CELEX: 51978PC0375
Language: en
Date: 1978-07-27
Title: Proposal for a COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of Community tariff quotas for port wines, falling within heading ex 22.05 of the Common Customs Tariff, and originating in Portugal (1979/80)#Proposal for a COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of Community tariff quotas for Madeira wines, falling within heading ex 22.05 of the Common Customs Tariff, and originating in Portugal (1979/80)#Proposal for a COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of Community tariff quotas for Setubal muscatel wines falling within heading ex 22.05 of the Common Customs Tariff, and originating in Portugal (1979/80) (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 375
Vol. 1978/0141
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                      ,             COM(78)375 final.
                                                    Brussels , 27 July 1978
                               Proposal for a
                          COUNCIL REGULATION (EEC )
        opening , allocating and providing for the administration
           of Community tariff quotas for port wines , falling
          within heading ex 22.05 of the Common Customs Tariff ,
                    and originating in Portugal ( 1979/80 )
                               Proposal for a
                          COUNCIL REGULATION (EEC )
           opening , allocating and providing for the administration
            of Community tariff quotas for Madeira wines , falling
            within heading ex 22.05 of "the Common Customs Tariff ,
                    and originating in Portugal (1 979/80 )
                               Proposal for a
                          COUNCIL REGULATION (EEC )
           opening , allocating and providing for the administration
            of Community tariff quotas for Setubal muscatel wines v
            falling within heading ex 22.05 of "the Common Customs
              Tariff , and originating in Portugal ( 1979/80 )
               (submitted to the Council "by the Commission)
C0M(78) 375 final .
 ---pagebreak---               Article A of Protocol No 8 to the Agreement of 1972 between the
              European Economic Community and the Portuguese .Republic as amended by
              Article 9 of the Interim Agreement of 1976 , provides for the opening
              of Community tariff quotas for the wines listed below :
on Customs                                           Annual                Rate of
ff heading            Description of goods           Tota l                reduct ion
                                                     Vo lume
2.05 C III a ) 1      Port wines                     35 000 hi                 60%
2.05 C IV a ) 1       - in containers holding
                         two litres or less
2.05 C III b ) 1      Port wihes                   280 000 hl                  50%
2.05 C IV b ) 1          in containers holding
                         more than two litres
2.05 C III a ) 1      Madeira wines                    1 500 hl                60%
2.05 C IV a ) 1       - in containers holding
                         two litres or less
2.05 C III b ) 1      Madeira wines                   14 500 hl                 50%
2.05 C IV b ) 1        - in containers holding
                         more than two litres
2.05 C III a ) 1       Setubal muscatel wines          1 000 hl                 60%
2.05 C IV a ) 1        - in containers holding
                         two litres or less
2.05 C III b ) 1       Setubal muscatel wines          2 000 hl                 50%
2.05 C IV b ) 1        - in containers holding
                         more than two litres
         Those wines will remain subject to provision relating to
         tho oommon organization of the market in wino .
     2 , In order to most the Community' a obligations to Portugal from 1.1.1979
         regulations have to be adopted providing for the opening / allocation and
         administration of Community tariff quotas .
                                                                       « ■ •/ • • •
 ---pagebreak---         Up to and including 1978, these tariff quotas opened by the Community
        have been valid for a period of one calendar year . Owing to certain
       characteristic features inherent in the production and marketing of
  ^    these wines , however , the bulk of the Community 's imports occur from
      October to February , and setting the expiry date at 31 December has
      made it extremely difficult to utilize the quot;/o properly . In order ,
      to resolve this problem it is proposed that the expiry date now be set
      at 30 June of each year from 30 June 1980, and thereafter . The next
      quota will therefore run for 18 months , and the quota volumes will be
      150% of the quantities indicated above .
     The opinion of the competent Portughese authorities wr.V sought , and
     they also favour an 18 month transitional period ..
     This is subject of the annexed proposals .
3.  The Regulations provide , in the normal way , that each of the volumes
    shall, be divided into two instalments , the first of which' is to be
    allocated among the Member States and the second held as a rpser"°         -
    The allocation of the first instalment is usually based on statistics
    for the three preceding years and on forecasts for the period in
    question . In the absence of specific Community statistics for these
    wines the initial quotas have .been calculated on the basis of the
    most recent statistics for Portuguese exports from 1975 to 197 "?).
    The Portuguese statistics can in fact be considered to give a rough
    picture of Community imports of the wines in question .
4.  Owing to the special characteristics of the trade in these wines ,
    which also differ between Member States , the regulation , exceptionefLy ,
    does not establish a uniform method of administration .
ANNEXES :     3 proposals for Regulations of the Council .
 ---pagebreak---                                          ES P L, A N A T £ R Y,. WE M g R A N D UM
                  1 .- Article 4 of Protocol No 8 to the Agreement of 1972 between tne
                       European Economic Community and the Portuguese Republic as amended by
                       Article 9 of the Interim Agreement of 1976 , provides for the opening
                       of Community tariff quotas for the wines listed below :
       on Customs                                                                Annual            Rate of
       ff beading               Description of goods                             Totra l           reduct ion
                                                                                 Volume
 mt
.t '   2.05 C ni a )    1       Port wines ■                                     35 000 hl             60%
  ?i
            r*
       2.05 U   IV a )  1       - in containers holding
                                  two litres or less
       2.05 C III b ) 1         Port wines                                      280 000 h ^            50%
 i»!   2.05 C   IV b ) 1          in containers holding
                                  more than two litres
 e:    2.05 C III a ) 1         Madei ra wines                                     1  500 hl .          60%
 e     2.05 C   IV a ) 1        - in containers holding
                                  two litres or less
 e. ~  2.05 C III b ) 1       . Madeira wines                                     14 500 hl             50%
  ei   2.05 C   IV b ) 1   .    - in containers holding
                                  more than two litres
  e:   2.05 C III a ) 1         Setubal muscatel. wines                          ' 1 000 hl         •   60%
  e)   2.05 C   IV a ) 1        - in containers holding
                                  two litres or less
■ 01 / 2.05 C III b ) 1         Setubal muscatel. wines                            2 000 hl             50%
  it   2.05 C   IV b ) 1        - in containers holding
                                  more than two litres
                Those wines will remain subject to provision relating to
                "the ooirunon organization of the market in wine .
