Council Regulation (EEC) No 3677/86 of 24 November 1986 laying down provisions for the implementation of Regulation (EEC) No 1999/85 on inward processing relief arrangements
Date: 1986-11-24
Institutions: Council of the European Union
Subjects: inward processing













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31986R3677

Council Regulation (EEC) No 3677/86 of 24 November 1986 laying down provisions for the implementation of Regulation (EEC) No 1999/85 on inward processing relief arrangements  


Official Journal L 351 , 12/12/1986 P. 0001 - 0074 





COUNCIL REGULATION (EEC) N° 3677/86 of 24 November 1986 laying down provisions for the implementation of Regulation (EEC) N° 1999/85 on inward processing relief arrangements THE COUNCIL OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Economic Community,Having regard to Council Regulation (EEC) N° 1999/85 of 16 July 1985 on inward processing relief arrangements (1), and in particular Article 31 thereof,Having regard to the proposal from the Commission,Whereas it is necessary to adopt certain provisions to regulate the issue of inward processing authorizations; whereas in particular it is appropriate to lay down rules for application of the economic conditions and to define the circumstances in which those conditions, in the interests of maximum administrative simplification, shall be deemed to be fulfilled;Whereas it is desirable to define the circumstances in which the suspension system may be used, given that compensating products are to be exported from the customs territory of the Community; whereas in cases where the products are not to be exported the drawback system may be used when the conditions for this system are fulfilled; whereas provision should also be made, in certain circumstances, for the release for free circulation of compensating products to be authorized under the suspension system;Whereas it is necessary to lay down the conditions for use of the equivalent compensation and prior exportation systems and to define the time at which the change in customs position of the goods concerned takes place;Whereas it is desirable to forbid the use of equivalent compensation for goods needed for the production of certain types of non-ferrous metal waste and scrap, in consideration of the common commercial policy;(1) OJ N° L 188, 20. 7. 1985, p. 1.Whereas it is desirable to restrict the system whereby import goods are placed under the arrangements in a Member State other than that in which use of the arrangements was authorized and where the processing operations are carried out, where the prior exportation procedure is used; whereas provision should be made for the requisite exchange of information between the two Member States concerned;Whereas it is necessary to specify how the various procedures are to apply in connection with the common commercial policy;Whereas implementing rules must be laid down to cover entry of goods for the arrangements, use of the drawback system and some of the ways in which goods or products may be dealt with for customs purposes; whereas such rules, while being adequate to prevent abuses, must be such as to keep administrative procedures to a minimum so as not to impose a burden on firms using the arrangements;Whereas standard rates of yield should be laid down on the basis of the existing Community rules;Whereas it is necessary to lay down uniform rules for the charging of duties in cases where a customs debt arises; whereas for that purpose it is necessary to draw up a list of compensating products which can be charged at their appropriate rate, to lay down special rules for olive oil and to provide for the application of certain agricultural import duties; whereas it is also desirable to lay down certain rules for the application of monetary compensatory amounts in connection with the arrangements;Whereas it is necessary to lay down provisions for calculating the proportion of import goods incorporated in compensating products where this is necessary in order to ascertain the amount of import duties to charge, to be repaidor remitted; whereas in view of the complexity of the calculations which may be involved, it is appropriate to give quantified examples;Whereas it is desirable to establish rules for discharge of the arrangements and for repayment or remission under the drawback system;Whereas it is necessary to lay down rules for administrative cooperation to ensure uniformity in the application of economic conditions and implementation of the arrangements where more than one Member State is concerned;Whereas, in the absence of an opinion from the Committee for Customs Procedures with Economic Impact, the Commission has been unable to adopt the provisions envisaged on this subject pursuant to the procedure laid down in Article 31 (3) (a) of Regulation (EEC) N° 1999/85,HAS ADOPTED THIS REGULATION:TITLE IGENERAL PROVISIONS AND PRODUCTION ACCESSORIESArticle 1For the purposes of this Regulation: 1.  basic Regulation means Council Regulation (EEC) N° 1999/85 of 16 July 1985 on inward processing relief arrangements; 2.  main compensating products means the compensating products for the production of which use of the inward processing arrangements (hereinafter referred to as the 'arrangements') was authorized; 3.  secondary compensating products means compensating products other than those referred to in paragraph 2 which are a necessary by-product of the processing operation; 4.  losses means the proportion of the import goods destroyed and lost during the processing operation, in particular by evaporation, dessication, venting as gas or leaching; 5.  quantitative scale method means calculation of the import goods incorporated in the various compensating products by reference to the quantity of such import goods; 6.  value scale method means calculation of the import goods incorporated in the various compensating products by reference to the value of such compensating products; 7.  equivalent compensation means the system referred to in Article 2 (1) (a) of the basic Regulation; 8.  prior exportation means the system referred to in Article 2 (1) (b) of the basic Regulation; 9.  triangular traffic means the system whereby import goods are entered for the arrangements in a Member State other than that in which use of the arrangements was authorized and where the processing operations are carried out;10.  importing Member State means the Member State in which the import goods are entered for the arrangements;11.  exporting Member State means the Member State in which the compensating products are declared for export;12.  specific commercial policy measures means non-tariff measures established as part of the common commercial policy in the form of Community rules governing arrangements for the import or export of goods, such as surveillance or safeguard measures, quantitative limits or restrictions and import or export bans.Article 21.  The goods covered by the fourth indent of Article 1 (3) (h) of the basic Regulation (production accessories) and the ways in which they may be used are listed in Annex I.2.  The customs authority may allow application of the provisions referred to in paragraph 1 to goods other than those listed in Annex I which are not found in the compensating products but are necessary for, or facilitate, the manufacture of such products, even where use of the said goods results in their complete or partial loss. This subparagraph shall not apply to energy sources, lubricants or equipment and tools.Member States shall notify the Commission at six-monthly intervals of cases in which this paragraph has been applied.TITLE IIAUTHORIZING USE OF THE ARRANGEMENTSCHAPTER IAPPLYING FOR AUTHORIZATIONArticle 31.  Without prejudice to paragraph 4 or to Article 26, applications for authorization shall be made in writing and shall conform to the model set out in Annex II. They shall at least contain the information indicated in the said Annex. Applications must be signed and dated.2.  Where the customs authority considers the particulars indicated in the model referred to in paragraph 1 to be inadequate, it may require the applicant to supply additional particulars.3.  The application must be accompanied by all supporting documents or evidence needed for its appraisal.4.  The customs authority may allow the holder of an authorization to apply for its renewal by simple written request, giving particulars of the previous authorization and indicating any changes which need to be made.5.  The customs authority shall keep applications and the documents and evidence relating to them, together with copies of any authorizations issued.6.  The applicant may request that the authorization be either for the suspension system or the drawback system where the conditions for use of the appropriate system are fulfilled.7.  Where processing is carried out under a job processing contract between two persons established in the Community the application for authorization shall be lodged by or on behalf of the principal.8.  Where a request is to be made for alteration of an authorization, paragraph 4 shall apply.CHAPTER IIGENERAL CONDITIONS FOR AUTHORIZING USE OF THE ARRANGEMENTSArticle 41.  Before issuing the authorization the customs authority shall check that the conditions for use of the arrangements, in particular the economic conditions, are fulfilled.2.  For the purposes of the second sentence of Article 4 (a) of the basic Regulation, 'imports of a non-commercial nature' means imports of an occasional nature, containing goods the nature and quantity of which does not indicate that they are being imported for any commercial purpose.3.  For the purposes of Article 4 (c) of the basic Regulation the customs authority shall establish the methods of identifying the import goods in the compensating products or the means of verifying whether the conditions laid down for the proper conduct of operations under the equivalent compensation system have been complied with.To this end the customs authority shall use, inter alia, the following means:(a)  statement or description of special marks or manufacturer's numbers;(b)  affixing of seals, clip-marks or other distinctive marks;(c)  the taking of samples, illustrations or technical descriptions;(d)  the carrying-out of analyses.Article 51.  For the purposes of applying the economic conditions:(a)  comparable goods shall be considered unavailable within a 'suitable time' within the meaning of Article 6 (1) (c) of the basic Regulation where producers established in the Community cannot make them available to the operator in time for the proposed commercial operation to be carried out, despite a request having been made to them in good time;(b)  in deciding whether the price of comparable goods produced in the Community is such as to make the proposed commercial operation economically impracticable, the customs authority shall take account, inter alia, of the impact that the use of Community-produced goods would have on the cost price of the compensating product and hence on the disposal of the product on the third-country market, having regard to:- both the price of the uncleared goods for processing and the price of comparable goods produced in the Community less domestic taxes refunded or refundable on exportation, including any refunds and any other amounts applying under the common agricultural policy. Conditions of sale, in particular payment terms, and proposed delivery terms shall also be taken into consideration when comparing prices, and- the price obtainable for the compensating product on the third-country market, as ascertained from commercial correspondence or other information;(c)  'job processing' means any processing of import goods directly or indirectly placed at the disposal of the holder of the authorization which is carried out according to the specifications and on behalf of a principal established outside the customs territory of the Community, generally against payment of processing costs alone.2.  Goods produced in the Community shall be comparable to import goods when they fall within the same subheading of the Common Customs Tariff, are of the same commercial quality and have the same technical characteristics, having regard to the compensating products to be obtained.3.  