CELEX: 51974PC1726
Language: en
Date: 1974-10-23
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for unwrought magnesium falling within subheading No 77.01 A of the Common Customs Tariff (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM (74) 1726
Vol. 1974/0275
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(74)1726 final
                                             Brussels , 23 October 1974
                                 Proposal for a
                       - REGULATION ( EEC) OF THE COUNCIL
              on the opening, allocation and. administration of a
            Community tariff quota for unwrought magnesium falling
           within subheading No 77.01 A of the Common Customs Tariff
                 ( submitted to the Council by the Commission)
  C0M(74) 1726 final
 ---pagebreak---                               EXPLAITATORY MMORÂMlHJM
   1 . In an exchange of letters with the Nordic Delegation , the Community
  has undertaken to open at the "beginning of each year a duty-free tariff
  quota for a quantity such that Community requirements not covered "by
  Community production may be imported duty-free .
  2.   So far , "because of the continually changing pattern of Community
  consumption and production , it has proved difficult to assess the quota
. volume at the "beginning of the year on the "basis given in the undertaking .
  In recent years , the assessment of this volume has proved extremely
  unreliable since it is impossible to estimate for a given year either
  probable consumption in Germany ( the main user ) or Community production ,
  which is likely to increase appreciably as a result of extensions to
  existing plant .    For all these reasons , the initial tariff quotas for the
  years concerned have , on a proposal from the Commission , been fixed at
  average levels calculated conservatively , without precluding adjustments
  during the year , on the basis of the most recent statistics and fore­
  cast s .
  As this situation has remained virtually unchanged , the likely levels
  of Community production and consumption in 1975 cannot be reliably
  estimated at present |    this will only become possible in the course of the
  tariff year concerned .
  Consequently , it is proposed to follow the method adopted for recent
  years , namely , to open on 1 January 1975 an average tariff quota , the
  volume being 12 000 metric tons , and to adjust this volume during the
  year if additional needs come to light in any Member State .
 ---pagebreak---                                     - 2 -                      : Ί· Ζ -*-
3.   In the absence of more accurate statistics regarding the patterns
of Community production , the volume of 12 000 metric tons has been
subdivided between extra-pure magnesium , unwrought magnesium not in
alloy and magnesium in alloy in accordance with substantially the same
percentages as used for the quota opened so far in respect of 1974 and in
accordance with the immediate requirements notified by the Member States .
4.   The Commission proposals on the distribution of the quota volumes
allocated *to the three qualities of unwrought magnesium have been
broadly guided by those covering the same products in preceding years ,
so that the allocation of the shares again conforms to the rules normally
followed ( calculation based on previous reoords and forecasts for 1975.)*
As for the form of administration , it is proposed, as has also been
customary , to set up for the three quota volumes a reserve into which
any surplus portions of the shares would be returned and from which
the Member States which still had requirements to be satisfied could ■
draw supplementary shares .
