8.7.76 OfficialJournaloftheEuropeanCommunities NoL182/3
COUNCILREGULATION (EEC)No1642/76
of29June1976
ontheopening,allocationandadministration ofaCommunitytariffquotafor
processingworkinrespectofcertaintextileproductsunderCommunity
outwardprocessingarrrangements
inthelightoftheseprinciplesarrangements forthe
utilizationofthequotabasedonanallocationamong
theMemberStateswouldseemtobeconsistentwith
theCommunitycharacterofthesaidquota;whereas,
itthereforeseemsappropriatetomaketheallocation
onthebasisoftheamountofthetrafficunderthe
previousbilateralagreements,butwithoutprecluding
participation byMemberStatesnotpreviously
involvedinsuchtraffic,amongwhichthenew
MemberStatesareincluded;whereas,tosafeguardthe
Communitycharacterofthequota,provisionshould
bemadetomeetrequirementswhichmayarisein
thoseMemberStatesinthefuturepermittingthemto
drawadequateamountsfromtheCommunityreserve;
Whereastotakeaccountoffuturetendsinthetraffic
inquestioninthevariousMemberStates,thetotal
quotavolumeof1870000unitsofaccountshouldbe
dividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesandthesecondheldas
areservetocoverthesubsequentrequirements of
MemberStateswhenoneoftheirinitialshareshas
beenexhaustedandalsorequirements whichmay
ariseincertainMemberStatesinrespectofprocessing
workforwhichnoinitialshareofthequotawasallo­
cated;whereasinordertogivethepartiesconcerned
ineachMemberStatesomedegreeofcertaintyit
wouldseemappropriatetofixthefirsttrancheofthe
Communityquotaatarelativelyhighlevel,namely
1640000unitsofaccount;whereasthetotalCommu­
nityreserveof230000unitsofaccountshallconsist
ofamountsdrawnfromtheallocationsinrespectof
eachcategory,thatis160000,13000and57000
unitsofaccountrespectively ;THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle113
thereof,
HavingregardtotheproposalfromtheCommission ,
Whereason1August1969theCommunity
concludedanarrangement withSwitzerlandon
processingtrafficintextiles;whereasunderthatarran­
gementtheCommunityundertooktoopenon1
Septemberofeveryyearanannualduty-freeCommu­
nitytariffquotaforprocessedgoodsof1870000
unitsofaccountofaddedvalue,apportioned as
follows:
(a)1650000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
theCommonCustomsTariff;
(b)143000unitsofaccountforthetwistingor
throwing,cablingandtexturizing (whetherornot
combinedwithotherprocessingworks)ofyarns
fallingwithinChapters50to57oftheCommon
CustomsTariff;
(c)77000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,58.05,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
Whereas,inorderthatthedivisionofthewholequota
intothethreecategoriesreferredtoaboveshallcorres­
pondmoreexactlywiththeactualmovementoftrade
duringthereferenceyearorduringpreviousquota
periodsaswellaswiththeforeseeablemovementof
tradeduringfuturequotaperiods,ithasbeendecided
toadjustthesaidallocationbetweenthethreecatego­
riesbygivingthem1520000,123000and227000
unitsofaccountrespectively ;whereastheCommu­
nitytariffquotainquestionshouldbeopenedforthe
period1September1976to31August1977
accordingtotheprovisionslaiddowninthearrange­
mentspecifiedabove,andinamendments toit;
Whereasprovisionshouldbemadeinparticularto
ensureequalandcontinuousaccessforthose
concernedwiththisquotaandconsistentapplication
oftherateofdutyprescribedforthesaidquotauntil
thequotaisexhausted,toallgoodsreimportedinto
anyoftheMemberStatesandwhichhavereceived
oneorotherofthetreatmentslistedabove;whereasWhereastheMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruption
ofsuppliesonthisaccountitshouldbeprovidedthat
anyMemberStatewhichhasalmostuseduponeofits
initialsharesshoulddrawanadditionalsharefromthe
reserve;whereaseachtimeitsadditionalshareis
almostexhaustedaMemberStateshoulddrawa
furthershare,andsoon,asmanytimesasthereserve
allows;whereastheinitialandadditionalshares
shouldbevaliduntiltheendofthequotaperiod;
