ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)155
Vol.1978/0051

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)155final
Brussels ,13April1978.
Proposal fora
COUNCIL REGULATION (EEC )
ontheopening ,allocating andproviding fortheadministration of
aCommunity tariffquotaforsherryfallingwithinheading Noex22.05
oftheCommonCustomsTariff,originating inSpain
(submitted totheCouncil "bytheCommission )
COM(78)155final

EXPLANATORY MEMORANDUM
When theAqri?ement between theEECandSpain hasbeen signed
in197G ,theCommunity bind oneself togrant apreferential
tariff regime theimportations intheCommunity ofcertain
wines with orig -ti spa-jn. tQsatisfy tothis engagement
theCommunity haso^er^d each ye-^r twotariff quotas at
reduced duty rates :
(a)sherry ,wines
(i)incontainers oftwoLitres oi iess
40000hiatCCTduty reduced by£Q%-
(ii)incontainers ofmore than ,two litr .»s
310000hiatCCTduty reduced by50%;
itbeing understood that trhese wines would remain subject to
theprovisions governing thecommon organization ofthemarket
inwine andespecially tothe reference price which isapplicable
tothese wines .
However /this regime hasbeen provided only fortheimportation
ofthese products into the sixoriginal Member States ,whereas
the three newMember States have applied different regimes .
Inconformity with theActofAccession imports ofthese products
into thenewMember States aresubject ,since 1July 1977 ,to
thecustoms duties inscrited into -theCommon Customs Tariff .
\
Inthis situation ,auniform regime ofimportation should be
established .Hence the forement ioned quota volumes should be
increased insuch amanner astotake account ofthe traditional
quantities imported inthe newMember States .

This leads tQanincrease to
-108000hectolitres and 685000hectolitres forSherry-wines .
Because ofdifficulties encountered infixing thereference price
which -inprinciple -should have been applicable asfrom 1January
1978 ,theCommunity hasopened ,byRegulations (EEC)Nos3012 /77
and 532 /78,four Community tariff quotas .
These quotas cover theperiod between 1January and30April J978 /
and amount intotal to36000 hiand 228 340 hi .
Inorder tocomply with theCommunitites obligation toSpain ,
itisnecessary toopen tariff quotas forthese products for
theperiod 1May to31December 1978 forvolumes amounting to
respectively 72000 hland 456 660 hl.
/
This issubject oftheannexed proposals .
3.These Regulation provide for thesplitting upofthetariff volumes
into twoparts ,ofwhich thefirst will beallocated among the
Member States asquota share and the second will bekept asareserve .
Intheabsence ofCommunity statistics ,the initial quota shares
have been calculated onthe basis ofthe most recent statistics on
Spanish exports over arepresentative period andonMember States'
forecasts .
Spanish statistics canbeconsidered togive arough picture of
Community imports oftherelevant products .
4.Because ofthe inherent particularities intrade inthese wines
which ,additionaly ,aredifferent from oneMember State toanother ,
theprovisions oftheRegulation ,exceptionnally ,donot laydown
acommon method ofadministration .
Annex :1proposai for aCouncil Regulation .

Proposalof
COUNCIL REGULATION (EEC)
ontheopening ,allocating andproviding fortheadministration ofaCommu -;
nitytariffquotaforsherry,fallingwithinheadingNoex22.05oftheCommon
CustomsTariff,originating inSpain ='''
THECOUNCIL OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle
113thereof ,
HavingregardtotheproposalfromtheCommission ,
WhereasonthesigningoftheAgreementbetween
theEuropeanEconomicCommunity andSpain(')on
29June1970,theCommunity undertooktogrant
preferentialtariffarrangements forimportsintothe
CommunityofcertainwinesoriginatinginSpain,in
particularsherry;whereasinordertosatisfythis
undertaking ,theCommunity hasopenedeachyear
twotariffquotas,namely: -
■–40000hectolitresatadutyrateof40%ofthe
CommonCustomsTariffduties,forsherryin
containersholdingtwolitresorless,fallingwithin
subheadings ex22.05CIIIa)1andex22.05CIV -
a)1,originatinginSpainand
–210000hectolitresatadutyrateof50%ofthe
CommonCustomsTariffduties,forsherryin
containersholdingmorethantwolitres,falling
withinsubheadings ex22.05CIIIb)1andex
22.05CIVb)1,originatinginSpain;
Whereasthesepreferentialtariffarrangements were
laiddownonlyforimportsoftheseproductsintothe
MemberStatesoftheCommunity asoriginallyconsti- -
tuted;whereas,undertheActofAccession ,importa­
tionoftheseproductsintothethree>newMember
StatesaresubjecttoCommonCustomsTariffduties
witheffectfrom1July1977;whereastheimport
arrangements fortheseproductsshouldbeuniform
throughouttheCommunity ;whereasthereforethe _'
aforementioned annualquotasshouldbeincreasedto
108000hectolitresand685000hectolitresrespec­
tively;whereasj-,yreasonofspecialcircumstances theCommunityhas
alreadyopenedCommunitytariffquotasbyRegulations (EEC)Nos3012/77
and532/78(4)fortheglobalvolumesof36000hectoliters and228340
hectoliters respectively fortheperiod1Januaryto30April1978;
whereastariffquotasof72000and456660hectoliters respectively
shouldthusbeopenedforthesaidwinesfortheperiod .1May
to31December1978;
(2)0JNoL182,16.8.1970,p.2
(3)0JNoL355,31.12.1977,p.27
(4)0JNoL74,16.3.1978,p.1.

