ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)334
Vol.1981/0107

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<
COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)334 final .
Brussels , June 1981 «
IOO
Drart
COMMISSION DECISION ECSC
ontheobligation ofdistributive undertakings topublish price-lists
and conditions ofsale andonpratices prohibited forthese undertakings
C0M(81 )331*final .

MOTIVATION
Thesteel market continues tobeseriously affected bythedeterioration
inthe economic situation and immediate action onsteel prices has
proved essential inorder tocreate economic conditions favourable to
the indispensable restructuring ofthesteel industry .
■ι
Given that thesteel market represents awhole inwhich thedealers play
animportant role ,theaction designed toaffect steel prices must
concern notonly theproducers butalso thedistributive undertakings .
- , . ■ ...
The ECSC Treaty does not give totheCommission the instruments for
"St
acting directly onthedistributive undertakings .This iswhy,onthe
basis ofArticle 63(3 ),theCommission addresses arecommendation to
theMember States which obliges them tothemselves make theappropriate
dispositions . -Theimplementation of ,this recommendation involves ,
however ,incertain Member States ,legislative procedures andother measures
therealisation ofwhich will take acertaijn time .
Since this case is.notprovided for inthp.jECSC Treaty ,andgiven the
urgency of .themeasures tobetaken ,thetqmpission hasrecourse to
Article 95oftheTreaty toobtain themeans ofitself inthemean-time
applying adecision having thesame effect .
'•»
Itisintended that the Decision oftheCommission should have aperiod
ofvalidity notextending beyond 30June 1932 ,after which theMember States
should beina-position toapply effectively !therecommendation mentioned
above . ■ •

DRAFT
COMMISSION DECISION >•ECSC
ontheobligationofdistributive undertakings topublishprice-lists and
conditionsofsaleandonpracticesprohibitedfortheseundertakings
THECOMMISSION OFTHEEUROPEAN COMMUNITIES,
«•
HavingregardtotheTreatyestablishing theEuropeanCoalandSteelCommunity,
andinparticularthefirstandsecondparagraphsofArticle95thereof;
WhereasCommission Recommendation No hasobligedtheMemberStates
totakeallmeasuresnecessarytoensurethattheundertakings engagedin
distribution activitiesinthesteelsectorobserverulesgoverningprices
andconditionsofsalesimilartothosethatapplytotheproductionunder­
takingsinparticularpursuanttoArticle60oftlwTreatyanditsimplementing :
decisions;
WhereasgivingeffecttothisRecommendation makesitnecessaryforcertain
MemberStatestoimplementlegi-slative procedures andothermeasureswhich
requireacertainamountoftimetocomplete;
'Whereasthesteelmarketcontinuestobeseriouslyaffectedbythedeterioration
oftheeconomicsituation;whereas,inordertocreateeconomicconditions
favourabletotheindispensable restructuring oftheironandsteelindustry,
immediateactionwithregardtothesalespricesofsteelisabsolutely
necessary;whereasurgentimplementation ofsuchactionisbecomingincreasingly
essentialinthisperiodofcrisis;
■I
Whereasinmid-1981,notwithstanding acertainimprovement,thesalesprices
ofironandsteelproductsremainedatlevelsthatwereinsufficient to
guaranteeafuturefortheundertakings,eveninthecaseofmoderninstallations,
and,undertheseconditions,itisindispensable toimplementaveryshort-term
actionforrationalization ofthesteelmarketinsuchawayastobringabout
theriseinpricesnecessarytopreventfinancialdisaster;

-2-
Whereasthesteelmarketconstitutes awholeinwhichthedealersplayan
importantrole,inviewofthefactthatmorethanhalfofthesteelmarketed
intheCommunity,eitherindirectsalesorex-stock,includingmaterial
importedfromnon-Community countries,passesthroughtheirhandsandthat,
undertheseconditions,anyactionintendedtoaffectthepricesmustinvolve
notonlytheproducers,butalsothedealers;
Whereas,inconsequence,theCommissionDecisiondirectlyandindirectly
imposingobligations ^onthedistributionundertakings appearednecessaryin
ordertoattain,intheoperationofthesteelCommonMarket,theobjectives
oftheTreatyassetout,inparticular,inArticle3;whereastheTreaty
makesnoprovisionforthiscaseanditisthusnecessarytoapplythe
provisionssetoutinthefirstparagraphofArticle95;-,-
Whereas,inordertoensurethattheobligatipnsresultingfromthisDecision
arefulfilled,itisnecessarytomakeprovisionforcontrolsandpenalties
and,toobligethedistribution undertakings,duringtheverification procedures,
topresentinparticularcommercialandaccountingdocumentsofthesametype
asthoserequiredfromtheproducerspursuanttoDecisionNo14-64,the
provisionsofwhicheresetoutinacommunication (1);
Whereas,beacauseofthemorecomplexnatureoftheproblemsposedbythe
establishment ofpricelistsforspecialsteelproducts,itisappropriate
inthisrespecttogivethedistributive undertakings additionaltimeto
complywiththedispositions ofthepresentDecision;.
'AfterconsultingtheAdvisoryCommitteeandjwiththeassentoftheCouncil
actingunamimously ;
– -
HASADOPTEDTHISDECISION: .I
Article 1
1.ThisDecisionisapplicable -tothedistributive undertakings intheCommunity
whicheffectdirectandex-stocksales,withintheCommonMarket,ofsteel
productsasdefinedinAnnexItotheTreatywiththeexceptionofscrapiron,
providedthat •
(1)O.J.,

