ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)1264
Vol.1973/0238

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
européenneetdelaCommunautéeuropéennedel'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiésconformément àl'article5dudit
règlement.
InaccordancewithCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
CommunityandtheEuropeanAtomicEnergyCommunity(OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
27.9.2003,p.1),thisfileisopentothepublic.Wherenecessary,classifieddocumentsinthis
filehavebeendeclassified inconformitywithArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
Februar1983überdieFreigabederhistorischen ArchivederEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung(EG,Euratom)Nr.1700/2003vom22.September2003
(ABI.L243vom27.9.2003,S.1),istdieseDateiderÖffentlichkeitzugänglich.Soweit
erforderlich,wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenanntenVerordnungfreigegeben.

COMMISSION OFTHEEURG.PEAN COMMUI^ÏTBBS
COM(73)1264final
Brussels,25July1973
PROPOSAL FORA
REGULATION (EEC)OFTHECOUNCIL
ontheopening,allocationandmeansofadministration ofa
Communitytariffquotaforprocessingworkinrelationto
certaintextileproductsundertheoutwardprocessing
arrangements oxtheCommunity
(submittedtotheCouncilbytheCommission)
COÏ'l(73;1264final

EXPLANATORY MEMORANDUM
1.InanArrangement concluded with theSwiss Federation on1August 1969 (l)i
theEuropean Economic Community undertook toopen anannual duty-free
Oommunity tariff quota of18?0000units ofaccount ofadded value ,on
thevarious kinds ofprocessing work forcertain textile products included
intheoutward processing traffic oftheCommunity toSwitzerland .
Under paragraph 8thereof ,theperiod forwhich ,theArrangement runs ,which
wasinitially twoyears from 1September 1969 «isautomatically extended
byimplied agreement forafurther period oftwoyears ,unless oneofthe
parties withdraws notlater than sixmonths before its date ofexpiry .
Ifneither party withdraws within theprescribed time-limit ,theArrangement
remains binding for afurther twoyears and theCommunity tariff quota for
which itprovided has tobeopened again for theperiod 1September 1973
to31August 197^-
2.Under the terms 6f ;the -memorandum agreed atthetime theArrangement was
made ,this annual tariff quota isdivided into three categories ofprocessing ,
based onthequantities recorded under theformer bilateral agreements (con­
cluded with Switzerland byFrance ,Germany andItaly )buttaking into account
thepossibilities ofextending ittotheBenelux countries .
Onthebasis ofthat division thetotal quota amount of1870000units of
account isappropriated asfollows .: :
(a)1650000units ofaccount forprocessing work onwoven fabrics falling
within Chapters 50to57oftheCommon Customs .Tariff ;
(l)Official Journal NoL2*f0 ,2*tDecember i960
•••/•

(b)143000units ofaccount fortwisting orthrowing ,re-twisting cabling ,
texturizing (whether ornotcombined with other processing work )of
yarns falling within Chapters 50to57oftheCommon Customs Tariff ;
(c)77'000units ofaccount forprocessing work onarticles falling within
'headings 58.04 ,58.05 ,58.0 ?,58.08 ,58.09and60.01 oftheCommon
Customs Tariff .
Attherequest oftheSwiss authorities and sothat the division ofthewhole
quota into thethree categories ofprocessing referred toabove should be
better related totheactual movement oftrade during thereference year
which served asthebasis forcalculating thetotal amount ofthequota ,it
wasdecided totransfer ,from 1September 1970 ,150000units ofaccount from
theamount allocated forprocessing operations onwoven fabrics falling
within Chapters 50to57oftheCommon Customs Tariff tothe 77000units
ofaccount setaside forprocessing work onarticles falling within headings
58.4 to60.01 oftheCommon Customs Tariff .These 150000units ofaccount
allocated toFrance foroperations onknitted orcrocheted fabric (processing
work under (c)above )hadbeen setoffagainst thequota-share allocated
tothat Member State when theamount setaside forprocessing work onwoven
fabrics was divided up,thedivision being asshown intheabove-mentioned
memorandum .
This division has just been re-examined atameeting ofthejoint EEC-
Switzerland Committee ,held atBerne on29andjOHay1973 »"During this
meeting itwas decided that ,asfrom 1September 1973 theamount appropriated ,
toprocessing work onarticles falling within headings 58.04 to60.01 ofthe
! •
Common Customs Tariff should beincreased from 227 000 units ofaccount to
377000units ofaccount ,without anycorresponding increase inthetotal
amount oftheCommunity Tariff quota of1870000units ofaccount .This
additional amount of150000 istobeapportioned asfollows .

