AGREEMENT on the establishment of through international railway tariffs

The Representatives of the Governments of the Member States of the European Coal and Steel Community, meeting in Council,

Having regard to Article 70 of the Treaty of 18 April 1951 establishing the European Coal and Steel Community (hereinafter called the "Treaty");

Pursuant to the provisions of the second paragraph, and of subparagraph (2) of the third paragraph, of Article 10 of the Convention on the Transitional Provisions (hereinafter called the "Convention"), concerning the establishment of through international tariffs;

HAVE AGREED AS FOLLOWS:

TITLE I Definitions

Article 1

In this Agreement: "High Authority" means - the High Authority of the European Coal and Steel Community;

"Council" means - the Special Council of Ministers of the European Coal and Steel Community;

"Coal and steel" means - the products listed in Annexes I and III to the Treaty;

"Railways" means - the Railway Administration operating the main railway network in one of the territories referred to in the first paragraph of Article 79 of the Treaty, and the railway administrations participating in the tariffs of that Railway Administration;

"General internal tariffs" means - the internal tariffs applicable in like manner to all like users in one of the territories referred to in the first paragraph of Article 79 of the Treaty;

"Through international tariffs" means - the rates and conditions published and applied for the carriage of coal and steel under a single contract of carriage between the territories referred to in the first paragraph of Article 79 of the Treaty;

"Transit point" means - the frontier point as determined in accordance with Article 10 of the International Convention concerning the Carriage of Goods by Rail;

"Total journey" means - the journey from the forwarding point to the point of destination laid down in the single contract of carriage, via the transit point or points;

"Section of journey" means - any one part of the total journey situated in the forwarding country or in a transit country or in the country of destination;

"Sectional distance" means - the length of a section of the journey as laid down in the regulations in force over the railway networks concerned for their internal traffic;

"Total distance" means - the sum of the sectional distances;

"Terminal charge" means - the rate per metric ton obtained by projecting the scale of charges back to a distance of 0 km, disregarding any minimum chargeable distance or minimum charge;

"Distance charge" means - the carriage charge less the corresponding terminal charge;

"Degressivity" means - the decrease in the distance charge per metric ton/kilometre as the distance increases;

"Basic distance charge" means - the distance charge per metric ton/kilometre up to the point from which degressivity begins to operate;

"Coefficient of degressivity" means - the figure obtained by dividing the distance charge per metric ton/kilometre for a given distance by the basic distance charge.

TITLE II General provisions

Article 2

The through international tariffs which are the subject of this Agreement shall apply to all coal and steel traffic within the Community save for those special cases dealt with in Annex I to this Agreement, which are covered by special regulations.

The detailed description of the products covered by through international tariffs shall be given in a uniform nomenclature adapted to transport needs.

Article 3

The Governments of the Member States hereby undertake to co-operate in seeking, with the collaboration and assistance of the High Authority, methods for reducing, with a view to their ultimate elimination, the particular burdens imposed on international coal and steel traffic which affect transport costs.

TITLE III Rules for the compilation of tariffs

Article 4

A carriage charge under through international tariffs shall comprise the sum of a terminal charge and a distance charge.

The terminal charge shall consist of the sum of half the terminal charge under the internal tariff in the forwarding country, which half shall accrue to that country's railways, and half the terminal charge under the internal tariff in the country of destination, which half shall accrue to the latter country's railways.

No terminal charge shall be made by the railways of transit countries.

The distance charge shall comprise the sum of the sectional charges of the various participating railways. The sectional charge for each railway shall be obtained by multiplying its basic distance charge by the sectional distance involved for that railway and by the coefficient of degressivity applicable under the provisions of Articles 6 to 10 of this Agreement.

Article 5

Notwithstanding the provisions of Article 4, railways shall be entitled, during the initial one-year periods laid down in Article 11 for, respectively, fuel and ores, and scrap and iron and steel products, to levy terminal charges equal to the following amounts: - in the case of forwarding and destination railways, two-thirds of their terminal charge;

- in the case of the railways in each transit country, one-third of their terminal charge.

TITLE IV Coefficients of degressivity

Article 6

The Governments of the Member States are of the opinion that the study of coefficients of degressivity falls within the terms of reference of the studies entrusted to the committee of experts pursuant to the third paragraph of Article 10 of the Convention.

