OfficialJournaloftheEuropeanCommunities 3
1.11.72 OfficialJournaloftheEuropeanCommunities NoL248/1
REGULATION (EEC)No2291/72OFTHECOUNCIL
of31October1972
opening,allocatingandprovidingfortheadministration ofaCommunity
tariffquotaforthetreatmentofcertaintextileproductsinCommunityoutward
processingtraffic
THECOUNCIL OFTHEEUROPEAN COMMUNI­
TIES,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunityandinparti­
cularArticle113thereof;
Havingregardtotheproposalfromthe
Commission ;
WhereastheCommunityconcludedanarrange­
mentwithSwitzerlandon1August1969on
processingtrafficintextiles;whereaspursuant
tothisarrangement ,theCommunitydeclared
itselfreadytoproceedtotheopeningofan
annualduty-free .Communitytariffquotaon
1Septemberofeveryyear,toatotalof
1870000value-addedunitsofaccount,in
respectofgoodsarisingfromprocessing,tobe
apportionedasfollows:
(a)1650000unitsofaccountfortheprocessing
offabricsfallingunderChapters50to57of
theCommonCustomsTariff;
(b)143000unitsofaccountfortwisting,
throwing,multiplying,cablingandtexturis­
ation(evencombinedwithotherprocesses)
ofyarnsfallingunderChapters50to57of
theCommonCustomsTariff;
(c)77000unitsofaccountfortheprocessing
ofarticlesfallingunderheadings58.04,
58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
Whereas,however,inordertomakethe
allocationofthetotalamountofthequota
betweenthethreecategoriesofprocessing
mentionedabovecorrespondbetterwiththe
patternoftradewhichactuallydeveloped
duringtheyearunderreview,itwasdecidedby
commonagreementtotransfer150000unitsof
accountfromthe1650000unitsofaccount
allocatedtotheprocessingoffabricsfalling
underChapters50to57oftheCommon
CustomsTarifftothe77000unitsofaccountreservedfortheprocessingofarticlesfalling
withincertainCommonCustomsTariffheadings
between58.04and60.01;
Whereasfortheperiod1September1972to
31August1973theCommunitycustomsquota
inquestionshouldbeopened,inaccordance
withtheprocedureslaiddownintheabove­
mentionedarrangement ,asamended;.
Whereas,itisinparticularnecessarytoensure
equalanduninterrupted accesstoallthose
concernedinsuchCommunitytrafficto
theabovementioned quotaanduninterrupted
applicationoftheratelaiddownforthat
quotatoallre-importsintoallMemberStates
untilthequotaofproductswhichhaveunder­
goneoneorotheroftheaboveprocesseshave
beenusedup;whereashavingregardtothe
principlesmentionedabove,theCommunity
natureofthequotacanberespectedbyallo­
catingtheCommunitytariffquotaamongthe
MemberStates;whereasitisthereforesufficient
toallocatethisquotaonthebasisoftraffic
developedunderformerbilateralagreements
withoutprejudicingtheopportunities tobe
offeredtoMemberStateswhodidnotpre­
viouslyhaverecoursetothiskindoftraffic;
whereas,inordertosafeguardtheCommunity
characterofthequotainquestion,provisions
shouldbemadetocoverpossibleneedswhich
mightariseintheMemberStates;whereasthe
methoddescribedinArticle3ofthisRegulation
makesitpossibleasanexceptiontotakethis
elementintoaccountwhereinitialshareshave
notbeengranted;
Whereas,inordertotakeintoaccountthe
possibletrendoftrafficinthedifferentMember
States,thequotaamountof1870000unitsof
accountshouldbedividedintotwoinstalments,
thefirstinstalmentbeingallocatedamong
theMemberStates,andthesecondforminga
reserveintendedultimatelytocoverrequire­
mentsofMemberStateswhentheirinitial

4 OfficialJournaloftheEuropeanCommunities
approvedprocessingtraffic,CommonCustoms
