ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)696
Vol.1976/0206

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)696final
Brussels.23December1976
DRAFT
COUNCIL REGULATION (EEC)
opening,allocatingandadministering a
Communitytariffquotaforferro-chromium
containingnotlessthan4%byweightof
carbon,fallingwithinsubheadingex73.02EI
oftheCommonCustomsTariff,andextending
thebenefitofthisquotatocertainimports
offerro-chromium containing aquantityof
between3and4%byweightofcarbon(1977)
(submittedtotheCouncilbytheCommission)
C0M(76)696final

EXPLANATORY MEMORANDUM
1.InresponsetoarequestbytheUnitedKingdom,Commissionstaffre-examined,
atthemeetingoftheEconomicTariffProblemsGroupheldon18November1976,
theproblemofopeningautonomous Communitytariffquotafor1977forcertain
gradesofferro-chromium fallingwithinsubheading ex73.02EIoftheCommon
CustomsTariff.Therequestespecially concerns :
(a)atypeofferro-chromium knownas"chargechrome"containing notless
than6%ofcarbon,whichwouldhavetobedefined;
(b)"high-carbon"ferro-chromium containing notlessthan4%(or3%upto
aspecifiedlimit)ofcarbon.
2.Discussions showed,asin1976,that:
-nodefinition of"chargechrome"basedonthecriteriaofchromium,carbon
andsiliconcontentscouldbeestablished byconsensus amongtheMember
States;
-overallCommunityrequirements ,calculated bythetraditional method
onthebasisoftheforecastscurrentlyavailable,wouldfallbetween
150,000and200,000tonnesfor1977;
-withintheCommunity,andespecially inoneMemberState,theproduction
capacityforhigh-carbon ferro-chromium isnotfullyutilized;
-thefactthattheuseof"chargechrome"inCommunityindustriesis
offairlyrecentdatemakesitimpossibletoestimatewithsufficient
accuracytherequirements oftheCommunityorofeachMemberState
forimportsofthisproductfromthirdcountries;
-theuncertainty whichovershadows varioussectorsoftheeconomy
asaresultoftheworldcrisis,theuncertainty duetotheabsence
ofanacceptabledefinitionoffirst-grade ferro-chromium andthe
existence r>*fnmmunityproduction makeitimpossibletobesufficiently
accurateinregardtoCommunityrequirements forsecond-grade ferro­
chromium.
ItisforthesereasonsthattheCommissionproposestoadhereto
thesolutionalreadyadoptedinpreviousyearsofopeningasingle
tariffquotacoveringthetwogradesofferro-chromium concernedand
settingitsvolumeatthesameprovisional levelof52,000tonnesasin
1976,subjecttoreviewduringthequotaperiodassoonasmoreaccurate
forecestsarereceived.Itisalsoproposedthatwithinthisquotathe
customstariffdutybetotallysuspended.
•η·/β··

Inaccordancewiththepracticeusuallyadoptedincasesofthekind,the
proposedquotavolumehasbeendividedintotwoinstalments,thefirst
instalmentbeingallocatedamongtheMemberStateswiththesameshares
in1976andthesecondconstituting aCommunityreserve.Theconstitution
ofareserveisallthemorejustifiedinthepresentcasebecausethe
quotavolumeisopentorevisionduringtheyearinordertobringit
betterintolinewiththeactualneedsoftheuserindustries.