            2 « In order to most the Community * a obligations to Portugal from 1.1.1979
                 regulations have to be adopted providing for the opening/ allocation and
                administration of Community tariff quotas . _
                                                                                               • ■ •/ • •
 ---pagebreak---            Up to and -inc luding 1978,, these tariff quotas opened by the Community
          have been valid for a period of one calendar yegr . Owing to certain
          characteristic features inherent in the production and marketing of
          these wines , however , the bulk of the Community 's imports occur from
         October to February, and setting the expiry date at 31 December has
         made it extremely difficult to utilize the quot«/o properly . In order ,
         to resolve this problem it is proposed that the expiry date now be sei
         at 30 June of each year from 30 June 1980, and thereafter . The next
         quota will therefore run for 18 months , and the quota volumes will be
         150% of the quantities indicated above .
        The opinion of the competent Portughese authorities wn - sought , and
        they also favour an 18 month transitional period ..
   _    This is subject of the annexed proposals .
3.     The Regulations provide , in the normal way , that each of the volumes
       shall be divided into two instalments , the first of which is to be
       a I located among the Member States and the second held "as a rmpr " a    :-
       The allocation of the first instalment is usually based on statistics
       for the three preceding years and on forecasts for the period in
       question . In the absence of specific Community statistics for these
       wines the initial quotas have been calculated on the basis of the
     - most recent statistics for Portuguese exports from 1975 to 197 ?).
       The Portuguese statistics can in fact be considered to give a. rough
       picture of Community imports of the wines in question .
4.     Owing to the special characteristics of the trade in these wines ,
        which also differ between Member States , the regulation , exceptionefi.y ,
       does not establish a uniform method of administration .
ANNEXES :        3 proposals for Regulations of the Council .
 ---pagebreak---                                                                                                         ANNEX A
                                                         PROPOSAI:    FOR A.
                                            COUNCIL REGULATION ( EEC)
                                        s . •
                        opening , allocating and providing for the administration of Community tariff
                        quotas for port wines falling within heading No ex 22.05 of the Common
                                        Customs Tariff        " originating in Portugal ( 197W8Q ) -
          THE COUNCIL OF THE EUROPEAN
          COMMUNITIES,                          ■ -
          Having regard to the Treaty establishing the European .
        " Economic Community, and in particular Articles 43
          and 1 1 3 thereof,                  •
          Having regard to the proposal from the Commission,
          Having regard to the opinion of the European Parlia-
       . ment(' ),
          Whereas Article 4 of Protocol 8 to the Agreement
          between the European Economic Community and the                     J
          Portuguese Republic (*), as amended by the Interim
          Agreement between the European Economic Commu-.
          nity and the Portuguese Republic (5), provides that
          customs duties on imports into the Community of
          certain wines originating in Portugal, shall be                                            ~~
         reduced :
         – by 60 % in the case of the duties applicable to ■
              port wines falling within subheadings ex 22.05 C
              III a) 1 and ex 22.05 C IV a) 1 of the Common
              Customs Tariff up to a total annual tariff quota of
              35 000 hl, and                                                                              ,
         – by 50 % in the case of the duties applicable to                                          -
              port wines falling within subheadings ex 22.05 C
              III b) 1 and ex 22.05 C IV b) 1 of the Common
              Customs Tariff up to a total annual tariff quota of        '                               *
              280 000 hl ;                                                          ,
      Whereas , owing to certain characteristic features inherent in the production
      and marketing of the products in - quest ion ,, the expiry date" for the validity - -
      of the tariff quotas should henceforward be fixed at 30 June ; whereas the
      tariff quotas should therefore be opened for the period 1 January 1979
      to 30 June 1980 , and the volumes increased respectively to 52.500 hectolitres
      and 420.000 hectolitres ; whereas these wines remain subject to the provisions
      governing the common organization of the market in wine products , especially a
      regards observance of the reference price ;
(1)   0J N° C
( 2 ) 0J N° L 301 , 31 . 1 2 . '1972 , p. 165
( 3 ) 0J N° L 266 , 29.9.1976 , p. 2
 ---pagebreak---                  Whereas CcuncU Regulation ( EEC ) N" 2506/.7o of 29 September 1975 Laying
                 down special rules for the importation of products in the wine-growing
                 sector originating in certain tnird countHesd ) introouced the notion
                 of a -free -at –frontier reference price ,, being the reference price less
                 customs duties actually levied ;
                                        •Whereas it is in particular necessary to ensure for alt
                                         Community importers equal and uninterrupted access
                                          t0 the abovementioned quotas and •umntemjpted
                                          application of the rates laid down for these quotas to
                                          ail imports of the predicts concerned into all Member
                                          States until the quotas have been used up ; -whereas,
                                   - ' having regard to the abov^ principles, the
                                          Community nature of the quotas can be respected by
                                       allocating the Community tariff quota among the
                                       Member Stales ; whereas, in order to reflect as                 .
                                       accurately as possible the true trend of the market           ■   ,
                                       in the products in, question, such allocation .should
                                       be in proportion to the requirements of the Member
                                       States, calculated by reference to the statistics
                                      -of each State 's imports, from Portugal over a
                                       representative reference period and also to the
                                       economic outlook for the quota period concerned ;
                                        Whereas available Community statistics give no infor­
                                        mation on the situation of port wines on the markets ;
                                        whereas, however^Portuguese statistics for exports of
                                        these products to the Community during the past
                                        three years can be considered to reflect approximately
                                        the situation of Community imports ; whereas on this
                                        basis the corresponding imports by each of the
                                        Member States for the past three years represent the
                                         following percentages of the imports into the Commu­
                                         nity from Portugal of the products concerned :
                                                            –                "Î 19751
                                                                                         1S76 '197?