Tariffdutiesshallbetotallysuspendedforan
annualCommunitytariffquotaof1870000
value-addedunitsofaccount,inrespectof
goodsresultingfromtheprocessingoperations
providedforinthearrangementwithSwitzer­
landonprocessingtrafficintextiles,andshall
beallocatedasfollows:
(a)1500000unitsofaccountfortheprocessing
offabricsfallingunderChapters50to57of
theCommonCustomsTariff;
(b)143000unitsofaccountfortwistingor
throwing,multiplying,cabling,texturisa­
^tion(evencombinedwithotherprocesses)
oftheyarnsfallingunderChapters50to57
oftheCommonCustomsTariff;
(c)227000unitsofaccountforprocessingof
articlesfallingunderthefollowingtariff
headingsinthe-CommonCustomsTariff:
58.04Wovenpilefabricsandchenille
fabrics(otherthanterry-towelling
orsimilarterryfabricsofcotton
fallingwithinheadingNo58.05)
58.05Narrowwovenfabrics,andnarrow
fabrics(bolduc)consistingofwarp
withoutweftassembledby.means
ofanadhesive,otherthangoods
fallingwithinheadingNo58.06
58.07Chenilleyarn(includingflock
chenilleyarn),gimpedyarn(other
thanmetallisedyarnofheading
No52.01andgimpedhorsehair
yarn);braidsandornamental
trimmingsinthepiece;tassels,
pomponsandthelike
58.08Tulleandothernetfabrics(butnot
includingwoven,knittedorcro­
chetedfabrics),plain
58.09Tulleandothernetfabrics(butnot
includingwoven,knittedorcro­
chetedfabrics),figured;handor
mechanically madelace,inthe
piece,instripsorinmotifs
60.01Knittedorcrochetedfabric,not
elasticnorrubberised .quotasharesareusedupandrequirements
whichmayariseincertainMemberStatesas
regardsprocessingforwhichaninitialquota
sharehasnotbeengranted;whereas,inorderto
ensureacertaindegreeofsecuritytothose
concernedineachMemberStatethefirst
instalmentoftheCommunitytariffquota
shouldbedeterminedatarelativelyhighlevel,
which,underpresentcircumstances ,maybe
90%ofthequotaamount;whereasthereserve
percentage (approximately 10%)mustbe
applied,toeachcategoryofprocessingin
pursuanceofthearrangementinquestion;
Whereastheinitialquotasharesofthose
MemberStatesmaybeusedupatdifferent
times;whereas,inordertotakethisfactinto
accountandavoidanybreakincontinuity,it
isimportantthatanyMemberStatehaving
usedupalmostthewholeofitsinitialquota
shareshoulddrawanadditionalquotashare
fromthereserve;whereasthismustbedone
byeachMemberStateasandwheneachofits
additionalquotasharesisalmostentirelyused
up,andrepeatedasmanytimesasthereserve
allows;whereastheinitialandadditionalquota
sharesmustbeavailableforuseuntiltheendof
thequotaperiod;whereassuchmethodof
administration callsforclosecooperationbe­
tweenMemberStatesandtheCommission,
whichmust,inparticular,beabletoobserve
theextenttowhichthequotaamountsare
usedandinformMemberStatesthereof;
Whereasif,ataspecifieddateinthequota
period,aconsiderablebalanceofoneofthe
initialsharesremainsinoneorotherMember
StateitisessentialthatthatMemberState
paysalargeamountofitbackintothecor­
respondingreserve,inordertoavoidapartof
oneorotheroftheCommunityquotasre­
mainingunusedinoneMemberStatewhenit
couldbeusedinothers;
WhereassincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrand
DuchyofLuxembourg areunitedinand
representedbytheBeneluxEconomicUnionin
theapportionment ofthetariffquotainques­
tion,alltransactionsconcerningtheadministra­
.tionofsharesgrantedtotheabovementioned
EconomicUnionmaybecarriedoutbyanyone
ofitsmembers,
2.Forthepurposesofapplicationofthis
Regulation:
(a)processing'means:HASADOPTEDTHISREGULATION :
