CELEX: 31989R3723
Language: en
Date: 1989-11-06
Title: Council Regulation (EEC) No 3723/89 of 6 November 1989 on the restriction of exports of steel pipes and tubes to the United States of America

No L 368 / 16                                  Official Journal of the European Communities                                   18 . 12 . 89
                                              COUNCIL REGULATION (EEC) No 3723 / 89
                                                            of 6 November 1989
                       on the restriction of exports of steel pipes and tubes to the United States of America
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                                 Whereas , in order to keep a check on exports , a system of
                                                                          export licences and certificates should be introduced;
Having regard to the Treaty establishing the European                     Whereas it is necessary to provide that export licences
Economic Community, and in particular Article 113                         issued to undertakings shall indicate the undertaking
thereof,
                                                                          engaged in production of steel pipes and tubes within the
                                                                          Community and established in the issuing Member States
Having regard to the proposal from the Commission, '                      that is holding the allocation against which the licence is
                                                                          issued;
Whereas        the     Community          has      concluded     an
Arrangement^ 1 ), hereinafter referred to as 'the                         Whereas, in order to take account of the interests of
Arrangement', with the United States of America under                     distributive undertakings, it must be possible for these
which exports to the United States of certain steel pipes and             licences to be transferred not only between undertakings
tubes originating in the Community are to be limited to                   producing steel pipes and tubes but also by undertakings
certain levels over an agreed period; whereas , moreover, it              producing steel pipes and tubes to distributive
is necessary, pursuant to this Arrangement, to introduce in               undertakings , in particular where the undertakings
the Community measures to restrict the amount of these                    producing steel pipes and tubes decide to sell their products
products exported to the United States ;                                  to such distributive undertakings;
Whereas, in accordance with the Arrangement, the export                   Whereas it appears necessary , and for the moment
restrictions cover steel pipes and tubes originating in the               sufficient, that Member States ensure compliance with the
Community; whereas the origin of these products is                        different provisions of the regime laid down by applying
determined in accordance with applicable Community                        the various penalties provided for in their laws ;
legislation, that is to say Council Regulation (EEC)
No 802 / 68 of 27 June 1968 on the common definition of                   Whereas, in order to facilitate the application of the
the concept of the origin of goods ( 2), as last amended by               envisaged provisions , it is appropriate to set up a procedure
Regulation ( EEC) No 1769 / 89 (3 );                                      establishing close cooperation between Member States and
                                                                          the Commission within a committee; whereas it is sufficient
Whereas, for practical and management reasons, the                        for this purpose to apply the procedure set up in Council
quantitative export limits agreed by the Community must                   Regulation (EEC ) No 1023 / 70 of 25 May 1970
be allocated among the Member States; whereas, in order                   establishing a common procedure for administering
to do so, an allocation method must be established ;                      quantitative quotas (4 ),
whereas, thereafter, the Member States must share out the
amounts allocated to them among undertakings in
accordance with objective criteria;                                       HAS ADOPTED THIS REGULATION :
Whereas utilization of the Community limits, based on
allocations among Member States made in this way, would                                                 Article 1
seem to be in keeping with the Community nature of these
limits; considering that, in particular, the allocation                    1 . Community export limits are hereby established for the
method provides for a maximum use of export                               period 1 October 1989 to 31 December 1990 (hereinafter
possibilities;                                                            referred to as 'the initial period') for the year 1991 and for
                                                                          the period 1 January 1992 to 31 March 1992 (hereinafter
Whereas the allocation among the Member States of the                     referred to as 'the end period'), for exports effected after
total export possibilities which the Arrangement affords                   1 October 1989 from the Community to the United States
 should take account of traditional trade patterns;                       of America (hereinafter referred to as 'the United States') of
                                                                          the steel pipe? and tubes originating in the Community
                                                                          which are listed in Annex I.
Whereas measures must be taken to avoid abnormal
concentration at certain times of exports to the United
States;                                                                   For the purpose of this Regulation, the United States shall
                                                                          comprise United States customs territory and United States
                                                                           foreign trade zones as described in Annex II .
( J ) See page 126 of this Official Journal .
(2) OJ No L 148 , 28 . 6 . 1968 , p. 1 .
