CELEX: 51987PC0549
Language: en
Date: 1987-11-05
Title: Proposal for a COUNCIL REGULATION (EEC) applying generalized tariff preferences for 1988 to textile products originating in developing countries#Proposal for a COUNCIL REGULATION (EEC) concerning the administration of the generalized tariff preferences applicable for 1988 to textile products originating in developing countries#(presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 549
Vol. 1987/0271
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(87 ) 549 final
                                                          Brussels , 5 November 1987
                                Proposal for a
                          COUNCIL REGULATION ( EEC )
  applying generalized tariff preferences for 1988 to textile products
                   originating in developing countries
                                Proposal for a
                          COUNCIL REGULATION ( EEC )
   concerning the administration of the generalized tariff preferences
    applicable for 1988 to textile products originating in developing
                                   countries
                       ( presented by the Commission )
                                       Ф X ■,   17 / I - / /у
                                                Δ
C0M(87 ) 549 final
                                         / ^ .
                                           ίο ! : :ν V ·
 ---pagebreak---                                                                                             A
                                                                          £ oh - f¥*j
                      EXPLANATORY MEMORANDUM
 1.           This proposal modifies the proposal for a Council Regulation
 applying generalized tariff preferences for 1988 to textile products
originating in developing countries ( doc(87 ) 227 final ) which the Commis ¬
 sion transmitted to the Council on 29th June .
 2.             Two kinds of modifications are proposed .           On the one hand
 it is proposed to transfer into a separate regulation the provisions
 governing the management of the preferential amounts and , on the other
 hand , to modify      the economic content of the initial proposal .
 2.1 .        As regards the initial draft regulation , the 4th paragraph
of Article 1 , and Articles 2 to 17 are deleted (Annex I ).
              A new draft of regulation has been prepared which contains all
of the management provisions ( Annex          II ).
 2.2 .         As regards economic measures it is proposed to adjust the measure of differen¬
 tiation for countries which satisfy the following three criteria :
              - low GNP per head
              - dominant supplier of MFA textiles to the Community
              - strong dependence on these exports .
              For countries meeting these criteria , the accentuated differen ¬
 tiation as originally proposed by the Commission is adjusted with regard
 to product sensitivity :
              - share of 10% in EEC imports of categories of p roducts
              – in Group I : exclusion
              – in Group II : 50% reduction of 1987 amount .*
                   share of 15% or more :
              – Groups I , II and III : exclusion .
* For Group III , the preferential offer is maintained^at the                 ./.
    level of 0.2% of extra EUR-12 importations .
 ---pagebreak---                This regime is applicable to China which answers to
the three criteria . It is extended to Macao , taking into account its
specific circumstances in the perspective of its return to Chinese
sovereignity and because of the fact that it is dependent on its
textiles exports while being only partially dominant . Its exports of
textiles are concentrated on a limited number of products and its
share of the total Community imports of MFA products does not reach 1.5% .
3.             As for the whole scheme concerning MFA textile products ,
the effects on preferential amounts of the masures indicated above will
be spread over two years .
 ---pagebreak---                                                 Proposal for a
                                     COUNCIL REGULATION (EEC)
                      applying generalized tariff preferences for 1988 to textile products originating in
                                                     developing countries
THE COUNCIL OF THE EUROPEAN COMMUNITIES.                           or in part at a later date, thus maintaining the possi¬
                                                                   bility of remedying any unfavourable situations which
                                                                   might arise in the African, Caribbean and Pacific States
Having regard to the Treaty establishing the European              (ACP States) as a result of the system’s implementa¬
Economic Community, in particular article                          tion ;
113 .
