1. The duties to be charged pursuant to Article 16 of Directive 69/73/EEC on goods which, at the time when they were entered for inward processing, were eligible for a favourable tariff arrangement by reason of their end-use shall be calculated by reference to the rate corresponding to this favourable tariff arrangement in so far as the said goods: (a) have indeed been put to the end-use which allows such arrangement to be granted in accordance with the relevant Community provisions;
or
(b) are made subject to the conditions provided for by the Community for the granting of the said arrangement. (1)OJ No L 58, 8.3.1969, p. 1. (2)OJ No L 24, 30.1.1976, p. 58.
2. The provisions of paragraph 1 shall be applicable even where, at the time of their entry for inward processing, the goods were not declared under a tariff subheading which provides for a favourable tariff arrangement to be granted by reason of end-use, provided that the requisite control measures so permit.
3. Where the goods are declared at the time of their entry for inward processing under a tariff subheading which provides for a favourable tariff arrangement to be granted by reason of end-use, the competent authorities may require a deposit or security in respect of the full amount of the duties which would have to be charged if they allowed the compensating products, intermediate products or goods in the unaltered state to be put into free circulation without the goods having been put to the end-use for which the favourable tariff arrangement is provided.