10.7.74 OfficialJournaloftheEuropeanCommunities NoL186/1
I
(Actswhosepublicationisobligatory)
REGULATION (EEC)No1769/74OFTHECOUNCIL
of25June1974
ontheopening,allocationandadministration ofaCommunitytariffquotafor
processingworkinrespectofcertaintextileproductsunderCommunity
outwardprocessingarrangements
headingNos58.04and60.01bydrawingatotalof
300000unitsofaccountfromtheshareofthequota
allocatedtotheBeneluxcountriesforallprocessing
operationsandalsofromthesharesallocatedto
certainotherMemberStatesinrespectofthe
processingoftextilefabricsandyarnsfallingwithin
Chapters50and57oftheCommonCustomsTariff;
whereastheCommunitytariffquotainquestion
shouldbeopenedfortheperiod1September1974to
31August1975inaccordancewiththeprovisionslaid
downintheabovearrangement ,asamended;THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle113
thereof;
HavingregardtotheproposalfromtheCommission ;
Whereason1August1969theCommunity
concludedanarrangement withSwitzerlandon
processingtrafficintextiles;whereasunderthat
arrangementtheCommunityundertooktoopenon1
Septemberofeveryyearanannualduty-freeCommu­
nitytariffquotaforprocessedgoodsof1870000
unitsofaccountofaddedvalue,apportioned as
follows:
(a)1650000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
(b)143000unitsofaccountforthetwistingor
throwing,cablingandtexturizing (whetherornot
combinedwithotherprocessingwork)ofyarns
fallingwithinChapters50to57oftheCommon
CustomsTariff;
(c)77000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
Whereasinorderthattheapportionment ofthequota
amongthethreecategoriesreferredtoabovemay
correspondmorecloselywithactualtradeflows
duringthereferenceyearithasbeendecidedbyjoint
agreementtoraiseto377000unitsofaccountthe
amountof77000unitsofaccountsetasideforthe
processingofproductsfallingwithincertaintariff
headingsintheCommonCustomsTariffbetweenWhereasprovisionshouldbemadeinparticularto
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
bemadetomeetrequirementswhichmayarisein
thoseMemberStatesinthefuturepermittingthemto
drawonthereserveinaccordancewiththesystem
laiddowninArticle3;
Whereastotakeaccountoffuturetrendsinthetraffic
inquestioninthevariousMemberStates,thetotal
quotavolumeof1870000unitsofaccountshouldbe
dividedintotwotranches,thefirstbeingallocated

NoL186/2 OfficialJournaloftheEuropeanCommunities 10.7.74
(b)123000unitsofaccountfortwistingorthrowing,
cablingandtexturizing (whetherornotcombined
withotherprocessingwork)ofyarnsfallingwithin
Chapters50to57oftheCommonCustoms
Tariff;
(c)377000unitsofaccountforprocessingworkon
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;
58.09Tulleandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),figured;handormechanically
madelace,inthepiece,instripsorin
motifs;
60.01Knittedorcrochetedfabric,notelasticnor
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 .amongcertainMemberStatesandthesecondheldas
areservetocoverthesubsequentrequirements of
MemberStateswhichhaveexhaustedtheirinitial
shareandalso,requirements whichmayarisein
certainMemberStatesinrespectofprocessingwork
forwhichnoinitialshareofthequotawasallocated;
whereasinordertogivethepartiesconcernedineach
MemberStatesomedegreeofcertaintyitwouldseem
appropriatetofixthefirsttrancheoftheCommunity
quotaatarelativelyhighlevel,namelysome90%of
thefullamountofthequota;whereasthereserve,
approximately 10%,shouldbeappropriatedtoeach
categoryofworkinaccordancewithtermsofthe
arrangementinquestion;
WhereastheMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruption
ofsuppliesonthisaccountitshouldbeprovidedthat
anyMemberStatewhichhasalmostuseduponeofits
initialsharesshoulddrawanadditionalsharefromthe
relevantreserve;whereaseachtimeitsadditional
shareisalmostexhaustedaMemberStateshoulddraw
afurthershare,andsoon,asmanytimesasthe
reserveallows;whereastheinitialandadditional
sharesshouldbevaliduntiltheendofthequota
period;whereasthisformofadministration requires
closecollaboration betweentheMemberStatesand
theCommission ,andtheCommission mustbeina
positiontokeepaccountoftheextenttowhichthe
quotahasbeenusedupandtoinformtheMember
Statesaccordingly ;
Whereasifatagivendateduringthequotaperioda
considerablequantityofaMemberState'sinitialshare
remainsunuseditisessential,topreventapartofthe
quotafromremainingunusedinoneMemberState
whileitcouldbeusedinothers,thatsuchState
shouldreturnasignificantproportionthereoftothe
reserve;
Whereas,sincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourgareunitedinandjointlyrepresentedby
theBeneluxEconomicUnion,anytransactionin
connectionwiththeadministration ofthesharesallo­
catedtothatEconomicUnionmaybecarriedoutby
anyoneofitsMembers,
HASADOPTED THISREGULATION :
Article1
1.Asfrom1September1974anduntil31August
1975,aCommunitytariffquotaof1870000unitsof
accountofvalueaddedshallbeopenedintheEuro­
peanEconomicCommunity inrespectofgoods
resultingfromprocessingworkasprovidedforinthe
arrangementwithSwitzerlandonprocessingtrafficin
textiles.Suchquotashallbeapportioned asfollows:
(a)1370000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff; (>)OJNoL148,28.6.1968,p.1.