Having regard to the proposal from the Commission (' ),            Whereas, however, most of the preference-giving coun¬
                                                                   tries exclude textile products from preferential treat¬
                                                                   ment ; whereas, under the Community scheme of gener¬
Having regard to the opinion of the European                       alized preferences, these products have always been
Parliament ( :),                                                   covered by special arrangements pursuant to which, for
                                                                    cotton textile and similar products, the preferences
                                                                    were originally granted in the form of duty-free ceilings
 Having regard to the opinion of the Economic and                   only to those beneficiaries under the generalized prefer-*
Social Committee ( 3 ),                                             ences scheme which were signatories to the Long-Term
                                                                    Arrangement regarding International Trade in Cotton
                                                                    Textiles ( LTA) or which, undertook, vis-a-vis the Com ¬
 Whereas in accordance with its offer made within the               munity, commitments similar to those existing under
 context of the United Nations Conference on Trade                  that Arrangement ;
 and Development ( UNCTAD ), the European Econ ¬
 omic Community opened generalized tariff prefer¬                   Whereas the Long-Term Arrangement has been
 ences , commencing in 1 97 1 . with particular reference to        replaced from 1 980 onwards by the Arrangement
 finished and semi-finished industrial products from                regarding International Trade in Textiles (MFA), and
 developing countries ; whereas the initial 1 0-year period         the Community has therefore, in the case of products
 of application of this system of preferences ended on              covered by the MFA, reserved preferences in the form
 3 1 December 1 9X0 ;
                                                                    of duty-free ceilings, for products originating in those
                                                                    countries or territories which signed Bilateral Agree¬
                                                                    ments, in the framework of the MFA, providing for
 Whereas the positive role played by this system in                 quantitative limitation of their exports of certain textile
 improving access for developing countries to the mar¬               products to the Community , of in those countries
 kets of the preference-giving countries was recognized              which undertook similar commitments          vis-a-vis the
 at the ninth session of the UNCTAD Special Com¬                     Community ; whereas, such commitments have been g
 mittee on Preferences ; whereas it was there agreed that            undertaken by                Bolivia, Chile, #Costa Rica,
 the objectives of the generalized preferences system                Ecuador, Honduras, Iran am! fricaragua ; whereas, for
 would not be fully attained by the end of 1980 , that it            products, it is therefore desirable that the Community
 should consequently be prolonged beyond the initial                 should continue to apply the generalized tariff prefer¬
  period and that an overall review of the system should             ences on the basis of the same principles until the
 take place in 1 990 ;                                               expiry of the MFA and the Bilateral Agreements con¬
                                                                     cluded with certain supplier countries ; whereas it
                                                                     should be provided that countries and territories
  Whereas the Community has therefore decided to                     accepting the renewal of such , agreements or giving
  apply generalized tariff preferences, in the context of            such commitments after the date of adoption of this
  the conclusions agreed in UNCTAD in accordance                     Regulation and before 1 January 1987 will be accorded
  with the intention expressed in the said Committee, in             preferential treatment as from 1 February 1988 in res*
  particular by all the preference-giving countries :                pect of the entire volume provided for in this Regula¬
                                                                     tion ; whereas countries and territories which accept the
                                                                     renewal of the said agreements or enter into similar
   Whereas the temporary and non-binding nature of the               commitments after I January 198 g will be accorded
  system means that the offer can be withdrawn wholly                preferential treatment from the first day of the second
                                                                     month following the date of commitment, in respect of
                                                                     a volume calculated in proportion to the period of the
   (') OJ-NoC                                                        year from the first day of the month following the date
   t;) OJNoC                                                         of the commitment until 31 December 1988: whereas,
   (') OJ No C                                                       in view of the special nature which trade in the prod-
 ---pagebreak---                  whereas the revisions of the preferential quantities
                 made for 1984 , 1985 and 1986 did not permit substantial