In assessing the economic conditions, the following shall not in themselves be taken as grounds for granting the authorization:(a)  the fact that the Community producer of comparable goods which could be used to carry out the processing operations is an undertaking in competition with the person applying to use the arrangements;(b)  the fact that the goods are produced in the Community by a single undertaking.Article 61.  For the purposes of Article 6 (4) of the basic Regulation the value limit shall be 200 000 ECU per authorization, irrespective of the number of operators carrying out the processing operation.However, the value limit for the goods and products listed in Annex III shall be 100 000 ECU.2.  The value referred to in paragraph 1 shall be the customs value of the goods estimated on the basis of the particulars known and the documents presented at the time when the application is lodged.3.  The application of paragraphs 1 and 2 may be suspended in respect of particular import goods in accordance with the procedure described in Article 31 (2) and (3) of the basic Regulation.Article 71.  For the purposes of Article 7 of the basic Regulation, the economic conditions shall be deemed to be fulfilled in respect of a given type of goods to be entered for the arrangements within a given period where the applicant:(a)  obtains 80 % of his supplies of such goods for the period in question in the customs territory of the Community;(b)  is trying to guard against real supply problems, proven to the satisfaction of the customs authority, for that type of goods, and the proportion of Community supplies is lower than the percentage indicated at (a);(c)  satisfies the customs authority that he has taken the necessary steps to obtain goods for processing on the Community market but has met with no response from Community producers.2.  Paragraph 1 (a) shall not apply to goods falling within Annex II of the Treaty.Article 81.  An authorization for use of the suspension system may be issued only on condition that all compensating products are to be exported.The condition shall not apply, however, to secondary compensating products whose economic importance does not exceed that of the main compensating products.2.  Where it can be shown that an undertaking is engaged in continuous production for both Community and third-country markets and the applicant is unable to state precisely the proportion of compensating products which will be exported from the customs territory of the Community, the customs authority shall issue an authorization for use of the suspension system based on a reasonable estimate of such proportion.CHAPTER IIIEQUIVALENT COMPENSATION AND PRIOR EXPORTATIONArticle 9Without prejudice to Article 10, where use is to be made of equivalent compensation or prior exportation, the equivalent goods must fall within the same subheading of the Common Customs Tariff, be of the same commercial quality and have the same technical characteristics as the import goods.Article 10Where the circumstances so warrant, the customs authority may allow the equivalent goods to be at a more advanced stage of manufacture than the import goods, provided that the essential part of the processing to which the said equivalent goods are subjected is carried out in the premises of the holder of the authorization or in the premises where the operation is being carried out on his behalf.Article 11Special provisions, set out in Annex IV, shall apply in respect of the goods referred to in that Annex.Article 121.  The change in customs position described in Article 2 (3) of the basic Regulation shall be effected as follows:(a)  In the case of equivalent compensation without prior exportation, the change in customs position of the import goods and the equivalent goods shall take place at the time of acceptance of the document placing the compensating products or unprocessed goods under one of the customs procedures referred to in Article 18 of the basic Regulation.However, where the holder of the authorization puts the import goods on the Community market either in the unaltered state or in the form of compensating products before the arrangements have been discharged, the change in customs position of the import goods and the equivalent goods shall take place at the time the goods are put on the market;(b)  In the case of prior exportation:- the change in the customs position of the exported compensating products shall take place at the time of acceptance of the export declaration and on condition that the import goods are entered for the arrangements,- the change in the customs position of the import goods and the equivalent goods shall take place at the time of acceptance of the declaration entering them for the arrangements.2.  The change in customs position referred to in paragraph 1 shall not alter the origin of the exported goods.3.  In the event of the total destruction or irretrievable loss of goods in the unaltered state or compensating products the share of import goods destroyed or lost shall be calculated by reference to the proportion of import goods in stocks of goods of the same kind held by the holder of the authorization at the time when the destruction or loss occurred, unless he can produce evidence of the actual quantity of import goods destroyed or lost.CHAPTER IVTRIANGULAR TRAFFICArticle 13The customs authority of the Member State referred to in Article 3 of the basic Regulation may allow triangular traffic only as part of the prior exportation system.CHAPTER VISSUING THE AUTHORIZATIONArticle 141.  Without prejudice to Article 26, authorizations shall be made out in writing and shall conform to the model set out in Annex II. They shall contain at least the particulars there indicated. Authorizations must be signed and dated.2.  Authorizations shall be addressed to the applicant.3.  Authorizations shall take effect on the date of issue.4.  In cases which can be shown to be exceptional, the customs authority may issue a retroactive authorization.However, the retroactive effect of such authorization may not go back beyond the time when the application was lodged.5.  The customs authorities shall keep copies of authorizations for at least three calendar years after the end of the year of their expiry.Article 15The period of validity of an authorization shall be set by the customs authority, having regard to the economic conditions and the specific needs of the applicant.Where an authorization is for a period exceeding two years the conditions on which it was issued shall be reviewed periodically at intervals specified in the authorization.TITLE IIIOPERATION OF THE ARRANGEMENTSCHAPTER ISPECIFIC COMMERCIAL POLICY MEASURESArticle 16Where non-Community goods are entered for the arrangements using the suspension system, any specific commercial policy measures to which imports of the said goods are subject shall not apply.Article 17Non-Community goods, even where they are not liable for import duties, may also be entered for the arrangements using the suspension system:(a)  with a view to non-application of specific commercial policy measures applying to the goods;(b)  with a view to non-application of specific commercial policy measures applying to export of the goods in the unaltered state or the compensating products, without prejudice to specific commerical policy measures applying to exports of products originating in the Community.CHAPTER IIFORMALITIES FOR ENTRY OF GOODS FOR ARRANGEMENTS (SUSPENSION SYSTEM) AND FORMALITIES FOR RELEASE OF GOODS FOR FREECIRCULATION (DRAWBACK SYSTEM)Section 1Normal procedureArticle 181.  The entry of goods for the arrangements using the suspension system shall be subject to the lodging of a declaration of entry for the arrangements. The person making the declaration is hereinafter referred to as the 'declarant'.2.  Paragraph 1 shall also apply to the entry for the arrangements of import goods under the prior exportation system.3.  The declaration referred to in paragraph 1 must be lodged at a competent customs office in the Member State where the authorization was issued. However, where the triangular traffic system is used, the declaration entering the import goods for the arrangements shall be lodged at the customs office indicated on information sheet INF 5, referred to in Article 32.Article 191.  The declaration referred to in Article 18 must be made in writing on a form corresponding to the appropriate official model laid down by the customs authority.2.  The declaration must be signed and shall contain the particulars necessary for the identification of the goods and the application of any import duties for which they may be liable.In particular it must contain:(a) the name or business name and address of the declarant;(b) where the holder of the authorization is not the same person as the declarant, the name or business name and address of the holder of the authorization;(c) where the operator is not the same person as either the declarant or the holder of the authorization, the name or business name and address of the operator;(d) the description of the goods as specified in the authorization;(e) the Common Customs Tariff subheading of the goods and their description in conformity with the nomenclature of the Common Customs Tariff or in terms sufficiently precise to allow the customs authority to determine immediately and unambiguously that they correspond to the subheading declared;(f) particulars of the authorization;(g) the number, nature, marks and identifying numbers of the packings containing the goods, or, in the case of unpacked goods, the number of articles covered by the declaration or the words 'in bulk', as appropriate, plus particulars enabling the unpacked goods to be identified;(h) where goods have been entered for the arrangements after a summary declaration has been lodged under Article 3 of Directive 68/312/EEC (1), reference to the summary declaration, unless the customs authority undertakes to enter this information itself;(i) where goods not covered by the summary declaration referred to in paragraph (h) are entered for the arrangements:- in the case of goods not previously entered for another customs procedure, the particulars needed to identify the means of transport by which they reached the customs office,- in the case of goods already entered for another customs procedure, the particulars needed for discharge of that procedure,- in the case of goods placed in a free zone, where applicable, the particulars needed to identify the means of transport by which the goods reached the customs office;(j) the quantity of goods;(k) in the case of goods liable to an ad valorem duty, their customs value calculated in accordance with Regulation (EEC) N° 1224/80 (2);(l) in the case of goods liable to a specific duty, indication of quantity and any additional quantitative particulars which may be necessary for application of the duty;(m) in the case of goods liable to an ad valorem duty with a minimum charge based on specific factors, all the information referred to in paragraphs (k) and (l);(n) the country of consignment of the goods within the meaning of Article 10 of Regulation (EEC) N° 1736/75 (3) and their country of origin either within the meaning of Regulation (EEC) N° 802/68 (4) or, in the case of goods which qualify by reason of their origin for preferential treatment, within the meaning of the Community or contractual provisions on which such preferential treatment is based.Article 201.  The customs authority may require that the authorization be presented when the declaration or, where the drawback system is used, the entry for release for free circulation, is lodged.2.  The said declaration or entry must be accompanied by all other documents whose presentation is necessary for entry for the arrangements or for free circulation, as the case may be.(1) OJ N° L 194, 6. 8. 1968, p. 13.(2) OJ N° L 134, 31. 5. 1980, p. 1.(3) OJ N° L 183, 14. 7. 1975, p. 3.(4) OJ N° L 148, 28. 6. 1968, p. 1.3.  