10.7.74 OfficialJournaloftheEuropeanCommunities NoL186/3
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff:3.Eachportionaslaiddowninparagraph 1shall
bedividedintotwotranches,thefirst,ofapproxi­
mately90%,beingallocatedamongcertainMember
StatesinaccordancewithArticle3andthesecond,of
approximately 10%,toconstitutethereserve.
4.Withinthistariffquota,theCommonCustoms
Tariffdutiesshallbetotallysuspended .
Withinthistariffquota,thenewMemberStatesshall
applydutiescalculatedinaccordancewiththerele­
vantprovisionsoftheActofAccession .(d)Benelux:
20000unitsofaccountforprocessingworkon
threadsandwovenfabricsfallingwithinChapters
50to57orforproductsfallingwithinheading
Nos58.04,58.05,58.07,58.08,58.09and60.01of
theCommonCustomsTariff.
2.Thesecondtrancheofeachoftheportionsof
thequotaasfixedinArticle 1(1)—150000,13000
and57000unitsofaccountrespectively—shall
constitutethereserves .
Article3
Incaseofneed,eitherinFranceinrespectofthe
processingworkreferredtoinArticle1(1)(b),orin
anyofthenewMemberStatesinrespectofanyofthe
categoriesofprocessingwork,theStateconcerned
shall,totheextentthatthereservesopermits,draw
fromsuchreserveasufficientshareoftherelevant
quota.Article2
1.Thefirsttrancheofeachportionofthequotaas
laiddowninArticle1(1)shallbeallocatedassetout
belowamongtheMemberStateslistedintheabove
arrangement ;theshares,subjecttoArticle6,shallbe
validfrom1September1974to31August1975:
(a)Germany :
1010000unitsofaccount,apportioned as
follows:
—780000unitsofaccountforprocessingwork
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:
600000unitsofaccount,apportionedasfollows:
—430000unitsofaccountforprocessingwork
onfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
—170000unitsofaccountforprocessingwork
onproductsfallingwithinheadingNos58.04,
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,Article4
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.
Thisprocessshallcontinuetoapplyuntileachreserve
isexhausted .
4.Notwithstanding paragraphs 1to3,aMember
Statemaydrawshareslowerthanthosespecifiedin
thoseparagraphsiftherearegroundsforbelieving
thatthosespecifiedmaynotbeusedinfull.Any
MemberStateapplyingthisparagraphshallinform
theCommissionofitsgroundsforsodoing.

NoL186/4 OfficialJournaloftheEuropeanCommunities 10.7.74
Article5
AdditionalsharesdrawnpursuanttoArticle4shallbe
validuntil31August1975.
Article6
AMemberStatewhichon15May1975hasnot
exhaustedoneorotherofitsinitialshares,asfixedin
Article2(1)orarisingfromtheapplicationofArticle
3,shall,notlaterthan10June1975,returntotherele­
vantreservetheunusedportioninexcessof20%of
theinitialamount.Itmayreturnagreaterportionif
therearegroundsforbelievingthatitmaynotbeused
infull.
MemberStatesshallnotlaterthan10June1975
notifytheCommission ofthetotalquantitiesofthe
productinquestionre-importeduptoandincluding
15May1975andchargedagainsttheCommunity
quotaandofanyportionoftheirinitialquotas
returnedtotherelevantreserve.
Article7
TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3
and4andshallassoonastheinformationreachesit,
informeachStateoftheextenttowhichthereserves
havebeenusedup.
Itshall,notlaterthan15June1975,informthe
MemberStatesoftheamountsstillinreserve
followinganyreturnofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingone
ofthereservesisdrawntheamountsodrawndoesnot
exceedthebalanceavailable,andtothisendshall
notifytheamountofthatbalancetotheMemberState
makingthelastdrawing.Article8
1.MemberStatesshalltakeallappropriate
measurestoensurethatadditionalsharesdrawn
pursuanttoArticle4areopenedinsuchawaythat
re-importation maybechargedwithoutinterruption
againsttheiraccumulatedsharesofthequota.
2.EveryMemberStateshalladministeritsshares
byasystemofpriorallocation.Itshallensurethatall
personsestablishedinitsterritoryinvolvedinthe
processingtraffichavefreeaccesstothesharesallo­
catedtoit.
3.TheextenttowhichaMemberStatehasusedup
itssharesshallbedetermined onthebasisofthevalue
added,asestablishedwhenuponre-importation the
productsconcernedareenteredwiththecustoms
authoritiesforhomeuse.
Article9
MemberStatesshallinformtheCommission at
regularintervalsofre-importations chargedagainst
theirshares.
Article10
MemberStatesandtheCommissionshallcooperate
closelytoensurethatthisRegulationiscomplied
with.
Article11
ThisRegulationshallenterintoforceon1September
1974.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneaLuxembourg ,25June1974.
FortheCouncil
ThePresident
H.D.GENSCHER