECSC unified tariff, the Spanish basic duty being reduced to zero progressively, in accordance with the timetable set out in Articles 37 and 75 (2), and the duty in the Common Customs Tariff or ECSC unified tariff increasing from zero to reach the full amount progressively in accordance with the same timetable.

2. From 1 March 1986, if certain duties in the Common Customs Tariff or the ECSC unified tariff are altered or suspended, the Kingdom of Spain shall simultaneously amend or suspend its tariff in the proportion resulting from the implementation of Article 37.

3. The Kingdom of Spain shall apply the Common Customs Tariff and ECSC unified tariff nomenclatures from 1 March 1986.

The Kingdom of Spain may include within these nomenclatures national subdivisions existing at the time of accession which are indispensable in order that the progressive alignment of its customs duties on those in the Common Customs Tariff and the ECSC unified tariff be carried out under the conditions laid down in this Act.

Where amendments are made to the nomenclature of the Common Customs Tariff or the ECSC unified tariff in respect of products referred to in this Act, the Council may, acting by a qualified majority on a proposal from the Commission, adapt the nomenclature of those products as indicated in this Act.

4. With a view to implementing paragraph 3 and to facilitating the progressive introduction of the Common Customs Tariff and the ECSC unified tariff by the Kingdom of Spain and the progressive abolition of customs duties between the Community as at present constituted and the Kingdom of Spain, the Commission shall determine, if necessary, the implementing provisions whereby the Kingdom of Spain alters its customs duties; those implementing provisions may not however entail any amendment to Articles 31 and 37.

5. The rate of duty calculated in accordance with Article 37 shall be applied by rounding up or down to the first decimal place.

Rounding down shall be effected by deleting the second decimal where Spanish duties are being aligned on Common Customs Tariff or ECSC unified tariff duties which are less than the Spanish basic duties. In other cases rounding up shall be effected by applying the higher decimal.

Article 40

In order to bring its tariff into line with the Common Customs Tariff and the ECSC unified tariff, the Kingdom of Spain shall remain free to alter its customs duties more rapidly than is provided for in Article 36. It shall inform the other Member States and the Commission thereof.

Article 41

During the period of elimination of customs duties between the Community as at present constituted and the Kingdom of Spain and the period of alignment of the Spanish Customs Tariff duties on those of the Common Customs Tariff and of the ECSC unified tariff, the Kingdom of Spain shall enjoy the option of opening to third countries tariff quotas actually applied on 1 January 1985.

If such quotas are opened, Article 37 shall apply during such time as these quotas remain open, to determine the duties applicable to products imported from third countries. The quantities or value subject to these duties shall be limited to the amounts actually imported under the same quotas opened on 1 January 1985. Products imported from the Community as at present constituted shall be subject to reduced duties in accordance with the provisions of Article 31, without limit as to quantify or value, whilst such quotas remain open.

If such quotas are not opened, the Kingdom of Spain shall apply to products imported from the Community as at present constituted the duties applied in the case of such quotas being opened. The quantities or value subject to those duties shall be limited to the amounts actually imported from the Community as at present constituted under the same quotas opened on 1 January 1985.

Section II

Elimination of quantitative restrictions and measures having equivalent effect

Article 42

Quantitative restrictions on imports and exports and any measures having equivalent effect shall be abolished on 1 January 1986 between the Community as at present constituted and the Kingdom of Spain.

Article 43

1. Notwithstanding Article 42, the Kingdom of Spain may retain quantitative restrictions on imports:

— until 31 December 1988 for products referred to in Annex III,

— until 31 December 1989 for products referred to in Annex IV.

2. The restrictions referred to in paragraph 1 shall take the form of quotas.

3. The quotas for 1986 are listed in Annexes III and IV respectively.

The rate of progressive increase for quotas referred to in Annex III and for quotas 1 to 5 and 10 to 14 referred to in Annex IV shall be 25 % at the beginning of each year for quotas expressed in ECU, and 20 % at the beginning of each year for quotas expressed in terms of volume. Such increase shall be added to each quota and the next increase calculated on the basis of the total thus obtained.

For the quotas 6 to 9 listed in Annex IV, the annual rate of progressive increase shall be as follows:

— first year: 13 %,

— second year: 18 %,

— third year: 20 %,

— fourth year: 20 %.

4. Where the Commission records by a Decision that imports into Spain of a product listed in Annexes III and IV have for two consecutive years been less than 90 % of the quota, imports of that product from the present Member States shall be liberalized as from the beginning of the year following those two years.

5. Protocol 7 shall define the principles which shall be applied by the Kingdom of Spain for the administration of the quotas laid down in paragraph 2 of this Article.

Article 44

1. Notwithstanding Article 42 the Kingdom of Spain may retain until 31 December 1989 a rate of national incorporation that shall not exceed 60 % for the parts and accessories used in the manufacture of motor vehicles for the transport of persons, with either a spark ignition or a compression ignition engine, other than motor coaches and buses, falling within subheading ex 87.02 A I b) of the Common Customs Tariff.

2. The rate of national incorporation provided for in paragraph 1 shall be the same for manufacturers who are nationals of the other Member States established in Spain and for all manufacturers from the Kingdom of Spain. The treatment accorded to the abovementioned manufacturers shall not be less favourable than that accorded to manufacturers from third countries.

Article 45

1. Notwithstanding Article 42, the Community may retain until 31 December 1988 quantitative restrictions on exports to Spain for the following products:

CCT heading No Description ex 26.03 Copper ash and residues and alloys thereof ex 74.01 Copper waste and scrap and alloys thereof

2. The restrictions referred to in paragraph 1 shall consist of annual quantitative quotas.

3. The quotas for 1986 shall be respectively 5 000 tonnes for copper ash and residues and alloys thereof falling within heading No ex 26.03 of the Common Customs Tariff and 14 000 tonnes for copper waste and scrap and alloys thereof falling within heading No ex 74.01 of the Common Customs Tariff.

The rate of annual progressive increase for the initial quotas applicable as from the beginning of the second year shall be 10 % at the beginning of each year. Such increase shall be added to each quota and the next increase calculated on the basis of the total thus obtained.

4. Where exports from the Community of a product referred to in paragraph 1 have, for 1986 and 1987, been less than 90 % of the quota opened, the restrictions in question shall be abolished from 1 January 1988.

5. The arrangements applied by the Community with regard to Spain, as provided for in paragraphs 1 to 4, shall not be less favourable than those applied to third countries.

Article 46

Notwithstanding Article 42 the present Member States may, until the end of the period referred to in Article 52, retain quantitative restrictions on exports of waste and scrap metal of iron or steel falling within heading No 73.03 of the Common Customs Tariff, which they applied to the Kingdom of Spain prior to the date of accession, insofar as these arrangements are not more restrictive than those applied to exports to third countries.

Article 47

1. Notwithstanding Article 42, the holder, or his beneficiary, of a patent for a chemical or pharmaceutical product or a product relating to plant health, filed in a Member State at a time when a product patent could not be obtained in Spain for that product may rely upon the rights granted by that patent in order to prevent the import and marketing of that product in the present Member State or States where that product enjoys patent protection even if that product was put on the market in Spain for the first time by him or with his consent.

2. This right may be invoked for the products referred to in paragraph 1 until the end of the third year after Spain has made these products patentable.

Article 48

1. Without prejudice to paragraphs 2 and 3 of this Article, the Kingdom of Spain shall, from 1 January 1986, progressively adjust State monopolies of a commercial character within the meaning of Article 37 (1) of EEC Treaty, bearing in mind, where appropriate, Article 90 (2) of the EEC Treaty, so as to ensure that by 31 December 1991 at the latest no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States.