Article1—forthepurposesofparagraph1(a)and
(c):bleaching,dyeing,printing,flock­
ing,impregnating ,dressingandother
operationswhichaltertheappearance1.Asfrom1September1972anduntil
31August1973,andwithintheframeworkof

OfficialJournaloftheEuropeanCommunities 5
(c)forItaly:
20000unitsofaccount,halfofwhich
shallbeforthetwistingorthrowing,
multiplying,cablingandtexturisation
(whetherornotcombinedwithother
formsofprocessing)oryarnunder
Chapters50to57oftheCommonCustoms
Tariff,andhalffortheprocessingof
fabricsunderchapters50to57orof
articlesunderheadings58.04,58.05,58.08,
58.09and60.01oftheCommonCustoms
Tariff:orqualityofaproduct,without,
however,changingitsnaturalstate
—forthepurposesofparagraph1(b):
twistingorthrowing,multiplying,
cablingandtexturisation ,even
combinedwithspooling,dyeingand
otherprocesseswhichchangethe
appearance,thequalityorthepackaging
orthegoods,without,however,
changingtheirnature;.
(b)'valueadded'means:thedifferencebetween
thecustomsvalueasdefinedinRegulation
(EEC)No803/68,1andthecustomsvalue
whichwouldbeestablishedonreimporta­
tioniftheproductswereimportedinthe
stateinwhichtheywereexported.(d)forBenelux:
Article230000unitsofaccountfortheprocessing
ofyarnandfabricsunderChapters50to57
orofarticlesunderheadings58.04,58.05,
58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff.
2.ThesecondinstalmentoftheCommunity
tariffquota,amountingto170000unitsof
account,shallmakeuptheCommunityreserve,
whichshallbedividedinto150000,13000and
7000unitsofaccountfortheformsofprocessing
referredtoinArticle1(1)under(a),(b)and(c)
respectively .1.Afirstinstalment,amountingto1700000
unitsofaccountofthisCommunitytariff
quota,shallbesharedamongtheMember
States;theproportionswhich,subjecttothe
provisionsofArticle6,shallbevalidforeach
oftheMemberStatesfrom1September1972
to31August1973shallconsistofthefollowing
amounts :
Article3(a)forGermany:
Ifthereisademandfortheformsofprocessing
referredtoinArticle"1(1)(b),thatMember
Stateshalldrawtheappropriatesharefromthe
reserve,totheextentthattheamountofthe
latterallows.
ThatMemberStateshalltake•thenecessary
measurestoinformthepersonsconcernedof
thispossibility .1070000unitsofaccount,dividedas
follows:
—900000unitsofaccountforprocessing
fabricsunderChapters50to57ofthe
CommonCustomsTariff,
—120000unitsofaccountforthetwisting
orthrowing,multiplying,cablingand
texturisation (whetherornotcombined
withotherformsofprocessing)ofyarn
underChapters50to57oftheCommon
CustomsTariff, Article4
—50000unitsofaccountforprocessing
articlesunderheadings58.04,58.05,
58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
(b)forFrance:1.If90%ormoreofoneoftheinitial
sharesofaMemberState,aslaiddownin
Article2(1),or90%ofthatsharelessthe
amountreturnedintothecorresponding reserve,
wheretheprovisionsofArticle6havebeen
applied,hasbeenexhausted,thatMember
Stateconcernedshallproceedwithoutdelay,
bynotifyingtheCommissiontodrawasecond
shareequalto10%ofitsinitialshare,tothe
extentthattheamountinthecorresponding
reserveallows.
2.If,afteroneorotheroftheseinitial
shareshasbeenexhausted,90%ormoreof
thesecondsharedrawnbyaMemberStatehas—430000unitsofaccountforprocessing
fabricsunderChapters50to57ofthe
CommonCustomsTariff,
—150000unitsofaccountforprocessing
articlesunderheadings58.04,58.05,
58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff:
1OJNoL148,28.7.1968,p.1.