Whereas £orparticular reasons inherent inthe .method ofproduction and–distribution oftheproductconcerned ,theimportofthesewinesintothe
Coiuimnity isforthegreaterpartcarriedoutinthelastmonths_of _each
year;whereasasaconsequence thevolumeofthequotasopened.forthe
period 1Januaryto30April1978havenot"beencompletely usedup;whereas
bywayofexceptionitisnecessarytoprovidefortheresidualamounts ,leftoverfromthisperiodtohetakenintoconsideration to"beusedduring .the
periodofvalidityofthisRegulation ;
Whereasthesewinesremainsubjecttotheprovisions
governing thecommonorganization ofthemarketin
wine;whereasinclusion intheCommunity tariff
quotashouldbesubjecttoproduction ofmovement
certificate A.E.1andacertificate ofdesignation or
originasprovided forinRegulation (EEC)No
1120/75P); .
Whereas/CouncilRegulation (EEC)No2506/76of29
September 1975layingdownspecialrulesforthe
importation ofproductsinthewine-growing sector
originating incertainthirdcountries(^/introduced
theideaofafree-at-frontierreferenceprice,beingthe
'referencepricelesscustomsdutiesactuallylevied;
Whereasitisinparticular necessary toensuretoall
Community importers equalanduninterrupted access
totheabovementioned quotasanduninterrupted
application ofthe'rateslaiddownforthesequotasto
allimportsoftheproductsconcerned intoallMember
Statesuntilthequotashavebeenusedup;whereas,
havingregardtotheprinciples mentioned ,above,the
Community natureofthequotascanberespectedby
allocating theCommunity tariffquotasamongthe
MemberStates;whereas,inordertoreflectmostaccu­
ratelytheactualdevelopment ofthemarketinthe
productsconcerned ,suchallocation shouldbein
proportion totheneedsoftheMember States,
assessedbyreferencetoboththestatisticsofeach
State'simportsofthesaidproductsfromSpainovera
representative periodandtheeconomic outlook .for
thequotaperiodconcerned ;
WhereasavailableCommunity statisticsgivenoinfor­
mationonthesituationofsherryonthemarkets;
whereas,however,Spanishstatisticsforexportsof
theseproductstotheCommunity duringthelastfew
yearscanbeconsidered toreflectapproximately the
situationofCommunity imports;whereasonthis
basisthecorresponding importsbyeachofthe
MemberStatesduringthelastthreeyearsrepresent
thefollowingpercentages oftheimportsintothe
Community fromSpainoftheproductsconcerned :fSheriy-wines which enter thegeog- .
raphic territory oftheCommunity
from1May1978 shall observe the
reference prices applicable tothem
and also the rules of
bywhichis
(1)OJNoL111,30.4.1975 »P*19
(2)OJNoL256,2.1.1976 ,P-2