The present Member States shall have equivalent obligations in relation to the Kingdom of Spain.

The Commission shall make recommendations as to the manner in which and the timetable according to which the adjustment must be carried out, it being understood that the manner and timetable must be the same for the Kingdom of Spain and the present Member States.

2. The Kingdom of Spain shall, from 1 January 1986, abolish all exclusive export rights.

3. With regard to products indicated in the list appearing in Annex V, the exclusive import rights shall be abolished not later than 31 December 1991. The abolition of these exclusive rights shall be made by progressively opening, from 1 January 1986, import quotas for products from the present Member States. Quota volumes for 1986 are indicated in the said list.

The Kingdom of Spain shall increase the quota volumes in the manner set out in the annex referred to in the first subparagraph.

The increases expressed in percentage terms shall be added to each quota and the next increase calculated on the basis of the total thus obtained.

The quotas referred to in the first subparagraph shall be opened for all operators without restriction and goods imported under these quotas may not be subject in Spain to exclusive marketing rights at the wholesale level; as regards retail sales of certain goods imported under quotas, the marketing of such goods to consumers will have to be on a non-discriminatory basis.

4. The adjustment of the monopoly of products indicated in the list appearing in Annex VI may not necessarily affect the functioning of the Spanish petroleum monopoly with regard to third countries. This monopoly may continue to determine the origin and the conditions of acquisition of a share of crude oil imports, from third countries, necessary to ensure availability of supply on the Spanish market, whilst complying with the provisions of the EEC Treaty, and in particular those relating to free movement contained in Articles 30 and 37 of that Treaty.

Article 49

Notwithstanding Article 42, the arrangements described in Protocol 9 shall be applied to trade in certain textile products between the Community as at present constituted and Spain.

Section III

Other provisions

Article 50

1. The Commission shall, with due regard for the provisions in force, in particular those relating to Community transit, determine the methods of administrative cooperation designed to ensure that goods, fulfilling the requisite conditions, benefit from the abolition of customs duties and charges having equivalent effect, and quantitative restrictions and measures having equivalent effect, laid down by this Act.

2. Until 28 February 1986 the provisons of the 1970 Agreement between the European Economic Community and Spain on customs arrangements shall continue to apply to trade between the Community as at present constituted and Spain.

3. The Commission shall lay down the provisions applicable from 1 March 1986 to trade within the Community in goods obtained in the Community in the manufacture of which have been incorporated:

— products on which the customs duties or charges having equivalent effect which were applicable to them in the Community as at present constituted or in Spain have not been levied, or which have benefited from a total or partial drawback of such duties or charges,

— agricultural products, which do not fulfil the required conditions to be released for free circulation in the Community as at present constituted or in Spain.

In adopting these provisions, the Commission shall take into account the rules laid down in this Act for the elimination of customs duties between the Community as at present constituted and Spain, and for the progressive application by the Kingdom of Spain of the Common Customs Tariff and provisions concerning the common agricultural policy.

Article 51

1. Save as otherwise provided in this Act, the provisions in force with regard to customs legislation for trade with third countries shall apply under the same conditions to trade within the Community for such time as customs duties are levied in that trade.

For the purpose of establishing the customs value in respect of trade within the Community, and trade with third countries, until:

— 31 December 1992 for industrial products,

— 31 December 1995 for agricultural products,

the customs territory to be taken into consideration shall be that defined by the provisions existing in the Community and in the Kingdom of Spain on 31 December 1985.

2. The Kingdom of Spain shall apply the Common Customs Tariff and ECSC unified tariff nomenclatures in trade within the Community from 1 March 1986.

The Kingdom of Spain may include within these nomenclatures national subdivisions existing at the time of accession which are indispensable in order that the progressive elimination of its customs duties within the Community be carried out under the conditions laid down in this Act.

Article 52

During a period of three years from the date of accession, the Kingdom of Spain shall complete the restructuring of its iron and steel industry under the conditions defined in Protocol 10 annexed hereto.

The period indicated above may be shortened and the detailed rules set out in the said Protocol may be amended by the Commission with the assent of the Council on the basis of:

— the state of progression of the Spanish restructuring plans, taking into account significant factors in the re-establishment of the viablility of the undertakings,

— iron and steel measures in force in the Community after the date of accession; in that case, the arrangements applicable after accession to Spanish deliveries to the Community as at present constituted should not lead to major differences in treatment between Spain and the other Member States.

Article 53

1. Where the compensatory amounts referred to in Article 72 are applied in trade between the Community as at present constituted and the Kingdom of Spain to one or more of the basic products considered as having been used in the manufacture of goods covered by Council Regulation (EEC) No 3033/80 of 11 November 1980 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products, the following transitional measures shall be applied:

— A compensatory amount calculated on the basis of the compensatory amounts referred to in Article 72 and in accordance with the rules laid down by Regulation (EEC) No 3033/80 for calculating the variable component applicable to the goods covered by this Regulation shall be applied on importation of those goods into the Community as at present constituted from Spain.

— When the goods covered by Regulation (EEC) No 3033/80 are imported from third countries into Spain the variable component laid down by this Regulation shall be increased or reduced as the case may be by the compensatory amount referred to in the first indent.

— A compensatory amount determined on the basis of the compensatory amounts fixed for the basic products and in accordance with the rules applicable for the calculation of the refunds provided for in Council Regulation (EEC) No 3035/80 of 11 November 1980 laying down general rules for granting export refunds on certain agricultural products exported in the form of goods not covered by Annex II to the Treaty, and the criteria for fixing the amount of such refunds, shall, for the goods covered by this Regulation, be applied on exportation of those goods from the Community as at present constituted into Spain.

— Where products covered by Regulation (EEC) No 3035/80 are exported from Spain to third countries they shall be subject to the compensatory amount referred to in the third indent.

2. The customs duty constituting the fixed component of the charge applicable, as from the date of accession, to imports into Spain of goods covered by Regulation (EEC) No 3033/80 shall be determined by deducting from the basic customs duty applied by the Kingdom of Spain to products originating in the Community as at present constituted a variable component equal to the variable component laid down in application of Regulation (EEC) No 3033/80, increased or reduced, as the case may be, by the compensatory amount referred to in the first and third indents of paragraph 1.

For the products falling within the headings of the Common Customs Tariff mentioned in Annex VII, the fixed component shall be equal to the duties which appear in the said Annex.

Spain may submit the products listed in Annex VII and the spirituous beverages falling within subheading 22.09 C of the Common Customs Tariff to Community surveillance for a seven-year transitional period for exclusively statistical purposes. Nevertheless imports of those products may not be delayed in any way as a result of this statistical surveillance being applied.

3. The customs duty constituting the fixed component of the charge applicable as from the date of accession to imports into Spain from third countries of the goods covered by Regulation (EEC) No 3033/80 shall be equal to the higher of the two amounts determined as follows:

— The amount obtained by deducting from the basic customs duty applied by the Kingdom of Spain to imports from third countries a variable component equal to the variable component fixed pursuant to Regulation (EEC) No 3033/80, increased or decreased, as the case may be, by the compensatory amount referred to in the first and third indents of paragraph 1.

— The amount obtained by adding together the fixed component applicable to imports into Spain from the Community as at present constituted and the fixed component of the Common Customs Tariff duty (or with regard to third countries benefiting from the Community generalized system of preferences, the fixed preferential component which the Community applies, where appropriate, to imports from those countries).

