CELEX: 51976PC0029
Language: en
Date: 1976-02-02
Title: Draft of a new Agreement on the establishment of through international railway-tariffs- for the carriage of coal and steel (presented by the Commission to the representatives of the Governments of the Member State of the ECSC meeting in the Council.)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 29
Vol. 1976/0014
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(76 ) 29 final .
                                                  Brussels , 2 February 1976
                              Draft of a new Agreement
               on the establishment of through international railway-
              tariffs for the carriage of coal and. steel (presented
              "by the Commission to the representatives of the Govern­
              ments of the Member State of the ECSC meeting in the
                                      Council . )
   COM( 76 ) 29 final
 ---pagebreak---                                  REPORT
           Revision of the Agreement of 21 March 1955 on "the
         establishment of through international railway tariffs
                    for the carriage of coal and steel
I. BACKG30UND
          ....       . .               .       2
   1.     At its meeting on 22 November 1973 , the Council took note of
   the Netherlands Delegation 's request dated 11 October 1973"' to have
   the Agreement of 21 March 1955 revised in keeping with the present
   situation in this field and the enlarged Community . It instructed the
   Committee of Permanent Representatives to' examine this request .
          In connection vri'th this , the Council took note of a statement
   by the Commission that it was prepared to work out the necessary
   amendments in conjunction with the nine Governments . These amendments
   had to comply in particular with Article 70 of the ECSC Treaty and
   Article 10 of the Convention on the Transitional Provisions .
                                                                        /
                                                                      •/ •
  OJ ECSC No 9 of 19 April 1955 , p. 701 .
  OJ ECSC No 10 of 30 Aprii 1956 , p . 130 .
  OJ EC No 22 of 9 April 1959 » P « 431 .
  OJ EG No L 347 of 17 December 1973 , p. 64 .
  T/643I/73 TRANS .
3 r/2804/73 (TRAMS 121 ) (SID 81 ) and R/2532/73 (TRANS 93) ( SID 66).
 ---pagebreak--- 2,       On 16 January 1974» the delegations of the Member States during
the meeting of the Working Party on Transport Questions asked the
Commission, working with the rail experts for ECSC tariff No 9001 , to
take stock of the problems in connection with the Agreement and to work
out proposals for technical solutions compatible with Article 70 of the
ECSC Treaty and Article 10 of the Convention on the Transitional Provisions ,
Subsequently the . Commission was asked to submit a report on this work,
and, if appropriate , a draft amendment to the Agreement , to the delegations
meeting in the Working Party,                             i
3,        Initially the rail experts for ECSC tariff No 9001 met  several
times and in the presence of Commission representatives carried   out a
thorough examination of the main provisions of the Agreement in   the light
of the changes since 1955 in . the economics of the international carriage
of coal and steel . They endeavoured to find technical solutions compatible
with Community law with a view to .bringing the provisions of the Agreement
of 21 IJarch 1955 into line with the economic interest# of the railways
without disturbing the transport markets in question. On completion of
their work they announced their findings concerning the main problems
examined in a letter sent to' the Commission by French Railways on behalf
of all the railway undertakings concerned in the European Communities ,
(letter of 24.12.1974)                     •                       •
          Later the Commission drew up, on the basis of this work, a
preliminary draft revised Agreement which was finalised at a meeting
with the rail experts for tariff No 9001 ECSC on 7 October 1975« T*1®
full text of the draft new Agreement , on through international railway
tariffs for the carriage of coal and steel is given in Annex 7. to this
report ,
                                                                     ./.
1 R/183/74 (TRANS 9) (SE> 6).
 ---pagebreak---                                       - 3 -                   " 11/ 631
II . G3IERAL CONSIDERATIONS CONCERNING TIE REVISION OF THS 19 55 AGREEIENT
     4*        The 1955 Agreement was adopted to implement the first and
     second paragraphs of Article 70 of the ECSC Treaty and Article 10
     of the Convention on the Transitional Provisions .      The common
   . system of railway tariffs for the international oarriage of coal
     and steel which the Governments decided on continues to ensure
     compliance with the Treaty 's ban on discrimination, and hence
     with the basic rules which are the very foundation of the common
     market in ooal and steel .    The railways too must be required to
     conform in this way in so far as transport has been included in
     the planned level of integration .     This is not , however , a public
     service obligation eligible for compensation .      The railways must
     adhere to the basic rules for doing business in a market economy
     in just the same way as other participants in the market .
               Furthermore , the tariff arrangements under the 1955 Agreement
     have served the railways well . To be sure , the Agreement was not
     the first example of international railway tariffs , either as a
     concept o^E.i)odl . However, it was in the forefront of progress
     and broke new ground in providing the first occasion when six ,
     and now eight , paetional railway organizations established and
     operated common tariff arrangements in this way .