-10000units ofaccount tothe amount of30000 units ofaccount allocated
totheBenelux countries for all categories ofprocessing work ;
-120 000 units ofaccount tothe amount of900 000 units ofaccount
allocated tothe Federal Republic ofGermany forprocessing work onwoven
fabrics ;
-20000 units ofaccount tothe amount of120 000 units of .account
allocated .totheFederal Eepublic ofGermany forprocessing work onyarns .
Theadditional amount of150000units ofaccount thus apportioned will
beallocated foroperations tobecarried outonarticles falling within
theabovementioned tariff ,headings asfollows :
Germany :80000units ofaccount (quota increased from 50000to
130000units ofaccount )
France :20000units ofaccount (quota increased from 150000to
170000units ofaccount )
Community reserve :20000units ofaccount (amount "increased *"from ..
7000 to57000units ofaccount ).
t.
This allocation among theMember States ofe?Te different amounts appropxated
totheth^ee categories ofprocessing work raises adifficulty which was
envisaged ataconsultation meeting organized under theauspices ofthe
Commission andAcid during 19^9 with .experts from alltheMember States .
Under this allokesiion itwould.be possible forsome Member States (Italy ,
Netherlands ,Belgium andLuxembourg )toapportion allorpart oftheir
share ,according totheir choice ,,toamong twoorthree categories of
processing work ,but thequotas setaside foreach section ofprocessing
' • \ •
work areinsufficient toallow forsuch achoice ,whether itbebecause the
total ,allocation for these Member States uses some ofthe reserve for the
first category ofprocessing work (ifthey intend tobenefit from this
alone ),orbecause such total exceeds thequotas fixed forthesecond and
third categories ofprocessing work (ifthey prefer tobenefit from these
alone ).

However ,after consultation with theMember States ,itappears that such
asituation should notraise anydifficulties inpractice .This explains
theabsence ofanyprovision relating tothis problem intheproposal fora
Regulation annexed hereto ,since theCommission ,together with theMember
States ,istoensure that theallocation ofprocessing work falling within
thequota isrespected ,and that adequate provisions aretaken ifthe
slightest difficulty should belikely toarise .
TheCommunity tariff quota provided forinthis Arrangement waslast opened
byCouncil Regulation (EEC)No229l/?2(l)of31October 1972 ,tocover the
period from 1September 1972 ro31August 1973 -
Theonly purpose oftheproposed regulation annexed hereto istherefore to
open thesame ,quota fortheperiod from 1September 1973 to31August 197^»
and todivide itbetyreeii theMember States according tofactors shown inthe
Memorandum totheArrangement referred toabove ,taking into account the
amended allocations explained under 3and^above andtheneed toprovide fo
theparticipation ofthenewMember States inthedividing ofthetariff
quota .
Itshould however benoted inthis connection ,that inrespect oftextile
products thenewMember States donothave totake the first step towards
bringing their customs duties into line with those oftheCommon Customs
Tariff until 1January 197 2**Before that date theopening ofaCommunity
tariff quota ,does not therefore oblige these Member States tochange their
customs tariffs for third countries nor totake part intheallocation
oftheCommunity tariff quota inquestion .
(1)OJNoL2b8of1November 1972 ,page 1

