PRODUCTION QUOTA FIXED UNDER COMMISSION DECISION NO 2177/83 OF 28 JULY 1983 ( OFFICIAL JOURNAL L*208, P.*1 ).
2 BY LETTER DATED 14 JUNE 1985 THE COMMISSION COMPLAINED THAT FOR THE FOURTH QUARTER OF 1983 THE APPLICANT HAD EXCEEDED ITS PRODUCTION QUOTA FOR CATEGORY IV BY 910 TONNES ( AN ACTUAL EXCESS OF 4*432 TONNES LESS THE TOLERANCE MARGIN ALLOWED BY ARTICLE 11 ( 1 ) OF DECISION NO 2177/83 OF 3*522 TONNES ).
3 ON BEING REQUESTED TO SUBMIT ITS OBSERVATIONS THEREON THE APPLICANT STATED, IN A LETTER DATED 25 JUNE 1985, THAT PART OF ITS PLANT IN VALFIL HAD BEEN DAMAGED BY A FIRE IN JANUARY 1983 AND CONSEQUENTLY, IN ORDER TO FULFIL ITS ORDER BOOK, IT HAD BEEN FORCED TO ASSIGN PART OF ITS QUOTA FOR GROUP IV PRODUCTS TO OTHER MANUFACTURERS PREPARED TO CARRY OUT PROCESSING FOR IT . THUS, DURING THE FOURTH QUARTER OF 1983, 28*000 TONNES OF ORDERS AND QUOTAS WERE TRANSFERRED TO THE GERMAN COMPANY, THYSSEN, OF WHICH 4*892 TONNES, THAT IS TO SAY 460 TONNES MORE THAN THE NOMINAL EXCESS, WERE TRANSFERRED BACK TO THE APPLICANT DURING THE FIRST QUARTER OF 1984 . IF THE QUOTA APPEARS TO HAVE BEEN EXCEEDED, IT IS, IN THE APPLICANT' S VIEW, MERELY A BOOK ENTRY .
4 ON 9 OCTOBER 1985 THE COMMISSION ADOPTED THE CONTESTED DECISION FINDING INTER ALIA THAT THE APPLICANT HAD NOT CHALLENGED THE AMOUNT OF THE EXCESS WITH WHICH IT WAS CHARGED BUT THAT THE UNCERTAINTY DURING THE FOURTH QUARTER OF 1983 WITH REGARD TO THE EXTENSION OF THE QUOTA SYSTEM AND THE PARTICULAR CIRCUMSTANCE OF THE FIRE AT THE VALFIL PLANT JUSTIFIED A REDUCTION IN THE NORMAL RATE OF 100*ECU TO 25*ECU PER TONNE OF EXCESS .
5 REFERENCE IS MADE TO THE REPORT FOR THE HEARING FOR A MORE DETAILED ACCOUNT OF THE FACTS, THE COURSE OF THE PROCEEDINGS AND THE SUBMISSIONS AND ARGUMENTS OF THE PARTIES, WHICH ARE MENTIONED OR DISCUSSED HEREINAFTER ONLY IN SO FAR AS IS NECESSARY FOR THE REASONING OF THE COURT .
6 IN SUPPORT OF ITS APPLICATION THE APPLICANT MAKES A SINGLE SUBMISSION, NAMELY THAT THERE IS NO ACTUAL EXCESS .
7 THE APPLICANT STATES THAT IN ORDER TO DETERMINE WHETHER AN IRON AND STEEL UNDERTAKING HAS EXCEEDED ITS QUOTAS IT IS NECESSARY TO ADD TOGETHER THE PRODUCTION IN ALL ITS VARIOUS PRODUCTION CENTRES . WHERE AN UNDERTAKING CARRIES OUT PROCESSING FOR ANOTHER IRON AND STEEL UNDERTAKING, ITS ACTIVITY IS TO BE TREATED AS THE ACTIVITY OF A PRODUCTION CENTRE OF THE SECOND UNDERTAKING . IT IS ONLY ON THAT BASIS THAT IT IS POSSIBLE TO OBTAIN A PRECISE CALCULATION OF THE TOTAL PRODUCTION CARRIED OUT ON BEHALF OF THE TRANSFEROR UNDERTAKING DURING A PARTICULAR QUARTER; SUCH A CALCULATION IS IN CONFORMITY WITH THE QUARTERLY BASIS ON WHICH THE QUOTA SYSTEM OPERATES . THE APPLICANT CLAIMS THAT IF THAT RULE WERE APPLIED TO IT FOR THE FOURTH QUARTER OF 1983 IT WOULD MEAN THAT ITS TOTAL PRODUCTION WAS LESS THAN THE QUOTAS WHICH