ARCHIVES HISTORIQUES
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COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)572
Vol.1975/0216

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(75)572 final .
Brussels . November 1975
/
Proposal for a
REGULATION (EEC )OFTHE COUNCIL
onthe opening ,allocation and administration ofaCommunity tariff
quota forunwrought magnesium falling within subheading N°77.01 A
ofthe Common Customs Tariff
(submitted totheCouncil bytheCommission )
C0M(75 )572 final .

EXPLANATOÏÏÏ VMONJMM
1.Inanexchange ofletters with theNordic Delegation ,theCommunity has
undertaken toopen atthebeginning ofeach year ,forunwrought magnesium
falling within subheading 77«01 AoftheCommon Customs Tariff ,atariff quota
thevolume ofwhich istobecalculated insuch away that Community requirements
notcovered byCommunity production oftheproduct inquestion maybeimported
duty–free .
This Proposal concerns theopening ,allocation andadministration ofthetariff
quota laid down for1976 .
2.Atitsmeeting of2–3December 1974 »"theCouncil requested theCommission
tocarry outasupplementary study ofthemagnesium market ,andparticularly to
make amore accurate evaluation ofCommunity requirements asregards supplies
from non-member states ,incollaboration with theproducers andconsumers of
this metal .
This study ,isattached tothis note .
Itshould bepointed outbefore going anyfurther that theopinions expressed
bytheproducers andconsumers ofmagensium atthemeeting held on25April 1975
inconnection with this study agree onthefollowing main points :
(a)magnesium consumption fell substantially inthelast fewmonths of1974 and
theearly months of1975 *principally owing tothepresent acute economio
crisis andthedecrease intheuseofmagnesium inthemanufacture ofcar
engines andwheel rims .For 1975 1consumption should reaoh alevel between
40000and44000metrio tons ;
(b)asfortheproduction capacities ofCommunity industries they arecontinually
increasing ,andfor1975 will amount toabout 28000 ;
(c)theextra pure unwrought magnesium production ofwhich wascommenced inone
Member State inorder tosatisfy theCommunity user industries hashad to
beexported tonon-member countries orheld instorage intheabsence of
Community buyers .Production ofthis quality ofmagnesium will thus be
started upinanother Member State ,in1975 tandnotinsignifioant quantities
will beavailable forexport asearly asthebeginning of1976 ;

-2-
(d)inorder "toavoid causing difficulties intheCommunity ^manufftSturing ^
sector ,andtoavoid pouring cold water ontheidea ofextension ofthis
sector ,especial care must beexercised infixing thetariff quota
volumes tobeopened ,whether they befor1975 orf°r1976 ,considering
theuncertainties which surround all sectors oftheeconomy .
3.Asaresult ofthemeeting ofproducers andconsumers ,this question was
dealt with on15May 1975 atameeting ofthe "Tariff Economy "Working
Party with thegovernmental experts concerned ,during which theopinions
delivered bytheproducers andconsumers were confirmed ,atleast insofar
asthelevels which could bereached inCommunity consumption andproduction
during 1975 were concerned .Theparticular care which ought tobeexercised
infixing thetariff quota volumes tobelaid down for thepresent andthe
near future ,was also reaffirmed .
4.Thefixing ofthetariff quota volume inrecent years hasproved tobe
extremely hazardous owing totheimpossibility ofestimating inadvance
Community levels ofconsumption andproduction .Forthese reasons ,thetariff
quota volume opened on 1January each year hasbeen fixed atamoderate level ,
calculated conservatively andnotruled outduring thecourse oftheyear
adjustments based onmore accurate ■data and estimates .Atthepresent time
thesituation isunchanged because production andconsumption forecasts
cannot yetbeputforward ,andwill notbeavailable until 1976 .
This isthereason why ,inthecase ofthetariff quota tobeopened on
1January 1976 ,itisplanned tomake useonce again ofthemethods adopted
inrecent years andtocalculate theprovisional volume ofthetariff quota
ontheforward data relating to1975 »whioh aretheonly ones available at
present .These data settheusual items forcalculation ofthetariff quota
atthefollowing approximate levels :
-consumption 43750metric tons
-production 28000metric tons
-inward processing 3500metric tons
-duty-free importations carried outfor the
benefit ofanother preferential arrangement
(EFTA ,associated countries ) 3000metric tons
-exportations intended fornon-member countries 3000metric tons
Onthis basis ,theprovisional tariff quota tobeopened on1January 1976
isabout 6000metric tons .

