ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)391
Vol.1977/0128

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)391final.
Brussels.28July1977
Draft
REGULATION (EEC )OFTHE COUNCIL
opening,allocatingandadministering aCommunitytariff
quotaforferro-chromium containingnotlessthan4%"by
weightofcartonfallingwithinsubheadingex73.02EI
oftheCommonCustomsTariffandextendingthebenefitof
thisquotatocertainimportsofferro-chromium containing
aquantityof"between3and "byweightofcarbon
(submittedtotheCouncilbytheCommission)
C0M(77)391final.

ν
EXPLANATORY MEMORANDUM
1.When theRegulation onthe 1977 tariff quota forferro-chromium
containing not less than A7.byweight ofcarbon (high carbon
ferro-chromium )was approved bytheCouncil ,theCommission
was asked toreview thestate ofthemarket inthis product
before thebeginning ofMay 1977 and tosubmit adraft
Regulation toincrease thetariff volume ifitbecame apparent
that requirements forimports from third countries were likely
toexceed theinitial volume opened .
Asaresult ofrequests bycertain Member States that
Community tariff quotas forferro-silicon ,ferro-silico -
manganese andlow-carbon ferro-chromium beopened for 1977
onanautonomous basis ,theCommission decided toreview the
state oftheCommunity markets inthese three ferro-alloys
aswell and tocalculate anyCommunity deficits .
2.These reviews mainly took place atmeeting held with ferro­
chromium producers andconsumers on22April 1977 andwith
government experts on16June 1977 ,andwere based onforward
data supplied byrepresentatives ofprivate firms orby
competent authorities oftheMember States .
Themain points that emerge from these discussions are as
follows :
(a)When therates ofduty applicable intheCommunity to
goods from certain third countries aresetatorreduced
toalevel lower than thequota rates ofduty usually
adopted with autonomous quotas forferro-silicon ,.ferro -
silico-manganese andlow-carbon ferro-chromium ,the
requirements forimports from third countries tobemet
from these tariff quotas areconsiderably reduced ;

-2-
(b)Crv^munityproductioncapacitiesarenotusedtothefull
andcertainfurnacesdesignedtomanufactured ferro­
siliconorferro-silicon-manganesehavehadtobeshut
downforlackofsufficient demand;theproduction
capacitiesputforwardforferro-silico-*raanganese,for
example,areoftheorderof120000tonnes,whereas
actualproductionin1976wasonly83000tonnes,which
wouldallowanincreaseofabout50%;
(c)therearenowlargestocksofalltheferro-alloys in
questionwithCommunityproducers;
(d)especiallyasregardshigh-carbon ferro-chromium ,the
ptoblemsofimportsfromSouthAfrica,theembargoon
Rhodesian chromiumandthedeflections oftradewhich
arebelievedtohavebeendetectedincertainthird
countriesandintheCommunityhavegivenriseto
disturbances oftheCommunitymarketwhichcallfor
extremecautiontobeexercised;
(e)inthelightoftheeconomicforecastsnotifiedinthi$
connection,Communitybalancesheetsforeachofthe
productsconcernedcanbeproducedasfollows:
Ferro-siLiconFerro-si co-
manganeseLow-carbon High-carbon
ferro-chromiumferro -chromiun
Consumption
Productioncapacities
Inwardprocessing
Importsfromthirdcountriesat
arateofdutyequaltoorlower
thanthequotadutyusuallyadop­
ted(associatedcountries,EFTA)
Exportstothirdcountries
Quotasopenedon1January1977
Abnormalstocks,asat31Decem­
ber1976I
-intonnes-
491740
319000
2050
128470
40000
20000Ί95750
120000
2000
49880
•4450
50000114350
97000
0
13185
6700
3000
11234441760
210000
0
32405
23000
52000
35000
•••/•••

