ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)1726
Vol.1974/0275

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)1726 final
Brussels,23October1974
Proposalfora
-REGULATION (EEC)OFTHECOUNCIL
ontheopening,allocationand.administration ofa
Communitytariffquotaforunwroughtmagnesiumfalling
withinsubheading No77.01AoftheCommonCustomsTariff
(submittedtotheCouncilbytheCommission)
C0M(74)1726final

EXPLAITATORY MMORÂMlHJM
1.InanexchangeofletterswiththeNordicDelegation,theCommunity
hasundertakentoopenatthe"beginningofeachyearaduty-freetariff
quotaforaquantitysuchthatCommunityrequirements notcovered "by
Communityproduction maybeimportedduty-free.
2.Sofar,"becauseofthecontinuallychangingpatternofCommunity
consumptionandproduction,ithasproveddifficulttoassessthequota
.volumeatthe"beginningoftheyearonthe"basisgivenintheundertaking .
Inrecentyears,theassessmentofthisvolumehasprovedextremely
unreliablesinceitisimpossibletoestimateforagivenyeareither
probableconsumptioninGermany(themainuser)orCommunityproduction,
whichislikelytoincreaseappreciably asaresultofextensionsto
existingplant.Forallthesereasons,theinitialtariffquotasforthe
yearsconcernedhave,onaproposalfromtheCommission,beenfixedat
averagelevelscalculatedconservatively ,withoutprecludingadjustments
duringtheyear,onthebasisofthemostrecentstatisticsandfore­
casts.
Asthissituationhasremainedvirtuallyunchanged,thelikelylevels
ofCommunityproductionandconsumptionin1975cannotbereliably
estimatedatpresent|thiswillonlybecomepossibleinthecourseofthe
tariffyearconcerned.
Consequently ,itisproposedtofollowthemethodadoptedforrecent
years,namely,toopenon1January1975anaveragetariffquota,the
volumebeing12000metrictons,andtoadjustthisvolumeduringthe
yearifadditionalneedscometolightinanyMemberState.

-2- :Ί·Ζ-*-
3.Intheabsenceofmoreaccuratestatisticsregardingthepatterns
ofCommunityproduction,thevolumeof12000metrictonshasbeen
subdividedbetweenextra-puremagnesium,unwroughtmagnesiumnotin
alloyandmagnesiuminalloyinaccordancewithsubstantially thesame
percentagesasusedforthequotaopenedsofarinrespectof1974andin
accordancewiththeimmediaterequirementsnotifiedbytheMemberStates.
4.TheCommissionproposalsonthedistribution ofthequotavolumes
allocated *tothethreequalitiesofunwroughtmagnesiumhavebeen
broadlyguidedbythosecoveringthesameproductsinprecedingyears,
sothattheallocationofthesharesagainconformstotherulesnormally
followed(calculationbasedonpreviousreoordsandforecastsfor1975.)*
Asfortheformofadministration ,itisproposed,ashasalsobeen
customary,tosetupforthethreequotavolumesareserveintowhich
anysurplusportionsoftheshareswouldbereturnedandfromwhich
theMemberStateswhichstillhadrequirements tobesatisfiedcould ■
drawsupplementary shares.
*
* *

Proposalfora
REaUMTIO#(552C)OFTHECOUNCIL
ontheopening,allocationandadministration ofa
Communitytariffquotaforunwroughtmagnesium
fallingwithinsubheading No77.01A.oftheCommon
CustomsTariff
THECOUFCILOPTHEEUR0P2LANCOMKUMTISS ,
HavingregardtotheTreatyestablishingtheEuropeanEconomicCommunity,
andinparticularArticle113thereofj
HavingregardtotheproposalfromtheCommission ^
Whereas,inanexchangeoflettersof30June1957«confirmed "inan
exchangeoflettersof16April1973,theEuropeanEconomicCommunity
hasundertaken,asregardsunwroughtmagnesiumfallingwithintariff
subheading No70.01A,toopenanannualCommunitytariffquotafora
quantitysuchthatCommunityrequirementsforthesaidgoodsnotcovered
byCommunityproduction maybeimportedduty-free ^
WhereasinordertoestablishthevolumeoftheCommunitytariffquotaan
assessmentmustbemadeofthetotalconsumption bytheuserindustriesof
theMemberStatesduringthetariffyearandoftheCommunityproduction
levelforthe-sameperiodswhereasevenaveryroughassessmentoftotal
consumption andproductionfor1975willbehighlyunreliablesinceitis
atpresentimpossibletoestimateeither,thevolumeofunwroughtmagnesium
usedincertainMemberStatesintheyearunderconsideration orthelikely
levelofCommunityoutputjwhereasthereisinanycasenolikelihoodof
Communityproductionmeetingthefulldemandinthetariffyear$whereas
theannualquotavolumemustthereforebefixedatanappropriatelevel,
•Λ

