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DOCUMENTS "COM"
COM(76)29
Vol.1976/0014

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76 )29final .
Brussels ,2February 1976
Draft ofanewAgreement
ontheestablishment ofthrough international railway -
tariffs forthecarriage ofcoal and .steel (presented
"bytheCommission totherepresentatives oftheGovern­
ments oftheMember State oftheECSC meeting inthe
Council .)
COM(76)29final

REPORT
Revision oftheAgreement of21March 1955 on "the
establishment ofthrough international railway tariffs
forthecarriage ofcoal andsteel
I.BACKG30UND
.... .. . 2
1. Atitsmeeting on22November 1973 ,theCouncil took note of
theNetherlands Delegation 'srequest dated 11October 1973"' tohave
theAgreement of21March 1955 revised inkeeping with thepresent
situation inthis field andtheenlarged Community .Itinstructed the
Committee ofPermanent Representatives to'examine this request .
Inconnection vri'th this ,theCouncil took note ofastatement
bytheCommission that itwasprepared towork outthenecessary
amendments inconjunction with thenine Governments .These amendments
hadtocomply inparticular with Article 70oftheECSC Treaty and
Article 10ofthe Convention onthe Transitional Provisions .
/
•/•
OJECSC No9of19April 1955 ,p.701 .
OJECSC No10of30Aprii 1956 ,p.130 .
OJECNo22of9April 1959 »P«431 .
OJEGNoL347of17December 1973 ,p.64.
T/643I/73TRANS .
3r/2804/73(TRAMS 121)(SID81)andR/2532/73(TRANS 93)(SID66).

2, On16January 1974 »thedelegations ofthe Member States during
themeeting oftheWorking Party onTransport Questions asked the
Commission ,working with therail experts forECSC tariff No9001 ,to
take stock oftheproblems inconnection with theAgreement andtowork
outproposals fortechnical solutions compatible with Article 70ofthe
ECSC Treaty andArticle 10oftheConvention ontheTransitional Provisions ,
Subsequently the .Commission wasasked tosubmit areport onthis work ,
and,ifappropriate ,adraft amendment totheAgreement ,tothedelegations
meeting intheWorking Party , i
3, Initially therail experts forECSC tariff No9001 met several
times and inthepresence ofCommission representatives carried out a
thorough examination ofthemain provisions oftheAgreement inthelight
ofthechanges since 1955 in .theeconomics oftheinternational carriage
ofcoal andsteel .They endeavoured tofind technical solutions compatible
with Community lawwith aview to .bringing theprovisions oftheAgreement
of21IJarch 1955 into line with theeconomic interest# oftherailways
without disturbing thetransport markets inquestion .Oncompletion of
their work they announced their findings concerning themain problems
examined inaletter sent to'theCommission byFrench Railways onbehalf
ofalltherailway undertakings concerned intheEuropean Communities ,
(letter of24.12.1974 ) • •
Later theCommission drew up,onthebasis ofthis work ,a
preliminary draft revised Agreement which wasfinalised atameeting
with therail experts fortariff No9001 ECSC on7October 1975 «T*1®
full text ofthedraft newAgreement ,onthrough international railway
tariffs forthecarriage ofcoal andsteel isgiven inAnnex 7.tothis
report ,
./.
1R/183/74(TRANS 9)(SE>6).

-3- "11/631
II.G3IERAL CONSIDERATIONS CONCERNING TIEREVISION OFTHS1955AGREEIENT
4*The1955Agreement wasadoptedtoimplement thefirstand
secondparagraphs ofArticle 70oftheECSCTreatyandArticle 10
oftheConvention ontheTransitional Provisions .Thecommon
.systemofrailwaytariffsfortheinternational oarriageofcoal
andsteelwhichtheGovernments decided oncontinues toensure
compliance withtheTreaty'sbanondiscrimination ,andhence
withthebasicruleswhicharetheveryfoundation ofthecommon
marketinooalandsteel.Therailways toomustberequired to
conforminthiswayinsofarastransport hasbeenincludedin
theplannedlevelofintegration .Thisisnot,however,apublic
serviceobligation eligibleforcompensation .Therailways must
adheretothebasicrulesfordoingbusinessinamarketeconomy
injustthesamewayasotherparticipants inthemarket.
Furthermore ,thetariffarrangements underthe1955Agreement
haveservedtherailways well.Tobesure,theAgreement wasnot
thefirstexampleofinternational railwaytariffs,eitherasa
concepto^E.i)odl.However,itwasintheforefront ofprogress
andbrokenewgroundinproviding thefirstoccasion whensix,
andnoweight,paetionalrailwayorganizations established and
operated commontariffarrangements inthisway.
1*
Theexperiment willcontinue toyieldresultsirrespective
ofpotential technical improvements andregardless oftherailways'
futureplaceintheCommunity'ssocialandeconomicstructure.
■/.