-3-
1974 1976
Sherry:
–incontainers holdingtwolitresorless:y
Bénélux 45-5 49-5 62-5
Denmark 3-7 5-2 5-7
Germany . -12-1 120 13-4
France 0-4 0-3 0-3
Ireland 2-8 1-3 1-0
Italy 4-9 ■4 1-2
UnitedKingdom 30-6 30-3 ,15-8
–incontainers holdingmorethantwolitres:
Bénélux - 25-7 39-9 35-3
Denmark 3-2 2-9 5-1
Germany 2-4 2-9 3-4
France 0-1 0-1 0-1
Ireland I1-0 0-7 0-9
Italy 0-0 0-0 0-0
UnitedKingdom . J67-6 ' 53-5 55-2
Whereas ,inviewofthesefactorsandoftheestimates
submitted bycertainMemberStates,initialquota
sharesmaybefixedapproximately atthefollowing
percentages :
MemberStatesSherry>ncontainers holding
cwolitres
orlessmorethan
twolitres
Bénélux 53-61 33-46
Denmark 5-05 3-83
Germany 13-20 2-99
France 0-31 0-03
Ireland 206 0-78
Italy• I2-11 0-01
UnitedKingdom 23-66 58-90
whereas,inordertotakeintoaccountimporttrends
fortheproductsconcerned inthedifferentMember
States,eachofthequotaamountsshouldbedivided
intotwotranches,thefirsttranchebeingallocated
amongtheMemberStatesandthesecondforminga
reserveintendedultimately tocovertherequirements
oftheMemberStateswhichhaveuseduptheirinitial
quotashares;whereas,inordertoensureacertain
degreeofsecuritytoimporters ineachMemberState,
thefirstinstalment oftheCommunity quotasshould
bedetermined atalevelwhich,underpresentcircum­
stances,maybeabout90%ofeachofthequota
amounts ;
WhereastheinitialquotasharesoftheMemberStates
maybeusedupatdifferenttimes;whereas,inordertotakethisfactintoaccountandavoidanybreakin
continuity ,itisimportant thatanyMemberState
havingusedupalmostthewholeofoneofitsinitial
quotasharesshoulddrawanadditional quotashare
fromthecorresponding reserve;whereasthismustbe
donebyeachMemberStateasandwheneachofits
additional ,quotasharesisalmostentirelyusedup,and
repeatedasmanytimesasthereserveallows;whereas
theinitialandadditional quotasharesmustbeavail­
ableforuseuntiltheendofthequotaperiod;
whereasthismethodofadministration callsforclose
cooperation betweenMemberStatesandtheCommis­
sion,whichmust,inparticular ,beabletoobservethe
extenttowhichthequotaamountsareusedand
informMemberStatesthereof;
Whereas sincetheKingdom ofBelgium,the
KingdomoftheNetherlands andtheGrandDuchyof
Luxembourg areunitedinandrepresented bythe
BeneluxEconomic Unionanymeasureconcerning
theadministration ofthequotasharesallocatedto
thateconomic unionmaybecarriedoutbyanyone
ofitsmembers ,
HASADOPTED THISREGULATION :
Article 1
-^December
1.From1Mayuntil31/1978,the
CommonCustomsTariffdutiesinrespectofthesher­
riesmentioned beloworiginating inSpainshallbe
partiallysuspended atthelevelsorwithinthelimitsof
theCommunity tariffquotasindicated foreachof
them:-

-L-
CCTKtMlintNoDc»erlptionR«(c
.{inujVhl)Quotavolume
(inhl)
ex22.05CIIIa)1
ex22.05CIVa)1
ex22.05CIIIb)1
ex22.05CIVb)1sherry
sherry
sherry
sherry5-4
5-8
5-5
6-0|72000
456000
JProtocolonthedefinitionoftheconceptof'originating products'andon
methodsofadministrative cooperation ,annexedtotheAgreementbetweentheEuropean
EconomicCommunity andSpain,shallbeapplicable .
3:..The'nc'usi0nofsherryintheCommunity tariffquotasreferredtoinparagraph 1
shallbeconditionaluponproductionofamovementcertificateA.E.Iandacertificateof
(WgnanonoforiginasprovidedforinRegulation (EEC)No1120/75andendorsedhytneSpanishcustomsauthorities .
TheSherry-wines enteringthegeographicterritoryoftheCommunityfrom1hay1978shallmaddition,inordertobenefitfromthesetariffquotas,observethereferencepricesapplicable tothemandalsopricesnotlessthanthefree-at-frontierreferencepricesreferredtoinRegulation (EEC)No2506/75andsubsequenttextswhichapplythereto.
Artide2
1.ThequotaslaiddowninArticle 1shallbedividedintotwotranches .
2.AfirsttrancheofeachquotashallbeallocatedamongtheMemberStates;the
respectiveshareswhichshallbevaliduntil31/1978,shallbeasfollows:""December
iSherry {ailingwithinsubheadings :
Member States ex22.05CIIIa)1 ex22.05CIIIb)1
and and
Iex22.05CIVa)1 ex22.05CIVb)1
Beneux 34740. I137520
Denmark ' 3270 15740
Germany _ 8560 12290
France ! 200 120
Ireland I 1330 3210
Italy I 1370 40
UnitedKingdom I15330 242080
– Total !
ι64800 411000
3«Thesharesfixedinparagraph 2shallbeincreased byanypart
ofthesharesallocated underRegulations (EEC)Nos3012/77and532/78remaining on30April1978.
MemberStatesshallnotifytheCommission notlaterthan
15Kay1978ofanypartofthesharesallocated tothemunder
theabove-mentioned Regulations remaining on30April1978.

