Article 114 
1. With the aim of remedying the harmful effects of the instability of export earnings and to help the OCT overcome one of the main obstacles to the stability, profitability and sustained growth of their economies, to support their development efforts and to enable them in this way to ensure economic and social progress for their peoples by helping to safeguard their purchasing power, a system shall be operated to guarantee the stabilization of export earnings derived from the OCT's exports to the Community or other destinations as defined in Article 117, of products on which their economies are dependent and which are affected by fluctuations in price or quantity or both these factors. 2. In order to attain these objectives, transfers shall be devoted, in accordance with a framework of mutual obligations to be agreed between the relevant authorities of the country or territory concerned and the Commission in each case, either to the sector, interpreted in the widest possible sense, that recorded the loss of export earnings and be used there for the benefit of economic operators adversely affected by this loss, or, where appropriate, to diversification, either for use in other appropriate productive sectors, in principle agricultural, or for the processing of agricultural products. Article 115 1. The following products shall be covered: CN code 1. Groundnuts in shell or shelled 2. Groundnut oil 3. Cocoa beans 4. Cocoa husks, shells and skins and other waste 5. Cocoa paste 6. Cocoa butter 7. Cocoa powder 8. Raw or roasted coffee 0901 11 to 0901 22 9. Extracts, essences and concentrates of coffee 2101 10 11 2101 10 19 10. Cotton not carded or combed 11. Cotton linters 1404 20 12. Coconuts 0801 10 13. Copra 14. Coconut oil 1513 11 1513 19 15. Palm oil 16. Palm kernel oil 1513 21 1513 29 17. Palm nuts and kernels 18. Raw hides and skins 4101 10 to 4101 30 19. Leather of bovine animals 4104 10 to 4104 29 4104 31 11 4104 31 19 4104 31 30 4104 39 10 20. Sheep and lamb skin leather 21. Goat and kid skin leather 22. Wood in the rough and squared 23. Sawn wood 24. Fresh bananas 0803 00 10 25. Dried bananas 0803 00 90 26. Tea 27. Raw sisal 28. Vanilla 29. Cloves 30.Wool not carded or combed 31.Fine animal hair of Angora goat - Mohair 5102 10 50 32. Gum arabic 1301 20 00 33. Pyrethrum; saps and extracts of pyrethrum 1211 90 10 1302 14 34. Essential oils 3301 11 to 3301 29 35. Sesame seed 1207 40 CN code 36. Cashew nuts and kernels 0801 30 37. Pepper 38. Shrimps and prawns 0306 13 0306 23 39. Squid, octopus and cuttlefish 0307 41 0307 49 0307 51 0307 59 40. Cotton seed 1207 20 41. Oil cake 2306 10 2306 50 2306 60 2306 90 93 42. Rubber 43. Peas 44. Beans 0713 31 to 0713 39 ex 0713 90 45. Lentils 46. Nutmeg and Mace 47. Shea nuts 1207 92 48. Shea nut oil ex 1515 90 40 to ex 1515 90 99 49. Mangoes ex 0804 50. 2. In all cases of application of the system, the Commission shall, in the interests of the country or territory concerned, consider as products within the meaning of this Chapter: (a) each product listed in paragraph 1; (b)products groups 1 and 2, 3 to 7, 8 and 9, 10 and 11, 12 to 14, 15 to 17, 18 to 21, 22 and 23, 24 and 25, 47 and 48. Article 116 If, 12 months after the entry into force of this Decision, one or more products not contained in the list in Article 115 but upon which the economies of one or more of the OCT depend to a considerable extent are affected by sharp fluctuations, the Council, acting on a proposal from the Commission, may decide, not more than six months after the presentation of a request by the relevant authorities of the country or territory concerned, to include the said product or products in the list, taking account of factors such as employment, deterioration of the terms of trade between the Community and the country or territory concerned, the level of development of the country or territory concerned and the conditions which characterize products originating in the Community. Article 117 The system shall apply to earnings from exports by each country or territory to the Community of each product referred to in Article 115 (2). Article 118 For the purposes stipulated in Article 114 and for the period laid down in Article 154, the amount provided for in paragraph 1 (a) (iii) of that Article shall be allocated to the system. This amount shall cover all commitments under the system. It shall be managed by the Commission. Article 119 1. The overall amount referred to in Article 118 shall be divided into a number of equal annual instalments corresponding to the number of years of application of Article 154. 2. Whatever balance remains at the end of each year of application of Article 154 except the last shall be carried forward automatically to the following year. Article 120 The resources available for each year of application are made up of the sum of the following: 1. the annual instalment, plus any amounts available or less any amounts used under Article 121 (1); 2.the sums carried forward under Article 119 (2). Article 121 1. If the total amount of the transfer bases in a year of application, calculated in accordance with Article 124, and where appropriate reduced in accordance with Articles 128 to 130, exceeds the amount of resources available in the system for that year, advance use shall be made automatically, for each year except the last, of a maximum of 25 % of the following year's instalment. 2. If, after the operation referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases referred to in paragraph 1 for the same year of application, the amount of each transfer basis shall be reduced by 10 % of that amount. 3. If, after the reduction referred to in paragraph 2, the total amount of the transfers so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the amounts by which each transfer was reduced. 4. If, after the reduction referred to in paragraph 2, the total amount of the transfers which may give rise to a payment exceeds the amount of available resources, the Council, having evaluated the situation on the basis of a Commission report on the probable development of the system, shall examine the steps to be taken to remedy that situation, within the terms of this Decision. Article 122 In the case of any balance remaining from the overall amount referred to in Article 118 after the expiry of the last year of administration of the system in the period laid down in Article 154, (a) the amounts resulting from the application of the percentages referred to in Article 124 (3) and (4) shall be repaid to each country or territory in proportion to the deduction or deductions made in application of those provisions; (b)if any balance remains after the application of (a), the Council shall decide, on a proposal from the Commission, on its use. Article 123 1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 115 