Transport usersalsofeltthatthisAgreement andthetariff
arrangements involved (3CSCtariff..No,.9001).represented progress •••
towardsawayofregulating rateswhosemainfeatures shouldbecome
general,transcending nationalinterests, v
ThevalueoftheAgreement anditsprovisions onrateshasnot
beendiminished.by the'factthatthevolumeoftrafficcarried'under
thetermsofthesetariffshas'droppedovertheyears.Todaybarely
50°/oofinternational coalandsteeltrafficisstillcarriedunder
thetermsofECSCtariffNo'9001»asaresultofmajorstructural ,
qualitative andquantitative changesinthedemand'fortransport
(steelworks havebeenrelocated andthecoalindustryhasdeclined )
andthesupplyoftransport (increased -competition fromroadtraffic
andregionsservedbyinlandwaterways).However,thishasnot •
lessened theimportance oftheAgreement andofthetariffarrangements ,
whichremainthebasi3forcompiling chargesandapportioning income
fromthembetweentheRailways concerned *
5.•■The'following ,mainlyeconomicreasonsexplain why,inspite
ofthesefavourable -comments,itisbothworthwhile andnecessary to
revisetheAgreement : ■<■'•
-Notallofitsimplicit assumptions regarding thedevelopment of
international traffichavebeencompletely borneout.ForeJca/nple
progress towardstrueeconomicunionhasfallenfarshortoforiginally
expectations »Asoneofthemostimportant promises ofthe
Agreement ,namelythatinternational trafficwithinthoCommunity
wouldeventually bevirtually identical todomestidtraffic,
hasnotyetbeenputintopractice ,itisinevitable thatthe
differences betweenthetransport andoperating conditions of
thevariousrailways,andinparticular theirdifferent cost
structures ,arereflectedintherulesforthecompilation of
transport rates.
•/•

-5- 7ΧΙ/6·Γ·1.7>
-The1955 Agreement wasdrawn uponthebasis oftheinternational
traffic carried "bycontinental railways .Theenlargement ofthe
Community has tsince 1973 *ledtoanextension ofthese tariffs to
carriage bytrain ferry .Thetext ofthenewAgreement introduces
more specific provisions tothepresent arrangements .
-Thepresent Agreement bears thestamp oftheGovernments' andthe
Railways' ideas ontariff policy inthe1950s *Some oftheradically
different ideas that have emerged since then have already altered
themanagement policy ofcertain railway networks .Thetext ofthe
newAgreement isdesigned tomake allowance •for thetrend tot-sards
therailways having greater independence andresponsibility in
compiling transport rates .
TheCommission wishes toemphasize this aspect ,particularly
asitsrecent proposals for theorganization ofgoods transport
markets within theCommunity arebased ontheprinciple that ,as
regards transport rates andconditions ,theRailways' international
operations inthecommercial sector ,should break even ,
6, When theAgreement isrevised these economic andpolitical
considerations concerning transport must bereconciled with the
existing obligations deriving from the3CSC Treaty ,This canbe
done with respect totheTreaty andwithout restricting therailways'
freedom ofaction incommercial matters more than isprovided for
intheTreaty ,
,7. This isthesense ofthemajor changes proposed inthe
revised agreement .
Ά

Thealight drop intheportion oftheterminal' charges tobededucted .
aslaid down intheAgreement is -designed toincrease therailways' ,-
income *This change take 3account ofcrossing costs frontiers and
can "bejustified "bythespecial features ofsuch operations .Moreover ,
itwill simply make aquantitative change inthepresent rules *The
underlying principle ofthepresent tariff will not "beaffected and
!
there -will still beanon-discriminatory tariff system .which oompliea
with theTreaty . ?
Therevised text is"also designed toauthorize minimum charges .•The
Commission considers them tobeeconomically justified andcommercially
sensible measures which areintheinterest oftherailways .They
arepermissible aslong aswhen they arelevied the .rule ofnon- ,
discrimination isobserved .
Itisstill necessary forEC3G through tariffs tobecontinuously
degressive *with total distance ,theCommission considers itneither
economically justified northebest solution legally forcoefficients
ofdegressivity tobelaid' down intheAgreement .Therailways can ..
betrusted tousethis freedom wisely tofind solutions which comply
with theTreaty .Community arbitration iaprovided forinthe
unlikely event ofdifficulties arising inthis connection (Article 7)»
Through tariffs nolonger have thebinding force that they hadin
1955 ;since 1963 theRailways have been allowed ,when talcing' into
account themarket situation ,toconclude special agreements tocharge
customers lower rates ,pursuant toArticle 9(3)oftheCIH.This
isstill possible under therevised .Agreement .Accordingly ,the
tariffs could also provide abasis forthenegotiation ofspecial
rates between carriers andusers ;henoe thoy areconsistent with
theCommission 'sproposals forthefuture operation oftransport
markets .