                  improvements in the offer which does not currently
                  reflect the reality                   of commercial trends nor
                  respond to the needs of the                    less-developed producer countries nor
       permit real growth in the textile scheme ; since there is therefore
                 a need to update the volumes opened and revise the
                  calculation method for these quantities ; whereas it seems
                  appropriate to take into account a fixed percentage of
                  total Community imports for each category of products ;
                  Whereas , according to this new method of calculation ,
                  for each beneficiary country , the quantity opened corresponds
                    in general to 1% of total community importations of the category
           . of products in question , excepting the most competitive
                  countries for which the quantities opened areO.2% of these
                   i mport at i ons ;
                  Whereas for the other textile products and apparel listed in - annex II
                  can be attained by providing for each category of product
                   individual tariff limits per benef i c i a ry , corresponding in general to 5Z
    of total CamuYity importations of the product categories in question;
                    Whereas , in the multilateral trade negotiations , in
                    accordance with paragraph 6 of the Tokyo Declaration,
                    the Community reaffirmed that special treatment
                    should be granted, wherever this is possible, to the
                     least-developed developing countries appearing on the
                     li»i in Annex Vi ;
                Whereas the benefit of such preferential tariff treatment                             j
                should be reserved for products originating in the coun ¬
                tries or territories under consideration, the concept of
                'originating products' being determined in accordance
                with the procedure laid down in Article 1 4 of Regula¬
                tion ( EEC) No 802/68 ( ' ) ;
               Whereas the Community preference arrangements
               applicable to Yugoslavia for textile products result
                exclusively from the. provisions of the Agreement
                between the European Economic Community and the
                Socialist Federal Republic of Yugoslavia (J);
                Whereas from l March 1986. the Kingdom of Spain
                 and the Portuguese Republic shall apply the Com¬
                 munity system of generalized preferences, in compli¬
                 ance with Articles 178 and 365 of the Act of Accession ;
                   Whereas, consequently, for 198 8 the Community
                   should open :
                    – for each of the categories of products covered by^rmex I, tariff
quota allocated a.iongst the Renter States                             for each
                        " of the countries and territories specified in column
                          5 of that Annex, and Ccrmuiity tariff ceilings at a *ero rate of
              duty for each of tne other countries and territories
              listed in Anex IV ; the limits of the quantities opened
                          are indicated in columns 6 and 1C of
                          Annex I
 ---pagebreak---      – for each category of products
                 shown in Annex II and for each of the coun¬
          tries and territories specified in Annex V,
         excluding Yugoslavia, fixed amounts                and
          Community tariff ceilings at a zero rate of duty ; the
          limits of the quantities opened are specified in
          columns 6 and 7 of the said Annex II ,
     – in respect of the manufactured jute and coir prod¬
         ucts listed in Annex 111 , a total suspension of cus¬
         toms duties for the beneficiary countries specified
         in column 3 against each of the categories of prod¬
         ucts shown in column 2 ;
       HAS ADOPTED THIS REGULATION :
                                Article 1
      I. From I January to 31 December 1987,
     Customs Tariff duties shall be :
    – totally suspended within the framework of tariff
        quotas ^ fj xec( cUty free amounts
                and Community tan / f ceilings in respect of
       the products listed in Annexes ! and 1 1,
   – totally suspended in respect of the fun and coir
       products listed in Annex III.
Spain and Portugal shall apply on the imports of prod¬
ucts referred to above the customs duties established in
accordance with Articles 178 and 365 of the 1985 Act of
Accession .
2 . The arrangements laid down in paragraph I shall
apply only in respect of products originating in the
countries and territories :
– specified individually in column 5 of Annex I or
     listed in Annex IV,
– listed in Annex V, as regards the products              in
     Annex II , with the exception OT Yugoslavia,
– listed in colum 3 of Avax III , for each of the category
     of products indicated in colcfin ?.
3 . Preferential entry as provided for in this Regulation
shall be subject to conformity with the definition of the
 ongin of products determined under the procedure iaid
 'truvn in Article 14 cf Regulation ( EEC ) No 802 / 68 .
 ---pagebreak---                             ucts concerned may have, it would ap^U^tne vol¬
Μ.' Λ .
                            umes   of preicixm»»«
                            urnes O!  preferential importsw –.-
                                                            should be determined
                                                                        --.        in
                            ternis of tonnes, pièces, or pairs, as appropnate.
