20.2.74 OfficialJournaloftheEuropeanCommunities NoL48/59
REGULATION (EEC)No363/74OFTHECOUNCIL
of4February1974
opening,allocatingandprovidingfortheadministration ofaCommunitytariffquota
forcottonyarnfallingwithinheadingNo55.05oftheCommonCustomsTariff,
originatinginMalta
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,AgreementshouldbeconfinedtotheoriginalMember
Statesandtheadditionalvolumeof375metrictons
resultingfromtheincreaseshouldbeallocatedtoall
MemberStates;
Whereasitisinparticularnecessarytoensuretoall
Communityimportersequalanduninterrupted access
totheabovementioned quotaanduninterrupted appli­
cationoftheratelaiddownforthatquotatoall
importsoftheproductconcernedintoallMember
Statesuntilthequotahasbeenusedup;whereas,
havingregardtotheprinciplesmentionedabove,the
Communitynatureofthequotacanberespectedby
allocatingtheCommunitytariffquotaamongthe
MemberStates;whereas,inordertoreflectmore
accuratelytheactualdevelopmentofthemarketin
theproductconcerned,suchallocationshouldbein
proportiontotheneedsoftheMemberStates,assessed
byreferencetoboththestatisticsofeachState's
importsofthesaidgoodsfromMaltaoverarepresen­
tativeperiodandtheeconomicoutlookforthequota
periodconcerned;
Whereas,duringthepastthreeyearsforwhich
statisticsareavailable,thecorresponding importsby
eachoftheMemberStatesrepresentthefollowing
percentagesoftheimportsintotheCommunity,from
Maltaoftheproductsconcerned :HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunityandinparticularArticle113
thereof;
HavingregardtotheproposalfromtheCommission ;
WhereastheAgreementbetweentheEuropean
EconomicCommunityandMalta,signedatValetta
on5December1970,providesinArticle3(1)together
withArticle2ofAnnexIfortheopeningbytheCom­
munityofanannualCommunitytariffquotaof750
metrictonsofcottonyarnnotputupforretailsale
fallingwithinheadingNo55.05oftheCommon
CustomsTariff,originatinginMalta;whereas,
pursuanttoArticle1ofthesaidAnnexthequotaduty
isequalto30%oftheCommonCustomsTariffduty
inrespectoftheproductconcerned;whereas,witha
viewtograntingMaltaatreatmentnotlessfavourable
thanthatenjoyedbycountrieseligiblefortheGeneral­
izedSystemofPreferences,theabovementioned volume
shouldbeincreasedby50%andthedutiestotally
suspended;whereas,asregardstheallocationofthis
tariffquota,thequotavolumelaiddowninthe
1970 1971 1972
Germany 30-222-441-534-557-351-4
Benelux 41-5,31-042-034-828-725-7
France —3-02-11-75-44-8
Italy 28-321-114-412-0 8-67-8
Denmark — — 0-1
Ireland 3-0 5-3 3-2
UnitedKingdom 19-5 11-7 7-0

NoL48/60 OfficialJournaloftheEuropeanCommunities 20.2.74
EconomicUnionmaybecarriedoutbyanyofits
members,Whereasboththesepercentagesandtheestimates
fromcertainMemberStatesshouldbetakeninto
accountforthepurposesofallocatingthetwo
abovementioned quotaamounts;whereasinitial
quotasharesmayconsequentlybyfixedapproximately
asfollows: HASADOPTEDTHISREGULATION :
Article1Benelux 26-0
Denmark 0-1
France 5-0
Germany 45-0
Ireland 1-3
Italy 17-6
UnitedKingdom 5-01.Until31December1974,atariffquotaof1125
metrictonsshallbeopenedintheCommunityfor
cottonyarnnotputupforretailsale,fallingwithin
headingNo55.05oftheCommonCustomsTariff,
originatinginMalta.
2.WithinthelimitsofthistariffquotatheCommunity
CustomsTariffdutiesshallbetotallysuspended .
Thissuspensionshallbefullyappliedinthenew
MemberStates.
Article2
1.Afirsttranche,amountingto795metrictonsof
theCommunitytariffquotareferredtoinArticle1,
shallbesharedamongtheMemberStates;the
proportionswhich,subjecttoArticle5,shallbevalid
until31December1974shallconsistofthefollowing
amounts;
Germany
Benelux
France
Italy
Denmark
Ireland360metrictons
204metrictons
40metrictons
140metrictons
1metricton
10metrictonsWhereas,inordertotakeintoaccountimporttrends
fortheproductsconcernedinthedifferentMember
States,thequotaamountshouldbedividedintotwo
tranches,thefirsttranchebeingallocatedamongthe
MemberStates,andthesecondformingareserve
intendedultimatelytocovertherequirementsofthe
MemberStateswhichhaveuseduptheirinitial
quotashares;whereas,inordertoensureacertain
degreeofsecuritytoimportersineachMember
State,thefirsttrancheoftheCommunityquotashould
bedeterminedatalevelwhich,underpresentcircum­
stances,maybe70%ofthequotaamount;
WhereastheinitialquotasharesoftheMember
Statesmaybeusedup,atdifferenttimes;whereas,in
ordertotakethisfactintoaccountandavoidany
breakincontinuity,isitimportantthatanyMember
Statehavingusedupalmostthewholeofitsinitial
quotashareshoulddrawanadditionalquotashare
fromthereserve;whereas,thismustbedonebyeach
MemberStateasandwheneachofitsadditional
quotasharesisalmostentirelyusedup,andrepeated
asmanytimesasthereserveallows;whereasthe
initialandadditionalquotasharesmustbeavailable
foruseuntiltheendofthequotaperiod;whereasthis
methodofadministration callsforclosecooperation
betweenMemberStatesandtheCommission ,which
must,inparticular,beabletoobservetheextentto
whichthequotaamountisusedandinformMember
Statesthereof;
Whereasif,ataspecifieddateinthequotaperiod,a
considerable balanceremainsinoneorotherMember
StateitisessentialthatthatMemberStatepaysa
largeamountofitbackintothereserve,inorderto
avoidapartoftheCommunityquota'sremaining
unusedinoneMemberStatewhenitcouldbeused
inothers;
Whereas,sincetheKingdomofBelgium,theKingdom
oftheNetherlandsandtheGrandDuchyofLuxem­
bourgareunitedinandrepresentedbytheBenelux
EconomicUnion,alltransactionsconcerningthe
administration ofsharesgrantedtotheabovementionedUnitedKingdom40metrictons
2.Thesecondtrancheof330metrictonsshall
constitutethereserve.