              1 *
               The experiment will continue to yield results irrespective
     of potential technical improvements and regardless of the railways'
     future place in the Community 's social and economic structure .
                                                                           ■/.
 ---pagebreak---           Transport users also felt that this Agreement and the tariff
arrangements involved (3CSC tariff ..No,. 9001 ). represented progress      •• •
towards a way of regulating rates whose main features should become
general , transcending national interests ,                            v
          The value of the Agreement and its provisions on rates has not
been diminished.by the 'fact that the volume of traffic carried' under
the    terms of these tariffs has' dropped over the years .    Today barely
50°/o of international coal and steel traffic is still carried under
the terms of ECSC tariff No' 9001 » as a result of major structural ,
qualitative and quantitative changes in the demand' for transport
(steelworks have been relocated and the coal industry has declined )
and the supply of transport (increased -competition from road traffic
and regions served by inland waterways ). However, this has not          •
lessened the importance of the Agreement and of the tariff arrangements ,
which remain the basi3 for compiling charges and apportioning income
from them between the Railways concerned *
5. • ■ The' following , mainly economic reasons explain why, in spite
of these favourable- comments , it is both worthwhile and necessary to
revise the Agreement :                                   ■ <■   '•
- Not all of its implicit assumptions regarding the development of
     international traffic have been completely borne out . For eJca/nple
     progress towards true economic union has fallen far short of originally
     expectations »  As one of the most important promises of the
     Agreement , namely that international traffic within tho Community
     would eventually be virtually identical to domestid traffic ,
     has not yet been put into practice , it is inevitable that the
     differences between the transport and operating conditions of
     the various railways , and in particular their different cost
     structures, are reflected in the rules for the compilation of
     transport rates .
                                                                       •/ •
 ---pagebreak---                                        - 5 -                 7ΧΙ/ 6·Γ·1. 7 >
  - The 1955 Agreement was drawn up on the basis of the international
     traffic carried "by continental railways . The enlargement of the
     Community has t since 1973 * led to an extension of these tariffs to
     carriage by train ferry . The text of the new Agreement introduces
     more specific provisions to the present arrangements .
  - The present Agreement bears the stamp of the Governments' and the
     Railways' ideas on tariff policy in the 1950s * Some of the radically
     different ideas that have emerged since then have already altered
     the management policy of certain railway networks . The text of the
     new Agreement is designed to make allowance • for the trend tot-sards
     the railways having greater independence and responsibility in
     compiling transport rates .
            The Commission wishes to emphasize this aspect , particularly
  as its recent proposals for the organization of goods transport
  markets within the Community are based on the principle that , as
  regards transport rates and conditions , the Railways' international
  operations in the commercial sector, should break even ,
  6,        When the Agreement is revised these economic and political
  considerations concerning transport must be reconciled with the
  existing obligations deriving from the 3CSC Treaty , This can be
  done with respect to the Treaty and without restricting the railways'
  freedom of action in commercial matters more than is provided for
  in the Treaty ,
, 7.        This is the sense of the major changes proposed in the
  revised agreement .
                                                                             Ά
 ---pagebreak--- The alight drop in the portion of the terminal' charges to be deducted .
as laid down in the Agreement is - designed to increase the railways' , -
income * This change take 3 account of crossing costs frontiers and
can "be justified "by the special features of such operations . Moreover ,
it will simply make a quantitative change in the present rules * The
underlying principle of the present tariff will not "be affected and
               !
there - will still be a non-discriminatory tariff system . which oompliea
with the Treaty .                                           ?
The revised text is "also designed to authorize minimum charges . • The
Commission considers them to be economically justified and commercially
sensible measures which are in the interest of the railways . They
are permissible as long as when they are levied the .rule of non- ,
discrimination is observed.
It is still necessary for EC3G through tariffs to be continuously
degressive * with total distance , the Commission considers it neither
economically justified nor the best solution legally for coefficients
of degressivity to be laid' down in the Agreement . The railways can ..
be trusted to use this freedom wisely to find solutions which comply
with the Treaty. Community arbitration ia provided for in the
unlikely event of difficulties arising in this connection (Article 7)»
Through tariffs no longer have the binding force that they had in
1955 ; since 1963 the Railways have been allowed, when talcing' into
account the market situation, to conclude special agreements to charge
customers lower rates, pursuant to Article 9(3 ) of the CIH. This
is still possible under the revised .Agreement . Accordingly, the
tariffs could also provide a basis for the negotiation of special
rates between carriers and users ; henoe thoy are consistent with
the Commission 's proposals for the future operation of transport
markets .
