. THE RELEVANCE OF THE ARGUMENTS PUT FORWARD BY THE COMMISSION IN ITS DEFENCE MUST BE EXAMINED IN THE LIGHT OF THAT DUTY .
12 IN THAT RESPECT , IT MUST BE NOTED THAT NO DIFFICULTIES OF A TECHNICAL NATURE PREVENTED ARTICLE 11 ( 3 ) OF DECISION NO 1831/81 FROM BEING APPLIED IN FAVOUR OF THE APPLICANT .
13 IN FACT , THE COMMISSION ' S FIRST ARGUMENT , BASED UPON THE ALTERATION IN THE METHOD OF CALCULATING THE AMOUNT WHICH MAY BE CARRIED FORWARD , IS WITHOUT SUBSTANCE , SINCE THAT ALTERATION DOES NOT , OF ITSELF , PREVENT THE AMOUNT TO BE CARRIED FORWARD FROM BEING CALCULATED ON THE BASIS OF THE NEW PROVISIONS .
14 SECONDLY , WITH REGARD TO THE ARGUMENT CONCERNING THE NEW CLASSIFICATION OF STEEL PRODUCTS ESTABLISHED WITH EFFECT FROM THE THIRD QUARTER OF 1981 , IT IS SUFFICIENT TO NOTE THAT THE UNDERTAKING IN QUESTION PRODUCED ONLY ONE CATEGORY OF PRODUCT DURING THE SECOND AND THIRD QUARTERS OF 1981 , NAMELY CONCRETE REINFORCING BARS . THE FACT THAT SUCH BARS WERE ORIGINALLY CLASSIFIED IN GROUP IV BY DECISION NO 2794/80 AND WERE THEN PLACED IN CATEGORY V BY DECISION NO 1831/81 DID NOT MAKE IT IMPOSSIBLE , OR EVEN MORE DIFFICULT , TO CALCULATE THE AMOUNT OF THE QUOTA WHICH THE APPLICANT WAS ENTITLED TO CARRY FORWARD .
15 IT WOULD APPEAR , IN THOSE CIRCUMSTANCES , THAT THE APPLICANT WAS ENTITLED TO CARRY FORWARD TO THE THIRD QUARTER OF 1981 PART OF THE UNUSED PORTION OF THE QUOTA ALLOCATED TO IT FOR THE SECOND QUARTER OF 1981 , WITHIN THE LIMIT SET BY ARTICLE 11 ( 3 ) OF DECISION NO 1831/81 , THAT IS TO SAY UP TO 5% OF THE QUOTA ALLOCATED FOR THE SECOND QUARTER OF 1981 .
16 IN FACT , IT IS CLEAR FROM THE EVIDENCE , FIRST , THAT THE COMMISSION INFORMED THE APPLICANT ON 6 APRIL 1981 THAT IT HAD BEEN ALLOCATED A QUOTA OF 13 789 TONNES FOR THE SECOND QUARTER OF 1981 IN RESPECT OF PRODUCTS FALLING WITHIN GROUP IV AND , SECONDLY , THAT ITS PRODUCTION OF REINFORCING BARS IN THAT QUARTER ONLY AMOUNTED TO 11 217 TONNES , WHICH FIGURE HAS NOT BEEN DISPUTED . THE UNUSED PORTION OF THE QUOTA ALLOCATED FOR THAT QUARTER THEREFORE AMOUNTS TO 2 512 TONNES .
17 CONSEQUENTLY , THE APPLICANT WAS ENTITLED TO CARRY FORWARD A PROPORTION OF THAT AMOUNT NOT EXCEEDING 5% OF THE QUOTA OF 13 789 TONNES , THAT IS TO SAY 689 TONNES .
18 AS A RESULT THE AMOUNT WHICH IT PRODUCED UNLAWFULLY IN EXCESS OF ITS QUOTA IS REDUCED FROM 1 012 TONNES TO 323 TONNES .
19 AS THE COMMISSION ITSELF ADMITTED AT THE HEARING , IT FOLLOWS A WELL ESTABLISHED PRACTICE , IN RELATION TO ALL UNDERTAKINGS IN THE STEEL INDUSTRY , OF WAIVING THE IMPOSITION OF A FINE WHERE AN UNDERTAKING INFRINGES THE QUOTA SYSTEM FOR THE FIRST TIME AND EXCEEDS ITS QUOTA BY