DRAFT
COUNCILREGULATION (EEC)_
opening,allocatingandadministering aCommunitytariffquotaforferro-chro­
miumcontainingnotlessthan4%byweightofcarbon,fallingwithin
subheadingex73.02EIoftheCommonCustomsTariff,andextendingthe
benefitofthisquotatocertainimportsofferro-chromiurn containingaquan­
tityofbetween3and4%byweightofcarbon(1977)
THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle28
thereof,
HavingregardtothedraftRegulationsubmittedby
theCommission ,
Whereasforferro-chromium containingnotlessthan
4%byweightofcarbon,Communityproductionis,
toavariabledegree,inadequateandproducersare
unabletomeetthetotalrequirements ofconsumer
industriesintheCommunity ;whereasitistherefore
intheCommunity'sinteresttosuspendtotallyin
respectofthismetaltheapplicationoftheCommon
CustomsTariffdutyuntil31December1977,withina
suitabletariffquota;whereasinordernottoraisethe
questionoftheprospectsfordevelopment ofthe
Communityproductionsectorandtakinginto
accounttheuncertainties whichsurroundthedifferent
ferro-alloyconsumptionsectors,itisappropriatetofix
thequotavolumeattheprovisionallevelof52000
metrictons;whereasforthesamereasonsMember
Statesshouldbefreetoauthorizechargestobemade
againstthisvolumeonlysubjecttotheproductsbeing
usedforcertainpurposes;whereasthefixingofthis
amount,relatingtoprudentestimates,doesnot
excludefutureadjustment ;
Whereasrelativelylimitedimportsofferro-chromium
containingaquantityofbetween3and4%by
weightofcarbonareforeseeableforthisquotaperiod;
whereasprovisionshouldbemadeonatemporary
basisfortheextensionofthebenefitofthetariff
quotainquestiontotheseimports,limitingit
howeverto20%ofthequotavolumetakingaccount
oftheexistenceofCommunityproduction;Whereasequalandcontinuousaccesstothequota
shouldbeensuredforallCommunityimportersand
therateofdutyforthetariffquotashouldbeapplied
consistentlytoallimportsuntilthequotais
exhausted;whereasinthelightoftheseprinciples
arrangements fortheutilizationofthetariffquota
basedonanallocationamongMemberStateswould
seemtobeconsistentwiththeCommunitynatureof
thequota;whereas,tocorrespondascloselyas
possibletotheactualtrendinthemarketinthe
productinquestion,allocationofthequotashouldbe
inproportiontotherequirements oftheMember
Statesascalculatedbyreferencetostatisticsofimports
fromthirdcountriesduringarepresentative reference
periodandtotheeconomicoutlookforthequota
periodinquestion;
Whereas,however,sincethequotaisanautonomous
Communitytariffquotaintendedtocoverimport
needsarisingintheCommunity ,itmay,asanexperi­
ment,beallocatedonthebasisofthetemporary
importneedsfromthirdcountriesexpressedbyeach
oftheMemberStates;whereasthissystemofalloca­
tionalsoensurestheuniformapplicationofthe
CommonCustomsTariff:
Whereas,totakeaccountoffutureimporttrendsfor
theproductconcerned,thequotashouldbedivided
intotwotranches,thefirstbeingallocatedamongthe
MemberStatesandthesecondheldasareserveto
coversubsequentlytherequirements ofMemberStates
whichhaveexhaustedtheirinitialsharesandany
addtionalrequirementswhichmightariseintheother
MemberStates;whereas,togiveimportersofthe
MemberStatessomedegreeofcertainty,thefirst
trancheofthetariffquotashouldbefixedatarela­
tivelyhighlevelwhichcouldbe47000metrictons;

-2-
WhereasMemberStatesmayexhausttheirinitial
sharesatdifferentrates;whereastoavoiddisruption
ofsuppliesonthisaccountitshouldbeprovidedthat
anyMemberStatewhichhasalmostusedupitsinitial
shareshoulddrawanadditionalsharefromthe
reserve;whereaseachtimeitsadditionalshareis
almostexhaustedaMemberStateshoulddrawa
furthershare,andsoonasmanytimesasthereserve
allows;whereastheinitialandadditionalshares
shouldbevaliduntiltheendofthequotaperiod;
whereasthisformofadministration requiresclose
collaboration betweentheMemberStatesandthe
CommissionandtheCommissionmustbeinaposi­
tiontokeepaccountoftheextenttowhichthequotas
havebeenusedupandtoinformtheMemberStates
accordingly ;
Whereasifatagivendateinthequotaperioda
considerablequantityofaMemberState'sinitialshare
remainsunuseditisessentialthatsuchStateshould
returnasignificantproportionthereoftothereserve,
inordertopreventapartofaquotafromremaining
unusedinoneMemberStatewhileitcouldbeused.in
others;
Whereas,sincetheKingdomofBelgium,the
KingdomoftheNetherlandsandtheGrandDuchyof
Luxembourgareunitedwithinandjointlyrepresented
bytheBeneluxEconomicUnion,anymeasure
concerningtheadministration ofthesharesallocated
tothatEconomicUnionmaybecarriedoutbyany
oneofitsmembers,
HASADOPTEDTHISREGULATION :
ArticleI
1.FromthedateofentryintoforceofthisRegula­
tionanduntil31December1977atariffquotaof
52000metrictonsshallbeopenedwithinthe
Communityinrespectofferro-chromium containing
notlessthan4%byweightofcarbonfallingwithin
subhheadingex73.02EIoftheCommonCustoms
Tariff.
2.DuringthisperiodtheMemberStatesshallbe
authorizedwithinthe20%limitofthequotasallo­
catedtothemorwhichtheylevyonthereservein
accordancewithArticles2and3tochargeagainstthe
saidtariffquota,importsofferro-chromium
containingaquantityofbetween3and4%by
weightofcarbon.
3.Importationsoftheproductsinquestion,which
alreadybenefitfromexemptionfromcustomsduties
underanotherpreferentialtariffsystem,arenottobe
chargedagainstfhistariffquota.
4.Wi'hinthisquota,thecustomstariffdutyshall
betotailysuspended .5.NewMemberStatesshallapplydutieson
importswithinthisquotacalculatedinaccordance
withtherelevantprovisionsoftheActofAccession.
Article2
1.Afirstinstalmentof47000metrictonsofthis
Communitytariffquotashallbeallocatedamongthe
MemberStates;theshares,which,subjecttoArticle5,
shallbevaliduntil31December1977,shallbeas
follows:
Bénélux
Denmark
Germany
France
Ireland
Italy
UnitedKingdom9500metrictons,
84metrictons,
12714metrictons,
7624metrictons,
8metrictons,
2540metrictons,
14530metrictons.
2.Thesecondinstalmentof5000metrictonsshall
constitutethereserve. >>
Article3
1.AssoonasoneoftheMemberStatesreferredto
inArticle2hasused90%ormoreofitsinitialshare
asfixedinArticle2(1),orofthatshareminusany
portionreturnedtothereservepursuanttoArticle5,
itshallforthwith,bynotifyingtheCommission,draw
asecondshare,totheextentthatthereserveso
permits,equalto10%ofitsinitialshareroundedup
asnecessarytothenextwholenumber.
2.AssoonasoneoftheMemberStates,after
exhaustingitsinitialshare,hasused90%ormoreof
thesecondsharedrawnbyit,thatMemberStateshall
forthwith,inthemannerandtotheextentprovided
inparagraph 1,drawathirdshareequalto5%ofits
initialshare.
3.As'soonasoneoftheMemberStates,afttr
exhaustingitssecondshare,hasused90%ormor'of
thethirdsharedrawnbyit,thatMemberStateshall
forthwithandonthesameconditionsdrawafourth
shareequaltothethird.
Thisprocessshallcontinueuntilthereserveis
exhausted .
Notwithstanding paragraphs 1to3,MemberState
maydrawshareslowerthanthosespecifiedinthose
paragraphsiftherearegroundsforbelievingthat
thosespecifiedmaynotbeusedinfull.AnyMember
Stateapplyingthisparagraphshallinformthe
Commissionofitsgroundsforsodoing.
Article4
Additions!sharesdrawnpursuanttoArticle3shallbe
validuntil31December197%
»