4. By way of derogation from Article 30, the customs duties applied by the Kingdom of Spain to imports from the Community and third countries shall be converted, as from the date of accession, into the type of duty and the units entered in the Common Customs Tariff. Conversion shall be made on the basis of the value of the goods imported into Spain during the last four three-month periods for which information is available or, in the absence of imports of the goods concerned into Spain, on the basis of the unit value of the same goods imported into the Community as at present constituted.

5. Every fixed component applied in trade between the Community as at present constituted and the Kingdom of Spain shall be eliminated in accordance with Article 31.

Every fixed component applied by the Kingdom of Spain to imports from third countries shall be aligned on the fixed component of the Common Customs Tariff duty (or, where appropriate, on the fixed preferential component provided for in the Community generalized system of preferences), in accordance with Articles 37 and 40.

6. Where a reduction in the variable component of the Common Customs Tariff duty is granted to third countries benefiting from the Community generalized system of preferences, the Kingdom of Spain shall apply this variable preferential component as from the date of accession.

Section IV

Trade between the Kingdom of Spain and the Portuguese Republic

Article 54

The Kingdom of Spain shall apply Articles 30 to 53 in its trade with the Portuguese Republic, subject to the conditions set out in Protocol 3.

CHAPTER 2

Free movement of persons, services and capital

Section I

Workers

Article 55

Article 48 of the EEC Treaty shall only apply, in relation to the freedom of movement of workers between Spain and the other Member States, subject to the transitional provisions laid down in Articles 56 to 59 of this Act.

Article 56

1. Articles 1 to 6 of Regulation (EEC) No 1612/68 on the freedom of movement of workers within the Community shall apply in Spain with regard to nationals of the other Member States and in the other Member States with regard to Spanish nationals, only as from 1 January 1993.

The Kingdom of Spain and the other Member States may maintain in force until 31 December 1992, with regard to nationals of the other Member States and to Spanish nationals respectively, national provisions, or those resulting from bilateral arrangements, making prior authorization a requirement for immigration with a view to pursuing an activity as an employed person and/or taking up paid employment.

However the Kingdom of Spain and the Grand Duchy of Luxembourg may maintain in force until 31 December 1995 the national provisions referred to in the preceding subparagraph with regard to Luxembourg nationals and Spanish nationals respectively.

2. As from 1 January 1991 the Council shall, after receiving a report from the Commission, examine the results of the application of the measures of derogation referred to in paragraph 1.

On completion of this examination, the Council, acting unanimously on a proposal from the Commission may, on the basis of new data, adopt provisions intended to adjust the said measures.

Article 57

1. Article 11 of Regulation (EEC) No 1612/68 shall apply until 31 December 1990 in Spain with regard to nationals of the other Member States and in the other Member States with regard to Spanish nationals under the conditions indicated hereinafter:

(a) The members of workers' families referred to in Article 10 (1) (a) of the said Regulation, installed in accordance with regulations with the worker in the territory of a Member State at the date of signature of this Act, shall have the right, upon accession, to take up any paid employment throughout the territory of that Member State. However, eligibility for the right referred to above may be limited to the members of Spanish workers' families, installed in another Member State at a previous date defined pursuant to special bilateral arrangements concluded before the date of signature of this Act, concerning the conditions for access to employment of members of the families of Spanish workers after accession.

(b) The members of workers' families, referred to in Article 10 (1) (a) of the said Regulation, installed in accordance with regulations with the worker in the territory of a Member State after the date of signature of this Act, shall have the right to take up any paid employment there if they have been resident there for at least three years. This period of residence shall be reduced to 18 months as from 1 January 1989. This paragraph shall be without prejudice to more favourable national provisions or those resulting from bilateral arrangements.

2. The arrangements provided for in paragraph 1 shall also apply to members of the family of a self-employed person installed with him in a Member State.

Article 58

In so far as certain provisions of Directive 68/360/EEC on the abolition of restrictions on movement and residence within the Community for workers of Member States and their families may not be dissociated from those of Regulation (EEC) No 1612/68 whose application is deferred pursuant to Article 56, the Kingdom of Spain and the other Member States may derogate from those provisions to the extent necessary for the application of the provisions for derogation which are laid down in Article 56 in connection with the said Regulation.

Article 59

The Kingdom of Spain and the other Member States shall take, with the assistance of the Commission, the necessary measures so that the application of the Commission Decision of 8 December 1972 on the uniform system established pursuant to Article 15 of Council Regulation (EEC) No 1612/68, known as ‘Sedoc’ and the Commission Decision of 14 December 1972 on the ‘Community plan’ for the collection and circulation of information provided for in Article 14 (3) of Regulation (EEC) No 1612/68 may be extended to Spain by 1 January 1993 at the latest.

Article 60

1. Until the entry into force of the uniform solution for all the Member States referred to in Article 99 of Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community, and until 31 December 1988 at the latest, Articles 73 (1) and (3), 74 (1) and 75 (1) of Regulation (EEC) No 1408/71, and Articles 86 and 88 of Regulation (EEC) No 574/72 fixing the procedure for implementing Regulation (EEC) No 1408/71 shall not apply to Spanish workers who are employed in a Member State other than Spain, and the members of whose families are resident in Spain.

Articles 73 (2), 74 (2), 75 (2) and 94 (9) of Regulation (EEC) No 1408/71, and Articles 87, 89, 98 and 120 of Regulation (EEC) No 574/72 shall apply by analogy to these workers.

However, the foregoing is without prejudice to legislative provisions of a Member State whereby family benefits are to be payable in respect of members of the family, whatever their country of residence.

2. Notwithstanding Article 6 of Regulation (EEC) No 1408/71, the following provisions of Social Security Conventions shall continue to apply to Spanish workers during the period referred to in paragraph 1:

(a) Spain — Belgium — Article 20 (2) and (3) of the General Convention of 28 November 1956, — Articles 59, 60 and 61 of the Administrative Arrangement of 30 July 1969.

(b) Spain — Germany Points 1 to 4 of Article 40 (1) of the Convention of 4 December 1973, as amended by Article 2 of the Modifying Arrangement of 17 December 1975.

(c) Spain — Italy — Articles 25 and 26 of the Convention of 30 October 1979, — Articles 31 and 32 of the Administrative Arrangement of 30 October 1979.

(d) Spain — Luxembourg — Article 29 of the Convention of 8 May 1969, as amended by Article 3 of the Second Supplementary Agreement of 29 March 1978, — Article 30 of the Administrative Arrangement of 25 May 1971.

(e) Spain — Netherlands — Article 37 (2) and (5) of the Convention of 5 February 1974, — Articles 46 and 47 of the Administrative Arrangement of 5 February 1974.

(f) Spain — Portugal — Articles 23 and 24 of the General Convention of 11 June 1969, — Articles 45 and 46 of the Administrative Arrangement of 22 May 1970.

(g) Spain — United Kingdom — Article 22 of the Convention of 13 September 1974, — Article 17 of the Agreement of 30 October 1974.

Section II

Capital movements

Article 61

1. The Kingdom of Spain may, under the conditions and within the time limits set out in Articles 62 to 66, postpone the liberalization of capital movements set out in Lists A and B of the First Council Directive of 11 May 1960 for the implementation of Article 67 of the Treaty and of the Second Council Directive of 18 December 1962 adding to and amending the First Directive for the implementation of Article 67 of the EEC Treaty.

