24.7.76 OfficialJournaloftheEuropeanCommunities NoL199/41
II
(Actswhosepublicationisnotobligatory)
COUNCIL
COUNCIL DIRECTIVE
of20July1976
ontheapplicationofDirective69/73/EECwithregardtoinwardprocessing
authorizations forcertainproductsoriginatinginEFTAStatesandtheFaroe
Islands
(76/616/EEC)
THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,inIrelandmustresorttotheinwardprocessingarran­
gementsinordertoobtaintheseproductswithsuspen­
sionofduties;whereasrecoursetothesearrange­
mentsinvolvesexaminingwhethertheconditions
referredtoinArticle5(1)ofDirective69/73/EECare
fulfilled;whereasthisexaminationmustrelatetothe
Community ascurrentlyconstituted ;
Whereas,inaccordancewiththetimetablefortariff
dismantling ,productsoriginatinginEFTAStates
benefit,asageneralrule,fromareductionto20%of
thebasicrateofcustomsdutyuponimportationinto
theCommunity asfrom1January1976;whereas
thesecustomsdutiesaretobeabolishedby1July
1977formostoftheseproducts;whereasthistariff
dismantlingresultsfromtheAgreementsconcluded
betweentheEuropeanEconomicCommunityandthe
EFTAStates;whereastheseAgreements were
concludedwiththesaidStatesbythefollowingRegu­
lations :HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,
HavingregardtoCouncilDirective69/73/EECof4
March1969ontheharmonization ofprovisionslaid
downbylaw,regulationoradministrative actionin
respectofinwardprocessing('),aslastamendedby
Directive76/119/EEC(2),andinparticularArticle29
thereof,
HavingregardtotheproposalfromtheCommission ,
Whereas,underthetermsofArticle5(1)ofDirective
69/73/EEC,thegrantingofthebenefitofinward
processingarrangements presupposes thatsuch
processingwillcontributetowardsprovidingthemost
favourableconditionsfortheexportofgoodsresulting
fromsuchprocessingwithoutconflictingwithessen­
tialinterestsofproducerswithintheCommunity ;
Whereasundertakings inDenmarkandtheUnited
KingdomcanobtainproductsoriginatinginEFTA
Statesfreeofdutywithouthavingtoresorttothe
inwardprocessingarrangements ;
Whereas,ontheotherhand,undertakingsestablished
withintheCommunity asoriginallyconstitutedand—Austria:Regulation (EEC)No2836/72(3),
—Sweden:Regulation (EEC)No2838/72(4),
—Switzerland ;Regulation (EEC)No2840/72(5),
—Iceland:Regulation (EEC)No2842/72(6),
—Portugal:Regulation (EEC)No2844/72(7),
—Norway:Regulation (EEC)No1691/73(8),
—Finland :RegulationEECNo3177/73(9);
(3)OJNoL300,31.12.1972,p.1.
(4)OJNoL300,31.12.1972,p.96.
(5)OJNoL300,31.12.1972,p.188.
(b)OJNoL301,31.12.1972,p.1.
(7)OJNoL301,31.12.1972,p.164.
(s)O'JNoL171,27.6.1973,p.1. (')OJNoL58,8.3.1969,p.1.
(2)OJNoL24,30.1.1976,p.58. oOJNoL328,28.11.1973,p.1.

NoL199/42 OfficialJournaloftheEuropeanCommunities 24.7.76
Communityinordertobeprocessedthereunder
inwardprocessingarrangements ,theseoperations
shallbedeemed,forthepurposesofArticle5(1)of
Directive69/73/EEC,tocontributetowardsthemost
favourableconditionsforexportswithoutconflicting
withessentialinterestsofCommunityproducers,
providedthattherateofimportdutywasreducedas
from1January1976to20%ofthebasicrateof
customsdutyapplicableintheMemberStatein
whichtheprocessingtakesplace.
Theoriginofthegoodsshallbedeterminedby
Protocol3annexedtoeachAgreementconcluded
betweentheEuropeanEconomicCommunityandthe
Statesreferredtointhisparagraph,orbyCommission
Regulation (EEC)No3184/74of6December1974
concerningthedefinitionoftheconceptof'origi­
natingproducts'andmethodsofadministrative coop­
erationfortheapplicationofthecustomsprocedure
applicabletocertainproductsoriginatinginand
comingfromtheFaroeIslands(5).
