ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)240
Vol.1977/0087

Disclaimer
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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)240 final
/
Brussels ,8June 1977
PROPOSAL FOR A
REGULATION (EEC)OPTHECOUNCIL ;
/
opening ,allocating andproviding fortheadministration
ofCommunity tariff quotas forport wines ,falling
within heading ex22.05 oftheCommon Customs Tariff ,
originating inPortugal (1978 )
I
! i
PROPOSAL FOR A
REGULATION (EEC)OPTHECOUNCIL
opening ,allocating andproviding fortheadministration
ofCommunity tariff quotas forMadeira wines ,falling
within heading ex22.05 oftheCommon Customs Tariff ,
originating inPortugal (1978 )
f
PROPOSAL FOR A
I •
REGULATION (EEC)OFTHECOUNCIL
opening ,allocating andproviding fortheadministration
ofCommunity tariff quotas forSetubal muscatel wines ,
falling within heading ex22.05 oftheCommon Customs \
Tariff ,originating inPortugal (1978 ) i
(submitted totheCouncil bytheCommission )
COM(77 )240final

EXPLANATORY_MEMORANDyH
1.Article UofProtocol No8totheAgreement of1972 between the
European Economic Community and thePortuguese Republic asamended by
Article 9oftheInterim Agreement of1976 ,provides fortheopening
ofCommunity tariff quotas forthewines listed below :
Common Customs
Tariff beading
No
ex22.05 CIII a)
ex22.05 CIVa)
ex22.05 CIII b)
ex22.05 CIVb)
ex22.05 CIII a)
ex22.05 CIVa)
ex22.05 CIII b)
ex22.05 CIVb)
ex22.05 CIII a)
ex22.05 CIVa)
ex22.05 CIII b)
ex22.05 CIVb)Description ofgoodsAnnual
Total
VolumeRate of
réduction
Port wines 35,000 hi
-incontainers holding
two litres orless
Port wines 280 000 hi
-incontainers holding
more than two litres
Madeira wines 1500 hi
-incontainers holding
two litres orless
Madeira wines 14500 hi
-incontainers holding
more than two litres
Setubal muscatel wines 1000 hi
-incontainers holding
two litres orless
Setubal muscatel wines 2000 hi
-incontainers holding
more than two litres60%
50%
60%
50%
60%
50%
These wines will remain subjoot toprovision relating to
the ooinmon organization ofthemarket inwine .
2*Inorder tomeet theCommunity 'sobligations toPortugal in1978
have tobeadopted providing fortheopening ,allooation andadministra ^
tion ofCommunity tariff quotas .
That io,the objeot oftheannexed proposals .

3.TheRegulationsprovide,inthenormalway,thateaohofthevolumao
shall "bedividedintotwoinstalments,thefirstofwhiohisto"be
allocatedamongtheMemberStatesandtheseoondheldasareserve*
Theallooationofthefirstinstalmentiausuallybasedonstatistics
forthethreepreoedingyearsandonforecastsfortheperiodin
question.IntheabsenoeofspecifioCommunitystatisticsforthese
winestheinitialquotashavebeenoaloulatedonthebasisofthe
mostreoentstatisticsforPortugueseexportsfrom1974to1976•
ThePortuguesestatisticscaninfaotbeconsideredtogivoarough
piotureofCommunityimportsofthevinesinquestion*
TheMemberStates'expertswhoparticipatedintheconsultativemeeting
ofthe"EconomicTariffProblems"Group(13/14April1977)expressed
agreementinprincipletotheschemeforallocationsofsharesproposed
bytheCommissionintheframeworkoftheregulationsannexed.
ANNEXES:3proposalsforRegulations oftheCouncil

