CELEX: 51973PC1264
Language: en
Date: 1973-07-25
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL on the opening, allocation and means of administration of a Community tariff quota for processing work in relation to certain textile products under the outward processing arrangements of the Community (submitted to the Council by the Commission)

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COM (73) 1264
Vol. 1973/0238
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 ---pagebreak--- COMMISSION OF THE EURG.PEAN COMMUI^ÏTBBS
                                                            COM(73 ) 1264 final
                                                            Brussels , 25 July 1973
                                     PROPOSAL FOR A
                           REGULATION (EEC ) OF THE COUNCIL
             on the opening , allocation and means of administration of a
              Community tariff quota for processing work in relation to
                certain textile products under the outward processing
                             arrangements ox the Community
                     ( submitted to the  Council by the Commission)
  COÏ'l(73 ; 1264 final
 ---pagebreak---                                EXPLANATORY MEMORANDUM
1. In an Arrangement concluded with the Swiss Federation on 1 August 1969 (l)i
     the European Economic Community undertook to open an annual duty-free
     Oommunity tariff quota of 1 8?0 000 units of account of added value , on
     the various kinds of processing work for certain textile products included
     in the outward processing traffic of the Community to Switzerland .
     Under paragraph 8 thereof , the period for which, the Arrangement runs , which
     was initially two years from 1 September 1969 « is automatically extended
     by implied agreement for a further period of two years , unless one of the
     parties withdraws not later than six months before its date of expiry .
     If neither party withdraws within the prescribed time-limit , the Arrangement
     remains binding for a further two years and the Community tariff quota for
     which it provided has to be opened again for the period 1 September 1973
     to 31 August 197 ^-
2 . Under the terms 6f ; the - memorandum agreed at the time the Arrangement was
   made , this annual tariff quota is divided into three categories of processing,
   based on the quantities recorded under the former bilateral agreements ( con­
   cluded with Switzerland by France , Germany and Italy) but taking into account
   the possibilities of extending it to the Benelux countries .
   On the basis of that division the total quota amount of 1 870 000 units of
   account is appropriated as follows. : :
   ( a) 1 650 000 units of account for processing work on woven fabrics falling
         within Chapters 50 to 57 of the Common Customs. Tariff ;
   ( l ) Official Journal No L 2*f0 , 2*t December i960
                                                                          • • • /•
 ---pagebreak---  (b) 143 000 units of account for twisting or throwing, re-twisting cabling ,
       texturizing (whether or not combined with other processing work) of
       yarns falling within Chapters 50 to 57 of the Common Customs Tariff ;
 ( c ) 77' 000 units of account for processing work on articles falling within
    ' headings 58.04, 58.05 , 58.0?, 58.08 , 58 . 09 and 60.01 of the Common
       Customs Tariff .
At the request of the Swiss authorities and so that the division of the whole
quota into the three categories of processing referred to above should be
better related to the actual movement of trade during the reference year
which served as the basis for calculating the total amount of the quota , it
was decided to transfer , from 1 September 1970 , 150 000 units of account from
the amount allocated for processing operations on woven fabrics falling
within Chapters 50 to 57 of the Common Customs Tariff to the 77 000 units
of account set aside for processing work on articles falling within headings
58.4 to 60.01 of the Common Customs Tariff . These 150 000 units of account
allocated to France for operations on knitted or crocheted fabric (processing
work under ( c ) above ) had been set off against the quota-share allocated
to that Member State when the amount set aside for processing work on woven
fabrics was divided up , the division being as shown in the above-mentioned
memorandum .
This division has just been re-examined at a meeting of the joint EEC-
Switzerland Committee , held at Berne on 29 and jO Hay 1973 » " During this
meeting it was decided that , as from 1 September 1973 the amount appropriated,
to processing work on articles falling within headings 58.04 to 60.01 of the
                                      !                     •
Common Customs Tariff should be increased from 227 000 units of account to
377 000 units of account , without any corresponding increase in the total
amount of the Community Tariff quota of 1 870 000 units of account .       This
additional amount of 150 000 is to be apportioned as follows .
