17.7.75 NoL186/1 OfficialJournaloftheEuropeanCommunities
I
(Actswhosepublicationisobligatory)
REGULATION (EEC)No1826/75OFTHECOUNCIL
of10July1975
ontheopening,allocationandadministration ofaCommunitytariffquotafor
processingworkinrespectofcertaintextileproductsunderCommunity
outwardprocessingarrangements
THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle113
thereof;
HavingregardtotheproposalfromtheCommission ;tradeduringfuturequotaperiods,ithasbeendecided
toadjustthesaidallocationbetweenthethreecatego­
riesbygivingthem1520000,123000and227000
unitsofaccountrespectively ;whereastheCommu­
nitytariffquotainquestionshouldbeopenedforthe
period1September1975to31August1976
accordingtotheprovisionslaiddowninthearrange­
mentspecifiedabove,andinamendments toit;
Whereasprovisionshouldbemadeinparticularto
ensureequalandcontinuousaccessforthose
concernedwiththisquotaandconsistentapplication
oftherateofdutyprescribedforthesaidquotauntil
thequotaisexhausted,toallgoodsre-importedinto
anyoftheMemberStatesandwhichhavereceived
oneorotherofthetreatmentslistedabove;whereas
inthelightoftheseprinciplesarrangements forthe
utilizationofthequotabasedonanallocationamong
theMemberStateswouldseemtobeconsistentwith
theCommunitycharacterofthesaidquota;whereas,
itthereforeseemsappropriatetomaketheallocation
onthebasisoftheamountofthetrafficunderthe
previousbilateralagreements,butwithoutprecluding
participation byMemberStatesnotpreviously
involvedinsuchtraffic,amongwhichthenew
MemberStatesareincluded;whereas,tosafeguardthe
Communitycharacterofthequota,provisionshould
bemadetomeetrequirements whichmayarisein
thoseMemberStatesinthefuturepermittingthemto
drawadequateamountsfromtheCommunityreserve;
Whereastotakeaccountoffuturetrendsinthetraffic
inquestioninthevariousMemberStates,thetotal
quotavolumeof1870000unitsofaccountshouldbe
dividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesandthesecondheldas
areservetocoverthesubsequentrequirements of
MemberStateswhenoneoftheirinitialshareshave
beenexhaustedandalso,requirements whichmay
ariseincertainMemberStatesinrespectofprocessing
workforwhichnoinitialshareofthequotawasallo­
cated;whereasinordertogivethepartiesconcernedWhereason1August1969theCommunity
concludedanarrangement withSwitzerlandon
processingtrafficintextiles;whereasunderthatarran­
gementtheCommunityundertooktoopenon1
SeptemberofeveryyearanannualdutyfreeCommu­
nitytariffquotaforprocessedgoodsof1870000
unitsofaccountofaddedvalue,apportioned as
follows:
(a)1650000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
(b)143000unitsofaccountforthetwistingor
throwing,cablingandtexturizing (whetherornot
combinedwithotherprocessingworks)ofyarns
fallingwithinChapters50to57oftheCommon
CustomsTariff;
(c)77000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
Whereas,inorderthatthedivisionofthewholequota
intothethreecategoriesreferredtoaboveshallcorres­
pondmoreexactlywiththeactualmovementoftrade
duringthereferenceyearorduringpreviousquota
periodsaswellaswiththeforeseeablemovementof

NoL186/2 OfficialJournaloftheEuropeanCommunities 17.7.75
ineachMemberStatesomedegreeofcertaintyit
wouldseemappropriatetofixthefirsttrancheofthe
Communityquotaatarelativelyhighlevel,namely
1640000unitsofaccount;whereasthetotalCommu­
nityreserveof230000unitsofaccountshallconsist
ofamountsdrawnfromtheallocationsinrespectof
eachcategory,thatis160000,13000and57000
unitsofaccountrespectively ;
WhereastheMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruption
ofsuppliesonthisaccountitshouldbeprovidedthat
anyMemberStatewhichhasalmostuseduponeofits
initialsharesshoulddrawanadditionalsharefromthe
reserve;whereaseachtimeitsadditionalshareis
almostexhausted aMemberStateshoulddrawa
furthershare,andsoon,asmanytimesasthereserve
allows;whereastheinitialandadditionalshares
shouldbevaliduntiltheendofthequotaperiod;
whereasthisformofadministration requiresclose
collaboration betweentheMemberStatesandthe
Commission ,andtheCommissionmustbeinaposi­
tiontokeepaccountoftheextenttowhichthequota