ANNEXA
Proposalfora
COUNCILREGULATION (EEC)
opening,allocatingandproviding(ortheadministration ofCommunitytariff
quotasforportwines,fallingwithinheadingNoex22.05oftheCommon
CustomsTariff,originatinginPortugal(1978)
THECOUNCILOFTHEEUROPEAN *
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticles43
and113thereof.
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParlia­
ment('),
WhereasArticle4ofProtocol8totheAgreement
betweentheEuropeanEconomicCommunityandthe
PortugueseRepublic(2),asamendedbytheInterim
AgreementbetweentheEuropeanEconomicCommu­
nityandthePortugueseRepublic(3),providesthat
customsdutiesonimportsintotheCommunityof
certainwinesoriginatinginPortugal,shallbe
reduced:
–by60%inthecaseofthedutiesapplicableto
portwinesfallingwithinsubheadingsex22.05C
IIIa)1andex22.05CIVa)1oftheCommon
CustomsTariff,uptoatotalannualtariffquotaof
35000hi,and
–by50%inthecaseofthedutiesapplicableto
portwinesfallingwithinsubheadingsex22.05C
IIIb)1andex22.05CIVb)1oftheCommon
CustomsTariffuptoatotalannualtariffquotaof
280000hi:
Whereasthesewineswill J'
remainsubjecttotheprovisionsgoverningthe
commonorganizationofthemarketinwine;
Whereasitisinparticularnecessarytoensureforall
Communityimportersequalanduninterruptedaccesstotheabovementioncd quotasanduninterrupted
applicationoftherateslaiddownforthesequotasto
allimportsoftheproductsconcernedintoallMember
Statesuntilthequotashavebeenusedup;whereas,
havingregardtotheprinciplesmentionedabove,the
Communitynatureofthequotascanberespectedby
allocatingtheCommunitytariffquotaamongthe
MemberStates;
Whereas,inordertoreflectmostaccuratelytheactual
developmentofthemarketintheproductsconcerned,
suchallocationshouldbeinproportiontotheneeds
oftheMemberStates,assessedbyreferencebothto
thestatisticsofeachState'simportsfromPortugal
overarepresentative periodandtotheeconomic
outlookforthequotaperiodconcerned;
WhereasavailableCommunitystatisticsgivenoinfor­
mationonthesituationofportwinesonthemarkets;
whereas,however,Portuguesestatisticsforexportsof
theseproductstotheCommunityduringthepast
threeyearscanbeconsideredtoreflectapproximately
thesituationofCommunityimports;whereasonthis
basisthecorresponding importsbyeachofthe
MemberStatesforthepastthreeyearsrepresentthe
followingpercentagesoftheimportsintotheCommu­
nityfromPortugaloftheproductsconcerned :
(')OJNo
{')OJNoL301,31.12.1972,p.165.
(')OJNoL266,29.9.1976,p.2.1974 197S
Portwines:
–inréceptaclescontai­
ningtwolitresorless:–Dcnelux 13-418-8
–Denmark i4-6-0
–Germany 7-215-3
–France 27-929-0
–-Ireland 0-60-4
–Italy 29-9 6-1
–UnitedKingdom 16-914-41976
17.8
6.211.0
36.0
i8:S
10.5

-2- ANNEXA
1974 1975
–inreceptacles con­i
tamingmorethantwo
litres:
–Bénélux !14-013-4
–Denmark 4-555
–Germany 100-4
–France 41039-4
–Ireland 1-51-2
–Italy–UnitedKingdom 28-03011976
15.7
7.0
6.4
46.5
0.6
23.8endofthequotaperiod;whereasthismethodof
administration callsforclosecooperationbetween
MemberStatesandtheCommission ,whichmust,in
particular,beabletoobservetheextenttowhichthe
quotaamountsareusedandinformMemberStates
thereof;
Whereasif,ataspecifieddateinthequotaperiod,a
considerablebalanceofoneoftheinitialquotashares
remainsinoneorotherMemberStateitisessential
thatthatMemberStatepaysalargeamountofitback
intothereserve,inordertoavoidapartofoneor
otheroftheCommunityquotasremainingunusedin
oneMemberStatewhenitcouldbeusedinothers;
Whereas,inviewofthesedataandtheestimates
submittedbycertainMemberStates,initialquota
sharesmaybefixedapproximately atthefollowing
percentages :
Portwinesinreceptacles
containing
fwolitres
orIcssmorethan
twolitres
Bénélux 16-6 14-6
Denmark 4-8 66
Germany 4-9 8-7
France 29-7 42-5
Ireland 0-8 •0-8
Italy 18-8 0-1
UnitedKingdom14-4 26-7Whereas,sincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourg areunitedinandrepresentedbythe
BeneluxEconomicUnion,alltransactionsconcerning
theadministration ofsharesgrantedtotheabovemen-
tionedeconomicunionmaybecarriedoutbyanyof
itsmembers.
HASADOPTEDTHISREGULATION :
Article1
1.Fortheperiodfrom1Januaryto31December
1978,Communitytariffquotasshallbeopenedfor
productsoriginatinginPortugal,andwithinthelimits
listedbelow:
Whereas,inordertotakeintoaccountimporttrends
fortheproductsconcernedinthedifferentMember
States,eachofthequotaamountsshouldbedivided
intotwoinstalments,thefirstinstalmentbeingallo­
catedamongtheMemberStatesandthesecond
formingareserveintendedultimatelytocoverthe
requirements oftheMemberStateswhichhaveused
uptheirinitialquotashares;whereas,inorderto
ensureacertaindegreeofsecurityforimportersin
eachMemberState,thefirstinstalmentofthe
Communityquotasshouldbedeterminedatalevel
which,underpresentcircumstances ,maybe90%of
eachofthequotaamounts;
WhereastheinitialquotasharesoftheMemberStates
maybeusedupatdifferenttimes;whereas,inorder
totakethisfactintoaccountandavoidanybreakin
continuity,anyMemberStatehavingusedupalmost
thewholeofanyoneofitsinitialquotasharesshould
drawanadditionalquotasharefromthecorres­
pondingreserve;whereasthismustbedonebyeach
MemberStatewheneachofitsadditionalquotashares
isalmostentirelyusedup,andrepeatedasmanytimes
asthereserveallows;whereastheinitialandaddi­
tionalquotasharesmustbeavailableforuseuntiltheCCT
headingNoDescriptionQuota
•mount
ex22.05CIIIa)1
ex22.05CIVa)1
ex22.05CIIIb)1
ex22.05CIVb)I|Portwines
|Portwines35000hl
280000hl
2.TheCommonCustomsTariffdutiesonwines
importedwithinthesetariffquotasshallbesuspended
attherateslistedbelow:
CCTheadingNo Rateofduty
ex22.05CIIIa1 5-4u.aVhl
ex22.05CIVa)1 5-8uj./hl
ex22.05CIIIbI 5-5uj./hl
ex22.05CIVb)1 60uji7hl

