ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73)1689
V ol.1973/0288

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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(73)1689 final
Brussels .10October 1973
PROPOSAL FOR A
REGULATION (EEC)OPTHE COUNCIL :
opening ,allocating and providing fortheadministration of
Community tariff quotas forport wines falling within
subheading ex22.05 ofthe Common Customs Tariff ,
originating inPortugal
PROPOSAL FOR A
REGULATION (EEC)OFTHE COUNCIL .
opening ,allocating andproviding fortheadministration of
aCommunity tariff quota for Madeira wines falling within
subheading ex22.05 ofthe Common Customs Tariff ,
originating inPortugal
PROPOSAL FOR A
REGULATION (EEC)OFTHE COUNCIL
opening ,allocating and providing for theadministration of
aCommunity tariff quota for Setubal muscatel wines ,falling
within subheading ex22.05ofthe Common Customs Tariff ,
originating inPortugal
(submitted bytheCommission totheCouncil )
C0M(73 )1689 final

EXPLANATORY MEMORANDUM
Article kofProtocol No8totheAgreement between theEuropean
Economic Community and thePortuguese Republic provides forthe
opening ofCommunity tariff quotas forthewines listed below :
Common Customs ' Annual Rate of
Tariff heading Description ofgoods Total reduction
No Volume
ex22.05 CIII a)1 (Port - 20000 hl 60%
ex22.05 CIVa)1 (incontainers holding
(twolitres .orless
ex22.05 CIII a)2aa) (Port - 285 000 hl 50%
ex22.05 CIVa)2aa)(incontainers holding
(twolitres ormore
ex22.05 CIII a)1 (Madeira 15000 hl 30%
ex22.05 CIII a)2aa)(
ex22.05 CIVa)1
ex22.05 CIVa)2aa)
ex22.05 CIII a)1 (Setubal muscatel 3000 hl 30%
ex22.05 CIII a)2aa) (
ex22.05 CIVa)1>
ex22.05 CIVa)2aa)
These wines will ofcourse remain subject toprovisions relating to
the common organization ofthemarket inwine .
Although Protocol No8provides forreduction oftherates forport
wines by60%and50 therate tobeapplied in197^will still be
*f0%.Infact ,under Article 6ofProtocol No8,theduties onthe
quotas are not tobelower than those applied bytheMember States
among themselves .Pursuant toArticle 59 (l)(c )oftheActofAccession ,
thetotal reduction ofduties inintra-Community trade tobeapplied
with effect from 1stJanuary 197^will amount toonly kO%ofthe
basic duties * .

-2-
3.Asregards the volume ofquotas ,theProtocol inquestion stipulates
that total annual volumes are involved .Itdoes not ,however ,include
a"prorata temporis "clause ,which would reduce these volumes
proportionately should quotas beopened after .1January .Thus the
quota can'be opened for the total annual volume for theinitial
I
period running from 1July to31December 1973 *
The Regulations provide ,inthe normal way ,that each ofthe volumes
shall bedivided into tranches ,the first ofwhich istobeallocated
among theMember States and the second held asareserve .
Theallocation ofthe first tranche isusually based onstatistics
for the three preceding years and onforecasts for theperiod in
question .Intheabsence ofspecific Community statistics for these
wines the initial quotas heve been calculated onthebasis ofthe
most recent statistics forPortuguese exports from 1970 to1972 .The
I
Portuguese statistics can infact be .considered togive arough
pictur.e ofCommunity imports ofthewines inquestion .
if.CONCLUSION
Inorder tofulfil the obligations oftheCommunity towards Portugal ,
Regulations should beadopted toopen ,allocate andprovide for the
administration ofthese Community tariff quotas .
This isthe subject oftheproposals annexed hereto ;
1

.Proposal for a '
REGULATION (EEC ).OPTHE COUNCIL
opening ,allocating andproviding fortheadministration ofCommunity tariff quotas
forport wines falling within subheading ex22.05 oftheCommon Customs Tariff ,
■ ^ originating inPortugal r
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,'
Having regard totheTreaty establishing theEuro­
pean Economic Community ,and inparticular Arti­
cles43and113threof ;
Having regard totheproposal from theCommis -
• sion ;
Having regard totheOpinion oftheEuropean Par-
liamcnt ;
Whereas Article 4ofProtocol No8totheAgree­
ment between theEuropean Economic Community
and the Portuguese Republic (')provides that
customs duties onimports into theCommunity of
certain wines originating inPortugal ,shall bere­
duced :
–by60% inthecaseoftheduties applicable to
port wines falling within subheadings Nos ex
22.05 C111a)1andex22.05 CIVa)1ofthe
Common Customs Tariff ,uptoatotal annual
tariff quota of20000hi;and
–by50°/ointhecaseoftheduties applicable to
port wines falling within subheadings Nos ex
22.05 C111a)2aa)andcx22.05 CIVa)2aa)
oftheCommon Customs Tariff uptoatotal
annual tariff quota of285000hi:
I
Whereas ,however ,under Article 6ofProtocol No8
andArticle 59oftheActconcerning theConditions
ofAccession and theAdjustments totheTrea­
ties^),the rate ofreduction tobe
applied tothe duties for Port wines ■
islimited to Ml)%only ;whereas this reduction
applies ,inthecase' oftheCommunity asoriginally
constituted ,totheCommon Customs Tariff duties
and,inthecase ofthenew Member States ,tosuch
duties asthese States apply atanygiven moment to
imports from third countries ;whereas these wines
will remain subject totheprovisions governing the
common organization ofthemarket inwine ;
(')OJNo L301,31.12.1972 ,p.165.
(*)OJNo L73,27.3 .1972 ,p.14.