                                         Port wines :                /
                                         – in receptacles containing tv/o
                                              litres or less :
                                              – Benelux
                                              – Denmark
                                                                                îi       17,8 20,0
                                                                                          6,2 5,6 "
                                                                                15.3 11,0 9,2
                                              – Germany                          29.0 36,0 35,3
                                              – France
                                              – Ireland                           0,4 0,2 0.5
                                                                                 16.1 18 3 16,6
                                              – Italy                            14.4 10,5 11 JB
                                              _ United Kingdom
                                               in receptacles containing more
                                               than two litres :
                                               – Benelux
                                                                        N        13.4 15,7 17,1
                                                                                   5,5     7,0   5,2
                                               – Denmark                                   6Λ    8.6
                                                                                 10,4
                                               – Germany                                  46,5 47,0
                                               – France
                                               –: Ireland                                  0,6   0,1
                                                                                           00
                                               – Italy
                                               – United Kingdom
                                                                                  30~1 ,  23,8  22~Q
(1 ) ÛJ N° L 256, 2.10.1S75, p. .2
 ---pagebreak---                                               - 3 -                                     ANNEX    A
                          Whereas, in view of these data and the estimates
                          submitted by certain Member States, initial quota
                          shares may be fixed approximately at the following
                          percentages :
                                                      Port wines in receptacles
                                                              containing :
                                                   two litres              more than
                                                    or iess                two litres
                                              1                    I
                          Bénélux                 . 166                      14-6
                          Denmark                     5-7                     6-6
                          Germany                    14-9                     8-7
                          France   -                 29-7                    42-5
                          Ireland                     0-8                     0-2
                          Italy "             ;      18-6                     0-1
                          United Kingdom       j     13-7          j         27-3
Whereas , in order to take into account import trends for the products concerned in
the various Member States , each of the quota amounts should be divided into two\
 instalments , the first being shared among the Member States and the second consti­
tuting a reserve to cover at a later date the requirements of the Member States
which have used up their initial quota shares ; whereas , in order to give importers'
in each Member State a certain degree of security , the first instalment of the Community
quotas should , under the present circumstances , be fixed at 90% of each of the auotq
volumes .
Whereas the Member States' initial shares may be used up at different times ;
whereas , in order to take this fact into account and avoid any break in continuity ,"
any Member State    which has almost used up its initial quota shares should draw an
additional share from the corresponding reserve ; whereas this must be done by each
Member State as and when each of its additional shares is almost                             used up ,
and   repeated as many times as the reserve allows ; whereas the initial and addi­
tional shares- must be valid until the end of the quota period ; whereas this method
of administration requires              close cooperation between Member States and the
Commission , and the     latter         must be in a position to monitor the extent to
which the quota volumes have been used up and to inform the Member States thereof ; .
                                                                                           I   .
Whereas if , at a given date in the quota period , a substantial quantity of an initial
share remains unused in any Member State it is essential that that Member State
should return a significant proportion to the reserve , to prevent a part of any
Community 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 united in and represented by the Benelux Economic
Union , any operation relating to the administration of the quota - shares allocated
to that Economic Union may be carried out by any of its^members ,                     .
 ---pagebreak---                                                                     - 4 -                                               ANNEX A
     HAS ADOPTED THIS REGULATION :
                                 Article 1
                                                                                                     Article 2
     1.   From 1 January 1S7S to 30 Jiwie 1330, Coorau-                    1.    The tariff quota* referred to in Articlo 1 shall bs
    nity tariff quotas shall be opened for products origi­                 divided into two instalments.                                               *
     nating in Portugal, within the limits set Out below :
                                                                           2.    A first instalment of each quota shall be shared
                                                                           among the Member States ; the respective shares which
          CCT heading No             Description     Quota amount
                                                                            subject to Article 5, shall be valid until
                               1
                                                                            30 June 1980, shall be as follows :
    ex 22.05 C Ilia) 1 '
    ex 22.05 C IV a) 1           | Port wines           52 500 h!
                                                    " 420 000 hl                                            Port wines under subheadings :
    ex 22.05 C III b) 1
    ex 22.05 C IV b) 1
                         -
                                 | Port wines                                                         ex 22.05 C III a) |       I ex 22.0* C III 1>) I
                                                                                                              and              I         and
                                                                                                   | ex 22.0S Ç IV a) I           ex 22 (M C IV h) |
    2.    The Common Customs Tariff duties on wines                       Bénélux                            7.840                  ■   55 200
    imported within these tariff quotas shall be suspended                Denmark                  I    .   2. 700            |         24 960
    at the rates set out below :                                          Germany                           7 040                      32 S00
                                                                          France,                         14 030                      160 600
                                                                          Ireland                         ■    380        .•                760
               CCT heading 'No                   Rate of duty
                                                                          Italy                             8" 7S0                          330
    ex 22.05 CIII a) 1                           5-4 u.a./ hi
                                                                          United Kingdom         I          6 470            |        103 200
    ex 22.05 C IV a) 1     ■                     5-8 u.a./hl      .                        Total j     . 47 250                       378 D00
    ex 22.05 C III b) I                          5-5 u.a./ hl
    ex 22.05 C IV b) I                      j|   6-0 u.a./hl
3.      The admission of these wines under the
 Community tariff quotas referred to in
paragraph 1 shall be conditional upon
observance of the reference price
applicable to them .                              .
4.      The wines in question shall benefit
from these tariff quotas on condition that
the prices on import into the Community
are not at any time less than the free-
at-frontier reference prices applicable thereto ,,
as specified in Regulation ( EEC ) No 2506 / 75
iand in subsequent instruments .