2. Appropriate consultations shall take place in due course between the Spanish authorities and the Commission on procedures for applying measures of liberalization or relaxation the implementation of which may be postponed under the following provisions.

Article 62

The Kingdom of Spain may postpone:

(a) until 31 December 1988, the liberalization of direct investments in the undertakings of the other Member States by persons resident in Spain, having as their object the acquisition and ownership of transferable securities,

(b) until 31 December 1990, the liberalization of direct investments in the undertakings of the other Member States by persons resident in Spain, having as their object the acquisition, possession or exploitation of immovable property.

Article 63

The Kingdom of Spain may postpone, until 31 December 1990, the liberalization of real estate investments in the other Member States by persons resident in Spain, to the extent that these investments are not related to emigration in the context of the freedom of movement for workers or the right of establishment.

Article 64

The Kingdom of Spain may postpone, until 31 December 1988, the liberalization of acquisition in the other Member States by persons resident in Spain of foreign securities dealt in on a stock exchange.

However, the liberalization of the acquisition:

— of these securities by insurance companies, deposit banks, industrial banks up to 10 % of the increase of their own resources,

— of these securities by investment funds and companies dealing in personal property, under the conditions laid down by national provisions governing such funds and companies,

— of fixed income securities, issued by the European Communities and the European Investment Bank,

shall take place on accession.

Article 65

The Kingdom of Spain shall, circumstances permitting, carry out the liberalization of capital movements provided for in Articles 62, 63 and 64 before the expiry of the time limits provided for in those Articles.

Article 66

For the purposes of applying the provisions of this section, the Commission may consult the Monetary Committee and submit appropriate proposals to the Council.

CHAPTER 3

Agriculture

Section I

General provisions

Article 67

1. This Chapter concerns agricultural products with the exception of products falling within Regulation (EEC) No 3796/81 on the common organization of the market in fishery products.

2. Save as otherwise provided for in this Chapter, the rules laid down in this Act shall apply to the agricultural products referred to in paragraph 1.

3. Subject to the specific provisions of this Chapter laying down different dates or shorter time limits, the application of the transitional measures for the agricultural products referred to in paragraph 1 shall terminate at the end of 1995.

Sub-section 1

Price compensation and moves towards price alignment

Article 68

Before the first move towards price alignment referred to in Article 70, the prices to be applied in Spain shall be fixed, in accordance with the rules provided for in the common organization of the market in the sector in question, at a level corresponding to that of prices fixed in Spain under the previous national system, for a representative period to be determined for each product.

If, for a given product, no definition of the Spanish price exists, the price to be applied in Spain shall be calculated on the basis of the prices actually recorded on Spanish markets during a representative period to be determined.

However, in the absence of price data in respect of certain products on the Spanish market, the price to be applied in Spain shall be calculated on the basis of the prices obtaining in the Community as at present constituted of similar products or groups of similar products, or products with which they are in competition.

Article 69

1. In the event that, on accession, it is found that the variation between the price level for a product in Spain and the common price level is minimal, the common price may be applied in Spain for the product in question.

2. The variation referred to in paragraph 1 shall be considered as minimal where it is less than or equal to 3 % of the common price.

Article 70

1. If the application of Article 68 in Spain results in a price level different from that of the common prices, the prices in respect of which, in Section II, reference is made to this Article shall, subject to paragraph 4, be aligned with the common prices each year at the beginning of the marketing year in accordance with the provisions of paragraphs 2 and 3.

2. Where the price of a product in Spain is lower than the common price, the move towards alignment shall be made in seven stages, the price in Spain, at the time of the first six moves towards alignment, being increased successively, by a seventh, a sixth, a fifth, a quarter, a third and a half of the difference between the price level in that Member State and the common price level which are applicable before each move towards alignment; the price resulting from that calculation shall be increased or reduced proportionately to any rise or fall in the common price for the next marketing year; the common price shall be applied in Spain at the time of the seventh move towards alignment:

3. (a) Where the price of a product in Spain is higher than the common price, the price in that Member State shall be maintained at the level resulting from the application of Article 68, the moves towards alignment resulting from the development of common prices during the seven years following accession. However, the price in Spain shall be adjusted to the extent necessary to avoid an increase in the variation between that price and the common price. Moreover, if the Spanish prices, expressed in ECU, fixed under the previous national arrangements for the 1985/86 marketing year have led to an overrun in the variation existing for the 1984/85 marketing year between the Spanish prices and the common prices, the price in Spain resulting from the application of the two preceding subparagraphs shall be reduced by an amount to be determined, equivalent to part of the overrun, so that the overrun is totally absorbed over the first seven marketing years following accession. Without prejudice to point (b), the common price shall be applied when the seventh move towards adjustment takes place. (b) Where the price of a product in Spain is significantly higher than the common price, the Council shall, at the end of the fourth year following accession, carry out an analysis of the development of moves towards price alignment, on the basis of an opinion from the Commission accompanied, where appropriate, by suitable proposals. The Council, acting by a qualified majority on a proposal from the Commission and after consulting the Assembly, may, in particular, prolong the period for moves towards price alignment within the limits of the maximum duration of the period of application of the transitional measures and decide on other methods of accelerated moves towards price alignment.

4. In the interests of the smooth functioning of the process of integration, it may be decided that, notwithstanding paragraph 2, the price of one or more products in Spain shall, for one marketing year, vary from the prices resulting from the application of that paragraph.

That variation may not exceed 10 % of the amount of the price move to be made.

In that event, the price level for the following marketing year shall be that which would have resulted from applying paragraph 2 if the variation had not been decided upon. A further variation from that price level may, however, be decided upon for that marketing year under the conditions laid down in the first and second subparagraphs.

The derogation laid down in the first subparagraph shall not apply to the last move towards alignment referred to in paragraph 2.

Article 71

Where, on the date of accession or during the period of application of the transitional measures, the price on the world market for a certain product exceeds the common price, the common price may be applied in Spain for the product in question, unless the price applied in Spain is higher than the common price.

Article 72

The differences in price levels in respect of which, in Section II, reference is made to this Article shall be compensated for as follows:

1. For products in respect of which prices are fixed in accordance with Articles 68 and 70, the compensatory amounts applicable in trade between the Community as at present constituted and Spain, and between Spain and third countries, shall be equal to the difference between the prices fixed for Spain and the common prices. However, the compensatory amount established in accordance with the rules referred to above shall, where appropriate, be corrected to take into account also the incidence of national aid that the Kingdom of Spain is authorized to maintain under Article 80.

2. No compensatory amount shall, however, be fixed if the application of paragraph 1 results in a minimal amount.

3. (a) In trade between Spain and the Community as at present constituted, compensatory amounts shall be levied by the importing State or granted by the exporting State. (b) In trade between Spain and third countries, levies or other import charges applied under the common agricultural policy, and, save for express derogation, export refunds, shall be reduced or increased, as the case may be, by the compensatory amounts applicable in trade with the Community as at present constituted. Customs duties may not, however, be reduced by the compensatory amount.

4. For products in respect of which the duty in the Common Customs Tariff is bound under the General Agreement on Tariffs and Trade, the binding shall be taken into account.

5. The compensatory amount levied or granted by a Member State in accordance with paragraph 1 may not exceed the total amount levied by that same Member State on imports from third countries, benefiting from the most-favoured-nation clause. The Council, acting by a qualified majority on a proposal from the Commission, may derogate from this rule, in particular in order to avoid deflections of trade and distortions of competition.