1. The following products shall be covered: CN code 1. Groundnuts in shell or shelled 2. Groundnut oil 3. Cocoa beans 4. Cocoa husks, shells and skins and other waste 5. Cocoa paste 6. Cocoa butter 7. Cocoa powder 8. Raw or roasted coffee 0901 11 to 0901 22 9. Extracts, essences and concentrates of coffee 2101 10 11 2101 10 19 10. Cotton not carded or combed 11. Cotton linters 1404 20 12. Coconuts 0801 10 13. Copra 14. Coconut oil 1513 11 1513 19 15. Palm oil 16. Palm kernel oil 1513 21 1513 29 17. Palm nuts and kernels 18. Raw hides and skins 4101 10 to 4101 30 19. Leather of bovine animals 4104 10 to 4104 29 4104 31 11 4104 31 19 4104 31 30 4104 39 10 20. Sheep and lamb skin leather 21. Goat and kid skin leather 22. Wood in the rough and squared 23. Sawn wood 24. Fresh bananas 0803 00 10 25. Dried bananas 0803 00 90 26. Tea 27. Raw sisal 28. Vanilla 29. Cloves 30.Wool not carded or combed 31.Fine animal hair of Angora goat - Mohair 5102 10 50 32. Gum arabic 1301 20 00 33. Pyrethrum; saps and extracts of pyrethrum 1211 90 10 1302 14 34. Essential oils 3301 11 to 3301 29 35. Sesame seed 1207 40 CN code 36. Cashew nuts and kernels 0801 30 37. Pepper 38. Shrimps and prawns 0306 13 0306 23 39. Squid, octopus and cuttlefish 0307 41 0307 49 0307 51 0307 59 40. Cotton seed 1207 20 41. Oil cake 2306 10 2306 50 2306 60 2306 90 93 42. Rubber 43. Peas 44. Beans 0713 31 to 0713 39 ex 0713 90 45. Lentils 46. Nutmeg and Mace 47. Shea nuts 1207 92 48. Shea nut oil ex 1515 90 40 to ex 1515 90 99 49. Mangoes ex 0804 50. 2. In all cases of application of the system, the Commission shall, in the interests of the country or territory concerned, consider as products within the meaning of this Chapter: (a) each product listed in paragraph 1; (b)products groups 1 and 2, 3 to 7, 8 and 9, 10 and 11, 12 to 14, 15 to 17, 18 to 21, 22 and 23, 24 and 25, 47 and 48. Article 116 If, 12 months after the entry into force of this Decision, one or more products not contained in the list in Article 115 but upon which the economies of one or more of the OCT depend to a considerable extent are affected by sharp fluctuations, the Council, acting on a proposal from the Commission, may decide, not more than six months after the presentation of a request by the relevant authorities of the country or territory concerned, to include the said product or products in the list, taking account of factors such as employment, deterioration of the terms of trade between the Community and the country or territory concerned, the level of development of the country or territory concerned and the conditions which characterize products originating in the Community. Article 117 The system shall apply to earnings from exports by each country or territory to the Community of each product referred to in Article 115 (2). Article 118 For the purposes stipulated in Article 114 and for the period laid down in Article 154, the amount provided for in paragraph 1 (a) (iii) of that Article shall be allocated to the system. This amount shall cover all commitments under the system. It shall be managed by the Commission. Article 119 1. The overall amount referred to in Article 118 shall be divided into a number of equal annual instalments corresponding to the number of years of application of Article 154. 2. Whatever balance remains at the end of each year of application of Article 154 except the last shall be carried forward automatically to the following year. Article 120 The resources available for each year of application are made up of the sum of the following: 1. the annual instalment, plus any amounts available or less any amounts used under Article 121 (1); 2.the sums carried forward under Article 119 (2). Article 121 1. If the total amount of the transfer bases in a year of application, calculated in accordance with Article 124, and where appropriate reduced in accordance with Articles 128 to 130, exceeds the amount of resources available in the system for that year, advance use shall be made automatically, for each year except the last, of a maximum of 25 % of the following year's instalment. 2. If, after the operation referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases referred to in paragraph 1 for the same year of application, the amount of each transfer basis shall be reduced by 10 % of that amount. 3. If, after the reduction referred to in paragraph 2, the total amount of the transfers so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the amounts by which each transfer was reduced. 4. If, after the reduction referred to in paragraph 2, the total amount of the transfers which may give rise to a payment exceeds the amount of available resources, the Council, having evaluated the situation on the basis of a Commission report on the probable development of the system, shall examine the steps to be taken to remedy that situation, within the terms of this Decision. Article 122 In the case of any balance remaining from the overall amount referred to in Article 118 after the expiry of the last year of administration of the system in the period laid down in Article 154, (a) the amounts resulting from the application of the percentages referred to in Article 124 (3) and (4) shall be repaid to each country or territory in proportion to the deduction or deductions made in application of those provisions; (b)if any balance remains after the application of (a), the Council shall decide, on a proposal from the Commission, on its use. Article 123 1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 116 