5.Asfarasthesubdivision oftheabovementioned 6OOO-tonvolumebetween
thethreecommonlyadoptedqualities ofmagnesiumisconcerned (extrapure,
notinalloyandinalloy),datarelatingtoimportations fromnon-member States •
intotheCommunity duringrecentyearsrevealasubdivision between magnesium
notinalloyandmagnesium inalloyinaratioof40:60.Theyalsoreveal
thatan.almostconstant increase insupplies ofmagnesium notinalloyfrom
EasternBloccountries ,sinceimportsofthisqualityofmagnesium fromUSSR
alonerosefrom17.8%ofconsumption in1970to25.8%in1971»35in1972
and26.4%in1973against34.1%,44*6%,39«2%and36.4%respectively of
Norwegian origin.
Inview,however,ofthefactthatCommunity production iscentredmainlyon
magnesium notinalloy,andonlysubsidiarily onmagnesium inalloyandextrar-pure
magnesium ,andthatimportations fromnon–membercountries donotnecessarily
reflectthestateoftheactualrequirements ofCommunity userindustries ,it
isplannedtokeeptoaratioof20:80forthesubdivision oftheinitial
tariffquotavolume.Undertheseconditions ,andhavingregardtothesupply
potential withintheCommunity ,thevolumesassignedtoeachofthequalities
ought,intheCommission 'sopinion,tobethefollowing :
-extra-pure magnesium . 200metrictons
-magnesium notinalloy 1160metrictons
-magnesium inalloy 4640metrictons.
6.Asfortheformofadministration ,itisproposed ,ashasalsobeencustomary ,
tosetupforthethreequotavolumesareserveintowhichanysurplusportions
oftheshareswouldbereturned andfromwhichtheMemberStateswhichstill
hadrequirements tobesatisfied ooulddrawsupplementary shares.

Information Document
regarding Counoil Regulation (KEG)NO3174/74of
11Deoember 1974 (OJWoL339of18December 1974 )
opening ,allocating and .providing fortheadmini–
stration ofaCommunity tariff quota forunwrought
magnesium
1. Through themedium ofthis Regulation theCouncil hasopened
upaduty-free tariff quota forunwrought magnesium falling within subheading
77.01 AoftheCommon Customs Tariff with avolume ,provisionally fixed at
12,000 metrio tons ,divided into :
(a)700metric tons ofextra-pure ;
(b)1,500 metrio tons notinalloy ;
(c)9»800metric tons inalloy .
2. Asthefollow uptotheCouncil request made when this Regulation
wasadopted ,theCommission hasconducted asurvey ofthemagnesium market with
thehelp ofthetopCommunity producers andconsumers ofthis commodity andon
thebasis ofaworking document drawn upinternally# This document wasbased
oneconomic information relating totheyears prior to1974 »theonly informar -
tion then available ,andwasminutely examined atthe "producers cumconsumers' *
meeting held on25April 1975 .
I
3* This particular study andtheinformation gathered atthemeeting
ofproducers andconsumers have established ,among other facts ,thefollowing
facts concerning theCommunity asnowconstituted *
A.Patput
Thefigures available onaotual magnesium outputs are 1
•/••

Firstmelt:
1966!I1967!!1268]!12691 !1210!I1271];1212]1973
Bénéluxί :
ιf
î IM iI
I
Denroark mm
Germany 200 mm mm
France 3,419[4,1644,4784t4144.6117,2176.8487,148
Ireland mm
Italy 6,5156.3177,445 7>ЮЗ7.5808*39°9,0548*936
UnitedKingdom
immj1
'-IL_-
EECTotal 10.134 !IIO-48I iI11.9231!11.517 !I12.191 :I15,607 :I15,9031[l6-0&4
Secondmelt:
BénéluxI I-!I- -I
Denmarkmm
Germany 1.300 2.2002.6002.1301,8541,7511,8511,795
France «
Ireland mm
Italy 300 400500
UnitedKingdom 3,7583,6823,5392,913]2,7562,4852,7002,700
EECTotal 5,058 !!5,882!I6,139!I5,043!I4,6l0jI4,536]i4,951 1I4,995
Therebeingnoexactfiguresavailable ,thoseshownagainstthiscountry
areestimates .
Thesefiguresindicate :
(a)thatin1973actualCommunity outputreached21,000metriotons,
16,000metriotonsofwhichwereoffirstmeltand5»000metrio
tonsofsecondmeltgrade;
(b)thatbetween1966and1973theannualexpansionrateofthisoutputwas
6,8%(11.1$inthecaseofFranceand4.6$intheoaseofItaly).
Foreoasts putforwardbyCommunity producers andoonfirmed by
government expertsatameetingofthe"EoonomioTariffProblems"Groupheld
subsequently gavetheactualproduction capaoities forfirst-melt magnesium
intheyears1974to1976ass