-3- ANNEXA
Artide2
1.ThetariffquotaslaiddowninArticle1shallbe
dividedintotwoinstalments .
2.Afirstinstalmentofeachquotashallbeshared
amongtheMemberStates;theshareswhich,subject
toArticle5,shallbevaliduntil31December1978
shallconsistofthefollowingamounts:
(inhectolitres)
Portwinesundersubheadings
Fen22.0SCIIIa)Iex22.05CIIIb)I
and and
ex22.05CIVa)1ex22.0*CIVb)I
Bénélux 5250 36790
Denmark I500 6610
Germany 4690 22000
France 9350 107100
Ireland 250 2000
Italy 5920 00
UnitedKingdom 4540 67.180
Total 31500 252000
3.Thesecondinstalmentofeachquota,3500
hectolitresand28000hectolitresrespectively,shall
constitutethereserve.
Article3
1.If90%ormoreofoneoftheinitialsharesofa
MemberState,aslaiddowninArticle2(2)or90%or
moreofthatsharelesstheamountreturnedintothe
reserve,wheretheprovisionsofArticle5havebeen
applied,hasbeenexhausted,thatMemberStateshall
proceedwithoutdelay,bynotifyingtheCommission ,
todrawasecondshareequalto1.5%ofitsinitial
share,roundeduptothenextunitwhereappropriate,
totheextentthattheamountinthereserveallows.
2.If,afteroneorotherofitsinitialshareshasbeen
exhausted,90%ormoreofthesecondsharedrawn
byaMemberStatehasbeenused,thatMemberState
shallproceedinthemannerspecifiedinparagraph 1
todrawathirdshareequalto7-5%ofitsinitial
share,roundeduptothenextunitwhereappropriate,
totheextentthattheamountinthereserveallows.
3.If,afteroneofitssecondshareshasbeen
exhausted,90%ormoreofthethirdsharedrawnby
aMemberStatehasbeenused,thatMemberState
shallproceedinthemannerspecifiedinparagraph I,
todrawafourthshareequaltothethird.
Thisprocessshallbeapplieduntilthereserveis
exhausted .4.Notwithstanding paragraphs 1,2and3,the
MemberStatesmayproceedtodrawsharessmaller
thanthosefixedinthoseparagraphsifthereisany
reasontobelievethatthosesharesmightnotbeused
up.TheyshallinformtheCommissionofthereasons
whichledthemtoapplythisparagraph.
Article4
Eachoftheadditionalsharesdrawnpursuantto
Article3shallbevaliduntil31December19$.
Article5
TheMemberStatesshallreturntothereserve,not
laterthan1October1978,theunusedportionaftheir
initialsharewhich,on15September1978.isin
excessof20%oftheinitialamount.Theymayreturn
alargerquantityiftherearereasonstobelievethat
suchquantitymightnotbeused.
TheMemberStatesshall,notlaterthan1October
1978,notifytheCommissionofthetotalimportsof
theproductsconcernedeffectedupto15September
1978inclusiveandchargedagainsttheCommunity
quotasand,whereappropriate,theproportionoftheir
initialsharesthatisbeingreturnedtoeachreserve.
Article6
TheCommissionshallkeepaccountoftheshares
openedbyMemberStatesinaccordancewithArticles
2and3andshallinformeachofthemoftheextent
towhichthereserveshavebeenusedassoonasit
receivesthenotifications .
TheCommissionshall,notlaterthan5October19/8,
notifyMemberStatesoftheamountineachreserve
afterthereturnofsharespursuanttoArticle5.
TheCommissionshallensurethatanydrawingwhich
usesupanyreserveislimitedtothebalanceavailable
andforthispurpose,shallspecifytheamountthereof
totheMemberStatewhichmakesthefinaldrawing.
Article7
1.TheMemberStatesshalltakeallappropriate
measurestoensurethat,whenadditionalsharesare
drawnpursuanttoArticle3,itispossibleforcharges
tobemade,withoutinterruption,againsttheiraccu­
mulatedsharesoftheCommunitytariffquotas.
2.TheMemberStatesshallensurethatimporters
ofthesaidgoodsestablishedintheirterritoryhave
freeaccesstothesharesallocatedtothem.