If, 12 months after the entry into force of this Decision, one or more products not contained in the list in Article 115 but upon which the economies of one or more of the OCT depend to a considerable extent are affected by sharp fluctuations, the Council, acting on a proposal from the Commission, may decide, not more than six months after the presentation of a request by the relevant authorities of the country or territory concerned, to include the said product or products in the list, taking account of factors such as employment, deterioration of the terms of trade between the Community and the country or territory concerned, the level of development of the country or territory concerned and the conditions which characterize products originating in the Community. Article 117 The system shall apply to earnings from exports by each country or territory to the Community of each product referred to in Article 115 (2). Article 118 For the purposes stipulated in Article 114 and for the period laid down in Article 154, the amount provided for in paragraph 1 (a) (iii) of that Article shall be allocated to the system. This amount shall cover all commitments under the system. It shall be managed by the Commission. Article 119 1. The overall amount referred to in Article 118 shall be divided into a number of equal annual instalments corresponding to the number of years of application of Article 154. 2. Whatever balance remains at the end of each year of application of Article 154 except the last shall be carried forward automatically to the following year. Article 120 The resources available for each year of application are made up of the sum of the following: 1. the annual instalment, plus any amounts available or less any amounts used under Article 121 (1); 2.the sums carried forward under Article 119 (2). Article 121 1. If the total amount of the transfer bases in a year of application, calculated in accordance with Article 124, and where appropriate reduced in accordance with Articles 128 to 130, exceeds the amount of resources available in the system for that year, advance use shall be made automatically, for each year except the last, of a maximum of 25 % of the following year's instalment. 2. If, after the operation referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases referred to in paragraph 1 for the same year of application, the amount of each transfer basis shall be reduced by 10 % of that amount. 3. If, after the reduction referred to in paragraph 2, the total amount of the transfers so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the amounts by which each transfer was reduced. 4. If, after the reduction referred to in paragraph 2, the total amount of the transfers which may give rise to a payment exceeds the amount of available resources, the Council, having evaluated the situation on the basis of a Commission report on the probable development of the system, shall examine the steps to be taken to remedy that situation, within the terms of this Decision. Article 122 In the case of any balance remaining from the overall amount referred to in Article 118 after the expiry of the last year of administration of the system in the period laid down in Article 154, (a) the amounts resulting from the application of the percentages referred to in Article 124 (3) and (4) shall be repaid to each country or territory in proportion to the deduction or deductions made in application of those provisions; (b)if any balance remains after the application of (a), the Council shall decide, on a proposal from the Commission, on its use. Article 123 1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 117 
The system shall apply to earnings from exports by each country or territory to the Community of each product referred to in Article 115 (2). Article 118 For the purposes stipulated in Article 114 and for the period laid down in Article 154, the amount provided for in paragraph 1 (a) (iii) of that Article shall be allocated to the system. This amount shall cover all commitments under the system. It shall be managed by the Commission. Article 119 1. The overall amount referred to in Article 118 shall be divided into a number of equal annual instalments corresponding to the number of years of application of Article 154. 2. Whatever balance remains at the end of each year of application of Article 154 except the last shall be carried forward automatically to the following year. Article 120 The resources available for each year of application are made up of the sum of the following: 1. the annual instalment, plus any amounts available or less any amounts used under Article 121 (1); 2.the sums carried forward under Article 119 (2). Article 121 1. If the total amount of the transfer bases in a year of application, calculated in accordance with Article 124, and where appropriate reduced in accordance with Articles 128 to 130, exceeds the amount of resources available in the system for that year, advance use shall be made automatically, for each year except the last, of a maximum of 25 % of the following year's instalment. 2. If, after the operation referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases referred to in paragraph 1 for the same year of application, the amount of each transfer basis shall be reduced by 10 % of that amount. 3. If, after the reduction referred to in paragraph 2, the total amount of the transfers so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the amounts by which each transfer was reduced. 4. If, after the reduction referred to in paragraph 2, the total amount of the transfers which may give rise to a payment exceeds the amount of available resources, the Council, having evaluated the situation on the basis of a Commission report on the probable development of the system, shall examine the steps to be taken to remedy that situation, within the terms of this Decision. Article 122 In the case of any balance remaining from the overall amount referred to in Article 118 after the expiry of the last year of administration of the system in the period laid down in Article 154, (a) the amounts resulting from the application of the percentages referred to in Article 124 (3) and (4) shall be repaid to each country or territory in proportion to the deduction or deductions made in application of those provisions; (b)if any balance remains after the application of (a), the Council shall decide, on a proposal from the Commission, on its use. Article 123 1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 118 
