ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)142
Vol.1974/0021

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)142final
Brussels,1February1974
DRAFT
REGULATION (SEC)OFTHECOUNCIL
ontheopening,allocationandadministration of
Communitytariffquotasforcertainrefinedpetroleumproducts
(submittedtotheCouncilbytheCommission)
C0I1(74)142final

Financialconsequences of"theopeningofzerorate
Communitytariffquotasforcertainpetroleumproducts
Accordingtodepartmental figures,thelossmrevenueresultingfrom
theattachedproposalisasfollows:
Motorspiritforengines(625000m.tons)1C8l875u.a.
Gasoilsandfueloils(3750000m.-tons)2910000u.a.
Total 3991875u.a.
Theaboveestimatewasworkedoutonthebasisofaveragepricesfor
productsin1972.Atpresent,thesepricesareapproximately four
timeshigher.
Consequently ,thelossinrevenuemaybeestimatedatapproximately
16millionu.a.

EXPLANATORY MEMORANDUM
TheFederal Republic ofGermany has made arequest totheCommission
forsuspension ofCommon Customs Tariff duties onmotor spirit for
engines ofsubheading ex27-10 AIIIb)andonmiddle fraction
distillates ofsubheadings 27.10 CIc)and27»10 CIIc). -
Ithas given thefollowing reasons forthis request :
-Because ofthe current shortage ofpetroleum products onworld
markets ,itisnot atpresent necessary forrefined petroleum
products tobeprotected intheCommunity .
-Thepetroleum crisis has setoff aserious inflationary tendency
intheprices ofpetroleum products .Itwould bedesirable totake
anymeasure which might hold down these price increases .
TheCommission considers itnecessary togive afavourable reponse
tothis request .However ,astheCommunity atpresent has nocommon
energy policy ,theCommission proposes that theCouncil should decide
upon theopening ofaCommunity tariff quota ,atnil rate ofduty ,
ofanamount equal tothe1972 Community importations from countries
forwhich theCCTduties arenotcurrently suspended byvirtue of
other measures .
ν
Thelonger term position should bedetermined inrelation toany
agreements with thepetroleum producing countries (SeeDocument
COM (74)90of23January 197^'^Relations between theCommunity and
theenergy producing countries t:).

DRAFT
REGULATION (EEC )DPTHECGDfKJIL
onthe opening ,allocation and administration of
Community tariff quotas forcertain refined petro­
leum products
THE COUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard to ■.the -Treaty establishing theEuropean Economic
Community ,andinparticular Article 28thereof ;
Having regard tothedraft regulation ^submitted bytheCommission ;
Whereas Community production ofmotor spirit andheavy oils isat
present insufficient ;whereas serious inflationary tendencies inthe
price ofpetroleum products as?e for the time being apparent ;
whereas inthese circumstances Community tariff protection for the -,
products inquestion does notappear tobenecessary atthepresent
time ;
Whereas itis,therefore ,intheinterest oftheCommunity to
suspend totally theautonomous duties intheCommon Customs
Tariff ontheproducts inquestion within thelimit ofatariff
quota ofanappropriate amount ;
Whereas ,having regard tetthe difficulty offorecasting developments
inthe short term economic situation inthepetroleum sector ,itis
desirable toadopt this measure only foralimited period ;whereas
further decisions may bereached asaresult ofpossible agreements
with petroleum producing countries ;
Whereas equal and direct access tothesaid quotas byall importers
intheCommunity and theuninterrupted application oftherates laid
down forthe said quotas toallimports oftheproducts inquestion
into all'Member States should beguaranteed until thequotas are
exhausted ;whereas utilization ofthese quotas ,based onallocation
between Member States ,would appear tosafeguard theCommunity character