-2-
Whereas itisinparticular necessary toensure toall
Community importers equal and uninterrupted
access totheabovementioned quotas and uninter­
rupted application oftherates laiddown forthese
quotas toallimports oftheproducts concerned into
allMember States until thequotas have been used
up;whereas ,having regard tothe principles
mentioned above ,the Community nature ofthe
quotas can berespected byallocating theCommu­
nity tariff quota among the Member States ;
whereas ,inorder toreflect most accurately the
actual development ofthemarket intheproducts
concerned ,such allocation should beinproportion
totheneeds oftheMember States ,assessed byrefer­
ence both tothestatistics ofeach State 'simports
from Portugal over arepresentative period and to
theeconomic outlook forthequota period con­
cerned ;
Whereas available Community statistics give no
information onthesituation ofport wines onthe
markets ;whereas ,however ,Portuguese statistics
forexports ofthese products totheCommunity i
during thepast few years can beconsidered to :
reflect approximately thesituation ofCommunity
imports ;whereas onthis basis thecorresponding
imports byeach oftheMember States represent the
following percentages ofthe imports into the '
Community from Portugal oftheproducts con­
cerned :
lithectolitres
1970 1971 1972 '
Port wines :
–inreceptacles containing two
litres orless
–Germany 19-4 163 15,7
–Bénélux 10-2 12-8 '11,7
–France 351 33-8 30,9
–Italy 27-4 27-5 27,5
–Dcnmark 2-4 2-2 2,1
–Ireland 0-3 0-2 0,2
–United Kingdom
i4-9 7-2 11,9
–inreceptacles containing more
*than two litres
Germany 9-2 9-4 8,7 .
–Bénélux 14-8 15-3 15,-
–France 45-2 44-8
–Italy 00 00 0,0
–Denmark 6-2 5-5 6.1
–Ireland 1-7 1-6 1,6
–United Kingdom 22-9
i23-4 25,^

-3-
Whereas ,inview ofthese data and theestimates
submitted bycertain Member States ,initial quota
shares may be fixed approximately at the
following percentages :
Port wines inreceptacles
containing
/ Two litres {More rhan
or icss two litres
Germany 16,8 9,-
Benelux 11,7 : 15,1
France 32,8 •
Italy 27,5 0,1
Denmark 2,2 | ■5,9 .
Ireland 0,2; 1,6
United Kingdom 8,8 2H,- •
Whereas ,'inorder totake into account import
trends fortheproducts concerned inthedifferent
Member States ,each ofthequota amounts should
bedivided into two instalments ,thefirst instalment
being allocated among theMember States and the
second forming &reserve intended ultimately to
cover therequirements oftheMember States which .
have used uptheir initial quota shares ;whereas ,in,
order toensure acertain degree ofsecurity toimpor­
ters ineach Member State ,thefirst instalment of
theCommunity quotas should be'determined ata
level which ,under present circumstances ,may be
90°/oofeach ofthequota amounts ;1
sWhereas theinitial quota shares oftheMember
States may beused upatdifferent times ;whereeas ,
inorder totake this fact into account and avoid
anybreak incontinuity ,ajiyMember State having
used upalmost thewhole ofanyoneofitsinitial
quota shares should draw anadditional quota share
from thecorresponding reserve ;whereas this must
be'done byeach Member State when each ofits
additional quota shares isalmost entirely used up,
andrepeated asmany times asthereserve allows ;
1whereas theinitial andadditional quota shares must
beavailable foruseuntil theend ofthequota
period ;whereas thismethod ofadministration calls'
forclose cooperation between Member States and
theCommission ,which must ,inparticular ,beable
toobserve theextent towhich thequota amounts
areused andinform Member States thereof :

-if-
Whereas if,ataspecified date inthequota period ,
aconsiderable balance remains inone orother .
.Member State itisessential that that Member State
pays alarge amount ofitback into thereserve ,in
order toavoid apart ofone orother ofthe
Community quotas remaining unused inone
Member State when itcould beused inothers ;
Whereas ,since the Kingdom »ofBelgium ,the
Kingdom oftheNetherlands and theGrand Duchy
ofLuxembourg areunited inandrepresented bythe
Benelux Economic Union ,all transactions
concerning theadministration ofshares granted to
the abovementioned Economic Union may be j
carried outbyanyofitsmembers ; !
HAS ADOPTED THIS REGULATION :
*•  . ;
Article 1 '
*1.For theperiod from 1January 197 ^" "to31
December 197^+,Community tariff quotas shall be
opened within theCommunity ■
forproducts originating inPortugal ,andwithin the 1
limits listed below :
CCT heading No Description Quota volume
ex22.05 CIIIa1
>Port wines 20000 hl
ex22.05 CIVa1 )
ex22.05 CIIIa2aa)
>Port wines 285000 hl
ex22.05 CIVa2aa)
2. OThe Common Customs Tariff duties onwines
imported within these tariff quotas shall be
suspended attherates listed below :
CCT heading No >Rate ofduty
ex22.05 CIIIa)1 8,10 UCLhl
ex22.05 CIVa)1 8,70 IJC/hl
ex22.05 CIIIa)2aa) 6,60 UC/hl
ex22.05 CIVa)2aa) 7,20 UC/hl
3.Within thelimits ofthese tariff quotas ,
thenewMember States apply the duties
mentioned incolumn 2ofthe schedule •
below ,inplace oftheduties tobeapplied
tothird countries with effect from
1stJanuary 197^which arementioned in
column 3i •

