ARCHIVESHISTORIQUES
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DOCUMENTS "COM"
COM(78)161
Vol.1978/0053

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SONOFTHEEUROPEAN COMMUNITIES
COM(78)161 final .
Brussels ,L',Aprii
Proposal for a
COUNCIL REGULATIONS (EEC )
ontheopening ,allocating andproviding forthe
administration ofaCommunity tariff quota for
liqueur wines ,falling within heading Noex22.05
oftheCommon Customs Tariff ,originating inCyprus
(submitted totheCouncil bytheCommission )

EXPLAi-ÎATOR iMEMORAND UM
On i]fr*t 3978 ,anadditional Protocol tobeannexed tothe
Agreement EEC-Cyprus wasinitialled .Theeotry into force of
this Protocol ispreviewed for 1July 1978 .
Article 6ofthis Protocol opens ,anannual Community tariff
quota for250000hiofliqueur wines originating inCyprus of
subheading ex25.05 CcftheCCT atarate ofduty reduced by
70percent .The "prorata temporis "clause isapplicable .
These wines remaind subject totheprovisions which provide
for thecommon organization ofthewine market andespecially
inrespect ofthereference p„rice which isapplicable tothem .
Under these conditions ,itisnecessary toopen aCommunity
tariff quota ,of125000hicovering allthese wines atthe
following duty rates 3.3u.al /hl,4.2u.a»/hi,5.1u.a. /hl
and ST."?u.a. /hlfortheperiod of iJuly to31December 1978 .
However ,toavoid anydisruption oftrade between Cyprus and
theCommunity inthisproduct ,itisnecess^y^to anticipate
this measure autnomously asfrom 1May/t978 ,that istomaintain
continuity with the .autnomous tariff measures that theCommunity
hastaken inRegulations (EEC)Nos3016 /77and S2>3 /78
covering theperiod IJanuary to30April 1978 .
Because ofthis thetariff volume tobeopened isrised to
41666 hectolitres .
This Regulation provide for thesplitting upofthetariff volume
into twoparts ,ofwhich thefirst will beallocated among the
Member States asquota share and thesecond will bekept asa
reserve .Intheabsence ofCommunity statistics ,the initial
quota shares have been calculated onthebasis cfthepossible
demand onthemarkets ofthe various Member States .

4.Because of .theinherents particularities inthetrade in
these wines which ,additionaly ,aredifferent from one
Member State toanother ,theprovisions oftheRegulation ,
except ionnally ,donotlaydown acommon method of
administration . .
Armex :1proposai foraCouncil Regulation .

Pxoposal for a
COUNCIL REGULA !ION (EEC)Ño ,,./78
of
opening ,allocating andproviding fortheadministration ofa
Community tariff quota forliqueur wines falling vichin sub­
heading' Nofex22.05 CoftheCommon Customs Tariff ,
originating inCyprus
-TUBC.OUNCU .OPTHEEUROPEAN
COMMUNITIES .
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle:
11.<thereof, ■ '
HavingregardtotheproposalfromtheCommission,
ι' ■•V
Whereas ,asupplementary Protocol tobeannexed totheAgreement
establishing anassociation between theEuropean Economic Community
andtheRepublic ofCyprus (2)wasinitialled on?April '1978 ;
whereas theentry intb force ofthis Protocol isexpected tooccur on
I1July 1978 ;whereas Article 6ofthis Protocol provides forthe
opening ofanannual Community tariff quota of250000hectolitres
ofliqueur wines originating inCyprus ofsubheading ex22.05 C
oftheCommon Customs Tariff atrates ofcustoms duty equal to
30% ofthe Common Customs Tariff duties ;whereas
theprorata temporis clause isapplicable ;
Whereas ,inorder toavoid adisruption ofthetrade inthis
product between Cyprus andtheCommunity ,itisnecessary to
anticipate theapplication ofthis tariff measure autonomously
with effect from 1Mayuntil 30June 1978 soastomaintain continuity with the
autonomous measures that theCommunity hastaken under Regulations
(EEC )Hos3016 /77 (3)and 533 /78 (4)for the
period 1January to39April 1978 ;whereas under the?e
circumstances itisnecessary toopen aCommunity tariff quota
of4!666hectolitres for theperiod iMay to 30June 1978.
(4)OJNoL133of21.5.1973 ,p.2
(1)OJNoL355cf31.12.1977 ,p.38
($)OJNoL"74c$AG .h. r>.S