ofthe said quotas asregards theprinciples described above }whereas
inorder toensure that such allocation takes asmuch account aspossible
oftheactual development ofthemarket oftheproducts concerned ,the
allocation ofquota shares should beindirect proportion totheneeds
ofMember States ,calculated ontheonehand ,onthebasis ofstatistics
relating toimports from third countries during agiven representative
period and ,ontheother ,onthebasis oftheeconomic prospects for the
quota period considered $
whereas ,ithasproved impossible togather sufficiently precise and
representative statistics ,asregards thepetroleum products inquestion ,
foreach o.ftheMember States jwhereas itdoes not consequently seem
possible totake anyother course than todivide thetariff quota
amount into eight parts and toallocate onepart each ,totheBenelux
States ,toDenmark ,Germany ,France ,Ireland ,Italy and tothe
United Kingdom ,thelast part (amounting to *f0%)being held inreserve
tomeet subsequently theneeds oftheMember States which have exhausted
their initial quota amounts }whereas ,onthis basis ,thetariff quotas
inquestion shall initially beallocated inthefollowing percentages :
Bénélux 10%
Denmark * 5%
Germany 10%
Prance "10%
Ireland 5%
Italy ' ■' ' 10%
United Kingdbo -. 10%:

Whereas theinitial quota shares may beused upatdifferent times ;
whereas ,inorder totake this fact into account andavoid anybreak
incontinuity ,itisimportant that anyMember State having used up
almost the whole ofone ofitsinitial quota shares should draw an
additional quota share from thecorresponding Community reserve ;
whereas ,this must bedone byeach Member State asandwhen each ofits
additional quota shares isalmost entirely used up,andrepeated asmany
times aseach ofthereserves allows ;whereas each oftheinitial and
additional quota shares must beavailable foruseuntil the end ofthe
quota period ;whereas this method ofadministration calls for close
cooperation between Member States and theCommission ,which must ,in
particular ,beable toobserve the extent towhich thequota amount is
used andinform Member States thereof ;
Whereas if,ataspecified date inthequota periodt aconsiderable
balance ofone oftheinitial quota shares remains inone orother Member
State ,itisessential that that Member State returns anappreciable percen­
tage ofitback into thecorresponding reserve ,inorder toavoid apart
ofone orother oftheCommunity tariff quotas remaining unused inone
Member State when itcould beused inothers ;
Whereas ,because theKingdom ofBelgium ,theKingdom oftheNetherlands
and theGrand Duchy ofLuxembourg areunified inandrepresented bythe
Benelux •economic Union ,anyoperation concerned with theadministration
ofquota shares allocated tothis economic Union #antherefore bemade
byone ofitsMembers ,
HAS ADOPTED THIS REGULATION :
Article 1
1.Asfrom 1March ,anduntil 31August 197^,Community tariff quotas
shall beopened intheCommunity forthefollowing petroleum products
andwithin thequantities indicated for each ofthem :

Common Customs
Tariff headingDescription ofgoodsQuota
amount
27.10 Petroleum oils and oils obtained
from bituminous minerals ,other than
crude ;preparations not elsewhere speci­
fied orincluded ,containing notless
than 70%byweight ofpetroleum oils
obtained from bituminous minerals ,
these oils being thebasic constituents
ofthepreparations :
A.Light oils
III .Forother purposes :
.b)Other :
C.Heavy oils :
I.Gas oils :
c)Forother purposes
II.Fuel oils :
c)Forother purposes625.000 metric
tonnes
3-750.000 metric
tonnes
2.TheCommon Customs Tariff duties shall betotally suspended within
thelimits ofthese Community tariff quotas .
3«ThenewMember States shall *within thelimits of -these tariff quotas ,
charge duties calculated inaccordance with theappropriate provisions
made inthe Act ofAccession . > ''■■■■
Article 2
1*Afirst instalment ofeach ofthese Community tariff quotas shall be
allocated among theMember States ;thequota shares which ,subject
toArticle 5i'arevalid from 1March until 31August 197^t sheillll
'beasfollows for each ofthe Member' States :