 ---pagebreak--- - 10 000 units of account to the amount of 30 000 units of account allocated
to the Benelux countries for all categories of processing work ;
- 120 000 units of account to the amount of 900 000 units of account
allocated to the Federal Republic of Germany for processing work on woven
fabrics ;
- 20 000 units of account to the amount of 120 000 units of . account
allocated . to the Federal Eepublic of Germany for processing work on yarns .
The additional amount of 150 000 units of account thus apportioned will
be allocated for operations to be carried out on articles falling within
the abovementioned tariff, headings as follows :
   Germany : 80 000 units of account ( quota increased from 50 000 to
               130 000 units of account )
   France    : 20 000 units of account ( quota increased from 150 000 to
               170 000 units of account )
   Community reserve : 20 000 units of account ( amount" increased*" from..
               7 000 to 57 000 units of account ).
                                                             t.
This allocation among the Member States of e?Te different amounts appropxated
to the th^ee categories of processing work raises a difficulty which was
envisaged at a consultation meeting organized under the auspices of the
Commission and Acid during 19^9 with . experts from all the Member States .
Under this allokesiion it would.be possible for some Member States ( Italy ,
Netherlands , Belgium and Luxembourg) to apportion all or part of their
share , according to their choice ,, to among two or three categories of
processing work , but the quotas set aside for each section of processing
                               '   • \      •
work are insufficient to allow for such a choice , whether it be because the
total, allocation for these Member States uses some of the reserve for the
first category of processing work ( if they intend to benefit from this
alone) , or because such total exceeds the quotas fixed for the second and
third categories of processing work ( if they prefer to benefit from these
alone ) .
 ---pagebreak--- However , after consultation with the Member States , it appears that such
a situation should not raise any difficulties in practice . This explains
the absence of any provision relating to this problem in the proposal for a
Regulation annexed hereto , since the Commission , together with the Member
States , is to ensure that the allocation of processing work falling within
the quota is respected , and that adequate provisions are taken if the
slightest difficulty should be likely to arise .
The Community tariff quota provided for in this Arrangement was last opened
by Council Regulation (EEC) No 229l/?2 (l ) of 31 October 1972 , to cover the
period from 1 September 1972 ro 31 August 1973-
The only purpose of the proposed regulation annexed hereto is therefore to
open the same , quota for the period from 1 September 1973 to 31 August 197 ^»
and to divide it betyreeii the Member States according to factors shown in the
Memorandum to the Arrangement referred to above , taking into account the
amended allocations explained under 3 and ^ above and the need to provide fo
the participation of the new Member States in the dividing of the tariff
quota .
It should however be noted in this connection , that in respect of textile
products the new Member States do not have to take the first step towards
bringing their customs duties into line with those of the Common Customs
Tariff until 1 January 1972**   Before that date the opening of a Community
tariff quota , does not therefore oblige these Member States to change their
customs tariffs for third countries nor to take part in the allocation
of the Community tariff quota in question .
( 1 ) OJ No L 2b8 of 1 November 1972 , page 1
 ---pagebreak--- According to the information gathered at the above mentioned meeting of the
EEC-Switzerland Joint Committee it appears that the new Member States only
play a very small part , or even no part at . all , in the outward processing
of products in the textile sector . In order to cover any needs which might
arise either in Ireland , Denmark or in the United Kingdom , in particular
for those cases not covered by the Agreeement concluded on 22. July 1972
between the Community and Switzerland , provision should be made for i these
Member States to be able to draw an adequate quota share from the Community
reserve when required .