3
*>
1974 1975 Щ6
irsuioa 7,000 8,500 10.000
Italy 10,000 15,000 20,000
EECTotal 17,000 23,500 30,000
MentionmustbemadeinregardtotheItalianproduction capaoities
thattheproducer hassaidthattheselevelswouldheattainable iftheappropriate
demandwereforthcoming sufficiently earlyforittobeenteredinthemanufactu­
ringprogramme •
Tothesecapacities mustbeaddedtheoutputforecast ofsecond-
meltmagnesium whichisassessed ,forthethreeyearsinquestion,atthe1973
levelof5,000tonnes.
Thetotalproduction capacities wouldtherefore amountto22,000
metrictonsfor1974,28,500metriotonsfor1975and35,000metriotonsfor
1976.
Itisappropriate tonotealsothatappreciable quantities of
extra-pure magnesium ,production ofwhichhadbeenstartedinaMemberState
withaviewtomeetingthedemandsofCommunity userindustries ,havehadto
beexportedtonon-member countries orelsestockpiled throughlackofCommunity
buyers.Thestockpile inquestion,inApril1975rstoodat500metriotons^
Production ofthisgradeofmagnesium willbegininanother MemberStatein
1975andquitelargequantities couldbeallocated totheexportmarketfrom
thebeginning of1976onwards#
B.Consumption .
Theinformation available regarding consumption isnotuniformin
contentandrelatedtoconsumption irrespective ofwhetheritisapparent or
actualand,inthecaseofsomeoountries ,itincludesthemagnesium offirst
andsecondmelt*Thetrendinrespeotofthelargerconsuming MemberStatescan
beseenfromthefollowing tablecoveringtheyears1966to1973:

4
Bénélux
Germany ^"
France
Italy
United Kingdom
EEC Total1966 !1967 !i960 !1060 !1970'
1*300
40,600
4.326
1«800
/
8,200'900
34,700
5?158
1,800
8,000
56,226 !50,55811.600 2,172 1,202 I1,600 2,172
44,200 47,900 }49,830
5,630 15*250 }6.500
7*300υυ
ηΓι?6?900
Τ1971 ! 1072 !1273
1
1,500 !!i.8oo 1-980
49.860 39,170 !43.410
6,150 5,650 ;6.500
3,600 ]3,8oo :4,400
4,700 ;4,800 ;5,000
65.810 :I55,220 161.290
Figures include second –nelt magnesium »
Thofinal uses ofmagnesium intheCommunity ,excluding Germany ,
gave onaverage the following percentage "breakdown %
Aluminium alloys 43%
Foundry castings 20%
Cast billets 15%
Chemical products 17°
Hot-rolled products 57°
Other 10%
Theusage ofmagnesium mGermany differs distinctly from the
average oftheother Member States because about 90%ofthemagnesium consumed
isused bythecasting industry (castings formotor vehicles ).
Inconsequence ofrecent trends intheindustrial economic picture ,
some changes have occurred inrespect ofthe consumption ofunwrought magnesium
and its final uses .Prom the information available for 1974 and .the forecasts
putforward for1975 ,Community consumption in1974 would have been 62,000 metrio
tons (28,000 metric tons notinalloy and34,000 metrio tons inalloy )andin
1975 itshould be41,000 metric tons (23,000 metric tone notinalloy and
18,000 metric tons inalloy ).
This drop inCommunity consumption ofmagnesium ismainly dueto
the present economic crisis andthefall-off intheuse ofmagnesium incar
engine andwheelrim manufacture .This drop affects magnesium notinalloy (the
consumption ofwhich in1975 should drop to23,000 metric tons asagainst 28,000
metric tons in1974 )just asmuch asmagnesium inalloy (theconsumption of
which should drop from 34»000 metrio tons in1974 to18,000 metric tons in1975)*