-5-
Bénélux
Denmarlc
Germany
France
Ireland
Italy
United Kingdora
TOTAL-inmetrie tonnes »
Common Customs Tariff heading
27.10 AIIIb)!27.10 CIc),CIIc)
62.500
31.250
62.500
62.500
31.250
62.500
62.500
375.000375.000
187.500
375.000
375.000
187.500
375.000
375.000
2.250.000
2.Thesecond instalment ofeach tariff quota ,of250.000 tonnes
and1.500.000 tonnes ,respectively ,shall bethecorresponding
reserve .
Article 3
1.If90%ormore ofoneoftheinitial quota shares ofaMember
State ,aslaid down inArticle 2paragraph 1,or90%ofthat
share less the ,amount returned into thecorresponding reserve ,
where theprovisions ofArticle 5have been applied ,hasbeen -
exhausted ,that Member State shall atonce ,bynotifying the
Commission ,draw asecond quota share equal to20%ofitsinitial
quota share ,rounded upwhere appropriate tothenext unit ,to
the extent that the amount inthe reserve allows .
2.If,after oneorother itsinitial shares hasbeen exhausted ,90%
ormore ofthesecond quota share drawn byaMember State hasbeen
used ,that Member State shall inthemanner prescribed inparagraph
1,bynotifying theCommission ,",draw athird share equal to10%
ofitsinitial quota share ,rounded upwhere -appropriate to,the
next unit ,tothe extent that the amount inreserve allows .
•/••

3.If,after oneorother ofitssecond quota shares hasbeen exhausted
90%ormore ofthethird share drawn byaMember State hasbeen
used ,'that Member State shall ,inasimilar manner ,dr;*w afourth
quota share equal tothethird .
.'5 .
This procedure shall continue tobeapplied until thereserve is
exhausted .
N ;
4-.Notwithstanding theprovisions ofparagraphs 1,2and3,Member
States may draw quota shares smaller than those fixed inthose'
paragraphs ifthere isreason tobelieve that those shares maynot
beused up.They shall inform theCommission ofthereasons which
will have ledthem toapply this paragraph .
Article 4
Theadditional quota shares drawn pursuant toArticle 3shall be
valid until 31 .August 197^.
Article 5
Ifon15 •June 197n a.Member State has notused upone orother
ofitsinitial quota shares ,itshall ,notlater than 10 'ctfuly -*197^1
return tothecorresponding reserve theunused portion ofthat share
inexce^es of20%oftheinitial amount .Itmayreturn alarger
quantity ifthere arereasons toconsider that such quantity might
not beused .
TheMember States shall ,notlater than 10 r197^»notify the
Commission ofthetotal amount oftheproducts concerned imported up
to15 -June - .197^inclusive ,andsetoffagainst theCommunity .
tariff quotas ,and ,where appropriate oftheproportion ofeach of
their original quota shares being returned toeach ofthereserves .
Article 6
TheCommission shall keep account ofthequota shares opened byMember
States inaccordance with Articles 2and3and shall inform each of
them ofthe extent towhich thereserves have been used upassoon
asitreceives the notifications .

TheCommission shall ,notlater than 15July 197% .notify Member
States ofthe state ofeach of .the reserves after the return of
shares pursuant toArticle 5-
TheCommission shall ensure that any drawing which uses uponeof
the reserves islimited tothe balance available and for this purpose
shall specify theamount thereof totheMember State which makes the
final drawing .
Article 7
1.TheMember States shall take allmeasures necessary toensure that ,
when additional quota shares are drawn pursuant toArticle 3>it
ispossible foramounts tobesetoff without interruption against
their accumulated shares oftheCommunity quotas .
2.TheMember States shall guarantee toimporters oftheproducts
concerned established intheir territory free access tothequota
shares allocated tothem .
r
3-The extent towhich thequota ahares oftheMember States have been
used upshall berecorded onthebasis ofimportations oftheproducts
concerned whieh Arepresented forcustoms clearance under cover of
declarations for home use . <
Article 8
Member States shall inform theCommission atregular intervals of
theimportations oftheproducts concerned actually setoffagainst
their quota shares .

-8-
Article 9
TheMember States and theCommission shall cooperate closely morder
toensure that theprovisions ofthis Regulation areobserved . r
Article 10
This Regulation shall enter into force on1March 197k .
This Regulation shall bebinding initsentirety and directly
applicable inallMember States .
Done atBrussels , For the Council
The President