According Cothis information ,thecalculation ofCommunity
requirements for imports from third countries ,carried out
bytheusual method ,reveals thefollowing deficits and
surpluses :
-forferro-silicon : surplus of17780 tonnes ,not
counting theabnormal stocks in
being asat31December 1976 ,which
could not beaccounted for ;
-forferro -silico -manganesej surplus of40580tonnes ,notcounting
theabnormal stocks inbeing asat
31December 1976 ,which could notbe
accounted for ;itshould benoted that
if,inthecalculation ofrequirements ,
' •the 120000 tonnes put forward asCommu­
nity production areregarded solely as
theoretical capacities ,consideration of
actual production capacities would
nevertheless result inarelatively
small oreven zero final surplus ;
-for low-carbon ferro­
chromium : ..surplus of16769tonnes ;
-forhigh-carbon ferro­
chromium : deficit of89355 tonnes ;inthis
connection itshould benoted that the .
calculations performed atthemeeting
offerro-chromium producers and
consumers ,held on22April 1977 ,on
.thebasis offigures put forward by
them ,gave rise tovirtually thesame
result .

(r)the opposition hasbeen expressed tocontinuation of
thezero rate ofduty ,which hadbeen decided forthequota
opened atthebeginning oftheyear ,forasupplementary
tariff quota forhigh-carbon ferro-chromium .
Having regard toall these considerations ,theCommission proposes
should
that for thetime being anautonomous tariff quota /beopened only
forhigh-carbon ferro-chromium .
This tariff quota ,valid from theentry into force oftheCouncil
Regulation to31December 1977 ,would cover avolume of50000tonnes
andbecoupled with anintermediate rate ofduty of3%.The
Commission is,however ,willing toreview intheautumn thestate
ofthemarkets intheother ferro-alloys ,ifitreceives a
request backed up !bynewinformation .
Theadministrative arrangements proposed forthis quota call for
nospecial comments ,since they arenodifferent from those
previously adopted bytheCouncil inthesame circumstances .
Thevolume istherefore divided into twotranches ,thefirst
being allocated among theMember States inproportion totheir
needs and thesecond constituting theCommunity reserve .The
Community reserve isall themore justified inthis case since
thedraft Regulation pvovulea that only those Member States having
currently foreseeable specific requirements canparticipate

initially .TheMember States' requirements have been assessed
from .theestimates ofactual needs put forward byeach ofthem ,
reduced bytheshares allotted them when theinitial quota was
allocated ordrawn from theCommunity reserve constituted onthat
occasion .