 ---pagebreak---                                    - 5 -                             ANNEX   A
3.    The second instalment of each quota , 5 250 and 42 000 hectolitres
respectively , shall constitute the reserve .
                                  Article 3
1.    If 90% or more of one of the Member State s initial shares as specified
in Article 2 ( 2 ) or 90% , or of that share minus the portion returned to the
reserve where Article 5 is applied , has been used up , then , to the extent
permitted by the amount of the reserve , that Member State shall forthwith ,
by notifying the Commission , draw a second share equal to 15% of its initial
share , rounded up where necessary to the next unit .
2.    If , after one of its initial shares has been used up , 90% or more of the
second share drawn by a Member State has been used up , then , to' the extent
permitted by the amount of the reserve , that Member State shall , in accordance
with the conditions laid down in paragraph 1 , draw a third share equal to
7.5% of its initial share , rounded up where necessary to the next unit .
3.    If , after one of its second shares has been used up , 90% or more of the
third share drawn by a Member State has been used up , that Member State shall ,
in accordance with the conditions laid down in paragraph 1 , draw a fourth share
equal to the third .
                                                         •    ^               -
     This process shall continue until the reserve is used up .        .
4.   By way of - derogation from paragraphs 1 to 3 , a Member State may , draw shares
smaller than those fixed in those paragraphs if there is reason to believe that these
might not be used up .    It shall inform the Commission of its reasons for applying •
this paragraph .                                                                     '
                                  Article 4
     Additional shares drawn pursuant to Article 3 shall be valid until
30 June 1980 .   •
 ---pagebreak---                                      - 6 -                        ANNEX A
                                   Article 5
        The Member States shall return to the reserve , not later than 1 April 1980 ,
 such unused portion of their initial share as , on 15 March 1980 , is in excess
of 20% of the initial volume . They may return a larger quantity if there are
grounds for believing that it might not be used .
        The Member States shall , not later than 1 April 1980, notify the Commission
of , the total quantities of the products in question imported up to 15 March 1980
and charged against the Community quotas and of any quantities of the initial
 shares returned to the reserve .               1
                                   Article 6
        The Commission shall keep an account of the shares opened by the Member
States pursuant to Articles 2 and 3 and shall/ as soon as it is notified ,
inform each State of the extent to which the reserve has been used up .
        The Commission shall inform the Member States not later than 5" Apri I 1980
of the amount in each reserve after quantities have been returned pursuant to
Arti cle 5 .
        The Commission shall ensure that'any drawing which uses up any reserve
is limited to the balance avai lable, and to this end shall' indicate the amount of
their balance to the Member State which makes such last drawing .
                                   Article 7
1. •    The Member States shall take all measures necessary to ensure that
additional shares drawn pursuant to Article 3 are opened in such a way that
imports may be charged without interruption against their accumulated shares
of the Community quotas .                                     '
2.      The Membe-r States shall ensure that importers of the products in question
established in their territory have free access to the shares _ al located
to them .
3.      The extent to which a Member State has used up its shares shall be
determined on the basis of     imports of the products in question originating in
Portugal and entered with the customs authorities for home use ."
 ---pagebreak---                                   - 7 -                      ANNEX A
                                Article 8
                                                                            ■c *
      At the request of the Commission , the Member States shall inform it of imports
of the products concerned actually charged against their shares .
                                Article 9
      The Member States and the Commission shall cooperate closely in order
to ensure compliance with this Regulation .
                                Article 10
      This Regulation shall enter into force on 1 January 1979 .
      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 B
                                                   PROPOSAL      Fuk A
                                     COUNCIL REGULATION (EEC)
                  opening, allocating and providing for the administration of Community tariff
                  quotas for Madeira wines falling within heading No ex 22.05 of the Common
                                   Customs Tariff        originating in Portugal ,( 1979 / 80)
  THE COUNCIL OF THE EUROPEAN
   COMMUNITIES,
  Having regard to the Treaty establishing the European
   Economic Community, and in particular Articles 43
   and 1 1 31 thereof,           .
   Having regard to the proposal from the Commission,
; Having regard to the opinion of the European Parlia­
  ment ( '), ,                                                                                 .
  Whereas Article 4 of Protocol 8 to the Agreement
  between the European Economic Community and the                      ~
   Portuguese Republic (2), as amended by the Interim
• Agreement between the European Economic Commu­
   nity and the Portuguese Republic (3), provides that
  customs duties on imports into the Community of
  certain wines . originating in Portugal, shall be              ,
  reduced :
    – by 60 % in the case of the duties applicable to
  '     Madeira wines falling within subheadings ex 22.05 .
        C III a) 1 and ex 22.05 C IV a) 1 of the Common
        Customs Tariff up to a total annual tariff quota of
        1 500 hl , and
    – by 50 % in the case of the duties applicable to
        Madeira wines falling within subheadings ex 22.05
        C III b) 1 and ex 22.05 C IV b) 1 of the Common
        Customs Tariff up to a total annual tariff quota of
j'      14 500 his                      ■    '   -
 !■:
 H                                                           " •
-Whereas , owing to certain characteristic features inherent in the production and-
 Marketing of the products in 'question , the expiry date for the validity of the
     tariff quotas should henceforward be fixed at 30 June ; whereas the tariff quotas
    should therefore be opened for the period 1 January 1979 to 30 June 1980 , and the
      volume increased respectively to 2 250 hectolitres and 21 750 hectolitres ; whereas
 !•'
    these wines remain subject to the provisions governing the common organization of th
    Tiarket in wine products , especially as regards observance of the reference price ;
 ii . .
If
    0J N° C.
    0J N° L 301 , 31.12.1972 , p. 165 .
