16.8.78 OfficialJournaloftheEuropeanCommunities NoL225/11
COUNCILREGULATION (EEC)No1926/78
of25July1978
ontheopening,allocationandadministration ofaCommunitytariffquotaforprocessing
workinrespectofcertaintextileproductsunderCommunityoutwardprocessingarrange­
ments
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,1Januaryto31August1979;whereastheCommunity
tariffquotainquestionshouldbeopenedinitiallyfor
theperiod1Septemberto31December1978tocover
four-twelfthsoftheannualamounts;
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle113
thereof,
HavingregardtotheproposalfromtheCommission ,Whereasprovisionshouldbemadeinparticularto
ensureequalandcontinuousaccessforthoseconcerned
withthisquotaandconsistentapplicationoftherateof
dutyprescribedforthesaidquotauntilthequotais
exhausted,toallgoodsreimportedintoanyofthe
MemberStatesandwhichhavereceivedoneorotherof
thetreatmentslistedabove;whereas,inthelightof
theseprinciples,arrangementsfortheutilizationofthe
quotabasedonanallocationamongtheMemberStates
wouldseemtobeconsistentwiththeCommunity
characterofthesaidquota;whereasitthereforeseems
appropriatetomaketheallocationonthebasisofthe
amountofthetrafficunderthepreviousbilateral
agreements,butwithoutprecludingparticipation by
MemberStatesnotpreviouslyinvolvedinsuchtraffic,
amongwhichthenewMemberStatesareincluded;
whereas,tosafeguardtheCommunitycharacterofthe
quota,provisionshouldbemadetomeetrequirements
whichmayariseinthoseMemberStatesinthefuture
permittingthemtodrawadequateamountsfromthe
Communityreserve;Whereason1August1969theCommunityconcluded
anarrangementwithSwitzerlandonprocessingtraffic
intextiles;whereasunderthatarrangementtheCom­
munityundertooktoopenon1Septemberofeveryyear
anannualduty-freeCommunitytariffquotafor
processedgoodsof1870000unitsofaccountofadded
value,apportionedasfollows:
(a)1650000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff,
(b)143000unitsofaccountforthetwistingorthrow­
ing,cablingandtexturizing (whetherornotcom­
binedwithotherprocessingworks)ofyarnsfalling
withinChapters50to57oftheCommonCustoms
Tariff,
(c)77000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;Whereastotakeaccountoffuturetrendsinthetraffic
inquestioninthevariousMemberStates,thetotal
quotavolumeof623334unitsofaccountshouldbe
dividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesandthesecondheldasa
reservetocoverthesubsequentrequirements of
MemberStateswhenoneoftheirinitialshareshasbeen
exhaustedandalso,requirementswhichmayarisein
certainMemberStatesinrespectofprocessingworkfor
whichnoinitialshareofthequotawasallocated;
whereas,inordertogivethepartiesconcernedineach
MemberStatesomedegreeofcertainty,itwouldseem
appropriatetofixthefirsttrancheoftheCommunity
quotaatarelativelyhighlevel,namely546667unitsof
account;whereasthetotalCommunityreserveof
76667unitsofaccountshallconsistofamountsdrawn
fromtheallocationsinrespectofeachcategory,thatis
53334,4333and19000unitsofaccountrespectively ;Whereas,inorderthatthedivisionofthewholequota
intothethreecategoriesreferredtoaboveshallcorre­
spondmoreexactlywiththeactualmovementoftrade
duringthereferenceyearorduringpreviousquota
periodsaswellaswiththeforeseeablemovementof
tradeduringfuturequotaperiods,ithasbeendecidedto
adjustthesaidallocationbetweenthethreecategories
bygivingthem1520000,123000and227000units
ofaccountrespectively ;whereastheapplicationofthe
Europeanunitofaccountasfrom1January1979to
Actsadoptedl?ytheinstitutionsoftheEuropean
Communities neverthelessrequiresthatthequota
periodbedividedintotwoparts,onebeingfrom
1Septemberto31December1978,andtheotherfromWhereastheMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruptionof
suppliesonthisaccountitshouldbeprovidedthatany

NoL225/12 OfficialJournaloftheEuropeanCommunities16.8.78
58.05Narrowwovenfabrics,andnarrowfabrics
(bolduc)consistingofwarpwithoutweft
assembledbymeansofanadhesive,other
thangoodsfallingwithinheadingNo58.06,
58.07Chenilleyarn(includingflockchenilleyarn),
gimpedyarn(otherthanmetallizedyarnof
headingNo52.01andgimpedhorsehair
yarn);braidsandornamentaltrimmingsin
thepiece;tassels,pomponsandthelike,