-7- Vïl/oSl/7-
-However ,under Article 70(3)oftheECSC Treaty ,authorized
transport rates which depart from thetariffs must "be
published .This obligation cannot bequestioned .TheCommission
takes theview that practical necessities maydetermine the
appropriate ways inwhich toapply this provision .Experience
hasshown that itisenough forthenatural transparency which *
exists inallthemarkets tobesupplemented byproviding
participants inthemarket with information onexceptionally
large reductions inthepublished tariffs ,■Tothis end
therevised Agreement allows forthe23$spread adopted in
Community law.Information canbesupplied bytheRailways
themselves ,following general Commission practice .
s
During preparatory work ontherevision ,German Railways ■
came outagainst including rules onpublication inthenew
Agreement .They felt that this would prejudice theinterests of
therailways vis-a-vistheir competitors ,inparticular the
inland waterwrys ,Danish Railways expressed similar ,though loss
strong reservations ,
8, Theoverall economic impact ofrevision cannot be
quantified exactly .Itshould beemphasized that although the'
.Agreement lays down anumber ofrules onthecompilation of
rates ,itallows therailways tofixthelevel oftheelements
which determine them ,
Thecomparisons ofrates (JaJble ) made bytherailways
onthebasis' ofthetariffs applying in"August 1974 >give a
rough idea ofthesize ofincreases that mayresult .

-8-ι/7
Fortherest ,itisclear that ,asatpresent ,thetransport
rate ineach particular case will infuture bedetermined bymarket
forces ifthetariff system isnotsufficiently well attuned tothe
market situation * .
III.PARTICULAR CONSIDERATIONS . ,
9. •These considerations relate only totheproposed amendments
tothepresent te;rt oftheAgreement of21Narch 1955 assupplemented
andamended "bythethree Supplementary Agreements of1Ifey1956 ,1May
1959and1March 1974 ^"•
10. General enacting terms (newversion )
Itisproposed that allthetitles andheadings inthe
Agreement should bedeleted ,leaving only acontinuous numbering .
Inaddition ,both citations have been slightly amendod .
11» Article 1(newversion )
Inthedefinitions theHigh Authority ant3,the Special Council
ofMinisters have been replaced bytheCommission andtheCouncil of
theEuropean Communities totake into account thechanges resulting
from themerger oftheexecutives .
Therailways arenowdescribed asundertakings andnotadmini­
strations ,inaccordance with theterminology nowinuse.
Theminimum charge isnowdefined separately ;itwaspreviously
included inthedefinition oftheterminal charge (seeparagraph 14.3
below ).
Other definitions have been expanded toinclude seacrossings
bytrain ferry .
♦/.
Fortherelevant OJreferences seefootnote 1onpage 1ofthis
report ..

Article 2(newversion )
Thi3 Article specifies that thetariffs haven been drawn upbyagree­
ment between therailway undertakings anddefines thescope of
through international tariffs ,. ,
(1) Therevised definition inthefirst sentence ofparagraph 1incor­
porates that from Article 2oftheAgreement andthat from Annex . ,
III (Supplementary Agreement of1May195^)anddoes notalter the
present scope oftheAgreement ,
(2). However ,thesecond sentence ofparagraph 1enables theRailways ,
incertain circumstances ,,tobarcertain routes which arein
demand but which are uneconomic for them .For such routes tobe
barred ,theunanimous agreement ofalltheRailways concerned must
beobtained andtheprovisions oftheESCandEC3C Treaties :.observed
ive.no.-discrimination within themeaning ofArticle 70.
"This restriction does not ,however ,affect thefact that ECSC
tariff no,9001 isofgeneral application .
Thetext ofparagraph 2hasnotbeen altered ,
13, Article '3(oldversion )
This Article ,which required theGovernments toseek ways of
reducing andultimately eliminating theparticular .burdens imposed on
international traffic andwasaimed ,chiefly atcustoms formalities ,has
been deleted .This does notmean ,however ,;bhat .allthedifficulties that
arise atfrontiers have been eliminated andthat theCommunity need no
longer concern itself with thepossible facilitation offrontier crossing .
Theproblem nowarises inawider form andneeds tobesolved for
transport asawhole within theframework oftheECSC andEECTreaties .12.
0)
(2)