5-
CCT heading No Duty within
the quotaDuties
third countries
3
A.Denmark '•
ex22.05 IIIa)1.
ex22.05 IVa)1
ex22.05 III a)2aa)
ex22.05 IV1a)2aa)3,24 Rl/hl
:3,^8 Rl/hl
2,64 Rl/hl
2,88 'Hi/hl'_(5,40 :RE!/hlopposite /1 ' , 1
to '/5,80RE/hl
.Portugal ,
(4,40 Iffi/hl
'•/4,80 T<E/hl
B.Ireland .
ex22.05 Ill'a )1
ex'22.05 IVa)1
ex22.05 III a)2aa)
ex22.05 IVa)2aa)0,2400 £/Gall .
0,2400 -£/G:all .
0,0500 £/Gall .
0,24:00 4/G-all
0,05.46 f/Gall ,
0,24.00 a/Gail .0,4323
0,3499
0,0833
0,3234
0,0909£/<Eall .
£/Gall .
£/Gall ,
£/Gall .
£/Gall .
0,3310 -£/Gall .
0»United .Kingdom
ex22.05 III a)1
ex22.05 IVa)1
ex22.05 III a)2aa)
ex22.05 IVn)2no)0,3750 £/Gail .
0,3750 fi/Gail .-
0,3000 £/Gall ..
0,3750 £/Gall .
1 . 1
0,3000 C/G'all .
0,3750 £/Gall.0,4773
0,4849
0,3834
0,4584 .
0,3910
0,4660£/Gall.'
£/Gall .
£/Gall .
£/Gall .
£/GP.1I.
£/Gall .
•••/«-•

-6-
4.These tariff quotas shall beallocated and
administered asprovided hereunder .
Article 2
1.The tariff quotas laid down inArticle 1shall
bedivided into two instalments .
2.The first instalment shall beshared among .the
Member States ;theshares which ,subject toArticle
5,shall bevalid until 31December 1974shall
consist ofthefollowing amounts :
inhectolitres
Port wines under subheadings
ex22.05 CIIIa)1
and
ex22.0 5CIVa)1ex22.05 CIIIa)2aa)
and
ex22.05 CIVa)2aa)
Germany 3.020 23.000
Bénélux 2.100 38.500
France 5.900 112.900
Italy 4.950 300
Denmark koo 15.000
Ireland ko 4.100
United
Kingdom 1.590 61.200
Total 18.000 255.000
3.The second instalment ofeach quota ,2000
hectolitres and *0000 hectolitres respectively ,shall
constitute thereserve .
Article 3
1.If90•/•ormore ofoneoftheinitial shares of
aMember State ,aslaid down inArticle 2(2)or
•90•/•ormore ofthat share lesstheamount returned
into thereserve ,where theprovisons ofArticle 5
have been applied ,has been exhausted ,that
Member State shall proceed without delay ,bynotify­
ingtheCommission ,todraw asecond share
equal to15°/oofitsinitial share ,rounded uptothe
next unit where appropriate ,totheextent that the
amount inthereserve allows .
2..If,after oneorother ofitsinitial shares have
been exhausted ,90%>ormore ofthesecond share
drawn byaMember State has been used ,that
Member State shall proceed inthemanner specified
inparagraph 1todraw athird share equal to7-5%>.
ofitsinitial share ,rounded uptothe -next unit
where appropriate ,totheextent that theamount in
thereserve allows .
3.If,after one ofitssecond shares has been
exhausted ,90•/•ormore ofthethird share drawn