For the purposes stipulated in Article 114 and for the period laid down in Article 154, the amount provided for in paragraph 1 (a) (iii) of that Article shall be allocated to the system. This amount shall cover all commitments under the system. It shall be managed by the Commission. Article 119 1. The overall amount referred to in Article 118 shall be divided into a number of equal annual instalments corresponding to the number of years of application of Article 154. 2. Whatever balance remains at the end of each year of application of Article 154 except the last shall be carried forward automatically to the following year. Article 120 The resources available for each year of application are made up of the sum of the following: 1. the annual instalment, plus any amounts available or less any amounts used under Article 121 (1); 2.the sums carried forward under Article 119 (2). Article 121 1. If the total amount of the transfer bases in a year of application, calculated in accordance with Article 124, and where appropriate reduced in accordance with Articles 128 to 130, exceeds the amount of resources available in the system for that year, advance use shall be made automatically, for each year except the last, of a maximum of 25 % of the following year's instalment. 2. If, after the operation referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases referred to in paragraph 1 for the same year of application, the amount of each transfer basis shall be reduced by 10 % of that amount. 3. If, after the reduction referred to in paragraph 2, the total amount of the transfers so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the amounts by which each transfer was reduced. 4. If, after the reduction referred to in paragraph 2, the total amount of the transfers which may give rise to a payment exceeds the amount of available resources, the Council, having evaluated the situation on the basis of a Commission report on the probable development of the system, shall examine the steps to be taken to remedy that situation, within the terms of this Decision. Article 122 In the case of any balance remaining from the overall amount referred to in Article 118 after the expiry of the last year of administration of the system in the period laid down in Article 154, (a) the amounts resulting from the application of the percentages referred to in Article 124 (3) and (4) shall be repaid to each country or territory in proportion to the deduction or deductions made in application of those provisions; (b)if any balance remains after the application of (a), the Council shall decide, on a proposal from the Commission, on its use. Article 123 1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 119 
1. The overall amount referred to in Article 118 shall be divided into a number of equal annual instalments corresponding to the number of years of application of Article 154. 2. Whatever balance remains at the end of each year of application of Article 154 except the last shall be carried forward automatically to the following year. Article 120 The resources available for each year of application are made up of the sum of the following: 1. the annual instalment, plus any amounts available or less any amounts used under Article 121 (1); 2.the sums carried forward under Article 119 (2). Article 121 1. If the total amount of the transfer bases in a year of application, calculated in accordance with Article 124, and where appropriate reduced in accordance with Articles 128 to 130, exceeds the amount of resources available in the system for that year, advance use shall be made automatically, for each year except the last, of a maximum of 25 % of the following year's instalment. 2. If, after the operation referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases referred to in paragraph 1 for the same year of application, the amount of each transfer basis shall be reduced by 10 % of that amount. 3. If, after the reduction referred to in paragraph 2, the total amount of the transfers so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the amounts by which each transfer was reduced. 4. If, after the reduction referred to in paragraph 2, the total amount of the transfers which may give rise to a payment exceeds the amount of available resources, the Council, having evaluated the situation on the basis of a Commission report on the probable development of the system, shall examine the steps to be taken to remedy that situation, within the terms of this Decision. Article 122 In the case of any balance remaining from the overall amount referred to in Article 118 after the expiry of the last year of administration of the system in the period laid down in Article 154, (a) the amounts resulting from the application of the percentages referred to in Article 124 (3) and (4) shall be repaid to each country or territory in proportion to the deduction or deductions made in application of those provisions; (b)if any balance remains after the application of (a), the Council shall decide, on a proposal from the Commission, on its use. Article 123 1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 120 