As regards the means of administering the tariff quota concerned , consula-
tion meetings were organized under the auspices of the Commission on 9 April
and 15 May 1970 , in order to continue with a detailed examination of the
difficulties which Germany and then France pointed out in this field . It
became apparent during these meetings that the administrative system "as
the goods are re.-imported" which was adopted in the above-mentioned Regula­
tion for the period from 1 September 1969.to 31 August 1970 , could not be
continued as such for the following quota . period because of the difficulties
involved in the two Member States abovementioned .     The main difficulties
indicated are in particular the exporters 'lack of certainty as regards
their eligibility to benefit from the tariff advantages v/hen re -importing
goods after the processing work , and also the marked inadequacy of the quota
amounts , due to the fact that the benefit of the customs facilities has been
extended to a number of persons and firms which did. not benefit under the
former bilateral Agreements . ,                                 ,. , f
It has also become apparent that the other single administrative system which
can be applied in all Member States , that of prior- allocation , could not
be adopted either , at the outset , since in some Member States , there is no
precedent which could serve as a basis for the allocation of the national
share in the quota between the various consumers .
 ---pagebreak---  Before preparing to put a different common administration system into effect,
it had been decided that , for the quota period from 1 September 1970 to 31
August 1971 1 the Member States should administer their initial and additional
shares in the quota according to their rules on tariff quotas , so as to gain
additional experience , and on the basis of this establish "a Common administra­
tion system for 1 September 1971 which would be able to solve all the diffi­
culties which had arisen in that field .  Because the request formulated by
the two Member States abovementioned was well-founded , the Commission has
adopted this formula .
                                                                                I
When this quota was opened for the period from 1 September 1971 to 31 August
1972 , it was not thought that sufficient would be gained during the adaptatioi
period to establish a single administration system for this quota , which is
of an unusual nature , and the experimental period was extended until 31 Augusi
1972 .
This problem was again the subject of discussions at the consultation meetin ?
on 26 May 1972 where it appeared that Germany , one of the main users of this
quota among the Member States , uses the system of prior allocation , for
reasons which had already been put forward , and that there had not been any
major difficulties in applying it . France and the Benelux countries however
use a system of authorizations which are granted before the goods to be
processed are exported , which therefore falls within the system of prior
allocation . Moreover if Italy or one of the new Member States should apply
the provisions of this Regulation in the relatively near future , it does not
appear that the utilization of a system of prior allocation , similar to those
applied in the other Member States could cause any difficulties .
 ---pagebreak---                                  - 7 -
    This is why it has been proposed to administer the Community tariff quota
    in question , for the quota period from 1 September 1973 to 31 August 197 ^
    according to the system of prior allocation which had already been adopted
    for the preceding quota period .
8 . In addition , in order to ensure ihat the tariff quota in question is used
    to the fullest extent possible , whilst not rendering the initial quotas
    useless , the proposal for a Regulation annexed hereto provides that the
    maximum amount     returned to the reserve shall henceforth be reduced to
    the normal level of 20 % .