                            Whereas for other textile products and apparel listed infamex II
                            appear possible to grant the preferences to the coun¬
                            tries or territories which are normally beneficiaries in
                            the other industrial sectors ;
                             Whereas, for jute and coir products, it was understood
                             that the preferences would be granted only where
                             special arrangements had been made with , the export¬
                             ing developing countries ; whereas these arrangements                rr-
                            have hitherto concerned India and Sri Lanka for coir
                            products, and India and Thailand for jute products ;
                            whereas, it would appear desirable to maintain also the
                            preferential advantage to the least-developed countries
                             in respect of jute and coir ;
        Whereas , during the 5 yearly review of the GSP for the years
        1986-1990 , the Community decided to postpone a revision of the
        textile scheme until a new MFA agreement is negotiated ; whereas
        this agreement was renewed for a further period of 5 years from
        1 August       1986 and an                                                 improvement
        of the textile scheme is possible ;
        Whereas this improvement must aim towards                        better            distribution
        of the offer , on the one hand , and its simplified administration
        on the other hand ; whereas the preferential advantages are not -
        used equally by beneficiary countries and it is necessary to
        ensure a more balanced usage of these advantages , particularly
         for the less developed countries ; in order to improve                               <
        preferential access for these latter countries , it is necessary
        to institute a new phase of differentiation between beneficiary
         countries of the preferential benefits ; this differentiation
         comprises withdrawal of the above-mentioned advantages for
         certain product categories originating in the most competitive
         countries , the criteria adopted being based on current capacity of the
         beneficiary country concerned , this capacity being expressed ,
         for individual product categories , by that country 's participation
         in total Community imports ; whereas for the application of this
         criteria a. 10X share of the total extra-EEC imports ’averaged
         over three years ( 1983 , 19S4 , 1985 ) is taken ;
         while it is necessary to make adjustments to this criteria when :
         - the gross national product o r-~ head of the country concerned is low
           and the country does not provide mors than 5 X ef total Community imports of textile
           products and appanpt
        – the total exports of textile products of the country
            concerned comprise almost exclusively a single product ;
          while particular aeasures are applicable, according to the sensitivity of products, to countries with a low gross rational
          proajct-per capita ' whose stare in the total Coaaunfty iaports of textile products exceeds 5% ;
 ---pagebreak---                                   Artide 2
                     The Council shall, acting by qualified majority,
                     establish the management rules of this Regulation.
                                    Artide   3
            ata closely to e„sure Md
                                  comp^   Commission uW) ceooer
                                  Artide 4
         This
          198 8
                Regulation shall enter into force on I January7
This Regulation shall be binding in its entirety and directly applicable in all Member
States .
Done at Brussels,
                                                             For the Council
                                                              The President
 ---pagebreak---                                                                                             Annex  II
                                   Proposai ‘for a
                         COUNCTL .REGULATION (EEQ
 concerning tne acninistration of the generalized tariff preferences applicable
 for 1988 to textile products originating in developing countries
       THE COUNCIL OF THE EUROPfcAN COMMUNITIES.
        Having regard to the Treaty establishing the European Economic Conutnity,
        Having regard to Regulation (EEC) N°                 /87 of the Cancil, and in
        particular article 2 thereof,
        Having regard to the proposal from the Commission,
        Whereas the Council has adopted Regulation ( EEC ) NO .                        / 87 of the
        Council of                       applying generalized tariff preferences for 1988
        to textile products originating in developing countries ;
        Whereas it is therefore appropriate to specify the relevant
        management provisions ,
     whereas, in order to ensure that each of the countries or
     territories referred to above has access to the preferen¬
     tial volumes, quotas and separate tariff ceilings for
     each beneticiary, whether or not allocated among the
     Member States , should be specified for each category
     of products ;
         whereas, in order to ensure that each of the countries or
         territories referred to above has access to the preferen¬
         tial volumes, quotas and separate tariff ceilings for
         each beneficiary should be specified for each category ' of products .
  . . ,                   and in view of the links
ï*,24ru~;«u«,VuVn,*'^,iwwi contro1"
                        contained within the MFA
 percentaoes asas foi     L!