The customs authority may agree that the documents in question be held at its disposal rather than accompanying the declaration or entry.Article 21An entry for release for free circulation made out in connection with the drawback system must include, in addition to the particulars required for release for free circulation and a reference to the authorization, the following particulars:(a)  where the holder of the authorization is not the same person as the declarant, the name or business name and address of the holder of the authorization;(b)  where the operator is not the same person as either the declarant or the holder of the authorization, the name or business name and address of the operator;(c)  the description of the goods as specified in the authorization.Article 22The customs authority may agree that the particulars referred to in Articles 19 (2) (b) and (c) and 21 (a) and (b) need not be supplied where the authorization is presented at the time when the declaration or entry is lodged.Article 231.  Article 4 (3), (4) and (5) and Articles 5 to 10 of Commission Regulation (EEC) N° 1751/84 of 13 June 1984 laying down certain provisions for the application of Council Regulation (EEC) N° 3599/82 on temporary importation arrangements (5) shall apply mutatis mutandis.2.  Acceptance of a declaration under Article 18 or entry under Article 21 shall be subject to issue of an inward processing authorization. In cases which can be shown to be exceptional, however, the customs authority may accept the declaration or entry without such authorization having been issued, provided the application was submitted before such acceptance.Section 2Simplified proceduresArticle 241.  Provided the proper conduct of operations is not thereby affected, the customs authority, at the declarant's request and on conditions it shall lay down, shall agree that:(5) OJ N° L 171, 29. 6. 1984, p. 1.(a)  a declaration under Article 18 or entry under Article 21 need not contain some of the particulars referred to in Article 19 or 21 as the case may be, or need not be accompanied by some of the documents referred to in Article 20;(b)  a declaration under Article 18 or entry under Article 21 can be replaced by a commercial or administrative document, accompanied by an application for entry for the arrangements or use of the drawback system, signed by the declarant;(c)  the goods can be entered for the arrangements or the drawback system used without the goods having been presented and before the declaration or entry is lodged.2.  Where use of the simplified procedure referred to in paragraph 1 (c) is authorized, the person authorized shall, upon arrival of the goods on the designated premises:(a)  duly notify the customs authority of such arrival in the manner specified by the said authority.However, the customs authority may:- permit the authorized person to notify it of the arrival of the goods when this is imminent, rather than requiring him to wait for their actual arrival;- in special circumstances, where the nature of the goods and the rapid import turnover warrant this, exempt the authorized person from the requirement to notify each arrival of goods, provided that he supplies all the information the customs authority judges necessary to enable it to exercise its right to examine the goods should the need arise;(b)  enter the goods in his accounts. Such entry shall be effected in the manner specified by the customs authority. It shall indicate the date of such entry. Such entry may be replaced by any other formality of comparable probative effect stipulated by the customs authority;(c)  make available to the customs authorities all documents relating to the entry of the goods for the arrangements.3.  The following shall not be authorized by the customs authority to use the simplified procedures described in paragraph 1;(a)  persons who do not offer adequate guarantees as to the proper conduct of the operations;(b)  persons whose accounts are not such as to enable the customs authority to check on the operations where thesimplified procedure described in paragraph 1 (c) is used.The customs authority may withhold authorization to use the simplified procedures from persons who do not frequently enter goods for the arrangements.Article 251.  Incomplete declarations or entries, commercial or administrative documents and entries in the accounts as referred to in Article 24 must contain at least the particulars necessary for identification of the goods.Acceptance by the customs authority of such incomplete declaration or entry, commercial or administrative documents or entry in the accounts shall have the same force in law as acceptance of the declaration referred to in Article 18 or entry as referred to in Article 21.Any examination of the goods shall be based on the particulars given in the incomplete declaration or entry, commercial or administrative document or entry in the accounts.In the cases referred to in Article 24 (1) (c), entry of the goods in the accounts shall be equivalent to their release.2.  Additional declarations or declarations relating to goods covered by the procedure authorized under Article 24 (1) must be lodged, or documents omitted under Article 24 (1) (a) must be supplied, at the competent customs office, and no later than the time when the bill of discharge is lodged.Acceptance of such declaration shall not have the same force in law as acceptance of the declaration referred to in Article 18 or entry referred to in Article 21.3.  The customs authority may agree that the declaration or additional declaration be of a general, periodic or recapitulative nature.Article 261.  Where Articles 24 and 25 are not applied, the customs office designated by the customs authority shall, in respect of operations relating to:(a)  repair of goods, including restoring them to their original condition and putting them in order, or(b)  the usual forms of handling to which goods may be subject under the Community rules governing customs warehouses and free zones,permit lodging of the inward processing declaration or, under the drawback system, the entry for release for free circulation to constitute an application.In this case acceptance of the declaration or entry shall constitute the authorization and shall be subject to the conditions governing the granting of the authorization.2.  The customs office designated by the customs authority may apply the procedure described in paragraph 1 in respect of goods to be used for inward processing operations other than those referred to in that paragraph.Each Member State shall notify the Commission of the designated offices, specifying the type of goods and the processing operations covered in each case.3.  Where paragraphs 1 and 2 are applied the declaration shall contain the following additional particulars:(a) where the operator is not the same person as the declarant, the operator's name or business name and address;(b) the nature of the processing operations;(c) the trade and/or technical description of the compensating products;(d) the rate of yield or, where appropriate, the method by which the rate will be established;(e) the time limit for placement under one of the customs procedures referred to in Article 18 or 27 of the basic Regulation;(f) the place where the processing operation is expected to be carried out.CHAPTER IIITIME LIMITS PROVIDED FOR IN ARTICLE 14 OF THE BASIC REGULATIONArticle 27Where the circumstances so warrant, the time limit set for placement under one of the procedures referred to in Article 18 or 27 of the basic Regulation may be extended, even when the limit originally set has expired.Article 28In the case of agricultural products of the kind referred to in Article 1 of Regulation (EEC) N° 565/80 (1) which are to be exported in the form of processed products or goods within the meaning of Article 2 (b) or (c) of that Regulation, the period within which the import goods must be dealt with in one of the ways specified in Article 18 of the basic Regulation may not exceed six months.(1) OJ N° L 62, 7. 3. 1980, p. 5.Article 291.  The time limit referred to in Article 14 (3) of the basic Regulation shall be set with due regard to the time needed for the supply and transport of the import goods to the Community.2.  The time limit referred to in paragraph 1 may not exceed:- three months in the case of goods subject to a price-regulating mechanism,- the period of validity of the import licence issued in accordance with Regulation (EEC) N° 2630/81 (2) in the case of raw sugar falling within subheading 17.01 B of the Common Customs Tariff,- six months in the case of all other goods. This period may, however, be extended where the holder of the authorization submits a reasoned request, provided that the total period does not exceed 12 months. Where the circumstances so warrant, the extension may be allowed even after the original time limit has expired.Article 301.  The time limits referred to in Articles 27 and 28 shall run from the date of acceptance of the declaration entering the goods for the arrangements or, under the drawback system, of the entry for release for free circulation.2.  The time limits set in accordance with Article 29 shall run from the date of acceptance of the export declaration.CHAPTER IVSTANDARD RATES OF YIELDArticle 311.  Where the import goods for inward processing are listed in column 1 of Annex V and the compensating products obtained are those in columns 3 and 4, the customs authority shall apply the standard rates of yield shown in column 5.2.  The standard rates of yield referred to in paragraph 1 shall apply only to goods of sound, genuine and merchantable quality which conform to any standard quality laid down in Community rules.3.  Each Member State shall notify the Commission of cases in which it proves impossible to apply the standard rates referred to in paragraph 1 because, although the import of goods processed are listed in column 1 of Annex V, the processing operations produce compensating products other than those shown in columns 3 and 4 at the same stage of manufacture.(2) OJ N° L 258, 11. 9. 1981, p. 16.CHAPTER VTRIANGULAR TRAFFICArticle 321.  For triangular traffic the information sheet referred to as 'information sheet INF 5' shall be used.2.  Information sheet INF 5 shall be made out on a form corresponding to the model and indications in Annex VI, in one original and three copies which must be presented together at the customs office where the export declaration is lodged.Information sheet INF 5 shall be made out in respect of the quantity of import goods corresponding to the quantity of compensating products exported. Where it is planned to import the goods in successive consignments, more than one INF 5 form may be made out.Article 331.  The customs office where the export formalities are carried out shall endorse information sheet INF 5. It shall retain copy N° 1 and return the original and the other copies to the declarant.The customs office where export from the customs territory of the Community takes places shall certify on the original and copies, which it shall then return to the declarant, that the products have left the said territory.2.  Where the customs office where the export formalities are carried out is not the office competent to check on the arrangements, it shall send copy N° 1, endorsed, to the latter office.Article 341.  The import goods may be entered for the arrangements at a customs office of importation, other than that specified, if so allowed by the customs office of the exporting Member State which is competent to check on the arrangements or by the customs office of the importing Member State which shall notify this change to the customs office responsible for control of the arrangements.2.  In the event of theft, loss or destruction of information sheet INF 5, the importer may ask the customs office which endorsed it for a duplicate to be issued. The said office shallcomply with this request provided it can be shown that the import goods in respect of which the duplicate is requested have not been entered for the arrangements.The original and copies of the information sheet INF 5 so issued shall bear one of the following indications:DUPLICADODUPLIKATÁÍÔÉÃÑÁOEÏDUPLICATEDUPLICATADUPLICATODUPLIKAATSEGUNDA VIAArticle 351.  