According totheinformation gathered atthe above mentioned meeting ofthe
EEC-Switzerland Joint Committee itappears that thenew Member States only
play avery small part ,oreven nopart at .all ,intheoutward processing
ofproducts inthe textile sector .Inorder tocover anyneeds which might
arise either inIreland ,Denmark orintheUnited Kingdom ,inparticular
for those cases not covered bytheAgreeement concluded on22.July 1972
between theCommunity andSwitzerland ,provision should bemade for ithese
Member States tobeable todraw anadequate quota share from theCommunity
reserve when required .
Asregards themeans ofadministering thetariff quota concerned ,consula -
tion meetings were organized under theauspices oftheCommission on9April
and 15May 1970 ,inorder tocontinue with adetailed examination ofthe
difficulties which Germany andthen France pointed out inthis field .It
became apparent during these meetings that theadministrative system "as
thegoods arere.-imported "which wasadopted intheabove-mentioned Regula­
tion fortheperiod from 1September 1969.to 31August 1970 ,could notbe
continued assuch forthefollowing quota .period because ofthedifficulties
involved inthe two Member States abovementioned .The main difficulties
indicated are inparticular theexporters 'lack ofcertainty asregards
their eligibility tobenefit from thetariff advantages v/henre-importing
goods after theprocessing work ,andalso themarked inadequacy ofthequota
amounts ,due tothe fact that thebenefit ofthe customs facilities hasbeen
extended toanumber ofpersons and firms which did .not benefit under the
former bilateral Agreements ., ,.,f
Ithasalso become apparent that theother single administrative system which
canbeapplied inallMember States ,that ofprior -allocation ,could not
beadopted either ,atthe outset ,since insome Member States ,there isno
precedent which could serve asabasis for the allocation ofthe national
share inthe quota between thevarious consumers .

Before preparing toputadifferent common administration system into effect ,
ithadbeen decided that ,forthequota period from 1September 1970 to31
August 1971 1theMember States should administer their initial andadditional
shares inthequota according totheir rules ontariff quotas ,soastogain
additional experience ,and onthebasis ofthis establish "aCommon administra ­
tion system for1September 1971 which would beable tosolve all the diffi­
culties which hadarisen inthat field .Because therequest formulated by
thetwoMember States abovementioned waswell-founded ,theCommission has
adopted this formula .
I
When this quota wasopened fortheperiod from 1September 1971 to31August
1972 ,itwasnot thought that sufficient would begained during the adaptatioi
period toestablish asingle administration system forthis quota ,which is
ofanunusual nature ,andtheexperimental period wasextended until 31Augusi
1972 .
This problem wasagain thesubject ofdiscussions attheconsultation meetin ?
on26May1972 where itappeared that Germany ,oneofthemain users ofthis
quota among theMember States ,uses thesystem ofprior allocation ,for
reasons which had already been put forward ,and that there had notbeen any
major difficulties inapplying it.France andtheBenelux countries however
use asystem ofauthorizations which aregranted before thegoods tobe
processed areexported ,which therefore falls within thesystem ofprior
allocation .Moreover ifItaly orone ofthenewMember States should apply
theprovisions ofthis Regulation intherelatively near future ,itdoes not
appear that theutilization ofasystem ofprior allocation ,similar tothose
applied inthe other Member States could cause any difficulties .

-7-
This iswhy ithas been proposed toadminister the Community tariff quota
inquestion ,forthequota period from 1September 1973 to31August 197^
according tothe system ofprior allocation which had already been adopted
forthepreceding quota period .
8.Inaddition ,inorder toensure ihat thetariff quota inquestion isused
tothefullest extent possible ,whilst notrendering theinitial quotas
useless ,theproposal foraRegulation annexed hereto provides that the
maximum amount returned tothe reserve shall henceforth bereduced to
thenormal level of20%.

