NoL142/6 OfficialJournaloftheEuropeanCommunities9.6.77
COUNCILREGULATION (EEC)No1179/77
of17May1977
ontheopening,allocationandadministrationofaCommunitytariffquotaforprocessingwork
inrespectofcertaintextileproductsunderCommunityoutwardprocessingarrangements
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,Whereasprovisionshouldbemadeinparticulartoensure
equalandcontinuousaccessforthoseconcernedwiththis
quotaandconsistentapplicationoftherateofdutypre­
scribedforthesaidquotauntilthequotaisexhausted,to
allgoodsre-importedintoanyoftheMemberStatesand
whichhavereceivedoneorotherofthetreatmentslisted
above;whereasinthelightoftheseprinciplesarrange­
mentsfortheutilizationofthequotabasedonanalloca­
tionamongtheMemberStateswouldseemtobecon­
sistentwiththeCommunitycharacterofthesaidquota;
whereas,itthereforeseemsappropriatetomaketheallo­
cationonthebasisoftheamountofthetrafficunderthe
previousbilateralagreements,butwithoutprecluding
participationbyMemberStatesnotpreviouslyinvolvedin
suchtraffic,amongwhichthenewMemberStatesare
included;whereas,tosafeguardtheCommunitycharacter
ofthequota,provisionshouldbemadetomeetrequire­
mentswhichmayariseinthoseMemberStatesinthe
futurepermittingthemtodrawadequateamountsfrom
theCommunityreserve;HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle113
thereof,
HavingregardtotheproposalfromtheCommission ,
Whereason1August1969theCommunityconcludedan
arrangementwithSwitzerlandonprocessingtrafficintex­
tiles;whereasunderthatarrangementtheCommunity
undertooktoopenon1Septemberofeveryyearanannual
duty-freeCommunitytariffquotaforprocessedgoodsof
1870000unitsofaccountofaddedvalue,apportioned
asfollows:
(a)1650000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57ofthe
CommonCustomsTariff;
(b)143000unitsofaccountforthetwistingorthrowing,
cablingandtexturizing (whetherornotcombined
withotherprocessingworks)ofyarnsfallingwithin
Chapters50to57oftheCommonCustomsTariff;
(c)77000unitsofaccountforprocessingworkonpro­
ductsfallingwithinheadingNos58.04,58.05,58.07,
58.08,58.09and60.01oftheCommonCustoms
Tariff;Whereastotakeaccountoffuturetrendsinthetrafficin
questioninthevariousMemberStates,thetotalquota
volumeof1870000unitsofaccountshouldbedivided
intotwotranches,thefirstbeingallocatedamongcertain
MemberStatesandthesecondheldasareservetocover
thesubsequentrequirementsofMemberStateswhenone
oftheirinitialshareshasbeenexhaustedandalso,
requirementswhichmayariseincertainMemberStatesin
respectofprocessingworkforwhichnoinitialshareofthe
quotawasallocated;whereasinordertogivetheparties
concernedineachMemberStatesomedegreeofcertainty
itwouldseemappropriatetofixthefirsttrancheofthe
Communityquotaatarelativelyhighlevel,namely
1640000unitsofaccount;whereasthetotalCommunity
reserveof230000unitsofaccountshallconsistof
amountsdrawnfromtheallocationsinrespectofeach
category,thatis160000,13000and57000unitsofac­
countrespectively;Whereas,inorderthatthedivisionofthewholequotainto
thethreecategoriesreferredtoaboveshallcorrespond
moreexactlywiththeactualmovementoftradeduring
thereferenceyearorduringpreviousquotaperiodsaswell
aswiththeforeseeablemovementoftradeduringfuture
quotaperiods,ithasbeendecidedtoadjustthesaidallo­
cationbetweenthethreecategoriesbygivingthem
1520000,123000and227000unitsofaccountrespec­
tively;whereastheCommunitytariffquotainquestion
shouldbeopenedfortheperiod1September1977to31
August1978accordingtotheprovisionslaiddowninthe
arrangementspecifiedabove,andinamendmentstoit;WhereastheMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruptionof
suppliesonthisaccountitshouldbeprovidedthatany
MemberStatewhichhasalmostuseduponeofitsinitial

9.6.77 NoL142/7 OfficialJournaloftheEuropeanCommunities
58.05Narrowwovenfabrics,andnarrowfabrics
(bolduc)consistingofwarpwithoutweftas­
sembledbymeansofanadhesive,otherthan
goodsfallingwithinheadingNo58.06;
58.07Chenilleyarn(includingflockchenilleyarn),
gimpedyarn(otherthanmetallizedyarnof
headingNo52.01andgimpedhorsehairyarn);
braidsandornamentaltrimmingsinthepiece;