2.Paragraph 1shallnotapplytogoodsonwhicha
variablecomponentisleviedonthebasisofArticle5
(1)(b)ofRegulation (EEC)No1059/69nortothe
productslistedintheAnnex.Whereasasaresultofthisreductioninbasicduties
recoursetotheinwardprocessingarrangements
cannotconflictwiththeessentialinterestsof
producerswithintheCommunity ;whereasitappears
advisabletogranttoundertakingsintheCommunity
asoriginallyconstitutedandinIrelandtreatment
equivalenttothatavailabletoundertakings inthe
UnitedKingdomandDenmark;whereas,tothatend,
theconditionsofArticle5(1)ofDirective69/73/EEC
shouldbeconsideredasbeingfulfilled;
Whereasthegoodsconcernedarethosefallingwithin
Chapters25to99oftheCommonCustomsTariffin
sofarastherateofimportdutyisreducedasfrom1
January1976to20%ofthebasicrateofcustoms
dutydefinedintheabovementioned Agreements ;
WhereasthisDirectivemustapplytoproductsorigi­
natingintheFaroeIslandswhich,byvirtueof
CouncilRegulation (EEC)No2051/74of1August
1974onthecustomsprocedureapplicabletocertain
productsoriginatinginandcomingfromtheFaroe
Islands('),asamendedbyRegulation (EEC)No
1048/76(2),benefitfromarrangements similarto
thosefromwhichproductsoriginatingintheEFTA
StatesbenefituponimportationintotheCommunity ;
Whereasitisnecessarytoexcludefromthescopeof
thisDirectivethoseprocessedagriculturalproductson
whichavariablecomponentisleviedonthebasisof'
Article5(1)(b)ofCouncilRegulation (EEC)No
1059/69of28May1969layingdownthetradearran­
gementsapplicabletocertaingoodsresultingfromthe
processingofagriculturalproducts(3),aslastamended
byRegulation (EEC)No3058/75(4);whereasthese
productsmustbetreatedinthesamewayasthe
productsfallingwithinChapters17to24ofthe
CommonCustomsTarifftowhichthisDirectivedoes
notapply;
WhereastheproductslistedintheAnnexshouldalso
beexcludedfromtheproposedrules,Article2
1.MemberStatesshallbringintoforcethe
measuresnecessarytocomplywiththisDirectivenot
laterthan1September1976andshallforthwith
informtheCommission thereof.
2.TheCommission shallcommunicate thisinfor­
mationtotheotherMemberStates.
Article3
ThisDirectiveshallapplyuntil30June1977.
Article4
ThisDirectiveisaddressedtotheMemberStates.
HASADOPTED THISDIRECTIVE :
Article1DoneatBrussels,20July1976.
FortheCouncil
1.WhengoodsfallingwithinChapters25to99of
theCommonCustomsTarifforiginatinginAustria,
Sweden,Switzerland ,Iceland,Portugal,Norway,
FinlandortheFaroeIslandsareintroducedintotheThePresident
M.vanderSTOEL
(')OJNoL212,2.8.1974,p.33.
(2)OJNoL120,7.5.1976,p.1.
(3)OJNoL141,12.6.1969,p.1.
(4)OJNoL306,26.11.1975,p.3. (5)OJNoL344,23.12.1974,p.1.

24.7.76 OfficialJournaloftheEuropeanCommunities NoL199/43
ANNEX
LISTOFPRODUCTS TOWHICHTHEDIRECTIVE DOESNOTAPPLY
(Article1(2))
CCTheadingNo Description
CHAPTER 39ARTIFICIAL RESINSANDPLASTICMATERIALS ,CELLULOSE ESTERS
ANDETHERSANDARTICLESTHEREOF
50.09 Wovenfabricsofsilkorofwastesilkotherthannoil
51.04 Wovenfabricsofman-madefibres(continuous),includingwovenfabricsof
monofilorstripofheadingNo51.01or51.02
ex53.11 Wovenfabricsofsheep'sorlambs'wool
55.07 Cottongauze
73.10 Barsandrods(includingwirerod),ofironorsteel,hot-rolled,forged,extruded,
cold-formedorcold-finished (includingprecision-made );hollowminingdrill
steel
73.12 Hoopandstrip,ofironorsteel,hot-rolledorcold-rolled
73.15 AlloysteelandhighcarbonsteelintheformsmentionedinheadingNos
73.06to73.14
76.04 Aluminiumfoil(whetherornotembossed,cuttoshape,perforated,coated,
printed,orbackedwithpaperorotherreinforcingmaterial),ofathickness
(excludinganybacking)notexceeding0-20mm
76.06 Tubesandpipesandblankstherefor,ofaluminium ;hollowbarsofaluminium
76.07 Tubeandpipefittings(forexample,joints,elbows,socketsandflanges),of
aluminium
84.06 Internalcombustionpistonengines
84.62 Ball,rollerorneedlerollerbearings
85.18 Electricalcapacitors,fixedorvariable