                      follows   :  °f the Menber Stat « initial participation
     Benelux
                                                9.5 X
      Denma r k
                                                2.7 X
      Germany                                 25.5 X
     Greec e
                                                1.5 X
     Spa i n                                    7.5 X
      France
                                              16.5 %
      Ire Land
                                                0.8 %
      11a l y                                 13.5 %
     Portugal                                   1.5 %
     United Kingdom                           21.0 %
 ---pagebreak---    | Whereas, to take account of future import trends in the
   I various Member States in respect of the tariff quotas
     given in Annex I and to mitigate any inadequacy in the
     initial allocation , the quotas should,
     be divided into two tranches, the first being appor¬
     tioned among Member States and the second held as a
     reserve to cover the subsequent requirements of Mem¬
      ber States which have exhausted their initial shares ;
       whereas, moreover, the reserve thus constituted tends
       to avoid making the system of utilization of the quota
       excessively rigid, to the detriment of each of the devel¬
       oping countries concerned, and contributes to achiev¬
       ing the aim already mentioned of improving the gener¬
       alized preferences system ; whereas , to this end and to
       accord importers in each Member State some degree of
       security, the first tranche of the Community quota
        should be fixed at about7 0 % of the quota volumes ;
        Whereas Member States may exhaust their initial
        shares for the tariff quotas given in Annex 1 at different
        rates ; whereas, to avoid disruption of supplies on this
        account, it should be provided that each Member State
        which has almost used up one of its initial shares
        should draw an additional share from the correspond¬
        ing reserve ; whereas this must be done by each Mem¬
        ber State as and when each of its additional shares is
         almost entirely used up and repeated as many times as
        each of the reserves allows ; whereas each of these ini ¬
        tial and additional shares must be available for use
         until the end of the quota period ;
      Whereas, if, at a specified date in the quota period, a
      considerable balance remains in one of the initial
      shares of one or other Member State, it is essential that
      that Member State return a portion of it to the corres¬
      ponding reserve in order to prevent a part of the Com¬
      munity quota from remaining unused in one Member
      State when it could be used in others ;
    Whereas for the other textile products and apparel listed inamex II allocation
 amongst Member States is not appropriate where Community measures
              are concerned ;
    Whereas the fixed duty free amounts and ceilings meet
    this objective ; as regards fixed duty'free amounts , it is
    necessary to provide                                      for Member States
    to effect drawings on the quantities opened by means of
    quantities corresponding to their needs .
        Whereas , if a considerable balance remains in one of the fixed duty free
antxnt       shares of one or other Member State , it is essential
        that that Member State returns it
                 in order to prevent a part of the Community        »
     amount      from remaining unused in one Member Slate
        when it could be used in others^       _              ..      .. '■* –
 ---pagebreak--- Whereas the Community has adopted with effect from
1.1.1988 a combined nomenclature for goods                           which
meets the requirements of the Common Customs Tariff
and the nomenclature of goods for the external trade
statistics of the Community and statistics of trade
between Member States ; whereas this nomenclature has ,
for the purposes of encompassing other Community
measures , been expended into an integrated tariff
of the European Communities ( TARIC ); whereas since
 the nomenclature used for the scheme of generalised
 tariff preferences is based on the Common Customs
 Tariff , it is therefore necessary to identify goods
 covered by this Regulation by means of the Combined
 Goods Nomenclature and , where applicable , by the
 relevant TARIC code numbers ;
   Whereas, as regards the Community tariff quotas alio-'
   cated among the Member States, and the fixed duty
    free amounts ;
   – it is necessary to guarantee to all importers equal
        and continuous access to the abovementioned
        quotas wxi fixed duty free anoints
                 and uninterrupted application of the rates
         laid down for them             to all imports of the
         products concerned into all Member States until they
                have been used up,
      - drawings against the quotas and fixed duty free aroints
         can oily be made for goods entered for free circulation
         accompanied by a certificate of origin:
                                                                  <>
   Whereas, as regards the Community tariff ceilings the
   objectives sought may be achieved by applying a
   method of administration based on the charging, at
   Community level, of imports of the products in ques¬
   tion against the ceilings as and when these products'are
   entered for free circulation and are accompanied by a
   certificate of origin ; whereas this method of adminis¬