58.08Tulleandothernetfabrics(butnotincluding
woven,knittedorcrochetedfabrics),plain,
58.09Tulleandothernetfabrics(butnotincluding
woven,knittedorcrochetedfabrics),figured;
handormechanicallymadelace,inthepiece,
instripsorinmotifs,
60.01Knittedorcrochetedfabric,notelasticor
rubberized .MemberStatewhichhasalmostuseduponeofitsin­
itialsharesshoulddrawanadditionalsharefromthe
reserve;whereaseachtimeitsadditionalshareisalmost
exhaustedaMemberStateshoulddrawafurthershare,
andsoon,asmanytimesasthereserveallows;whereas
theinitialandadditionalsharesshouldbevaliduntilthe
endofthequotaperiod;whereasthisformofadminis­
trationrequiresclosecollaboration betweenthe
MemberStatesandtheCommission ,andtheCom­
missionmustbeinapositiontokeepaccountofthe
extenttowhichthequotahasbeenusedupandtoin­
formtheMemberStatesaccordingly ;
Whereasifatagivendateduringthequotaperioda
considerablequantityofaMemberState'sinitialshare
remainsunuseditisessential,topreventapartofthe
quotafromremainingunusedinoneMemberState
whileitcouldbeusedinothers,thatsuchStateshould
returnasignificantproportionthereoftothereserve;
Whereas,sincetheKingdomofBelgium,theKingdom
oftheNetherlandsandtheGrandDuchyofLuxem­
bourgareunitedinandjointlyrepresentedbythe
BeneluxEconomicUnion,anytransactioninconnection
withtheadministration ofthesharesallocatedtothat
economicunionmaybecarriedoutbyanyoneofits
members,
HASADOPTEDTHISREGULATION :2.ForthepurposesofthisRegulation :
(a)'processingwork'means:
—forthepurposesofparagraph 1(a)and(c):
bleaching,dyeing,printing,flocking,impregnat­
ing,dressingandotherworkwhichchangesthe
appearanceorqualityofthegoods,without
howeverchangingtheirnature,
—forthepurposesofparagraph1(b):twistingor
throwing,cablingandtexturizing,whetheror
notcombinedwithreeling,dyeingorother
workwhichchangestheappearance,qualityor
finishofthegoods,withouthoweverchanging
theirnature;
(b)'valueadded'means:thedifferencebetweenthe
valueforcustomspurposesasdefinedinRegu­
lation(EEC)No803/68(1)atthetimeofre-im­
portationandthevalueforcustomspurposesasit
wouldbeiftheproductswerere-importedinthe
stateinwhichtheywereexported.
3.Eachportionaslaiddowninparagraph1shallbe
dividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesinaccordancewith
Article2(1)andthesecondbeingusedtoconstitutea
reservewhichshallbecommontothethreecategories
ofprocessing.
4.Withinthistariffquota,theCommonCustoms
Tariffdutiesshallbetotallysuspended.
5.Re-importsofproductsresultingfromthispro­
cessingworkmaynotbechargedtothetariffquotaif
theyarealreadyfreeofcustomsdutiesunderother
preferentialtariffarrangements .Article1
1.From1Septemberto31December1978,aCom­
munitytariffquotaof623334unitsofaccountofvalue
addedshallbeopenedintheEuropeanEconomic
Communityinrespectofgoodsresultingfromprocess­
ingworkasprovidedforinthearrangementwithSwit­
zerlandonprocessingtrafficintextiles.Suchquotashall
beapportionedasfollows:
(a)506667unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
(b)41000unitsofaccountfortwistingorthrowing,
cablingandtexturizing (whetherornotcombined
withotherprocessingwork)ofyarnsfallingwithin
Chapters50to57oftheCommonCustomsTariff;
(c)75667unitsofaccountforprocessingworkon
articlesfallingwithinthefollowingheadingsofthe
CommonCustomsTariff:
58.04Wovenpilefabricsandchenillefabrics(other
thanterrytowellingorsimilarterryfabrics
ofcottonfallingwithinheadingNo55.08
andfabricsfallingwithinheadingNo58.05),(^OJNoL148,28.6.1968,p.1.

16.8.78 OfficialJournaloftheEuropeanCommunities NoL225/13
Article3
Incaseofneed,eitherinFranceinrespectofthepro­
cessingworkreferredtoinArticle1(1)(b),orinanyof
thenewMemberStatesinrespectofanyofthe
categoriesofprocessingwork,theStateconcernedshall,
totheextentthatthereservesopermits,drawfrom
suchreserveasufficientshareofthequota.
Article4
1.IfaMemberStatehasused90%ormoreofoneof
itsinitialsharesasfixedinArticle2(1),orofthatshare
minusanyportionreturnedtothereservepursuantto
Article6,itshallforthwith,bynotifyingtheCom­
missiondrawasecondshare,totheextentthatthe
relevantreservesopermits,equalto10%ofitsinitial
share,roundedupasnecessarytothenextwhole
number.