6 OfficialJournaloftheEuropeanCommunities
thenotifications .TheCommissionshall,not
laterthan15June1973,notifyMemberStates
ofthestateofeachofthereservesafterthe
returnofquotasharespursuanttoArticle6.
TheCommissionshallensurethatanydrawing
whichusesuponeofthereservesislimitedto
thebalanceavailableand,forthispurpose,
shallspecifytheamountthereoftotheMember
Statewhichmakesthefinaldrawing.beenused,thatMemberStateshallproceed
withoutdelay,bynotifyingtheCommission ,
todrawathirdshareequalto5%ofitsinitial
share,totheextentthattheamountinthe
corresponding reserveallows.
3.If,afteroneorotherofthesecondshares
hasbeenexhausted,90%ormoreofthethird
sharedrawnbyaMemberStatehasbeenused,
thatMemberStateshallproceed,pursuantto
theprovisionsofparagraph2,todrawafourth
shareequaltothethird.Thatprocessshallbe
appliedbyanalogyuntileachreserveisex­
hausted.
4.Notwithstanding theprovisionsofpara­
graphs1,2arid3,eachMemberStatemay
proceedtodrawsharessmallerthanthose
fixedinthoseparagraphsifthereisreasonto
believethatthosesharesmightnotbeusedup.
ItshallinformtheCommission ofthereasons
whichledittoapplythisparagraph.Article8
1.TheMemberStatesshalladministertheir
sharesinaccordancewiththesystemofadvance
allocation .
2.TheMemberStatesshalltakeallmeasures
'Article5
Eachoftheadditionalsharesdrawnpursuant
toArticle4shallbevaliduntil31August1973.necessarytoensurethatwhenadditionalquota
aredrawnpursuanttoArticle4,itispossible
forchargestobemadewithoutinterruption
againsttheiraccumulatedsharesof,theCommu­
nitytariffquota. '
3.Theyshallguaranteefreeaccesstothe
quotasharesallocatedtoallthoseconcerned
inthisprocessingtradewhoareestablishedon
theirterritory.
4.Theextenttowhichthequotasharesof
theMemberStatehavebeenusedupshallbe
recordedonthebasisofthevaluesadded
adoptedonreimportsoftheproductsconcerned
undercoverofdeclarationsthattheyhave
beenenteredintoconsumption ..Article6
Article9If,by15May1973aMemberStatehasnot
usedupitsinitialquotashareasfixedby
Article2(1)orasresultingfromtheapplication
ofArticle3,itshall,notlaterthan10June1973,
returntothereservetheunusedportionofits
shareinexcessof40%oftheinitialamount.
Itmayreturnalargerquantityifthereare
reasonstoconsiderthatsuchquantitymight
notbeused.
TheMemberStatesshall,notlaterthan10June
1973,notifytheCommissionofthetotalre­
importsoftheproductsconcernedeffected
upto15May1973inclusive,andcharged
againsttheCommunityquotaand,where
appropriate,theproportionofitsinitialquota
sharethatisbeingreturnedtothereserve.MemberStatesshallinformtheCommissionat
regularintervalsofreimportsofproducts
actuallychargedagainsttheirquotashares.
Article10
TheMemberStatesandtheCommissionshall
cooperatecloselytoseethattheprovisionsof
theprecedingArticlesareobserved.
Article7
Article11 TheCommissionshallkeepaccountofthe
quotashareopenedbyMemberStatesin
accordancewithArticles2,3and4andshall
informeachofthemoftheextenttowhichthe
reserveshavebeenusedassoonasitreceivesThisRegulationshallenterintoforceonthe
dayofitspublicationintheOfficialJournal
oftheEuropeanCommunities .

OfficialJournaloftheEuropeanCommunities 7
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinall
MemberStates.
DoneatLuxembourg ,31October1972.
FortheCouncil
ThePresident
P.LARDINOIS