NoL368/16 OfficialJournaloftheEuropeanCommunities 18.12.89
COUNCILREGULATION (EEC)No3723/89
of6November1989
ontherestrictionofexportsofsteelpipesandtubestotheUnitedStatesofAmerica
Whereas,inordertokeepacheckonexports,asystemof
exportlicencesandcertificatesshouldbeintroduced;
Whereasitisnecessarytoprovidethatexportlicences
issuedtoundertakings shallindicatetheundertaking
engagedinproductionofsteelpipesandtubeswithinthe
CommunityandestablishedintheissuingMemberStates
thatisholdingtheallocationagainstwhichthelicenceis
issued;
Whereas,inordertotakeaccountoftheinterestsof
distributiveundertakings ,itmustbepossibleforthese
licencestobetransferrednotonlybetweenundertakings
producingsteelpipesandtubesbutalsobyundertakings
producingsteelpipesandtubestodistributive
undertakings ,inparticularwheretheundertakings
producingsteelpipesandtubesdecidetoselltheirproducts
tosuchdistributiveundertakings ;
Whereasitappearsnecessary,andforthemoment
sufficient,thatMemberStatesensurecompliancewiththe
differentprovisionsoftheregimelaiddownbyapplying
thevariouspenaltiesprovidedforintheirlaws;
Whereas,inordertofacilitatetheapplicationofthe
envisagedprovisions,itisappropriatetosetupaprocedure
establishingclosecooperationbetweenMemberStatesand
theCommissionwithinacommittee;whereasitissufficient
forthispurposetoapplytheproceduresetupinCouncil
Regulation (EEC)No1023/70of25May1970
establishingacommonprocedureforadministering
quantitativequotas(4),THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle113
thereof,
HavingregardtotheproposalfromtheCommission,'
WhereastheCommunity hasconcludedan
Arrangement^1),hereinafterreferredtoas'the
Arrangement',withtheUnitedStatesofAmericaunder
whichexportstotheUnitedStatesofcertainsteelpipesand
tubesoriginatingintheCommunityaretobelimitedto
certainlevelsoveranagreedperiod;whereas,moreover,it
isnecessary,pursuanttothisArrangement ,tointroducein
theCommunitymeasurestorestricttheamountofthese
productsexportedtotheUnitedStates;
Whereas,inaccordancewiththeArrangement ,theexport
restrictionscoversteelpipesandtubesoriginatinginthe
Community;whereastheoriginoftheseproductsis
determinedinaccordancewithapplicableCommunity
legislation,thatistosayCouncilRegulation (EEC)
No802/68of27June1968onthecommondefinitionof
theconceptoftheoriginofgoods(2),aslastamendedby
Regulation (EEC)No1769/89(3);
Whereas,forpracticalandmanagementreasons,the
quantitativeexportlimitsagreedbytheCommunitymust
beallocatedamongtheMemberStates;whereas,inorder
todoso,anallocationmethodmustbeestablished;
whereas,thereafter,theMemberStatesmustshareoutthe
amountsallocatedtothemamongundertakings in
accordancewithobjectivecriteria;
WhereasutilizationoftheCommunitylimits,basedon
allocationsamongMemberStatesmadeinthisway,would
seemtobeinkeepingwiththeCommunitynatureofthese
limits;consideringthat,inparticular,theallocation
methodprovidesforamaximumuseofexport
possibilities;
WhereastheallocationamongtheMemberStatesofthe
totalexportpossibilitieswhichtheArrangementaffords
shouldtakeaccountoftraditionaltradepatterns;
Whereasmeasuresmustbetakentoavoidabnormal
concentration atcertaintimesofexportstotheUnited
States;HASADOPTEDTHISREGULATION :
Article1
1.Communityexportlimitsareherebyestablishedforthe
period1October1989to31December1990(hereinafter
referredtoas'theinitialperiod')fortheyear1991andfor
theperiod1January1992to31March1992(hereinafter
referredtoas'theendperiod'),forexportseffectedafter
1October1989fromtheCommunitytotheUnitedStates
ofAmerica(hereinafterreferredtoas'theUnitedStates')of
thesteelpipe?andtubesoriginatingintheCommunity
whicharelistedinAnnexI.
ForthepurposeofthisRegulation,theUnitedStatesshall
compriseUnitedStatescustomsterritoryandUnitedStates
foreigntradezonesasdescribedinAnnexII.
(J)Seepage126ofthisOfficialJournal.
