In response to licence applications in respect of the products listed in Annex I duly submitted by traditional importers, the competent national authorities shall allocate each importer a quantity equal to its imports for 1996 or 1997, adjusted by the rate of reduction/increase specified in the said Annex for each quota.
Where the use of this quantitative criterion would entail allocating an amount greater than that applied for, the quantity allocated shall be limited to that specified in the application.