-7-
byaMember State has been used ,that Member '
State shall proceed inthemanner specified inpara­
graph 1,todraw afourth share equal tothethird ._,.
This process shall beapplied until the "reserve is
exhausted . '
4.Notwithstanding paragraphs 1,2and 3,the
Member States may proceed todraw shares smaller
than those fixed inthose paragraphs ifthere isany
reason tobelieve that those shares might notbeused
up.They shall inform the Commission ofthe
reasons which ledthem toapply thisparagraph .
Article 4
Each oftheadditional shares drawn pursuant to
Article 3shall bevalid until 31December 197/(*v !*
Article S
If,by15Septsnba ?1974,aMember State hasnot
used upitsinitial shares ,itshall ,notlater than 10
October 1974,return tothereserve theunused
portion ofthose shares inexcess of20°/»ofthe _
initial amount .Itmay return alarger quantity if
there are reasons toconsider that such quantity
might notbeused . 1
The Member States shall ,not later than 10
October 197*+.notify the Commission ofthe
total imports oftheproducts concerned effected up
to15Sept3nberl97H -inclusive ,andcharged against
theCommunity quotas and,where appropriate ,the
proportion oftheir initial shares that isbeing
returned toeach reserve .
Article 6
The Commission shall keep account oftheshares
opened byMember States inaccordance with Arti­
cles 2and 3and shall inform each ofthem ofthe ,
extent towhich thereserves have been used assoon
asitreceives thenotifications .
The Commission shall ,notlater than 15October
1974 ,notify Member States oftheamount Ineach r
reserve after the return ofshares pursuant to'
Article 5. ,
The Commission shall ensure that any drawing
which uses upany reserve islimited tothebalance
available and,forthis purpose ,shall specify the
amount thereof totheMember State which makes
thefinal drawing .

-8-
Article 7
1«TheMember -States shall take allappropriate
measures toensure that,when additional shares are
drawn pursuant toArticle 3,itispossible for '
charges tobemade ,without interruption ,against
their accumulated shares oftheCommunity tariff
quotas .
2.TheMember States shall guarantee toimpor­
tersoftheproducts concerned established intheir
territory freeaccess totheshares allocated tothem .
3.Theextent towhich theMember States' shares
have been used upshall berecorded onthebasis of
theimports originating inPortugal andpresented
forcustoms clearance under cover ofdeclarations
thatthey have been made available forconsump­tion .
Article 8
Member States shall inform theCommission at
regular intervals ofimports oftheproducts
concerned actually charged against their shares .
Article 9
TheMember States andtheCommission shall co­
operate closely inorder toensure thattheprovisions 'ofthisRegulation areobserved .
Article 10
This Regulation shall enter into force on 1January
1974 .
This Regulation shall bebinding initsentirety anddirectly applicable inallMember
States .. , ' , /*y
Done atLuxembourg , •
For theCouncil
The President

Proposal for a
REGULATION (EEC )OFTHE COUNCIL
opening ,allocating andproviding fortheadministration ofaCommunity tariff quota
forMadeira wines falling within subheading ex22.05 oftheCommon Customs Tariff ,
originating inPortugal
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard tothe Treaty establishing theEuro­
pean Economic Community ,andinparticular Arti­
cles43and 113thereof ;
Halving regard totheproposal from theCommis­
sion ;
Having regard itotheOpinion oftheEuropean Parli­
ament ;
Whereas Article 4ofProtocol No 8totheAgree­
ment between theEuropean Economic Community
and the Portuguese Republic (')provides that
customs duties onimports into theCommunity of
Madeira wines originating inPortugal ,falling
within subheadings Nos ex22.05 CIIIa)1,ex22.05
CIIIa)2aa),ex22.05 CIVa)1and ex22.05
CIVa)2aa)ofthe Common Customs Tariff
aretobereduced by30°/ouptoa,toral annual
tariff quota of15000 hi;whereas this '
reduction applies ,inthe case of
the Community asoriginally constituted ,to'the
Common Customs Tariff duties and,inthecase of
thenew Member States ,tosuch duBies asthese \
States apply aitany given moment toimports from
third countries ;whereas these wines will remain
eubjeot totheprovisions governing thecommbn
organization ofthemarket inwine ;
Whereas itisinparticular necessary toensure toall
Community importers equal and uninterrupted
access totheabovementioned quota and uninter­
rupted application oftherates laid down' forthat •
quota toallimports oftheproducts :concerned into
allMember States until thequota hasbeen used
up;whereas ,having regard tothe principles
mentioned above ,the Community nature ofthe
quota canberespected byallocating theCommu­
nity tariff quota among the Member States ;
whereas ,inorder toreflect most accurately the
actual development' ofthemarket intheproducts
(l)OJNo L301,31.12.1972 ,p.165.

-2-
concerned ,such -allocation should beinproportion
totheneeds oftheMember States ,assessed byrefer­
ence both tothestatistics ofeach State 'simports
from Portugal over arepresentative period and to
theeconomic outtlook forrhcquota period concer­
ned ;
Whereas available Community statistics give no
information onthesituation ofMadeira wines on
the markets ;whoreais ,however ,Portuguese statis­
tics'foxexports ofthese products totheCommunity
during thelast few years can beconsidered to
reflect approximately thesituation ofCommunity
imports ;whereas onthis basis thecorresponding
imports byeach oftheMember States during the
dast three yeans represent thefollowing percentages
oftheimports into theCommunity from Portugal
oftheproducts concerned : ?; • •
1970
I1971 1972
Germany 21-4 22-3 23,.5
Bénélux 12-6 14-6 11,.9
France 40-2 38-6 ^0,9
Italy 1-2 0-9 0,7
Dcnmark 15-9 13-8 13,6
Ireland 0-1
United Kingdom 8-7 9-7 9Λ
Whereas ,inview ofthese data and theestimates
submitted bycertain Member States ,initial quota
shares may befixed approximately atthefollowing
percentages :
Germany 22'
Bénélux 13
France '40
Italy 1
Denmark
Ireland I1
United Kingdom 9'