5
TheCommunity consumption forthetwoyearsunderoonsideration
wouldbreakdownintofinalusesasfollows :
1974 1975
Aluminium alloys 24%
Foundrycastings 55% 44%
Castbillets 1% 10$
Chemicalproducts °5% 7%
Others $% 5%
C.Tradewithnon-member countries
Thefollowing tablesreproduoe theinformation available on
Community importsfromnon-member countries ,brokendownwherepossible between
magnesium inalloyandthatnotinalloy:
Imnortsfromnon-member countries (metrictons)
Magnesium notinalloy Magnesium inalloysBSasc:ssBaBuaa=s:&aa:=s& cr=jSá===33==s==ca==3»===ÍS3
II1970 1971 [1972 Il19737,1970 I1971 I1972 ![1973 !
Bénélux 1,5108061*391 j2,965Il i
« !
!•27j·· ι477 I52I85j
Denmark 146 126 172 88h_»-
Germany 5,675 !5.861 7.1189.149!|43|40l36,885 j'22.870 27.232
France ;2,247 385 4321.323π16
n i111 10 1
Ireland M
ϋ259
It
11If^Italy
United
Kingdom150
5.048111
3.922108
4«719389
5«325686 265
mm686
■Ί
114,776 11.211 13.94019,239ÎÎ43-703
tf'38,15923,19728,004j
mcl.mcl.mcl•mcl.|îmcl.mcl.incl•incl.i
Norway 5,0335,004 5*4627,000ÎI21.895 19,48420,02418,533j
U.S.A. 3,764 1,142 9535,572"16,74614,538 5196.857
U.S.S.R. 2,6362,8904,9665,077 U2.6162,473 2«355[2Î6L*
Canada I3,037 1!1,022 j11,071jI1,101*9711--1-i

6
This information shows t
(a)that Norway occupies first place astheorigin ofimports ,followed
bytheU»S#S.R «andtheU.S.A «;
(b)that theU.S.S.R. issteadily increasing itsexports ofmagnesium not
inalloy tostand onaverage at3,900 metrio tons perannum asagainst
5,600 metrio tons forNorway ;
(c)that theratio oftheimports ofmagnesium inalloy endnotinalloy
over thetotal imports changed from 75/25in1970 toabout 60/40in
1973 andthat this fact reflects the deoline inthemotor vehiole seotor
andthereduction intheuseofmagnesium inalloy inthis sector andthe
treni towards anincrease intheuseofmagnesium notinalloy#
D.Comnnmity înrport recniirements
Theopinions expressed byproducers andconsumers andalso by
government experts inregard totheassessment oftheCommunity import
requirements tobecalculated inconnection with thetariff quota provided
forunder the commitment entered into inrespeot oftheNordio countries
agree ontheonefact that ,inview oftheuncertainties whioh overshadow
every seotor oftheeconomy ,itwould beright toappear particularly
careful •
Onthebasis offorecasts ,imports made under inward prooessing
arrangements ,those jnade atanilrate ofduty forthebenefit ofanother
preferential soheme (associated countries orEFTA)andexports tonon-member
countries being assessed respectively at3,500 ,3,000 ,and3,000 metrio tons ,
thequota volume oalculated bytheroutine method would work outforunwrought
magnesium ingeneral atafigure below thevolume of12,000 metrio tons
already opened inpurBuanoe oftheRegulation inquestion on1January 1973 *

Proposal fora
REGULATION (EEC )No /75OPTHECOUNCIL
ontheopening ,allocation and .administration ofa
Community tariff quota forunwrought magnesium falling
within subheading No77.01 AoftheCommon Customs Tariff
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economio Community ,and
inparticular Article 113thereof ;
Having regard totheproposal from theCommission ;
Whereas ,inanexchange ofletters of30June 1957 yconfirmed inanexchange
ofletters of16April 1973 ,theEuropean Economic Community hasundertaken ,
asregards unwrought magnesium falling within tariff subheading No77*01 A,
toopen anannual Community tariff quota foraquantity such that Community
requirements for thesaid goods notcovered byCommunity production maybe
imported duty-free ;
Whereas inorder toestablish thevolume oftheCommunity tariff quota an
assessment must bemade ofthetotal consumption bytheuser industries ofthe
Member States during thetariff year and oftheCommunity production level for
the same period ;whereas even avery rough assessment oftotal consumption
andproduction for1976 will behighly unreliable since itisatpresent
impossible toestimate either thevolume ofunwrought magnesium used incertain
Member States intheyear under consideration orthelikely level ofCommunity
output ;whereas there isinanycase nolikelihood ofCommunity production
meeting thefull demand inthetariff year ;whereas theannual quota volume
must therefore befixed atanappropriate level ,probably about 6000metric
tons ;whereas thefixing ofthis volume isbased onconservative estimates and
later adjustments arenotexcluded ;whereas theduties tobeapplied bythe
newMember States under thesaid tariff quota must beinconformity with the
relevant provisions oftheActofAccession ;