(2)OJNoL148,28.6.1968,p.1.
(3)OJNoL174,22.6.1989,p.11. (4)OJNoL124,8.6.1970,p.1

18.12.89 OfficialJournaloftheEuropeanCommunities NoL368/17
them,haveusedlessthan40%oftheirquotaby
30June1990and33%oftheirquotaby30June
1991respectively .
Thequantitiesrepresentedbysuchreductionsshall
beallocatedbytheCommission,afterconsulting
theArrangement Committee,on1August1990
and1August1991respectivelysoastofacilitate
theoptimaluseandadministration ofthe
Communityexportpossibilitiestakingaccountof
theshareofCommunityexportseffectedbyeach
MemberStateineachproductcategoryby30June
1990and30June1991respectively .
(c)WheretheCommunitylimitsforarrangement
productsareadjustedinaccordancewiththefourth
indentofArticle2(3),theCommissionshalladjust
theallocationofquantitylimits,takingaccountof
theoriginoftheexportsbeforetheentryintoforce
ofthisRegulationwhichgaverisetothis
adjustment.
2.TheCommissionshallholdregularconsultationswith
theArrangement CommitteesetupbyDecision
No3724/89/ECSC(!)onthesituationregardinglicences
issuedandonthemeasurestobetakenwithaviewto
ensuringbestuseoftheoveralllimit.2.TheoriginoftheproductscoveredbythisRegulation
shallbedeterminedinaccordancewiththerulesinforcein
theCommunity .
Article2
1.TheCommunityexportlimitforsteelpipesandtubes
isherebyfixedat8,82%oftheUnitedStatesapparent
consumption .
InthecaseofwhataretermedOCTGtubes,asreferredto
inAnnexI,theCommunitylimit,formingpartofthe
overalllimitforsteelpipesandtubes,isherebyfixedat
9%ofapparentconsumptionofthesetubesintheUnited
States.
ThelimitsshallbecalculatedbytheCommissiononthe
basisofthelevelofapparentconsumptionofthese
productsintheUnitedStates,aslaiddowninthe
Arrangement .
2.TheCommunityexportlimitscalculatedpursuantto
paragraph1shallbeadjustedbytheCommissiontotake
accountofrevisionsofthesaidUnitedStatesapparent
consumption .
3.TheselimitsmayalsobeadjustedbytheCommission
afterconsultingtheArrangementCommittee :
—foradvanceuseorcarry-overoflicences,
—toenabletransfersbetweenproductcategoriestobe
made,includingtransfersbetween,ontheonehand,
theproductscoveredbythisRegulationand,onthe
other,thosecoveredbyRegulation (EEC)No
3722/89andbyDecision3724/89/ECSC(2),
—foradditionalquotasincaseofshortsupply,
—totakeaccountofexportseffectedbytheCommunity
between1October1989andthedateofentryinto
forceofthisRegulation,
undertheconditionsprovidedforintheArrangement .
Article3
1.(a)TheCommunity quantitativeexportlimits
establishedandcalculatedpursuanttoArticle2
shallbeallocatedfortheinitialperiod,1991and
theendperiodbytheCommissioninaccordance
withAnnexIIIwiththeexceptionofanyquantities
grantedunderArticle7oftheArrangementwhich
shallbeallocatedbytheCommissiononthebasisof
thecircumstances andconditionsunderwhichthese
quantitieshavebeengranted.
(b)Notwithstanding point(a),theCommunity
quantitativeexportlimitstobeallocatedbythe
Commission inaccordancewithAnnexIIIshallbe
reducedby10%intheinitialperiodand1991for
thoseMemberStateswhich,onthebasisof
certificatesreferredtoinArticle4(1)issuedbyArticle4
1.TheCommunityexportsdescribedinArticle1shall,
fromthedateofentryintoforceofthisRegulationto"31
March1992,besubjecttotheproductiontothecompetent
Communitycustomsofficewheretheexportformalitiesare
carriedoutofanexportlicenceandanexportcertificate.
Theexportlicencesshallbeissuedbythecompetent
authoritiesofeachMemberStatewithinthelimitsofthe
amountsallocatedtoitpursuanttoArticle3.