  'DJ N° L 266, 29.9.1976, p. 2 -
 ---pagebreak---                                                                 - 2 -                                 ANNEX B
             Whereas Council Regulation ( EEC ) N° 2506/ 76 of 29 September 1975 laying down
              special rules for the importation of products in the wine-growing sector
                                                                       (1)
             originating in certain third countries                             introduced the notion of a free-at-
              frontier reference price , being the reference price less customs duties actually
              levied ;
                                   Whereas it is in particular necessary to ensure for all
                                    Community importers equal and uninterrupted access
                                    to the ■ abovementioned quotas and uninterrupted
                                    application of the rates laid down for these quotas to
                                    all imports of the products concerned into all Member
                                    States until the quotas have been used up ; whereas.
                                    having regard to the above principles, the
                                    Community nature of the quotas can be respected by
                                    allocating the Community tariff quota among the
                                    Member States ;       whereas in order to reflect as
                                     accurately as possible the true trend of the- market
                                     in the products in question , such allocation should
                                     be in proportion - to the requirements of the Member
                                     States ; calculated by reference to the statistics,
                                     of each State 's imports from - Portugal over a          1
                                     representative reference period and also to the
                               ••    economic outlook for the quota period concerned ;
                                   Whereas available Community statistics give no infor­
                                   mation on the situation of Madeira "wines o; : the               ~    i . •<
                                   markets ; whereas, however, Portuguese statistics for
                                   exports of these products to the Community during
                                   the past three years can be considered to reflect
                                   approximately the situation of Community imports ;
                                   whereas on this basis the corresponding imports by
                                   each of the Member States for the past three years
                                   represent the following percentages of the imports
                                   into the Community from Portugal of the products
                                   concerned :
                                                                         ! 1975 1S76 1S77
                                                                         i
                                   Madeira wines :
                                   – in       receptacles containing two         !
                                        litres or less :
                                       – Benelux                           28.7 14.2 21.9
                                       – Denmark
                                       – Germany                           3tø , 2M      20.3
                                       – France
                                       – Ireland
                                                                            2.5 35.1     'li
                                       – Italy                             i?i 2:8 M
                                       :– United Kingdom                   10.0     S.5 13.4
                                   – in receptacles containing more
                                        than two litres :
                                       –> Benelux                          13.6 12.4 14.5
                                       – Denmark                           10.6 14,8 10.7
                                       – Germany                           21.4 17.5 21.0
                                       – France                            46.7 43,4 41.7 ,.
                                       – Ireland                                    °;i
                                       – Italy
                                       – United Kingdom                     7.7    11 JB 12Tl
,1 ) 0J H° L 256, 2.10.1S;75, p. 2
 ---pagebreak---                                                                                ANNEX B
                Whereas, in view of these data and the estimates
                submitted by certain Member States, initial quota
                shares may be fixed approximately at the following
                percentages :
                                              Madeira wines in receptacles
                                                       containing :
                                           two titres               more than
                                         ' ; or less •              two litres
                Bénélux             1   ■ ; 18-4              I       14-0
                Denmark               ■      22-9                     16-5
               Germany .                      13-1                    19-1
               France                          3-6                    40-8
               Ireland              I          M                       01
               Italy                         25-8                      01
               United Kingdom       j        15-1           |          9-4
Whereas , in order to take into account import trends for the products concerned
in the various Member States , the quota volumes should be divided into two
instalments , the first being shared among the Member States and the second cons­
tituting a reserve to cover at a later date the requirements of the Member States
which have used up their initial quota shares ; whereas , in order to give importers
in each Member State a certain degree of security , the first instalment of the
Community quotas should , under the present circumstances , be fixed at 90% of. each
of the 1 quota volumes ;
Whereas the Member States'initial shares may be used up at different times ~;
whereas , in order to take this fact into account and avoid any break in continuity ,
any Member State which has almost used up its initial share should draw an additional
share from the corresponding reserve ; whereas this must be done by each Member
State as and when each of its additional shares is almost .                    used up , and
repeated as many times as the reserve allows ; whereas the initial and additional
shares must be valid until the end of the quota period ; whereas this method of
administration requires close cooperation between Member States and the Commission , ;
and the     latter      must be in a position to monitor the extent to which
volumes have been used up and to inform Member States thereof ;
Whereas if, at a given date in the quota period , a substantial quantity of an
initial share remains unused in any Member State it is essential that that Member
State should return a significant proportion to the reserve , to prevent a part of
any Community quota from remaining unused in one Member State when it could be used
in others ;
 ---pagebreak---                                                            - 4 -               ANNEX B
 Whereas / since the Kingdom of Belgium , the Kingdom of the Netherlands and the
 Grand Duchy of       Luxembourg are united in and represented by the Benelux
 Economic Union , any operation relating to the administration of the quota              f
 shares allocated to that Economic Union may be carried out by any                  . of
 its members ,
                      HAS ADOPTED THIS REGULATION :
                                                Article 1
                      1.     From I January 1979 to 30 June 1980, Commu­
                      nity tariff quotas shall be opened for products origi­
                      nating in Portugal, within the limits Set Out below :
                            cor
                                               Description        Quota amount
                         heading No
                ex 22.05 C III a) 1
                ex 22.05 C IV a) 1 "        |Madeira wines         2 250 hl
                ex 22.05 C III b) l
                ex 22.05 C IV b) 1          |Madeira wines       21 750 hl
                2.    The Common Customs Tariff duties on wines
                imported within these tariff quotas shall be suspended
                at the rates set out below :
                             CCT heading No                   Rate of ducy
                ex  22.05  C  III a)                        ' 5-4 u.a./ hl
                ex  22.05  C  IV  a) 1                        5-8 u.a./hl
                ex  22.05  C  III b) 1                        5-5 u.a./hl
                ex  22.05  C  IV  b) I
                                                              6-0 u.a./hl
3.       The admission of these wines under the Community tariff quotas referred to
in paragraph 1 shall be conditional upon observance of the reference price
applicable to them :                 . •                •
4.       The wines' in question shall benefit from these tariff quotas on condition
that the prices on import I' into " the Community are not at any time less than the
f ree-at -frontier reference prices applicable thereto , as specified in Regulation
 ( EEC ) No 2506 / 75 and in subsequent. instruments .