Draft
REGULATION (EEC)No
of■•«OFTHECOUNCIL
opening,allocatingandadministering aCommunitytariffquotaforfcrro-chro-
miumcontainingnotlessthan4'/•byweightofcarbonfallingwithin
subheadingex73.02EIoftheCommonCustomsTariffandextendingthe
benefitofthisquotatocertainimportsoffcrro-chromium containingaquan­
tityofbetween3and4"/•byweightofcarbon
;THECOUNCILOFTHEEUROPEANiCOMMUNITIES .
f
HavingregardtotheTreatyestablishingtheEuropean
s.EconomicCommunity,andinparticularArticle28
thereof;
?.HavingregardtothedraftRegulationsubmittedby
■itheCommission ;
WhereasbyitsRegulation(EHC)No270/7<')of
■ji"theCouncilopenedfor1977andappor-
?tionedamongtheMemberStalesaCommunitytariff
quotaofatotalsizeof52000tonnesforfcrro-
\chromiumcontainingnotlessthan4%byweightof
£carbonandhasextendedtheapplicationofthisquota
j;tocertainimportsolterro-chromium containing
between1and4"/obywciplitofcarbonfallingwithin
isubheadingex73.02EIofIlieCommonCustoms
(Tariff:i
Whereasfortheproductinquestion.Community
j.productionisinadequateandproducersarcunableto
meetthetotalrequirementsofconsumerindustriesin
ftheCommunity ;whereas,havingregardtothemost
i"recenteconomicdatafor1977onconsumption ,
vproduction,exportstothirdcountries,importsunder
!■theinwardprocessing .arrangementsorothertariff
X.preferenceschemesandtakingaccountofthestocks
JheldbyanumberofMemberStateson.11December
i-'.|976s>hcrcisreasontoassumethattheadditional
iCommunityimportrequirements inrespectof
.importsfromthirdcountriesmayreachthelevelof
■70000tonnes ■duringiv77;whereasitisthere-
Vfort1intheCominunity'sinteresttosuspendin
respectofthismetaltheapplicationoftheCommon
CustomsTariffdutyuntil.MDecember1977,withina
suitabletariffquota;whereasiriordernottoraisethe
iquestionoftheprospectsfordevelopment ofthe
i;Community productionsector.j
I'I itisappropriatetofix
1thequotavolumeandtherateofdutyapplicableat
thelevelof5"000tonnesand.1%respectively ;
•whereasthefixingofthisamount,relatingtoprudent
lCNtiniiik's,tlocbnotexiluriefutureiuljustmeni;
f,
•y.• ..
■Whereasrelativelylimitedimportsofferro-cluonmim
*containingaquantityofbetweenand4%by
<•)OjNoL■39,10.2.1977/p.2.'weightofcarbonareforeseeableforthisquotaperiod;
whereasprovisionshouldbemadeonatemporary
basisfortheextensionofthebenefitofthetariff
quotainquestiontotheseimports,limitingit
howeverto20"/oofthequotavolumetakingaccount
oftheexistenceofCommunityproduction;
Whereasequalandcontinuousaccesstothequeta
shouldbeensuredforallCommunityimportersami
therateofdutyforthetariffquotashouldbeapplied
consistently toallimportsuntilthequoini«
exhausted;whereasinthelightoftheseprinciples
arrangements fortheutilizationofthetariffquota
basedonanallocationamongMemberSt.iteswou!<i
seemtobeconsistentwiththeCommunitynaturec!
thequota;whereas,cocorrespondasclosely.:s
possibletotheactualtrendofthemarketintb.-
productinquestion,allocationofthequotashouldbe
inproportiontotherequirements oftheMember
Statesascalculatedbyreferencetostatisticsofimport;,
fromthirdcountriesduringarepresentative reference
periodandtotheeconomic -outlookforthequota
periodinquestion;
Whereas,however,sincethequotaisanautonomous
Communitytariffquotaintendedtocoverimport
needsarisingintheCommunity ,itmay,asanexperi­
ment,beallocatedonthebasisofthetemporary
importneedsfromthirdcountriesexpressedbyeach
oftheMemberStates;whereas,onthebasis
economicinformationsuppliedandallowingfordutv
freesuppliesfromtheCommunityorcertainthiio
countries,theseneedswouldamounttothefollowing
percentagesofthetariffquota;
WhefeasinthecaseofIreland,thepresentstateot
drawingsfromitsshareoftheinitialquotaof52000
tonnes ■openedbytheabovementioned Regula­
tionandthemostrecentavailableeconomicinforma­
tionandstatistics,donotjustifyatpresentitspartici
pntionintiieproposedincreaseoftheCommunity
tariffquota;whereas,moreover,shouldadditional
needsarisesubsequently >"'h.'lMemberStaleitmay
haverecoursetotheproceduresetupunderAnnieJ
ofthi>Regulation;whereasibissystemofallocation
alsoensurestheuniformapplicationofihcCommon
Customs'lanli