-3-
Whereas ,inorder totake into account import
trends fortheproducts concornod inthedifferent
Member States ,thequota amount should bedivided
intotwoinstalments ,thefirstinstalment being allo­
cated among theMember States andthesecond
forming areserve intended ultimately tocover the
requirements oftheMember States which have used
uptheir initial quota shares ;whereas ,inorder to
ensure acertain degree ofsecurity toimporters in
each Member State ,thefirst instalment ofthe
Community quota should bedetermined atalevel
which ,under present circumstances ,may be90%
oithequota amount ;
Whereas theinitial quota shares oftheMember
States may beused upatdifferent times ;whereas ,
inorder totake thisfactinto account andavoid
anybreak incontinuity ,anyMember State having
used upalmost thewhole ofitsinitial quota share
should draw anadditional quota share from the
reserve ;whereas this must bedone byeach
Member State when each ofitsadditional quota
shares isalmost entirely used up,andrepeated as
many times asthereserve allows ;whereas the
initial and additional quota shares must beavail­
able foruseuntil theendofthequota period ;
whereas this 'method ofadministration call'sfor
close cooperation between Member States andthe
Commission ,which must ,inparticular ,beable to
observe theextent towhich thequota amount is
used andinform Member States thereof ;
Whereas if,ataspecified date inthequota period ,a
considerable bailance oftheinitial share remains in
oneorother Member State itisessential that that
Member State pays alarge amount ofitback into
thereserve ,inorder toavoid apartoftheCommu­
nity quota remaining unused inoneMember State
when itcould beused inothers ;
Whereas ,since the Kingdom ofBelgium ,the
Kingdom oftheNetherlands andrheGrand Duchy
ofLuxembourg areunited inandrepresented bythe
Benelux Economic Union ,all transactions
concerning theadministration ofshares granted to
theabovementioned Economic Union may be
carried outbyanyofitsmembers ;
HAS ADOPTED THIS REGULATION :
Article 1
1.Forthe period from 1January 197 *+tc31
December 1974,aCommunity tariff quota of
15000 hishall beopened within theEuropean
Economic Community ,forMadeira originating in
Portugal ,falling within subheadings N'osex22.05 C
IIIa)1,ex22.05 CIIIa)2aa),ex22.05 CIVa)1
andex22.05 CIVa)2aa)oftheCommon Customs
Tariff .

-k-
2.The Common Customs Tariff duties appli­
cable towines imparted' within this tariff quota
shall .besuspended attherates listed bolow : .
CCT heading No Rate ofdufy
ex22.05 CIII a)1 9,45 uc/hl
ex22.05 CIIIa)2aa) ■7,70 UC/hl
ex22.05 CIVa)1 10,15 uc/hl
ex22.05 CIVa)2aa) &,kO UC/hl
3.Within the limits ofthese tariff
quotas ,the new Member States apply
the duties mentioned incolumn 2
ofthe schedule below ,inplace of
the duties tobeapplied tothird
countries with effect from 1January
197*t which are mentioned incolumn 3 J
CCT heading No Duty within Duties
the quota third countries
A.Denmark
ex22.05 CIII a)1 3,78 UC/hl ..(5,^0 uc/hl
opposite 8quc/hl
Portucal if0U°/hlPortugal (ifg0uc/hlex22.05 CIII a)2aa) 3,08 UC/hl
ex22.05 C IVa)1 if,06UC/hl
ex22.05 CIVa)2aa) 3,36 UC/hl
B.Ireland
ex22.05 CIII a)1 0,2400 £/gall . ■0,3423 £/gall .
0,0584 £/gall . 0,0833 fi/gall .
ex22.05 CIII a)2aa) 0,2400 £/gall . 0,3234 £/gall .
0,2^50 £/gall . 0,3499 £/gall .
ex22.05 CIVa)1 0,063 ?£/gall . 0,0909 £/gall .
ex22.05 CIVa)2aa) 0,2400 £/gall . 0,3310 £/gall .
C.United Kingdom
ex22.05 CIII a)1 .0,3750 £/gall . 0,4773 £/gall .
ex22.05 CIII a)2aa) 0,3000 £/gall . 0,383 ^£/gall .
0,3750 £/gall . : 0,k53k £/gall .
ex22.05 CIVa)1 0,3750 £/gall . 0,^8^9 £/gall .
ex22.05 CIVa)2aa)■0,3000 £/gall . 0,3910 £/gall .
Pv3750 £/gall . 0,4660 £/gall .
«
•••/•••