Article 7

For the period up to and including 10 February 1957 degressivity shall be applied in accordance with Articles 8 to 10 of this Agreement.

In the event of no agreement on the basis of the study provided for in Article 6 being reached by that date, the provisions of Articles 8 to 10 shall remain in force until such agreement is reached.

Should the Government of any Member State find it necessary, before the end of the periods provided for in the preceding paragraphs, to make changes in the coefficients of degressivity laid down in Annex II, it shall first inform the High Authority ; should the High Authority consider it necessary, the other Governments shall be given the opportunity to state their views and the government in question shall endeavour to give the widest possible consideration to any comments which may be made by the other Governments. The foregoing shall be without prejudice to the provisions of Article 70 of the Treaty.

Article 8

For the purposes of calculating distance charges under both general internal tariffs and through international tariffs, the coefficients of degressivity shown in Annex II (1) to this Agreement corresponding to the total distance shall be applied to carriage over total distances not exceeding 250 km in the case of fuels, ores and scrap, and not exceeding 200 km in the case of other products.

Article 9

As regards internal carriage over total distances exceeding 250 km in the case of fuels, ores and scrap and exceeding 200 km in the case of other products, the Government of each Member State shall fix the coefficients of degressivity for its general internal tariffs, such coefficients nevertheless to remain within the upper and lower limits set out in Annex II (2) to this Agreement.

These coefficients of degressivity shall be calculated for distances up to the maximum existing within the Community and shall be communicated to the High Authority and to the Governments of Member States.

Article 10

Distance charges under through international tariffs for total distances exceeding 250 km in the case of fuels, ores and scrap, and exceeding 200 km in the case of other products, shall he calculated by applying, in respect of each sectional charge, the national coefficient of degressivity corresponding to the total distance.

However, if this coefficient is lower than the limiting coefficient laid down in Annex II (3) to this Agreement, the limiting coefficient shall apply, provided that the sectional charge shall in no case exceed the internal distance charge for a distance equal to the sectional distance.

TITLE V Entry into force of tariffs

Article 11

Through international tariffs shall enter into force on the dates laid down by the High Authority as follows:

1 May 1955: - through international tariffs for fuels and ores calculated in accordance with Article 5 of this Agreement;

1 May 1956: - through international tariffs for iron and steel products and scrap calculated in accordance with Article 5 of this Agreement;

- through international tariffs for fuels and ores calculated in accordance with Article 4 of this Agreement;

1 May 1957: - through international tariffs for iron and steel products and scrap calculated in accordance with Article 4 of this Agreement.

TITLE VI Miscellaneous provisions

Article 12

The rights of the railways and those of their users under through international tariffs published in accordance with this Agreement shall be governed by the provisions governing the international carriage of goods by rail in force in the territories referred to in the first paragraph of Article 79 of the Treaty.

In particular, the entry into force of any amendments to through international tariffs resulting from changes in internal tariffs shall take place in accordance with the provisions referred to in the preceding paragraph.

Article 13

Publication of through international tariffs shall be effected in accordance with the relevant provisions in force in the territories referred to in the first paragraph of Article 79 of the Treaty, and those tariffs must enable carriage charges from and to all stations within the Community open for coal and steel traffic to be calculated.

For routes on which there is a regular and considerable volume of traffic, tariffs shall contain either: - the carriage charge for the total journey ; or

- the sectional charges for the sections of the journey, the sum of which will form the total carriage charge.

Article 14

The provisions of this Agreement shall be without prejudice to the last three paragraphs of Article 10 of the Convention.

TITLE VII Traffic in transit through the territory of third States

Article 15

The Governments of the Member States, meeting in Council, shall draw up by common agreement instructions for the conduct of the negotiations provided for in the second paragraph of Article 10 of the Convention with a view to establishing through international tariffs for traffic between the territories referred to in the first paragraph of Article 79 (1) of the Treaty passing in transit through the territories of third States.

TITLE VIII Settlement of disputes

Article 16

The Court of Justice of the European Coal and Steel Community shall have jurisdiction, under the conditions laid down in Article 89 of the Treaty, to decide any dispute between Member States as to the interpretation or application of this Agreement.

TITLE IX Protective and review clauses

Article 17

Should the High Authority or the Government of a Member State be of the opinion that unforeseen difficulties or a radical change in economic or operating conditions or fundamental and persistent disturbances of the market are seriously affecting the operation of this Agreement, the representatives of the Governments of the Member States and of the High Authority shall meet in Council with a view to seeking appropriate means of dealing with the situation.