tassels,pomponsandthelike;
58.08Tulleandothernetfabrics(butnotincluding
woven,knittedorcrochetedfabrics),plain;
58.09Tulleandothernetfabrics(butnotincluding
woven,knittedorcrochetedfabrics),figured;
handormechanicallymadelace,inthepiece,
instripsorinmotifs;
60.01Knittedorcrochetedfabric,notelasticorrub­
berized.sharesshoulddrawanadditionalsharefromthereserve;
whereaseachtimeitsadditionalshareisalmostexhausted
aMemberStateshoulddrawafurthershare,andsoon,as
manytimesasthereserveallows;whereastheinitialand
additionalsharesshouldbevaliduntiltheendofthequota
period;whereasthisformofadministration requiresclose
collaboration betweentheMemberStatesandtheCom­
mission,andtheCommissionmustbeinapositionto
keepaccountoftheextenttowhichthequotahasbeen
usedupandtoinformtheMemberStatesaccordingly;
Whereasifatagivendateduringthequotaperiodacon­
siderablequantityofaMemberState'sinitialsharere­
mainsunuseditisessential,topreventapartofthequota
fromremainingunusedinoneMemberStatewhileit
couldbeusedinothers,thatsuchStateshouldreturna
significantproportionthereoftothereserve;
Whereas,sincetheKingdomofBelgium,theKingdomof
theNetherlandsandtheGrandDuchyofLuxembourgare
unitedinandjointlyrepresentedbytheBeneluxEconomic
Union,anytransactioninconnectionwiththeadministra­
tionofthesharesallocatedtothateconomicunionmaybe
carriedoutbyanyoneofitsinembers,2.ForthepurposesofthisRegulation :
(a)'processingwork'means:
HASADOPTEDTHISREGULATION :
Article1—forthepurposesofparagraph 1(a)and(c):
bleaching,dyeing,printing,flocking,impregnat­
ing,dressingandotherworkwhichchangesthe
appearanceorqualityofthegoods,withouthow­
everchangingtheirnature,
—forthepurposesofparagraph 1(b):twistingor
throwing,cablingandtexturizing,whetherornot
combinedwithreeling,dyeingorotherwork
whichchangestheappearance,qualityorfinishof
thegoods,withouthoweverchangingtheir
nature;
(b)'valueadded'meansthedifferencebetweenthevalue
forcustomspurposesasdefinedinRegulation (EEC)
No803/68(*)atthetimeofre-importation andthe
valueforcustomspurposesasitwouldbeifthepro­
ductswerere-importedinthestateinwhichthey
wereexported.
3.Eachportionaslaiddowninparagraph1shallbedi­
videdintotwotranches,thefirstbeingallocatedamong
certainMemberStatesinaccordancewithArticle2(1)
andthesecondbeingusedtoconstituteareservewhich
shallbecommontothethreecategoriesofprocessing .
4.Withinthistariffquota,theCommonCustomsTariff
dutiesshallbetotallysuspended.
5.Re-importsofproductsresultingfromthisprocessing
workmaynotbechargedtothetariffquotaiftheyareal­
readyfreeofcustomsdutiesunderotherpreferentialtariff
arrangements .1.Asfrom1September1977anduntil31August1978,
aCommunitytariffquotaof1870000unitsofaccount
ofvalueaddedshallbeopenedintheEuropeanEconomic
Communityinrespectofgoodsresultingfromprocessing
workasprovidedforinthearrangementwithSwitzerland
onprocessingtrafficintextiles.Suchquotashallbeappor­
tionedasfollows:
(a)1520000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57ofthe
CommonCustomsTariff;
(b)123000unitsofaccountfortwistingorthrowing,
cablingandtexturizing (whetherornotcombined
withotherprocessingwork)ofyarnsfallingwithin
Chapters50to57oftheCommonCustomsTariff;
(c)227000unitsofaccountforprocessingworkon
articlesfallingwithinthefollowingheadingsofthe
CommonCustomsTariff:
58.04Wovenpilefabricsandchenillefabrics(other
thanterrytowellingorsimilarterryfabricsof
cottonfallingwithinheadingNo55.08and
fabricsfallingwithinheadingNo58.05);0)OJNoL148,28.6.1968,p.1.

NoL142/8 OfficialJournaloftheEuropeanCommunities 9.6.77
Article2 Article3
1.Thefirsttrancheofeachportionofthequotaaslaid
downinArticle1(1)shallbeallocatedassetoutbelow
amongtheMemberStateslistedintheabovearrange­
ment;theshares,subjecttoArticle6,shallbevalidfrom1
September1977to31August1978.Incaseofneed,eitherinFranceinrespectoftheproces­
singworkreferredtoinArticle1(1)(b),orinanyofthe
newMemberStatesinrespectofanyofthecategoriesof
processingwork,theStateconcernedshall,totheextent
thatthereservesopermits,drawfromsuchreserveasuffi­
cientshareofthequota.