whereasthisformofadministration requiresclose
collaboration betweentheMemberStatesandthe
Commission ,andtheCommissionmustbeinaposi­
tiontokeepaccountoftheextenttowhichthequota
hasbeenusedupandtoinformtheMemberStates
accordingly ;

NoL182/4 OfficialJournaloftheEuropeanCommunities 8.7.76
Whereasifatagivendateduringthequotaperioda
considerablequantityofaMemberState'sinitialshare
remainsunuseditisessential,topreventapartofthe
quotafromremainingunusedinoneMemberState
whileitcouldbeusedinothers,thatsuchState
shouldreturnasignificantproportionthereoftothe
reserve;
Whereas,sincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourgareunitedinandjointlyrepresentedby
theBeneluxEconomicUnion,anytransactionin
connectionwiththeadministration ofthesharesallo­
catedtothateconomicunionmaybecarriedoutby
anyoneofitsmembers,58.09Tulleandothernetfabrics(butnot
includingwoven,knittedorcrocheted
fabrics),figured;handormechanically
madelace,inthepiece,instripsorin
motifs,
60.01Knittedorcrochetedfabric,notelasticor
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'meansthedifferencebetweenthe
valueforcustomspurposesasdefinedinRegula­
tion(EEC)No803/68(')atthetimeofreimporta­
tionandthevalueforcustomspurposesasit
wouldbeiftheproductswerereimportedinthe
stateinwhichtheywereexported.
3.Eachportionaslaiddowninparagraph 1shall
bedividedintotwotranches,thefirstbeingallocated
amongcertainMemberStatesinaccordancewith
Article2andthesecond,beingusedtoconstitutea
reservewhichshallbecommontothethreecategories
ofprocessing .
4.Withinthistariffquota,theCommonCustoms
Tariffdutiesshallbetotallysuspended.
Withinthistariffquota,thenewMemberStatesshall
applydutiescalculatedinaccordancewiththerele­
vantprovisionsoftheActofAccession.
Article2
1.Thefirsttrancheofeachportionofthequotaas
laiddowninArticle1(1)shallbeallocatedassetout
belowamongtheMemberStateslistedintheabove
arrangementtheshares,subjecttoArticle6,shallbe
validfrom1September1976to31August1977.
(a)Germany:
1080000unitsofaccount,apportioned as
follows:
—850000unitsofaccountforprocessingwork
onwovenfabricsfallingwithinChapters50to
57oftheCommonCustomsTariff,HASADOPTEDTHISREGULATION :
Article1
1.Asfrom1September1976anduntil31August
1977,aCommunitytariffquotaof1870000unitsof
accountofvalueaddedshallbeopenedintheEuro­
peanEconomicCommunityinrespectofgoods
resultingfromprocessingworkasprovidedforinthe
agreementwithSwitzerlandonprocessingtrafficin
textiles.Suchquotashallbeapportionedasfollows:
(a)1520000unitsofaccountforprocessingworkon
wovenfabricsfallingwithinChapters50to57of
the^CommonCustomsTariff;
(b)123000unitsofaccountfortwistingorthrowing,
cablingandtexturizing(whetherornotcombined
withotherprocessingwork)ofyarnsfallingwithin
Chapters50to57oftheCommonCustoms
Tariff;
(c)227000unitsofaccountforprocessingworkon
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
including,woven,knittedorcrocheted
fabrics),plain(a), (')OJNoL148,28.6.1968,p.1.

8.7.76 OfficialJournaloftheEuropeanCommunities NoL182/5
—100000unitsofaccountfortwistingor
throwing,cablingandtexturizing (whetheror
notcombinedwithotherprocessingwork)of
yarnsfallingwithinChapters50to57ofthe
CommonCustomsTariff,
—130000unitsofaccountforprocessingwork
onproductsfallingwithinheadingNos58.04,
58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff;
(b)France:
520000unitsofaccount,apportionedasfollows:
—500000unitsofaccountforprocessingwork
onfabricsfallingwithinChapters50to57of
theCommonCustomsTariff,
—20000unitsofaccountforprocessingworkon
productsfallingwithinheadingNos58.04,
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,
58.07,58.08,58.09and60.01oftheCommon
CustomsTariff;
(d)Benelux:
20000unitsofaccountforprocessingworkon
threadsandwovenfabricsfallingwithinChapters
50to57orforproductsfallingwithinheading
Nos58.04,58.05,58.07,58.08,58.09and60.01of
theCommonCustomsTariff.