6. The Council, acting by a qualified majority on a proposal from the Commission, may derogate, in so far as is necessary for the proper functioning of the common agricultural policy, from the first subparagraph of Article 53 for products to which compensatory amounts apply.

Article 73

If the world market price for a product is higher than the price used in calculating the import charge introduced under the common agricultural policy, less the compensatory amount deducted from the import charge in accordance with Article 72 or, if the refund on exports to third countries is less than the compensatory amount or, if no refund is applicable, appropriate measures may be taken with a view to ensuring the proper functioning of the common organization of the market.

Article 74

1. The compensatory amounts granted shall be financed by the Community from the Guarantee Section of the European Agricultural Guidance and Guarantee Fund.

2. Expenditure to be made by the Kingdom of Spain with regard to intervention on its internal market and to the granting of refunds or subsidies for exports to third countries and the other Member States shall remain national until 31 December 1989 for products falling under Regulation (EEC) No 1035/72 on the common organization of the market in fruit and vegetables.

However, the Community shall participate in financing intervention operations carried out by the Kingdom of Spain during the verification of convergence phase applicable to those products under the conditions set out in Article 133.

As from the second phase, expenditure on intervention in the Spanish domestic market and on the granting of refunds for exports to third countries shall be financed by the Community under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund.

Sub-section 2

Free movement and customs union

Article 75

The following provisions shall apply to products the importation of which from third countries into the Community as at present constituted is subject to customs duties:

1. Without prejudice to paragraphs 4 and 5, customs duties on imports shall be progressively abolished between the Community as at present constituted and Spain in accordance with the following time-table: — on 1 March 1986, each duty shall be reduced to 87,5 % of the basic duty, — on 1 January 1987, each duty shall be reduced to 75 % of the basic duty, — on 1 January 1988, each duty shall be reduced to 62,5 % of the basic duty, — on 1 January 1989, each duty shall be reduced to 50 % of the basic duty, — on 1 January 1990, each duty shall be reduced to 37,5 % of the basic duty, — on 1 January 1991, each duty shall be reduced to 25 % of the basic duty, — on 1 January 1992, each duty shall be reduced to 12,5 % of the basic duty, — on 1 January 1993, every duty shall be abolished. However: (a) for products falling within Regulation (EEC) No 1035/72, tariff dismantling shall take place over a transitional period of 10 years in accordance with the following procedure: — for products for which a reference price is fixed, the duties shall be progressively abolished in eleven annual instalments in accordance with the following timetable: — on 1 March 1986, 10 %, — on 1 January 1987, 10 %, — on 1 January 1988, 10 %, — on 1 January 1989, 10 %, — on 1 January 1990, 25 %, — on 1 January 1991, 15 %, — on 1 January 1992, 4 %, — on 1 January 1993, 4 %, — on 1 January 1994, 4 %, — on 1 January 1995, 4 %, — on 1 January 1996, 4 %, — for the other products, customs duties shall be progressively abolished in accordance with the following timetable: — on 1 March 1986, each duty shall be reduced to 90,9 % of the basic duty, — on 1 January 1987, each duty shall be reduced to 81,8 % of the basic duty, — on 1 January 1988, each duty shall be reduced to 72,7 % of the basic duty, — on 1 January 1989, each duty shall be reduced to 63,6 % of the basic duty, — on 1 January 1990, each duty shall be reduced to 54,5 % of the basic duty, — on 1 January 1991, each duty shall be reduced to 45,4 % of the basic duty, — on 1 January 1992, each duty shall be reduced to 36,3 % of the basic duty, — on 1 January 1993, each duty shall be reduced to 27,2 % of the basic duty, — on 1 January 1994, each duty shall be reduced to 18,1 % of the basic duty, — on 1 January 1995, each duty shall be reduced to 9 % of the basic duty, — on 1 January 1996, every duty shall be abolished; (b) for products falling within Regulation (EEC) No 805/68 on the common organization of the market in beef and veal, customs duties on imports shall be progressively abolished in eight stages by 12,5 % at the beginning of each of the eight marketing years following accession; (c) for oil seeds and oleagineous fruit falling under subheading 12.01 B of the Common Customs Tariff and for products falling within heading No 12.02 and subheading 23.04 B thereof, import duties shall be progressively abolished between the Community as at present constituted and Spain in accordance with the following timetable: — on 1 March 1986, each duty shall be reduced to 90,9 % of the basic duty, — on 1 January 1987, each duty shall be reduced to 81,8 % of the basic duty, — on 1 January 1988, each duty shall be reduced to 72,7 % of the basic duty, — on 1 January 1989, each duty shall be reduced to 63,6 % of the basic duty, — on 1 January 1990, each duty shall be reduced to 54,5 % of the basic duty, — on 1 January 1991, each duty shall be reduced to 45,4 % of the basic duty, — on 1 January 1992, each duty shall be reduced to 36,3 % of the basic duty, — on 1 January 1993, each duty shall be reduced to 27,2 % of the basic duty, — on 1 January 1994, each duty shall be reduced to 18,1 % of the basic duty, — on 1 January 1995, each duty shall be reduced to 9 % of the basic duty, — on 1 January 1996, every duty shall be abolished; (d) for the products referred to in Article 1 (2) (b) of Regulation No 136/66/EEC, with the exception of those falling within heading No 12.02 and subheading 23.04 B of the Common Customs Tariff, the Community as at present constituted and the Kingdom of Spain shall apply unchanged their respective basic duties and charges having equivalent effect during the period of application in Spain of certain control mechanisms referred to in Article 94. On the expiry of that period, charges having an equivalent effect to customs duties shall be abolished in their entirety, and the customs duties shall be progressively abolished in accordance with the following timetable: — on 1 January 1991, each duty shall be reduced to 83,3 % of the basic duty, — on 1 January 1992, each duty shall be reduced to 66,6 % of the basic duty, — on 1 January 1993, each duty shall be reduced to 49,9 % of the basic duty, — on 1 January 1994, each duty shall be reduced to 33,2 % of the basic duty, — on 1 January 1995, each duty shall be reduced to 16,5 % of the basic duty, — on 1 January 1996, every duty shall be abolished.