4.This tariff quota shall beallocated and admin­
istered asprovided hereunder .
Article 2
1.The tariff quota referred toinArticle 1shall
bedivided into two instalments .
2.Afirst instalment ,amounting to13500hecto -
litres ofthis quota ,shall beshared among the
Member States ;theshares which ,subject toArticle
5shall bevalid until 31December 197^,shall '
consist ofthefollowing amounts :
(inhectolitres )
Germany "2.970
Bénélux 1.76C
France ^.kOO
Italy 130
Denmark 4 1.890
Ireland '130
United .Kingdom 1.220
3.The second instalment of (he quota ,
amounting to1500 hectolitres ,shall constitute the
reserve .
Article 3
1.If90°/oormore ofthe initial share ofa
Member State ,aslaid down inArticle 2(2),or
90%>ormore ofthat share Jess the amount
returned into the ireserve ,where theprovisions of
Article 5have been applied ,has been exhausted ,
that Member State shall proceed without delay ,by
notifying theCommission ,todraw asecond share
equal to15%>ofitsinitial share ,rounded uptothe
next unit where appropriate ,totheextent that the
amount inthereserve allows .
2.If,•after itisinitial share 'has been exhausted ,
90%ofthesecond share drawn byaMember State
hasbeen used ,that Member State shall proceed ,in
themanner specified inparagraph 1,todraw a
third share equal to7-5°/oofitsinitial share
rounded uptothenext unit where appropriate ,to
theextent that theamount inthereserve allows .

-6-
3.If,after itssecond share has been exhausted ,
90•/#ormore ofthe third share .drawn by a
Member State has been ■used ,that Member State
shall proceed ,inthemanner specified inparagraph
1,todraw afourth share equal tothethird .
This process shall beapplied until thereserve is
exhausted .
4.Notwithstanding paragraphs 1,2and 3,the
Member States may proceed todraw shares smaller
than those fixed inthose paragraphs ,ifthere is
reason tobelieve that those shares might not be
used up.They shall inform theCommission ofthe
reasons which ledthem toapply thisparagraph .
Article 4
The additional shares drawn pursuant toArticle 3
shall bevalid until 31December 1974 *
Article 5
If,by15Septemba:'1974 aMember State hasnot
used upitsinitial share ,itshall ,notlater than 10
October 1974 return theunused portion ofthis
share inexcess of20°/oofthe initial amount .It
may return alarger quantity ifthere arereasons to
consider thatsuch quantity might notbeused .
The Member States shall ,not later than 10
October 1974 notify theCommission ofthetotal
imports oftheproducts concerned effected upto15
Septemtierl974 inclusive and pharged against the
Community quota and,where appropriate ,the
proportion oftheir initial share chat isbeing
returned tothereserve .
Article 6
The Commission shall keep account oftheshares
opened byMember States inaccordance with Articles
2and 3and shall inform each ofthem oftheextent
towhich thereserve has been used assoon asitre­
ceives thenotifications .
The Commission shall ,notlater than 15October
1974 ,notify Member States oftheamount inthe
reserve after thereturn ofshares pursuant toArticle
5.
The Commission shall ensure that anydrawing which -
uses upthereserve islimited tothebalance available
and,forthispurpose ,shall specify theamount thereof
totheMember State which makes thefinal drawing .

-7-
Article 7
1.The Member States shall take allappropriate
measures toensure that ,when additional shares are
drawn pursuant toArticle 3,itispossible forchar­
gestobemade ,without interruption ,against their
accumulated shares oftheCommunity tariff quota .
2.The Member States shall guarantee toimporters
oftheproducts concerned established intheir terri­
tory freeaccess totheshares allocated tothem .
3.The extent towhich theMember States' shares
have been used upshall berecorded onthebasis of
theimports originating inPortugal andpresented for .
customs clearance under cover ofdeclarations that
theyhave been made available forconsumption :
Article 8
Member States shall inform theCommission atregu­
larintervals ofimports oftheproducts concerned
actually charged against their shares .
Article 9
The Member "States and the Commission shall co­
operate closely inorder toensure that theprovisions
ofthisRegulation areobserved .
I ',
Article 10
ThisRegulation shall enter intoforce on1January
■1974 ...
This Regulation shall bebinding initsentirety anddirectly applicable inallMember
States . y
i ■.
Done atLuxembourg ,
For theCouncil
!
The President

ANNEX III
,' Proposal fora
REGULATION (EEC )OF THE COUNCIL
, •opening ,allocating andproviding fortheadministration ofaCommunity tariff quota
forSetubal muscatel wines ,falling within subheading ex22.05 oftheCommon Customs
Tariff ,originating inPortugal
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuro­
pean Economic Community andinparticular Articles
43and 113thereof ; ,
Having regard totheproposal from theCommission ;
Having regard totheOpinion oftheEuropean Par­
liament ;
Whereas Article 4ofProtocol No8totheAgreement
between theEuropean Economic Community andthe
Portuguese Republic (')provides thatcustoms duties
onimports intotheCommunity ofSetubal muscatel
wines originating inPortugal ,falling within subhead­
ingsNos ex22.05 CIIIa)1,ex22.05 CIIIa)2aa),
ex22.05 CIVa)1andex22.05 CIVa)2aa)ofthe
Common Customs Tariff areto'bereduced by30°/o
uptoatotal annual tariff quota of3000hi;whereas i
this reduction applies ,in
thecase oftheCommunity asoriginally constituted ,
totheCommon Customs Tariff duties and,inthe ■ •
case ofthenew Member States ,tosuch duties as
these Member States apply atany given moment to
imports from third countries ;whereas these wines
will remain subject totheprovisions governing the
common organization ofthemarket inwine ;
Whereas itisinparticular necessary toensure toall ' (
Community importers equal anduninterrupted access
totheabovementioned quota and uninterrupted ap- ,
plication oftherates laiddown forthatquota toall
imports oftheproducts concerned into allMember
States until thequota hasbeen used up;whereas ,
'having regard totheprinciples mentioned above ,the
Community nature ofthequota canberespected by ,
allocating theCommunity tariff quota among the
Member States :whereas ,inorder toreflect most ac­
(*)OJNo L301,3t.12.1972 ,p.165.
«t•/•••

