CELEX: 51983PC0707
Language: en
Date: 1983-11-28
Title: Proposal for a COUNCIL REGULATION (EEC) on export arrangements for certain types of non-ferrous metal waste and scrap (submitted to the Council by the Commission)

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COM (83) 707
Vol. 1983/0253
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM (83) 707 final.
                                                Brussels, 28 November 1983
                                Proposal for a
                           COUNCIL REGULATION (EEC)
     on export arrangements for certain types of non-ferrous metal waste
                                   and scrap
                 (submitted to the Council by the Commission)
 COM(83) 707 final
 ---pagebreak---                              EXPLANATORY MEMORANDUM
1.   In compliance with Council Regulation (EEC) No 2603/69 (1) and Council
                                                       (2 )
     Regulation (EEC) No 3440/82 of 21 December 1982       , the Council subjected
     for 1983 Community exports of aluminium and lead waste and scrap within
     the meanings of tariff subheading 76.01 B and 78.01 B, to the presentation
     of an export licence issued automatically by the relevant authorities of the
     Member States by the procedures laid down.
     As regards aluminium waste and scrap, the issue of export licences was
      recently suspended ( Commission Regulation (EEC) No 2822/83 - 0J No. L
     278, 11 October 1983) until 31 December 1983.
     Under the above-mentioned Regulation No. 3340/82 copper ash and residues
      (CCT Heading No. ex 26.03) and copper waste and scrap (CCT heading No
     ex 74.01 D) were also subjected to quantitative export quotas for 1983.
2.   The Advisory Committee set up under Regulation No. 2603/69 met to examine
     what arrangements should be made for 1984.
     a)    Copper - The conditions laid down in Regulation No 2603/69 justify
           the maintenance in 1984 of an export quota system both for "ash and
            residues" and for "waste and scrap". The first of these quotas,
           however, will be examined in detail during the year to see whether it
            can be slackened for 1985. To improve the functioning of the Community
            reserve, which is too limited, the total amount of the second quota
            has been increased, thus allowing the reserve to be pushed up from
           900 to 3 000 tonnes.
      b)    Aluminium - Through the monitoring system in operation for aluminium waste
            and scrap since 1 9 8 1 ^ the Community took action at the beginning of
                                                                                      (4)
            October and suspended the issue of export licences until 31 December 1983
            This conservatory measure was taken in the light of a particularly high
                                                                                 ./..
   (1) Regulation establishing common rules for exports (0J L 324, 27.12.1969,p.25).
   (2) 0J L 362, 23.12.1982, p.5
   (3) Production of prior export licence for a period of two months to be issued
        within 15 working days of receiving the request for a licence and presentation
        of a sales contract for the volume involved.
   (4) Commission Regulation (EEC) No 2822/83 of 6 October 1983 (OJ L 287, 11.10.1983,
        p.14).
 ---pagebreak---                                    -  2  -
                                                                 M)
 rate of increase in exports during the first six months of 1983    , which, if
 it continued, could in the long term result in a critical situation due to
a shortage. Assessment of the situation also had to take into account the
tension on the world aluminium market brought on, amongst other things, by
 structural changes in the production of this metal.
It does not appear from the examination of the situation regarding the arrange­
ments for 1984, carried out subsequently, in particular by the Advisory
Committee set up under Regulation No 2603/69, that the conditions are such
as to justify restrictions on exports as from 1 January next.
Community exports have increased progressively since 1981, especially during
the first six months of this year. This trend has probably been influenced
by various factors, these including:
 (i)    structural changes in the production of aluminium on certain markets,
        with increased use of waste and scrap (reductions in the first melt
        and increased production of second melt: particularly in Japan and
        the United States);
(ii)    reduced availability of waste and scrap on the world market (greater demand
        for the product on the North American market, traditionally the main
        exporter);
(iii) substantial increase as from 1983 in the price of the metal on the
        world market.
The continued high prices for aluminium on the world market have also
had the effect, during the second half of 1983 and in particular in
North.America, of releasing certain primary aluminium production capacities,
which, despite an increase in demand owing to the economic recovery, should
gradually reduce the pressure on the demand for second melt aluminium
and hence waste and scrap.
(1 )
     The monthly average of Community exports in aluminium waste and scrap of
2 989 tonnes in January 1983 had become 5 810 tonnes by the following June.
 ---pagebreak---                                      - 3  -
   The North American market, which plays a major part in supplying the
   world market with aluminium waste and scrap and which has considerably
   reduced its support, especially in 1982, seems to be changing course. In
   the last four months of 1983 exports have increased progressively and look
   like equalling or exceeding the 1981 level.