Whereasthesewinesremainsubjecttotheprovisions ,
governingthecommonorganisationofthemarketin .
vineproducts,especiallyasregardsobservanceofthe
referenceprice;whereasinclusionintheCommunity
tnritfquotashouldbesubjecttoproductionofmove­
mentcertificate , .■.•.,..ACY 1and totne condition that these
wines are described inthe V.I.I,
document provided for inRegulation
(EEC)No2135/76(I)as"liqueur
wines ". - ■
WhereasCouncilRegulation(EEC)No2506/75of29
September1975layingdownspecialrulesforthe
importationofproductsinthewine-growing sector
originatingincertainthirdcountries^),introduced
theideaofa'free-at-frontierreferenceprice,beingthe
referencepricelesscustomsdutiesactuallylevied;
Whereas ,special reasons inherent mthemethod of
production anddistribution oftheproduct ,the import
into the Community ofthese wines islargely carried
outduring the last months oftheyear ;whereas in '
consequence thequotas opened for theperiod 1January
to30April 1978 have notbeen entirely used up;
whereas ,byway ofexception ,itisnecessary to
provide for theamount remaining from this period to
betaken into consideration with aview tobeing used
during theperiod ofvalidity ofthis Regulation ;
vO0JNoL237/,28*8*1976,p.1,

3«
Whereasuisinparticularnecessarytoensureforalt
Communityimportersequalanduninterrupted access
totheabovcrrventi.*cci quotaanduninterruptedappli­
cationoftheratesiaiddownforthatquotaioaii
importsoftheproductsconcernedintoahMember
Statesiintil.thequotahasbeersusedup;whereas,
havingregardtotheprinciplesmentionedabove,the
Communitynatjrcoith>-quotacanberespected!»y-
allocatingtheCommunitytariffquotaamongthe
Miembt-rStates;whereas,inordertoreflectmoreaccu­
ratelyUseaety&idevelopment otthemarketinthe
productsconcerned,suchallocationshouldbein
proportiontotheneedsoftheMemberStates,
assessedbyreferencetoboththestatisticsofeach
.State'siniportsofthesaidproductsfrom/overa/"Cyprus
representative .periodandtheeconomicoutlookfor
theqno'aperiodconcerned ,
WhojM.sinthiscase,however,neitherCommunity'
nornationalstatisticsshowingthebreakdownforeach
ofthetypesofwinesinquestionareavailableandno
reliableestimatesoffutureimportscanbemade;
whereas,inthesecircumstances ,thequotavolumes
shouldbeallocatedininitialshares,i?kir.ginto
accountdemandforthesewinesonthemarketsofthe
variousMemberStates:
Whereas;inordertota:<cintoaccountimporttrends
fortheproductsconcernedinthedifferentMember
States,thequotaamountshouldbedividedintotwo
tranches,thefirsttranchebeingallocatedamongthe
MemberStatesandthesecondformingareserve
intendedultimatelytocovertherequirementsofthe
MemberStateswhichhaveuseduptheirinitialquota
shares;whereas,inordertoensureacertaindegreeof
securitytoimportersineachMemberStale,thefirst
trancheoftheCommunityquotashouldbedeter­
minedatalevelwhich,tmder'presentcircumstances,
maybeapproximately90%ofthequotaamount;
WhereastheinitialsharesoftheMemberStatesmay,
beusedupatdifferenttimes;whereas.,inorderto
•takethisfeet-intoaccountandavoidanybteekin
continuity,itisimportantthatanyMemberSlate
havingusedupalmostthewholeoiitsinitialshares
shoulddrawanadditionalsharefrom'thereserve;
whereasthismustbedoneby"eachMemberStateas
andwheneachofitsadditionalsharesisalmost
entirelyusedup...andrepeatedasmanytimesasthe
reserveallows;whereastheinitialandadditional
sharesmustbeavailableforuseuntiltheendoithe-
quotaperiod;whereasthismethodofadministrators
callsforclosecooperationbetweenMemberStatesand
theCommission ,whichmust,nparticular,beableto
observetheextenttowhichthequotaamountisused
andinformMemberStatesthereof;