 ---pagebreak---                          PROPOSAL FOR A
               REGULATION (EEC) . OP THE COUNCIL
               on the opening , allocation and means of administration
               of a Community tariff quota for processing work in
               relation to certain textile products under the
               outward processing arrangements ■ of the Community
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof ;
Having regard to the proposal from the Commission ;
Whereas on 1 August 19&9 "the Community concluded an Arrangement with
Switzerland on the processing traffic , in textiles ; whereas under that
Arrangement the Community undertook to open , an annual Community duty-free
tariff quota on 1 September every year amounting to a total of 1 870 000
units of account of added value for processed goods , divided as follows :
( a) 1 650 000 units of account for processing work on woven fabrics falling
      within Chapters 50 to 57 of the Common Customs Tariff ;
( b) 1^3.000 units of account for the twisting or throwing, cabling ,
      texturizing ( whether or not combined with other processing works)
      of yarns falling within Chapters 50 to 57 of the Common Customs Tariff ;
( c ) 77 000 units of account for processing work on articles falling within
      heading Nos 58.04 , 58 . 05 , 58.07 , 58.08 , 58.09 and 60.01 of the Common
      Customs Tariff ;
Whereas in order that the division of the whole quota into the three catego­
ries referred to above shall correspond more exactly with the actual movement
of trade during the reference year it has been decided by joint agreement to
 ---pagebreak--- raise to 377 000 units of account the amount of 77 000 units of account set
arise for the processing of articles falling within certain tariff headings
in the Common Customs Tariff between 58-04 and 60.01 by levying a total sum
of 300 000 units of account on the share of the quota granted to       Benelux
for all processing operations and also on the shares of the quota granted
to other Member States for the processing of textile fabrics and yarns
falling under Chapters 50 to 57 of the Common Customs Tariff ; whereas the
Community . tariff quota in question should be opened for the period 1 September
1973 to 31 August 197^ according to the provisions laid down in the Arrange­
ment specified above , and in amendments to it ;
Whereas , as regards the textile products referred to in the abovementioned
Arrangement , the new Member States do not have to take the first step towards
bringing the duties in their customs tariffs into line with those in the
Common Customs Tariff until 1 January 197^5    whereas before that date the
opening of a Community tariff quota does not oblige these Member States to '
change their customs tariffs for third countries nor to take part in the
allocation of the Community tariff quota in question ; whereas different
systems should therefore be provided for the Member States of the Community as
originally constituted and for the new Member States ;                  1
Whereas , as regards the Community as originally constituted in particular :
- equal and continuous access to the quota of all those concerned with this
  traffic in the Community must be guaranteed and the rate provided for in this
  quota must be applied , without interruption until the quota has been used up.,t
   all goods reimported into any of the Member States which have received one
  or other of the treatments listed above ; whereas , in the light of the
  principles outlines above , Community tariff arrangement based on an alloca­
  tion among the Member States would seem to preserve the Community nature
 ---pagebreak---                                       - 3 -
   of the quota ; whereas , therefore , it seems appropriate to make the alloca­
   tion taking into account the quantities recorded under the previous bilateral
   agreements , without prejudicing the opportunities of Member States which
   previously were not involved in this traffic ; whereas to safeguard the
   Community nature of the quota in question , provision should be made to meet
   requirements which may arise in these Member States in the future ;    whereas
   in exceptional cases , the system described in Article 3 may take this factor
   into account where an initial share of the quota is not allocated ;
- Whereas to take account, of future trenis in the traffic in question in the
   various Member States , . the total quota volume of 1 8?0 000 units of account
   6hould be divided into two tranches , the first being allocated among the
   Member States and the second part held as a reserve to cover at a later date
   requirements of Member States who have .used up their initial share of the
   quota , and requirements which may arise in certain Member States processing
   work for which an initial share of the- quota was not allocated ;   whereas in
   order to give the parties concerned in each Member States some degree of
   certainty it would be appropriate to fix the first tranche of the Community
   tariff quota at a relatively high level , that is 90 % of the amount of the
   quota ; whereas the reserve ( amounting to 10 %) should be appropriated to
 . each category of work pursuant to the arrangement in question ;
- Whereas the Member States' initial shares may be used up fairly rapidly ;
   whereas , therefore ," to avoid disruption of supplies any Member State which
   has almost used up one of its initial shares must draw a supplementary share
- from the corresponding reserve ; whereas this must be done by each Member
                           îts
   State as each one of/supplementary shares is almost used up , and as many times