2. Without prejudice to paragraphs 4 and 5, for the purposes of the implementation by the Kingdom of Spain of the Common Customs Tariff, the following provisions shall apply: (a) For the following products: — products falling within Regulation (EEC) No 805/68, — products falling within Regulation (EEC) No 1035/72 and for which, for the whole or part of the marketing year, a reference price is fixed, — products falling within Regulation (EEC) No 337/79 on the common organization of the market in wine and for which a reference price is fixed, the Kingdom of Spain shall apply the Common Customs Tariff duties in their entirety from 1 March 1986. (b) For oil seeds and oleaginous fruit falling under subheading 12.01 B of the Common Customs Tariff and all the products falling under heading No 12.02 and subheading 23.04 B thereof, so that the Common Customs Tariff may be progressively introduced, the Kingdom of Spain shall amend its tariff applicable to third countries as follows: (aa) For the tariff headings for which the basic duties do not vary from the Common Customs Tariff duties by more than 15 % either above or below, these latter duties shall apply. (bb) In the other cases the Kingdom of Spain shall apply a duty reducing the variation between the basic duty and the Common Customs Tariff duty in accordance with the following timetable: — on 1 March 1986, the variation shall be reduced to 90,9 % of the initial variation, — on 1 January 1987, the variation shall be reduced to 81,8 % of the initial variation, — on 1 January 1988, the variation shall be reduced to 72,7 % of the initial variation, — on 1 January 1989, the variation shall be reduced to 63,6 % of the initial variation, — on 1 January 1990, the variation shall be reduced to 54,5 % of the initial variation, — on 1 January 1991, the variation shall be reduced to 45,4 % of the initial variation, — on 1 January 1992, the variation shall be reduced to 36,3 % of the initial variation, — on 1 January 1993, the variation shall be reduced to 27,2 % of the initial variation, — on 1 January 1994, the variation shall be reduced to 18,1 % of the initial variation, — on 1 January 1995, the variation shall be reduced to 9 % of the initial variation. The Kingdom of Spain shall apply the Common Customs Tariff in its entirety from 1 January 1996. (c) For the products referred to in Article 1 (2) (b) of Regulation No 136/66/EEC, with the exception of those falling within heading No 12.02 and subheading 23.04 B of the Common Customs Tariff, the Kingdom of Spain shall apply unchanged its basic duties and charges having equivalent effect during the period of application in Spain of certain control mechanisms referred to in Article 94. On the expiry of that period, the Kingdom of Spain shall abolish charges having an equivalent effect to customs duties in their entirety and shall amend its tariff applicable to third countries as follows: (aa) For the tariff headings from which the basic duties do not vary from the Common Customs Tariff duties by more than 15 % either above or below, these latter duties shall apply. (bb) In other cases the Kingdom of Spain shall reduce the variation between the basic duties and the Common Customs Tariff duties in accordance with the following timetable: — on 1 January 1991, the variation shall be reduced to 83,3 % of the initial variation, — on 1 January 1992, the variation shall be reduced to 66,6 % of the initial variation, — on 1 January 1993, the variation shall be reduced to 49,9 % of the initial variation, — on 1 January 1994, the variation shall be reduced to 33,2 % of the initial variation. — on 1 January 1995, the variation shall be reduced to 16,5 % of the initial variation. The Kingdom of Spain shall apply the Common Customs Tariff in its entirety from 1 January 1996. (d) For the other products: (aa) The Common Customs Tariff duty shall be applied by the Kingdom of Spain in its entirety from 1 March 1986, if its basic duties are less than or equal to those of the Common Customs Tariff, with the exception of: — natural honey falling within heading No 04.06 of the Common Customs Tariff and unmanufactured tobacco and tobacco refuse falling within heading No 24.01 thereof, for which the Kingdom of Spain shall reduce the variation between the basic duty and the Common Customs Tariff duty in eight movements of 12,5 %, each movement taking place on 1 March 1986 and 1 January of the years 1987 to 1993, — cocoa beans, whole or broken, raw or roasted falling within heading No 18.01 of the Common Customs Tariff and coffee, unroasted and not freed of caffeine falling within subheading 09.01 A I a) thereof, for which the Kingdom of Spain shall reduce the variation between the basic duty and the Common Customs Tariff duty in accordance with the following timetable: — on 1 March 1986, the variation shall be reduced to 83,3 % of the initial variation, — on 1 January 1987, the variation shall be reduced to 66,6 % of the initial variation, — on 1 January 1988, the variation shall be reduced to 49,9 % of the initial variation, — on 1 January 1989, the variation shall be reduced to 33,2 % of the initial variation, — on 1 January 1990, the variation shall be reduced to 16,5 % of the initial variation. From 1 January 1991 the Kingdom of Spain shall apply the Common Customs Tariff in its entirety. (bb) If Spanish basic duties are higher than the Common Customs Tariff duties, the Kingdom of Spain shall amend its tariff applicable to third countries as follows: (i) For the tariff headings for which the basic duties do not vary from the Common Customs Tariff duties by more than 15 % either above or below, these latter duties shall apply. (ii) In the other cases the Kingdom of Spain shall apply a duty reducing the variation between the basic duties and the Common Customs Tariff duties in eight equal instalments of 12,5 %, on the following dates: — 1 March 1986, — 1 January 1987, — 1 January 1988, — 1 January 1989, — 1 January 1990, — 1 January 1991, — 1 January 1992. The Kingdom of Spain shall apply the Common Customs Tariff in its entirety from 1 January 1993.

3. Within the meaning of paragraphs 1 and 2, the basic duty shall be that defined in Article 30. However: — for the products referred to in Annex VIII, the basic duty shall be that which appears opposite each product, — for oil seeds and oleaginous fruit falling within subheading 12.01 B of the Common Customs Tariff and for products falling within heading No 12.02 and subheading 23.04 B thereof, subject under the previous national arrangements to the levy on import into Spain of the so-called ‘regulatory’ or ‘variable compensatory’ duties, the basic duty shall be fixed at a level to be determined under the conditions laid down in Article 91, representative of the 1984/85 marketing year.

4. For products subject to the common organization of markets, it may be decided, following the procedure laid down in Article 38 of Regulation No 136/66/EEC or, as the case may be, in the corresponding Articles of other Regulations setting up the common organization of agricultural markets, that: (a) Spain, at its request, shall: — abolish the customs duties referred to in paragraph 1 or move towards the alignment with customs duties applicable to products other than those referred to in paragraph 2 (a) at a more rapid rate than laid down there, — suspend in whole or in part the customs duties on products imported from the present Member States, — suspend in whole or in part the customs duties on products imported from third countries for products other than those referred to in paragraph 2 (a); (b) the Community as at present constituted shall: — abolish the customs duties referred to in paragraph 1 at a more rapid rate than laid down there, — suspend in whole or in part the customs duties on products imported from Spain. For products which are not subject to the common organization of markets: (a) no decision is required for the Kingdom of Spain to apply the measures referred to in the first and second indents of point (a) of the first subparagraph; the Kingdom of Spain shall inform the other Member States and the Commission of the measures taken; (b) the Commission may suspend in whole or in part the customs duties applicable to products imported from Spain. The customs duties resulting from an accelerated alignment or suspended customs duties may not be less than the customs duties on imports of the same products from other Member States.

5. Should special difficulties arise on the market of products falling within subheadings 15.17 B II and 23.04 B of the Common Customs Tariff, the Kingdom of Spain may be authorized, in accordance with the procedure laid down in Article 38 of Regulation No 136/66/EEC to: (a) defer the reduction to be made, under point 1 (c), to import duties in the Community as at present constituted; (b) defer the reduction to be made, under point 2 (b), to the variation existing between its basic duties and the Common Customs Tariff duties; (c) increase, during such time as is strictly necessary to eliminate the difficulties encountered, the import duties referred to above in points (a) and (b).

Article 76

1. The system applicable in the Community as at present constituted in respect of customs duties and charges having equivalent effect and quantitative restrictions and measures having equivalent effect in trade between Spain and the other Member States and between Spain and third countries shall apply in Spain from 1 March 1986, subject to any provision to the contrary in this Chapter, in respect of products covered, on the date of accession, by the common organization of markets.

2. In respect of products not covered, on 1 March 1986, by the common organization of markets, the provisions of Title II of Part Four concerning the elimination of charges having equivalent effect to customs duties and the progressive abolition of quantitative restrictions and measures having equivalent effect shall not apply to those charges, restrictions and measures if they form part of a national market organization in Spain or in another Member State on the date of accession.

This provision shall only apply until the common organization of the market for these products is implemented and not later than 31 December 1995 and to the extent strictly necessary to ensure the maintenance of the national organization.