10-
14. Article 3(newversion )–Article 4(oldversion ) -
14.1 This Article lays down therules -onthecompilation ofinternational
tariffs .Asatpresent ,carriage charges areto .comprise thesum .ofa
terminal charge andadistance charge multiplied "byacoefficient of
degressivity depending onthetotal distance ,•Aninnovation isthe
addition ofacharge fortheseacrossing bytrain ferry ,calculated as
provided forinAnnex I,
14.2 .Theproposed terminal charge (to)consists of2x$(instead of
2x50^)oftheterminal charges oftheimporting country andthe ,exporting
country and5<$>oftheterminal charges ofthetransit country .Atpresent
noterminal charge isincluded fortransit .
This amendment isdesigned totake into account thedifferences
inthecosts involved interminal charges between domestic orinternational
traffic .
According totherailways ,ifonetakes anindex of100forthe
total cost involved interminal charges foraconsignment indomestic
traffic ,thetotal cost inrespect ofthose charges ininternational
traffic –forallnetworks –falls within therange :
66–85 forimports andexports ,and ■>,"
36-70 fortransit traffic .
In1<?55 1"theGovernments oftheMember States andtheHigh
Authority thought that theexisting differences would -disappear fairly
swiftly asaresult ofeconomic integration .;IntheAgreement itself
(Article 3)they committed themselves toencouraging this trend inseeking
"with thecollaboration andassistance oftheHighAuthority ,measures for '
reducing ,with aview totheir ultimate elimination ,theparticular burdens
imposed oninternational coal and steel traffic which affect transport
costs ".Inspite ofsome simplification offrontier customs procedures ,the
stage ofeconomic integration atwhich nodifferences exist between

-11- VII/681/75-E
international and domestic traffic hasnotyetbeen reached .Moreover ,
itcan "beseen that despite theprogress made bytheRailways concerning
theinternational carriage ofgoods (operating conditions andinparti­
cular theinterpenetration ofrailway networks )there arestill differences
between international and domestic traffic .
14.3 Paragraph 4ofArticle 3introduces anewprovision for
calculating theminimum charge forinternational traffic where arailway
applies aminimum charge forinternal traffic .This provision embodies ,
intheAgreement ,theprinciple ofminimum charges with theproviso that
forinternational traffic they aretobecalculated having regard tothe
reduced terminal charge referred toinArticle 3(2).
Inthepast ,because ofinadequate distance charges insome
cases ,ithas bee'n found that theterminal charge isnotalways high
enough tobring short-haul charges toasatisfactory level .Asaresult ,
therailways have hadtointroduce minimum charges -toanincreasing
extent inrecent years .
Thequestion ofminimum charges ,which hasprovoked many disputes
inthepast ,must infuture ,beseen aspart ofapolicy involving the
compilation ofcharges byindependent andresponsible undert akings .
15• Article 5(oldversion )
This Article ,which introduced one-year transitional provisions ,
has been deleted .

16 Articlej(new version )
This Article ,replaces Articles 6–10 of"Title IV,Coefficients
ofdegressivity ".
16.1 ,Itprovides fortherailways ,"bycommon agreement andtalcing into
account their commercial interests ,toagree onbrackets forthecoeffici­
ents ofdegressivity .These brackets maybealtered subject only tothe
unanimous agreement ofalltheMember States' Railways .Consequently ,they
donotneed tobepublished asanannex totheAgreement .
Ontheother hand ,thelimiting coefficients ofdegressivity fixed
inthe1955 Agreement have been retained .
Twoclasses ofbracket forthecoefficients ofdegressivity from
101kmupwards ,areproposed ,oneforfuels andores ,theother forscrap
andother products ,asindicated below ,butthis is .v
unlikely todisturb thepresent tariff situation onthevarious markets .
Tobesure ,itisabackward step compared with theharmonization called
forinParagraph 10sub-paragraphs 2and 3oftheConvention onthe
Transitional Provisions .Thedifferences which still exist between the .
various railway undertakings +costs have prevented theapplication ofthis
provision .Moreover ,tariff policy itself isnolonger postulated onthe
same principle .Lastly ,theeconomic problems of1955 »mainly cpncerning
« – «
thecarriage ofcoal andsteel between Germany andFrance ,were solved
with thechange jintheposition regarding competition especially asa
result ofthe canalization oftheMoselle .