The declaration entering import goods for the arrangements must be accompanied by the original and copies Nos 2 and 3 of information sheet INF 5.2.  The customs office where the inward processing declaration is presented shall note on the original and copies Nos 2 and 3 of information sheet INF 5 the quantity of import goods entered for the arrangements and the date of acceptance of the corresponding declaration. It shall send without delay copy N° 3 to the customs office in the exporting Member State competent to check the arrangements, returning the original to the declarant and retaining copy N° 2.Article 36On receipt of copy N° 3 the customs office competent to check on the arrangements shall notify the holder of the authorization without delay of the quantity of import goods entered for the arrangements and the date of such entry.Article 371.  Under the triangular traffic system:(a)  where the import goods are liable, in trade between the exporting and importing Member States, to customs duties, charges having equivalent effect or other charges provided for under the common agricultural policy,the specific arrangements applicable to certain goods resulting from the processing of agricultural products, or provided for, where appropriate, in an Act of Accession; or(b)  where the import goods qualify, in the trade referred to at (a), for the payment of amounts provided for under the common agricultural policy, the specific arrangements applicable to certain goods resulting from the processing of agricultural products, or provided for, where appropriate, in an Act of Accession,such duties, charges or amounts shall apply in the same way as if the import goods in question had been:- sent by the exporter of the compensating products from the exporting Member State to the importing Member State, and- brought into the importing Member State from the exporting Member State by the person in the name or on behalf of whom the inward processing declaration in respect of the said goods was made out.2.  The duties, charges and amounts referred to in paragraph 1 shall be applied by the importing Member State at the time when the import goods are entered for the arrangements, and by the exporting Member State at the time when the arrangements are discharged.3.  The particulars used for applying paragraph 1 shall be those obtaining on the date of acceptance of the declaration.Article 38This chapter shall also apply where the prior exportation of compensating products and importation of import goods take place in a single Member State. However, Member States may lay down other procedures.CHAPTER VISPECIAL PROVISIONS FOR USE OF THE DRAWBACK SYSTEMArticle 391.  Goods released for free circulation under the drawback system and compensating products obtained under that system may undergo successive processing operations under other authorizations permitting use of the same system. Where necessary, the customs authority shall issue a new authorization with reference to the authorization previously issued.2.  Where another authorization has been granted under the conditions laid down in paragraph 1, account shall be taken of the time set in this new authorization for the repayment or remission of duties.CHAPTER VIIGENERAL PROVISIONS FOR IMPLEMENTATION OF ARTICLES 18 AND 27 OF THE BASIC REGULATIONArticle 401.  Without prejudice to use of the simplified procedures, any compensating products or goods in the unaltered state to be placed under one of the customs procedures referred to in Article 18 or 27 of the basic Regulation must be produced at a customs office empowered by the customs authority to supervise the arrangements in order to undergo the customs formalities specified for the procedure in question under the general provisions applicable.However, the customs authorities may allow the products or goods concerned to be produced at a customs office other than that referred to in the first subparagraph.2.  Compensating products or goods in the unaltered state shall be deemed to have been produced at a customs office when their presence on the premises of that office or on other premises designated by the customs authority has been notified to the said authority in the manner required to enable it to carry out supervision or checks.Article 41The declaration or application to place compensating products or goods in the unaltered state under one of the customs procedures referred to in Article 18 or 27 of the basic Regulation must contain the particulars necessary for discharge of the arrangements or to support an application for drawback.CHAPTER VIIISPECIAL PROVISIONS CONCERNING EXPORTSection 1Normal procedureArticle 42The export, either direct or after one of the customs procedures referred to in Article 18 (2) (a) or (b) or 27 of the basic Regulation, of compensating products or goods in the unaltered state shall be subject to completion of the export formalities.Article 431.  The lodging, acceptance, correction and cancellation of the export declaration, examination of the declared compensating products or goods in the unaltered state,the possible taking of samples, checking of the export declaration and related documents, the results of such checks and the granting of authorization to export the products or goods shall be governed by the provisions adopted by Member States pursuant to Council Directive 81/177/EEC of 24 February 1981 on the harmonization of procedures for the export of Community goods (1) and its implementing(1) OJ N° L 83, 30. 3. 1981, p. 40.Directive 82/347/EEC (1), having regard to the objectives of this Regulation.2.  Where the prior exportation system is used, Article 23 (2) shall apply mutatis mutandis.Section 2Simplified proceduresArticle 441.  Provided the proper conduct of operations is not thereby affected, the customs authority, at the request of the person concerned and on conditions it shall lay down, shall agree that:(a)  the export declaration may be replaced by a commercial or administrative document accompanied by an export application signed by the declarant;(b)  the compensating products may be exported without being presented to the customs authority competent to check on exportation and before lodging of the export declaration.2.  Where use of the simplified procedure described in paragraph 1 (b) is authorized, the person authorized shall:(a)  give the customs authority competent to check on exportation, referred to in paragraph 1 (b), notice of dispatch in the manner specified by the said authority, so as to enable such authority to check on consignments, if necessary, before their dispatch;(b)  make out an export declaration or the document referred to in paragraph 1 (a);(c)  enter the goods in the unaltered state or compensating products to be exported in his accounts. Such entry shall be effected in the manner laid down by the customs authority. It shall indicate the date of entry. Such entry may be replaced by any other formality of comparable probative effect stipulated by the customs authority;(d)  make available to the customs authority all documents relating to the export of the goods in the unaltered state or compensating products in question.3.  The following shall not be authorized by the customs authority to use the simplified procedures described in paragraph 1:(a)  persons who do not offer adequate guarantees as to the proper conduct of the inward processing operations;(b)  persons whose accounts are not such as to enable the customs authority to check on the operations where the simplified procedure described in paragraph 1 (b) is used.(1) OJ N° L 156, 7. 6. 1982, p. 1.The customs authority may withhold authorization to use the simplified procedures from persons who do not frequently carry out inward processing operations.Article 451.  The commercial or administrative document and entry in the accounts referred to in Article 44 must contain at least the particulars necessary for identification of the goods or products and a reference to the authorization.Acceptance by the customs office of such commercial or administrative document or entry in the accounts shall have the same force in law as acceptance of the export declaration.Any examination of the goods or products shall be based on the particulars given in the commercial or administrative document or entry in the accounts.In cases covered by Article 44 (1) (b) entry of the goods in the accounts shall be equivalent to their release.2.  The declaration relating to goods or products covered by the authorization referred to in paragraph 1 must be lodged at the competent customs office within the period stipulated by the customs authority. Acceptance of such declaration shall not have the same force in law as acceptance of the export declaration.3.  The customs authority may agree that the declaration should be of a general, periodic or recapitulative nature.CHAPTER IXSPECIAL PROVISIONS CONCERNING RELEASE FOR FREE CIRCULATIONSection 1Circumstances in which goods may be released for free circulationArticle 461.  The release for free circulation of compensating products or goods in the unaltered state may be justified inter alia:(a)  where changed conditions on the third-country market render the planned export operation uneconomic;(b)  where the products concerned are secondary compensating products whose economic importance does not exceed that of the main compensating products;(c)  in the case of goods in the unaltered state or compensating products under an authorization issued in accordance with Article 8 (2);(d)  where the proposed processing operation cannot be carried out for technical and/or economic reasons.2.  The customs authority may authorize release for free circulation on a case-by-case or general basis, provided this does not contravene other Community provisions relating to release for free circulation.Section 2Simplified proceduresArticle 471.  Provided the proper conduct of operations is not thereby affected, the customs authority, at the request of the person concerned and on conditions it shall lay down, shall agree that:(a)  the entry for release for free circulation need not contain some of the particulars asked for;(b)  the entry may be replaced by a commercial or administrative document accompanied by an application signed by the declarant for release for free circulation;(c)  the compensating products or goods in the unaltered state may be released for free circulation without being presented and before the entry is lodged.2.  Where use of the simplified procedure described in paragraph 1 (c) is authorized, the person authorized shall:(a)  notify the customs authority in the manner specified by the said authority, and before the goods leave his premises, of the imminent dispatch of consignments, and/or supply the said authority with all the information it judges necessary to enable it to exercise its right to examine the goods should the need arise;(b)  enter the compensating products or goods in the unaltered state in his accounts. Such entry shall be effected in the manner laid down by the customs authorities. It shall indicate the date of entry. Such entry may be replaced by any other formality of comparable probative effect stipulated by the customs authority;(c)  make available to the customs authority all documents relating to the release for free circulation of the compensating products or goods in the unaltered state in question, and in particular the import licence required under the common agricultural policy or documents provided for by the common commercial policy.3.  The following shall not be authorized by the customs authority to use the simplified procedures described in paragraph 1:(a)  persons who do not offer adequate guarantees as to the proper conduct of the processing operation;(b)  persons whose accounts are not such as to enable the customs authority to check on the operations where the simplified procedure described in paragraph 1 (c) is used.The customs authority may withhold authorization to use the simplified procedures from persons who do not frequently carry out processing operations.Article 481.  