 ---pagebreak---                                                                                     ANNEX B
                                    Article 2
              1.   The tariff quotas referred to in Article 1 shall be
             divided into two instalments.
             2.    A first instalment of each quota s^hall he shared
             among the Member States ; the respective shares which, subject
             to Article 5, shall be valid until 30 June 1980 shall
              be as follows :
                                                                      (hectolitres)
                                         Madeira wines under subheadings :
                                      ex 22.05 C II ! a) I ex 22.05 C III b) I
                                             and                   and
                                      ex 22.05 C IV a) 1    ex 22.05 C IV b) I
             Bénélux                           375             2,740
             Denmark                           460             3 230
                                               265             3 740
             Germany
             France                           . 75            7 9no
             Ireland                            25             , 20
             Italy ...                         520                 20
             United Kingdom                    305             1 840
                              Total         2 025            14 560
             3.    The second instalment of each quota, 225
             2 170 hectolitres respectively, shall constitute the
             reserve.
                                       Article 3
If 90% or more of one of a Member State 's initial shares as specified in^
Article 2 ( 2 ), or of that share minus the portion returned to the reserve                 :
where Article 5 is applied , has been used up , then , to the extent permitted
by , the amount of the reserve , that Member State shall forthwith , by not"i.fy-p»2
the Commission , draw a second share equal to ^Hf/fof its initial share , roundec
up where necessary to the next unit .
If , after one of its initial shares has been used up , 90% or more of the
second share drawn by- a Member State has been used up , then , to the extent
permitted by the amount of the reserve , that Member State shall , in accordance .
with the conditions laid down in paragraph 1 , draw a third share equal to 7.5% of
its initial share , rounded up where necessary to the next unit .
 ---pagebreak---                                       - 6 -                            ANNEX B
3.   If , after one of its second shares has been used up , 90% or more of the
     third share drawn by a Member State has been used up , that Member State
     shall , in accordance with the conditions laid down in paragraph 1,draw a
     fourth share equal to the third .
     This process shall continue until the reserve is used up..
4.   By way of derogation from paragraph 1 to 3 , a Member State may draw shares
     smaller than those fixed in those paragraphs if there is reason to believe
   j
     that they might not be used up .    It shall inform the Commission of its
     reasons for applying this paragraph .          ^
                                   Article 4
Additional shares drawn pursuant to Article 3 shall be valid until 30 June 1980
                                   Article 5           .
The Member States shall return to the reserve , not later than 1 April 198.0,
such unused portion of their initial share as , on 15 March 1980 , is in
excess of 20% of the initial volume . They may return a larger quantity if
there are grounds for believing that it might not be used .
The Member States shall , not later than 1 April 1980 , notify the Commission
of the total imports of the products in question imported up to 15 March 1980
and charged against the Community quotas and of^any quantities of the initial
shares returned to the reserve .
                                   Article 6
The Commission ^sha 1 1 keep an account of the shares opened by the Member States
   pursuant to Articles 2 and 3 and shall, as soon as it is notified ,
inform each State of the extent to which the reserve has been used up .
It shall inform the Member States ,, not later than 5 April 1980, of the     .
amount in each reserve after quantities have been returned pursuant to .
Article 5 .
 ---pagebreak---                                     - 7 -                            ANNEX B
The Commission shall ensure any         drawing which uses up any reserve is Limited to
the balance avai lable,and io this end shall indicate the amount of that balance
Member State which makes such last drawing .
                                   Article 7
1 . The Member States shall take, all measures necessary to ensure that additional
    shares drawn pursuant to Article 3 , are - opened in such a way that imports may be
    charged , without interruption against their accumulated shares of the Community
     quotas . .
2 . The Member States shall ensure that importers of the products in question
     established in their territory have free access to the shares allocated to them .
3 . The extent to which a Member State has used up its shares shall be determined
    on the basis of imports of the products in question originating in Portugal
     and entered with the customs authorities for home use .
                                  Article 8
At the request of the Commission , the Member States shall inform it of imports of
the products concerned actually charged against their shares .
                                  Article 9
The Member States and the Commission shall cooperate closely in order to ensure
 compliance with this Regulation .
                                  Article 10
This Regulation shall enter into force on 1 January 1979 ..
                                                      :    ' • -#4*
          This Regulatipn shall be binding in its entirety and directly
          applicable in all Member States .
Done at Brussels ,                                      For the Council
                                                        The President
 ---pagebreak---                                                                                              ANNEX C
                                                       PROPOSAL  FOR A
                                         COUNCIL REGULATION (EEC)
                                                       *
                       opening, allocating and providing for the administration of Community tariff    '
                       quotas for Setubal muscatel wines falling within heading No ex 22.05 of the
                                 Common Customs Tariff         originating in Portugal ( 1979 / 80 )
         THE COUNCIL OF THE EUROPEAN                                                                 .