The resources available for each year of application are made up of the sum of the following: 1. the annual instalment, plus any amounts available or less any amounts used under Article 121 (1); 2.the sums carried forward under Article 119 (2). Article 121 1. If the total amount of the transfer bases in a year of application, calculated in accordance with Article 124, and where appropriate reduced in accordance with Articles 128 to 130, exceeds the amount of resources available in the system for that year, advance use shall be made automatically, for each year except the last, of a maximum of 25 % of the following year's instalment. 2. If, after the operation referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases referred to in paragraph 1 for the same year of application, the amount of each transfer basis shall be reduced by 10 % of that amount. 3. If, after the reduction referred to in paragraph 2, the total amount of the transfers so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the amounts by which each transfer was reduced. 4. If, after the reduction referred to in paragraph 2, the total amount of the transfers which may give rise to a payment exceeds the amount of available resources, the Council, having evaluated the situation on the basis of a Commission report on the probable development of the system, shall examine the steps to be taken to remedy that situation, within the terms of this Decision. Article 122 In the case of any balance remaining from the overall amount referred to in Article 118 after the expiry of the last year of administration of the system in the period laid down in Article 154, (a) the amounts resulting from the application of the percentages referred to in Article 124 (3) and (4) shall be repaid to each country or territory in proportion to the deduction or deductions made in application of those provisions; (b)if any balance remains after the application of (a), the Council shall decide, on a proposal from the Commission, on its use. Article 123 1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 121 
1. If the total amount of the transfer bases in a year of application, calculated in accordance with Article 124, and where appropriate reduced in accordance with Articles 128 to 130, exceeds the amount of resources available in the system for that year, advance use shall be made automatically, for each year except the last, of a maximum of 25 % of the following year's instalment. 2. If, after the operation referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases referred to in paragraph 1 for the same year of application, the amount of each transfer basis shall be reduced by 10 % of that amount. 3. If, after the reduction referred to in paragraph 2, the total amount of the transfers so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the amounts by which each transfer was reduced. 4. If, after the reduction referred to in paragraph 2, the total amount of the transfers which may give rise to a payment exceeds the amount of available resources, the Council, having evaluated the situation on the basis of a Commission report on the probable development of the system, shall examine the steps to be taken to remedy that situation, within the terms of this Decision. Article 122 In the case of any balance remaining from the overall amount referred to in Article 118 after the expiry of the last year of administration of the system in the period laid down in Article 154, (a) the amounts resulting from the application of the percentages referred to in Article 124 (3) and (4) shall be repaid to each country or territory in proportion to the deduction or deductions made in application of those provisions; (b)if any balance remains after the application of (a), the Council shall decide, on a proposal from the Commission, on its use. Article 123 1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 122 
In the case of any balance remaining from the overall amount referred to in Article 118 after the expiry of the last year of administration of the system in the period laid down in Article 154, (a) the amounts resulting from the application of the percentages referred to in Article 124 (3) and (4) shall be repaid to each country or territory in proportion to the deduction or deductions made in application of those provisions; (b)if any balance remains after the application of (a), the Council shall decide, on a proposal from the Commission, on its use. Article 123 1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 123 
1. The system shall apply to the earnings from exports by a country or territory of the products referred to in Article 115 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal. 2. Where, following a natural disaster, a substantial fall in production of the product in question is recorded during the year preceding the year of application, the percentage referred to in paragraph 1 shall be calculated on the basis of the average export earnings from that product during the three years preceding the year of the disaster. A substantial fall in production shall be taken to mean at least 50 % of the average production during the three years preceding the year of the disaster. Article 124 1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 124 
1. In order to implement the system, a reference level and a transfer basis shall be calculated for each country or territory and for exports of each product referred to in Article 115 (1) to the Community. 2. The reference level shall be constituted by the average of export earnings during the period of the six calendar years preceding each year of application less the two years with the highest and lowest figures. 3. The transfer basis shall be constituted by the difference between the reference level and actual earnings in the calendar year of application, reduced by an amount corresponding to 4,5 % of the reference level. 4. The reductions referred to in paragraph 3 shall not apply if the difference between the reference level and actual earnings is less than ECU 1 million. In no case shall the reduction of the difference between the reference level and actual earnings be greater than 30 %. 5. The amount of the transfer shall be made up to the transfer basis of Article 121, after application, where relevant, of Articles 128 to 130. Article 125 1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 125 
1. In order to ensure that the system functions efficiently and rapidly, statistical cooperation shall be instituted between the relevant authorities of each country or territory and the Commission. 2. For the first year of application, the OCT shall notify the Commission of: (a) the value of their exports of all goods to all destinations for the year preceding the year of application; (b)the volume of marketed production of the product or products in question during the reference period and in the year of application; (c)the volume and the value of exports of the product or products in question to all destinations in the reference period and in the year of application; (d)the volume and the value of exports of the product or products in question to the Community during the reference period and in the year of application. 3. In subsequent years of administration of the system, the statistical requirements referred to above shall refer only to the year not covered by the information provided in the previous year. 4. This information must be sent to the Commission not later than 31 March in the year following that of application. Failure to do so shall result in the country or territory concerned losing all transfer rights in relation to the product or products in question for the relevant year of application. Article 126 1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 126 