Incomplete entries, commercial or administrative documents and entry in the accounts as referred to in Article 47 must contain at least the particulars necessary for identification of the compensating products or goods and a reference to the authorization.Acceptance by the customs authority of such incomplete entry, commercial or administrative document or entry in the accounts shall have the same force in law as acceptance of the entry for release for free circulation.Any examination of the compensating products or goods shall be based on the particulars given in the incomplete entry, commercial or administrative document or entry in the accounts.In cases as referred to in Article 47 (1) (c), entry of the compensating products or goods in the accounts shall be equivalent to their release.2.  The additional declaration or declaration relating to products or goods covered by the authorization referred to in paragraph 1 must be lodged at the competent customs office within the period stipulated by the customs authority.Acceptance of such declaration shall not have the same force in law as acceptance of the entry for release for free circulation.3.  The customs authority may agree that the additional declaration or the declaration referred to in paragraph 2 should be of a general, periodic or recapitulative nature.Article 491.  Where a general authorization for release for free circulation has been issued in accordance with Article 46, the import goods may be put on the Community market either in the form of compensating products or of goods in the unaltered state without the formalities for release for free circulation being completed at the time of their being put on the market.Goods put on that market in such a manner shall not be deemed solely for the purposes of paragraph 2 as having been treated in one of the ways specified in Article 18 of the basic Regulation.2.  Import goods in the form either of compensating products or of goods in the unaltered state covered by a general authorization for release for free circulation issued in accordance with Article 46 which have not been dealt with in one of the ways specified in Article 18 of the basic Regulation upon the expiry of the time limit shall be deemed to have been released for free circulation and the declaration of release for free circulation shall be considered to have been lodged and accepted and release granted at that time without it being possible to grant any deferral of payment.3.  For the purposes of applying Regulation (EEC) N° 222/77 (1), goods put on the market in accordance with paragraph 1 shall be regarded forthwith as Community goods.Section 3Release for free circulation of goods subject to specific commercial policy measuresArticle 501.  The release for free circulation of import goods in the form either of compensating products or of goods in the unaltered state shall be subject to the application by the customs authority of any specific commercial policy measures in force for the import goods at the time when the entry for release for free circulation was accepted.2.  Where release for free circulation is requested in a Member State other than that in which use of the arrangements was authorized, it shall be subject to the application by the customs authority in the Member State of authorization or, at the declarant's request, by the customs authority in the Member State where release is requested, of any specific commercial policy measures in force for the import goods in the Member State concerned at the time when the entry for release for free circulation was accepted.CHAPTER XPROVISIONS RELATING TO DUTIES AND OTHER CHARGES AND APPLICATION OF MONETARY COMPENSATORY AMOUNTSSection 1Duties and other charges and application of monetary compensatory amountsArticle 511.  The duties to be charged under Article 20 (1) of the basic Regulation on import goods eligible, at the time when the declaration referred to in Article 18 was accepted, for favourable tariff treatment by reason of their end-use shall be calculated at the rate corresponding to such end-use without special authorization for the granting of such treatment being required, provided that the conditions attaching to the granting of favourable tariff treatment are fulfilled.(1) OJ N° L 38, 9. 2. 1977, p. 1.2.  Paragraph 1 shall apply only where the goods have been put to the end-use qualifying them for favourable tariff treatment before expiry of the time-limit set for that purpose by the Community provisions governing the conditions under which such goods may be accorded the said treatment. The time-limit shall run from the time of acceptance of the declaration referred to in Article 18. It may be extended by the customs authority where the goods have not been put to the end-use in question as a result of unforeseeable circumstances, force majeure or inherent technical exigencies of the processing operation.Article 521.  The list of compensating products and processing operations to which the first indent of Article 21 (1) (a) of the basic Regulation applies is given at Annex VII.2.  The date to be used for calculating import duties on the compensating products referred to in paragraph 1 shall be that on which the entry for release for free circulation is accepted.3.  The customs authority shall permit application of the first indent of Article 21 (1) (a) of the basic Regulation in respect of waste, scrap, residues and rejects other than those mentioned in the list referred to in paragraph 1.The Member States shall notify the Commission every six months of cases in which this paragraph has been applied.Article 531.  Where the import goods are olive oils falling within subheadings 15.07 A I or 15.07 A II of the Common Customs Tariff and their release for free circulation either in the unaltered state or in the form of compensating products falling within Common Customs Tariff subheading 15.07 A II has been authorized, the agricultural levy to be charged shall be:- the agricultural levy indicated on the import licence issued under the tendering procedure, subject to the provisions of Article 4 (2) of Regulation (EEC) N° 3136/78 (2), or- the last minimum agricultural levy fixed by the Commission before the date of acceptance of the entry for free circulation, when the licence referred to in Article 6 of the said Regulation is submitted or when the quantity released for free circulation does not exceed 100 kilograms.(2) OJ N° L 370, 30. 12. 1978, p. 72.2.  Paragraph 1 shall also apply where the import goods are olives falling within subheadings 07.01 N II or 07.03 A II of the Common Customs Tariff and the release for free circulation of compensating products falling within tariff subheading 15.07 A II has been authorized.Article 541.  In the event of the release for free circulation in a Member State other than the one in which use of the arrangements was authorized of goods in the unaltered state or compensating products, the said Member State shall:- collect import duties other than those referred to in the second indent which are mentioned on information sheet INF 1 provided for in Article 73, in accordance with the corresponding indications,- apply any monetary compensatory amount in force at the time of acceptance of the entry for release for free circulation, without prejudice to Article 10 of Council Regulation (EEC) N° 1677/85 of 11 June 1985 on monetary compensatory amounts in the agricultural sector (1). In the event of release for free circulation of goods in the unaltered state the amount shall be that applying to those goods; where compensating products are released for free circulation the amount shall be that applying to those products.2.  In the event of export, as defined in Article 1 (2) (c) of Commission Regulation (EEC) N° 3154/85 of 11 November 1985 laying down detailed rules for the administrative application of monetary compensatory amounts (2), the exporting Member State shall apply the monetary compensatory amounts in accordance with Articles 7 and 8 of the said Regulation.Article 551.  Where the compensating products are released for free circulation and the customs debt is calculated in accordance with Article 20 of the basic Regulation, on the basis of the items of charge appropriate to the import goods, the particulars mentioned in Article 2 (1) (h), (i), (j) and (k) of Commission Directive 82/57/EEC of 17 December 1981 laying down certain provisions for implementing Council Directive 79/695/EEC on the harmonization of procedures for the release of goods for free circulation (3), shall refer to the goods in the unaltered state.2.  The particulars referred to in paragraph 1 need not be supplied where information sheet INF 1 or another document containing the same particulars as the INF 1 sheet, issued in the Member State where release for free circulation takes place, accompanies the entry for release for free circulation.(1) OJ N° L 164, 24. 6. 1985, p. 6.(2) OJ N° L 310, 21. 11. 1985, p. 9.(3) OJ N° L 28, 5. 2. 1982, p. 38.Section 2Proportion of import goods incorporated in compensating productsArticle 56The proportion of import goods incorporated in compensating products shall be calculated when necessary in order to determine the import duties to be charged, repaid or remitted. Such calculation shall not be effected when, inter alia, the amount of the debt is determined solely on the basis of Article 21 of the basic Regulation.Article 57The quantitative scale method (compensating products) shall be used where one kind of compensating product only is derived from the inward processing operations. In that case the quantity of import goods corresponding to the quantity of compensating products in respect of which a customs debt has arisen shall be calculated by applying to the whole amount of the said goods a coefficient corresponding to the ratio of the quantity of compensating products in respect of which a customs debt arises to the total quantity of compensating products.Article 581.  The quantitative scale method (import goods) shall be applied in accordance with this Article where all elements of the import goods are found in each compensating product.In deciding whether this method shall apply, losses shall not be taken into account.2.  The quantity of import goods used in the manufacture of each compensating product shall be determined by successively applying to the total quantity of import goods a coefficient corresponding to the ratio of the quantity of the said goods found in each type of compensating product to the total quantity of the goods found in the compensating products as a whole.3.  The quantity of import goods corresponding to the quantity of compensating products in respect of which a customs debt has arisen shall be determined by applying the coefficient arrived at by the method indicated in Article 57 to the quantity of import goods used in the manufacture of the said product calculated in accordance with paragraph 2.Article 591.  Where Articles 57 and 58 do not apply, the value scale method shall be used in accordance with this Article. However, with the agreement of the holder of the authorization and for the purposes of simplification, the customs authority may apply the quantitative scale method (import goods) instead of the value scale method where either method would give similar results.2.  In order to determine the quantity of import goods used in the manufacture of each type of compensating product, successive coefficients corresponding to the ratio of the value of each compensating product to the total value of those products, calculated in accordance with paragraph 3, shall be applied to the total quantity of import goods.3.  The value of each of the different compensating products to be used for applying the value scale shall be:- the recent selling price in the Community of identical or similar products, provided that this has not been influenced by the relationship between buyer and seller, or, where this is not known,- the latest ex-works price in the Community, provided that this has not been influenced by the relationship between buyer and seller.Where the value cannot be ascertained under the preceding subparagraph it shall be determined by the customs authority using any reasonable method.4.  