         COMMUNITIES,
         Having regard to the Treaty establishing the European
         Economic Community, and in particular Articles 43
         and 1 1 3 thereof,        -
         Having regard to the proposal from the Commission,
         Having regard to the opinion of the European Parlia-.
         ment ( '),
         Whereas Article 4 of Protocol 8 to the Agreement
       . between the European Economic Community and the
         Portuguese Republic (J), as amended by the Interim
         Agreement between the European Economic Commu­
         nity and the Portuguese Republic (3), provides that
         customs duties on imports into the Community of                           .
         certain wines originating in Portugal, shall be
         reduced :   -
         – by 60 % in the case of the duties applicable to
             Setubal muscatel wines falling within subheadings
           ^ ex 22.05 C III a) 1 and ex 22.05 C IV a) 1 of the
             Common Customs Tariff up to a total annual tariff
             quota of 1 000 hi, and
         – by 50% in the case of the duties applicable to
             Setubal muscatel wines falling within subheadings
             ex 22.05 C III b) 1 and ex 22D5 C IV b) 1 of the
             Common Customs Tariff up to a total annual tariff
             quota of 2 000 hi ;
       Whereas owing to certain characteristic features inherent in the production
       and marketing of the products in question , the expiry date for the validity
       of the tariff quotas should henceforward be fixed at 30 June ; whereas the
       tariff quotas should therefore be ' opened for the period 1 January 1979
       to 30 June 1980, and the volumes increased respectively to 1.500 hectolitres
       and 3 000 hectolitres ;               whereas these wines remain subject to the provisions
        governing the common organization of the market in wine products , especially
        as regards observance of the reference price ;
( 1 ) 0J N° C
( 2 ) 0J N° L 301 , 31.12.1972, p. 165
( 3 ) 0J N° I 266 , 29.9.1976 , p. 2
 ---pagebreak---                                                                    - 2 -                        ANNEX C
                          Whereas Council Regulation ( EEC ) N° 2506/ 76 of 29 September 1975
                          laying down special rules for the importation of products in the
                          wine-growing sector originating in certain third countries
                          introduced the notion of a f ree-at - f rentier reference price , being
                          the reference price less customs duties actually levied ;
                                      Whereas it is in particular necessary to ensure for all
                                      Community importers equal and uninterrupted access
                                      to the abovementioned quotas and uninterrupted
                                      application of the rates laid down for these quotas to
                                      all imports of the products concerned into all Member
                                      States until the quotas have been used up ; whereas,
                                      having regard to the above principles, the
                                      Community nature of the quotas can be respected by
                                      allocating the Community tariff quota among the
                                      Member States ;       whereas , in order to reflect as
                                       accurately as possible the true trend of the market
                                       in the products in question such allocation should
                                       be in proportion to the requirements of the Member
                                      States , calculated by reference to the statistics,
                                      of each State 's imports from Portugal over a
                                      representative reference period and also to the
                                      economic outlook for the quota period concerned ;
                                     Whereas available Community statistics give no infor­
                                     mation on the situation of Setubal muscatel wines on
                                     the markets ; whereas, however, Portuguese statistics
                                     for exports of these products to the Community
                                     during the past three years can be considered to
                                     reflect approximately the situation of Community
                                     imports ; whereas on this basis the corresponding
                                     imports by each of the Member States for the past
                                     three years represent the following percentage^ of the
                                     imports into the Community from Portugal of the
                                     products concerned :
                                                                             lS75j 1976    1S77
                                     Setubal muscatel wines :
                                     – in      receptacles containing  two
                                         litres or less :                  ]
                                         – Bénélux                                     -      6
                                         – Denmark                             20    83       6
                                         – Germany                             80      -      -
                                         – France                               -      -     a
                                         – Ireland                         i           -   '  -
                                         – Italy                                      17      -
                                         – United Kingdom                                    60
                                     – in receptacles containing more                    '
                                         than two litres :                 I        .
                                         – Bénélux                         I    -
                                         –1 Denmark                        I           -
                                         – Germany                                     -      -
                                         – France                               -      -      -
                                         – Ireland                              -      -
                                         – Italy                           I           -      -
                                         – United Kingdom                  |      | m j
(1 ) OJ N° L 256, 2.10.1975. p. 2
 ---pagebreak---                                        - 3 -                                          ANNEX C
              Whereas, in view of these data and the estimates
              submitted by certain Member States, initial quota
              shares may be fixed approximately at the following
              percentages :
                                             Sctubal muscatel wines in
                                               receptacles containing :
                                          two litres              more than
                                           or less                two litres
              Bénélux                        20                      20
              Denmark                         5      .                  5
              Germany                        20                      20
              France                         20                      20
              Ireland        .          ■     5                         S
              Italy            /             10                      10      .
              United Kingdom      j| -       20 .■ |                 20
Whereas , in order to take into account import trends for the products
concerned in the various Member States , each of the quota volumes should
be divided into two instalments , the first being shared among the Member
States and the second constituting a reserve to cover at a later date
requirements of Member States which have used up their initial quota
shares     whereas , in order to "give importers in each Member State                    a
 certain degree of security , the first instalment of the "Community quota
 should , under the present circumstances , be fixed at 90% of each of the
quota volumes ;
Whereas the Member States? initial shares may be used up at different
times ; whereas , in order to take this fact into account and avoid any
break in continuity , any Member State which has almost used up its initial
quota shares should draw an additional share from the corresponding reserv.e
whereas this must be done by each flember State as and when each of its
additional shares is almost                               used up , and repeated as many times
as the reserve allows ; whereas the initial and additional shares must' be
valid until the end of the quota period ; whereas this method of administra­
tion requires close cooperation between Member States and the Commission ,
and the     latter      must be in a position to monitor the extent to* which the
quota volumes have been used up and to inform the Member States thereof ;
 ---pagebreak---                                           - 4 -                                        ANNEX C
Whereas if , at a given date in the quota period, a substantial quantity of an
 initial share remains unused in any Member State it is essential that that Member,
State should return a significant proportion to the reserve to prevent, a
part of any Community 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 pf Luxembourg are united in and represented by the
Benelux Economic Union , any operation relating to the administration of the                       j
quota shares allocated to that Economic Union may be carried out by any of its
members ,
                                                                                 :   ■         ^ !
                 HAS ADOPTED THIS REGULATION :                    .