probablyabout12000metrictons5whereasthisassessmentisbasedon
conservative estimatesandlateradjustmentsarenotexcluded;whereas
thedutiestobeappliedbythenewMemberStatestinderthesaidtariff
quotamustbeinconformitywiththerelevantprovisionsoftheActof
Accession;
Whereasthsmarketsinmagnesiumcontainingnotlessthan99*95$of
puremagnesium(hereinaftercalled"extra-puremagnesium"),inmagnesium
containingnotlessthan99*8$byweightofpuremagnesium(hereinafter
called"unwroughtmagnesiumnotinalloy")andinmagnesiumcontaining
lessthan99*8^-byweightofpuremagnesium(hereinaftercalled"unwrought
magnesiumiialloy")differconsiderably ;whereasadistinctionshould
thereforebemadebetweenthethreequalitiesandthequotavolumeunder
consideration shouldbedividedbetweenthem;
Whereas,takingintoaccountanoverall,provisional .quotavolume
of12000metrictons,theimmediateneedtoimportsome700metric
tonsofextra-puremagnesium,1500metrictonsofunwroughtmagnesium
notinalloyand9800metrictonsofunwroughtmagnesiuminalloyhas
beenestablished ;whereasthesefiguresappearjustifiedbothbythe
formerratiosofconsumptionofthesequalitiestototalconsumptionof
magnesiumandbytheshort-termoutlookforCommunityproductionof
thesequalitiesofmagnesium;
Whereasequalandcontinuousaccesstothequotashouldbeensuredfor
allimportersandtherateoflevyforthetariffquotashouldbe
appliedconsistentlytoallimportsuntilthequotaisusedup;whereas,
inthelightoftheprinciplesoutlinedabove,aCommunitytariff
arrangement basedonanallocationbetweentheMemberStateswouldseem
topreservetheCommunitynatureofthequota;whereastorepresent

-3-
ascloselyaspossibletheactualdevelopmentofthemarketinthesaid
goodstheallocationshouldfollowproportionately therequirements of
theMemberStatescalculatedbothfromstatisticsofimportsfromthird
countriesduringarepresentative referenceperiodandfromtheeconomic
outlookforthetariffyearinquestion ^
Whereas,however,theavailablestatisticsofimportsintotheIlember
Statesfromthirdcountriestowhichnoequivalenttariffpreference was
appliedunderanyotherpreferential arrangements onlycoverunwrought
magnesiuminalloyandunwroughtmagnesiumnotinalloy;whereasduring
thethreeyearsforwhichstatisticsareavailablesuchimportsrepresented
thefollowingpercentagesoftotalimportsofthesaidgoods;whereas
onthebasisoftheinformationatpresenttohanditappearsthatimports
ofeirtra-pureiaagnesiumarealmostwhollyintotheUnitedKingdom,where
theyareincludedstatistically withunwroughtmagnesiumnotinalloys
-forunwroughumagnésiumnetinail05-•
1•
19711972 -'5-73
Bénélux 8.3912.276.59
Бешаагк 0.100.09 0
Germany 60.4762.4270.34
France 3.753.539.45
Ireland 0.100.090.01
Italy 1.160.442.49
UnitedKingdou 26.0321.1611.12
-forunwroughtmagnesiuminalloy:
Bénélux 0.180.323.18
Denmark 0.040.06 0
Germany 94.6797.5193.33
France 1.860.06 0
Ireland 0.050.060.01
Italy 3.111.873.46
UnitedKingdom 0.090.120.02