-A- ANNEXA
3.Theextenttowhich■MemberStatehasusedup
itssharesshallbedeterminedonthebasisofthe
importsoriginatinginPortugalasandwhenthegoods
areenteredforhomeuse.
Article8
AttheCommission'srequestMemberStatesshall
informitofimportsoftheproductsconcernedactu­
allychargedagainsttheirshares.Article9
TheMemberStatesandtheCommission shallcoop­
eratecloselyinordertoensurethattheprovisionsof
thisRegulationareobserved.
Article10
TheMemberStatesshallforwardtothe
Commission,withinthe45daysfollowing
thepublicationofthisRegulationin
theOfficialJournaloftheEuropean
Communities,acopyoraphotocopyof
theprovisionstheyhavemadeinorder
toapplythisRegulation.
Article11
ThisRegulationshallenterintoforceon1January
1978.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,
FortheCouncil
ThePresident

ANNEXB
Proposalfora
COUNCILREGULATION (EEC)
opening,allocatingandprovidingfortheadministration ofCommunitytariff
quotasforMadeirawines,fallingwithinheadingNoex22.05oftheCommon
.CustomsTariff,originatinginPortugal(1978)
THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticles43
and113thereof,
HavingregardtotheproposalfromtheCommission.Whereasitisinparticularnecessarytoensureforall
Communityimportersequalanduninterrupted access
totheabovementioned quotasanduninterrupted
applicationoftherateslaiddownforthesequotasto
allimportsoftheproductsconcernedintoallMember
Statesuntilthequotashavebeenusedup;whereas,
havingregardtotheprinciplesmentionedabove,the
Communitynatureofthequotascanberespectedby
allocatingtheCommunitytariffquotaamongthe
MemberStates;
HavingregardtotheopinionoftheEuropeanParlia­
ment('),
WhereasArticle4ofProtocol8totheAgreement
betweentheEuropeanEconomicCommunity andthe
PortugueseRepublic(2),asamendedbytheInterim
AgreementbetweentheEuropeanEconomicCommu­
nityandthePortugueseRepublic(}),providesthat
customsdutiesonimportsintotheCommunity of
certainwinesoriginatinginPortugal,shallbe
reduced:
–by60'%inthecaseofthedutiesapplicableto
Madeirawinesfallingwithinsubheadings ex22.05
CIIIa)1andex22.05CIVa)1oftheCommon
CustomsTariff,uptoatotalannualtariffquotaof
1500hi,and
–by50%inthecaseofthedutiesapplicableto
Madeirawinesfallingwithinsubheadings ex22.05
CIIIb)1andex22.05CIVb)1oftheCommon
CustomsTariffuptoatotalannualtariffquotaof
14500hi;whereas,inordertoreflectmostaccuratelytheactual
development ofthemarketintheproductsconcerned ,
suchallocationshouldbeinproportiontotheneeds
oftheMemberStates,assessedbyreferencebothto
thestatisticsofeachState'simportsfromPortugal
overarepresentative periodandtotheeconomic
outlookforthequotaperiodconcerned;
WhereasavailableCommunitystatisticsgivenoinfor­
mationonthesituationofMadeirawinesonthe
markets;whereas,however,Portuguesestatisticsfor
exportsoftheseproductstotheCommunityduring
thepastthreeyearscanbeconsideredtoreflect
approximately thesituationofCommunityimports;
whereasonthisbasisthecorresponding importsby
eachoftheMemberStatesforthepastthreeyears
representthefollowingpercentagesoftheimports
intotheCommunity fromPortugaloftheproducts
concerned :
Whereasthesewineswill
remainsubjecttotheprovisionsgoverningthe
commonorganizationofthemarketinwine;
(')OJNo
iJ\/-\.
."JN°L301.31.12.1972,p.165.
()OJNoL266,29.9.1976,p.2.1974 1975
Madeirawines
–inreceptaclescontain*
ingtwolitresorle»:
–Bcnclux 15828-7
–Dcnmark 22S31-S
–Germany I87 9-0
–France 34 2-5
–Ireland 08 -0
–Italy354173
–UnitedKingdom 13-4|10-0