-theyobtainedthesteel,intotalorinpart,directlyfromsteelproducers
intheCommunityornori-Community countries,
and
-theirsteelresalefigures,combined,whereappropriate,withthesteel
resalefiguresoftheirparentand/orsubsidiarycompanies,involvea
minimumo,f.......tonnesperyear,basedonthefiguresofthelastfinancial
year,
and
-theyarenotsellingagenciesasdefinedinDecision30-53,
hereinafter called"steeldealers".
Thedistributive undertakings referredtoinparagraph 1whichmarketsteel
productsafterhavingprocessedthemshouldalsobeconsidered as"steel
dealers"andsubjectedtothesamerules.ForthepurposesofthisDecision,
processingoccurswhenoneofthesteelproductslistedinAnnexIofthe
ECSCTreatyisprocessedintoanothersteelproductlistedinthesameAnnex
bymeansofanoperationotherthanrolling.
Article2
Thesteeldealersshallbeobligedtopublishpricelistsandconditionsof
salefordirectandex-stocksalesinaccordance withtheprovisionsetout
belowandtocommunicate themtotheCommission.
Aparentsteel-trading companymaypublishonepricelistandconditionsof
salevalidalsoforitssubsidiaries andbranches.
Article3
Allpricelistsandconditionsofsalepublishedshallcontainthefollowing
information :
(a)Basispricesaccordingtocategoryofproductorbasispricesforeach
gradeandcategoryofproduct;

-4-
<b)Extraswhichareapplied,indicating
-extrasforsizeandlength,
•-extrasforgradesandquality,
-quantityextrasandrebatesforeachsampleand/orforeachspecified
order,
-tolerancesnotliabletosurcharge,
-extrasforreducedtolerances,
-alsosurchargesandincreasesnormallyappliedin-connectionwith
deliveryofthevariousproducts,particularly surchargesforcutting
andslitting;
(c)Placeofdelivery;
/
(d)Method®ofquotation;
(e)Costsinconnectionwiththemethofofshipment;
(f)Wheretheyareapplied:
-discounts,rebatesandanyotherkindofbenefittootherdealersor
users;
(g)Termsofpayment;
(h)Natureandamountoftaxesandother^charges additionaltotheprices
onthepricelists,underthetermsofferedtopurchasers.
Article4
,Thepricelistsofasteeldealershallnotcontainpricesforproductswhich
arenotactuallyofferedonthemarketbythesteeldealerconcerned.
Article5
1«(a)Thepricelistsandconditionsofsaleshallapplynotearlierthantwo
cleardaysaftertheyhavebeencommunicated totheCommission.
(b)Thesteeldealershall,uponrequest,communicate themtoanypersonwho
isinterested.
2.Paragraph 1shallapplyequallytoanyamendmentofpricelistsandconditions
ofsale.
• -./.

-5-
Article6
1.Fordirectsales,steeldealersmayalsodischargetheirobligationto
publishpricelistsandconditionsofsalebyincludingthefollowing
clauseintheirpricelistsforthesaleofsteel,dependingonitsorigin:
(a)"ThepricesapplicabletodirectsalesofsteelcomingfromanECSC
producerarethedeliveredpriceattheplaceofdestination obtained
fromtheproducer'spricelistonwhichthesalewasbased,towhich
Ourpublishedconditionsofsaleandthefollowingextrasare
applied
(b)"Thepricesapplicable ,todirectsalesofsteeloriginating incountries,
alignmentonoffersfromwhichhasbeenprohibited bytheCommissionof
theEuropeanCommunities,arethedeliveredpricesobtainedfromthe
pricelistoftheCommunityundertakingofferingthelowestdelivered
priceattheplaceofdestinationafterdeductionofthepenetration
marginsgrantedtothosecountries,towhichourpublishedconditions
ofsaleandthefollowingextrasareapplied
(c)"Thepricesapplicabletodirectsalesofsteeloriginating inother
thirdcountriesarethecostpricesattheplaceofdestination obtained
fromthebasicpricesforimporationpublishedbytheCommissionofthe
EuropeanCommunities,towhichourpublishedconditionsofsaleandthe
followingextrasareapplied
2.Directsalemeansthat,undersalescontractsconcludedbetweentheproducer
andthedealerontheonehandandbetweenthedealerandhiscustomerwho
ispurchasingthegoodsontheotherhand,thegoodsareshippeddirectly
fromtheproducertothedealer'scustomerorinaccordancewiththe
•* ,
customer'sinstructions .Allothersalesareex-stocksales.