 ---pagebreak---                                 - 7 -                   Vïl/oSl/ 7-
- However, under Article 70 (3 ) of the ECSC Treaty, authorized
   transport rates which depart from the tariffs must "be
   published. This obligation cannot be questioned. The Commission
   takes the view that practical necessities may determine the
   appropriate ways in which to apply this provision . Experience
   has shown that it is enough for the natural transparency which *
   exists in all the markets to be supplemented by providing
   participants in the market with information on exceptionally
   large reductions in the published tariffs , ■ To this end
   the revised Agreement allows for the 23$ spread adopted in
   Community law. Information can be supplied by the Railways
   themselves , following general Commission practice .
                     s
          During preparatory work on the revision, German Railways ■
came out against including rules on publication in the new
Agreement . They felt that this would prejudice the interests of
the railways vis-a-vis their competitors , in particular the
inland waterwrys , Danish Railways expressed similar , though loss
strong reservations ,
8,        The overall economic impact of revision cannot be
quantified exactly . It should be emphasized that although the'
.Agreement lays down a number of rules on the compilation of
rates , it allows the railways to fix the level of the elements
which determine them ,
          The comparisons of rates (JaJble)     made by the railways
 on the basis' of the tariffs applying in" August 1974> give a
 rough idea of the size of increases that may result .
 ---pagebreak---                                         - 8 -                          ι/7
               For the rest , it is clear that , as at present , the transport
     rate in each particular case will in future be determined by market
     forces if the tariff system is not sufficiently well attuned to the
     market situation *                                     .
III . PARTICULAR CONSIDERATIONS . ,
     9.     • These considerations relate only to the proposed amendments
     to the present te;rt of the Agreement of 21 Narch 1955 as supplemented
     and amended "by the three Supplementary Agreements of 1 Ifey 1956, 1 May
     1959 and 1 March 1974^" •
     10.       General enacting terms (new version)
               It is proposed that all the titles and headings in the
     Agreement should be deleted, leaving only a continuous numbering .
               In addition, both citations have been slightly amendod.
     11 »     Article 1 (new version )
               In the definitions the High Authority ant3, the Special Council
     of Ministers have been replaced by the Commission and the Council of
     the European Communities to take into account the changes resulting
     from the merger of the executives .
               The railways are now described as undertakings and not admini­
     strations , in accordance with the terminology now in use .
              The minimum charge is now defined separately ; it was previously
     included in the definition of the terminal charge (see paragraph 14.3
     below) .
              Other definitions have been expanded to include sea crossings
     by train ferry .
                                                                            ♦/.
       For the relevant OJ references see footnote 1 on page 1 of this
        report . .
 ---pagebreak--- 12 .     Article 2 (new version )
         Thi3 Article specifies that the tariffs haven been drawn up by agree­
         ment between the railway undertakings and defines the scope of
         through international tariffs , .                 ,
(1 )
0        The revised definition in the first sentence of paragraph 1 incor­
         porates that from Article 2 of the Agreement and that from Annex.         ,
         III ( Supplementary Agreement of 1 May 195^) and does not alter the
         present scope of the Agreement ,
(2 ) .   However, the second sentence of paragraph 1 enables the Railways ,
         in certain circumstances ,, to bar certain routes which are in
         demand but which are uneconomic for them .          For such routes to be
         barred , the unanimous agreement of all the Railways concerned must
         be obtained and the provisions of the ESC and EC3C Treaties: . observed
         i v e . no.- discrimination within the meaning of Article 70.
       " This restriction does not , however , affect the fact that ECSC
         tariff no , 9001 is of general application .
         The text of paragraph 2 has not been altered ,
13 ,     Article '3 ( old version )
         This Article , which required the Governments to seek ways of
reducing and ultimately eliminating the particular .burdens imposed on
international traffic and was aimed, chiefly at customs formalities , has
been deleted.     This does not mean , however , ;bhat .all the difficulties that
arise at frontiers have been eliminated and that the Community need no
longer concern itself with the possible facilitation of frontier crossing.
The problem now arises in a wider form and needs to be solved for
transport as a whole within the framework of the ECSC and EEC Treaties .
 ---pagebreak---                                          10 -
14 .      Article 3 (new version ) – Article 4 ( old version )   -
14.1      This Article lays down the rules - on the compilation of international
tariffs . As at present , carriage charges are to . comprise the sum .of a
terminal charge and a distance charge multiplied "by a coefficient of
degressivity depending on the total distance , • An innovation is the
addition of a charge for the sea crossing by train ferry, calculated as
provided for in Annex I ,
14.2 . The proposed terminal charge (to ) consists of 2 x $ (instead of
2 x 50^) of the terminal charges of the importing country and the , exporting
country and 5<$> of the terminal charges of the transit country. At present
no terminal charge is included for transit .