(3 ) OJ No L 174 , 22. 6 . 1989 , p. 11 .                                  (4) OJ No L 124 , 8 . 6 . 1970, p. 1
 ---pagebreak--- 18 . 12 . 89                                       Official Journal of the European Communities                               No L 368 / 17
2 . The origin of the products covered by this Regulation                              them, have used less than 40 % of their quota by
shall be determined in accordance with the rules in force in                           30 June 1990 and 33 % of their quota by 30 June
the Community.                                                                         1991 respectively .
                                                                                       The quantities represented by such reductions shall
                               Article 2                                               be allocated by the Commission, after consulting
                                                                                       the Arrangement Committee , on 1 August 1990
1 . The Community export limit for steel pipes and tubes                               and 1 August 1991 respectively so as to facilitate
is hereby fixed at 8,82 % of the United States apparent                                the optimal use and administration of the
consumption.                                                                           Community export possibilities taking account of
                                                                                       the share of Community exports effected by each
In the case of what are termed OCTG tubes, as referred to                              Member State in each product category by 30 June
in Annex I , the Community limit , forming part of the                                 1990 and 30 June 1991 respectively .
overall limit for steel pipes and tubes , is hereby fixed at
9 % of apparent consumption of these tubes in the United                           (c) Where the Community limits for arrangement
States .                                                                               products are adjusted in accordance with the fourth
                                                                                       indent of Article 2 ( 3 ), the Commission shall adjust
The limits shall be calculated by the Commission on the                                the allocation of quantity limits, taking account of
basis of the level of apparent consumption of these                                    the origin of the exports before the entry into force
products in the United States, as laid down in the                                     of this Regulation which gave rise to this
Arrangement.                                                                           adjustment.
 2 . The Community export limits calculated pursuant to
paragraph 1 shall be adjusted by the Commission to take                       2 . The Commission shall hold regular consultations with
 account of revisions of the said United States apparent                      the Arrangement Committee set up by Decision
consumption .                                                                 No 3724 / 89 / ECSC ( ! ) on the situation regarding licences
                                                                              issued and on the measures to be taken with a view to
3 . These limits may also be adjusted by the Commission                       ensuring best use of the overall limit.
after consulting the Arrangement Committee :
— for advance use or carry-over of licences,
                                                                                                          Article 4
— to enable transfers between product categories to be
       made, including transfers between , on the one hand ,
                                                                              1 . The Community exports described in Article 1 shall ,
       the products covered by this Regulation and, on the
                                                                              from the date of entry into force of this Regulation to " 31
       other, those covered by Regulation (EEC) No
                                                                              March 1992 , be subject to the production to the competent
       3722 / 89 and by Decision 3724 / 89 / ECSC (2),
                                                                              Community customs office where the export formalities are
— for additional quotas in case of short supply,                              carried out of an export licence and an export certificate .
 — to take account of exports effected by the Community                       The export licences shall be issued by the competent
                                                                              authorities of each Member State within the limits of the
       between 1 October 1989 and the date of entry into
       force of this Regulation ,
                                                                              amounts allocated to it pursuant to Article 3 .
 under the conditions provided for in the Arrangement .
                                                                              Member States shall fix for each quarter the amounts for
                                                                              which they anticipate that licences will be issued for all
                                Article 3
                                                                              steel pipes and tubes, on the one hand, and for OCTG, on
                                                                              the other; they shall inform the Commission thereof in the
 1 . ( a) The Community quantitative export limits                            first 15 days of the relevant quarter. In doing so , they shall
           established and calculated pursuant to Article 2                   make sure that the export licences for each quarter ensure
           shall be allocated for the initial period, 1991 and                an adequate spread of exports over the whole year, taking
           the end period by the Commission in accordance                     into account the seasonal variations in trade in each
           with Annex III with the exception of any quantities                product category . However, Member States shall not,
           granted under Article 7 of the Arrangement which                   without the prior authorization of the Commission, issue in
           shall be allocated by the Commission on the basis of               any two consecutive quarters licences for amounts which
           the circumstances and conditions under which these
                                                                              exceed 52 % of their allocation in the initial period or
           quantities have been granted .                                     65 % of their allocation in 1991 .