   as the reserve allows ; whereas the initial and supplementary shares must be
   valid until the end of the quota period ; whereas this form of administration
   requires close collaboration between the Member States and the Commission ,
                                                                           • • • /• • •
 ---pagebreak---                >
                                  _ U -
    and the Commission must be in a position to follow the extent to which the
    quota volume has been used up and inform the Member States thereof ;
                                                                                 1
- whereas if , at a given date during the quota period , a considerable
    quantity of one or other of the initial shares is left over in a Member
    State/returnUa^signifiant proportion to the corresponding reserve , to
    prevent a part of the Community tariff quota from remaining unused in one
    Member State when it could be used in others ;
- Whereas since the Kingdom of Belgium , the Kingdom of the Netherlands and
    the Grand Duchy of Luxembourg are jointly represented by the Benelux
    Economic Union , any measure concerning the administration of shares
    allocated to that Economic Union may be carried out by one of its Members ;
                                                           I                       ;
Whereas as regards the new Member States m particular :
- during the last few years it seems that these Member States have only
    been involved to a small extent if at all in outward processing traffic
    in the textile sector ; whereas the Community nature of the; tariff quota
    in question should be safeguarded by making provision for any requirements
    which may arise in these Member States after 1 January 197^5    whereas these
    Member States must therefore be enabled after this date to draw adequate
    shares from the Community reserves ;
- Whereas the duties for the quota are to - be fixed, by the new Member States ;
    in accordance with the provisions of the Act annexed to the Treaty concer­
    ning the accession , of new Member States to the European Economic Community
    and to the European Atomic Energy Community signed on 22 January 1972 , and
    in particular Article 39 (1 ) thereof ;
( 1 ) OJ No L 73 » 27 March 1972 , p. 22
 ---pagebreak---                                       - 5 -
  - Whereas equal and continuous access to the quota should be ensured for all
    persons concerned in such processing traffic and the rate of duty for the
    quota should be applied consistently to all re-imports into those Member
    States of products on which one or other of the aforementioned types of
    processing work , have been carried out until the quota is used up ;
HAS ADOPTED THIS REGULATION :
                                   Article 1
1 . As from 1 September 1973 and until 31 August 197t-> a Community tariff quota
    of 1 870 000 units of account of value added shall be opened in the European
    Economic Community in respect of goods resulting from the processing work
    as provided for in the Arrangement with Switzerland on processing traffic
    in textiles . Such quota shall be divided as follows :
    ( a) 1 370 000 units of account for processing work on woven fabrics falling
          within Chapters 50 to 57 of the Common Customs Tariff ;
    ( b) 123 000 units of account for twisting or throwing , cabling , texturizing
          ( whether combined with" other processing work) of yarns falling within
          Chapters 50 to 57 of the Common Customs Tariff ; '
    ( c ) 377 000 units of account for processing work on articles falling within
          the following headings of the Common Customs Tariff :
          58.0^ (Woven pile fabrics and chenille fabrics ( other than terry
                 towelling or similar terry fabrics of cotton falling within
                 heading No 55»08 and fabrics falling within heading No 58 . 05) ;
          58.05 (Narrow woven fabrics , and narrow fabrics ( bolduc ) consisting of
                 warp without weft assembled by means of an adhesive , other than
                 goods falling within heading No 58 . 05) ; -
                                                                           • • •/ • • •
 ---pagebreak---                                        - 6 -
            58.07 ( Chenille yarn ( including flock chenille yarn), gimped yard
                    ( other than metallized yarn of heading No 52.01 and gimped
                    horsehair yarn); braids and ornamental trimmings in the piece ;
                    tassels , pompoms and the like );
            58«08   ( tulle and other net fabrics (but not including woven , knitted
                    or crocheted fabrics ) , plain) ;
            58.09   ( tulle and other net fabrics ( but not including woven , knitted
                    or crocheted fabrics), figured ; hand or mechanically made lace ,
                    in the piece , in strips or in motifs ) ;
            60.01   (knitted or crocheted fabric , not elastic nor rubberized).
  2 . For the purposes of this Regulation ,
       ( a) "processing work" means :
             - for the purposes of paragraph 1 ( a) and ( c ) : bleaching , dyeing,
               printing flocking , impregnating , dressing and other work which
               changes the appearance or quality of the goods , without , however ,
               changing their nature ;
             - for the purposes of paragraph 1 ( b ) : twisting or throwing , cabling
               and texturizing , whether or not combined with reeling , dyeing or oth
               work which changes the appearance , quality or finish of the goods ,
               without however changing their nature .