-13-
16.2 Toimplement therevisedAgreement ,therailways haveagreed
tointroduce thefollo'-jing brackets forthwith :
(a)Solidmineralfuelsandores
Upperlimit(minimumdegressivity ):
–upto200km
–201-270 km
–271kmandoverScaleIIasatpresent ;
ScaleVIIIasatpresent;\
coefficient of0.8247asatpresent
Lowerlimit(maximumdegressivity )Î
-upto250km :Scalela(obtained "byapplying
theformula
f(d)=l/~(l-a2)(1-W
whereais1/6)
–25Ikmandover :ScaleVa(obtained "byprogressivelydecreasing-by2.5$to26fo-
thepresentcoefficients in
ScaleV).
Limiting coefficient :0.70asatpresent.
(b)Scrapandotherironandsteelproducts
Uppcrlimit(minimumdegressivity )
–upto200km :ScaleIVasatpresent ;
-201kmandover :ScaleXIIIasatpresent.
-lowerlinit(maximumdegressivity )
upto200km :Scale .IIasatpresent;
1
201kmandover :ScaleVIIIasatpresent
-limitingcoefficients :
.scrap,pigironandcrudesteel :0.75asatpresent
.semi-finished products ,specialproducts :0.80asatpresent
.finishedproducts :O.85asatpresent

-14
17.Article 5(newversion )
This Article replaces thepresent Articles 11and 12.Itsprovisions
incorporate theessence ofthepresent Article 12anddo -notmake any
fundamental changes . " -' ■•
18»Airticle 6(newversion )
Paragraph 1corresponds tothebeginning ofthepresent Article 13.
νκ
Paragraph 2aims atensuring consistent andadequate market trans­
'ι
parenoy ".sinaccordance with Recommendation No.l~ol ,oftheECSC High
Authority of1-March 1961 ,andthemeasures taken bytheGovernments to
implement it. .
19»Article 7(newversion )
This isanewArticle .Itmakes provision forCommunity arbitration .
Disputes would bereferred first totheCommission ,andsubsequently ,if
necessary ,totheCouncil inexceptional cases where therailways cannot
solve their tariff problems bythemselves ,particularly ifagreemont is
notreached inthenegotiations -toalter thebracket spreads ofcoefficients
ofdegressivity .
20.jrticle' 8(newversion )
This provision defines ,fortraffic with Great Britain ,the *
conditions ofapplication oftherules ofthis Agreement .,-..

21.Articles 5-12 (newversion )
ii i■!iri■■i■ ni■ '
The3e Articles ,tohich deal with thesettlement ofdifferences by/ '
■Jf' "Court ofJustice of*;heEuropean Communities andthefinal provisions/arefundamentally thesame theprevious Articles _16–19.The v
Commission considers that tofnalce thesystem more flexible ,revision may
"bebegun without anyprior condition orstating ofgrounds*' ■
22.Annesil (newversion ):
Theprevious Annexes Iand13^concerning special arrangements and
thescales forthedifferent coefficients ofdegressivity have been
deleted E.Sthey arenolonger needed .Theprovisions ofAnnex IIIhave
been incorporated inArticle 2oftherevised Agreement .
ThenewAnnex Ilays down thespecial rules concerning charges
forthecarriage ofcoal and steel bytrain ferry .
These rules ,which were unnecessary when theAgreement of21March
1955 wasdrawn up–asthere wasvirtually notrain-ferry traffic between
theoriginal sixMember .States -areessential intheenlarged Community .
Butsince through train –ferry traffic with asingle consignment note
comes under ECSC rules ,some ofthedefinitions andrules inArticles 1.
and 3need tobeamplified .Article 3refers toAnnex Iforthecharges
forcarriage .bytrain ferry .This Annex lays down thespecial rules
adopted forcalculating thesea-crossing distance forcharging purposes
andtheconditions forapplying special charges 'for this distance .'The
rules arethose inforce atpresent forcarriage bytrain ferry ingeneral
and ,asfrom 1April 1975 »"toandfrom Great Britain inparticular .