-2- ANNEXB
ι_ :
1974 975
–inreceptaclescontain-I
ingmorethantwo
litres:
–Bénélux 14-8 13-6
–Denmark 16-0106
–Germany 8-1214
–France 40-8467
–Ireland !01
–Italy–UnitedKingdomj10-27-71976
12.4
14.8
17.5
43.4
0.1
11.8
Whereas,inviewofthesedataandtheestimates
submittedbycertainMemberStates,initialquota
sharesmaybefixedapproximately atthefollowing
percentages :
Madeirawinesinreceptacles
containing
twolitres
oriessmorethan
twolitres
Bénélux 184 14-0
Denmark 22-9 16-5
Germany 131 191
France 3-6 40-8
Ireland -i 0-1
Italy 25-8 01
UnitedKingdom151 '9-4
whereas,inordertotakeintoaccountimporttrends
fortheproductsconcernedinthedifferentMember
States,eachofthequotaamountsshouldbedivided
intotwoinstalments,thefirstinstalmentbeingallo­
catedamongtheMemberStatesandthesecond
formingareserveintendedultimatelytocoverthe
requirements oftheMemberStateswhichhaveused
uptheirinitialquotashares;whereas,inorderto
ensureacertaindegreeofsecurityforimportersin
eachMemberState,thefirstinstalmentofthe
Communityquotasshouldbedeterminedatalevel
which,underpresentcircumstances ,maybe90%of
eachofthequotaamounts;
WhereastheinitialquotasharesoftheMemberStates
maybeusedupatdifferenttimes;whereas,inorder
totakethisfactintoaccountandavoidanybreakin
continuity,anyMemberStatehavingusedupalmost
thewholeofanyoneofitsinitialquotasharesshould
drawanadditionalquotasharefromthecorres­
pondingreserve;whereasthismustbedonebyeach
MemberStatewheneachofitsadditionalquotashares
isalmostentirelyusedup,andrepeatedasmanytimes
asthereserveallows;whereastheinitialandaddi­
tionalquotasharesmustbeavailableforuseuntiltheendofthequotaperiod;whereasthismethodof
administration callsforclosecooperationbetween
MemberStatesandtheCommission ,whichmust,in
particular,beabletoobservetheextenttowhichthe
quotaamountsareusedandinformMemberStates
thereof;
Whereasif,ataspecifieddateinthequotaperiod,a
considerablebalanceofoneoftheinitialquotashares
remainsinoneorotherMemberStateitisessential
thatthatMemberStatepaysalargeamountofitback
intothereserve,inordertoavoidapartofoneor
otheroftheCommunityquotasremainingunusedin
oneMemberStatewhenitcouldbeusedinothers;
Whereas,sincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourg areunitedinandrepresentedbythe
BeneluxEconomicUnion,alltransactionsconcerning
theadministration ofsharesgrantedtotheabovemen-
tionedeconomicunionmaybecarriedoutbyanyof
itsmembers,
HASADOPTEDTHISREGULATION :
Article1
I.Fortheperiodfrom1Januaryto31December
19^g,Communitytariffquotasshallbeopenedfor
productsoriginatinginPortugal,andwithinthelimits
listedbelow:
CCT
headingNoDescriptionQuota
amount
ex22.05CIIIa)1)Madeira
1500hlex22.05CIVa)1(wines
ex22.05CIIIb)1\Madeira.
ex22.05CIVb)1jIwines |14500hl
2.TheCommonCustomsTariffdutiesonwines
importedwithinthesetariffquotasshallbesuspended
attherateslistedbelow:
CCTheadingNo Rxeofduty
ex22.05CIIIa)1 5-4u^Vhl
ex22.05CIVa)1 5-8u.aVhl
ex22.05CIIIb)1 5-5u-ayhl
ex22.05CIVb)16-0ujVhl

ANNEXB
Article2
1.ThetariffquotaslaiddowninArticle1shallbe
dividedintotwoinstalments .
2.Afirstinstalmentofeachquotashallbeshared
amongtheMemberStates;theshareswhich,subject
toArticle5,shallbevaliduntil31December 19/8
shallconsistofthefollowingamounts:
(inhtffrlitns)
Madeiravinesundersubheading*
Ia22.05CIIIa)Iei2205CIIIb)I
and and
es22-05CIV•)I«2205C(Vb|l
Bénélux 248 1820
Denmark 309 2150
Germany 177 2480
France 50 S300
Ireland 15 15
Italy 347 15
UnitedKingdom 204 |
JI1220
I
Total I350 13000
3.Thesecondinstalmentofeachquota,150hecto-
litresand1500hectolitresrespectively,shallconsti­
tutethereserve.
Article3
1.If90%ormoreofoneoftheinitialsharesofa
MemberState,aslaiddowninArticle2(2)or90%or
moreofthatsharelesstheamountreturnedintothe
reserve,wheretheprovisionsofArticle5havebeen
applied,hasbeenexhausted,thatMemberStateshall
proceedwithoutdelay,bynotifyingtheCommission ,
todrawasecondshareequalto15%ofitsinitial
share,roundeduptothenextunitwhereappropriate,
totheextentthattheamountinthereserveallows.
2.If,afteroneorotherofitsinitialshareshasbeen
exhausted,90%ormoreofthesecondsharedrawn
byaMemberStatehasbeenused,thatMemberState
shallproceedinthemannerspecifiedinparagraphI
todrawathirdshareequalto7-5%ofitsinitial
share,roundeduptothenextunitwhereappropriate,
totheextentthattheamountinthereserveallows.
3.If,afteroneofitssecondshareshasbeen
exhausted,90%ormoreofthethirdsharedrawnby
aMemberStatehasbeenused,thatMemberState
shallproceedinthemannerspecifiedinparagraph 1,
todrawafourthshareequaltothethird.
Thisprocessshallbeapplieduntilthereserveis
exhausted .4.Notwithstanding paragraphs 1,2and3,the
MemberStatesmayproceedtodrawsharessmaller
thanthosefixedinthoseparagraphsifthereisany
reasontobelievethatthosesharesmightnotbeused
up.TheyshallinformtheCommissionofthereasons
whichledthemtoapplythisparagraph.
Article4
Eachoftheadditionalsharesdrawnpursuantto
Article3shallbevaliduntil31December 1978.
ArticleS
TheMemberStatesshallreturntothereserve,not
laterthanIOctober19^8,theunusedportionoftheir
initialsharewhich,on15September19^3,isin
excessof20%oftheinitialamount.Theymayreturn
alargerquantityiftherearereasonstobelievethat
suchquantitymightnotbeused.
TheMemberStatesshall,notlaterthanIOctober
1978notifytheCommissionofthetotalimportsof
theproductsconcernedeffectedupto15September
1978inclusiveandchargedagainsttheCommunity
quotasand,whereappropriate ,theproportionoftheir
initialsharesthatisbeingreturnedtoeachreserve.
Artide6
TheCommission shallkeepaccountoftheshares
openedbyMemberStatesinaccordancewithArticles
2and3andshallinformeachofthemoftheextent
towhichthereserveshavebeenusedassoonasit
receivesthenotifications .
TheCommission shall,notlaterthan5October1978,
notifyMemberStatesoftheamountineachreserve
afterthereturnofsharespursuanttoArticle5.
TheCommission shallensurethatanydrawingwhich
usesupanyreserveislimitedtothebalanceavailable
andforthispurpose,shallspecifytheamountthereof
totheMemberStatewhichmakesthefinaldrawing.
Article7
1.TheMemberStatesshalltakeallappropriate
measurestoensurethat,whenadditionalsharesare
drawnpursuanttoArticle3,itispossibleforcharges
tobemade,withoutinterruption ,againsttheiraccu­
mulatedsharesoftheCommunitytariffquotas.
LTheMemberStatesshallensurethatimporters
ofthesaidgoodsestablishedintheirterritoryhave
freeaccesstothesharesallocatedtothem.