       (b) Notwithstanding         point     ( a),   the     Community
           quantitative export limits to be allocated by the
           Commission in accordance with Annex III shall be                   Member States may, subject to the second subparagraph,
           reduced by 10 % in the initial period and 1991 for                 issue further licences in the initial period, 1991 and the end
           those Member States which , on the basis of                        period respectively, in respect of the unused part of licences
           certificates referred to in Article 4 ( 1 ) issued by              issued which have been returned to their competent
                                                                              authorities in the initial period, 1991 and the end period .
 ( 1 ) See page 1 of this Official Journal .                                  2. Licences shall be issued according to the following
 (2) See page 21 of this Official Journal.                                    criteria :
 ---pagebreak--- No L 368 / 18                                 Official Journal of the European Communities                                  18 . 12 . 89
— compliance with the rules prescribed by this                           concerning the licences and exports shall be laid down by
    Regulation, in particular those concerning the quota                 the Commission .
    allocated by the Commission pursuant to Article 3 ,
— compliance with the traditional export patterns of                                                  Article 5
    undertakings taking account of the reduction principles
    established by this Regulation ,                                     1 . Member States shall charge the amounts set out on the
— where appropriate the taking into account of the                       licences issued by them against their respective allocations
    situation of new producers of pipes and tubes while                  made pursuant to Article 3 , including all licences
    giving preference to traditional export patterns ,                   subsequently transferred to an undertaking of another
                                                                         Member State .
— compliance with the rates of exports to the United
    States as traditionally spread out over the year,                    2 . . Member States shall keep records of the exports of the
— optimum use and administration of the export                           products covered by this Regulation . The products shall be
                                                                         deemed to be exported on the date of acceptance , by the
    possibilities afforded by this Regulation,
                                                                         customs office of the Member State of export , of the export
— compliance with the possibilities                  afforded   by       declaration or of the document provided for in Article 18
    Article 3 ( 1 ) ( b) of this Regulation ,                            of Council Directive 81 / 177 / EEC of 24 February 1981 on
— best use being made of any new possibilities provided                  the harmonization of procedures for the export of
    for , where appropriate, by this Regulation.                         Community goods ( 1 ).
Each licence shall indicate the undertaking engaged in the               3 . The extent to which a Member State has used up its
                                                                         allocation shall be determined on the basis of licences
production of steel pipes and tubes in the Community, and                issued in accordance with Article 4 .
established in the issuing Member State that is holding the
allocation against which the licence is issued.
                                                                                                      Article 6
3 . Transfers of export licences between undertakings
producing steel tubes and pipes, or by undertakings                      1 . Exports to the United States of products which are to
producing steel pipes and tubes to distributive                          be re-exported from the United, States in the same form or
undertakings, may take place after prior notifications to                without having been subject to substantial transformations
the authorities of the Member State in which the                         shall be charged against the allocation of the Member State
undertaking transferring the licence is established . Such               where the licence was issued. Upon production to the
transfers may take place between undertakings established                authorities of such Member State of proof of such
in different Member States .                                             re-exportation from the United States, the allocation of
                                                                         that Member State for the period within which such proof
4 . The licence must specify whether the tubes are OCTG                  is presented shall be increased by the same amount.
tubes or other steel pipes or tubes.
                                                                         2 . The Commission may lay down detailed rules for the
5 . Licences issued in one Member State of the Community                 implementation of this Article.
shall be valid throughout the Community.
                                                                                                      Article 7
6 . Member States shall ensure the appropriate penalties
are applied in respect of all exports effected without
                                                                         Cooperation between the Commission and the Member
production of the licence referred to in this Article and in
respect of any other breaches of the provisions relating to              States for the application of this Regulation shall be subject
                                                                         to Article 11 of Regulation (EEC) No 1023 / 70 .
such licences. Member States shall keep the Commission
informed of all breaches of the abovementioned rules and
of all penalties imposed in respect thereof, at intervals to be                                       Article 8
specified by the Commission .
                                                                         This Regulation shall enter into force on the day following
7 . The detailed rules for the application of this Regulation            its publication in the Official Journal of the European
and the information to be supplied to the Commission                     Communities .
                    This Regulation shall be binding jn its entirety and directly applicable in all Member
                    States .
                    Done at Brussels, 6 November 1989.
                                                                                                For the Council
                                                                                                  The President
                                                                                                    R. DUMAS
                                                                         0 ) OJ No L 83 , 30 . 3 . 1981 , p. 40.