hasbeenusedupandtoinformtheMemberStates
accordingly ;
Whereasifatagivendateduringthequotaperioda
considerablequantityofaMemberState'sinitialshare
remainsunuseditisessential,topreventapartofthe
quotafromremainingunusedinoneMemberState
whileitcouldbeusedinothers,thatsuchState
shouldreturnasignificantproportionthereoftothe
reserve;
Whereas,sincethe.KingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourgareunitedinandjointlyrepresentedby
theBeneluxEconomicUnion,anytransactionin
connectionwiththeadministration ofthesharesallo­
catedtothatEconomicUnionmaybecarriedoutby
anyoneofitsmembers,(c)227000unitsofaccountforprocessingworkon
articlesfallingwithinthefollowingheadingsof
theCommonCustomsTariff:
58.04Wovenpilefabricsandchenillefabrics
(otherthanterrytowellingorsimilarterry
fabricsofcottonfallingwithinheadingNo
55.08andfabricsfallingwithinheadingNo
58.05);
58.05Narrowwovenfabrics,andnarrowfabrics
(bolduc)consistingofwarpwithoutweft
assembledbymeansofanadhesive,other
thangoodsfallingwithinheadingNo
58.06;
58.07Chenilleyarn(includingflockchenille
yarn),gimpedyarn(otherthanmetallized
yarnofheadingNo52.01andgimped
horsehairyarn);braidsandornamentaltrim­
mingsinthepiece;tassels,pomponsand
thelike;
58.08Tulleandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),plain(a);
58.09Tulleandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),figured;handormechanically
madelace,inthepiece,instripsorin
motifs;
60.01Knittedorcrochetedfabric,notelasticor
rubberized .
2.ForthepurposesofthisRegulation :
(a)'processingwork'means:
—forthepurposesofparagraph 1(a)and(c):
bleaching,dyeing,printing,flocking,impreg­
nating,dressingandotherworkwhichchanges
theappearanceorqualityofthegoods,without
howeverchangingtheirnature;
—forthepurposesofparagraph 1(b):twistingor
throwing,cablingandtexturizing ,whetheror
notcombinedwithreeling,dyeingorother
workwhichchangestheappearance ,qualityor
finishofthegoods,withouthoweverchanging
theirnature;
(b)'valueadded'means:thedifferencebetweenthe
valueforcustomspurposesasdefinedinRegula­
tion(EEC)No803/68(')atthetimeofre-importa­
tionandthevalueforcustomspurposesasit
wouldbeiftheproductswerere-importedinthe
stateinwhichtheywereexported.
3.Eachportionaslaiddowninparagraph 1shall
bedividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesinaccordancewith
Article3andthesecond,beingusedtoconstitutea
reservewhichshallbecommontothethreecategories
ofprocessing .HASADOPTEDTHISREGULATION :
Article1
1.Asfrom1September1975anduntil31August
1976,aCommunitytariffquotaof1870000unitsof
accountofvalueaddedshallbeopenedintheEuro­
peanEconomicCommunityinrespectofgoods
resultingfromprocessingworkasprovidedforinthe
arrangementwithSwitzerlandonprocessingtrafficin
textiles.Suchquotashallbeapportionedasfollows:
(a)1520000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
(b)123000unitsofaccountfortwistingorthrowing,
cablingandtexturizing (whetherornotcombined
withotherprocessingwork)ofyarnsfallingwithin
Chapters50to57oftheCommonCustoms
Tariff; (')OJNoL14«,28.6.1968,p.I.

17.7.75 OfficialJournaloftheEuropeanCommunities NoL186/3
4.Withinthistariffquota,theCommonCustoms
Tariffdutiesshallbetotallysuspended.
Withinthistariffquota,thenewMemberStatesshall
applydutiescalculatedinaccordancewiththerele­
vantprovisionsoftheActofAccession .50to57orforproductsfallingwithinheading
Nos58.04,58.05,58.07,58.08,58.09and60.01of
theCommonCustomsTariff.
2.Thesecondtranchewhichamountsto230000
unitsofaccountshallconstituteaCommunityreserve
whichmaybeusedforthethreecategoriesof
processing .
Article3
Incaseofneed,eitherinFranceinrespectofthe
processingworkreferredtoinArticle1(1)(b),orin
anyofthenewMemberStatesinrespectofanyofthe
categoriesofprocessingwork,theStateconcerned
shall,totheextentthatthereservesopermits,draw
fromsuchreserveasufficientshareofthequota.Article2
1.Thefirsttrancheofeachportionofthequotaas
laiddowninArticle1(1)shallbeallocatedassetout
belowamongtheMemberStateslistedintheabove
arrangement ;theshares,subjecttoArticle6,shallbe
validfrom1September1975to31August1976.