The quantity of import goods corresponding to the quantity of compensating products in respect of which a customs debt has arisen shall be calculated by applying the coefficient arrived at by the method indicated in Article 57 to the quantity of import goods used in the manufacture of the products in question, calculated in accordance with paragraph 2.Article 60The calculations referred to in Articles 57 to 59 shall be effected on the basis of the examples set out in Annex XI or by any other method giving the same results.TITLE IVBILL OF DISCHARGE AND REPAYMENT CLAIMCHAPTER IBILL OF DISCHARGEArticle 611.  Where the suspension system is used, the holder of the authorization must supply the customs authority with a bill of discharge within a reasonable period following expiry of the time limit set in accordance with Article 14 of the basic Regulation, unless the said authority itself undertakes to draw up such a bill.On the basis of the rate of yield established, the bill of discharge shall show the quantity of import goods, giving particulars of the inward processing declarations, and the quantity of compensating products, giving particulars of the documents under which the products were placed under one of the procedures referred to in Article 18 of the basic Regulation. The bill of discharge shall also show the quantity of goods deemed to have been released for free circulation in accordance with Article 49 and indicate the amount of import duties which would be payable.2.  Where determining the amount of import duties requires identification of other items of charge relating to the import goods, the bill of discharge shall in addition show such items and, where appropriate, the proportion of the import goods incorporated in the compensating products, calculated in accordance with Articles 57 to 60.3.  Any document relating to goods deemed to have been released for free circulation in accordance with Article 49 which is necessary for the proper implementation of the provisions governing the release of goods for free circulation must be made available to the customs authority by the holder of the authorization.4.  The customs authority may agree that the bill of discharge referred to in paragraph 1 be made out by computer or in such other manner as the said authority shall stipulate.Article 62The customs authority may permit the bill of discharge to be made out directly on the inward processing declaration.Article 63The customs authority shall annotate the bill of discharge on the basis of the check which has been carried out, informing the holder of the authorization, if necessary, of the result of the check and shall keep the bill of discharge and related documents for at least three calendar years from the end of the year in which the bill was drawn up. However, the customs authority may decide that documents relating to the bill of discharge should be kept by the holder of the authorization, in which case the said documents shall be kept for the same period.Article 641.  Where import goods have been entered for the arrangements by virtue of a single authorization but under several declarations, compensating products or goods in the unaltered state shall be deemed for the purposes of Article 18 of the basic Regulation to have been obtained from the import goods entered for the arrangements under the earliest of the declarations.2.  Where the holder of the authorization can show the specific import goods from which the compensating products or goods in the unaltered state referred to in paragraph 1 were obtained, the said paragraph 1 shall not apply.CHAPTER IIREPAYMENT CLAIMArticle 65Where Article 39 is applied, repayment or remission of import duties on specified goods may be claimed only by one holder of an authorization.Article 661.  The repayment or remission of import duties to the holder of the authorization shall be subject to the lodging by the said holder with the customs authority of the Member State referred to in Article 3 (1) of the basic Regulation of a claim, hereinafter referred to as the 'repayment claim'. Such claim must be submitted in duplicate.2.  The customs authority may agree that the repayment claim be made out by computer or in such other manner as the said authority shall stipulate.Article 671.  The repayment claim must contain, inter alia, the following particulars:(a) reference to the authorization;(b) the type and quantity of the import goods in respect of which repayment or remission is claimed;(c) the Common Customs Tariff subheading of the import goods;(d) the customs value of the import goods and the rate of import duties to which they are liable as agreed by the customs authority on the date of acceptance of the entry for release for free circulation in connection with the arrangements;(e) the date of release for free circulation of the import goods in connection with the arrangements;(f) reference to the entries under which the import goods were released for free circulation in connection with the arrangements;(g) the type and quantity of the compensating products and the customs procedure under which they are to be placed;(h) the value of the compensating products if the value scale method is used for the purpose of discharge;(i) the rate of yield;(j) reference to the declarations under which the compensating products were entered for one of the customs procedures referred to in Article 27 (1) of the basic Regulation;(k) the amount of import duties to be repaid or remitted, taking into account, inter alia, the import duties on the other compensating products.2.  The customs authority may agree that the claim should not contain some of the particulars referred to in paragraph 1 where these do not concern calculation of the amount to be repaid or remitted.3.  Where the customs authority decides that the entries and declarations referred to in paragraph 1 (f) and (j) respectpwd ively, and such other document as the said authority shall stipulate, should be kept by the holder of the authorization, the said entries, declarations and documents shall be made available to the customs authority.Article 681.  The time limit referred to in Article 27 (2) of the basic Regulation shall be set at a maximum of six months from the date on which the compensating products were dealt with under one of the procedures specified in Article 27 (1) of the said Regulation.2.  Where special circumstances so justify, the customs authority may extend the time limit referred to in paragraph 1 even after the expiry of that time limit.Article 69The customs authority shall annotate the repayment claim in accordance with the check carried out and shall inform the holder of the authorization of the result; it shall keep the claim and related documents for at least three calendar years from the end of the year in which it takes a decision on the claim. However, the customs authority may decide that documents relating to the claim should be kept by the holder of the authorization, in which case the said documents shall be kept for the same period.TITLE VADMINISTRATIVE COOPERATIONCHAPTER ICOMMUNICATION CONCERNING ECONOMIC CONDITIONSArticle 701.  The communication referred to in Article 8 of the basic Regulation must be transmitted to the Commission in the month following that in which the authorization was issued.2.  Where an authorization is issued under Article 9 of the basic Regulation the period referred to in paragraph 1 shall apply.Where the customs authority does not consider it desirable to issue the authorization before consultation has taken place at Community level, it shall transmit the particulars of the application to the Commission as soon as possible.3.  The Member States shall transmit to the Commission:(a)  in respect of each authorization where the value of the import goods per operator and per calendar year exceeds the limits set in Article 6, the particulars indicated in Annex VIII; such particulars need not be transmitted where the inward processing application has been issued on the basis of one or more of the economic conditions referred to by the following codes: 6107, 6201, 6202, 6301, 6302, or 6303;(b)  in respect of each application for an authorization rejected because the conditions are not considered to be fulfilled, the particulars indicated in Annex IX.4.  The information referred to in paragraph 3 shall be transmitted during the month following that in which the authorization was issued or the application for an authorization rejected, as the case may be. It shall be forwarded by the Commission to the other Member States and, where it gives rise to comment by a Member State or the Chairman of the Committee for Customs Procedures with Economic Impact shall be examined by the Committee.CHAPTER IIEXCHANGE OF INFORMATION BETWEEN CUSTOMS AUTHORITIESArticle 711.  Where the compensating products or goods in the unaltered state are placed in a free zone or under one of the customs procedures referred to in Article 18 (2) (a), (b) or (d) or in the second indent of Article 27 (1) of the basic Regulation, the box reserved for the description of goods on the document used for the procedure or in the free zone or another box intended for this purpose shall contain one of the following indications:- Mercancías PA,- A. F.-varer,- A. V.-Waren,- AAìðïñaaýìáôá AAÔ,- I. P. goods,- Marchandises PA,- Merci PA,- AV-goederen,- Mercadorias PA.2.  Where import goods are subject to specific commercial policy measures and such measures continue to be applicable at the time when the goods, either in the unaltered state or in the form of compensating products, are placed under one of the procedures mentioned in Article 18 of the basic Regulation or in a free zone, the indication referred to in paragraph 1 must be supplemented by one of the following:- Política commercial,- Handelspolitik,- AAìðïñéêÞ ðïëéôéêÞ,- Commercial policy,- Politique commerciale,- Politica commerciale,- Handelspolitiek.Article 72Where the products or goods referred to in Article 71 are placed under a customs procedure or in a free zone after having been in a free zone or under one of the customs procedures referred to in Article 18 (2) (a), (b) or (d) or in the second indent of Article 27 (1) of the basic Regulation, the customs authority shall satisfy itself that the indications mentioned in Article 71 (1) and, where appropriate, Article 71 (2), have been entered on the documents used for the procedure or in the free zone.Article 731.  Where release for free circulation of the compensating products or the goods in the unaltered state is requested in a Member State other than the one where use of the arrangements was authorized, the information sheet referred to in paragraph 2 shall be used.2.  The information sheet, referred to as the 'INF 1 sheet', shall comprise an original and one copy on a form conforming to the model and provisions set out in Annex X. However, the information sheet established in conformity with the model annexed to Directive 84/318/EEC (1) may continue to be used until stocks are exhausted. In this case, the notes concerning the INF 1 sheet set out in Annex X are applicable.Article 741.  Without prejudice to paragraph 5, where the release for free circulation of all or a part of the compensating products or goods in the unaltered state referred to in Article 71 is requested, the customs authority responsible for authorizing such release shall, using the INF 1 sheet endorsed by it, ask the customs authority which authorized use of the inward processing arrangements to indicate the import duties to be levied under Article 20 (1) or the second subparagraph of Article 27 (3) of the basic Regulation. The original of the INF 1 sheet shall be transmitted to the customs authority which authorized use of the inward processing arrangements, and the copy shall be kept by the customs authority which endorsed the sheet.2.  