-4-
Whereasinviewofthesefactorsandofmarketforeoastsfortheseproducts
in1975*i"tisnecessarytoallottotheUnitedKingdomapreponderantonanexperimental basis,shareofthequotavolumeofunwroughtextras-puremagnesiuiVallotting
smallersharestotheotherMemberStates,whilesafeguardingthe *
Communitycharacterofthisquotabysettingupanadequatereserve,
andtoestablishtheinitialpercentagesharesfortheotherqualities
ofmagnesiumroughlyasfollows:
-forunwroughtmagnesiumnotinalloy:
Bénélux 15.60
Donmr-rk 0.06
Germam' - 62.50
Franoe 4.50
Ireland 0.03
Italy . 0.40
UnitedKingdom 16.91
-forunwroughtmagnesiuminalloyj
Bénélux 2.12
Denmark . 0.03
Germany 96.50
France , 0.03
Ireland , 0.02
Italy, 0.80
UnitedKingdom 1 0.50
Whereas,totakeaccountmoreaccuratelyoffutureimporttrendsforthe
saidgoods,thetotalquotavolume£>reachqualityofunwroughtmagnesium
shouldbedividedintotwotranches,thefirstbeingallocatedamongthe
MemberStatesandtheseoondheldasareservetocoveratalaterdatethe
requirements ofMemberStateswhohaveuseduptheirinitialshares;
./

whereastogiveimporterssomecertaintythefirsttranchesshouldbe
fixedat500metrictonsofextra-puremagnesium,1250metrictons
ofunwroughtmagnesiumnotinalloyand8000metrictonsofunwrought
magnesiuminalloy,the"balancesbeingheldasthereserves!
Whereastheinitialsharesmay"beusedupfairlyquicklyiwhereas,there­
fore,toavoiddisruptionofsupplies,anyMemberStatewhichhasalmost
useduponeofitsinitialsharesshoulddrawasupplementary sharefrom
theappropriatereserve^whereasthismustbedonebyeachMemberState
aseachoneofitssupplementary sharesisalmostusedup,andasmany
timesasthereserveallows^whereastheinitialandsupplementary
sharesmustbevaliduntiltheendofthequotaperiodjwhereasthis
formofadministration requiresclosecollaboration betweentheMember
StatesandtheCommission,andtheCommissionmustbeinapositionto
followthee:rtenttowhichthequotavolumehasbeenusedupandinform
theMemberStateS3
VJiereasif,atagivendateinthequotaperiod,a.MemberStatehasa
considerablequantityofoneofitsinitialsharesleftover,itis
essentialthatitshouldreturnasignificantproportionthereoftothe
appropriatereserve,topreventapartofoneorotherquotavolumefrom
remainingunusedinoneMemberStatewhileitcouldbeusedinothersj
WhereassincetheKingdomofBelgium,theKingdomoftheNetherlands
andtheGrandDuchyofLuxembourgarejointlyrepresentedbytheBenelux
EconomicUnionanymeasureconcerningtheadministration oftheshares
allocatedtothateconomicunionmaybecarriedoutbyoneofitsmembers,

-7-
HASADOPTEDTHISREGULATION :
Article 1
1,Duringtheperiodfrom1Januaryto31Deoeniber1975aCommunitytariff
quotaof12000metrictonsshall"beopenedintheCommunityforunwrought
magnesiumfallingwithinsubheading No77*01AtheCommonCustomsTariff.
2.Thevolumeofthetariffquotashall "bedividedasfollows;
(a)asto700metrictonsforunwroughtmagnesiumcontainingnot
.lessthan99*95?°byweightofpuremagnesium("extra-pure
magnesium"),intendedforthenuclearindustryandunderoustoms
controlortheadministrative equivalent ;
(b)asto1500metrictonsforunwroughtmagnesiumcontainingnot
lessthan99*8$butlessthan99*95$weightofpuremagensium
("unwroughtmagnesiumnotinalloy")5
(c)asto9800metriotonsforunwroughtmagnesiumcontainingless
•than99*85®byweightofpuremagnesium("unwroughtmagnesiumin
alloy").
3.Importsofthesaidgoodsmay,notbecountedunderthistariffquota
iftheyarealreadyfreeofcustomsdutiesunderotherpreferential
tarifftreatmentappliedbycertainMemberStates,inparticularunder
freetradeagreements.
4.WithinthistariffquotatheCommonCustomsTariffdutiesshallbe
totallysuspended.
5.WithinthistariffquotathenewMemberStatesshallapplyduties
calculatedinaccordancewiththerelevantprovisionsoftheActofAocession.
Article2
1.Thefirsttrancheofeachofthesequotaamountsconsistingof
500metrictonsofextra-puremagnesium,1250metrictonsofunwrought
,•/.