-2-
•curataly theactual development ofthemarket inthe
products concerned,' such allocation should beinpro­
portion totheneeds oftheMember States ,assessed
byreference both tothestatistics ofeach States 'sim­
ports from Portugal Over arepresentative period and
totheeconomic outlook forthequota period con­
cerned j'
Whereas available Community statistics give noin­
formation on .the situation ofSetubal muscatel
wines onthe' markets ;whereas ,however ,Portu­
guese statistics for ,exports ofthese products tothe
Community 'during thepast fewyears canbeconsid­
ered toreflect approximately the situation of
Community imports ;whereas on this basis the
corresponding imports byeach ofthe Member
States 1represent thefollowing percentages ofthe
imports ;into theCommunity from portugal ofthe
products concerned :
1970 1971 1972
Germany "39-8 12-1 1^,8/
Bene lux . 20-7 6-3 16,*f
France 01
Italy 01 1,6
Denmark • '•14-5 28-6 8,2
Ireland 7-9 17-5 ' 1,6
United Kingdom < 17-1 35-3 57,4
Whereas ,inview ofthese data and theestimates
submitted bycertain Member States ,initial quota
shares may befixed approximately atthefollowing
percentages :
Germany
Bénélux •
fFrance !
Italy :
Denmark
Ireland ■
United Kingdom32
16
•1
1
18
10
22

-3-
Whereas ,inorder totake into account import
trends fortheproducts concerned inthedifferent
Member States ,the quota amount 'should be
divided into two instalments ,the first instalment
being allocated among theMember States and the
second forming a.reserve intended ultimately to
cover therequirements oftheMember States which
have used uptheir initial quota shares ;whereas ,in
order toensure acertain degree ofsecurity toim­
porters ineach Member State ,thefirst instalment of
theCommunity quota should bedetermined ata
level which ,under present circumstances ,may be
90%ofthequota amount ;
Whereas the initial quota shares oftheMember
States may beused upatdifferent times ;whereas ,
inorder totake this fact into account and avoid
any break' incontinuity ,any Member State having
used upalmost thewhole ofitsinitial quota "share
should draw anadditional quota share from the
reserve ;whereas this must bedone byeach
Member State when each ofitsadditional quota
shares isalmost entirely used up,and repeated as
many times asthereserve allows ;whereas theinitial
and additional quota shares must beavailable for
useuntil theendofthequota period ;whereas this
method ofadministration calls forclose coopera­
tion between Member States and theCommission ,
which must ,inparticular ,beable toobserve the
extent towhich the quota amount isused and
inform Member States thereof ;
Whereas ,if,ataspecified date inthequota period ,
aconsiderable balance remains inone orother
Member State itisessential that that Member State
pays alarge amount ofitback into thereserve ,in
order toavoid apart oftheCommunity quota
remaining unused inone Member State when it
could beused inothers ;
I
Whereas ,since the Kingdom of .Belgium ,the
Kingdom oftheNetherlands andtheGrand Duchy
ofLuxembourg areunited inandrepresented bythe
Benelux Economic Union ,all transactions •
concerning theadministration ofshares granted to
the abovementioned Economic Union may .be
carried outbyanyofitsmembers ; , .' ■
HAS ADOPTED THIS REGULATION :
Article 1
1.For theperiod from 1January 197 ^-to31
December 1974 ,aCommunity tariff quota of3000
hishall beopened within theEuropean Economic
Community forSctubal muscatel wines originating
inPortugal ,falling within subheadings Nos ex22.05
CIIIa)1,ex22.05 CItta)2aa),ex22.05 CIVa)and
ex22.05 CIVa)2aa)oftheCommon Customs
Tariff .

2.The Common Customs Tariff duties appli­
cable towines imported within this tariff quota
shall besuspended attherates listed boLow : ,
CCT heading No Rate ofdury
ex22.05 CIIIa)1i ~ ■■
9,45 UC/hl
ex22.05 CIIIa)2aa) ■7,70 UC/hl
ex22.05 CIVa)l 10,15 UC/hl
«x22.05 CIVa)2aa) 8,40UC/hl
3.Within the limits ofthese 'tariff
quotas ,the new Member States apply
the duties mentioned incolumn 2
ofthe schedule below ,inplace of
the duties tobeapplied tothird
countries with effect from 1January
1974 which arementioned incolumn 3
CCT heading No Duty withm
the quotaDuties
third countries
1 . 3
ùenmarK
ex
ex
η ·«.»■22.05 CIII a)1
P2.C5 CIII r)2re.)
22.05 CIVa)1
22.05 CIV r)2aa)3,78 UC/hl
3,08 TTC/hl
4,06 UC/hl
3,36 -UC/hldpposite
to
Portugal(5,40 UC/hl
ΐVΟΓ\ /νΊ
(4,40 UC/hl
(4,8o uc/'il
ex22.05 CIII a).1 0,2400 £/gall . 0,3423 £/g-ll .
0.0584 £/rail . 0,06 33fA-nll .
ex22.05 CIII a)2aa) 0,2400 £/gall . 0,3234 £/gall .
0,2450 £/gall .• 0,3499 £/gall .
ex22.05 CIV a1 0,0637 £/gall . 0,0909 f/gall .
ex22.05 CIVa)2aa) 0,2400 £/gall . 0,3310 £/gall .
C.United Ain^dom
ex22.05 CIII a)1 0,3750 £/gall ,
00,4773 £/gall .
ex22.05 CIVa)2aa) .0,3000 £/gall .
.0,5/50£/'gaix .0,3910 iygaii .
0,4t;OU