1. The system shall be implemented in respect of the products listed in Article 115 where they are: (a) released for home use in the Community, or (b)brought into the Community under the inward processing arrangements in order to be processed. 2. The statistics to be used to carry out the calculations referred to in Article 124 shall be those calculated and published by the Statistical Office of the European Communities. Article 127 No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 127 
No transfer shall take place if it emerges from the examination of the dossier to be undertaken by the Commission in conjunction with the relevant authorities of the country or territory concerned that the fall in earnings from exports to the Community is the result of measures or policies involving discrimination detrimental to the Community. Article 128 The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 128 
The trasfer basis shall be reduced in due proportion to the fall in earnings from exports to the Community of the product in question if, after joint examination by the Commission and the relevant authorities of the country or territory concerned, it appears that such a drop is the consequence of trade policy measures taken by the country or territory or through its economic operators with the aim of restricting supply; such reduction may entail the annulment of the transfer basis. Article 129 Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 129 
Should examination of the trend of the exports of the country or territory to all destinations, of production of the product in question in the country or territory concerned and demand in the Community reveal significant changes, consultations shall take place between the Commission and the relevant authorities of that country or territory to determine whether the transfer basis is to be maintained or reduced, and, if so, to what extent. Article 130 In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 130 
In no case shall any transfer basis for a given product be greater than the corresponding amount calculated on the basis of the exports of the country or territory concerned to all destinations. Article 131 1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 131 
1. The Commission shall adopt a transfer decision on completion of the examination carried out in conjunction with the relevant authorities of the country or territory; this examination shall bear on the statistical data and the calculation of the transfer basis which may give rise to a payment. 2. For each transfer a transfer agreement shall be concluded between the Commission and the relevant authorities of the country or territory concerned. Article 132 1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 132 
1. Provided that the relevant authorities of the country or territory concerned have sent all the necessary statistical information by 31 March in the year following that of application, in accordance with Article 125 (4), the Commission shall notify each country or territory not later than 30 April following of its situation in respect of each of the products listed in Article 115 (2) exported by that country or territory during that year. 2. The relevant authorities of the country or territory concerned and the Commission shall take all possible steps to ensure that the procedures referred to in Articles 127 to 129 are concluded not later than 30 June of the year in question. After this period has elapsed, the Commission shall notify the relevant authorities of the country or territory of the amount of the transfer resulting from appraisal of the dossier. 3. Not later than 31 July of the year in question the Commission shall take decisions concerning all transfers, except for those where consultations have not been concluded. Article 133 1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 133 
1. Where application of Articles 123 and 124 gives rise to a transfer basis, the relevant authorities of the country or territory concerned shall, in the month following receipt of the notification referred to in Article 132 (1), send the Commission a substantial analysis of the sector recording the loss of earnings, the causes of the loss, the policies pursued by the authorities and the projects, programmes and operations to which they undertake to allocate the resources in accordance with the objectives set out in Article 114 (2). 2. Should the relevant authorities of the recipient country or territory intend, as provided for in Article 114 (2), to allocate the funds to a sector other than that where the loss has occurred, they shall communicate to the Commission the reasons for this allocation. 3. Projects, programmes or operations to which the relevant authorities of the recipient country or territory undertake to allocate the transferred resources shall be examined jointly by the Commission and the said authorities. Article 134 When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 134 
When agreement is reached on the use of resources, the relevant authorities of the country or territory and the Commission shall sign a protocol setting up a framework of mutual obligations stipulating how the funds are to be used at the various stages of the operations agreed on. Article 135 1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 135 