TABLE
Sxamplss ofroutesproviding acomparison between
carriage chargesunderthepresent -Agreement .and
thoseresulting fromtherevisedagreement
(August1974tariffs)
Distance
knPRESENT AGREEMENT REVISED AGREEMENT '
Germany/France
Tariff1301 KVI
Hhexnkamp/Bully-Grenay :DB109
SNCB
SNCF
(ooal)171
116
396Unscheduled CT
FF15.88
"18.16
"11.68"20"W|+12^
"13-75(17
"45.72s55xa=3rsi;
+5*53.12.10%
Germoa-iy/France
Tariff1333-25 .WW
Nounkirchen (Saar)/Lyons:DB
SNCF
(wirerod)28
460
488Unscheduled CT
FF11.64
"43.20
4.84**\+£%l
W/CQ?\+2.72(6.W045.92
gO.OS
+5.249.5655
LvDcembourg /Bslgi^im ■
Tariff39001 '
Esch-Bolval/Antwerp
(finishedproducts)'NW
!CFL .20
SNCB262
282SW
BF107
"343
"450BF131-
"354
(I
+135
35:(+24.
(22.43/Î
(+11;
(3.2l£
Netherlands/Germany
Tariff9001:
Beverwijk/Fallersleben
(finishedproducts)NW
NS
DB200
281
481PI24.90
39.80
64.70■Plr
"4IsM"67.793.37/0>7.79
3.09
Denmark/Germany
Tariff9001
Copenhagen-Dortmund /
Sving
(scrap)NW
DSB
DB210
42|70SSW
Dkr25.5(1)
"122.2Dkr26.5,+3*92^
(x
w125.3(*L"151.8*2«53/» "147.7 "151.0
(1)Temporary measure +4.1 -2..
2tonc/3

Distance PPJ2S3NT AGRE3M1ÏIT R3VISSD AGREEIENT
km
Belgium/ltaly
Tariff9001
Liege/TurinNM
SiiCB172 BPSH
221. BP232.-(+11
(4.98fo
SïïCP714tl533.69 535.98(+52.29
(9.80$
(scrap) PS101
987Tl
II80.58
835.27ff
II
+39.58
907.56
72.291+9
(11.17$>
8.65$
Belgium/Italy-
Tariff9001
Ghent-Sidmar/
LilanParm
SLîCB•–
281 BPS!f
367.-• BP378.-(+11
(3.-*
SNCF714It6l6,69ti668,98(+52.29
(8.48/o
(finishedproducts )PS237
1232II
~T184.32
168.01II
"~T
+^2_3JL32
240.30
72.29(+9
(•4.88/0
6.19/0
Prance/Belgium
Tariff3232 Fi Scheduled CT
(+0.60
(20.48$SNCP 54 PP2.93 PP3.53
SNCB 172II10*24M11.71{+1.47
(14.36fo
(ironore) 226If13.17 15-24
+2.0715.72/o
1TB:Ptf=privately-owned wagon(i.e.not.belonging torailwaynetwork)
CT=3completetrain-load
U¥»networkwagon(i.e.belongingtorailwaynetwork)
SWasinglewagon-load

BRAFf
'*v ••* ■*; •»* AOREEt-IElIx .•>-.v ...... ... ..» < .
■- •■■■.« ,-fc..-r v.on .through international , .,, ,....... T..(
railway tariffs forthecarriage
ofcoal and steel 'v
The ..Representatives oftheGovernments oftheMember States ofthe
European Coal andSteel Community ,meeting inCouncil ,
Having regard totheTreaty establishing theEuropean
Coal andSteel Community (hereinafter called the "Traa,ty "),andin
particular Article JOthereof ,'■
Having regard totheConvention ontheTransitional Provisions
(hereinafter called the "Convention "),and .inparticular sub-paragraph
(2)ofthethird paragraph ,thereof ,
1 ' • ■ ,< >. *. 1 ..
HAVE AGREM )ASPOLLOVFS : ,. ■•
Article 1
Inthis' Agreement ;
"Commission "means
i ■ 'vT-r
-theCommission oftheEuropean Communities ;
"Council "means
-theCouncil oftheEuropean Communities :
"Coal and Steel "means
–theproducts listed inAnnexes IandIIItotheTreaty ;■

"Railways "means
-therailway undertakings running themam networks oftheMember
States operating international traffic andtherailway undertakings
participating inthetariffs ofthose vtnder takings ;
"General internal tariffs "means
-thetariffs applicable tointernal traffic inlike manner toall
like users inone ofthoMember States ;
"Through international tariffs "pieans ...
-thegeneral rates andconditions published forandapplicable to
thecarriage ofcoal andsteel under asingle contract ofcarriage
,onthebasis oftheInternational Convention concerning the .
Carriage ofGoods byRail (CIM);
"Transit point "means
–thefrontier point orthefrontier etationro * *ro;: -c.
the transit station asdetermined inaccordance with Article 10of
theCIM ;
"Total .journey "means
–thejourney from theforwarding point tothepoint ofdestination
ofaconsignment including ,where appropriate ,thejourney onthe
train ferry routes getoutinthelist provided .fordnArti'Cle 5
,ofthe CIM ;
"Section ofthe .journey "means
–anyonepart ofthetotal journey carried outontherailway lines
oftheforwarding country ,country ofdestination ortransit country
including ,where appropriate ,thejourney bytrain ferry ;
"Sectional distanc e"means
–thelength ofasection ofthejourney aslaid down inthetariffs
oftherailways concerned fortheir internal traffic ;