Whereas themarkets Inmagnesium containing notless than 99»95% »byweight
ofpure magnesium (hereinafter called "extra –pure magnesium "),inmagnesium
containing notless than 99«8%butless than 99•95%byweight ofpure magnesium
(hereinafter called "unwrought magnesium notinalloy ")andinmagnesium
containing less than 99-8% byweight ofpure magnesium (hereinafter called
"unwrought magnesium inalloy ")differ considerably ;whereas adistinction should
therefore bemade between the three qualities and thequota volume under
consideration should bedivided between them ;
Whereas ,talcing into account anoverall ,provisional quota volume of
6000metric tons ,theimmediate need toimport some 200metric tons ofextra-pure
magnesium ,1160metric tons ofunwrought magnesium notinalloy and4640metric
tons ofunwrought magnesium inalloy hasbeen established ;whereas these
figures appear justified both bytheformer ratios ofconsumption ofthese
qualities tototal consumption ofmagnesium andbythe short-term outlook for
Community production ofthese qualities ofmagnesium ;
Whereas equal and continuous access tothequota should beensured for all
importers and therate oflevy for thetariff quota must beapplied consistently
toallimports until thequota isused up;whereas ,inthelight ofthe
principles outlined above ,aCommunity tariff arrangement based onan
allocation between theMember States would seem topreserve theCommunity
nature ofthequota ;whereas torepresent asclosely aspossible theactual
development ofthemarket inthesaid goods theallocation should follow
proportionately therequirements oftheMember States calculated both from
statistics ofimports from third countries during arepresentative reference
period andfrom theeconomic outlook forthetariff year inquestion ;
Whereas ,however ,theavailable statistics ofimports into theMember States
from third countries towhich noequivalent tariff preference was applied under
anyother preferential arrangements only cover unwrought magnesium inalloy
andunwrought magnesium not inalloy ;whereas during thethree years forwhich
statistics areavailable such imports represented thefollowing percentages
oftotal imports ofthesaid goods ;whereas onthebasis oftheinformation
atpresent tohand itappears that imports ofextra-pure magnesium arealmost
wholly into theUnited Kingdom ;

-3-
forwwrought magnealum netinalloyi
1972 1973M
Bénélux 12.27 6,55 23.18
Denmark 0.09 0 0
Germany 62-42 69-93 52.96
France 3.53 .9-39 7-11
Ireland 0-09 0.01 0.01
Italy 0-44 'З.Об 2.21
UnitedKingdom 21-16 11.06 14.53
forunwrought magnesium inalloy:
Bénélux 0.32 3.18 1.72
Denmark 0.06 0 0
Germany 97.51 93.23 94-26
France 0.06 0 1.57
Ireland 0.06 0.01 0
Italy 1.87 3.56 2-05
UnitedKingdom 0.12 0-02 0.39
Whereasinviewofthesefactorsandofmarketforecasts fortheseproducts
in1976,itisnecessary inthecaseofextra-pure unwrought magnesium toallot
onanexperimental "basisthequotavolumeforthisqualityandtoprovide
forMemberStateswhichhaverequirements tobemettobeabletodrawupon
thisreserveinappropriate quantities ,andwhereasitisnecesssary tofix
fortheotherqualities ofmagnesium initialpercentage sharesatapproximately
thefollowing levels:
–forunwrought magnesium notinalloy:
Bénélux 15.60
Denmark 0.04
Germany 62.50
France 4«50
Ireland 0.05
Italy 0.40
UnitedKingdom 16.91