~4- ANNEXB
3.TheextenttowhichaMemberStatehasusedup
itssharesshallbedetermined onthebasisofthe
importsoriginatinginPortugalasandwhenthegoods
areenteredforhomeuse.
Article8
AttheCommission srequestMemberStatesshall
informitofimportsoftheproductsconcerned
actuallychargedagainsttheirshares.Article9
TheMemberStatesandtheCommission shallcoop­
eratecloselyinordertoensurethattheprovisionsof
thisRegulationareobserved.
Article10
TheMemberStatesshallforwardtothe
Commission,withinthe45daysfollowing
thepublicationofthisRegulationin
theOfficialJournaloftheEuropean
Communities,acopyoraphotocopyof
theprovisionstheyhavemadeinorder
toapplythisRegulation.
Article11
ThisRegulationshallenterintoforceon1January
1978.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels.
FortheCouncil
ThePresident

ANNEX C
Proposal for a
COUNCILREGULATION (F.EC)
opening,allocatingandprovidingfortheadministration ofCommunitytariff
quotasforSetubalmuscatelwines,fallingwithinheadingNoex22.0Softhe
CommonCustomsTariff,originatinginPortugal(15»"8)
THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticles43
«nd113thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParlia­
ment('),
WhereasArticle4ofProtocol8totheAgreement
betweentheEuropeanEconomicCommunityandthe
PortugueseRepublic(2),asamendedbytheInterim
AgreementbetweentheEuropeanEconomicCommu­
nityandthePortugueseRepublic(3),providesthat
customsdutiesonimportsintotheCommunityof
certainwinesoriginatinginPortugal,shallbe
reduced:
by60%inthecaseofthedutiesapplicableto
Setubalmuscatelwinesfallingwithinsubheadings
ex22.05C111a)1ande*22.05CIVa)1ofthe
CommonCustomsTariff,uptoatotalannual
tariffquotaofI000hi,and
by50%inthecaseofthedutiesapplicableto
Setubalmuscatelwinesfallingwithinsubheadings
ex22.05CIIIb)1andex22.05CIVb)1ofthe
CommonCustomsTariffuptoatotalannualtariff
quotaof2000hi;Whereas these wines will
remainsubjecttotheprovisionsgoverning
commonorganizationofthemarketinwine;the
Whereasitisinparticularnecessarytoensureforall
Communityimportersequalanduninterrupted access
totheabovementioned quotasanduninterrupted
applicationoftherateslaiddownforthesequotasto
ailimportsoftheproductsconcernedintoallMember
Statesuntilthequotashavebeenusedup;whereas,
havingregardtotheprinciplesmentionedabove,the
Communitynatureofthequotascanberespectedby
allocatingtheCommunitytariffquotaamongthe
MemberStates;
Whereas,inordertoreflectmostaccuratelytheactual
developmentofthemarketintheproductsconcerned,
suchallocationshouldbeinproportiontotheneeds
oftheMemberStates,assessedbyreferencebothto
thestatisticsofeachState'simportsfromPortugal
overarepresentativeperiodandtotheeconomic
outlookforthequotaperiodconcerned;
WhereasavailableCommunitystatisticsgivenoinfor­
mationonthesituationofSetubalmuscatelwineson
themarkets;whereas,however,Portuguesestatistics
forexportsoftheseproductstotheCommunity
duringthepastthreeyearscanbeconsideredto
reflectapproximatelythesituationofCommunity
imports;whereasonthisbasisthecorresponding
importsbyeachoftheMemberStatesforthepast
threeyearsrepresentthefollowingpercentagesofthe
importsintotheCommunityfromPortugalofthe
productsconcerned:
0°JNo..ll\r\Im
>«w°.Lî01,3112l97z-pI6S-0OJNoL266,29.9.1976,p.2.1*74 l»7t
Setubalmuscatelwines:
–inreceptablcscontain*
ingtwolitresorless:
–Bénélux30
20
80–Dcnmark j<0–Germany I
–France
–Ireland20–Italy–UnitedKingdom1976
83
17