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"Totaldistance "means •'-, •»-,
theSlimoftliesectional distances ;
"Terminal charge"means'
–theratepertonneobtained "byprojecting thescaleofcharges
backtoadistance of0km:
"Distance charge"means
»-thecarriage chargelesstheterminal charge; ^
"Minimumcharge"means
–theminimumcarriage chargeleviedirrespective ofthedistance ;
•Œegressivity "means
–thedecreaseinthedistancechargepertonne/kilometre asthe
distance increases !
"Basicdistance charge"means
–thedistancechargepertonne/kilometre uptothepointfromwliich-
.degressivity beginstoqperatej •'*•
'
"Coefficient ofdegressivity "means ,
-thefigureobtainedbydividingthedistancechargepei-tonne/
kilometre foragivendistance bythebasicdistance charge.

Article 2
(1) Thethrough international tariffs shall bedrawn upormodified
byrv-'reernent between therailway undertakings .
(2) They shall apply onallroutes within theEuropean Communities
between Member States ,and .
«• toandfrom third States ,where theconsignments inquestion are
carried directly over Connecting sections ,ofth6railways
oftwo ormore Member States *
Therailways may ,bycommon agreement andincompliance with the
provisions oftheTreaties ,establishing theEuropean -Coal .and
Steel Community and theEuropean .Economic Community ,decide
not toapply through international tariffs oiicertain
itineraries ,where this iswarranted by .thecommercial
interests ofailtherailways concerned .
(3) Thedetailed description oftheproducts covered bythrough inter­
national tariffs .shall begiven inauniform nomenclature .
Article 3
(1) Acarriage charge under through international tariffs shall
comprise thesumofaterminal charge andadistance charge and ,where
appropriate ,acharge foraseacrossing bytrain ferry ,calculated in
accordance with theprovisions ofAnnex I.
(2) Theterminal charge shall consist ofthesumof
- 70%oftheterminal charge under theinternal tariff inthe
forwarding country ;
- "JO/ooftheterminal charge under theinternal tariff inthe
country ofdestination ;
- 5Ofooftheterminal charge under theinternal tariffs inthe
transit countries .
These charges shall accrue totherailways concerned .

(3) Thedistance charge shall comprise thesumofthesectional charges
oftheparticipating railways .Thesectional charge foreach railway shall
"beobtained bymultiplying itsbasic distance charge bythesectional
distance andbythecoefficient ofdegressivity ofthegeneral internal
tariffs corresponding tothetotal distance ofcarriage excluding ,where
appropriate ,thedistance oftheseacrossing bytrain ferry where itis
disregarded pursuant toAnnex .1. ■
(4)"V'here arailway applies aminimum charge forinternal traffic ,
such charge shall becalculated forinternational traffic bytaking account ofthereduced terminrl charge aeindicated in
paragraph (2)above .
■" !' Article 4 ^ ■ ■,V
(1) Forthepurpose ofcalculating thedegressivity ofthrough
international tariffs ,therailways shall ,bycommon agreement andtaking
into account their commercial interests ,agree onbrackets forthecoeffi­
cients ofdegressivity oftheir general internal tariffs .These brackets
maybevaried according tothenature ofthegoods orthecategory of
traffic .
(2) Thecoefficient ofdegressivity forthrough international tariffs
shall becalculated fordistances uptothemaximum possible within the
Community .Ifacoefficient ofdegressivity ofageneral internal tariff
islower than therelevant coefficient laid down below ,this limiting
coefficient shall apply when calculating thesectional charge .The
limiting coefficients ofdegressivity shall befixed asfollows :
Fuels ,ores 0.70
Scrap ,pigiron andcrude steel 0.75
Semi–finished products andspecial
products 0.80
Finished products O.85
However ,thesectional charge maynotinanycircumstances exceed the .
internal distance charge foradistance equal tothesectional distance .

(3) -Therailways shall inform theundertaking administering thethrough
international tariffs ofthecoefficients ofdegressivity oftheir general
internal t'ariffs .
Article 5
/
(1) Thethrough international tariffs shall enable carriage charges
from and toallstations open for coal and steel traffic tobecalculated .
(2) -i'heentry ,into force ofanyamendments tothrough ,international
tariffs shall take place inaccordance with theprovisions governing
theinternational carriage ofgoods byrail ..
Article 6
(1) Thethrough international tariffs shall bepublished .
(2) Charges more than 23%lower than thepublished tariffs referred toin
paragraph (l)above ,andtherelevant conditions ofcarriage shall becom­
municated bytherailways ,onrequest ,tocoal orsteel producers ,traders or
consumers .Tothis end ,therailways concerned shall publish intheir
tariff lists theroutes andgoods forwhich such charges have been agreed .
Article 7
(!) Ifregotiations between therailway undertakings forthe
establishment ortheamendment ofthethrough international tariffs
referred toinArticle 2donotresult inagreement and ,in
particular ,ifagreement isnotreached onthebrackets for the
coofficients ordegressivity referred toinArticle 4,theraylways
V
concerned shall refer the dispute tothe Commission .