1. The transfer shall be made in ecus upon signature of the transfer agreement referred to in Article 131 (2) into an interest-bearing account, for which presentation of two signatures, of the relevant authorities of the country or territory and the Commission, shall be required. Any interest shall be credited to this account. 2. The funds in the account referred to in paragraph 1 shall be mobilized as the operations specified in the protocol on the use of the funds are implemented, on condition that the provisions of Article 136 have been complied with. 3. The procedures laid down in paragraph 2 shall be applicable mutatis mutandis to any counterpart funds generated. Article 136 1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 136 
1. Within 12 months of the mobilization of resources the relevant authorities of the recipient country or territory shall send the Commission a report on the use which they have made of the funds transferred. 2. Should the report referred to in paragraph 1 not be presented within the time limit set or should it call for comment, the Commission shall send a request for substantiation to the relevant authorities of the country or territory concerned, which shall be obliged to reply thereto within two months. 3. Once the deadline referred to in paragraph 2 has expired, the Commission may, having referred the matter to the Council and having duly informed the relevant authorities of the country or territory concerned, three months after completion of this procedure, suspend application of decisions on subsequent transfers until the required information has been provided. The relevant authorities of the country or territory concerned shall be notified of this measure immediately.
Article 137 
1. A special financing facility shall be set up for those OCT whose mining sectors occupy an important place in their economies and are facing difficulties that are already perceived or foreseeable in the near future. 2. Its aims are to contribute towards establishing a more solid and wider basis for the development of the OCT while supporting the relevant authorities' efforts: - to safeguard their mining production and export sectors by remedial or preventive action designed to alleviate the serious consequences for their economies of the loss of viability as a result of a decline in their production or export capacity and/or export earnings in the mining products sector following major technological or economic changes or temporary or unforeseeable disruptions beyond the control of the country or territory concerned and of the enterprise managing the sector concerned. Particular attention shall be paid to adjusting the competitive situation of enterprises to changes in market conditions, or -for OCT heavily dependent on exports of one mining product, to diversify and broaden the bases of their economic growth, notably by helping them to complete development projects and programmes under way where these are seriously jeopardized owing to substantial falls in export earnings from that product. 3. In pursuing these objectives, this support: -will be adapted to the economic restructuring needs of the country or territory concerned, -will take into account at the time of its formulation and implementation the mutual interests of the OCT and the Member States. Article 138 1. The special financing facility provided for in Article 137 shall be aimed at OCT which export to the Community and which, during at least two of the four years preceding that of the request for aid, have derived either: (a) 15 % or more of their export earnings from one of the following products: copper (including cobalt), phosphates, manganese, bauxite and alumina, tin, iron ore, whether or not in agglomerate form, uranium; or (b)20 % or more of their export earnings from all mining products (excluding precious minerals other than gold, oil and gas). However, for least-developed OCT, the figure stipulated in (a) shall be 10 % and the figure stipulated in (b) shall be 12 %. For the calculation of the thresholds referred to in (a) and (b) earnings shall not include those from mining products not covered by the system. 2. Recourse to the special financing facility shall be possible where, in the light of the aims referred to above: (a)it is perceived or expected that the viability of one or more enterprises in the mining sector has been or is about to be seriously affected following temporary or unforeseeable difficulties - whether technical, economic or political - beyond the control of the country or territory or undertaking concerned, and where such damage to viability leads to or may lead to a significant fall in revenue for the country or territory concerned - assessed in particular on the basis of a drop in production or export capacities of the product in question of around 10 % - and/or a deterioration in its external trade balance. Foreseeable damage to viability shall be characterized by the onset of deterioration of the means of production and its impact on the economy of the country or territory; or (b)in cases under paragraph 1 (a), it is perceived that a substantial fall in export earnings from the mining product concerned, in relation to the average for the two years before that of the request, is seriously jeopardizing the completion of development projects and programmes under way. To be taken into consideration, such a fall in earnings must: - be caused by technical, economic or political difficulties and not artificially provoked, directly or indirectly, by policies and measures of the relevant authorities of the country or territory or the economic operators concerned, -result in a corresponding fall in total export earnings of approximately 10 % at least in the year before that of the request. The said difficulties shall refer to disruptions such as accidents, serious technical incidents, serious internal or external political events, major technological and economic changes or major changes in trade relations with the Community. 