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COM(77)239
Vol.1977/0087

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COMMISSION OFTHEEUROPEAN COMMUNITIES
„!COM(77)239final
1
Brussels,15June1977
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Proposalfora
COUNCILREGULATION (EEC)
\
increasingtheCommunity "tariffquotaopenedfor
1977byRegulation(EEC)No2930/76forunwrought
magnesiumfallingwithinsubheading77.01ofthe
CommonCustomsTariff
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(submittedtotheCouncilbytheCommission)
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COM(77)239final

EXPLANATORY MEMORANDUM
1 . -ByRegulation (EEC)No2930 /76of29November 1976 >theCouncil opened
andallocated among theMember States £or 1977aCommunity tariff
quota forunwrought magnesium falling within subheading 77.01 Aofthe
Common Customs Tariff andinitially totalling 5500metric tons ,based
onestimates putforward attheendof1976 ,which moreover didnot
preclude adjustments during thequota period .
When this Regulation wasadopted bytheCouncil ,theCommission was
requested topursue thestudy ofthestate of
themarket inthis product and topropose anincrease inthequota
volume before mid-1977 ifitappeared that Community requirements as
regards imports from non-member countries would exceed thequota
volume under consideration .
This isthepurpose ofthis proposal fbraregulation .
I
Areview ofthestate ofthemarket inmagnesium andofCommunity
requirements forimports from non-member countries wascarried outat
themeeting oftheEconomic Tariff Problems Group ,held on' April
1977,onthebasis oftheusual estimates for 1977 provided bythe
Member States inrespect ofthethree qualities ofmagnesium used for
theinitial quota .Itemerged from this discussion that :
(a)atthefirst review carried out atthesame period ,thestate
oftheCommunity market inmagnesium in1977 appeared tobe
substantially thesame asin1976 ;
(b)theCommunity production capacities arenotfully utilized
especially inFrance ,where ithasnotbeen possible toreduce
thestocks ofmagnesium notinal'loy built upin1976 and
equivalent tothree months' production ,andinItaly where ,
owing tolack ofpurchasers ,theextra-pure magnesium produced
hasbeen sold asmagnesium not inalloy ;
(c)theestimates putforward bytheMember States settheusual
factors forcalculating thequota atthefollowing approximate
levels for 1977 :

-2-
-intonnes -
unwrought
magnésium
ingénéralextra-pure
magnésiummagnésium
not in
alloymagnésium
inalloy
consumption 55748 1850 30378 23520
j-production
-Inward processing traffic25700
3000500
016000
15009
1200
500
;-duty-free imports carried out
.under other preferential tariff
arrangements
;(EFTA ,associated countries ,etc*) 3256 0 2906 350
-exports tonon-member countries2280 0 890 1390
-unusual stocks existing on31
December 1977 '!2500 0 2500 0
(d)onthis basis andmview ofthequota volume of5500 .tonnes
.already opened atthebeginning oftheyear ,the .
requirements asregards imports from non-member countries |
theendofthecurrent yearwould besetatabout 13500tonnes , |
i.e. 750 .tonnes ofextra' pure magnesium;' 5250tonnes ofmagnesium |
not'in alloy' and75DGtonnes of'magnesium -in-alloy ..•– |
j3»These various factors indicate that cautiou& must still beexercised in f
fixing quota volumes forthis product ,taking into account the
♦ ;
uncertainty astothelevel which Conrnnjpiity Consumption might reach ■■
during 1977 . 1
Forthis reason theCommission considers itnecessary ,pending
afurther review ofthesituation which might be
carried outinSeptember on,the ,basis ofmore specific estimates ,tofurther
,confine itself again toa7provisional increase inthetariff quota of
4500 tonnes .

-3-
4*Asregards thesplitting upofthe4500 tonnes under consideration
into thethree qualities ofmagnesium ,itshould benoted that the
Community requirements for extra-pure magnesium imports from non-member
>countries oftheorder of 1850tonnes could becovered toa
large extent bythequota opened atthebeginning oftheyear (600
tonnes ) andbyCommunity production ofabout 500tonnes .
Until asubsequent review ismade , animmediate increase of
500tonnes allocated tothis quality ofmagnesium should cover the
short-term requirements oftheCommunity industries .
Furthermore ,itisproposed that thebalance ,i.e. 4000tonnes ,be
split upamonq theother twoqualities approximately inproportion to
therequirements forthese twoqualities (35/65)andthat 1400tonnes
beallocated tounwrought magnesium not inalloy and2600tonnes to
unwrought magnesium inalloy .
5.Thesupplementary volumes of500and 2600tonnes proposed for
extra-pure magnesium andmagnesium inalloy areallotted tothe
Community reserves setup,whereas thesupplementary volume
allocated tounwrought magnesium not inalloy is,after deduction of
thequantity allotted totheCommunity reserve ,divided among the
Member States according tothepercentages originally used *
/