3. The Kingdom of Spain shall apply the Common Customs Tariff nomenclature as from 1 March 1986.

To the extent that no difficulties arise in the application of the Community rules and, in particular, in the functioning of the common organization of markets and of the transitional mechanisms provided for in this Chapter, the Council, acting by a qualified majority on a proposal from the Commission, may authorize the Kingdom of Spain to include within this nomenclature such existing national subdivisions as would be indispensable for carrying out the progressive moves towards alignment with the Common Customs Tariff or the elimination of the duties within the Community under the conditions laid down in this Act.

Article 77

Without prejudice to Article 94, the Kingdom of Spain may, in accordance with detailed rules to be determined, maintain quantitative restrictions on the import from third countries:

(a) of the following products until 31 December 1989: CCT heading No Description 07.01 Vegetables, fresh or chilled: B. Cabbages, cauliflowers and Brussels sprouts: I. Cauliflowers G. Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots: ex II. Carrots and turnips: — Carrots ex H. Onions, shallots and garlic: — Onions and garlic M. Tomatoes 08.02 Citrus fruit, fresh or dried: A. Oranges B. Mandarins (including tangerines and satsumas); clementines, wilkings and other similar citrus hybrids: ex II. Other: — Mandarins (including tangerines and satsumas) C. Lemons 08.04 Grapes, fresh or dried: A. Fresh: I. Table grapes 08.06 Apples, pears and quinces, fresh: A. Apples B. Pears 08.07 Stone fruit, fresh: A. Apricots ex B. Peaches, including nectarines: — Peaches

(b) of the products referred to in Article 1 of Regulation (EEC) No 2759/75 and of the following products until 31 December 1995: CCT heading No Description 02.04 Other meat and edible meat offals, fresh, chilled or frozen: ex A. Of domestic pigeons and domestic rabbits: — Meat of domestic rabbits 11.01 Cereal flours: A. Wheat or meslin flour 11.02 Cereal groats and cereal meal; other worked cereal grains (for example, rolled, flaked, polished, pearled or kibbled but not further prepared), except rice falling within heading No 10.06; germ of cereals, whole, rolled, flaked or ground: A. Cereal groats and cereal meal B. Hulled grains (shelled or husked), whether or not sliced or kibbled C. Pearled grains D. Grains not otherwise worked than kibbled ex E. Rolled grains; flaked grains: — Rolled grains G. Germ of cereals, whole, rolled, flaked or ground 11.08 Starches; inulin: A. Starches: III. Wheat starch 11.09 Wheat gluten, whether or not dried

(c) of the products subject to the supplementary mechanism applicable to imports into Spain from the Community as at present constituted, referred to Article 81, other than those falling within Regulation (EEC) No 1035/72.

Article 78

1. The component for protection of the processing industry which is used in calculating the charge on imports from third countries of products covered by the common organization of the markets in cereals and rice shall be levied on imports from Spain into the Community as at present constituted.

2. For imports into Spain, the amount of that component shall be determined by separating out, from the protection applied on 1 January 1985, the component or components designed to ensure the protection of the processing industry; however, this amount may not exceed the level of the Community protection component fixed for that product. If specific difficulties of quantification do not allow the determination of the protection component applicable in Spain, that Member State shall immediately apply the Community protection component.

Such components shall be levied on imports from other Member States; they shall replace, as regards the charge on imports from third countries, the Community protection component.

3. Article 75 shall apply to the component referred to in paragraphs 1 and 2, which shall be considered as the basic component. The reductions or alignments in question shall, however, be made in eight stages by 12,5 % at the beginning of the eight marketing years following accession fixed for the basic product concerned.

Sub-section 3

Aid

Article 79

1. The provisions of this Article shall apply to aids, premiums or other similar amounts set up under the common agricultural policy in respect of which reference is made to this Article in Section II.

2. For the purposes of applying Community aid in Spain, the following provisions shall apply:

(a) The level of Community aid to be granted for a given product in Spain from 1 March 1986 shall be equal to an amount defined on the basis of aids granted by the Kingdom of Spain, during a representative period to be determined, under the previous national arrangements. However, that amount may not exceed the amount of aid granted on 1 March 1986 to the Community as at present constituted. If no similar aid was granted under the previous national arrangements, and subject to the following provisions, no aid shall be granted in Spain on 1 March 1986.

(b) At the start of the first marketing year, or in absence thereof, of the first period of application of the aid following accession: — either Community aid shall be introduced in Spain at a level representing one-seventh of the amount of Community aid applicable for the ensuing marketing year or period, — or the level of Community aid in Spain shall, where a difference exists, be aligned on the level of aid applicable in the Community as at present constituted for the ensuing marketing year or period by one-seventh of the difference existing between those two aids.

(c) At the start of the following marketing years or periods of application, the level of Community aid in Spain shall be aligned on the level of aid applicable in the Community as at present constituted for the ensuing marketing year or period successively by one-sixth, one-fifth, one-quarter, one-third and half the difference existing between those two aids.

(d) The level of Community aid shall be applied in its entirety in Spain at the start of the seventh marketing year or period of application of the aid following accession.

Article 80

1. Without prejudice to Article 79, the Kingdom of Spain shall be authorized to maintain national aids, the abolition of which would not fail to have serious consequences both for producer and consumer prices. However, such aids can only be maintained on a transitional and, in principle, degressive basis, until not later than the end of the period of application of the transitional measures.

2. The Council, acting under the conditions set out in Article 91, shall adopt the necessary measures for the implementation of the provisions of this Article. These measures shall include in particular the list and the exact wording of the aids referred to in paragraph 1, the amount of the aids, the timetable of their abolition, any degressivity scale and the detailed rules necessary to ensure the proper functioning of the common agricultural policy; these detailed rules must, in addition, ensure equal access to the Spanish market.

3. Should the need arise, a derogation may be made, during the period of application of the transitional measures, from the degressivity scale referred to in paragraph 2.

Sub-section 4

Supplementary trade mechanism

Article 81

1. A supplementary mechanism applicable to trade between the Community as at present constituted and Spain shall be set up, hereinafter referred to as ‘the STM’.

The STM shall apply from 1 March 1986 to 31 December 1995, with the exception of the products referred to in the first indent of paragraph 2 (a) and point (b) (cc) to which it shall apply from 1 January 1990 to 31 December 1995.

2. The following products shall be subject to the STM:

(a) With regard to imports into the Community as at present constituted: — products of the fruit and vegetable sector falling within Regulation (EEC) No 1035/72, — products of the wine sector falling within Regulation (EEC) No 337/79, — new potatoes falling within subheading 07.01 A II of the Common Customs Tariff.