3. The relevant authorities of a country or territory may request financial aid under the special financing facility where the conditions set out in paragraphs 1 and 2 are met. Article 139 1. The aid referred to in Article 138 shall be used in pursuit of the aims of the facility as set out in Article 137 (2). Where maintenance or return to viability of the mining enterprise or enterprises affected is deemed possible and appropriate, the aid shall be used to finance projects or programmes, including the financial restructuring of the enterprise or enterprises concerned, with a view to maintaining, re-establishing or rationalizing at a viable level the production and export capacity concerned. Where it is not thought possible to maintain or restore viability, the aid shall be used to broaden the bases of economic growth through the financing of viable horizontal or vertical conversion or diversification projects or programmes. By common agreement, the aim of diversification may also be pursued where the economy is dependent on the mining product in question to a significant degree, even where viability can be re-established. Where Article 138 (2) (b) is applicable, the objective of diversification shall be pursued through financial assistance to aid the completion of development projects and programmes under way outside the mining sector which are in jeopardy. 2. Any decision to allocate funds to projects or programmes shall take due account of economic interests and the social implications of such aid in the country or territory concerned and in the Community and will be adapted to the economic restructuring needs of that country or territory. In the case of requests presented under Article 138 (1) (b), the Community and the relevant authorities of the country or territory concerned shall jointly and systematically seek to establish the scope and the terms of any aid accorded in such a way that such aid does not injure competing Community mining production. The consideration and appraisal of these factors shall be part of the analysis referred to in Article 140 (2). 3. Special attention shall be accorded to: - processing and transport operations, notably at regional level, and the proper integration of the mining sector in the overall economic and social development of the country or territory, -preventive operations to minimize any disruptive effects by adapting technology, improving the technical and managerial skills of local staff and adapting the skills of local staff to enterprise management techniques, -stepping up the OCT's scientific and technical capacity for the production of new materials. Article 140 1. The request for aid must include information on the nature of the problems encountered, the perceived or expected consequences of the disruption both at local level and at the level of the mining enterprise or enterprises affected and indications in the form of an identification sheet on the measures or actions undertaken or desired to remedy them. The request shall be made as soon as these consequences are identified and within a period not exceeding 12 months. 2. Prior to any Community decision a technical, economic and financial analysis shall be made systematically of the mining sector concerned in order to assess both the eligibility of the request and the project or programme to be undertaken to utilize the aid. That analysis, which shall be very detailed, shall, in order to identify the operation, take particular account of world market prospects and, without prejudice to the first paragraph of Article 139 (2), the situation of the Community market in the products concerned. It shall also include an analysis of the possible implications of such an operation for the competing mining products of Member States and the possible implications of its non-implementation for the country or territory concerned. Its objective shall be to ascertain: - whether the viability of the means of production concerned has been or is likely to be damaged and whether that viability can be restored, or whether recourse to diversification measures is more appropriate, or -whether the fall in export earnings referred to in Article 138 (2) (b) seriously jeopardizes the implementation of development projects and programmes under way. The analysis shall be carried out in accordance with the procedures for financial and technical cooperation. It shall require the close cooperation of the relevant authorities of the country or territory and the economic operators concerned. 3. A single decision shall be taken on eligibility and the financing proposal. The necessary steps will be taken to expedite appraisal of requests so that the appropriate action may be taken swiftly. Article 141 1. If necessary, technical assistance for setting up and supervising the project may be financed under the special financing facility provided for in Article 142. 2. The procedures applicable to such assistance and the detailed rules for its implementation shall be those laid down for development finance cooperation. Article 142 1. For the purposes specified in Article 137 and for the period laid down in Article 154, the Community shall allocate the overall amount provided for in paragraph 1 (a) (iv) of that Article to cover all its commitments under this special financing facility. The amount allocated to the facility shall be managed by the Commission. 2. Before expiry of the period laid down in Article 154, the Council shall decide, on a proposal from the Commission, on the allocation of any balances remaining from the overall amount. 3. The amount of the aid provided for in Article 138 shall be determined by the Commission in the light of the funds available under the special financing facility, the nature of the relevant projects and programmes, the possibilities for cofinancing and the relative importance of the mining industry concerned for the economy of the country or territory. 4. Aid accorded to a country or territory under the special financing facility may be on-lent to the final borrower on different financial terms which shall be established in the financing decision and shall result from an analysis of the aid project conducted on the basis of the usual economic and financial criteria for the type of project planned. 5. The analysis referred to in Article 140 shall be financed from resources of the facility. 6. In exceptional circumstances arising out of an emergency, confirmation and proof of which will have to be provided initially by the analysis, a country or territory which so requests may be granted an advance by way of partial pre-financing of the project or programme which it precedes.