4.These tariff quotas shall beallocated and
administered asprovided hereunder ,<
Article 2
1.The tariff quota referred toinArticle 1shall
bedivided intotwoinstalments . ;
2.Afirst instalment ,amounting to2700 hecto -
litres ,shall beshared among theMember States ;the
shares which ,subject toArticle 5,shall bevalid
until 31 December 1974 shall consist ofthe
following amounts :
(inhectolitres )
Germany $60
Bénélux ^30
France 30
Italy ,30
Denmark t-90
Ireland 270
United Kingdom 590
J. The second instalment ,amounting to300
hectolitres ,shall constitute thereserve .
Article 3
1.If90% ormore oftheinitial share ofa
Member State aslaid-down inArticle 2(2),or90%
ormore ofthatshare lesstheamount returned into
thereserve ,where theprovisions ofArticle 5have •
been applied ,hasbeen exhausted ,that 'Member
State shall proceed without delay ,bynotifying the
Commission ,todraw asecond share equal to15%
ofitsinitial share ,rounded uptothenext unit
where appropriate ,totheextent thattheamount in
thereserve allows .
2.If,after itsinitial share hasbeen exhausted ,
90% ormore ofthesecond share drawn bya
Member State has been used ,that Member State
shall proceed inthemanner specified inparagraph
1todraw athird share equal to7-5%ofitsinitial
share ,rounded uptothenextunitwhere appropriate ,
totheextent that theamount inthereserve allows .

3.If,after itssecond share hasbeen exhausted ,
90°/#•ormore ofthe .third share drawn bya
Member State has been used ,that Member State
shall proceed ,inthemanner specified inparagraph
1,todraw afourth share equal tothethird .
This process shall beapplied until thereserve is
exhausted .
4.Notwithstanding paragraphs 1,2and 3,the
Member States may proceed rodraw shares smaller
than those fixed inthose paragraphs ,ifthere is
reason .tobelieve that those shares might not be
used up.They shall inform the 1Commission ofthe
reasons which ledthem toapply thisparagraph .
Article 4
The additional shares drawn pursuant toArticle 3
shall bevalid until 31December 1974 *
ArticleS
If,by15September 1974 ,aMember State hasnot
used upitsinitial share ,itshall ,notlater than 10
October 1974 ,return tothe reserve the unused
portion ofthisshare inexcess of20%oftheinitial
amount .Itmay' return alarger quantity ifthere are
reasons toconsider that such quantity might notbe
used .
The Member States shall ,not later than 10
October 1974 notify the Commission ofthe
total imports oftheproducts concerned effected up
to15September 1974 inclusive andcharged against
theCommunity quota and ,where appropriate ,the
proportion oftheir initial shares that isbeing
returned tothereserve .
Article 6
The Commission shall keep account oftheshares
opened byMember States inaccordance with Arti­
cles 2and 3and shall inform each ofthem ofthe
extent towhich thereserve has been used assoon
asitreceives thenotifications .
The Commission shall ,notlater than 15October
1974 ,notify Member States oftheamount inthe
reserve after thereturn ofshares pursuant toArticle
5.
The Commission shall ensure that any .drawing
which uses upthereserve islimited tothebalance
available and,forthis purpose ,shall specify the
amount thereof totheMember State which makes
thefinal drawing .

Article 7
1.The Member Stales shall take allappropriate
measures toensure that ,when additional shares are
drawn pursuant toArticle 3,itispossible for
charges tobemade without interruption against
their accumulated shares oftheCommunity tariff
quota .
2.The Member States shall guarantee toimporters
oftheproducts concerned established intheir terri­
tory freeaccess totheshares allocated tothem .
3.The extent towhich theMember States' shares
have been used upshall berecorded onthebasis of
theimports originating inPortugal and presented
forCustoms clearance under cover ofdeclarations
that they have been made available forconsump­
tion .
Article 8
Member States shall inform the Commission at
regular intervals ofimports ofthe products
concerned actually charged against their shares .
Article 9
TheMember States andtheCommission shall coop-
crate closely inorder toensure that theprovisions
ofthisRegulation arcobserved . '
Article 10
This Regulation shall enter into force on 1January
1974 .
This Regulation shall bebinding initsentirety anddirectly applicable inallMember
States .
Done atLuxembourg ,
For theCouncil
The President '