-8-
magnesiumnotinalloyand8000metrictonsofunwroughtmagnesiumin
alloyshallbeallocatedamongtheMemberStatesjtherespectiveshares
oftheMemberStates,which,subjecttoArticle5»shallbevalidfrom
1Januaryto31December1975>shallbeasfollows:
(a)forextra-puremagnesium:
Benelux 3metrictons
Denmark 1metricton
Germany 1metricton
France 1metricton
Ireland 1metricton
Italy 1metricton
•United.Kingdom 492metrictons5
(b)forunwroughtmagnesiumnotinalloy:
Benelux 195metrictons
Denmark 1metricton
Germany 781metrictons
Fronce 55tnetrictons
Ireland 1metricton
Italy 5metricton
UnitedKingdom 211metrictons;5
(c)forunwroughtmagnesiuminalloy:
Benelux 170metrictons
Denmark 2metrictons
Germany 7720metriotons
France 2metriotons
Italy 64metrictons
UnitedKingdom 40metrictons.

-9-
2.Thesecondtranches,of200metrictons,250metriotonsand
1800metrictonsrespectively ,shallbeheldasCommunityreserves.
Article3
1.IfJCffcormoreofoneofaMemberState'sinitialsharesasspecified
inArticle2(1),orofthatshareminustheportionreturnedtothe
appropriatereservewhereArticle5isapplied,hasbeenusedup,that
MemberStateshallwithoutdelay,bynotifyingtheCommission,drawa
secondshareequalto10$ofitsinitialshare,roundedupwherenecessary
tothenextunit,totheextentpermittedbythe".mountofthereserve,
2.If,afteroneorotherofitsinitialshareshasbeenusedup,$Cf?oor
moreofthesecondsharedrawnbyaMemberStatehasbeenusedup,that
MemberStateshall,inaccordancewiththeconditionsimposedbyparagraph 1,
drawathirdshareequalto5$ofitsinitialshare,roundedupwhere
necessarytothenextunit.
3.If,afteroneorotherofitssecondshareshasbeenusedlip,9°$or
moreofthethirdsharedrawnbyaMemberStatehasbeenusedup,that
MemberStateshall,inaccordancewiththesameconditions,drawafourth
shareequaltothethird.
Thisprocessshallcontinuetoapplyuntilthereservesareusedup.
4.?ywayofderogationfromparagraphs 1to3,aMemberStatemaydraw
shareslowerthanthosefixedinthoseparagraphsiftherearegroundsfor
believingthatthosefixedmaynotbeusedup.Itshallinformthe
Commissionofitsreasonsforapplyingthisparagraph.
/

-10-
Article4
Supplementary sharesdrawnpursuanttoArticle3shallbevaliduntil
31December 1975-
Article5
AEombsrStatewhichon15September1975hasnotuseduponeorother
ofitsinitialsharesshallreturntotheappropriate reservenotlater
than10October1975"th®unusedportionexceeding20$oftheinitial
amount.Itmayreturnagreaterportioniftherearegroundsforbelieving
thatitmaynotbeusedup.
MemberStatesshall,notlaterthan10October1975»notifytheCommission
ofthetotalquantitiesofthesaidgoodsimporteduptoandincluding
15September1975andchargedagainsttheCommunityquotaandanyquantities
oftheinitialsharesreturnedtothereserves.
Article6
TheCommissionshallkeepanaccountofthesharesopenedbytheMember
StatespursuanttoArticles2and3andshall?assoonasithasbeen
notified,informeachStateoftheextenttowhichthereservehasbeen
usedup.
ItshallinformtheMemberStates,notlaterthan15October1975,ofthe
amountstillinreserveafteramountshavebeenreturnedtheretopursuant
toArticle5.

-1T-
Itshallensurethatthedrawingwhichusesupareserveislimitedto
thebalanceavailableandtothis-endshallspecifytheamountthereof
totheMemberStatemakingthelastdrawing.
Article7
1.KemberStatesshalltake-allmeasuresnecessarytoensurethat
supplementary sharesdrawnpursuanttoArticle3areopenedinsucha
waythatimportsmaybechargedwithoutinterruption againsttheir
accumulated sharesintheCommunityquota,
2,MemberStatesshallensurethatimportersofthesaidgoodsestablished
intheirterritoryhavefreeaccesstothesharesallocatedtothem.
/
3.TheextenttowhichaMemberStatehasusedupitssharesshallbe
determinedonthebasisofthequantitiesofthesaidgoodsenteredfor
homeuse.
Article8
MemberStatesshallinformtheCommissionatregularintervalsof
importsactuallychargedagainsttheirshares,'
Article9
MemberStatesandtheCommissionshallcooperatecloselyinordertoensure
thatthisRegulationisobserved.
Article10
ThisRegulationshallenterintoforceon1January1975-
ThisRegulationshallbebindinginitsentiretyanddirectly
applicableinallKemberStates,
FortheCouncil
DoneatBrussels, .ThePresident