      ( b ) " added value " means s the difference between the value for customs
             purposes as defined by Regulation (EEC) No 803/681 and the value for
             customs purposes as it would be if the products were , imported in the
             same state in which they were exported.
  3 . Each of the quota amounts referred to in paragraph 1 shall be subdivided
      into two tranches ; the first , of approximately 90        shall be allocated
      among the Member States in accordance with Article 3 } the second , of
      approximately 10 $ , shall constitute the Community reserve .
                                                                              • ■ •/ • • m
( 1 ) OJ No L 1^8 , 28 July 1968 , p. 1
 ---pagebreak---                                    - 7 -
4 .. The Community tariff quota shall be administered            in accordance with
      the following provisions :
Provisions applying to the Community as originally constituted
                                 Article 2
The Common Customs Tariff duties shall be totally suspended up to the
tariff quota referred to in Article 1 ( l) .
                                 Article 3 .
1 . The first tranche of each of the quota amounts referred to in Article 1
      (l) shall be allocated among the Member States ;          the quotas for each
     Member State subject to Article 7 » shall" be valid from 1 September 1973
     to 31 August 197 ^, shall be as follows :
      ( a) Germany :
            1 010 000 units of account , divided as follows :
            - 780 000 units of account for processing work on woven fabrics
              falling within Chapters 50 to 57 of the Common Customs Tariff ;
            - 100 000 units of account for twisting or throwing , cabling ,
              texturizing ( whether combined with other processing work ) of
              yarns falling within Chapters 50 to 57 of the Common Customs
              Tariff ;
  . .       - 130 000 units of account for processing work on articles falling
              within headings 58.0^, 58 . 05 , 58.07 , 58 . 08 , 58 . 09 and 60.01 of
              the Common Customs Tariff ;
      ( b ) France :
            600 000 units of account , divided as follows :
            - ^30 000 units of account for processing work on fabrics falling
              within Chapters 50 to 57 of the Common Customs Tariff ;
            - 170 000 units of account for processing work on articles falling
              within headings 58.0^, 58 . 05 , 58.07 , 58 . 08 , 58 . 09 and 60.01 of the
              Common Customs Tariff ;
                                                                                • • • /• • •
 ---pagebreak---        ( c) Italy :                                                                     ]
             20 000 units of account , i.e. half for twisting or throwing, cabling^
             texturizing ( whether combined with other processing work ) of yarns
             falling within Chapters 50 to 57 of the Common Customs Tariff , and
             half for processing work on articles falling within headings 58.04 ,
             58.05 , 58.07 , 58.08 , 58.09 and 60.01 of the Common Customs Tariff :
       ( d ) Bénélux :
             20 000 units of account for processing work on threads and woven             j
             fabrics falling within Chapters 50 to 57 or for articles falling
             within headings 58.04 , 58 . 05 , 58.07 , 58.08 , 58 . 09 and 60.01 of the
             Common Customs Tariff .            .  .     <
2 . The second part of each of the quota amounts referred to in Article 1 ( l),
    - 150 000 , 13 000 and 57 000 units of account respectively - shall
    constitute the Community reserve .
                                    Article 4
If the need arises in France for the processing work referred to in Article
1 ( 1 ) ( b),that Member State shall draw a sufficient quota from the reserve ,
to the extent, that the reserve permits .
1 . If 90 %. or more of one of the initial quotas of a Member State - as fixed
    in Article 3 ( 1 )» or of that quota minus the portion returned to the
    corresponding reserve where Article 7 is applied - has been used up ,
    that Member State shall without delay , by notifying the Commission ,
    draw a second quota equal to 10 % of the initial quota , to the extent
    that the corresponding reserve is sufficient .