After the expiry of four years from the entry into force of this Agreement, a meeting in Council of the Governments of the Member States shall, at the request of any one of the Member States or of the High Authority, be convened to consider the desirability of amending this Agreement.

TITLE X Final provisions

Article 18

It is hereby recognised that by this Agreement the Governments of the Member States have undertaken only those obligations which are within the scope of the Treaty and of the Convention and which have as their purpose the implementation of those instruments.

Article 19

The text of this Agreement, as recorded in the minutes of the proceedings of the Council, shall be published in the Official Journal.

This Agreement shall enter into force ten days after being so published.

ANNEX I to the Agreement of 21 March 1955 on the establishment of through international railway tariffs

SPECIAL REGULATIONS made in pursuance of Article 2 of the Agreement

In accordance with the provisions of the first paragraph of Article 2 of the Agreement, carriage charges for the traffic specified hereinafter shall be determined in accordance with the following special regulations: A. Carriage of iron and steel products within the Netherlands as internal traffic over distances exceeding 150 km

In respect of iron and steel products carried within the Netherlands as internal traffic over distances exceeding 150 km, the coefficients of degressivity set out in the Table below shall apply notwithstanding the provisions of Article 8 and of the first paragraph of Article 9 of the Agreement: >PIC FILE= "T0012157">

The foregoing coefficients of degressivity shall not apply to international traffic. Netherlands sectional charges for international traffic shall not exceed the internal distance charges, as calculated by applying the foregoing coefficients of degressivity for a distance equal to the sectional distance concerned.

B. Carriage of coke from France to Italy and vice versa

In the case of coke consigned from France to Italy and vice versa, notwithstanding the provisions of Article 10 of the Agreement the national coefficient of degressivity corresponding to the sectional distance shall be applied in respect of each sectional charge ; moreover, on French sections Tariff No 103 relating to complete train-loads shall not be applied in conjunction with the through international tariff until the question has been settled in the course of harmonisation.

C. Carriage of fuels and of iron and steel products from Belgium and the Netherlands to northern Germany

Special committees, consisting of representatives of the Governments of the Member States concerned and representatives of the High Authority, shall meet between 1 January 1956 and 31 March 1956 to study whether, with a view to preventing all unnecessary disturbance within the common market, special regulations should be laid down on 1 May 1956 for: (a) carriage of fuels from the Netherlands to northern Germany via the transit point of Enschede-Gronau and points situated north of it;

(b) carriage of fuels from Belgium to northern Germany through the Netherlands via the aforementioned transit points;

(c) carriage of iron and steel products from the Netherlands to northern Germany via the aforementioned transit points;

(d) carriage of iron and steel products from Belgium to northern Germany through the Netherlands via the same points.

The committees may also be convened before 1 January 1956 at the request of any member who considers that there are signs of disturbance within the common market as a result of alterations in the Belgian and Dutch coefficients of degressivity or for other reasons.

ANNEX II to the Agreement of 21 March 1955 on the establishment of through international railway tariffs

COEFFICIENTS OF DEGRESSIVITY as provided for in Articles 8, 9 and 10 of the Agreement

(1) Article 8:

Uniform coefficients of degressivity applicable up to a certain distance: >PIC FILE= "T0012158">

(2) Article 9:

Lower and upper limits for national coefficients of degressivity: >PIC FILE= "T0012159">

(3) Article 10:

Limiting coefficient for sectional charges: >PIC FILE= "T0012160">

UNIFORM COEFFICIENTS OF DEGRESSIVITY

Scales I, II, III and IV

>PIC FILE= "T0012161"> Scales I, II, III and IV (Cont'd)

>PIC FILE= "T0012162"> Scales I, II, III and IV (Cont'd)

>PIC FILE= "T0012163"> Scales I, II, III and IV (Cont'd)

>PIC FILE= "T0012164"> Scales V, VI, VII, VIII and IX

>PIC FILE= "T0012165"> Scales V, VI, VII, VIII and IX

>PIC FILE= "T0012166"> Scale X

>PIC FILE= "T0012167"> Scale XI

>PIC FILE= "T0012168"> Scales XII and XIII

>PIC FILE= "T0012169">