-.7
(2) Y/ithin onemonth ofthedate ofthereference ofthedispute
as 1specified inparagraph (1)above ,andafter consulting the
Committee referred :toinArticle 6(1)('a)ofRegulation (EEC!)
No rtheCommission shall takes .-adecision Concerning the
tariff measure inquestion .TheCommission shall communicate its
decision totherailway undertakings concerned and totheKember
States andshall publish itintheOfficial Journal oftheEuropean
Communities , .. ■-
(3) TheCommission ^decision shall take effect onemonth after therailway
undertakings have "been notified unless aIlember :State refers thequestion to
theCouncil within thesaid period * ••Inthis case theCouncil shall
immediately inform therailway undertakings concerned and ,acting
byaqualified majority ,shall take adecision within onemonth ,whieJ
itshf-21 communicate totherailway undertakings concerned andshall
publish intheOfficial Journal oftheEuropean Communities .
Articls 0 -
Aslong .astheBritish Railways Board does notapply general internal
goods tariffs ,therules ofthis Agreement shall beapplied byanalogy
forthepurpose ofcalculating thesectional charge inGreat Britain
inaccordance with through international tariffs .
Article 9
TAe Court ofJustice oftheEuropean Communities shall have
jurisdiction ,undqr theconditions laid down inArticle 89oftheTreaty ,
todecide anydispute between Member States astotheinterpretation or
application ofthis Agreement ,
*Regulation concerning asystem forobserving themarkets forthe
carriage ofgoods byrail ,road andinland waterway between theMember
States ,
>

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Article 10
Attherequest oftheGovernment ofanyMember Stance' .
oroftheCommission ,ameeting inCouncil oftheGovernments ,with the
participation oftheCommission ,shall beconvened todecide onanyamend­
ments tothis Agreement .
Article 11
Itishereby recognised that bythis Agreement ,theGovernments
oftheMember States have undertaken only those obligations which are
within thescope oftheTreaty andoftheConvention andwhich have as
their purpose theimplementation ofthose instruments .
Article 12
1. Thetext ofthis Agreement ,asrecorded intheminutes ofthe
proceedings oftheCouncil ,shall bepublished intheOfficial Journal
ofuheEuropean Communities .
2. This Agreement shall enter into force tendays after publication .
TheAgroement of21March 1955 (l)and -thethree Supplementary
Agreements of1Kay 195"$ (2),1May1959 (3)and1March 1974 (4)shall
expire onthat date .
(1)OJECSC No.9of19.4.1955
(2)OJECSC No.10of30.4.1956
(3)OJECNo.22of9.4.1959
(4)OJECNo.L347 of17.12.1973

ahnek
totheAgreement of onthroughinternational
railwaytariffsforthecarriage ofcoalandsteel
SPECIAL RULESCONCERNING CHARGES FORTHECARRIAGE OP
COALANDSTEELBYTRAINPERRY
-Thefollovring provisions shallapplytothecarriage ofcoaland
steel "bytrainferrywithaCIMthroughconsignment note:
1.Trainferrywithinanetwork
–thesear-crossing distanceforcharging purposesshallhe
includedinthesectional distance ofthenetworkconcerned ;
–thesectional chargeofthisnetworkshallhetheproductof
itsbasicdistance charge,thesectional distance asdefined
aboveandthecoefficient ofdegressivity resulting from
theprovisions ofArticle 4oftheAgreement ;
–asurcharge maybeimposedwhereappropriate .

-ΙΟ-
Ι
2, Train ferry linking two networks
Thsnetworks inquestion mayadopt oneorother ofthefollowing
rules :
(a) thesea-crossing distanpe forcharging purposes shall be
included inthe sectional distances oftheadjoining networks ,
onthebasis oftheagreements between thetwonetworks
concerned lathis case charging isgoverned bythe
usual rules ;asurcharge maybeimposed where appropriate ?
(b) thssea-crossing distance shall bedisregarded forthe
purpose ofestablishing thetotal distance ofcarriage ;
- thesectional charges oftheadjoining networks shall be
established according tothe visual rules ;
– aspecial charge fortheseacrossing bytrain ferry shall
beadded tothecarriage charge .