                                      *
                                *          *
 ---pagebreak---                                Proposal for a
                      REaUMTIO# ( 552C) OF THE COUNCIL
           on the opening , allocation and administration of a
           Community tariff quota for unwrought magnesium
           falling within subheading No 77.01 A. of the Common
           Customs Tariff
THE COUFCIL OP THE EUR0P2LAN COMKUMTISS ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof j
Having regard to the proposal from the Commission^
Whereas , in an exchange of letters of 30 June 1 957 « confirmed" in an
exchange of letters of 16 April 1973 , the European Economic Community
has undertaken , as regards unwrought magnesium falling within tariff
subheading No 70.01 A , to open an annual Community tariff quota for a
quantity such that Community requirements for the said goods not covered
by Community production may be imported duty-free ^
Whereas in order to establish the volume of the Community tariff quota an
assessment must be made of the total consumption by the user industries of
the Member States during the tariff year and of the Community production
level for the- same periods whereas even a very rough assessment of total
consumption and production for 1975 will be highly unreliable since it is
at present impossible to estimate either , the volume of unwrought magnesium
used in certain Member States in the year under consideration or the likely
level of Community output j whereas there is in any case no likelihood of
Community production meeting the full demand in the tariff year$ whereas
the annual quota volume must therefore be fixed at an appropriate level ,
                                                       •Λ
 ---pagebreak--- probably about 12 000 metric tons5   whereas this assessment is based on
conservative estimates and later adjustments are not excluded;      whereas
the duties to be applied by the new Member States tinder the said tariff
quota must be in conformity with the relevant provisions of the Act of
Accession;
Whereas ths markets in magnesium containing not less than 99*95$ of
pure magnesium (hereinafter called " extra-pure magnesium") , in magnesium
containing not less than 99*8$ by weight of pure magnesium ( hereinafter
called "unwrought magnesium not in alloy") and in magnesium containing
less than 99*8^- by weight of pure magnesium ( hereinafter called "unwrought
magnesium ii alloy") differ considerably; whereas a distinction should
therefore be made between the three qualities and the quota volume under
consideration should be divided between them ;
Whereas , taking into account an overall , provisional . quota volume
of 12 000 metric tons , the immediate need to import some 700 metric
tons of extra-pure magnesium , 1 500 metric tons of unwrought magnesium
not in alloy and 9 800 metric tons of unwrought magnesium in alloy has
been established; whereas these figures appear justified both by the
former ratios of consumption of these qualities to total consumption of
magnesium and by the short-term outlook for Community production of
these qualities of magnesium;
Whereas equal and continuous access to the quota should be ensured for
all importers and the rate of levy for the tariff quota should be
applied consistently to all imports until the quota is used up ;     whereas ,
in the light of the principles outlined above , a Community tariff
arrangement based on an allocation between the Member States would seem
to preserve the Community nature of the quota;    whereas to represent
 ---pagebreak---                                      - 3 -
 as closely as possible the actual development of the market in the said
 goods the allocation should follow proportionately the requirements of
the Member States calculated both from statistics of imports from third
countries during a representative reference period and from the economic
outlook for the tariff year in question^
Whereas , however , the available statistics of imports into the Ilember
States from third countries to which no equivalent tariff preference was
applied under any other preferential arrangements only cover unwrought
magnesium in alloy and unwrought magnesium not in alloy;     whereas during
the three years for which statistics are available such imports represented
the following percentages of total imports of the said goods ;      whereas
on the basis of the information at present to hand it appears that imports
of eirtra-pure iaagnesium are almost wholly into the United Kingdom , where
they are included statistically with unwrought magnesium not in alloys
- for unwroughu magnésium net in ail05 - •
                                       1 •
                                         1971     1972      - '5-73
Bénélux                                    8.39   12.27        6.59
Бешаагк                                    0.10    0.09        0
Germany                                  60.47    62.42      70.34
France                                     3.75    3.53        9.45
Ireland                                    0.10    0.09        0.01
Italy                                      1.16    0.44        2.49
United Kingdou                           26.03    21.16      11.12
- for unwrought magnesium in alloy :
Bénélux                                    0.18    0.32        3.18
Denmark                                    0.04    0.06        0
Germany                                  94.67    97.51     93.33
France                                     1.86    0.06        0
Ireland                                   0.05     0.06        0.01
Italy                                      3.11    1.87        3.46
United Kingdom                            0.09     0.12        0.02
 ---pagebreak---                                       - 4 -
 Whereas in view of these factors and of market foreoasts for these products
 in 1975 * i"t is necessary to allot to the United Kingdom a preponderant
                                                           on an experimental basis ,
 share of the quota volume of unwrought extras-pure magnesiuiV allotting
 smaller shares to the other Member States , while safeguarding the                   *
 Community character of this quota by setting up an adequate reserve ,
 and to establish the initial percentage shares for the other qualities
 of magnesium roughly as follows :
- for unwrought magnesium not in alloy :
   Bénélux                             1 5.60
   Donmr-rk                              0.06
   Germam'-                            62.50
   Franoe                                4. 50
   Ireland                               0.03
   Italy    .                            0.40
   United Kingdom                      16.91
- for unwrought magnesium in alloyj
   Bénélux                               2.12
   Denmark .                             0.03
   Germany                             96 . 50
   France     ,                         0.03
   Ireland ,                            0.02
   Italy      ,                         0.80
   United Kingdom          1            0.50
Whereas , to take account more accurately of future import trends for the
said goods , the total quota volume £>r each quality of unwrought magnesium
should be divided into two tranches , the first being allocated among the
Member States and the seoond held as a reserve to cover at a later date the
requirements of Member States who have used up their initial shares ;
                                                        ./
 ---pagebreak---  whereas to give importers some certainty the first tranches should be
 fixed at 500 metric tons of extra-pure magnesium , 1 250 metric tons
 of unwrought magnesium not in alloy and 8 000 metric tons of unwrought
magnesium in alloy , the "balances being held as the reserves !