          This amendment is designed to take into account the differences
in the costs involved in terminal charges between domestic or international
traffic .
          According to the railways , if one takes an index of 100 for the
total cost involved in terminal charges for a consignment in domestic
traffic , the total cost in respect of those charges in international
traffic – for all networks – falls within the range :
          66–85 for imports and exports , and                        ■>, "
          36-70 for transit traffic.
          In 1<?55 1 "the Governments of the Member States and the High
Authority thought that the existing differences would -disappear fairly
swiftly as a result of economic integration .; In the Agreement itself
(Article 3 ) they committed themselves to encouraging this trend in seeking
"with the collaboration and assistance of the Hi gh Authority, measures for '
reducing , with a view to their ultimate elimination , the particular burdens
imposed on international coal and steel traffic which affect transport
costs ". In spite of some simplification of frontier customs procedures , the
stage of economic integration at which no differences exist between
 ---pagebreak---                                     - 11 -                  VII/681/75-E
international and domestic traffic has not yet been reached . Moreover ,
it can "be seen that despite the progress made by the Railways concerning
the international carriage of goods ( operating conditions and in parti­
cular the interpenetration of railway networks ) there are still differences
between international and domestic traffic .
14.3      Paragraph 4 of Article 3 introduces a new provision for
calculating the minimum charge for international traffic where a railway
applies a minimum charge for internal traffic . This provision embodies ,
in the Agreement , the principle of minimum charges with the proviso that
for international traffic they are to be calculated having regard to the
reduced terminal charge referred to in Article 3 (2 ).
          In the past , because of inadequate distance charges in some
cases , it has bee'n found that the terminal charge is not always high
enough to bring short-haul charges to a satisfactory   level . As a result ,
the railways have had to introduce minimum charges -   to an increasing
extent in recent years .
          The question of minimum charges , which has provoked many disputes
in the past , must in future, be seen as part of a policy involving the
compilation of charges by independent and responsible undert akings .
15 •      Article 5 ( old version )
          This Article , which introduced one-year transitional provisions ,
has been deleted .
 ---pagebreak--- 16        Articlej(new version )
          This Article , replaces Articles 6–10 of "Title IV , Coefficients
of degressivity".
16.1    , It provides for the railways , "by common agreement and talcing into
account their commercial interests , to agree on brackets for the coeffici­
ents of degressivity. These brackets may be altered subject only to the
unanimous agreement of all the Member States' Railways . Consequently , they
do not need to be published as an annex to the Agreement .
          On the other hand, the limiting coefficients of degressivity fixed
in the 1955 Agreement have been retained .
          Two classes of bracket for the coefficients of degressivity from
101 km upwards , are proposed , one for fuels and ores , the other for scrap
and other products , as indicated below, but this is              .v
unlikely to disturb the present tariff situation on the various markets .
To be sure , it is a backward step compared with the harmonization called
for in Paragraph 10 sub-paragraphs 2 and 3 of the Convention on the
Transitional Provisions .    The differences which still exist between the .
various railway undertakings + costs have prevented the application of this
provision . Moreover, tariff policy itself is no longer postulated on the
same principle . Lastly, the economic problems of 1955 » mainly cpncerning
                                              «                     – «
the carriage of coal and steel between Germany and France , were solved
with the change j in the position regarding competition especially as a
result of the canalization of the Moselle .
 ---pagebreak---                                     - 13 -
16.2     To implement the revised Agreement , the railways have agreed
to introduce the follo'-jing brackets forthwith :
(a )     Solid mineral fuels and ores
         Upper limit (minimum degressivity) :
         – up to 200 km                      Scale II as at present ;
         – 201-270 km                        Scale VIII as at present ; \
         – 271 km and over                   coefficient of 0.8247 as at present
         Lower limit (maximum degressivity ) Î
         - up to 250 km              :       Scale la ( obtained "by applying
                                                        the formula
                                             f (d) = l/ ~(l-a2 ) (1- W
                                             where a is 1/6 )
         – 25I km and over           :       Scale Va ( obtained "by progressively
                                             decreasing - by 2.5$ to 26fo -
                                             the present coefficients in
                                             Scale V ).
         Limiting coefficient        :       0.70 as at present .
(b )     Scrap and other iron and steel products
         Uppcr limit (minimum degressivity )
         – up to 200 km              :       Scale IV as at present ;
         - 201 km and over           :       Scale XIII as at present .