PROPOSAL FOR A
REGULATION (EEC).OPTHECOUNCIL
ontheopening ,allocation andmeans ofadministration
ofaCommunity tariff quota forprocessing work in
relation tocertain textile products under the
outward processing arrangements ■oftheCommunity
THE COUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Article 113 thereof ;
Having regard totheproposal from the Commission ;
Whereas on1August 19&9 "theCommunity concluded anArrangement with
Switzerland ontheprocessing traffic ,intextiles ;whereas under that
Arrangement theCommunity undertook toopen ,anannual Community duty-free
tariff quota on1September every year amounting toatotal of1870000
units ofaccount ofadded value forprocessed goods ,divided asfollows :
(a)1650000units ofaccount forprocessing work onwoven fabrics falling
within Chapters 50to57oftheCommon Customs Tariff ;
(b)1^3.000 units ofaccount forthetwisting orthrowing ,cabling ,
texturizing (whether ornotcombined with other processing works )
ofyarns falling within Chapters 50to57oftheCommon Customs Tariff ;
(c)77000units ofaccount forprocessing work onarticles falling within
heading Nos58.04 ,58.05,58.07 ,58.08 ,58.09 and60.01 oftheCommon
Customs Tariff ;
Whereas inorder that thedivision ofthewhole quota into thethree catego­
ries referred toabove shall correspond more exactly with theactual movement
oftrade during thereference year ithasbeen decided byjoint agreement to

raise to377 000 units ofaccount the amount of77000 units ofaccount set
arise fortheprocessing ofarticles falling within certain tariff headings
intheCommon Customs Tariff between 58-04 and60.01 bylevying atotal sum
of300 000units ofaccount onthe share ofthequota granted to Benelux
forallprocessing operations andalso onthe shares ofthequota granted
toother Member States for theprocessing oftextile fabrics andyarns
falling under Chapters 50to57oftheCommon Customs Tariff ;whereas the
Community .tariff quota inquestion should beopened fortheperiod 1September
1973 to31August 197^according totheprovisions laid down intheArrange­
ment specified above ,and inamendments toit;
Whereas ,asregards thetextile products referred tointheabovementioned
Arrangement ,thenewMember States donot have totake thefirst step towards
bringing the duties intheir customs tariffs into line with those inthe
Common Customs Tariff until 1January 197^5 whereas before that date the
opening ofaCommunity tariff quota does not oblige these Member States to '
change their customs tariffs forthird countries nor totake part inthe
allocation oftheCommunity tariff quota inquestion ;whereas different
systems should therefore beprovided for theMember States oftheCommunity as
originally constituted and for thenew Member States ; 1
Whereas ,asregards theCommunity asoriginally constituted inparticular :
-equal and continuous access tothequota ofall those concerned with this
traffic intheCommunity must beguaranteed and therate provided for inthis
quota must beapplied ,without interruption until the quota hasbeen used up.,t
allgoods reimported into any oftheMember States which have received one
orother ofthetreatments listed above ;whereas ,inthelight ofthe
principles outlines above ,Community tariff arrangement based onanalloca­
tion among theMember States would seem topreserve theCommunity nature

-3-
ofthequota ;whereas ,therefore ,itseems appropriate tomake thealloca­
tion taking into account thequantities recorded under theprevious bilateral
agreements ,without prejudicing the opportunities ofMember States which
previously were not involved inthis traffic ;whereas tosafeguard the
Community nature ofthequota inquestion ,provision should bemade tomeet
requirements which may arise inthese Member States inthe future ;whereas
inexceptional cases ,thesystem described inArticle 3maytake this factor
into account where aninitial share ofthequota isnotallocated ;
-Whereas totake account ,offuture trenis inthe traffic inquestion inthe
various Member States ,.thetotal quota volume of18?0000units ofaccount
6hould bedivided into two tranches ,the first being allocated among the
Member States and the second part held asareserve tocover atalater date
requirements ofMember States whohave .used uptheir initial share ofthe
quota ,andrequirements which mayarise incertain Member States processing
work forwhich aninitial share ofthe -quota wasnot allocated ;whereas in
order togive theparties concerned ineach Member States some degree of
certainty itwould beappropriate tofix the first tranche oftheCommunity
tariff quota atarelatively high level ,that is90%oftheamount ofthe
quota ;whereas thereserve (amounting to10%)should beappropriated to
.each category ofwork pursuant tothearrangement inquestion ;
-Whereas theMember States' initial shares maybeused upfairly rapidly ;
whereas ,therefore ,"toavoid disruption ofsupplies anyMember State which
hasalmost used uponeofitsinitial shares must draw asupplementary share
-from thecorresponding reserve ;whereas this must bedone byeach Member
îtsState aseach oneof/supplementary shares isalmost used up,andasmany times
asthereserve allows ;whereas theinitial andsupplementary shares must be
valid until the endofthequota period ;whereas this form ofadministration
requires close collaboration between theMember States and theCommission ,
•••/•••