MemberStatesshallfixforeachquartertheamountsfor
whichtheyanticipatethatlicenceswillbeissuedforall
steelpipesandtubes,ontheonehand,andforOCTG,on
theother;theyshallinformtheCommissionthereofinthe
first15daysoftherelevantquarter.Indoingso,theyshall
makesurethattheexportlicencesforeachquarterensure
anadequatespreadofexportsoverthewholeyear,taking
intoaccounttheseasonalvariationsintradeineach
productcategory.However,MemberStatesshallnot,
withoutthepriorauthorizationoftheCommission,issuein
anytwoconsecutivequarterslicencesforamountswhich
exceed52%oftheirallocationintheinitialperiodor
65%oftheirallocationin1991.
MemberStatesmay,subjecttothesecondsubparagraph ,
issuefurtherlicencesintheinitialperiod,1991andtheend
periodrespectively,inrespectoftheunusedpartoflicences
issuedwhichhavebeenreturnedtotheircompetent
authoritiesintheinitialperiod,1991andtheendperiod.
2.Licencesshallbeissuedaccordingtothefollowing
criteria:(1)Seepage1ofthisOfficialJournal.
(2)Seepage21ofthisOfficialJournal.

NoL368/18 OfficialJournaloftheEuropeanCommunities 18.12.89
—compliancewiththerulesprescribedbythis
Regulation,inparticularthoseconcerningthequota
allocatedbytheCommissionpursuanttoArticle3,
—compliancewiththetraditionalexportpatternsof
undertakingstakingaccountofthereductionprinciples
establishedbythisRegulation,
—whereappropriatethetakingintoaccountofthe
situationofnewproducersofpipesandtubeswhile
givingpreferencetotraditionalexportpatterns,
—compliancewiththeratesofexportstotheUnited
Statesastraditionallyspreadoutovertheyear,
—optimumuseandadministration oftheexport
possibilitiesaffordedbythisRegulation,
—compliancewiththepossibilitiesaffordedby
Article3(1)(b)ofthisRegulation,
—bestusebeingmadeofanynewpossibilitiesprovided
for,whereappropriate,bythisRegulation .
Eachlicenceshallindicatetheundertakingengagedinthe
productionofsteelpipesandtubesintheCommunity,and
establishedintheissuingMemberStatethatisholdingthe
allocationagainstwhichthelicenceisissued.
3.Transfersofexportlicencesbetweenundertakings
producingsteeltubesandpipes,orbyundertakings
producingsteelpipesandtubestodistributive
undertakings ,maytakeplaceafterpriornotificationsto
theauthoritiesoftheMemberStateinwhichthe
undertakingtransferringthelicenceisestablished.Such
transfersmaytakeplacebetweenundertakingsestablished
indifferentMemberStates.
4.ThelicencemustspecifywhetherthetubesareOCTG
tubesorothersteelpipesortubes.
5.LicencesissuedinoneMemberStateoftheCommunity
shallbevalidthroughouttheCommunity .
6.MemberStatesshallensuretheappropriatepenalties
areappliedinrespectofallexportseffectedwithout
productionofthelicencereferredtointhisArticleandin
respectofanyotherbreachesoftheprovisionsrelatingto
suchlicences.MemberStatesshallkeeptheCommission
informedofallbreachesoftheabovementioned rulesand
ofallpenaltiesimposedinrespectthereof,atintervalstobe
specifiedbytheCommission .
7.ThedetailedrulesfortheapplicationofthisRegulation
andtheinformationtobesuppliedtotheCommissionconcerningthelicencesandexportsshallbelaiddownby
theCommission .
Article5
1.MemberStatesshallchargetheamountssetoutonthe
licencesissuedbythemagainsttheirrespectiveallocations
madepursuanttoArticle3,includingalllicences
subsequentlytransferredtoanundertakingofanother
MemberState.
2..MemberStatesshallkeeprecordsoftheexportsofthe
productscoveredbythisRegulation .Theproductsshallbe
deemedtobeexportedonthedateofacceptance,bythe
customsofficeoftheMemberStateofexport,oftheexport
declarationorofthedocumentprovidedforinArticle18
ofCouncilDirective81/177/EECof24February1981on
theharmonization ofproceduresfortheexportof
Communitygoods(1).
3.TheextenttowhichaMemberStatehasusedupits
allocationshallbedeterminedonthebasisoflicences
issuedinaccordancewithArticle4.
Article6
1.ExportstotheUnitedStatesofproductswhichareto
bere-exportedfromtheUnited,Statesinthesameformor
withouthavingbeensubjecttosubstantialtransformations
shallbechargedagainsttheallocationoftheMemberState
wherethelicencewasissued.Uponproductiontothe
authoritiesofsuchMemberStateofproofofsuch
re-exportation fromtheUnitedStates,theallocationof
thatMemberStatefortheperiodwithinwhichsuchproof
ispresentedshallbeincreasedbythesameamount.