Proposal for
COUNCIL REGULATION (EEC)
increasing theCommunity tariff quota opened for1977
byRegulation (EEC)No2930 /76for unwrought magnesium
falling within subheading 77.01 AoftheCommon Customs
Tariff
I
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Article 113thereof ,
Having regard totheproposal from theCommission ,
4
whereas ,forunwrought magnesium falling within subheading 77.01 Aofthe
Common Customs Tariff ,aCommunity tariff quota for 197 totalling 5500
tonnes was opened bytheCouncil andallocated among theMember
States byRegulation (EEC)No2930/76(1)
Whereas theeconomic data atpresent available with regard totheconsump­
tion andproduction ofunwrought magnesium donotyetpermit Community
requirements forimports from non-member countries tobeevaluated with
sufficient precision ;whereas itappears that certain Member States have
considerable magnesium requirements which cannot bemetbyCommunity pro­
duction ;whereas thequota concerned should therefore beincreased by .
anappropriate amount ,approximately 4500 tonnes ; whereas thefixing
atthis level ofthis supplementary quota does notpreclude further
adjustments during thequota period ;whereas ,inview ,moreover ,onthe
onehand ofthepresent requirements forunwrought magnesium notinalloy
with apure ihagnesium content ofnotless than 99.95% andontheother
hand ofthequantities available intheCommunity andofthepossible
increase inproduction byCommunity industries based principally on
I
unwrought magnesium notinalloy ,andalso thepossibility ofduty-free
imports under agreements concluded bytheCommunity with certain non-
acceding EFTA countries ,itcanbeestimated that short-term requirements
forimports ofunwrought magnesium may ,within thelimit oftheproposed
increase ,reach 500tonnes ofunwrought magnesium containing 99.95%
ormore byweight ofpure magnesium (extra-pure magnesium ),1400tonnes
ofunwrought magnesium containing 99.8% ormoreljut less than 99.95%
^0JNoL °f^December 1976,p.1.

2
byweight ofpure magnesium (unwrought magnesium notinalloy ),and
2600tonnes ;ofunwrought magnesium containing :■ ,than 99.8%by
weight ofpure magnesium (unwrought magnesium inalloy );
Whereas asfarasthedistribution oftheabove quota volumes between
Member States isconcerned ,itisnecessary toallot totheCommunity
reserves allthesupplementary volumes allocated toextra-pure magnesium
andunwrought magnesium inalloy andalso arelatively small part ofthe
supplementary volume allocated tounwrought magnesium notinalloy ,the
balance ofthis volume being divided among theMember States .inaccordance with
thepercentages originally used ,
HAS ADOPTED THIS REGULATION : '
< ; ;
Article 1
Thevolume oftheCommunity tariff quota opened byRegulation (EEC)No2930 /76
forunwrought magnesium falling within subheading 77.01 Aofthe
Common Customs Tariff ishereby increased from 5500 to10000 tonnes .
This increase of4500 tonnes shall beallocated asfollows :
(a) 500tonnes ofunwrought magnesium containing 99.95% ormore
byweight ofpure magnesium (extra-pure magnesium ),intended for
thenuclear industry andunder customs supervision orequivalent
administrative supervision ;
.. *
(b) 1400tonnes ofunwrought magnesium containing notless than
99.8% but less than 99.95% byweight ofpure magnesium (unwrought
magnesium notinalloy );
(c) 2600tonnes ofunwrought magnesium containing less ,than 99.8%
byweight ofpure magnesium (unwrought magnesium inalloy ). .

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Article 2
The volumes of 500 tonnes and 2600 tonnes .referred toinArticle
1(a)and (c)allocated toextra-pure unwrought magnesium intended forthe
nuclear industry andtounwrought magnesium inalloy shall beallotted to '
theCommunity reserves setupunder toArticles 2(1)and 3(2)of
Regulation (EEC)No2930 /76,which shall thus beincreased from 600to
1100tonnesand from 425to3025tonnes respectively .
)
Article 3
1.Afirst tranche of '1260tonnes from theamount referred toinArticle 1(b )
allocated to unwrought magnesium notinalloy shall beallocated
among theMember States asfollows :
BénéluxI211 tonnes
Denmark<.0.5 tonne
Germany 854 tonnes
France <42 tonnes
Ireland ;0.5 tonne
Italy4 tonnes
United Kingdom'148 tonnes .
The second tranche of 140 tonnes shall constitute the reserve . 2.
Theamount ofthereserve forthis type ofunwrought magnesium ,
provided forinArticle 3(2)ofRegulation (EEC)No2930/76,isthus be
increased from 130 to270 tonnes .
Article 4 ,
This Regulation shall enter into force ontheseventh dayfollowing its
publication intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States . 1 •
Done atBrussels , theCouncil
The President
I

FINANCIAL STATEMENT .Date:18Aprit1977
1.Budgetlineconcerned :Ch.12Art.120
2.Leqalbasis:Art.113
3.Titleofthetariffmeasure:
ProposalforaCouncilRegulation (EEC)increasingtheCommunity
tariffquotaopenedfor1977byRegulation (EEC)No2930/76for
unwroughtmagnesiumfallingwithinsubheading77.01Aofthe
CommonCustomsTariff
4.Objectives :
Compliancewithobligations contractedinGATTfortheproductinquestion.
5.Methodofcalculation :
-NoofCCT :77.01A
-Quotavolume :4.500metrictons
-Quotadutyrate:0%
-DutyrateCCT:8%(NORrate:4.8%)
6.Lossofreceipts:550.000UC