(a)Germany :
1080000unitsofaccount,apportioned as
follows:
—850000unitsofaccountforprocessingwork
onwovenfabricsfallingwithinChapters50to
57oftheCommonCustomsTariff;
—100000unitsofaccountfortwistingor
throwing,cablingandtexturizing (whetheror
notcombinedwithotherprocessingwork)of
yarnsfallingwithinChapters50to57ofthe
CommonCustomsTariff;
—130000unitsofaccountforprocessingwork
onproductsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;*
(b)France:
520000unitsofaccount,apportionedasfollows:
—500000unitsofaccountforprocessingwork
onfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
—20000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
(c)Italy:
20000unitsofaccount,i.e.halffortwistingor
throwing,cablingandtexturizing (whetherornot
combinedwithotherprocessingwork)ofyarns
fallingwithinChapters50to57oftheCommon
CustomsTariff,andhalfforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
(d)Benelux:
20000unitsofaccountforprocessingworkon
threadsandwovenfabricsfallingwithinChaptersArticle4
1.IfaMemberStatehasused90%ormoreofone
ofitsinitialsharesasfixedinArticle2(1),orofthat
shareminusanyportionreturnedtothereserve
pursuanttoArticle6,itshallforthwith,bynotifying
theCommission drawasecondshare,totheextent
thattherelevantreservesopermits,equalto10%of
itsinitialshare,roundedupasnecessarytothenext
wholenumber.
2.IfaMemberState,afterexhaustingoneofits
initialshares,hasused90%ormoreofthesecond
sharedrawnbyit,thatMemberStatesshall,inaccor­
dancewiththeconditionslaiddowninparagraph 1,
drawathirdshareequalto5%ofitsinitialshare.
3.IfaMemberState,afterexhaustingitssecond
share,hasused90%ormoreofthethirdsharedrawn
byit,thatMemberStateshall,inaccordancewiththe
samecondition,drawafourthshareequaltothethird.
Thisprocessshallcontinuetoapplyuntilthereserve
isexhausted .
4.Notwithstanding paragraphs 1to3,aMember
Statemaydrawshareslowerthanthosespecifiedin
thoseparagraphsiftherearegroundsforbelieving
thatthosespecifiedmaynotbeusedinfull.Any
MemberStateapplyingthisparagraphshallinform
theCommissionofitsgroundsforsodoing.
Article5
AdditionalsharesdrawnpursuanttoArticle4shallbe
validuntil31August1976.

NoL186/4 OfficialJournaloftheEuropeanCommunities 17.7.75
pursuanttoArticle4areopenedinsuchawaythat
re-importation maybechargedwithoutinterruption
againsttheiraccumulatedsharesofthequota.
2.EveryMemberStateshalladministeritsshares
byasystemofpriorallocation.Itshallensurethatall
personsestablishedinitsterritoryinvolvedinthe
processingtraffichavefreeaccesstothesharesallo­
catedtoit.
3.Th£extenttowhichaMemberStatehasusedup
itssharesshallbedeterminedonthebasisofthevalue
added,asestablishedwhenuponre-importation the
productsconcernedareenteredwiththecustoms
authoritiesforhomeuse.Article6
TheMemberStatesreferredtoinArticle2shall,not
laterthan1June1976,returntothereservethe
unusedportionoftheirinitialsharewhich,on15May
1976,isinexcessof20%oftheinitialvolume.They
mayreturnagreaterportioniftherearegroundsfor
believingthatitmaynotbeusedinfull.
MemberStatesshallnotlaterthan1June1975notify
theCommissionofthetotalquantitiesoftheproduct
inquestionre-importeduptoandincluding15May
1976andchargedagainsttheCommunityquotaand
ofanyportionoftheirinitialquotasreturnedtothe­
reserve .
Article7
TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3
and4andshallassoonastheinformationreachesit,
informeachStateoftheextenttowhichthereserve
hasbeenusedup.
Itshall,notlaterthan5June1976,informthe
MemberStatesoftheamountsstillinreserve
followinganyreturnofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingthis
reserveisdrawntheamountsodrawndoesnotexceed
thebalanceavailable,andtothisendshallnotifythe
amountofthatbalancetotheMemberStatemaking
thelastdrawing.
Article8
1.MemberStatesshalltakeallappropriate
measurestoensurethatadditionalsharesdrawnArticle9
AttherequestoftheCommission ,theMemberStates
shallinformitofre-importations chargedagainst
theirshares.
Article10
MemberStatesandtheCommissionshallcooperate
closelytoensurethatthisRegulationiscomplied
with.
Article11
ThisRegulationshallenterintoforceon1September
1975.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,10July1975.
FortheCouncil
ThePresident
E.COLOMBO