 ---pagebreak---                                   - 9 -
2 . If after one or other of these initial quotas has been used up , a
    Member State uses 90 % or more of the second quota drawn by a Member
    State has been used up , that Member State shall in accordance with
    paragraph 1 draw a third quota equal to 5 % of its initial quota,
    to the extent that the corresponding reserve is sufficient .
3 . If , after one or other of the second quotas has been used up , a Member
    State uses up 90 % or more of the third quota drawn by a Member State
    has been used up , that Member State shall in accordance with paragraph 1 ,
    draw a fourth quota equal/tfie third.
 ■  This procedure " shall apply by analogy until each reserve is used up .
k . By way of derogation from paragraphs 1 to 3 » a Member State may draw
    quotas lower than those fixed in those paragraphs if there are reasons
    for considering that those fixed may not be used up . It shall inform
    the Commission of its reasons for applying this paragraph .
                               Article 6
Supplementary quotas drawn pursuant to Article 5 shall be valid until
31 August 197 ^.
                               Article 7
A Member State which by 15 May 197^ has not used up one of its initial
quotas , as fixed by Article 3 ( 1 ) or as resulting from the application of
Article Jf, shall return to the corresponding reserve not later than 10 June .
197^ the unused portion of such share exceeding 20 % of the initial amount .
It may return a greater portion if there are grounds for believing that
it may not be used up .
Member States shall inform the Commission not later than 10 June 197 ^ of all
products concerned which have been re-imported up to 15 May inclusive and
charged against the Community quota and , where appropriate , the portion of
each of their initial shares which they have paid back into the corresponding
reserve .
                                                                     • • • /• • •
 ---pagebreak---                                 - ΙΟ-
                                     ι
                            Article 8
The  Commission shall keep an account ^ofandthe5 and
Member Stetes pursuant to Article
                                                 quotashall
                                                        amounts  opened by the |
                                                            , as soon as informa- I
tion reaches it , inform each state of the extent to which the reserves
have been used up .
The Commission shall , not later than 15 June 197k , inform the respective
          , State,
Member   /   of the amounts still in the reserves after returns have been
made pursuant to Article 7 .
                                        . .                                         ι
The Commission shall ensure that drawing which used up a reserve is limited
to the balance available and to this • end shall specify the amount thereof
to the Member State making the last drawing .
                            Article 9
The Member States shall take all measures necessary to ensure that there
is uninterrupted access to their cumulative shares of Community tariff                j
quota when they open additional quotas drawn pursuant to Article 5-
                            Article 10
1 . The Member States shall administer      their quotas by the system of prior |
    allocation. They/lnl&^e all persons involved in the processing traffic' ;
    in their territory have free access to the quotas allocated to them .
                                                                           shall be
2. The extent to which Member States have used up their quota shares/deter­
    mined on the basis of the added values admitted upon re-importation of
    the products concerned when they are presented for customs clearance
    under the declaration for consumption .
                           Article 11
The Member States shall regularly inform the Commission of the products
concerned actually counted against their quotas .
 ---pagebreak---                                 Article 12
Member States and the Commission shall co-operate closely to ensure that
this Regulation is respected .
Provisions relating to the new Member States
                                Article 13
1 . If needs arise in the new Member States , as from 1 January 197 ^-, in respect
    of the processing work referred under Article 1 ( l ), these States shall
    be allocated an adequate quota from the corresponding Community reserve
    established under paragraph 2 of the same Article , to the extent that
    the balance    available in such reserve is sufficient .
2 . The new Member States shall apply a tariff duty on the quotas thus
    allocated from the reserve , in accordance with the relevant provisions
    of the Act concerning the Conditions of Accession and the Adjustments to
    the Treaties .
                               Article 14
Articles 10, 11 and 12 of this Regulation shall apply to the new Member
States .
                               Article 15
This Regulation shall enter into force on 1 September 1973 *
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
 Done at Brussels ,                                     By the Council ,
                                                        The President