-3-
Article5
TheMemberStatesshallnotlaterthan1October
•J977returntothereservetheunusedportionoftheir
initialsharewhichon15September1977ex
Ceeds^0i"'1'3'amount.Theymayreturnagreater
portioniftherearegroundsforbelievingthatsuch
portionmaynotbeusedinfull.
theNotlaterthan1October197TMemberStates
ishailnotifytheCommissionofthetotalquantitiesof
theproductsinquestionimportedupto'and
includinq15September1977andchargedagainstthe
Communityquotaandofanyportionoftheir'initial
sharesreturnedtothereserve.
Article6
MemberStatesmayrestricttneproductinquestion
whichmaybechargedagainsttheirquotasharesto
productstobeusedforcertainpurposes.
Article7
TheCommissionshallkeepanaccountoftheshares
openedbytheMemberStatespursuanttoArticles2
and3andshall,assoonastheinformationreachesit,
informeachStateoftheextenttowhichthereserve
hasbeenused'up.
1977
Notlaterthan5October itshallinformthe
MemberStatesoftheamountsstillinreserve
followinganyreturnofsharespursuanttoArticle5.
Itshallensurethatwhenanamountexhaustingthe
reserveisdrawn,theamountsodrawndoesnot
exceedthebalanceavailable,andtothisendshall
notifytheamountofthatbalancetotheMemberState
makingthelastdrawing.
ThisRegulationshallbebindinginits
States.
DoneatArticle8
1.TheMemberStatesshalltakeallappropriate
measurestoensurethatadditionalsharesdrawn
pursuanttoArticle3areopenedinsuchawaythat
importations maybechargedwithoutinterruption
againsttheiraccumulatedshareofthetariffquota.
2.TheMemberStatesshallensurethatimporters
oftheproductinquestionestablishedinthei-territo­
rieshavefreeaccesstothesharesallocatedtothem.
3.TheMemberStatesshallchargeimportsofthe
productinquestionagainsttheirsharesasandwhen
theproductisenteredwiththecustomsauthoritiesfor
homeuse.
4.TheextenttowhichtheMemberStateshave
useduptheirsharesshallbedeterminedonthebasis
oftheimportationschargedagainsttheirsharesin
accordancewithparagraph3.
Article9
AttherequestoftheCommission ,theMemberStates
shallinformitofimportschargedagainsttheirshares.
Article10
TheMemberStatesandtheCommissionshallcoop­
eratecloselytoensurethatthisRegulationis
compliedwith.
ArticleÎÎ
ThisRegulationshallenterintoforceonthe.seventh
dayfollowingthatofitspublicationintheOfficial
JournaloftheEuropeanCommunities .
entiretyanddirectlyapplicableinallMember
FortheCouncil
ThePresident