Article3
1.If90%ormoreoftheinitialshareofaMember
State,aslaiddowninArticle2(1)or90%ofthatshare
lesstheamountreturnedintothereserve,wherethe
provisionsofArticle5havebeenapplied,hasbeen
exhausted,thatMemberStateshallproceedwithout
delay,bynotifyingtheCommission ,todrawasecond
shareequalto15%ofitsinitialshare,roundedupto
thenextunitwhereappropriate,totheextentthat
theamountinthereserveallows.
2.If,afteritsinitialsharehasbeenexhausted,90%
ormoreofthesecondsharedrawnbyaMember
Statehasbeenused,thatMemberStateshall,in
accordancewiththeconditionslaiddowninpara­

20.2.74 OfficialJournaloftheEuropeanCommunities NoL48/61
TheCommissionshall,notlaterthan15October
1974,notifyMemberStatesoftheamountinthe
reserveafterthereturnofsharespursuanttoArticle5.
TheCommissionshallensurethatanydrawingwhich
usesupthereserveislimitedtothebalanceavailable
and,forthispurpose,shallspecifytheamountthereof
totheMemberStatewhichmakesthefinaldrawing.graph1,proceedwithoutdelaytodrawathirdshare
equalto7-5%ofitsinitialshare,roundeduptothe
nextunitwhereappropriate ,totheextentthatthe
amountinthereserveallows.
3.If,afteritssecondsharehasbeenexhausted,90%
ormoreofthethirdsharedrawnbyaMemberState
hasbeenused,thatMemberStateshallproceed,inthe
sameway,fodrawafourthshareequaltothethird.
Thisprocessshallbeapplieduntilthereserveis
exhausted .
4.Notwithstanding theprovisionsofparagraphs 1,
2and3,theMemberStatesmayproceedtodraw
sharessmallerthanthosefixedinthoseparagraphs,
ifthereisreasontobelievethattheymightnotbe
usedup.TheyshallinformtheCommissionofthe
reasonswhichledthemtoapplythisparagraph .Article7
1.TheMemberStatesshalltakeallappropriate
measurestoensurethat,whenadditionalsharesare
drawnpursuanttoArticle3,itispossibleforcharges
tobemadewithoutinterruptionagainsttheiraccumu­
latedsharesoftheCommunityquota.
2.TheMemberStatesshallensurethatimportersof
theproductconcernedestablishedintheirterritory
havefreeaccesstothesharesallocatedtothem.
3.TheMemberStatesshallchargeimportsofthesaid
goodsagainsttheirshareasandwhenthegoodsare
enteredforhomeuse.
4.TheextenttowhichaMemberStatehasusedup
itsshareshallbedeterminedonthebasisoftheimports
chargedinaccordancewithparagraph3.Article4
Eachoftheadditionalsharesdrawnpursuantto
Article3shallbevaliduntil31December1974.
Article5
Article8
MemberStatesshallinformtheCommission at
regularintervalsofimportsactuallychargedagainst
theirshares.If,by15September1974,aMemberStatehasnot
usedupitsinitialshare,itshall,notlaterthan10
October1974,returntothereservetheunused
portionofthisshareinexcessof20%oftheinitial
amount.Itmayreturnalargerquantityifthereis
reasontobelievethatsuchquantitymightnotbeused.
TheMemberStatesshall,notlaterthan10October
1974,notifytheCommissionofthetotalimportsof
theproductconcernedeffectedupto15September
1974inclusive,andchargedagainsttheCommunity
quotaand,whereappropriate ,theproportionoftheir
initialsharethatisbeingreturnedtothereserve.Article9
TheMemberStatesandtheCommission shallco­
operatecloselyinordertoensurethatthisRegulation
isobserved.
Article10Article6
TheCommissionshallkeepaccountoftheshares
openedbyMemberStatesinaccordancewithArticles
2and3andshallinformeachofthemoftheextentto
whichthereservehasbeenusedassoonasitreceived
thenotifications .ThetariffquotalaiddowninthisRegulationshallbe
openedfor1974.
ThisRegulationshallenterintoforceonthethird
dayfollowingitspublicationintheOfficialJournal
oftheEuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,4February1974.
FortheCouncil
ThePresident
W.SCHEEL