Whereas the initial shares may "be used up fairly quicklyi     whereas , there­
 fore , to avoid disruption of supplies , any Member State which has almost
used up one of its initial shares should draw a supplementary share from
the appropriate reserve ^   whereas this must be done by each Member State
as each one of its supplementary shares is almost used up , and as many
times as the reserve allows ^   whereas the initial and supplementary
shares must be valid until the end of the quota periodj      whereas this
form of administration requires close collaboration between the Member
States and the Commission , and the Commission must be in a position to
follow the e:rt ent to which the quota volume has been used up and inform
the Member St ate S3
VJiereas if , at a given date in the quota period , a. Member State has a
considerable quantity of one of its initial shares left over , it is
essential that it should return a significant proportion thereof to the
appropriate reserve , to prevent a part of one or other quota volume from
remaining unused in one Member State while it could be used in othersj
Whereas since the Kingdom of Belgium , the Kingdom of the Netherlands
and the Grand Duchy of Luxembourg are jointly represented by the Benelux
Economic Union any measure concerning the administration of the shares
allocated to that economic union may be carried out by one of its members ,
 ---pagebreak---                                        - 7 -
HAS ADOPTED THIS REGULATION:
                                     Article 1
1,  During the period from 1 January to 31 Deoeniber 1975 a Community tariff
quota of 12 000 metric tons shall "be opened in the Community for unwrought
magnesium falling within subheading No 77*01 A         the Common Customs Tariff .
2.  The volume of the tariff quota shall "be divided as follows ;
     ( a) as to 700 metric tons for unwrought magnesium containing not
           . less than 99*95?° by weight of pure magnesium (" extra-pure
             magnesium"), intended for the nuclear industry and under oustoms
             control or the administrative equivalent ;
    ( b) as to 1 500 metric tons for unwrought magnesium containing not
             less than 99*8$ but less than 99*95$     weight of pure magensium
             ("unwrought magnesium not in alloy" ) 5
     ( c ) as to 9 800 metrio tons for unwrought magnesium containing less
          • than 99*85® by weight of pure magnesium ("unwrought magnesium in
             alloy" ) .
3.  Imports of the said goods may , not be counted under this tariff quota
if they are already free of customs duties under other preferential
tariff treatment applied by certain Member States , in particular under
free trade agreements .
4.  Within this tariff quota the Common Customs Tariff duties shall be
totally suspended.
5.  Within this tariff quota the new Member States shall apply duties
calculated in accordance with the relevant provisions of the Act of Aocession .
                                    Article 2
1.  The first tranche of each of these quota amounts consisting of
500 metric tons of extra-pure magnesium , 1 250 metric tons of unwrought
                                                                   ,   •/.