(b) With regard to imports into Spain, the following products: (aa) Products of the wine sector falling within Regulation (EEC) No 337/79. (bb) CCT heading No Description 01.02 Live animals of the bovine species: A. Domestic species: ex II. Other: — Excluding animals for bull fights 02.01 Meat and edible offals of the animals falling within heading No 01.01, 01.02, 01.03 or 01.04, fresh, chilled or frozen: A. Meat: II. Of bovine animals B. Offals: II. Other: b) Of bovine animals 02.06 Meat and edible meat offals (except poultry liver), salted, in brine, dried or smoked: C. Other: I. Of bovine animals 04.01 Milk and cream, fresh, not concentrated or sweetened 04.02 Milk and cream, preserved, concentrated or sweetened: A. Not containing added sugar: ex II. Milk and cream, in powder or granules: — Intended for human consumption B. Containing added sugar: I. Milk and cream, in powder or granules: a) Special milk for infants, in hermetically sealed containers of a net capacity of 500 g or less and of a fat content, by weight, exceeding 10 % but not exceeding 27 % ex b) Other: — Intended for human consumption 04.03 Butter 04.04 Cheese and curd: A. Emmentaler, Gruyère, Sbrinz, Bergkäse, Appenzell, Vacherin fribourgeois and Tête de moine, not grated or powdered B. Glarus herb cheese (known as Schabziger), made from skimmed milk and mixed with finely-ground herbs C. Blue-veined cheese, not grated or powdered D. Processed cheese, not grated or powdered E. Other: I. Not grated or powdered, of a fat content, by weight, not exceeding 40 % and a water content, calculated by weight of the non-fatty matter: ex a) Not exceeding 47 %: — Excluding curd b) Exceeding 47 % but not exceeding 72 %: 1. Cheddar ex 2. Other: — Excluding curd c) Exceeding 72 %: ex. 1. In immediate packings of a net capacity not exceeding 500 g: — Excluding curd ex. 2. Other: — Excluding curd II. Other: a) Grated or powdered ex b) Other: — Excluding curd CCT heading No Description 07.01 Vegetables, fresh or chilled: B. Cabbages, cauliflowers and Brussels sprouts: I. Cauliflowers G. Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots: ex II. Carrots and turnips: — Carrots ex H. Onions, shallots and garlic: — Onions and garlic M. Tomatoes 08.02 Citrus fruit, fresh or dried: A. Oranges B. Mandarins (including tangerines and satsumas); clementines, wilkings and other similar citrus hybrids: ex II. Other: — Mandarins (including tangerines and satsumas) C. Lemons 08.04 Grapes, fresh or dried: A. Fresh: I. Table grapes 08.06 Apples, pears and quinces, fresh: A. Apples B. Pears 08.07 Stone fruit, fresh: A. Apricots ex B. Peaches, including nectarines: — Peaches (dd) CCT heading No Description 10.01 Wheat and meslin (mixed wheat and rye): B. Other: ex I. Common wheat, and meslin: — Common wheat of breadmaking quality

3. In accordance with the procedures set out in Article 82 a decision may be made to withdraw from the list of products subject to the STM:

(a) Products from the wine sector, new potatoes and milk in powder or granules intended for human consumption at the start of the second year following accession and at the start of each of the following years.

(b) Fruit and vegetables, at the latest nine months before the expiry of the fourth year following accession and of the start of each of the following years.

(c) The other products referred to in paragraph 2 (b), as from the fifth year following accession and at the start of each following year. With regard to those products, account will be taken in particular of the situation at the level of the production and marketing structure of the products in question.

4. A decision may be made, in accordance with the procedure laid down in Article 11 of Regulation (EEC) No 2358/71 on the common organization of the market in seeds, the Management Committee set up by that Regulation having competence in the matter, to submit to the STM, for the period 1 March 1986 to 31 December 1989, imports into Spain of certified seed potatoes of lesser quality falling within subheading ex 07.01 A I of the Common Customs Tariff.

5. Should especial difficulties be experienced a decision may be made, at the request of the Kingdom of Spain and in accordance with the procedure laid down in Article 82, to supplement the list of products subject to the STM on import into Spain with regard to those products falling within Regulation (EEC) No 1035/72 not referred to in paragraph 2 (b).

6. The Commission shall submit at the beginning of each year a report to the Council on the functioning of the STM during the previous year.

Article 82

1. An ad hoc Committee shall be established consisting of representatives of the Member States and presided over by a representative of the Commission.

2. Within the ad hoc Committee the votes of Member States shall be weighted in accordance with Article 148 (2) of the EEC Treaty. The chairman shall not vote.

3. Where the procedure laid down in this Article is to be followed, the chairman shall refer the matter to the ad hoc Committee, either on his own initiative or at the request of the representative of a Member State.

4. The representative of the Commission shall submit a draft of the measures to be adopted. The Committee shall deliver its opinion on the draft within a time limit set by the chairman according to the urgency of the matter. An opinion shall be delivered by a majority of 54 votes.

5. The Commission shall adopt the measures and shall apply them immediately, where they are in accordance with the opinion of the Committee. If they are not in accordance with the opinion of the Committee or in the absence of any opinion, the Commission shall forthwith submit to the Council a proposal relating to the measures to be taken. The Council shall adopt the measures on a qualified majority.

If, on the expiry of one month from the date on which the matter was referred to it, the Council has not adopted any measures, the Commission shall adopt the proposed measures and apply them immediately, save in the case where the Council has decided by a simple majority against the said measures.

Article 83

1. At the start of each marketing year, a forward estimate shall be drawn up, following the procedure set out in Article 38 of Regulation No 136/66/EEC or, as the case may be, the corresponding Articles of the other Regulations on the common organization of agricultural markets, for each of the products subject to the STM. For new potatoes the estimate shall be drawn up in accordance with procedure set out in Article 33 of Regulation (EEC) No 1035/72, the Management Committee set up by that Regulation having competence in the matter.

This estimate shall be drawn up on the basis of production and consumption estimates in Spain or in the Community as at present constituted; on the basis of this estimate, a forward timetable shall be drawn up for the marketing year in question in accordance with the same procedure on development in trade and on fixing an indicative import ceiling in the market in question.

A specific estimate shall be drawn up for the period running from 1 March 1986 until the beginning of the 1986/87 marketing year for each of the products or groups of the products.

2. The successive fixing of indicative ceilings must reflect a certain steady progress in relation to traditional trade flows, so as to ensure a harmonious and gradual opening up of the market and the full realization of free movement within the Community on the expiry of the period of application of transitional measures.

To that end, an annual rate of progress for the ceiling shall be determined in accordance with the procedure referred to in paragraph 1. Within the framework of the overall indicative ceiling, ceilings may be fixed corresponding to the different periods of the marketing year in question.

Article 84

1. Until 31 December 1989, when the timetable referred to in Article 83 is drawn up, a ‘guide’ quantity shall be determined, for imports into Spain:

— of the products referred to in Article 81 (2) (b) (bb), with the exception of those falling within heading ex 04.02 of the Common Customs Tariff,

— the products referred to in Article 81 (2) (b) (dd).

2. The ‘guide’ quantity applicable to 1986 and its progress for each of the following three years in relation to the previous year shall be:

CCT heading No Description Guide quantity Rate of progress 01.02 Live animals of the bovine species: A. Domestic species: ex II. Other: — Excluding animals for bull fights 20 000 tonnes (of which: — live animals 12 000 head — fresh and chilled meat 2 000 tonnes) 10 %, 12,5 %, 15 % 02.01 Meat and edible offals of the animals falling within heading No 01.01, 01.02, 01.03 or 01.04, fresh, chilled or frozen: A. Meat: II. Of bovine animals B. Offals: II. Other: b) Of bovine animals 02.06 Meat and edible meat offals (except poultry liver), salted, in brine, dried or smoked: C. Other: I. Of bovine animals 04.01 Milk and cream, fresh not concentrated or sweetened 200 000 tonnes (of which 40 000 tonnes) for milk and cream in small packings) 10 %, 12,5 %, 15 % 04.03 Butter 1 000 tonnes 15 %, 15 %, 15 % 04.04 Cheese and curd: A. Emmentaler, Gruyère, Sbrinz, Bergkäse, Appenzell, Vacherin fribourgeois and Tête do moine, not grated or powdered B. Glarus herb cheese (known as Schabziger), made from skimmed milk and mixed with finely-ground herbs C. Blue-veined cheese, not grated or powdered D. Processed cheese, not grated or powdered E. Other: I. Not grated or powdered, of a fat content, by we