-4-
–forunwrought magnesium inalloy}
Italy
UnitedKingdomDenmark
Germany
France
IrelandBénélux 2.12
0.03
96.50
0.03
0.02
0.80
0.50:
Whereas,totakeaccountmoreaccurately offutureimporttrendsformagnesium
inalloyandnotinalloy,thequotavolumeforeachofthesequalities of
unwrought magnesium shouldbedividedintotwotranches ,thefirstbeing
allocated amongtheMemberStatesandthesecondheldasareservetocover
atalaterdatetherequirements ofMemberStateswhohaveuseduptheir
initialshares;
Whereastogiveimporters somecertainty thefirsttranches shouldbefixed
at1000metrictonsofunwrought magnesium notinalloyand4000metrictons
ofunwrought magnesium inalloy,thebalances beingheldasthereserves ;
Whereastheinitialsharesmaybeusedupfairlyquickly ;whereas,therefore ,
toavoiddisruption ofsupplies ,anyMemberStatewhichhasalmostusedup
oneofitsinitialsharesshoulddrawasupplementary sharefromtheappropriate
reserve ;whereasthismustbedonebyeachMemberStateaseachoneofits
supplementary sharesisalmostusedup,andasmanytimesasthereserveallows;
whereastheinitialandsupplementary sharesmustbevaliduntiltheendof
thequotaperiod;whereasthisformofadministration requires close
collaboration betweentheMemberStatesandtheCommission ,andtheCommission
mustbeinaposition tofollowtheextenttowhichthequotavolumehasbeen
usedupandinformtheMemberStatesthereof ;
Whereasif,atagivendateinthequotaperiod,aMemberStatehasa
considerable quantity ofoneofitsinitialsharesleftover,itisessential
thatitshouldreturnasignificant proportion thereoftotheappropriate
reserve,topreventapartofoneorotherquotavolumefromremaining unused
inoneMemberStatewhileitcouldbeusedinothers;

-5-
Whereassince "theKingdomofBelgium,theKingdomoftheNetherlands andthe
GrandDuchyofLuxembourg arejointlyrepresented bytheBeneluxEconomic Union
anymeasureconcerning theadministration ofthesharesallocated tothat
economic unionmaybecarriedoutbyoneofitsmembers ;
HASADOPTED THISREGULATION :
Article 1
1.Duringtheperiodfrom1Januaryto31December 1976aCommunitytariff
quotaof6000metrictonsshallbeopenedintheCommunity forunwrought
magnesium falling -withinsubheading No77*01AoftheCommonCustomsTariff.
2.Thevolumeofthetariffquotashallbedividedasfollows:
(a)asto200metrictonsforunwrought magnesium containing notless
than99-95%byweightofpuremagnesium ("extra-pure magnesium"),
intended forthenuclearindustry andundercustomscontrolorthe
administrative equivalent ;
(b)asto1160metrictonsforunwrought magnesium containing notless
than99.&/0butlessthan99*95%byweightofpuremagnesium ("unwrought
magnesium notinalloy");
(c)asto4640metrictonsforunwrought magnesium containing lessthan
99*8%byweightofpuremagnesium ("unwrought magnesium inalloy").
3.Importsofthesaidgoodsmaynotbecountered underthistariffquota
iftheyarealreadyfreeofcustomsdutiesunderotherpreferential tariff
treatment applied bycertain MemberStates.
4.WithinthistariffquotatheCommonCustomsTariffdutiesshallbetotally
suspended .
5.WithinthistariffquotathenewMemberStatesshallapplydutiescalculated
inaccordance withtherelevant provisions oftheActofAccession .

-6-
Article 2
1.Thevolumeof200metrictons,referredtoinArticle1.2(a),allocated
toextra-pure unwrought magnesium intendedforthenuclearindustryshallbe
allotted totheCommunity reserve.
» __
2.IfinaMemberStateaneedisfeltforextra-pure unwrought magnesium ,
thatStateshalldraw,totheextentpermitted bytheamountofthereserve,
asufficient shareofthereservethussetup.
Arl\cle 3
1.AfirsttrancheofeachofthevolumesprovidedforinArticle1.2(b)and
(c),whichamountrespectively to1000metrictonsforunwrought magnesium
notinalloyand4000metrictonsformagnesium inalloyshallbedivided
amongtheMemberStates.Theshares,whicharevalidfrom1Januaryto
31December 1976,subjecttothereservation expressed inArticle6,amount
tothefollowing quantities foreachMemberState.
(a)forunwrought magnesium notinalloy:
Benelux 156metrictons
Denmark 0.5metrictons
Germany 625metrictons
Prance 45metrictons
Ireland 0.5metrictons
Italy 4metrictons
UnitedKingdom 169metrictons
(b)forunwrought magnesiuminalloy:
Benelux 85metrictons
Denmark 1metrictons
Germany 3860metrictons
France 1metrictons
Ireland 1metriotons
Italy 32metrictons
UnitedKingdom 20metriotons