4.Thesecondinstalment ofeachquota,i.e.7200and45660hectolitres respectively ,shallformthecorresponding reservetowhichanypartofthereservessetupunderArticle 2of
Regulations (EEC)Nos3012/77and532/78remaining on30April
1978shallbeadded,irrespective ofArticle5.
Article3
1.If90%ormoreofoneoftheinitialsharesofa
MemberState,aslaiddowninArticle2(2),hasbeen
exhausted ,thatMemberStateshallproceedwithout
delay,bynotifyingtheCommission ,todrawasecond
shareequalto10%ofitsinitialshare,roundedupto
thenextunitwhereappropriate ,totheextentthatthe
amountinthereserveallows.
2.If,afteroneorotherofitsinitialshareshave
beenexhausted ,90%ormoreofthesecondshare
drawnbyaMemberStatehasbeenused,thatMember
Stateshallproceedinthemannerspecifiedinpara­
graph 1todrawa.thirdshareequalto5%ofits
initialshare,roundeduptoth«-■:»-awhereappro­
priate.
3.If,afteroneorotherofitssecondshareshave
beenexhausted ,90%ormoreofthethirdshare
drawnbyaMemberStatehasbeenused,thatMember
Stateshall,inaccordance withthesameconditions ,
drawnafourthshareequaltothethird.
I
Thisprocessshallbeapplieduntilthereserveis
exhausted .
4.Bywayofderogation fromparagraphs 1,2and
3,aMemberStatemayproceedtodrawsharessmaller
thanthosefixedinthoseparagraphs ,ifthereisreason
tobelievethatthosesharesmightnotbeusedup.
TheyshallinformtheCommission ofthereasons
whichledthemtoapplythisparagraph .

quotaand,whereappropriate ,theproportion oftheir
initialsharethatisbeingreturnedtothereserve.
'Article4
Theadditional sharesdrawnpursuanttoArticle3
shallbevaliduntil31December 1978.
Article 5
/November
TheMember Stalesshallreturntothereserve,not
laterthan15/1978,theunusedportionoftheir
initialsharewhich,on1November 1978,isin
excessof20%oftheirinitialamount.Theymay
returnalargerportioniftherearereasonsfor
believingthatsuchportionmaynotbeusedinfull.
TheMemberStatesshall,notlaterthan15November
1978,notifytheCommission ofthetotalimportsof
theproductsconcerned effectedupto1November
1978inclusive,andchargedagainsttheCommunityArticle6
TheCommission shallkeepaccountoftheshares
openedbyMemberStatesinaccordance withArticles
2and3andshallinformeachofthemoftheextent
towhichthereservehasbeenusedassoonasit
receivesthenotifications .
_November
TheCommission shall;notlaterthan20/1978,
notifyMemberStatesoftheamountinthereserve
afterthereturnofsharespursuanttoArticle5.
TheCommission shallensurethatanydrawingwhich
usesupthereserveislimitedtothebalanceavailable
and,forthispurpose,shallspecifytheamountthereof
totheMemberStatewhichmakesthefinaldrawing.
Article7
).TheMember Statesshalltakeallmeasures neces­
sarytoensurethat,whenadditional sharesaredrawn
pursuanttoArticle3,itispossibleforchargestobe
madewithoutinterruption againsttheiraccumulated
sharesoftheCommunity quota.
17TheMemberStatesshallensurethatimporters
ofthesaidgoodsestablished intheirterritoryhave
freeaccesstothesharesallocated tothem.
3.TheextenttowhichaMemberStatehasusedup
itsshareshallbedetermined onthebasisofthe
importsofthegoodsinquestionenteredatcustoms
forhomeuse.
Article8
OnreceiptofarequestfromtheCommission ,
MemberStatesshallinformitofimportsactually
chargedagainsttheirshares.
Article9
TheMemberStatesandtheCommission shallcoop­
eratecloselyinordertoensurethatthisRegulation is
observed .
Article10
ThisRegulation shallenterintoforceon1May
1978. x

ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMemberStates.
DoneatBrussels,
FortheCouncil
ThePresident