10.06
0.01
54.6A
10.48
3.62
21.19;>'•;'B<-nc!ux -•■•...
\'•Denmark '
•Germany
Fraiuv
»v
/.'UnitedKingdom
:Whereas.totake.accountof_futureimporttrendsfor
theproductconcerned,{ticquotashouldhedivided
'•intotwotranches,thefirstbeingallocatedamongthe
^above-mentioned MemberStalesandthesecondheld
'asareservetocoversubsequentlytherequirementsof
|MemberStateswhichhaveexhaustedtheirnewshares
?anilanyadditionalrequirementswhichmightarisein
j.theotherMemberStates;whereas,togiveimporters
jofMemberStatessonicdegreeofcertainty,thefirst
^trancheofthetariffquotashouldbefixedatarcla-
•tivelyhighlevelwhichcouldbe45000tonnes
I
j'WhereasMemberStatesmayexh.msttheirinitial
;shinesaldilferentrates;whereastoavoiddisruption
j-ofsupplieronthis'accountitshouldbeprovidedthat
•anyMemberStatewhichhasalmostusedupitsinitial
«.shareshoulddrawanadditionalsharefromthe
reserve;whereaseachtimeitsadditionalshareis
;;«'.imostexhaustedaMemberStateshoulddrawa
■/.lur.hcrshare,andsoonasmanytimesasthereserve
fallows,whereas,theinitialandadditionalshares
/shouldbevaliduntiltheendofthequotaperiod;
whereasthisformofadministration requiresclose
collaboration betweentheMemberStatesandthe
CommissionandtheCommissionmustbeinaposi­
tiontokeepaccountoftheextenttowhichthequotas
havebeenusedupandtoinformtheMemberStates
■:accordingly ;
;Whereasifatagivendateinthequotaperioda
e011.sHlcr.1McquantityofaMemberState'sinitialshare
remainsunuseditisessentialthatsuchStateshould
■returnasignificantproportionthereoftothereserve,
'inordertopreventapartofaquotafromremaining
■utilisedinoneMemberStatewhileitcouldbeusedin
:others; ' '•50000tonnos shallbeopenedwithinthe
v'.ommunityinrespectofferrochromiumcontaining
notlessthan4%byweightofcarbonfailingwithin
subheadingex73.02F.IoftheCommonCustoms
Tariff.
2.DuringthisperiodtheMemberStatesshallbe
authorizedwithinthe20%limitofthequotasallo­
catedtothemorwhichtheylevyonthereservein
accordancewithArticles2andJtochargeagainstthe
saidtariffquota,importsofferro-chromium
containingaquantityofbetween3and4%by
weightofcarbon.
3.Withinthisquota,thecustomstariffdutyshall
besuspendedat'3%.
Article2
1.Afirstinstalmentof45OOOtonnes .ofthis
Communitytariffquotashallbeallocatedamongthe
MemberStates;theshares,whichsubjecttoArticle6
shallbevaliduntil31DecemberIV77shall'beas
follows:
Bénélux
Denmarit
Germnny
hrance
Italy
UnitedKingdom4527
24588
4716
1629
9535.1
9tonnes
tonnes
tonnes
tonnes
tonnes
tonnes
2.Thesecondinstalmentof5000ionnes
constituteareserve.
Artidi-3shall
whereas,sincetheKingdomofIk'lgium,the
KingiiomoftheNetherlandsandtheGrandDuchyof
Luxembourgareunitedwithinandjointlyrepresented
bytheBeneluxFxoriomicUnion,anymeasure
concerningtheadministration ofthesharesallocated
tothatEconomicUnionrr.aybecarriedoutbyany
oneofitsmembers.Shouldferro-chromium berequiredinIreland,this
MemberStateshalldrawasufficientsharefromthe
reservetotheextentthatthereservesopermits.
Artnie4
HASADOPTEDTHISREGULATION :
Artidi/
* ■
V '1
I.FromthedateofentryintoforceofthisRegula­
tionanduntil31December1V7?atariffquothaofI.Assoonasoneo!theMemberStateshasused
90%ormoreofitsinitialsiiareasfixedinArticle2
(I),orofthatshareminusanyportionreturnedtothe
reservepursuanttoArticle6.itshallforthwith,bynoti­
fyingtheCommission ,drawasecondshare,tohe
extentthatthereservesopermits,equalto10%ofits
initialshareroundedupasnecessaryiothenext
wholenumber.