>
_U-
and theCommission must beinaposition tofollow theextent towhich the
quota volume hasbeen used upand inform theMember States thereof ;
1
-whereas if,atagiven date during the quota period ,aconsiderable
quantity ofone orother ofthe initial shares isleft over inaMember
State/return Ua^signifiant proportion tothecorresponding reserve ,to
prevent apart oftheCommunity tariff quota from remaining unused inone
Member State when itcould beused inothers ;
-Whereas since theKingdom ofBelgium ,theKingdom oftheNetherlands and
theGrand Duchy ofLuxembourg arejointly represented bytheBenelux
Economic Union ,anymeasure concerning theadministration ofshares
allocated tothat Economic Union may becarried outbyoneofitsMembers ;
I ;
Whereas asregards thenewMember States mparticular :
-during thelast fewyears itseems that these Member States have only
been involved toasmall extent ifatall inoutward processing traffic
inthetextile sector ;whereas theCommunity nature ofthe ;tariff quota
inquestion should besafeguarded bymaking provision foranyrequirements
which mayarise inthese Member States after 1January 197^5 whereas these
Member States must therefore beenabled after this date todraw adequate
shares from theCommunity reserves ;
-Whereas the duties for the quota are to -befixed ,bythenewMember States ;
inaccordance with theprovisions oftheAct annexed totheTreaty concer­
ning theaccession ,ofnewMember States totheEuropean Economic Community
and totheEuropean Atomic Energy Community signed on22January 1972 ,and
inparticular Article 39 (1)thereof ;
(1)OJNoL73»27March 1972 ,p.22

-5-
-Whereas equal and continuous access tothe quota should beensured forall
persons concerned insuch processing traffic andtherate ofduty for the
quota should beapplied consistently toallre-imports into those Member
States ofproducts onwhich one orother oftheaforementioned types of
processing work ,have been carried outuntil thequota isused up;
HAS ADOPTED THIS REGULATION :
Article 1
1.Asfrom 1September 1973 anduntil 31August 197t ->aCommunity tariff quota
of1870000units ofaccount ofvalue added shall beopened intheEuropean
Economic Community inrespect ofgoods resulting from theprocessing work
asprovided for intheArrangement with Switzerland onprocessing traffic
intextiles .Such quota shall bedivided asfollows :
(a)1370000units ofaccount forprocessing work onwoven fabrics falling
within Chapters 50to57oftheCommon Customs Tariff ;
(b)123000units ofaccount fortwisting orthrowing ,cabling ,texturizing
(whether combined with "other processing work )ofyarns falling within
Chapters 50to57ofthe Common Customs Tariff ;'
(c)377000units ofaccount forprocessing work onarticles falling within
thefollowing headings oftheCommon Customs Tariff :
58.0^(Woven pile fabrics andchenille fabrics (other than terry
towelling orsimilar terry fabrics ofcotton falling within
heading No55»08 andfabrics falling within heading No58.05);
58.05 (Narrow woven fabrics ,andnarrow fabrics (bolduc )consisting of
warp without weft assembled bymeans ofanadhesive ,other than
goods falling within heading No58.05);-
•••/•••