2.Thesecondtranchewhichamountsto230000
unitsofaccountshallconstituteaCommunityreserve
whichmaybeusedforthethreecategoriesof
processing .
Article3
Incaseofneed,eitherinFranceinrespectofthe
processingworkreferredtoinArticle1(1)(b),orin
anyofthenewMemberStatesinrespectofanyofthe
categoriesofprocessingwork,theStateconcerned
shall,totheextentthatthereservesopermits,draw
fromsuchreserveasufficientshareofthequota.
Article4
1.IfaMemberStatehasused90%ormoreofone
ofitsinitialsharesasfixedinArticle2(1),orofthat
shareminusanyportionreturnedtothereserve
pursuanttoArticle6,itshallforthwith,bynotifying
theCommission drawasecondshare,totheextent
thattherelevantreservesopermits,equalto10%ofitsinitialshare,roundedupasnecessarytothenext
wholenumber.
2.IfaMemberState,afterexhaustingoneofits
initialshares,hasused90%ormoreofthesecond
sharedrawnbyit,thatMemberStateshall,inaccor­
dancewiththeconditionslaiddowninparagraph 1,
drawathirdshareequalto5%ofitsinitialshare.
3.IfaMemberState,afterexhaustingitssecond
share,hasused90%ormoreofthethirdsharedrawn
byit,thatMemberStateshall,inaccordancewiththe
samecondition,drawafourthshareequaltothethird.
Thisprocessshallcontinuetoapplyuntilthereserve
isexhausted .
4.Notwithstanding paragraphs 1to3,aMember
Statemaydrawshareslowerthanthosespecifiedin
thoseparagraphsiftherearegroundsforbelieving
thatthosespecifiedmaynotbeusedinfull.Any
MemberStateapplyingthisparagraphshallinform
theCommissionofitsgroundsforsodoing.
Article5
AdditionalsharesdrawnpursuanttoArticle4shallbe
validuntil31August1977.
Article6
TheMemberStatesreferredtoinArticle2shall,not
laterthan1July1977,returntothereservethe
unusedportionoftheirinitialsharewhich,on15
June1977,isinexcessof20%oftheinitialvolume.
Theymayreturnagreaterportioniftherearegrounds
forbelievingthatitmaynotbeusedinfull.
MemberStatesshallnotlaterthan1July1977notify
theCommissionofthetotalquantitiesoftheproduct
inquestionreimporteduptoandincluding15June
1977andchargedagainsttheCommunityquotaand
ofanyportionoftheirinitialquotasreturnedtothe
reserve.
Article7
TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2,3
and4shallassoonastheinformationreachesit,
informeachStateoftheextenttowhichthereserve
hasbeenusedup.
Itshall,notlaterthan5July1977,informthe
MemberStatesoftheamountsstillinreserve
followinganyreturnofsharespursuanttoArticle6.
Itshallensurethatwhenanamountexhaustingthis
reserveisdrawntheamountsodrawndoesnotexceed
thebalanceavailable,andtothisendshallnotifythe
amountofthatbalancetotheMemberStatemaking
thelastdrawing.

NoL182/6 OfficialJournaloftheEuropeanCommunities 8.7.76
Article9
AttherequestoftheCommission ,theMemberStates
shallinformitofreimportations chargedagainsttheir
shares.
Article10
MemberStatesandtheCommissionshallcooperate
closelytoensurethatthisRegulationiscomplied
with.Article8
1.MemberStatesshalltakeallappropriate
measurestoensurethatadditionalsharesdrawn
pursuanttoArticle4areopenedinsuchawaythat
reimportation maybechargedwithoutinterruption
againsttheiraccumulatedsharesofthequota.
2.EveryMemberStateshalladministeritsshares
byasystemofpriorallocation.Itshallensurethatall
personsestablishedinitsterritoryinvolvedinthe
processingtraffichavefreeaccesstothesharesallo­
catedtoit.
3.TheextenttowhichaMemberStateshasused
upitssharesshallbedeterminedonthebasisofthe
valueadded,asestablishedwhenuponreimportation
theproductsconcernedareenteredwiththecustoms
authoritiesforhomeuse.Article11
ThisRegulationshallenterintoforceon1September
1976.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatLuxembourg ,29June1976.
FortheCouncil
ThePresident
G.THORN