2.IfaMemberState,afterexhaustingoneofitsinitial
shares,hasused90%ormoreofthesecondshare
drawnbyit,thatMemberStatesshall,inaccordance
withtheconditionslaiddowninparagraph1,drawa
thirdshareequalto5%ofitsinitialshare.Article2
1.Thefirsttrancheofeachportionofthequotaaslaid
downinArticle1(1)shallbeallocatedassetoutbelow
amongtheMemberStateslistedintheabovearrange­
ment;theshares,subjecttoArticle6,shallbevalid
from1Septemberto31December1978.
(a)Germany:
360000unitsofaccount,apportionedasfollows:
—283334unitsofaccountforprocessingwork
onwovenfabricsfallingwithinChapters50to
57oftheCommonCustomsTariff,
—33333unitsofaccountfortwistingorthrow­
ing,cablingandtexturizing (whetherornot
combinedwithotherprocessingwork)ofyarns
fallingwithinChapters50to57oftheCommon
CustomsTariff,
—43333unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
(b)France:
173334unitsofaccount,apportionedasfollows:
—166667unitsofaccountforprocessingwork
onfabricsfallingwithinChapters50to57of
theCommonCustomsTariff,
—6667uniteofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
(c)Italy:
6666unitsofaccount,i.e.halffortwistingor
throwing,cablingandtexturizing (whetherornot
combinedwithotherprocessingwork)ofyarnsfal­
lingwithinChapters50to57oftheCommon
CustomsTariff,andhalfforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
(d)Benelux:
6667unitsofaccountforprocessingworkon
threadsandwovenfabricsfallingwithinChapters
50to57orforproductsfallingwithinheadingNos
58.04,58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff.3.IfaMemberState,afterexhaustingitssecondshare,
hasused90%ormoreofthethirdsharedrawnbyit,
thatMemberStateshall,inaccordancewiththesame
condition,drawafourthshareequaltothethird.
Thisprocessshallcontinuetoapplyuntilthereserveis
exhausted .
4.Notwithstanding paragraphs 1to3,aMemberState
maydrawshareslowerthanthosespecifiedinthose
paragraphsiftherearegroundsforbelievingthatthose
specifiedmaynotbeusedinfull.AnyMemberState
applyingthisparagraphshallinformtheCommissionof
itsgroundsforsodoing.
Article5
AdditionalsharesdrawnpursuanttoArticle4shallbe
validuntil31December1978.
Article6
TheMemberStatesreferredtoinArticle2shall,not
laterthan1December1978,returntothereservethe
unusedportionoftheirinitialsharewhich,on
15November1978,isinexcessof20%oftheinitial
volume.Theymayreturnagreaterportionifthereare
groundsforbelievingthatitmaynotbeusedinfull.2.Thesecondtranchewhichamountsto76667units
ofaccountshallconstituteaCommunityreservewhich
maybeusedforthethreecategoriesofprocessing.

NoL225/14 OfficialJournaloftheEuropeanCommunities 16.8.78
Article4areopenedinsuchawaythatre-importation
maybechargedwithoutinterruptionagainsttheir
accumulatedsharesofthequota.
2.EveryMemberStateshallensurethatallpersons
establishedinitsterritoryinvolvedintheprocessing
traffichavefreeaccesstothesharesallocatedtoit.
3.TheextenttowhichaMemberStatehasusedupits
sharesshallbedeterminedonthebasisofthevalue
added,asestablishedwhenuponre-importation the
productsconcernedareenteredwiththecustoms
authoritiesforhomeuse.
Article9
AttherequestoftheCommission ,theMemberStates
shallinformitofre-importations chargedagainsttheir
shares.
Article10
MemberStatesandtheCommissionshallcooperate
closelytoensurethatthisRegulationiscompliedwith.
Article11
ThisRegulationshallenterintoforceon1September
1978.MemberStatesshall,notlaterthan1December1978,
notifytheCommissionofthetotalquantitiesofthe
productinquestionre-imported,uptoandincluding
15November1978,andchargedagainsttheCom­
munityquotaandofanyportionoftheirinitialquotas
returnedtothereserve.
Article7
TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3
and4andshall,assoonastheinformationreachesit,
informeachStateoftheextenttowhichthereservehas
beenusedup.
Itshall,notlaterthan5December1978,informthe
MemberStatesoftheamountsstillinreservefollowing
anyreturnofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingthis
reserveisdrawntheamountsodrawndoesnotexceed
thebalanceavailable,andtothisendshallnotifythe
amountofthatbalancetotheMemberStatemakingthe
lastdrawing.
Article8
1.MemberStatesshalltakeallappropriatemeasures
toensurethatadditionalsharesdrawnpursuantto
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMemberStates.
DoneatBrussels,25July1978.
FortheCouncil
ThePresident
K.vonDOHNANYI