   The Japanese market, to which Community exports of aluminium waste and scrap
   have developed rapidly since the middle of 1982 and throughout 1983, remains
   the biggest world importer for these products. Hence, although the production
   of secondary aluminium in Japan is tending to*stagnate (this being offset
   by the increase in metal aluminium imports), Community exports to Japan
   remain an economic reality which, in view of the absorption potential of the
   market in question, need to be watched closely. Nonetheless, one of the
   factors that has contributed to the increase of Community exports of aluminium
   waste and scrap to Japan, i.e. the market price differential between the
   two markets, has since narrowed considerably.
   Although this analysis does not suggest that the situation warrants restrictive
   measures to "prevent a critical situation due to a shortage" of the
   production in question, developments on the world and Community markets must
   nonetheless be watched very closely. A sharp increase in world demand,
   an excessive rise in Community exports linked with a considerable drop
   in the Community's traditional imports, and short supply on the world
   market could create a situation where Community action is needed. This
   eventuality, which does not warrant restrictive measures as such, nonetheless
   shows the need to renew Community monitoring of aluminium waste and scrap
   exports in 1984.
c) Lead - Community exports in lead waste and scrap, freed in July 1981 and
   subjected since then to monitoring, although showing a considerable
   increase in 1982 and 1983 (first six months), have not developed to such
   an extent that, taking account of the various factors involved (consumption,
    internal availability, net external supply), export restrictions might
   be warranted.
 ---pagebreak---                                   - 4   -
      In any case, the Community monitoring system, which should be continued,
     allows exports to be closely watched and thus provides the possibility,
      where necessary, for appropriate measures to be taken.
 d)   Processing traffic - Copper ash and residues or waste and scrap resulting
      from inward processing traffic - so far charged against the quotas except
      in certain cases - will be exported freely and without deduction subject to
      statistics of the actual operations. The charging system (allowing for
     exceptions) remains unchanged, however, when temporary exports are involved
     for outward processing. In specific cases the absence of a prior examination
     may be a way of evading the actual purpose of the export quota system.
3. The Commission considers therefore that there should be an export quota system
 for copper ash and residues and copper waste and scrap for 1984. Similarly, a
monitoring system for a luminium and lead waste and scrap should be retained
 through the prior issue, by the procedures laid down, of export licences.
Given that export trends for the products in question and the different aspects
of the economic and commercial situation could lead to the situation described
 in Regulation No 2603/69, the Commission feels that the monitoring system should
 be properly applied, in particular by regular submission within the set times
 of the figures required to provide a basis for a constant assessment of
developments on the Community and world markets in these products.
The Commission also recalls that if, at the request of a Member State or on
its own initiative and in the event of a critical situation of the kind described
in Regulation No 2603/69, protective measures were to prove necessary, the
consultation and decision procedures laid down in Regulation No 2603/69, and in
particular Article 6 thereof, will be applied to the letter.
The Commission proposes that the Council adopt the attached draft Regulation.
 ---pagebreak---                                   Proposal for a
                            COUNCIL REGULATION (EEC)
 on export arrangements for certain types of non-ferrous metal was"e and scrap
THE COUNCIL OF THE EUROPEAN COMMUNITIES,          Whereas the estimate of requirements is
                                                  a satisfactory criterion for the allr
Having regard to the Treaty establishing          cation of the said quotas;
the European Economic Community,                  Whereas the provisions relating to the
Having regard to Council Regulation (EEC)         monitoring of intra-Community trade laid
No 2603/69 of 20 December 1969 establishing       down in Commission Regulation (EEC) No
common rules for exports (1), as last             223/77 of 22 December 1976 on provisions
amended by Regulation (EEC) No 1934/82 and        for the implementation of the Community
in particular Article 7 thereof,                  transit procedure and for certain
                                                  simplifications of that procedure (6)
Having regard to Council Regulation (EEC)         apply only if the measures introducing
No 1023/70 of 25 May 1970 establishing a          export restrictions provide for their
common procedure for administering quanti­        application,
tative quotas (3), as last amended by the
Act of Accession of Greece and in particular      Whereas the Committee set up by
Article 2 thereof,                                Regulation (EEC) No 2603/69 has been
Having regard to the proposal from the            consulted;
Commission,                                       HAS ADOPTED THIS REGULATION:
Whereas, under Council Regulation (EEC) No                        Article 1
3440/82 (4) exports of aluminium and lead
waste and scrap were made subject, for 1983,      1. Community exports between 1 January
to production of a prior export licence to be     and 31 December 1984 of aluminium waste
issued by the relevant authorities of the         and scrap falling within subheading
Member States according to procedures to be       76.01 B of the Common Customs Tariff
laid down; whereas this arrangement expires       and lead waste and scrap falling within
on 31 December 1983; whereas for aluminium         subheading 78.01 B shall be subject to
waste and scrap the issue of export licences      production of an export licence to be
has been suspended by Council Regulation           issued by the relevant authorities of
(EEC) No          /83 (5) until 31 December 1983; the Member States. The licence shall be
                                                   issued free of charge, for such
Whereas, in order to avoid supply difficulties     quantities as are requested subject to
for copper ash and residues and for copper         the provisions set out below.
waste and scrap, Community quantitative export
quotas were fixed in Regulation (EEC) No 3440/82;  2. The export licence shall be issued
whereas these quotas remain in force until         within not more than 15 working days of
31 December 1983;                                  the date of the request or presentation
                                                   by the applicant of a sale contract for
Whereas it has proved necessary to retain, for     the entire quantity requested.