   tration must make provision for the reintroduction of
  the levying of customs duties as soon as the said ceil¬
  ings are reached at Community level ;
     Whereas the methods of administration for ;hV prod¬
     ucts listed in Annexes 1       and II. call for close and parti¬
     cularly rapid cooperation between Member States end
     the Commission, which must, in particular, be able to
     keep under observation the extent to which charges are
     made against the quotas , fi;;8d ^ free 3^3                v
                                  and the ceilings and inform
       Member States thereof;, whereas such cooperation
       should re particularly close in view of the need for the
       Commission to be able to take appropriate measures to
       reintroduce customs duties, when any of the ceilings is
       reached at Community level ;
 ---pagebreak--- Whereas, having regard to the rules applying to the
repayment or remission of import or export duties, and
in particular to Council Regulation (EEC) No 1430/
79 ( ' ) and Commission Regulation (EEC) No 3040/
83 (J), a procedure should be laid down to regularize
imports actually made within the preferential tarifT
limits opened under this Regulation and thus provision
should be made for the Commission to be able to take
appropriate measures ; whereas in order to avoid such
regularization causing excessive tarifT ceiling overruns,
provision should at the same time be made for the
Commission to be able to terminate set-offs ;
Whereas it is necessary to establish complete statistics
on imports admitted in accordance with the provisions
of this Regulation and to apply to the collection , prep¬
aration and transmission of these statistics Council
Regulations ( EEC) No 1445/72 ( ' ), ( EEC) No 3065/
75 0 and (EEC) No 1736/75 (3);
 Whereas, since the Kingdom of Belgium , the Kingdom
 of the Netherlands and the Grand Duchy of Luxem¬
 bourg are united within and jointly represented by the
 Benelux Economic Union, any measure concerning the
 administration of the shares allocated to that economic
 union or drawings by it on a fixed auty Tree amount
may be carried out by any one of its members,
    U O-J N° L 175. 12. 7. 1979, p. 1
    (-) OJ No L 297, 29. 1 0. 1 983, p. 1 3.
 ---pagebreak---       HAS ADOPTED THIS REGULATION :
                               Arncle 1
          The quotas , fixed duty free amounts.
          and ceilings established by Council Regulation
   ( EEC ) No        IfQ shall be administered according
           with the following provisions.
                          SECTION I
       Provisions concerning the administration of the
                    Community tariff ceilings
                           A rticle 2
Subject to Articles 3 and 4, preferential tariff treatment
shall be accorded for each category of products sub¬
jected in Annexes I and II to individual ceilings within
the limits of the quantities specified in column W of
Annex '                 and cqlLtTn 7 of Annex II .
                       rcspcctiveiy , to certain or*each of the
  countries or territories of origin listed in column 5 of
  those Annexes .
                             A rticle 3
   As soon as the individual ceilings determined in
   accordance with Article 2 are reached at the Com ¬
   munity level, the levying of customs duties on imports
   of the products in question originating in each of the
   countries or territories concerned may at any time be
   reintroduced until the end of the period referred to in
   Article 1 ( 1 ).
                              Article 4
   The Commission shall reintroduce , by means of a
    Regulation , the levying of customs duties in respect of
    any one of the countries ar.d territories referred to in
    Article 1 ( 2 ), under the conditions laid down in
    Article 3 .
    In the case of such a reintroduction , Spain and Portu¬
    gal shall reintroduce the levying of customs duties that
    they shall apply to third countries tin the date in
    question .
 ---pagebreak---                             > .
  By means of a Regulation,- the Commission may, even
 after 31 December 1987, take measures to stop quanti¬
 ties being charged against one or other preferential
 tariff limit, if, particularly as a result of regularizations
 of imports actually made during the period referred to
 in Article 1(1 ), these limits are exceeded.
 The Member State which initiates such regularizations
 shall communicate to the Commission as and when the
 figures of import charges relating thereto. The Commis¬
 sion, on receiving these communications, shall inform
 the other Member States thereof.
                          SECTION II
        Provisions concerning the administration of the
 Community tariff quotas allocated among Member States
                             Article 5
 The total suspension of customs duties within the
 framework of the Community tariff quotas allocated
 among the Member States , referred to in Article 1(1 ),
 concerns the categories of products in Annex I
    , for each of which the volume of the quota is speci¬
  fied individually in column 6 of that Annex with
  regard to certain beneficiary countries or territories of
  origin listed in column 5 of the samq Annex .
                            Article 6
1 . A first tranche of 70% of each of the Community
tariff quotas listed in Annex 1, the amount of which is
shown in column 7 of Annex I, shall be apportioned
among the Member States ; the shares for each Member
 State shall, subject to Article 9, be valid until
 31 December 198 8 and shall be those indicated in col¬
 umn 8 of Annex 1 aaainst each product or group of
  products subject to quotas listed therein.