-6-
58.07 (Chenille yarn (including flock chenille yarn ),gimped yard
(other than metallized yarn ofheading No52.01 andgimped
horsehair yarn );braids andornamental trimmings inthepiece ;
tassels ,pompoms andthelike );
58«08 (tulle andother netfabrics (butnotincluding woven ,knitted
orcrocheted fabrics ),plain );
58.09 (tulle andother netfabrics (butnotincluding woven ,knitted
orcrocheted fabrics ),figured ;hand ormechanically made lace ,
inthepiece ,instrips orinmotifs );
60.01 (knitted orcrocheted fabric ,notelastic norrubberized ).
2.Forthepurposes ofthis Regulation ,
(a)"processing work "means :
-forthepurposes ofparagraph 1(a)and (c):bleaching ,dyeing ,
printing flocking ,impregnating ,dressing andother work which
changes theappearance orquality ofthegoods ,without ,however ,
changing their nature ;
-forthepurposes ofparagraph 1(b):twisting orthrowing ,cabling
andtexturizing ,whether ornot combined with reeling ,dyeing oroth
work which changes theappearance ,quality orfinish ofthegoods ,
without however changing their nature .
(b)"added value "means sthedifference between thevalue forcustoms
purposes asdefined byRegulation (EEC)No803/681andthevalue for
customs purposes asitwould beiftheproducts were ,imported inthe
same state inwhich they were exported .
3.Each ofthequota amounts referred toinparagraph 1shall besubdivided
into twotranches ;thefirst ,ofapproximately 90 shall beallocated
among theMember States inaccordance with Article 3}thesecond ,of
approximately 10$,shall constitute theCommunity reserve .
•■•/••m
(1)OJNoL1^8 ,28July 1968 ,p.1

-7-
4..The Community tariff quota shall beadministered inaccordance with
thefollowing provisions :
Provisions applying tothe Community asoriginally constituted
Article 2
The Common Customs Tariff duties shall betotally suspended uptothe
tariff quota referred toinArticle 1(l).
Article 3 .
1.The first tranche ofeach ofthe quota amounts referred toinArticle 1
(l)shall beallocated among theMember States ;thequotas foreach
Member State subject toArticle 7»shall "bevalid from 1September 1973
to31August 197^,shall beasfollows :
(a)Germany :
1010 000units ofaccount ,divided asfollows :
-780000units ofaccount forprocessing work onwoven fabrics
falling within Chapters 50to57ofthe Common Customs Tariff ;
-100 000units ofaccount for twisting orthrowing ,cabling ,
texturizing (whether combined with other processing work )of
yarns falling within Chapters 50to57oftheCommon Customs
Tariff ;
. . -130 000units ofaccount forprocessing work onarticles falling
within headings 58.0 ^,58.05,58.07 ,58.08,58.09and60.01 of
theCommon Customs Tariff ;
(b)France :
600 000units ofaccount ,divided asfollows :
-^30000units ofaccount forprocessing work onfabrics falling
within Chapters 50to57oftheCommon Customs Tariff ;
-170000units ofaccount forprocessing work onarticles falling
within headings 58.0 ^,58.05,58.07 ,58.08,58.09and60.01 ofthe
Common Customs Tariff ;
•••/•••

(c)Italy: ]
20000unitsofaccount,i.e.halffortwistingorthrowing,cabling^
texturizing (whethercombinedwithotherprocessingwork)ofyarns
fallingwithinChapters50to57oftheCommonCustomsTariff,and
halfforprocessingworkonarticlesfallingwithinheadings58.04,
58.05,58.07,58.08,58.09and60.01oftheCommonCustomsTariff:
(d)Bénélux:
20000unitsofaccountforprocessingworkonthreadsandwoven j
fabricsfallingwithinChapters50to57orforarticlesfalling
withinheadings58.04,58.05,58.07,58.08,58.09and60.01ofthe
CommonCustomsTariff. .. <
2.ThesecondpartofeachofthequotaamountsreferredtoinArticle1(l),
-150000,13000and57000unitsofaccountrespectively -shall
constitutetheCommunityreserve.
Article4
IftheneedarisesinFrancefortheprocessing workreferredtoinArticle
1(1)(b),thatMemberStateshalldrawasufficientquotafromthereserve,
totheextent,thatthereservepermits.
1.If90%.ormoreofoneoftheinitialquotasofaMemberState-asfixed
inArticle3(1)»orofthatquotaminustheportionreturnedtothe
corresponding reservewhereArticle7isapplied-hasbeenusedup,
thatMemberStateshallwithoutdelay,bynotifyingtheCommission,
drawasecondquotaequalto10%oftheinitialquota,totheextent
thatthecorresponding reserveissufficient.