(a)Germany:
Article41080000unitsofaccount,apportionedasfollows:
—850000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff,
—100000unitsofaccountfortwistingorthrowing,
cablingandtexturizing (whetherornotcombined
withotherprocessingwork)ofyarnsfalling
withinChapters50to57oftheCommonCus­
tomsTariff,
—130000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;1.IfaMemberStatehasused90%ormoreofoneofits
initialsharesasfixedinArticle2(1),orofthatshare
minusanyportionreturnedtothereservepursuanttoAr­
ticle6,itshallforthwith,bynotifyingtheCommission,
drawasecondshare,totheextentthattherelevantreserve
sopermits,equalto10%ofitsinitialshare,roundedupas
necessarytothenextwholenumber.
2.IfaMemberState,afterexhaustingoneofitsinitial
shares,hasused90%ormoreofthesecondsharedrawn
byit,thatMemberStatesshall,inaccordancewiththe
conditionslaiddowninparagraph1,drawathirdshare
equalto5%ofitsinitialshare.
(b)France:
520000unitsofaccount,apportionedasfollows:
—500000unitsofaccountforprocessingworkon
fabricsfallingwithinChapters50to57ofthe
CommonCustomsTariff,
—20000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff:3.IfaMemberState,afterexhaustingitssecondshare,
hasused90%ormoreofthethirdsharedrawnbyit,that
MemberStateshall,inaccordancewiththesamecondi­
tion,drawafourthshareequaltothethird.
Thisprocessshallcontinuetoapplyuntilthereserveisex­
hausted.
4.Notwithstanding paragraphs1to3,aMemberState
maydrawshareslowerthanthosespecifiedinthose
paragraphsiftherearegroundsforbelievingthatthose
specifiedmaynotbeusedinfull.AnyMemberStateap­
plyingthisparagraphshallinformtheCommissionofits
groundsforsodoing.(c)Italy:
20000unitsofaccount,i.e.halffortwistingor
throwing,cablingandtexturizing (whetherornot
combinedwithotherprocessingwork)ofyarnsfalling
withinChapters50to57oftheCommonCustoms
Tariff,andhalfforprocessingworkonproductsfal­
lingwithinheadingNos58.04,58.05,58.07,58.08,
58.09and60.01oftheCommonCustomsTariff;Article5
AdditionalsharesdrawnpursuanttoArticle4shallbe
validuntil31August1978.(d)Benelux:
20000unitsofaccountforprocessingworkon
threadsandwovenfabricsfallingwithinChapters50
to57orforproductsfallingwithinheadingNos
58.04,58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff.Article6
TheMemberStatesreferredtoinArticle2shall,notlater
than1July1978,returntothereservetheunusedportion
oftheirinitialsharewhich,on15June1978,isinexcessof
20%oftheinitialvolume.Theymayreturnagreaterpor­
tioniftherearegroundsforbelievingthatitmaynotbe
usedinfull.2.Thesecondtranchewhichamountsto230000units
ofaccountshallconstituteaCommunityreservewhich
maybeusedforthethreecategoriesofprocessing.

9.6.77 OfficialJournaloftheEuropeanCommunities NoL142/9
MemberStatesshall,notlaterthan1July1978,notifythe
Commissionofthetotalquantitiesoftheproductinques­
tionre-importeduptoandincluding15June1978and
chargedagainsttheCommunityquotaandofanyportion
oftheirinitialquotasreturnedtothereserve.chargedwithoutinterruptionagainsttheiraccumulated
sharesofthequota.
2.EveryMemberStateshalladministeritssharesbya
systemofpriorallocation.Itshallensurethatallpersons
establishedinitsterritoryinvolvedintheprocessingtraf­
fichavefreeaccesstothesharesallocatedtoit.
3.TheextenttowhichaMemberStatehasusedupits
sharesshallbedeterminedonthebasisofthevalueadded,
asestablishedwhenuponre-importation theproducts
concernedareenteredwiththecustomsauthoritiesfor
homeuse.Article7
Article9TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3and
4andshallassoonastheinformationreachesit,inform
eachStateoftheextenttowhichthereservehasbeenused
up.
Itshall,notlaterthan5July1978,informtheMember
Statesoftheamountsstillinreservefollowinganyreturn
ofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingthisre­
serveisdrawntheamountsodrawndoesnotexceedthe
balanceavailable,andtothisendshallnotifytheamount
ofthatbalancetotheMemberStatemakingthelastdraw­
ing.AttherequestoftheCommission,theMemberStates
shallinformitofre-importations chargedagainsttheir
shares.
Article10
MemberStatesandtheCommissionshallcooperate
closelytoensurethatthisRegulationiscompliedwith.
Article8
Article11
1.MemberStatesshalltakeallappropriatemeasuresto
ensurethatadditionalsharesdrawnpursuanttoArticle4
areopenedinsuchawaythatre-importation maybeThisRegulationshallenterintoforceon1September
1977.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMemberStates.
DoneatBrussels,17May1977.
FortheCouncil
ThePresident
J.SILKIN