Where the application for release for free circulation related to products or goods referred to in Article 71 (2) and the specific commercial policy measures are to be applied in the Member State where use of the arrangements was authorized, the customs authority responsible for authorizing such release shall, using the INF 1 sheet endorsed by it, ask the customs authority which authorized use of the inward processing arrangements to indicate whether the specific commercial policy measures in force for goods entered for the said arrangements have in fact been applied. In that case the original of the INF 1 sheet shall be transmitted to the customs authority which authorized use of the inward processing arrangements, and the copy shall be kept by the customs authority which endorsed the sheet.Where the INF 1 sheet is used to apply specific commercial policy measures, the authority receiving it shall notify the holder of the authorization of the application.3.  Where the specific commercial policy measures are to be applied in the Member State where release for free circulation is sought, the customs authority responsible for authorizing such release shall, using the INF 1 sheet endorsed by it, ask the customs authority which authorized use of the inward processing arrangements to supply the particulars necessary for application of the said measures.4.  The customs authority to which the INF 1 sheet is addressed shall supply the information requested and return the original. However, it shall not be obliged to supply such information beyond the expiry of the period for which it is required to keep records.5.  The INF 1 sheet shall be endorsed by the customs authority which authorized use of the inward processing arrangements should the holder of the authorization so request. In this case, it shall give the original to the holder of the authorization and keep the copy.Article 75Where compensating products obtained in a Member State under an authorization with the drawback system are dispatched to another Member State with a T 1 document or one of the documents referred to in Article 7 of Regulation (EEC) N° 222/77, and these products are covered by a request for a new inward processing authorization, the customs authority of that other Member State responsible for issuing the new authorization, either with the suspension system or the drawback system where circumstances justify the release for free circulation of the products, shall use the INF 1 sheet to determine the amount of any import duties to be levied or the amount of the customs debt likely to be incurred.TITLE VIFINAL PROVISIONSArticle 76The following provisions are hereby repealed:(a)  Article 9 of Regulation (EEC) N° 645/75 (2);(b)  Article 7 of Regulation (EEC) N° 3136/78;(c)  Article 10 (7) of Regulation (EEC) N° 2630/81.(1) OJ N° L 166, 26. 6. 1984, p. 19.(2) OJ N° L 67, 14. 3. 1975, p. 1Article 77This Regulation shall enter into force on 1 January 1987.This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 24 November 1986.For the CouncilThe PresidentG. HOWEANNEX I LIST OF GOODS (PRODUCTION ACCESSORIES) AND USES THEREOF AS REFERRED TO IN ARTICLE 2 (a) catalysts, chemical-reaction accelerators, retardants or arresters;(b) goods needed to create the physical or chemical environment essential to the performance of certain processing operations:1. gases such as hydrogen, helium, argon and carbon dioxide; charcoal; solvents such as acetic acid;2. anti-oxidants, such as those added to tin baths used in production-line soldering or in tinning;3. anti-foam or foaming agents and quenching agents;4. agents used in the electrostatic precipitation of dusts and other particles which, otherwise, would float around goods when these have to be opened in a totally clean atmosphere;5. coatings (such as zinc stearate) which are essential in the forming of parts by means of drawing, drop forging, stamping, extrusion or similar;6. mould-extraction coatings insulating the moulds from the material to be moulded;7. preparations intended to make it easier to perform processing operations or to position goods intended to be mounted on other goods;8. bonding agents such as paraffin and other substances for use in the sintering of non-sintered metallic carbides;(c) goods needed to protect import goods during or after their working:1. masking (sticky tape or paper) intended to protect a part of the surface of blanks or of products undergoing processing operations on adjacent parts;2. powder used to prevent the deformation of sheet metal or thin parts being brazed;3. inhibiters or stabilizers (such as anti-rust compounds), plastic film and other total-loss coverings intended to protect import goods held in stock, compensating products awaiting further processing and for such products awaiting delivery;(d) preparations for the treatment of goods such as:1. strippers, stain removers, detergents and similar, but only where they are used to clean import goods to be processed, or products finished or being worked;2. abrasive or polishing agents in the form of powders, pastes or emulsions;3. oils, gases and special compounds for the surface quenching or hardening of steel or other parts;4. greasing products;(e) filter beds, activated clays and other substances intended to filter goods to be processed or products being worked (by means of gumming, passing through a filter press, or other);(f) ion exchangers and ion exchange membranes;(g) fuels and lubricants needed for the testing of compensating products;(h) fuels needed for the detection of faults in import goods needing repair;(i) lubricants needed in the testing, calibration, adjustment or withdrawal of compensating products.ANNEX II MODEL APPLICATION FOR INWARD PROCESSING AUTHORIZATION APPLICATION FOR INWARD PROCESSING AUTHORIZATION Date: ..............................NB: The particulars should, if possible, be supplied in the order indicated. Information relating to goods/products must be given for every type of goods/products concerned.Applicants shall be required to supply only such particulars as they may reasonably be expected to know.1. Name or business name and address: .   a) of the applicant: .   b) of the operator (¹): . 2. Which system it is intended to use (²): .   a) suspension system: .    b) drawback system: . 3. Special procedure applied for (²): .   a) equivalent compensation: .   b) prior exportation: .   c) triangular system: . 4. Goods to be processed and grounds for application: .   a) trade and/or technical description (³): .   b) indication of Common Customs Tariff classification (%): .   c) estimated quantity (¹): .   d) estimated value (¹): .   e) origin ((): .   f) code ()): . 5. Compensating products and planned export operation: .   a) trade and/or technical description (³): .   b) indication of Common Customs Tariff classification (%): .    c) main compensating products: .   d) planned export operation ( 7): .   6. Rate of yield (§): . 7. Nature of processing operation: . 8. Place where the processing operation is to be carried out: . 9. Estimated time needed for: .   a) carrying out the processing operations (¹*): .   b) disposing of the compensating products (¹¹): .   c) procurement and transport to the Community of non-Community goods (¹²): .10. Suggested method of identification: .11. Indicate the customs office through which it is planned to carry out formalities relating: .   a) to the import goods: .   b) to the compensating products: .12. Intended duration of authorization (¹³): .13. Equivalent goods (¹%): .14. Importer authorized to enter goods for the arrangements (¹¹): . 15. Reference to any authorization issued in the preceding three years in respect of goods identical to those covered by this application: Date: Signature: Notes (application)¹(¹) Where applicant and operator are not the same, give operator's name/business name and address.¹(²) Indicate the system and/or the special procedure intended to be used or applied for.¹(³) The description should be sufficiently clear and detailed to enable the customs authority to take a decision on the application, and in particular to decide in the light of information supplied whether the economic conditions can be regarded as fulfilled and whether, in cases where it is planned to use the equivalent compensation system, the conditions for use of that system are fulfilled.¹(%) For information: Only the tariff heading need be given, unless an indication of the subheading is required to enable the authorization to be issued or for the proper conduct of the processing operations. The tariff subheading must be given where it is planned to use the equivalent compensation system.¹(¹) This information is not required where the code indicated under (f) is one of the following codes: 6101, 6301, 6302, 6201 or 6107. Where they are supplied, they may refer to an import period.¹(() State country of origin.¹()) Enter the appropriate code or other requisite information indicating why the essential interests of Community producers are not affected:Where the operation concerned is one of the following:- job processing under a contract with a person established outside the Community (to be specified in the application): code  6201- operation of a non-commercial nature: code  6202- repair of goods, incluiding overhaul or adjustment: code  6301- usual forms of handling listed in Directive 71/235/EEC (¹): code  6302- operations to be carried out successively in one or more Member States using import goods covered by an authorization issued by virtue of codes 6101 to 6107: code  6303- operation relating to goods whose value per type of goods and per calendar year does not exceed the amount indicated in Article 6: code  6400Where the goods to which the application relates are not available in the Community:- either because they are not produced there: code  6101- or because they are not produced there in sufficient quantity: code  6102- or because Community suppliers are unable to make them available to the applicant within a reasonable time: code  6103Where goods of the same kind are produced in the Community but cannot be used:- either because their price makes the proposed commercial operation uneconomic: code  6104- or because they are not of the quality or characteristics necessary to enable the operator to produce the required compensating products: code  6105- or because they do not conform to the expressly-stated requirements of the non-Community purchaser of the compensating products (e.g. on technical or commercial grounds): code  6106- or because the compensating products must be made from the goods specified in the application in order to comply with provisions protecting industrial and commercial property rights (e.g. patents, trade marks): code  6107Where Article 7 applies:point (a): code  7001point (b): code  7002point (c): code  7003Other reasons (specify): code  8000¹( 7) To be supplied where suspension system is applied for. Indicate export market prospects for compensating products.¹(§) Indicate the expected rate of yield or suggest how such rate should be established.(¹*) Indicate the average time likely to be needed to process a given batch (expressed e.g. by unit or quantity) of goods.(¹¹) Indicate the time likely to elapse between completion of the processing operations and export of the compensating products.(¹²) To be filled in only if it is planned to use the prior exportation procedure.(¹³) Indicate the period within which it is planned to import the goods to be processed.(¹%) To be filled in only if it is planned to use the equivalent compensation system. State the tariff subheading, commercial quality and technical characteristics of the equivalent goods, to enable the customs authority to make the necessary comparisons between import goods and equivalent goods and as certain other particulars which may be needed if Article 10 is applied.(¹¹) To be filled in only if it is planned to use the triangular traffic system. Give the importer's name or business name and address.(¹) OJ No. L 143, 29. 6. 