1984, the quantitative export quotas in force
for copper products and the export licence         The licence shall be valid for two
arrangement for aluminium and lead products;       months.
whereas this arrangement should enable, by the     3. Each Member State shall inform the
monitoring procedures laid down, export trends     Commission of the following within the
in these products to be followed closely since     first 15 days of each month:
some of them in particular have shown a rapid
increase in the course of the year;                (a) the quantities in tonnes and the
                                                        prices of the products for which
                                                        export licences have been issued
                                                        during the previous month;
                                                   (b) the quantities in tonnes of products
<!1) 0J No L 327, 27.12.1969, p. 25                     which have been exported during the
(2)  0J No L 211, 20.7.1982, p. 1                       month preceding that referred to
(3)  0J No L 124, 8.6.1970, p. 1                        under point (a);
(4)  0J No L 362, 23.12.1982, p. 5                 (c) the quantities in tonnes authorized
(5)  0J No L                                            for export or exported as part of
(6)  0J No L  38, 9.2.1977, p. 20                       inward or outward processing
                                                        arrangements;
                                                    (d) the third country of destination.
                                                   The Commission shall pass this infor­
                                                   mation to the Member States.
 ---pagebreak---                                        - 2 -
                  Article 2
Conmunity quantitative export quotas shall          relating to customs warehousing
be established as follows for 1984:                 procedure (2) or in free zones in
                                     (tonnes)       accordance with Council Directive
  CCT                                               69/75/EEC of 4 March 1969 on the
headi ng         Description       Quantity         harmonization of provisions laid down
   No                                               by law, regulation or administrative
                                                    action relating to free zones (3).
ex 26.03      Ash and residues of                   Where the goods have been obtained
              copper and copper                     under an inward processing arrangement
              a Hoys                22 300          the conditions referred to in the first
ex 74.01 D    Waste and scrap of                    indent must be observed.
              copper and copper                     The provisions of Article 1(3)(c) and
              alloys                34 800
                                                    (d) shall apply.
                  Article 3                         2. Temporary exports of the goods
                                                    referred to in Article 2 shall be
The quotas fixed in Article 2 shall be              charged against the quota of the
allocated according to the estimate of              exporting Member State.
requirements.
                                                    However, decisions allowing goods not
                  Article 4                         to be exchanged under the arrangements
1. Exports of the goods referred to in              provided for by Council Directive
Article 2 shall not be charged against the          76/119/EEC of 18 December 1975 on the
quota of the exporting Member State:                harmonization of provisions laid down
                                                    by law, regulation or administrative
- where the goods are exported in the               action in respect of outward processing
  unaltered state or as compensating products       (4) may be taken by the procedure set
  within the meaning of Council Directive           out in Article 11(2) and (3) of
  69/73/EEC of 4 March 1979 on the harmoni­         Regulation (EEC) No 1023/70 following
  zation of provisions laid down by law,            consultation of the Committee for
  regulation or administrative action in            Customs Processing Arrangements set up
  respect of inward processing (1) as long          by Article 26 of Directive 69/73/EEC.
  as goods complying with the conditions of
  Artie les 9 and 10 of the Treaty are not                         Article 5
  used in the manufacture of the said
   compensating products.                           Regulation (EEC) No 223/77 shall apply
                                                   ;to the movement within the Community
   Equivalent compensation shall not be             of the products listed in Article 2.
  authorized;
- where goods not complying with Articles                          Article 6
  9 and 10 of the Treaty are exported after
                                                    The Council shall decide in due time and
  having been placed in customs warehouses
                                                     in any case before 31 December 1984 on
  in accordance with Council Directive
                                                    the measures to be taken regarding the
  69/74/EEC of 4 March 1969 on the harmoni­
                                                    export of the products listed in
  zation of provisions laid down by law,
                                                    Articles 1 and 2 after the validity
  regulation or administrative action
                                                    of this Regulation has expired.
                                                                   Article 7
                                                    This Regulation shall enter into force
                                                    on 1 January 1984.
                                                     It shall apply until 31 December 1984.
This Regulation shall be binding in its entirety and directly applicable in all
Member States.
Done at Brussels,                                            For the Council
(1) 0J No L 58, 8.3.1969, p. 1               (3) 0J No L 58, 8.3.1969, p. 11
(2) 0J No L 58, 8.3.1969, p. 7               (4) OJ No L 24, 30.1.1976, p. 58