   2. The second tranche of each of the tariff quotas
   shall constitute the reserve specified in each case in col¬
   umn 9 of Annex I.
 ---pagebreak---                      • ;     Article     7
1 . Where a Member Stale has used 90 V» or more of
one of its initial shares as fixed in Annex 1 , or of that
share minus any portion relumed to the reserve pur¬
suant to Article 9, it shall forthwith, by notifying the
Commission, draw a second share , to the extent 'that
the reserve so permits , equal to 10 % of its iniar.l sh»rt,
rounded up , should the occasion arise, to the nerrest
unit.
2.    Where a Member State , after exhausting one cf its
initial shares, has used 90 % or more of the second
share drawn by it, that Member State shall draw a third
share , under the conditions laid down in paragraph 1 ,
equal to 5 V« of its initial share .
3.    Where a Member State , after exhausting its second
 share , has used 90 Vo or more of the third share drawn
 by it, that Member State shall , under the same condi¬
 tions, draw a fourth share equal to the third.
 This process shall continue until the reserve has been
 exhausted .
                          >,    A rticle   8
    Without prejudice to the provisions of Article 9, addi ¬
    tional .shares drawn pursuant to Article? shall be valid
    until 31 December 19® .
                                A rticle   9
    The Member Slates shall return to the reserve, not later
     than 1 October 198 8 the unused portion of their initial
     share which on 15 September 198S exceeds 10 % of the
     initial amount. They may return a larger portion if there
     are grounds for believing that such portion may not be
     used . At the request of the Commission they may also
      make anticipatory returns .
      The Member States shall , not later than 1 October 1988
      notify the Commission of the total quantities of the
 ---pagebreak---           products ir> question '-vwroaed up to 13 September 1988
          and charged agaihst th,-. C.- T -* •'-unity quota*, and of any
          portion of their        sbrucs returned to 'he reserve.
                                    Article 10
           The CommitMon shall keep «;> account of the shares
           opened by the Member States pursuant to Articles 3
           and 7 and shall, as soon as the information reaches it,
           inform each Member State of the extent to which the
           reserve has been used up.
           It shall, not later than 15 October 1988 inform the
           Member States of the amount still in reserve following
           any return of shares pursuant to Article9-
            It shall ensure that, when an amount exhausting the
           reserve is drawn , the amount so drawn docs not exceed
            the balance available and to this end shall notify the ,
            amount of that balance to the Member State' making
            the last drawing.'
            The Member States shall take all appropriate measures
            to ensure that additional shares drawn pursuant to
            Article 7 are opened in such a way that imports may be
            charged without interruption against their cumulative
            shares of the Community tariff quotas.
                                     Article 11
             The . Member States shall take all appropriate measures -
             to ensure free access to the shares which have been
             allocated to them for importers of the products in ques¬
             tion who are established in their territory .
                                   SECTION 111
                   Provisions cwixlKg the •d"ili*|fltr»tliHi of
                     fixed riity f rce jointe .
                                 Article 12
l Trie total suspension of customs drties within thfi fra7evork
 of the fixed duty free amounts referred to in Article 1
   concern the categories of predicts of Annex IT, for each of
     which the volime of the amount is specified indiviciially in
     colum 6 of that Annex, with regard to the countries or
     territories specified in column 5 of the same Annex .
     Fixed ckjty free amo.nts shall be administered by the Cormiissicn.
 ---pagebreak--- If an importer present in a Member State a certificate
of entry into free circulation, including a request for
preferential benefit far a product subject to a fixed duty
free amount and if this request is accepted by the Cus¬
toms authorities the Member State concerned shall
draw, by means of notification            the Commission, it
quantity corresponding to its needs .
The requests for drawing, with the indication of the
date of acceptance of the said declarations, must be
communicated to the Commission without delay .
The drawings are granted by the Commission following
the date of acceptance of the certificate of entry into
free circulation by the Customs authorities of the Mem ¬
ber State concerned , to the extent that the balance of
the said amount permits.