-6-
Article 7
Steel dealers need notpublish rebates forsub-standard products orseconds .
They arethen required tostate onthe invoice thereasons forclassification
assub-standard products orseconds .
-Article 8
Itshall beaprohibited practice forthe steel dealer toapply inthe
Common Market dissimilar conditions (Article 10)tocomparable transactions
(Article 9).
Article 9
1aTransactions shall beconsidered comparable if :
(a)they areconcluded with purchasers
-who compete with one another /or
-whoproduce the same orsimilar goods ,or
-whocarry out similar functions indistribution ;
(b)they involve the same orsimilar products ;
(c)inaddition ,their other relevant commercial features donot differ
appreciably .
*1
s
2.Transactions shall not beconsidered comparable if,between thedates of
their being agreed upon ,alasting change hasoccurred inthe steel dealer 's
prices orconditions ofsale .
Article 10
laConditions shall not beconsidered dissimilar ifdifferent conditions ,which
make appropriate allowance fordifferences intheservices rendered orinthe
carrying outoftransactions ,areapplied byasteel dealer tocomparable
transactions .
2.Conditions shall beconsidered dissimilar if,without acorresponding increase
inprice ,asteel dealer allows periods forpayment more favourable than those
generally applied tocomparable transactions .

-7-
Article11
Steeldealerswhoallegethattransactions arehotcomparable (Article9)
orthatconditionsarenottobeconsidereddissimilar (Article10)shall,
attherequestoftheCommission,setouttheappropriatefactsandcir­
cumstancesthatmayjustifytheirallegations.
Article12
1.Whereasteeldealeralignshisquotationonacompetitor'spricelist,
itshallbeaprohibitedpracticeforhimtoapplyconditionsaffording
thepurchaseraneffectivedeliveredpriceatfinaldestination lower
thanthatatwhichthepurchasercouldobtainthegoodsfromthe
competitor.
2.Incalculatingdeliveredpricesatfinaldestination,accountshallbe
takenoftransportcosts,surchargesortaxesbornebythepurchaser,
lessrebatesordrawbacksallowedhim,inadditiontothepricesand
conditions.
3.Whereasteeldealeralignshisquotationontheconditions madebya
competitoroutsidethe'Community,theprovisionsinparagraph 1and2
shallapplymutatismutandis.
A.Steeldealerswhoallegethattheyhavealignedtheirquotations onthe
lowerdeliveredpriceofacompetitorintheCommonMarketorofa
competitoroutsidetheCommunity,shall,attherequestoftheCommission,
beobligedtodemonstratethattheconditionsforthealignmentwere
presentandthat,whencalculating thealignmentprice,theycomplied
withtheprovisionsofparagraphs 1to3ofthisArticle.
Theconditionrequiredforsuchanalignmentonconditionsofferedby
competitorsoutsidetheCommunityisthatitwasmadenecessarybythe
effectivecompetition ofthecompetitoroutsidetheCommunity.by
the
/

5.Steeldealersmust
fromnon-Community
virtueofDecisioncomplywiththeprohibitions ofalignmentonquotations
countrieswhichapplytoCommunityundertakings by
No527/78/ECSCof14March1978.(*)
Article13
Itshallbeaprohibitedpracticetoincludeinthepricechargedtothe
purchasertheamountofanytaxesorchargesinrespectofwhichthesteel,
dealerisentitledtoexemptionordrawback.,
Article14
Steeldealersshallbeobligedtofurnishallthenecessaryinformation
totheCommission,whichmaycarryoutallthenecessarycheckstoensure
thattheabove-mentioned provisionsarebeingcompliedwith.
Forthepurposesofsuchchecks,steeldealersshallbeobligedtokeep,
andmakeavailabletotheagentsorauthorizedrepresentatives ofthe
Commissioncarryingoutthechecks,businessbooksandaccountingdocuments
includingatleastthosesetoutinArticle1(a)to(g)ofCommission
DecisionNo14-64of8July1964. ~
Articte15
1.SteeldealerswhoinfringetheprovisionsofArticles Hto13inclusive
shallbeliabletofinesoftwicethevalueofthesaleseffectedin
disregardthereof.Iftheinfringement isrepeated,thismaximumshall
bedoubled.
(*)DecisionNo527/78/ECSCof14March1978(OJNoL73of15March1978,.
p.16)asamendedbyDecisions No9Q9/81/ECSCof2April1981
(OJNoL91of4April1981,p.11),No1080/81/ECSGof23April1981
(OJNoL112of24April1981,p.18)andNo1309/81/ECSCof14May198V
(OJNoL130of16May1981,p.19).

2,Steeldealerswhoinfringetheprovisions ofArticle14shallbeliable
tofinesnotexceeding 1%oftheannualturnoverandtopenaltypayments
notexceeding 5Xoftheaveragedailyturnoverforeachday'sdelay.
Article16
ThisDecisionshallenterintoforceonthedateofitspublication inthe
OfficialJournaloftheEuropeanCommunities forordinarysteelsandon
1stOctober1981forspecialsteelsasdefinedinEuronorm20-74.Itshall
applyuntil30June1982.
ThisDecisionisbindinginitsentiretyanddirectlyapplicableinall
MemberStates.
DoneatBrussels,
FortheCommission