2.TheCommissionmaylaydowndetailedrulesforthe
implementation ofthisArticle.
Article7
CooperationbetweentheCommissionandtheMember
StatesfortheapplicationofthisRegulationshallbesubject
toArticle11ofRegulation (EEC)No1023/70.
Article8
ThisRegulationshallenterintoforceonthedayfollowing
itspublicationintheOfficialJournaloftheEuropean
Communities .
ThisRegulationshallbebindingjnitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,6November1989.
FortheCouncil
ThePresident
R.DUMAS
0)OJNoL83,30.3.1981,p.40.

18.12.89 OfficialJournaloftheEuropeanCommunities NoL368/19
ANNEXI
Listofproducts
Product HTS CNcode
Otherpipeandtube
OCTG7304.10 (»)
7304.31 (»)
7304.39 (»)
7304.41 (».)
7304.49
7304.51 0)
7304.59 (!)
7304.90 (!)
7305.11
7305.12
7305.19
7305.31.40 (>)
7305.31.60 (»)
7305.39 (»)
7305.90 0)
7306.10 (>)
7306.30.10 (M
7306.30.50 (»)
7306.40 (>)
7306.50.10 0)
7306.50.50 (*)
7306.60 (>)
7306.90 (»)
8547.90.0020
7304.20
7305.20
7306.20730410I1)
730431(M
730439P)
730441I1)
730449C1)
730451(»)
730459(*)
7304900)
73051100
73051200
73051900
73053100(*){*)
730539OOP);
73059000H
730610
730630(»)(*)
730640(»)
730650P)(2)
730660C1)
730690OOP)
85479000.(■?).
730420
730520
73062000
ThesubheadingsanditemnumbersreferredtoabovearesubjecttorevisionwhentheCommunityortheUnited
Statesadoptmodificationstotheirrespectiveimportnomenclatures .Whensuchmodificationsareadopted,
priornotificationshallbegiventotheotherparty.
(')Excludedifdrillpipeofakindusedindrillingforearthmineralsorores.
(2)Excludediftaperedpipesandtubesprincipallyusedaspartsofilluminatingarticles.
(3)Coveredifconduittubing.

NoL368/20 OfficialJournaloftheEuropeanCommunities 18.12.89
ANNEXII
UnitedStatescustomsterritoryandUnitedStatesforeigntradezones
TheUnitedstatescustomsterritoryshallcomprisetheStates,thedistrictofColumbiaandPuertoRico.
AUnitedStatesforeignzoneshallbedefinedasfollows:
Itisanisolated,enclosedandpolicedarea,operatedasapublicutility,inoradjacenttoaportofentry,
furnishedwithfacilitiesforloading,unloading,handling,storing,manipulating ,manufacturing andexhibiting
goodsandforreshippingthembyland,waterorair.Anyforeignanddomesticmerchandise,exceptsuchasis
prohibitedbylawsorsuchastheBoardmayordertobeexcludedasdetrimentaltothepublicinterest,healthor
safety,maybebroughtintoazonewithoutbeingsubjecttothecustomslawsoftheUnitedStatesgoverningthe
entryofgoodsorthepaymentofdutythereon;andsuchmerchandisepermittedinazonemaybestored,
exhibited,manufactured ,mixedormanipulatedinanymanner,exceptasprovidedintheactandother
applicablelawsorregulations.Themerchandisemaybeexported,destroyedorsentintocustomsterritory
fromthezone,intheoriginalpackageorotherwise.Itissubjecttocustomsdutiesifsentintocustomsterritory,
butnotifreshippedtoforeignpoints.
ANNEX111
AllocationamongMemberStates
MemberStates ProportionofCommunitylimits
Pipesand
tubes Germany
France
Italy
Netherlands
Belgium
Luxembourg
UnitedKingdom
Greece
Denmark
Ireland
Spain
Portugal33,57%
11,07%
23,81%
3,33%.
5,72%'
2,03%
4,76%
6,19%
9,52%
OCTG Germany
France
Italy
Netherlands
Belgium
Luxembourg
UnitedKingdom
Greece
Denmark
Ireland
Spain
Portugal38,76%
4,69%
28,76%
0,18%
4,42%
0,09%
4,87%
6,73%
11,50%