If a Member State does not use the quantities drawn, it
shall return them as soon as possible to the correspond ¬
ing amount .
 If the quantities requested are greater than the available
balance of the fixed duty free amount, allocation shall
be made on a pro rata basis with respect to the requests .
 Member States shall be informed by the Commission in
accordance with the same procedures .
                            Article 1 3
 1.     The Commission shall keep account of the quan ¬
 tities drawn by the Member States according to
 Article 10 and shall inform each of them as soon as it
 receives notification of the amounts in question having
 been used up . It shall ensure that the drawings are
 limited to the quantities available .
 The fact that the fixed amounts have been used shall
 forthwith be brought to the notice of Member States .
 This communication shall be the subject of a publica¬
 tion in the Official Journal of the European Communi¬
  ties , C Series .
  2 . Each Member State shall guarantee to importers of
  the products mentioned above free access to the fixed
  duty free amounts . It shall take all the measures neces¬
  sary to ensure that the drawings which are carried out
  under Article 10 make it possible to charge, without
  interruption , against these amounts .
                             SECTION IV
                          GENERAL PROVISIONS
                               A rticle 8 14
     Bv 2 8 February I989 at the latest, Member States shall
     notify the Commission of the final total of the quanti¬
     ties charged and any balance of shares still unused at
     31 December 1        . Up to the limit of the balance
     remaining, and at the request of the Member States, the
     Commission shall authorize the Member States to
     make any necessary regularization of the quantities
     charged against imports actually made during the
     period referred to in Article I ( l ). The Commission
     shall inform the other Member States thereof
 ---pagebreak---                                     Article   \ç
      Articles 2 , £ /rnd S ; he' ! not apr-ly to the reentries listed
      in Ann ** vr .
                                    Article 16
       I.   Imports of the products in question shall be
       charged against the national shares 3rd qjota shares
                                                    of Member States'
         and the Community ceilings as and when the products
         are entered for free circulation and are accompanied by
         a certificate of origin pursuant to the rules referred to in
         Article I ( 3 ).
         2. Goods may be charged against a ceiling or admit¬
         ted under a share or quota share only if the
         certificate of origin
                   referred to in paragraph l is presented before
       the date on which the levying of duties is reintroduced.
       3 . The extent to which the tariff quotas , fixed duty free amounts and
   Community ceilings have been' used up shall be determined
       at Community level on the basis of the imports charged
       in accordance with paragraphs 1 and 2 .
                                    Article 1 /
        I.   The Member Stated shall , within six weeks of the
        end of each quarter at the latest, forward to the Statisti¬
        cal Olticc of the European Communities the relevant
        statistical data for the products entered for free circula¬
        tion in the quarter concerned under generalized prefer¬
        ential treatment in accordance with the provisions of
        the present Regulation . This data, transmitted according to
the codes of the corrfained nomenclature ard where applicable of
the TARIC shall show the country of origin, value, quantity ard
any supplementary units as defined by Regulation ( EEC) No 1736/75 .
      2. However, in the case of products subject to quotas*
             or fixed duty free anoints,
       the Member States shall , by the l lth day of each month
       at the latest, forward to the Commission the list of
       charges effected during the previous month . In the case
       of products subject to ceilings, the Member States shall
       forward to the Commission , at its request and under
       the same conditions , the list of charges effected during
       the previous month .
       At the Commission 's request, when the level of 75% of
       the non-allocated ceiling is reached , the Member States
       shall forward to the Commission the lists of charges
       every 10 days : these lists shall be forwarded within five
       days from the end of each 1 0-day period .
        3.   The Commission shall ensure the publication in the
        OfficialJournal of the European Communities (C series)
 ---pagebreak---           the tarifT ceilings as and when they reach 100%
          utilization .
          Tt :hall see that the Statistical Office of the European
          Communities ensures the publication of the annual
          state of import charges .
                                    Article 18
          The Member States and the Commission shall cooper¬
          ate closely to ensure compliance with this Regulation .
                                    Article 19
          This Regulation shall enter into force on 1 January
           198 8
This Regulation shall be binding in its entirety and directly applicable in all Member
Stales .
Done at Brussels .
                                                             For the Council
                                                              The President