1983S3715 — EN — 29.03.1985 — 003.001 — 1
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►B COMMISSIONDECISIONNo3715/83/ECSC
of23December 1983
fixingminimumpricesforcertainsteel products
(OJ L 373, 31.12.1983, p. 1)
Amended by:
Official Journal
No page date
►M1Commission Decision No 559/84/ECSC of 29 February 1984 L 61 23 2.3.1984
►M2Commission Decision No 2765/84/ECSC of 26 September 1984 L 260 68 29.9.1984
►M3Commission Decision No 811/85/ECSC of 28 March 1985 L 89 34 29.3.1985
▼B
COMMISSIONDECISIONNo3715/83/ECSC
of23December 1983
fixingminimumprices forcertainsteel products
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Coal and Steel
Community, and in particular Articles47, 61 and 64 thereof,
On the basis of studies made jointly with undertakings and associations
of undertakings and after consulting the Consultative Committee andthe Council asto the advis ability of fixing minimum pricesfor certainsteel products and as to the level of these prices,
Whereas:The steel industry in the Community is beset by serious difficulties
despite the fixing of production quotas for certain products.
In view of the scale of the difficulties facing the steel industry, the
Commission has recognized the existence of a manifest crisis.
Particularly where flat products, sections and beams are concerned,
prices have slumped despite the action taken in respect of quantities.
The restructuring of the steel sector throughout the Community can be
carried through only if undertakingshave a s table income.
The financial situation of most undertakings remains precarious. The
pricescharged for certain s teel productsare no longer in line with theguidance prices published by the Commission and, consequently, it isnecessary to place a limit on the rebates granted. The introduction of
minimum prices for flat products, sections and beams should improve
the situation of the producers concerned.
Such a measure is an integral part of the other crisis measures taken by
the Commission, in particular with regard to quantities. It should there-fore be temporary.
It is appropriate that the minimum prices should be basis prices ex
basing-point so as to maintain a degree of flexibility in the market.However, it isappropriate to prevent the application of minimumpricesbeing circumvented by an increas e in rebatesor a reduction insurcharges published in the price lists.
In order to maintain a uniform level of minimum priceswithin the
Community, the Commission should, where appropriate, adjust the
minimum pricesin the light of variationsin exchange rates .
In order to ensure that the system of minimum prices is successful, it is
necessary that it should be applied as widely as possible to the above-mentioned products. It is therefore essential that it should apply in
principle to long-term contractsaswell,
The special situation of certain users who concluded long-term
contractsbefore the introduction of minimum pricesjus tifiesderoga-tionsif firm-price contractsor contractscontaining indus trialcooperation clauses are involved.
Prices of ship plate delivered to Community shipyards are determined
by the situation on the world market and such plate is used for the
purpose of building seagoing vessels and other structures in respect ofwhich special tariff provisions provide for the suspension of customsduties.
Independent producersof welded pipesin the Community compete
with certain steel undertakings which also produce welded pipes, and
the productsus ed for the production of welded pipesare not coveredby the pricing rules. The prices of welded pipes are, in addition, to alarge extent determined by importsfrom non-member countries . It istherefore justified not to subject products used for the production ofwelded pipesto the minimum prices .1983S3715 — EN — 29.03.1985 — 003.001 — 2
▼B
In the case of substandard products, quantities and rebates should be
limited so as to ensure that the prices charged for these products donot fall to a level which would give rise to serious disturbances.
Alignmentson offersfrom non-member countriesin res pect of which
the Commission has not published a ban on alignment must not havethe effect that the resulting base prices ex basing-point are below theminimum prices,
HAS ADOPTED THIS DECISION:
Article 1
1. The Commission hereby fixes for the following products:
(a) hot-rolled wide strip (coils),
(b) hot-rolled narrow strip,
(c) narrow strip obtained by slitting hot-rolled wide strip,
(d) hot-rolled sheet obtained by cutting hot-rolled wide strip,
(e) reversing mill plate,
(f) cold-rolled sheet,
(g) heavy sections and beams,
minimum pricesequivalent to the guidance pricespublis hed for each of
these products in the Commission communication of 29 April 1983(1),
less a maximum temporary rebate of:
►M318◄ECU per tonne in the case of hot-rolled wide strip
(coils),
►M34◄ECU per tonne in the case of hot-rolled narrow strip,
►M313◄ECU per tonne in the case of narrow strip obtained by
slitting hot-rolled wide strip,
►M313◄ECU per tonne in the case of hot-rolled sheet obtained by
cutting hot-rolled wide strip,
►M330◄ECU per tonne in the case of reversing mill plate,
►M30◄ECU per tonne in the case of cold-rolled sheet,
►M317◄ECU per tonne in the case of sections and beams in cate-
gory 1,
►M34◄ECU per tonne in the case of sections and beams in cate-
gory 2a,
24 ECU per tonne in the case of sections and beams in category 2b,
29 ECU per tonne in the case of sections and beams in category 2c,
35 ECU per tonne in the case of sections and beams in category 3.
The sections and beams in categories 1, 2a, 2b, 2c and 3 are as defined
in the Annex to the Commission communication of 29 December
1982(2) on guidance prices.
As regards sections and beams whose dimensions correspond to the
specifications of British Standard No 4 or to a similar dimensional
standard, the minimum prices shall be equivalent to the pricespublished in the British Steel Corporation price list No 5, applicablefrom 31 March 1985, reduced by £ 15 per tonne.