-2- ANNEXC
;1974 19751976
–inreceptaclescontain­
ingmorethantwo|
litres:
–Bénélux I70
–Denmark »
–Germany–France
–Ireland
–Italy–UnitedKingdom 30endofthequotaperiod;whereasthismethodof
administration callsforclosecooperationbetween
MemberStatesandtheCommission ,whichmust,in
particular,beabletoobservetheextenttowhichthe
quotaamountsareusedandinformMemberStates
thereof;
Whereasif,ataspecifieddateinthequotaperiod,a
considerablebalanceofoneoftheinitialquotashares
remainsinoneorotherMemberStateitisessential
thatthatMemberStatepaysalargeamountofitback
intothereserve,inordertoavoidapartofoneor
otheroftheCommunityquotasremainingunusedin
oneMemberStatewhenitcouldbeusedinothers:
Whereas,inviewofthesedataandtheestimates
submittedbycertainMemberStates,initialquota
sharesmaybefixedapproximately atthefollowing
percentages :
Setubalmuscatelwines
inreceptaclescontaining
twolitres
orleumorethin
twolitre*
Bénélux 20 20
Denmark 5 5
Germany 20 20
France 20 20
Ireland 5 5
Italy 10 0
UnitedKingdom 20 20whereas,sincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourg areunitedinandrepresentedbythe
BeneluxEconomicUnion,alltransactionsconcerning
theadministration ofsharesgrantedtotheabovemen-
tionedeconomicunionmaybecarriedoutbyanyof
itsmembers,
HASADOPTEDTHISREGULATION :
Article1
1.Fortheperiodfrom1Januaryto31December
1978,Communitytariffquotasshallbeopenedfor
productsoriginatinginPortugal,andwithinthelimits
listedbelow:
Whereas,inordertotakeintoaccountimporttrends
fortheproductsconcernedinthedifferentMember
States,eachofthequotaamountsshouldbedivided
intotwoinstalments,thefirstinstalmentbeingallo­
catedamongtheMemberStatesandthesecond
formingareserveintendedultimatelytocoverthe
requirements oftheMemberStateswhichhaveused
uptheirinitialquotashares;whereas,inorderto
ensureacertaindegreeofsecurityforimportersin
eachMemberState,thefirstinstalmentofthe
Communityquotasshouldbedeterminedatalevel
which,underpresentcircumstances ,maybe90%of
eachofthequotaamounts;
WhereastheinitialquotasharesoftheMemberStates
maybeusedupatdifferenttimes;whereas,inorder
totakethisfactintoaccountandavoidanybreakin
continuity,anyMemberStatehavingusedupalmost
thewholeofanyoneofitsinitialquotasharesshould
drawanadditionalquotasharefromthecorres­
pondingreserve;whereasthismustbedonebyeach
MemberStatewheneachofitsadditionalquotashares
isalmostentirelyusedup,andrepeatedasmanytimes
asthereserveallows;whereastheinitialandaddi­
tionalquotasharesmustbeavailableforuseuntiltheCCT
headmgNoDescriptionQuota
amount
ex22.05CIIIa)1
ex22.05CIVa)1
ex22.05CIIIb)1
ex22.05CIVb)1)Setubal
\muscatelwines
/Setubal
\muscatelwines1000hl
2000hl
2.TheCommonCustomsTariffdutiesonwines
importedwithinthesetariffquotasshallbesuspended
attherateslistedbelow:
CCTheadingNo Raieofduty
ex22.05CIIIa)l 5-4u.a./hl
ex22.05CIVa)1 5-8u-aVhl
ex22.05CIIIb)1 5-5u.a./hl
ex22.05CIVb)I|60u.a./hl