         - lower linit (maximum degressivity )
           up to 200 km              :   1
                                             Scale. II as at present ;
           201 km and over           :       Scale VIII as at present
         - limiting coefficients :
           . scrap , pig iron and crude steel         : 0.75 as at present
           . semi-finished products , special products : 0.80 as at present
           . finished products                        :  O . 85 as at present
 ---pagebreak---                                   - 14
17 .  Article 5 (new version)
      This Article replaces the present Articles 11 and 12 . Its provisions
incorporate the essence of the present Article 12 and do - not make any
fundamental changes .                                 "           - ' ■ •
18»   Airticle 6 (new version)
      Paragraph 1 corresponds to the beginning of the present Article 13 .
                                                                ν  κ
      Paragraph 2 aims at ensuring consistent and adequate market trans­
                                                            ' ι
parenoy". s in accordance with Recommendation No . l~ol , of the ECSC High
Authority of 1- March 1961 , and the measures taken by the Governments to
implement it . .
19»   Article 7 (new version )
      This is a new Article . It makes provision for Community arbitration.
Disputes would be referred first to the Commission , and subsequently, if
necessary , to the Council in exceptional cases where the railways cannot
solve their tariff problems by themselves , particularly if agreemont is
not reached in the negotiations- to alter the bracket spreads of coefficients
of degressivity.
20 .  jrticle' 8 (new version)
      This provision defines , for traffic with Great Britain, the *
conditions of application of the rules of this Agreement . , - ..
 ---pagebreak---   21 .   Articles 5-12 (new version )
         ii i ■! i ri ■ ■ i ■ ni ■    '
       /
         The3e Articles ,' tohich deal with the settlement of differences by
 ■Jf'" Court of Justice of *;he European Communities and the final provisions
/
 are fundamentally the same         the previous Articles_ 16–19 . The       v
  Commission considers that to fnalce the system more flexible , revision may
 "be begun without any prior condition or stating of grounds*' ■
  22 .   Annesil (new version ) :
         The previous Annexes I and 13^ concerning special arrangements and
 the scales for the different coefficients of degressivity have been
 deleted E.S they are no longer needed . The provisions of Annex III have
 been incorporated in Article 2 of the revised Agreement .
         The new Annex I lays down the special rules concerning charges
 for the carriage of coal and steel by train ferry.
         These rules , which were unnecessary when the Agreement of 21 March
 1955 was drawn up – as there was virtually no train-ferry traffic between
 the original six Member . States - are essential in the enlarged Community .
 But since through train–ferry traffic with a single consignment note
 comes under ECSC rules , some of the definitions and rules in Articles 1 .
 and 3 need to be amplified . Article 3 refers to Annex I for the charges
 for carriage .by train ferry. This Annex lays down the special rules
 adopted for calculating the sea-crossing distance for charging purposes
 and the conditions for applying special charges 'for this distance . 'The
 rules are those in force at present for carriage by train ferry in general
 and , as from 1 April 1975 » "to and from Great Britain in particular .
 ---pagebreak---                                                                   TABLE
              Sxamplss of routes providing a comparison between
              carriage charges under the present -Agreement .and
              those resulting from the revised agreement
                              (August 1974 tariffs )
                                Distance   PRESENT AGREEMENT     REVISED AGREEMENT '
                                 kn
Germany / France
Tariff 1301                  KVI            Unscheduled CT
Hhexnkamp/Bully-Grenay : DB        109      FF        15.88
                         SNCB      171
                                   116
                                            "
                                             "
                                                      18.16
                                                      11.68
                                                                 " 20"W |+12^
                         SNCF
                                                                 "      13 -75 ( 17
( ooal )                           396       "        45.72
                                            s 55 xa = 3 rsi;
                                                                 +         5*53.    12.10%
Germoa-iy/Franc e
Tariff 1333-25              .WW             Unscheduled CT
Nounkirchen ( Saar )/Lyons : DB     28      FF        11.64
                                                                 **              \+£%l
                         SNCF       460      "        43.20      W      / C Q?
                                                                        45.92    \+ 2.72
                                                                                 ( 6.W0
(wire rod)                          488                 4.84            gO.OS
                                                                 +         5.24       9.5655
LvDcembourg/Bslgi^im ■
Tariff 3 9001     '      '   NW                     SW
                                                                                 (+24 .