-L-
w'hereas,ifataspecifieddateinthequslaperiod,~
considerablebalanceremainsinoneorotherMember
StateitisessentialthatthatMemberStatepaysalarge
amountofitbackintothereserve,inordertoavoida
partoftheCommunityquotaremainingunusedin
oneMemberStatewhenitcouldbeusedinothers;
WhereassincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourgareunitedinandrepresentedbythe
BeneluxEconomicUnionalltransactionsconcerning
theadministration ofsharesallocatedtothat
economicunionmaybecarriedoutbyanyoneofits
members, ■
HASADOPTEDTHISREGULATION ;
Article/
1.From1Mayuntil30June »978,the
CommonCustomsTariffdutiesinrespectofthe
followingproductsoriginatinginCypruSshallbe
partiallysuspendedatthelevelsshownbelowwithin
thelimits'ofaCommunitytariffquotaof41666
hectolitres :
Heading
Number Description Rateofduty.
22,05 wineoffreshgrapes;grapemustwithfermentation
arrestedbytheadditionofalcohol:
C.Other:
Ofanactualalcoholicstrengthexceeding
13°butnotexceeding15°,incontainers
,holding:
exa)Twolitresorless:
-liqueurwinesofanactual
alcoholicof15° ,4.2u.a./hi
exb)Morethantwolitres:
.-liqueurwinesofanactual ,
;■.alcoholicof15° 3.3u.a./hl
III.Ofanactualalcoholicstrengthexceeding
15°butriotexceeding18°,incontainers
holding:
a)Twolitresorless:
ex2.Other:
.--ltaueur 5.1.u,a.7hl
p'n.-jrctiiatf«.wol.trs:.;
ex3.Other:
-liqueurwines 4,2u,ac/hl
Ν

-5-
IV.Ofanactualalcoholicstrengthexceeding .
18°butnotexceeding22°,incontainers
holding:
a)Twolitresorless:
ex2.Other:
-liqueurwines 5.7u.a;/hl
b)Morethantwolitres:•
ex3.Other:
-liqueurwines 5.7u.a./hi
2.TheProtocolonthedefinitionoftheconceptof.
'originatingproducts'andonmethodsofadministra­
tivecooperationannexedtotheAgreementbetween
theEuropeanEconomicCommunityandCyprusshall
beapplicable.
3.Theinclusionofthesewinesin
thetariffquotashallbeconditionalon
'iheirbeingdescribedinthéV.I.Idocumentprovided
forinRégulation(EEC)No2115/76as'liqueurwincs•
4.Theinclusionofthesewinesinthe
tariffquotashallbeconditionaluponobservanceof
thereferencepriceapplyingtothemandproduction
ofmovementcertificate ACY1.
5.'Thewfnesinquestionshallbenefitfromthis
tariffquotaonconditionthatthepricesonimport
intotheCommunityarenotatanytimelessthanthe
free-at-frontierreferencepricesreferredtoinRegula­
tion(lEEC)NO2506/75andsubsequenttextswhich
applytosuchprices.
Article2
I.TheCommunitytariffquotareferredtoin
Article1shallbedividedintotwotranches.