                                           Article 1
                 1.    From I January 1979 to 30 June 1S80, Commu­
                nity tariff' quotas shall be opened for products origi­
                nating in Portugal, within the limits set OUt below :
                       OCT heading No           Description         Quota amount
                                            \ Setubal
                    22.05 C III a) i
                ex
                ex  22.0.5 C IV a) I
                                            > muscatel           ; 1 500 hl        ;
                                            ) wines
                ex  22.05 C III b) 1         ) Setubal
                ex  22.05 C IV b) 1
                                             / muscatel              3 000 hl
                                             ) wines
                2.     The Common Customs Tariff duties on wines
                imported within these tariff quotas shall be suspended
                at the rates set out below :
                            OCT heading No                     Rate of duty
                ex 22.05 C III a) 1                            5-4 u.aVhl
                ex 22.05 C IV a) 1 •                           5-8 u.a./ hl
                ex 22.05 C III b) t                          , 5-5 u.a./hl
                ex 22.05 CIVb) t                       I
                                                         j     6-0 u.a./hl .
 ---pagebreak---                                       - 5 -                                           ANNEX C
The admission of these wines under the Community tariff quota referred
to in paragraph 1 shall be' conditional upon observance of the refe­
rence price applicable to them .                                           -
The wines in question shall benefit from these tariff quotas on
condition that the prices on import into the Community are not                                .
at any time less than the f ree-at - f rontier reference prices applicable
thereto , as specified in Regulation ( EEC ) No 2506 / 75 and in subsequent
instruments .
                                      Article 2
             1 . The tariff quotas referred to in Article 1 shall be
            divided into two instalments. .                                         j
                                         i
            2.    A first instalment, of each quota shall be allocated
            among the Member States ; the respective shares which , subject
            to Article 5, shall be valid until 30 June 1£80,.shall be
             as follows :                                                    -   ..
                                                                        (hectolitres)
                                                Sctubal muscatel wines
                                                  under subheading*:
                                     I ex 22.05 C IH a) I ^I ex 22.05 C 111 b) l
                                              and          ![         and
                                    !j ex 22.05 C IV a) I !j ex 22.05 C IV b) I
            Bcnelux                 I         270          I        - 540
            Denmark                        •■ 63              ■ - ■   135
            Germany                 j         270                -    540      .
            France                 J          270                     540
            Ireland                             67                    135
            Italy                             135                     270
           •United Kingdom           |:       270 . |[                540
                             Total         1 350                    2 700
            3.    The second instalment of each quota,                    ,JU
            300 hectolitres respectively, shall constitute the
            reserve.
 ---pagebreak---                                - 6 -
                             Article 3
                                          /  •                           '
1.    If 90% or more of the Member State 's initial share as specified in
      Article 2 ( 2 ), or of that share minus the portion returned to the
      reserve where Article 5 is applied , has been used up , then , to the
      extent permitted by the amount of the reserve , that Member State
      shall forthwith , by notifying the Commission / draw a second share
      equal to 15% of it's initial share , rounded up where necessary to
      the next unit .
2.    If , after one of its initial shares has been used up , 90% or more of
      the second share drawn by a Member State has been used up , then , to
      the extent permitted by the amount of the reserve , that Member State
      shall , in accordance with the conditions laid down in paragraph 1 ,
      draw a third share equal to 7.5% of its initial share , rounded up
      where necessary to the next unit .
3.    If , after one of its second shares has been used up , 90% or more of
      the third share drawn by a Member State has been used up , that Member
      State shall , in accordance with the conditions laid down in paragraph 1 ,
   . draw a fourth share equal to the third .
      This process shall continue until the reserve is used up .
4.    By way of derogation from paragraphs 1 , 2 and 3 , a Member State may
      draw shares smaller than those fixed in -those paragraphs if there is
    - reason to believe that these might not be used up .   It shall inform the
      Commission of its reasons for applying this paragraph .
                             Article 4
Additional shares drawn pursuant to Article J shall be valid until
30 June 1980 .                     '
 ---pagebreak---                               - 7 -                         ANNEX C
                            Article 5
The Member States shall return to the reserve , not later than 1 April '1980,
 such unused portion of their initial share as , on 15' March 1980 , as' in'
excess of 20% of the initial volume . They may return a larger quantity if
there are grounds for believing that it may not " be used .
The Member States shall , not later than 1 April 1980, notify the Commission
of the total quantities of the products in question imDorted up to 15 . March
 1980 and charged against the Community quotas and of any quantities of the
initial shares returned to each reserve .
                               ^                                           ·
                            Article 6
The Commission shall keep an account of the shares opened by the Member
States pursuant to Articles 2 and 3 and shall , as soon as it is
notified, inform each Member State of the extent to which the reserve
has been used up .     f
It shall inform the Member States , not later th$n .5 April 1980 , of the
amount of each reserve after quantities have been returned pursuant to
Article 5 .
The Commission shall ensure that any drawing which uses up the reserve
is limited to the balance available and to this end shall indicate the
amount thereof to the Member State which makes such last drawing .
                            Article 7
1.   The Member States shall take all measures necessary to ensure that
     additional shares drawn pursuant to Article 3   are opened in such
     a way that imports may be charged without interruption against their
                                                                 i
     accumulated shares of the Community quotas .    ~             -
                                                          /
2.   The Member States shall ensure that importers of the products in question
     established in their territory have free access to the shares allo­
     cated to them .                                    ,
 ---pagebreak---                               - 8 -                                ANNEX C
3.  The extent to which a Member State has used up its shares shall be
    determined on the basis of imports of the products in question
    originating in Portugal and entered with the customs authorities.,
    for home use .                                                      .
                              Article 8
At the " request of the Commi ssion , J:he Member States shall inform it of
imports of the products concerned actually charged against their shares .
                              Article 9
The Member States and the Commission shall cooperate closely in order
to ensure compliance with this Regulation .
                              Article 10
This Regulation shall enter into force on 1 January 1979 .
   This Regulation shall be binding in its entirety and directly
   applicable in all Member States .
                                                        f            .    '
Done at Brussels ,                                        For the Council
                                                          The President
                                                                            Λ