Esch-Bolval/Antwerp     ! CFL .     20      BF 107               BF 131 -
                                                                                 ( 22.43/Î
                         SNCB      262      "       343          "     354
                                                                                 (+11 ;
                                                                                 ( 3.2l£
(finished products )               282       "      450          (I
                                                                      135
                                                                 +      35 :
Netherlands/Germany
Tariff 9001 :                NW
Beverwijk/Faller sleben      NS    200      PI        24.90    ■ Pl              r
                             DB    281                39.80      "      4IsM
(finished products )               481                64.70      "      67.79
                                                                         > 7.79       3.37/0
                                                                          3.09
Denmark/Germany
Tariff 9001                  NW                     SW
Copenhagen-Dortmund/
Sving
                           DSB     210      Dkr 25.5 ( 1 )       Dkr 26.5 ,+ 3*92^
                             DB    42|
                                   70S
                                               " 122.2              w" 125.3     ( *L
                                                                                 (x
                                                                       151.8 * 2 « 53/»
( scrap)                                       " 147.7               " 151.0
                                         ( 1 ) Temporary measure +        4.1        -2..
                                                2 tonc/3
 ---pagebreak---                                   Distance PPJ2S3NT AGRE3M1ÏIT R3VISSD AGREEIENT
                                    km
Belgium/ltaly
Tariff 9001                    NM                  SH
                                                                              (+ 11
Liege/Turin                 SiiCB   172     BP   221 .          BP   232 .-
                                                                              ( 4.98fo
                                                 533.69                       (+ 52.29
                            SïïCP   714     tl
                                                                      535.98
                                                                              (    9.80$
                                                                              1+   9
 ( scrap )                     PS   101     Tl
                                                  80.58         ff
                                                                       39.58
                                                                              ( 11.17$>
                                    987     II
                                                 835.27         II
                                                                      907.56
                                                                +      72.29       8.65$
                                        • –
Belgium/Italy-
Tariff 9001                    m                   S!f
Ghent- Sidmar/              SLîCB   281     BP   367 .- •       BP    378 .-  (+ 11
Li lan Par                                                                    (    3 .- *
                            SNCF            It
                                                 6l6,69         ti
                                                                      668,98
                                                                              (+  52.29
                                    714
                                                                              (    8.48/o
                               PS   237     II
                                                 184.32         II
                                                                              (+   9
                                                                     ^2_3JL32 (  • 4.88/0
(finished products )              1 232     ~T 168.01           "~T 240.30
                                                                   +   72.29       6 . 19/0
Prance/Belgium
Tariff 3232                    Fi           Scheduled CT
SNCP                                                            PP
                                                                              (+ 0.60
                                     54     PP     2.93                 3.53
                                                                              ( 20.48$
                                            II                  M             {+   1.47
SNCB                                172           10*24                11.71
                                                                              (   14.36fo
 ( iron ore )                       226     If
                                                  13.17                15-24
                                                                    +   2.07      15.72/o
1TB : Ptf = privately-owned wagon (i.e. not .belonging to railway network )
        CT =3 complete train-load
        U¥ » network wagon ( i.e. belonging to railway network)
        SW a single wagon-load
 ---pagebreak---                                              BRAFf
          ' *v          • •* ■ * ;    •»*    AOREEt-IElIx .• > - .v . .. . .   ...        . .»        < .
■ -     •■ ■■ . «   , - fc ..-r    v. on .through international , . , , , ... ....                   T. . (
                                railway tariffs for the carriage
                                           of coal and steel                                              '  v
The.. Representatives of the Governments of the Member States of the
European Coal and Steel Community , meeting in Council ,
Having regard to the Treaty                                          establishing the European
Coal and Steel Community (hereinafter called the "Traa,ty" ) , and in
particular Article JO thereof , '■
Having regard to the Convention on the Transitional Provisions
 (hereinafter called the "Convention"), and .in particular sub-paragraph
 (2 ) of the third paragraph, thereof ,
                                                       1               ' •   ■     ,< > .  *.              1  ..
HAVE AGREM) AS POLLOVFS :                       , .                                           ■ •
                                                Article 1
In this' Agreement ;
" Commission "    means
                                                     i    ■                                   'vT- r
          - the Commission of the European Communities ;
"Council " means
          - the Council of the European Communities :
" Coal and Steel " means
          – the products listed in Annexes I and III to the Treaty; ■
 ---pagebreak---  "Railways " means
        - the railway undertakings running the mam networks of the Member
            States operating international traffic and the railway undertakings
            participating in the tariffs of those vtndertakings ;
"General internal tariffs " means
        - the tariffs applicable to internal traffic in like manner to all
            like users in one of tho Member States ;
"Through international tariffs " pieans                                ...
        - the general rates and conditions published for and applicable to
            the carriage of coal and steel under a single contract of carriage
          , on the basis of the International Convention concerning the .