2. The minimum prices resulting from the provisions of paragraph 1
shall be converted into national currencies using the followingexchange rates, which correspond to the average value of the ECU inthe three-month period December 1984, January and February 1985:
Bfrs/Lfrs 44,681983S3715 — EN — 29.03.1985 — 003.001 — 3
(1) OJ No C 116, 29. 4. 1983, p. 2.
(2) OJ No L 370, 29. 12. 1982, p. 15.▼M3
▼M3
DM 2,22729
Fl 2,51721£ 0,614785Dkr 7,97047FF 6,81576Lit 1 373,03£ Irl 0,714939Dr 90,9366
3. The productsreferred to in paragraph 1 (a) to (g) are thos e
defined from the point of view of shape and dimensions in Euronorm
79-82, in the case of basis steels and quality steels in accordance with
Euronorm 20-74, and in the case of special fine-grain weldable struc-tural non-alloy and alloy steels known as ‘Sonderbaustähle’, includingsubstandard products and seconds subject to the conditions indicated inArticle 5.
4. These minimum prices shall apply to undertakings in the steel
industry of the European Coal and Steel Community and their sellingagenciesand intermediariesasreferred to in Decis ionsNos30-53(
1)
and 31-53(2).
5. In order to maintain a uniform level of minimum priceswithin
the common market, the Commission shall adjust the minimum prices
in accordance with official variationsin exchange rates .
Article 2
1. The minimum prices shall be basis prices for the basic quality of
the product, from the points on which the price lists are based (basing-points), to which apply the extras for quality, size, etc., and the termsof payment provided for in the price list of the leading producer intermsof volume for the product in ques tion in the country in which
the product is delivered. These minimum prices shall be net of all
rebates, with the exception of rebates to dealers which are publishedin the price lists.
2. Where the price lists contain partially effective prices which take
account of quality and/or size, the differences between such effectiveprices and the price for the basis quality and/or size shall be regardedasextrasfor quality or s ize.
3. Extras for size and quality and increases and surcharges published
in the price lists shall not be reduced. Discounts and rebates, of what-ever kind, published in the price lists and conditions of sale or notifiedto the Commission, may not be increased.
4. Undertakings whose published price lists and notified conditions
give rise to prices lower than the minimum prices shall publish ornotify new conditionsto bring them into line with thisDecis ion within15 daysof itsentry into force.
Article 3
1. Minimum prices shall be compulsory for deliveries effected
within the common market asfrom 1 January 1984.
2. Asregardslong-term contractsconcluded between s teel undertak-
ings and users before 9 November 1983 in respect of deliveries to be
effected after 30 June 1984, undertakingsmay obtain a derogation fromthe minimum pricesif contractsincluding indus trial cooperation1983S3715 — EN — 29.03.1985 — 003.001 — 4
(1) OJ No 6, 4. 5. 1953, p. 109.
(2) OJ No 6, 4. 5. 1953, p. 111.▼B
▼B
clauses are involved or if the contracts fix the prices precisely. To this
end, undertakings should submit a duly substantiated application to theCommission by 31 January 1984. The application should in particular
contain the contracts in question. The minimum prices shall apply
pending a decision by the Commission on the applications.
3. Asregardscontractsreferred to in paragraph 2, renewed with
effect from 1 September 1984 and valid for deliveriesbeyond 30 June1985, undertakings must submit their applications by 15 November1984 at the latest.
Article 4
Minimum pricess hall not apply:
— to deliveries of ship plate to Community shipyards for the purpose
of building seagoing vessels and other structures in respect ofwhich the special provisions of heading Nos 89.01, 89.02 and89.03 of the Common Customs Tariff provide for the suspensionof customs duties,
— to the products designated in Article 1 (1) (a) to (e) used in the
form of hot-rolled productsfor the production in the Community
of welded tubesand pipes .
Article 5
Undertakings may grant rebates for substandard products and seconds
on condition:
(i) that for each of the productsreferred to in Article 1 (1) (a) to (g),
total deliveriesin res pect of which a rebate hasbeen granted for
thisreas on during a calendar quarter do not exceed, in relation tototal deliveriesof that product during that quarter, the averagepercentage of deliveries of substandard products and secondsrecorded for the product in question during the 12-month period 1
January to 31 December 1982;
and
(ii) that the average rebate for all deliveries of substandard products
and seconds for the quarter in question does not exceed:
18 % in the case of (a) (hot-rolled wide strip (coils)),
12 % in the case of (b) + (c) (hot-rolled narrow strip, or narrow
strip obtained by slitting hot-rolled wide strip),
12 % in the case of (d) (hot-rolled sheet obtained by cutting hot-
rolled wide strip),
15 % in the case of (e) (reversing mill plate),
18 % in the case of (f) (cold-rolled sheet),10 % in the case of (g) (sections and beams),
of the respective minimum price resulting from the provisions of
Articles1 (1) and (2) and 2 (1) but without applying the extras
indicated in Article 2 (1) and (2).
Article 6
1. Alignmentson offersfrom non-member countriesin res pect of
which the Commission has not published a ban on alignment must not
have the effect that the resulting basis prices ex basing-point are belowthe minimum prices.
2. This Decision shall not affect the special price rules concerning
sales to Greece pursuant to Article 129 of the Act of Accession.
Article 7
The Commission may amend this Decision, in particular in the light of
experience.1983S3715 — EN — 29.03.1985 — 003.001 — 5
▼M2
▼B
▼B
Article 8
This Decision shall enter into force on the day of its publication in the
Official Journal of the European Communities .
This Decision shall be binding in its entirety and directly applicable in
all Member States.1983S3715 — EN — 29.03.1985 — 003.001 — 6