X
m»«>
2.AssoonasoneoftheMemberStates,after
exhaustingitsir•',<alshare,jiasusedVO%ormoreof
thesecondshare('twobyit,thatMemberStateshall
forthwith,inthemannerandtotheextentprovided
inparagraph I,drawathirdshareequalto5%ofits
initial'hare.
.J,AssoonasoneoftheMemberStates,after
exhaustingitssecond.share,liasusedVO%ormore'of
thesharedrawnbyit,(hatMemberStateshallforth­
withandinaccordancewiththesameconditions,
drawafourthshareequaltothethird.
Thisprocessshallcontinueuntilthereserveis
exhausted .
4.Notwithstanding paragraphs 1to3,aMember
Statemaydrawshareslowerthanthosespecifiedin
thoseparagraphsiftherearcgroundsforbelieving
thatthosespecifiedm^ynotbeusedinfull.Any
MemberStateapplyingthisparagraphshallinform
(heCommissionofitsgroundsforsodoing.
Artide5
AdditionalsharesdrawnpursuanttoArticle3shallbe
validuntilMDecember1977.
Article6
TheMemberStatesshallnotlaterthan1November
!V77returntothereservetheunusedportionoftheir
initialsharewhichon1.1October 1V77exceeds.20%
oftheinitialamount.Theymayreturnagreater
portioniftherearegroundsforbelievingthatsuch
portionmaynotheusedinfull.
NotlaterthanINovember1977theMemberStates
shallnotifytheCommissionofthetotalquantitiesof
theproductsinquestionimporteduptoand
including1.5October 1V77andchargedagainstthe
Communityquotaandofanyportionoftheirinitial
sharesreturnedtothereserve.
Arlidv7^
MemberStatesmayrestricttheusetowhichpro­
ductschargedagainsttheirquotasharescaybe
put.Article8
TheCommissionshallkeepanaccountoftheshares;
opened1'vtheMemberStalespursuanttoArticles-2
ami,.,idr.h.ill,a.ssoonastheinformationreachesit,
informeachStateoftheextenttowhichthereserve
hasbeenusedup.
Notlaterthan5November1977itshallinformthe
MemberStatesoftheamountsstillinreserve
followinganyreturnofsharespursuanttoArticle6.
Itshallensure(hatwhenanamountexhaustingthe
reserveisdrawn,theamountsodrawndoesnot
exceedtinb.iianccavailable,andtothisend.shall
notifytheamountofthatbalancetotheMemberState,
makingthelastdrawing.
ArtUic9
1.TheMemberStatesshallrakeallappropriate
measurestoensurethatadditionalsharesdrawn
pursuanttoArticle3areopenedinsuchawaythat
importationsmaybechargedwithoutinterruption
againsttheiraccumulatedshareofthetariffquora.
.2.TheMemberStatesshallensurethatimporters
oftheproductinquestionestablishedintheirterrito­
rieshavefreeaccessrotheshare;-allocatedtothem.
3.TheMemberStateshallchargeimportsofthe
productinquestionagainsttheirsharesasandwhen
thtproductisenteredwiththecustomsauthoritiesfor
*homeuse.
4....TheextenttowhichtheMemberStateshave
.useduptheirsharesshallbedetenninedonthebasis
oftheimportationschargeda/j.'i-.sttheirsharesin
accordancewithparagraph3.•
Artiac1fi
AttherequestoftheCommission ,theMemberStates
shallinformitofimport*chargedagainsttheirsh.ucs:
Artidt■11
TheMemberStatesandtheCommissionshallcoon-'
eratccloselytoensurethatthisHegulationis
compliedwith.
Article"12
ThisRegulationshallenterintoforceon
theseventhdayfollowingitspublication
intheOfficial'Journal'oftheEuropean
Communities.

•4»
V:I'mRegulationshallbebindingjniuentiretyanddirectlyapplicableinallMember''
'1MiltCK< *
V ·' ·*
DoneatBrussels,J '.' j
ForiheCouncil .\
/•' ^' ThePrvsiiiint

FINANCIAL STATEMENT Date :20June 1977
1.Budgt cli.je concerns' :Cn.12Art .120
2.Legal basis :Art .28oftheTreaty
3.Title ofthe tariff measure :
Draft Regulation (EEC )oftheCouncil opening ,allocating andadministering
aCommunicy tariff quota forferro-chromium containing not less than 4%by
weight ofcarbon falling within subheading ex73.02 EIoftheCommon Customs
Tariff andextending thebenefit ofthis quota tocertain imports offerro­
chromium containing aquantity ofbetween 3and4%byweight ofcarbon
(year 1977 )
4.Objectives :
Toensure thesupply ,under favourable conditions ,ofuser industries .
5.Method ofcalculation :
-NoofCCT
-Quota volume
-Quota duty rate
-Duty rate CCTex73.02 EI
50000 tonnes
3%
8%
6.Loss ofreceipts : j435350UCE .