            Carriage of Goods by Rail ( CIM);
"Transit point " means
        – the frontier point or the frontier etationro*      * ro;:       - c.
            the transit station as determined in accordance with Article 10 of
            the CIM;
"Total .journey" means
        – the journey from the forwarding point to the point of destination
            of a consignment including, where appropriate , the journey on the
            train ferry routes get out in the list provided . for dn Arti'Cle 5
         , of the CIM ;
"Section of the .journey" means
        – any one part of the total journey carried out on the railway lines
            of the forwarding country, country of destination or transit country
            including, where appropriate , the journey by train ferry;
" Sectional distanc e " means
        – the length of a section of the journey as laid down in the tariffs
            of the railways concerned for their internal traffic ;
 ---pagebreak---                                        - 3 -
"Total distance " means                                                 •' -,   •» -,
          the Slim of tlie sectional distances ;
"Terminal charge "means'
       – the rate per tonne obtained "by projecting the scale of charges
          back to a distance of 0 km :
"Distance charge " means
       »- the carriage charge less the terminal charge ;                      ^
"Minimum charge " means
       – the minimum carriage charge levied irrespective of the distance ;
•Œegressivity " means
       – the decrease in the distance charge per tonne/kilometre as the
          distance increases !
"Basic distance charge " means
       – the distance charge per tonne/kilometre up to the point from wliich-
        . degressivity begins to qperatej                        • '* •
                                '
"Coefficient of degressivity " means             ,
       - the figure obtained by dividing the distance charge pei- tonne/
          kilometre for a given distance by the basic distance charge .
 ---pagebreak---                                     Article 2
 (1 )      The through international tariffs shall be drawn up or modified
by rv-'reernent between the railway undertakings .
 (2)       They shall apply on all routes within the European Communities
          between Member States , and.
«•        to and from third States , where the consignments in question are
           carried directly over Connecting sections, of th6 railways
           of two or more Member States *
           The railways may , by common agreement and in compliance with the
          provisions of the Treaties , establishing the European -Coal . and
           Steel Community and the European . Economic Community , decide
           not to apply through international tariffs oii certain
           itineraries , where this is warranted by . the commercial
           interests of ail the railways concerned .
(3)       The detailed description of the products covered by through inter­
national tariffs .shall be given in a uniform nomenclature .
                                    Article 3
(1 )      A carriage charge under through international tariffs shall
comprise the sum of a terminal charge and a distance charge and , where
appropriate , a charge for a sea crossing by train ferry , calculated in
accordance with the provisions of Annex I.
(2)       The terminal charge shall consist of the sum of
-         70% of the terminal charge under the internal tariff in the
          forwarding country ;
-         "JO/o of the terminal charge under the internal tariff in the
          country of destination ;
-         5Ofo of the terminal charge under the internal tariffs in the
          transit countries .
These charges shall accrue to the railways concerned .
 ---pagebreak---  (3)    The distance charge shall comprise the sum of the sectional charges
 of the participating railways . The sectional charge for each railway shall
"be obtained by multiplying its basic distance charge by the sectional
distance and by the coefficient of degressivity of the general internal
tariffs corresponding to the total distance of carriage excluding, where
appropriate , the distance of the sea crossing by train ferry where it is
disregarded pursuant to Annex . 1 .                             ■
 (4 ) " V'here a railway applies a minimum charge for internal traffic ,
such charge shall be calculated for international traffic by
 taking account of the reduced terminrl charge ae indicated in
paragraph ( 2 ) above .
                   ■"      !'       Article 4             ^   ■    ■, V
 (1 )   For the purpose of calculating the degressivity of through
international tariffs , the railways shall , by common agreement and taking
into account their commercial interests , agree on brackets for the coeffi­
cients of degressivity of their general internal tariffs .   These brackets
may be varied according to the nature of the goods or the category of
traffic .
(2 )    The coefficient of degressivity for through international tariffs
shall be calculated for distances up to the maximum possible within the
Community. If a coefficient of degressivity of a general internal tariff
is lower than the relevant coefficient laid down below , this limiting
coefficient shall apply when calculating the sectional charge . The
limiting coefficients of degressivity shall be fixed as follows :
Fuels , ores                            0.70
Scrap , pig iron and crude steel        0.75
Semi–finished products and special
                          products      0.80
Finished products                       O . 85
However , the sectional charge may not in any circumstances exceed the .
internal distance charge for a distance equal to the sectional distance .
 ---pagebreak--- (3)   - The railways shall inform the undertaking administering the through
international tariffs of the coefficients of degressivity of their general
internal t'ariffs .
                                   Article 5
                         /
(1 )    The through international tariffs shall enable carriage charges
from and to all stations open for coal and steel traffic to be calculated .
(2 )     -i'he entry, into force of any amendments to through, international
tariffs shall take place in ac cordance with the provisions governing
the international carriage of goods by rail ..
                                   Article 6
(1 )    The through international tariffs shall be published.