 ---pagebreak--- 18 . 12 . 89                                   Official Journal of the European Communities                               No L 368 / 19
                                                                        ANNEX I
                                                                     List of products
                               Product                                      HTS                                  CN code
             Other pipe and tube                           7304.10           (»)                     7304 10      I1 )
                                                           7304.31           (»)                     7304 31      (M
                                                           7304.39           (»)                     7304 39      P)
                                                           7304.41           (».)                    7304 41      I1 )
                                                           7304.49                                   7304 49      C1 )
                                                           7304.51           0)                      7304 51      (»)
                                                           7304.59           (!)                     7304 59      (*)
                                                           7304.90           (!)                     7304 90      0)
                                                           7305.11                                   7305 11 00
                                                           7305.12                                   7305 12 00
                                                           7305.19                                   7305 19 00
                                                           7305.31.40        (>)                     7305 31 00 (*){*)
                                                           7305.31.60        (»)                     7305 39 OOP );
                                                           7305.39           (»)                     7305 90 00 H
                                                           7305.90           0)
                                                                                                     7306 10
                                                           7306.10           (>)                     7306 30      (»)(*)
                                                           7306.30.10        (M                      7306 40      (»)
                                                           7306.30.50        (»)                     7306 50      P )(2 )
                                                           7306.40           (>)                     7306 60      C1 )
                                                           7306.50.10         0)                     7306 90 OOP )
                                                           7306.50.50         (*)
                                                           7306.60           (>)                      8547 90 00 .(■?).
                                                           7306.90           (»)
                                                           8547.90.0020
             OCTG                                          7304.20                                   7304 20
                                                           7305.20                                   7305 20
                                                           7306.20                                   7306 20 00
             The subheadings and item numbers referred to above are subject to revision when the Community or the United
             States adopt modifications to their respective import nomenclatures. When such modifications are adopted,
             prior notification shall be given to the other party.
             (') Excluded if drill pipe of a kind used in drilling for earth minerals or ores.
             (2) Excluded if tapered pipes and tubes principally used as parts of illuminating articles.
             (3 ) Covered if conduit tubing.
 ---pagebreak--- No L 368 / 20                               Official Journal of the European Communities                                             18 . 12 . 89
                                                                 ANNEX II
                                   United States customs territory and United States foreign trade zones
             The United states customs territory shall comprise the States , the district of Columbia and Puerto Rico.
            A United States foreign zone shall be defined as follows:
            It is an isolated, enclosed and policed area, operated as a public utility, in or adjacent to a port of entry ,
             furnished with facilities for loading, unloading, handling, storing, manipulating, manufacturing and exhibiting
             goods and for reshipping them by land , water or air. Any foreign and domestic merchandise, except such as is
             prohibited by laws or such as the Board may order to be excluded as detrimental to the public interest, health or
             safety, may be brought into a zone without being subject to the customs laws of the United States governing the
            entry of goods or the payment of duty thereon; and such merchandise permitted in a zone may be stored,
             exhibited, manufactured, mixed or manipulated in any manner, except as provided in the act and other
             applicable laws or regulations. The merchandise may be exported, destroyed or sent into customs territory
             from the zone , in the original package or otherwise . It is subject to customs duties if sent into customs territory ,
             but not if reshipped to foreign points.
                                                                 ANNEX 111
                                                      Allocation among Member States
                                                       Member States                              Proportion of Community limits
             Pipes and
             tubes               Germany                                                                      33,57 %
                                 France                                                                       11,07%
                                 Italy                                                                        23,81 %
                                 Netherlands                                                                   3,33 % .
                                 Belgium                                                                       5,72 % '
                                 Luxembourg                                                                    2,03 %
                                 United Kingdom                                                                4,76 %
                                 Greece                                                                        6,19 %
                                 Denmark
                                 Ireland
                                 Spain                                                                         9,52 %
                                 Portugal
             OCTG                Germany                                                                      38,76 %
                                 France                                                                        4,69 %
                                 Italy                                                                        28,76 %
                                 Netherlands                                                                   0,18 %
                                 Belgium                                                                       4,42 %
                                 Luxembourg                                                                    0,09 %
                                 United Kingdom                                                                4,87 %
                                 Greece                                                                        6,73 %
                                 Denmark
                                 Ireland
                                 Spain                                                                        11,50%
                                 Portugal