-3- ANNEXC
Article2
1.ThetariffquotaslaiddowninArticleIshallbe
dividedintotwoinstalments .
2.Afirstinstalmentofeachquotashallbeshared
amongtheMemberStates;theshareswhich,subject
toArticle5,shallbevaliduntil31December1978
shallconsistofthefollowingamounts:
(tuhtrlolitrrs)
ISetuhaimuscatelwinesundersubheadmes
Iex22.05CIIIa)1jex22.05CIIIb)1
and jand
ex22.05CIVa)Iex22.05CIVb)I
Bénélux 180 360
Denmark 45 90
Germany 180 360
France 80 360
Ireand 45 90
Italy 90 180
UnitedKingdom 180 360
Totali
900 I800
3.Thesecondinstalmentofeachquota,100hectol-
itresand200hectolitresrespectively ,shallconstitute
thereserve.
Article3
1.If90%ormoreofoneoftheinitialsharesofa
MemberState,aslaiddowninArticle2(2)or90%or
moreofthatsharelesstheamountreturnedintothe
reserve,wheretheprovisionsofArticle5havebeen
applied,hasbeenexhausted,thatMemberStateshall
proceedwithoutdelay,bynotifyingtheCommission,
todrawasecondshareequalto15%ofitsinitial
share,roundeduptothenextunitwhereappropriate ,
totheextentthattheamountinthereserveallows.
2.If,afteroneorotherofitsinitialshareshasbeen
exhausted,90%ormoreofthesecondsharedrawn
byaMemberStatehasbeenused,thatMemberState
shallproceedinthemannerspecifiedinparagraph 1
todrawathirdshareequalto7-5%ofitsinitial
share,roundeduptothenextunitwhereappropriate,
totheextentthattheamountinthereserveallows.
3.If,afteroneofitssecondshareshasbeen
exhausted,90%ormoreofthethirdsharedrawnby
aMemberStatehasbeenused,thatMemberState
shallproceedinthemannerspecifiedinparagraph 1,
todrawafourthshareequaltothethird.
ThisprocessshallbeapplieduntiIthereserveis
exhausted.4.Notwithstanding paragraphs 1,2and3,the
MemberStatesmayproceedtodrawsharessmaller
thanthosefixedinthoseparagraphsifthereisany
reasontobelievethatthosesharesmightnotbeused
up.TheyshallinformtheCommissionofthereasons
whichledthemtoapplythisparagraph.
Artide4
Eachoftheadditionalsharesdrawnpursuantto
Article3shallbevaliduntil31December1975.
Artide5
TheMemberStatesshallreturntothereserve,not
laterthan1October197g,theunusedportionoftheir
initialsharewhich,on15September 1>,'8,isin
excessof20%oftheinitialamount.Theymayreturn
alargerquantityiftherearereasonstobelievethat
suchquantitymightnotbeused.
TheMemberStatesshall,notlaterthan1October
1978,notifytheCommissionofthetotalimportsof
theproductsconcernedeffectedupto15September
1978inclusiveandchargedagainsttheCommunity
quotasand,whereappropriate ,theproportionoftheir
initialsharesthatisbeingreturnedtoeachreserve.
Artide6
TheCommissionshallkeepaccountoftheshares
openedbyMemberStatesinaccordancewithArticles
2and3andshallinformeachofthemoftheextent
towhichthereserveshavebeenusedassoonasit
receivesthenotifications .
TheCommissionshall,notlaterthan5October19^5.
notifyMemberStatesoftheamountineachreserve
afterthereturnofsharespursuanttoArticle5.
TheCommissionshallensurethatanydrawingwhich
usesupanyreserveislimitedtothebalanceavailable
andforthispurpose,shallspecifytheamountthereof
totheMemberStatewhichmakesthefinaldrawing.
Article7
1.TheMemberStatesshalltakeallappropriate
measurestoensureiii.it,whenadditionalsharesare
drawnpursuanttoArticle3,itispossibleforcharges
tobemade,withoutinterruption ,againsttheiraccu­
mulatedsharesoftheCommunitytariffquotas.
2.TheMemberStatesshallensurethatimporters
ofthesaidgoodsestablishedintheirterritoryhave
freeaccesstothesharesallocatedtothem.

-L-
ANNEXC
3.TheextenttowhichaMemberStatehasusedup
itssharesshallbedeterminedonthebasisofthe
importsoriginatinginPortugalasandwhenthegoods
areenteredforhomeuse.
Article8
AttheCommission'srequestMemberStatesshall
informitofimportsoftheproductsconcernedactu­
allychargedagainsttheirshares.Article9
TheMemberStatesandtheCommissionshallcoop­
eratecloselyinordertoensurethattheprovisionsc<
thisRegulationareobserved.
Article10
TheMemberStatesshallforwardtothe
Commission,withinthe45daysfollowi
thepublicationofthisRegulationin
theOfficialJournaloftheEuropean
Communities,acopyoraphotocopyof
theprovisionstheyhavemadeinorder
toapplythisRegulation.
Article11
ThisRegulationshallenterintoforceon1January
I97R.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels.
FortheCouncil
ThePresident

FINANCIAL STATEMENT
1.Budget tine concerned :Ch.12Art .120
2.LeqaL basis :Art .A3and 113 EEC Treaty
3.Title ofthe tariff measure :
Proposals forRegulations (EEC )ofthe Council opening ,allocating and
providing fortheadministration ofCommunity tariff quotas forport 1wines ,
Madeira wines andSetubal muscatel wines falling within subheading
ex22.05 ofthe CCT,originating inPortugal (1978 ).
4.Objectives :fulfilment ofcontractual obligation -Agreement EEC/Portugal -
5.Method ofcalculation :
-NoofCCT :ex22.05 CIIIand CIV(4tariff subheadings )
-Ouota volume :334,000 hltotal
-Quota duty rate :reduction of50%and60%
~Duty rate CCT :from 11UA/hlto14.4 UA/hl
6.Loss ofreceipts :1,800,000 UA