-7-
2*Theseoortdtraftofces,of160ttrid640metrictonsrespectively ,shall%§
heldasCommunity reserves .
Article 4
1.If90$ormoreofoneofaMemberState'sinitialsharesasspecified
inArticle3(l),orofthatshareminustheportionreturnedtotheappropriate
reservewhereArticle 6isapplied,hasbeenusedup,thatMemberStateshall
withoutdelay,bynotifying theCommission ,drawasecondshareequalto10%
ofitsinitialshare,roundedupwherenecessary tothenextunit,tothe
extentpermitted bytheamountofthereserve.
2.If,afteroneorotherofitsinitialshareshasbeenusedup,$Cf/oor
moreofthesecondsharedrawnbyaMemberStatehasbeenusedup,thatMember
Stateshall,inaccordance withtheconditions laiddowninparagraph 1,draw
athirdshareequalto5i°ofinitialshare,roundedupwherenecessary
tothenextunit.
3.If,afteroneorotherofitssecondshareshasbeenusedup,ormore
ofthethirdsharedrawnbyaMemberStatehasbeenusedup,thatMemberState
shall,inaccordance withthesameconditions ,drawafourthshareequalto
thethird.
Thisprocessshallcontinuetoapplyuntilthereserves areusedup.
4.Bywayofderogation fromparagraphs 1to3,aMemberStatemaydrawshares
lowerthanthosefixedinthoseparagraphs iftherearegroundsforbelieving
thatthosefixedmaynotbeusedup.ItshallinformtheCommission ofits
reasonsforapplyingthisparagraph .
Article 5
Supplementary sharesdrawnpursuant toArticle4shallbevaliduntil
31December 1976.

Article 6
AMemberStatewhichon15September 197°hasnotusedupitsinitialshareshall
returntothereservenotlaterthan1October 197& "theunusedportionexceeding
20fooftheinitialamount.Itmayreturnagreaterportioniftherearegrounds
forbelieving thatitmaynotbeusedup.
MemberStatesshall,notlaterthan1October 1976,notifytheCommission of
thetotalquantities ofthesaidgoodsimported uptoandincluding 15September 1976
andchargedagainsttheCommunity quotaandanyquantities oftheinitialshares
returned totheappropriate reserve .
Article 7
TheCommission shallkeepanaccountofthesharesopenedbytheMemberStates
pursuant toArticles 2,3and4andshall,assoonasithasbeennotified ,
informeachStateoftheextenttowhichthereservehasbeenusedup.
ItshallinformtheMemberStates,notlaterthan5October 197&,oftheamount
stillinreserveafteramountshavebeenreturnedtheretopursuant toArticle 6.
Itshallensurethatthedrawing whichusesupareserveislimitedtothe
balanceavailable andtothisendshallspecifytheamountthereoftotheMember
Statemakingthelastdrawing .
Article 8
1.MemberStatesshalltakeallmeasures necessary toensurethatsupplementary
sharesdrawnpursuant toArticle 4areopenedinsuchawaythatimports maybe
chargedwithoutinterruption againsttheiraccumulated sharesintheCommunity
quota.
2.MemberStatesshallensurethatimporters ofthesaidgoodsestablished in
theirterritory havefreeaccesstothesharesallocated tothem.
3.TheextenttowhichaMemberStatehasusedupitssharesshallbedetermined on
thebasisoftheimportations ofthesaidgoodssubmitted tothecustomsunder
declarations ofentryforhomeuse.

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Artiolâ 9
Л
Member States shall inform theCommission atregular intervals ofimports
actually charged against their shares .
Article 10
Member States and theCommission shall cooperate closely inorder toensure that
this Regulation isobserved .
Article 11
This Regulation shall enter into force on 1January 197° «
This Regulation shall bebinding initsentirety anddirectly applicable in
all Member States .
Done atBrussels , For the Council
The President