2.7>?-firrttranche,arrountingto/
trcs,shallbesharedamongtheMemberStates;the
proportionswhich,subjecttoArticle5,sha!!bevalid
until30June1978,shallbeasfollows;
Bénélux ' 1870
Denmark 1870
Germany 1870
France ]870
Ireland .3740
italy 1870
•UnitedKingdom 24410
3.Theshares fixed inparagraph 2shall beincreased by
any part oftheshares allocated under Regulations (EEC )
Nos3016 /77and 533/78remaining •on30April 1978 .
Member States shall notify theCommission not later than
15May1978 ofanyremaining parts oftheshares allocated
tothem by-theabove-mentioned ' x
Regulations existing on30April 1978 .
4„Thesecond tranche ,amounting to4166 hectolitres ,
shall constitute thereserve ,towhich shall beadded any
parts ofthereserves established byArticle 2ofRegulation (E
Nos3016 /77and 533/78remaining on30April 1978
irrespective ofthe application ofArticle 5.'37500
Article3
1.If90%ormoreoftheinitialshareofaMember
State,aslaiddowninArticle2(2),or90%ofthat
sharelesstheamountreturnedintothereserve,where
the.provisionsofArticle •5havebeenapplied,has
beenexhausted,thatMemberStateshallproceed
withoutdelay,bynotifyingtheCommission,todrawa
secondshareequalto15%ofitsinitialshare,
roundeduptothenextunitwhereappropriate,tothe
extentthattheamountinthereserveallows.
2.If,afteritsinitialsharehasbeenexhausted,
90%ormoreofthesecondsharedrawnbya
MemberStatehasbeen-used,thatMemberStateshall
proceed,inthemannerspecifiedinparagraph 1.to
drawa-thirdshareequalto7-5%ofitsinitialit,
roundeduptothenextur.itwhereapp'opri---,;c-ne
extentthattheamountinthereserveaiic•

-7-
3.If,afteritssecondsharehasbeenexhausted,
90%ormoreofthethirdsharedrawnbyaMember
Statehasbeenused,thatMemberStateshallproceed,
inthesameway,todrawafourthshareequaltothe'
third.
Thisprocessshallbeapplieduntilthereserveis
exhausted.
4.Notwithstanding theprovisionsofparagraphs 1,
2and3,theMemberStatesmayproceedtodraw
sharessmallerthanthosefixedinthoseparagraphsif
thereisreasontobelievethattheymightnotbeused
up.TheyshallinformtheCommissionofthereasons
whichledthemtoapplythisparagraph.
Article4
t
TheadditionalsharesdrawnpursuanttoArticle3
shallbevaliduntil30June•1978.
Article5
– Member^States snailreturntothereserve,notlater'^5June •thanI1978,theunusedportionoftheir
initialsharewhich,on10June1978,isin
excessof20%oftheinitialamount.Theymayreturn
alargerportioniftherearegroundsforbelievingthat
suchportionmaynotbeusedinfull.
EachMemberStateshall,notlaterthan15June
1978,notifytheCommissionofthetotalimportsof
theproductsconcernedeffectedupto10June i
1978inclusive,andchargedagainsttheCommunity ,
quotaand,whereappropriate,theproportionofits
initialsharethatisbeingreturnedtothereserve.
Article6
TheCommissionshallkeepaccountoftheshares
openedbyMemberStatesinaccordancewithArticles
2and3andshallinformeachofthemoftheextent
towhichthereservehasbeenusedassoonasit
receives "thenotifications .
TheCommissionshall,notlaterthan20June1978/
notifyMemberStatesoftheamountinthereserve
afterthereturnofsharespursuanttoArticle5.-
TheCommissionshallensurethatanydrawingwhich
usesupthereserveislimitedtothebalanceavailable
and,forthispurpose,shallspecifytheamountthereof
totheMemberStatewhichmakesthefinaldrawing.

-5-
Article7
1.iheMemberStr.tesshalltakeallappropriate
measurestoensurethat,whenadditionalsharesare
drawnpursuanttoArticle3,itispossibleforcharges
tobemadewithoutinterruptionagainsttheiraccumu­
latedsharesoftheCommunityquota.
TheMemberStates-shallensurethatimporters
ofthesaidgoodsestablishedintheirterritoryhave
freeaccesstothesharesallocatedtothem.
3.TheextenttowhichaMemberStatehasusedup
itsshareshallbedeterminedonthebasisofthe
importsofthegoodsinquestionenteredatcustoms
forhomeuse.
Article8
OnreceiptofarequestfromtheCommission,
MemberStatesshallinformitofimportsactuallychargedagainsttheirshares.
Article9 ■Article10
TheMemberStatesandtheCommissionshallcoop­
eratecloselyinordertoensurethatthisRegulationisThisRegulationshallenterintoforceon1May
observed . 1978.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels.
FortheCouncil
ThePresident