1971, p. 28.MODEL INWARD PROCESSING AUTHORIZATION INWARD PROCESSING AUTHORIZATION Date: ..............................NB: The authorization must contain particulars of the application. Where information is supplied by reference to the application, the application shall constitute an integral part of the authorization.The particulars should if possible be supplied in the order indicated:1. Name or business name and address:   (a) of the holder of the authorization:    (b) of the operator (¹):  2. System authorized (²):   (a) suspension system:    (b) drawback system:  3. Procedure (²):   (a) equivalent compensation: .   (b) prior exportation: .   (c) triangular traffic: .4. Goods to be processed (³):   (a) trade and/or technical description:    (b) indication of Common Customs Tariff classification:    (c) estimated quantity: .   (d) estimated value: .5. Compensating products (³):   (a) trade and/or technical description: .   (b) indication of Common Customs Tariff classification:    (c) main compensating products:  6. Rate of yield or method by which the rate will be established (%): .7. Nature of processing operations: .8. Place where processing operation is to be carried out and storage premises: .9. Time allowed for placing under a customs procedure specified in article 18 or 27 of the basic regulation (¹): 10. Time allowed for entering non-community goods for the arrangements ((): .11. Approved means of identification: .12. Name of customs authority empowered to check on:   (a) import goods: .   (b) the disposal of products for the purposes of Article 18 or 27 of the basic Regulation: .   (c) conduct of the processing operations: .13. Period of validity ()): 14. Equivalent goods ( 7): 15. Importer authorized to enter goods for the arrangements (§): 16. Date for review of economic conditions (¹*): .Date: .Signature: .Notes (authorization) ¹(¹) Where the holder of the authorization and the operator are not the same, give operator's name/business name and address.¹(²) Indicate the system authorized and/or the procedure.¹(³) Particulars to be supplied as necessary to enable customs offices to check on use of the authorization, with particular reference to approved or expected rates of yield and having regard in respect of quantity and value to the economic conditions cited. Quantity and value may be stated in terms of a given period of importation. Where reference is made to compensating products, distinguish between main and secondary compensating products.¹(%) State rate of yield or indicate how the customs authority empowered to check on the proper conduct of the processing operations is to determine rate of yield. Where the yield is to be that shown in the accounts of the holder of the authorization, enter 'holder's accounts'.¹(¹) Indicate the time needed to process a given quantity of import goods and dispose of the corresponding compensating products.¹(() to be filled in if the prior exportation procedure is to be used.¹()) Where circumstances allow the granting of an authorization for a period longer than two years, enter in section 13 the period of validity or the words 'unlimited validity', as appropriate, accompanied by the review provision referred to in section 16.¹( 7) To be filled in only if it is planned to use the equivalent compensation system. State the tariff subheading, commercial quality and technical characteristics of the equivalent goods.¹(§) To be filled in only if use of the triangular traffic system is authorized. Give the importer's name or business name and address.(¹*) See note ()).ANNEX III GOODS WHOSE TOTAL VALUE FOR THE PURPOSES OF ARTICLE 6 (4) OF THE BASIC REGULATION MUST NOT EXCEED 100 000 ECU >TABLE>ANNEX IV   SPECIAL PROVISIONS CONCERNING EQUIVALENT COMPENSATION AND PRIOR EXPORTATION FOR CERTAIN TYPES OF GOODS   RiceRice falling within subheading 10.06 B I or II of the Common Customs Tariff shall not be deemed equivalent to imported rice falling within the same Common Customs Tariff subheading unless it is in the same category as the imported rice and has a length/width ratio falling within the same subdivision.The categories of rice and length/width ratios are shown below:>TABLE>>TABLE>>TABLE>The length/width ratio shall be determined by measuring the length and width of 100 grains and dividing the total length by the total width.Where grains cannot be classified under both columns 2 and 3 of the same category and subdivision, the category and subdivision shall be determined solely on the basis of the length/width ratio (column 3).Ash and residues of copper and copper alloys falling within Common Customs Tariff heading N° ex 26.03 and waste and scrap of copper and copper alloys falling within Common Customs Tariff subheading ex 74.01 DEquivalent compensation shall not be allowed for goods from which the above ash, residues, waste or scrap would be produced for export.ANNEX V STANDARD RATES OF YIELD >TABLE>ANNEX VI INF5OriginalINFORMATION SHEET N° A / 000000INWARD PROCESSING TRIANGULAR TRAFFIC>TABLE>INF5Copy N° 1INFORMATION SHEET N° A / 000000INWARD PROCESSING TRIANGULAR TRAFFIC>TABLE>INF5Copy N° 2INFORMATION SHEET N° A / 000000INWARD PROCESSING TRIANGULAR TRAFFIC>TABLE>INF5Copy N° 3INFORMATION SHEET N° A / 000000INWARD PROCESSING TRIANGULAR TRAFFIC>TABLE>ANNEX VII COMPENSATING PRODUCTS TO WHICH SPECIFIC DUTIES MAY APPLY UNDER THE FIRST INDENT OF ARTICLE 21 (1) (a) OF THE BASIC REGULATION >TABLE>ANNEX VIII INWARD PROCESSING RELIEF ARRANGEMENTSReturn of information as required by Article 70 (3) (a) of Regulation (EEC) N° 3677/86(Return to be submitted not later than the end of the month following the end of the calendar month in question) >TABLEPOSITION>ANNEX IX INWARD PROCESSING RELIEF ARRANGEMENTSReturn of information as required by Article 70 (3) b) of Regulation (EEC) N° 3677/86(Return to be submitted not later than the end of the month following the end of the calendar month in question)>TABLE>ANNEX X INF 1OriginalN° A 000000 INWARD PROCESSING INFORMATION SHEETANNEX XI  EXAMPLES OF CALCULATING THE PROPORTION OF IMPORT GOODS INCORPORATED IN COMPENSATING PRODUCTS  (Articles 56 to 59)>START OF GRAPHIC>>END OF GRAPHIC>INTRODUCTION TO ANNEX XI1. Annex XI is intended to provide guidance for the application of Articles 56 to 59.2. Note that the proportion of import goods incorporated in compensating products is to be calculated only where this is necessary to determine the amount of the customs debt under Article 20 of Regulation (EEC) N° 1999/85.This means that where:- all compensating products are placed under a customs procedure not involving the collection of import duties, or- import duties are to be collected only on products subject to taxation under Article 21 of Regulation (EEC) N° 1999/85, the methods of calculation will not be applied.3. The quantity of compensating products to be obtained will be determined on the basis of the approved rates of yield.4. The addition of Community goods in the course of the manufacturing process does not affect the actual proportion of import goods incorporated in the compensating products and is therefore not taken into account.I. Article 57Quantitative scale method (compensating products)(a) Import goods: 100 kilograms A(b) Products obtained or to be obtained: 90 kilograms B(c) Customs debt in respect of: 10 kilograms B(d) Quantity of import goods corresponding to quantity of B in respect of which a customs debt has arisen: 10/90 × 100 kilograms = 11,11 kilograms AII. Article 58Article 21 of Regulation (EEC) N° 1999/85 appliesQuantitative scale method (import goods) (a) Import goods: 100 kilograms A(b) Products obtained: 80 kilograms B, containing 80 kilograms A10 kilograms C, containing 10 kilograms A 5 kilograms D, containing  5 kilograms A (D is on the Article 21 list)                    Total:  95 kilograms A(c) Apportionment basis in kilograms A:B: 80/95 × 100 kilograms = 84,21 kilograms AC: 10/95 × 100 kilograms = 10,53 kilograms AD:  5/95 × 100 kilograms =  5,26 kilograms A                   Total: 100    kilograms A(d) Customs debt in respect of: 10 kilograms B(e) Quantity of import goods corresponding to quantity of B in respect of which a customs debt has arisen as a result of release for free circulation of 30 kilograms B:10/80 × 84,21 kilograms = 10,53 kilograms A(f) Portion of D dutiable under Article 20/Article 21:Under the first indent of Article 21 (1) (a), specific duties on product D can apply only to as much of that product as 'corresponds proportionally to the exported part of the other compensating products', i.e. those not included in the list.- Quantity of products exported in kilograms A:B: 70 kilograms = 70/80 × 84,21 = 73,68 kilograms AC: 10 kilograms = 10/10 × 10,53 = 10,53 kilograms A                          Total:  84,21 kilograms A- Proportion exported:[84,21/(100 - 5,26)] × 100 % = 88,89 %- Dutiable under Article 21:88,89 % × 5 kilograms D = 4,44 kilograms D- Dutiable under Article 20:5 kilograms - 4,44 kilograms = 0,56 kilograms D(g) Quantity of import goods corresponding to quantity of D in respect of which a customs debt has arisen:  4,44 kilograms D  (Article 21)+ 0,56 kilograms D  (Article 20)  5    kilograms D = 5 × 5,26/5 = 5,26 kilograms AIII. Article 58Article 21 of Regulation (EEC) N° 1999/85 does not applyQuantitative scale method (import goods)(a) Import goods:100 kilograms A(b) Products obtained or to be obtained:80 kilograms B, containing 80 kilograms A10 kilograms C, containing 10 kilograms A 5 kilograms D, containing  5 kilograms A                   Total:  95 kilograms A(c) Apportionment basis in kilograms A:B: 80/95 × 100 kilograms =  84,21 kilogramsC: 10/95 × 100 kilograms =  10,53 kilogramsD:  5/95 × 100 kilograms =   5,26 kilograms                   Total:     100 kilograms(d) Customs debt in respect of: 10 kilograms B(e) Quantity of import goods corresponding to the quantity of B in respect of which a customs debt has arisen as a result of the release for free circulation of 30 kilograms B:10/80 × 84,21 kilograms = 10,53 kilograms AIV. Article 59Article 21 of Regulation (EEC) N° 1999/85 appliesValue scale method(a) Import goods:100 kilograms A(b) Quantity and value of products obtained:80 kilograms B à 20 ECU/kilogram =  1 600 ECU10 kilograms C à 12 ECU/kilogram =    120 ECU 5 kilograms D à  5 ECU/kilogram =     25 ECU (D is on the Article 21 list)                           Total:   1 745 ECU(c) Apportionment basis in kilograms A:B: 1 600/1 745 × 100 kilograms =  91,69 kilogramsC:   120/1 745 × 100 kilograms =   6,88 kilogramsD:    25/1 745 × 100 kilograms =   1,43 kilograms                      Total:        100 kilograms(d) Customs debt in respect of:1. 10 kilograms B2.  5 kilograms D(e) Quantity of import goods corresponding to the quantity of B in respect of which a customs debt has arisen:10/80 × 91,69 kilograms = 11,46 kilograms A(f) Portion of D dutiable under Article 20/Article 21:Under the first indent of Article 21 (1) (a), specific duties on product D can apply only to as much of that product as 'corresponds proportionally to the exported part of the other compensating products', i.e. those not included in the list.- Value of exported portion of compensating products:B: 70 × 20 ECU = 1 400 ECUC: 10 × 12 ECU =   120 ECU         Total:  1 520 ECU- Proportion exported:[1 520/(1 745 - 25)] × 100 % = 88,37 %- Dutiable under Article 21:88,37 % × 5 kilograms = 4,42 kilograms D = 3,26 × 1,43/5 = 0,93 kilograms A- Dutiable under Article 20:5 kilograms - 4,42 kilograms = 0,58 kilograms D(g) Quantity of import goods corresponding to quantity of D in respect of which a customs debt has arisen:  4,42 kilograms D (Article 21)+ 0,58 kilograms D (Article 20)  5 kilograms × 25/1 745 = 1,43 kilograms AV. Article 59Article 21 of Regulation (EEC) N° 1999/85 does not applyValue scale method(a) Import goods:100 kilograms A(b) Quantity and value of products obtained or to be obtained:80 kilograms B a 20 ECU/kilogram = 1 600 ECU10 kilograms C a 12 ECU/kilogram =   120 ECU 5 kilograms D a  5 ECU/kilogram =    25 ECU                           Total:  1 745 ECU(c) Apportionment basis in kilograms A:B: 1 600/1 745 × 100 kilograms = 91,69 kilogramsC:   120/1 745 × 100 kilograms =  6,88 kilogramsD:    25/1 745 × 100 kilograms =  1,43 kilograms                         Total:    100 kilograms(d) Customs debt in respect of: 10 kilograms B(e) Quantity of import goods corresponding to the quantity of B in respect of which a customs debt has arisen:10/80 × 91,69 kilograms = 11,46 kilograms A