-9-
2.Ifafter one orother ofthese initial quotas has been used up,a
Member State uses 90%ormore ofthesecond quota drawn byaMember
State hasbeen used up,that Member State shall inaccordance with
paragraph 1draw athird quota equal to5%ofitsinitial quota ,
tothe extent that the corresponding reserve issufficient .
3.If,after oneorother ofthesecond quotas hasbeen used up,aMember
State uses up90%ormore ofthethird quota drawn byaMember State
hasbeen used up,that Member State shall inaccordance with paragraph 1,
drawafourth quota equal/tfiethird .
■This procedure "shall apply byanalogy until each reserve isused up.
k.Bywayofderogation from paragraphs 1to3»aMember State maydraw
quotas lower than those fixed inthose paragraphs ifthere are reasons
forconsidering that those fixed maynot beused up.Itshall inform
theCommission ofitsreasons forapplying this paragraph .
Article 6
Supplementary quotas drawn pursuant toArticle 5shall bevalid until
31August 197^.
Article 7
AMember State which by15May197^hasnotused uponeofitsinitial
quotas ,asfixed byArticle 3(1)orasresulting from theapplication of
Article Jf,shall return tothecorresponding reserve notlater than 10June .
197^theunused portion ofsuch share exceeding 20%oftheinitial amount .
Itmayreturn agreater portion ifthere aregrounds forbelieving that
itmaynotbeused up.
Member States shall inform theCommission notlater than 10June 197^ofall
products concerned which have been re-imported upto15Mayinclusive and
charged against theCommunity quota and ,where appropriate ,theportion of
each oftheir initial shares which they have paid back into thecorresponding
reserve .
•••/•••

-ΙΟ-
ι
Article 8
TheCommission shall keepanaccount ofthequota amounts opened bythe |
Member Stetes pursuant toArticle ^and5andshall ,assoon asinforma - I
tion reaches it,inform each state oftheextent towhich thereserves
have been used up.
TheCommission shall ,notlater than 15June 197k ,inform therespective
,State ,Member /ofthe amounts still inthe reserves after returns have been
made pursuant toArticle 7.
.. ι
The Commission shall ensure that drawing which used upareserve islimited
tothebalance available and tothis •endshall specify theamount thereof
totheMember State making thelast drawing .
Article 9
The Member States shall take allmeasures necessary toensure that there
isuninterrupted access totheir cumulative shares ofCommunity tariff j
quota when they open additional quotas drawn pursuant toArticle 5-
Article 10
1.TheMember States shall administer their quotas bythesystem ofprior |
allocation .They/lnl&^e allpersons involved intheprocessing traffic' ;
intheir territory have free access tothequotas allocated tothem .
shall be
2.Theextent towhich Member States have used uptheir quota shares /deter­
mined onthebasis oftheadded values admitted upon re-importation of
theproducts concerned when they arepresented forcustoms clearance
under thedeclaration forconsumption .
Article 11
TheMember States shall regularly inform theCommission oftheproducts
concerned actually counted against their quotas .

Article 12
Member States and the Commission shall co-operate closely toensure that
this Regulation isrespected .
Provisions relating tothe new Member States
Article 13
1.Ifneeds arise inthenewMember States ,asfrom 1January 197 ^-,inrespect
oftheprocessing work referred under Article 1(l),these States shall
beallocated anadequate quota from the corresponding Community reserve
established under paragraph 2ofthe same Article ,tothe extent that
the balance available insuch reserve issufficient .
2.ThenewMember States shall apply atariff duty onthe quotas thus
allocated from thereserve ,inaccordance with therelevant provisions
oftheAct concerning the Conditions ofAccession and theAdjustments to
the Treaties .
Article 14
Articles 10,11and12ofthis Regulation shall apply tothenewMember
States .
Article 15
This Regulation shall enter into force on1September 1973 *
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels , BytheCouncil ,
The President