3 REFERENCE IS MADE TO THE REPORT FOR THE HEARING FOR THE BACKGROUND TO THE DISPUTE 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 .
4 IN SUPPORT OF ITS CLAIM FOR THE ANNULMENT OF THE DECISION, SAN CARLO RELIES ESSENTIALLY ON TWO SUBMISSIONS . IT ARGUES, FIRST OF ALL, THAT THE STOCKS OF REINFORCING BARS FROM WHICH THE EXCESS PRODUCTS DELIVERED CAME WERE CONSTITUTED IN COMPLIANCE WITH PRODUCTION QUOTAS PREVIOUSLY ALLOCATED AND, CONSEQUENTLY, IT SHOULD HAVE BEEN POSSIBLE TO DISPOSE OF THEM ON THE COMMON MARKET IN ADDITION TO THE DELIVERY QUOTAS . SECONDLY, IT CLAIMS THAT THE SALE WAS CARRIED OUT IN ACCORDANCE WITH THE GENERAL PRACTICE ADOPTED BY THE COMMISSION IN RESPECT OF STOCKS EXISTING ON 30 JUNE 1981 AND 30 JUNE 1982 . ACCORDING TO THAT PRACTICE, WHICH HAS NEVER BEEN DISCONTINUED, DISPOSAL OF SUCH STOCKS IN ADDITION TO THE DELIVERY QUOTA HAS ALWAYS BEEN TOLERATED .
5 WITH REGARD TO THE FIRST SUBMISSION ALLEGING THAT SAN CARLO COMPLIED WITH ITS PRODUCTION QUOTAS, IT MUST BE POINTED OUT THAT ACCORDING TO ARTICLE 5 OF DECISION NO 2177/83/ECSC OF 28 JULY 1983, CITED ABOVE, RE-ENACTING THE PROVISIONS OF ARTICLE 5 OF BOTH DECISION NO 1696/82/ECSC OF 30 JUNE 1982 ( OFFICIAL JOURNAL 1982, L*191, P.*1 ) AND DECISION NO 1831/81/ECSC OF 24 JUNE 1981 ( OFFICIAL JOURNAL 1981, L*180, P.*1 ), WHICH PRECEDED IT, "THE COMMISSION SHALL FIX EACH QUARTER, FOR EACH UNDERTAKING, THE PRODUCTION QUOTAS AND THE PART OF SUCH QUOTAS WHICH MAY BE DELIVERED ON THE COMMON MARKET ".
6 IT FOLLOWS FROM THOSE PROVISIONS THAT THE QUOTA SYSTEM, ESTABLISHED IN ORDER TO DEAL WITH A MANIFEST CRISIS IN THE EUROPEAN STEEL INDUSTRY, COMPRISES NOT MERELY PRODUCTION QUOTAS BUT ALSO DELIVERY QUOTAS SET AT A QUANTITY LOWER THAN THE FORMER . IT CAN BE SEEN BOTH FROM THE FIFTH RECITAL IN THE PREAMBLE AND FROM ARTICLE 11*(6 ) OF THE ABOVEMENTIONED DECISION THAT THE DIFFERENCE IN THE TWO QUOTAS IS DESIGNED TO ORIENT THE PRODUCTION OF COMMUNITY UNDERTAKINGS TOWARDS MARKETS OUTSIDE THE COMMUNITY .
7 FURTHERMORE, ARTICLE 12 OF DECISION NO 2177/83/ECSC REQUIRES UNDERTAKINGS TO COMPLY NOT MERELY WITH THEIR PRODUCTION QUOTAS BUT ALSO WITH THEIR DELIVERY QUOTAS .
8 CONSEQUENTLY, THE FACT THAT SAN CARLO COMPLIED WITH ITS PRODUCTION QUOTAS COULD NOT AUTHORIZE IT TO EXCEED THE DELIVERY QUOTA ALLOCATED TO IT . THE FIRST SUBMISSION MUST THEREFORE BE REJECTED .
9 WITH REGARD TO THE SECOND SUBMISSION ALLEGING TOLERANCE ON THE PART OF THE COMMISSION, IT MUST BE EMPHASIZED THAT IN REPLY TO THE APPLICANT' S ARGUMENT THE COMMISSION ADMITTED THAT IT HAD IN PRACTICE TOLERATED THE DISPOSAL IN ADDITION TO DELIVERY QUOTAS OF STOCKS OF REINFORCING BARS EXISTING ON 30 JUNE 1981 AND 30 JUNE 1982 . HOWEVER, THE COMMISSION CONTENDS THAT UNDERTAKINGS COULD NOT FAIL TO BE AWARE THAT THAT PRACTICE WAS NO LONGER ACCEPTED WITH EFFECT FROM 1 JULY 1983, BY