(2 )    Charges more than 23% lower than the published tariffs referred to in
paragraph (l ) above , and the relevant conditions of carriage shall be com­
municated by the railways , on request , to coal or steel producers , traders or
consumers . To this end , the railways concerned shall publish in their
tariff lists the routes and goods for which such charges have been agreed .
                                   Article 7
(!)       If regotiations between the railway undertakings for the
 establishment or the amendment of the through international tariffs
 referred to in Article 2 do not result in agreement and , in
 particular , if agreement is not reached on the brackets for the
 coofficients or degressivity referred to in Article 4 , the raylwaysV
 concerned shall refer the dispute to the Commission .
 ---pagebreak---                                         -.7
 ( 2)    Y/ithin one month of the date of the reference of the dispute
 as1 specified in paragraph ( 1 ) above, and after consulting the
Committee referred : to in Article 6 ( 1 ) ('a ) of Regulation ( EEC!)
 No                  r the Commission shall takes. -a decision Concerning the
 tariff measure in question . The Commission shall communicate its
 decision to the railway undertakings concerned and to the Kember
 States and shall publish it in the Official Journal of the European
 Communities ,        ..                     ■-
(3 )    The Commission ^ decision shall take effect one month after the railway
undertakings have "been notified unless a Ilember: State refers the question to
the Council within the said period * • In this case the Council shall
 immediately inform the railway undertakings concerned and , acting
 by a qualified majority , shall take a decision within one month , whieJ
 it shf-21 communicate to the railway undertakings concerned and shall
 publish in the Official Journal of the European Communities .
                                      Articls 0     -
        As long . as the British Railways Board does not apply general internal
goods tariffs , the rules of this Agreement shall be applied by analogy
          for the purpose of calculating the sectional charge in Great Britain
in accordance with through international tariffs .
                                      Article 9
        TAe Court of Justice of the European Communities shall have
jurisdiction , undqr the conditions laid down in Article 89 of the Treaty,
to decide any dispute between Member States as to the interpretation or
application of this Agreement ,
* Regulation concerning a system for observing the markets for the
   carriage of goods by rail , road and inland waterway between the Member
   States ,
                                    >
 ---pagebreak---                                       - 3 -
                                     Article 10
         At the request of the Government of any Member Stance' .
or of the Commission , a meeting in Council of the Governments , with the
participation of the Commission , shall be convened to decide on any amend­
ments to this Agreement .
                                     Article 11
         It is hereby recognised that by this Agreement , the Governments
of the Member States have undertaken only those obligations which are
within the scope of the Treaty and of the Convention and which have as
their purpose the implementation of those instruments .
                                     Article 12
 1.      The text of this Agreement , as recorded in the minutes of the
proceedings of the Council , shall be published in the Official Journal
of uhe European Communities .
 2.       This Agreement shall enter into force ten days after publication .
 The Agroement of 21 March 1955 (l ) and- the three Supplementary
Agreements of 1 Kay 195"$ (2 ), 1 May 1959 ( 3 ) and 1 March 1974 (4 ) shall
expire on that date .
(1 ) OJ ECSC No . 9 of 19.4.1955
(2 ) OJ ECSC No . 10 of 30.4.1956
( 3 ) OJ EC No . 22 of 9.4.1959
(4 ) OJ EC No . L347 of 17.12.1973
 ---pagebreak---                                     ahnek
           to the Agreement of          on through international
            railway tariffs for the carriage of coal and steel
           SPECIAL RULES CONCERNING CHARGES FOR THE CARRIAGE OP
                       COAL AND STEEL BY TRAIN PERRY
     -  The follovring provisions shall apply to the carriage of coal and
steel "by train ferry with a CIM through consignment note :
1.      Train ferry within a network
–       the sear-crossing distance for charging purposes shall he
        included in the sectional distance of the network concerned ;
–       the sectional charge of this network shall he the product of
        its basic distance charge , the sectional distance as defined
        above and the coefficient of degressivity resulting from
        the provisions of Article 4 of the Agreement ;
–       a surcharge may be imposed where appropriate .
 ---pagebreak---                                       - ΙΟ-
Ι
  2,      Train ferry linking two networks
          Ths networks in question may adopt one or other of the following
  rules :
  (a )    the sea-crossing distanpe for charging purposes shall be
          included in the sectional distances of the adjoining networks ,
          on the basis of the agreements between the two networks
          concerned la this case charging is governed by the
          usual rules ; a surcharge may be imposed where appropriate ?
  (b )    ths sea-crossing distance shall be disregarded for the
          purpose of establishing the total distance of carriage ;
  -       the sectional charges of the adjoining networks shall be
          established according to the visual rules ;
  –       a special charge for the sea crossing by train ferry shall
          be added to the carriage charge .