 ---pagebreak---                                      - 8 -
magnesium not in alloy and 8 000 metric tons of unwrought magnesium in
 alloy shall be allocated among the Member Statesj       the respective shares
 of the Member States , which, subject to Article 5 » shall be valid from
 1 January to 31 December 1975 > shall be as follows :
 ( a)    for extra-pure magnesium :
         Benelux                         3 metric tons
         Denmark                         1 metric ton
         Germany                         1 metric ton
        France                           1 metric ton
        Ireland                          1 metric ton
        Italy                            1 metric ton
      • United. Kingdom               492 metric tons 5
( b) for unwrought magnesium not in alloy :
        Benelux                       195 metric tons
        Denmark                          1 metric ton
        Germany                       781 metric tons
        Fronce                         55 tnetric tons
        Ireland                         1 metric ton
        Italy                           5 metric ton
        United Kingdom                211 metric tons 5;
( c ) for unwrought magnesium in alloy :
        Benelux                       170 metric tons
        Denmark                         2 metric tons
        Germany                     7 720 metrio tons
        France                          2 met ri o tons
        Italy                          64 metric tons
        United Kingdom                 40 metric tons .
 ---pagebreak---                                     - 9 -
2 . The second tranches , of 200 metric tons , 250 metrio tons and
1 800 metric tons respectively , shall be held as Community reserves .
                                  Article 3
1 . If JCffc or more of one of a Member State' s initial shares as specified
in Article 2(1 ), or of that share minus the portion returned to the
appropriate reserve where Article 5 is applied , has been used up , that
Member State shall without delay , by notifying the Commission , draw a
second share equal to 10$ of its initial share , rounded up where necessary
to the next unit , to the extent permitted by the ".mount of the reserve ,
2. If, after one or other of its initial shares has been used up , $Cf?o or
more of the second share drawn by a Member State has been used up , that
Member State shall, in accordance with the conditions imposed by paragraph 1 ,
draw a third share equal to 5$ of its initial share , rounded up where
necessary to the next unit .
3. If , after one or other of its second shares has been used lip , 9°$ or
more of the third share drawn by a Member State has been used up , that
Member State shall , in accordance with the same conditions , draw a fourth
share equal to the third.
This process shall continue to apply until the reserves are used up .
4. ?y way of derogation from paragraphs 1 to 3 , a Member State may draw
shares lower than those fixed in those paragraphs if there are grounds for
believing that those fixed may not be used up .    It shall inform the
Commission of its reasons for applying this paragraph .
                                                        /
 ---pagebreak---                                     - 10 -
                                  Article 4
 Supplementary shares drawn pursuant to Article 3 shall be valid until
 31 December 1 975-
                                 Article 5
 A Eombsr State which on 15 September 1975 has not used up one or other
 of its initial shares shall return to the appropriate reserve not later
than 10 October 1975 "th® unused portion exceeding 20$ of the initial
 amount . It may return a greater portion if there are grounds for believing
that it may not be used up .
Member States shall , not later than 10 October 1975 » notify the Commission
 of the total quantities of the said goods imported up to and including
 15 September 1975 and charged against the Community quota and any quantities
of the initial shares returned to the reserves .
                                 Article 6
The Commission shall keep an account of the shares opened by the Member
States pursuant to Articles 2 and 3 and shall ? as soon as it has been
notified , inform each State of the extent to which the reserve has been
used up .
It shall inform the Member States , not later than 15 October 1975 , of the
amount still in reserve after amounts have been returned thereto pursuant
to Article 5 .
 ---pagebreak---                                      - 1T -
It shall ensure that the drawing which uses up a reserve is limited to
the balance available and to this- end shall specify the amount thereof
to the Member State making the last drawing.
                                   Article 7
 1.  Kember States shall take - all measures necessary to ensure that
 supplementary shares drawn pursuant to Article 3 are opened in such a
way that imports may be charged without interruption against their
accumulated shares in the Community quota ,
2,   Member States shall ensure that importers of the said goods established
in their territory have free access to the shares allocated to them .
                                             /
3.   The extent to which a Member State has used up its shares shall be
determined on the basis of the quantities of the said goods entered for
home use .
                                  Article 8
Member States shall inform the Commission at regular intervals of
imports actually charged against their shares , '
                                  Article 9
Member States and the Commission shall cooperate closely in order to ensure
that this Regulation is observed.
                                  Article 10
This Regulation shall enter into force on 1 January 1 975-
      This Regulation shall be binding in its entirety and directly
      applicable in all Kember States ,
                                                      For the Council
Done at Brussels ,                                                .
                                                     The President