CELEX: 51973PC1997
Language: en
Date: 1973-11-29
Title: DRAFT REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a supplementary Community tariff quota for ferro-silicon of a purity exceeding 75 % falling within subheading No 73.02 C for 1973 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1997
Vol. 1973/0355
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 ---pagebreak--- COMMISSION OF THE EIROEBAN COMMUMÏ1ÎIS
                                                   COM(72)1997   final
                                                   Brussels , 29 November 1973
                                        DRAFT
                        , REGULATION (EEC ) OP THE COUNCIL
             on the opening;, allocation and administration of a
             supplementary Community tariff quota for ferro­
             silicon of a purity exceeding 75 % falling within
             subheading Kb 73.02 C for 1973                  ;
                   ( submitted to the' Council by the Commission )
                                 •
   COM(73 ) 1997 final
 ---pagebreak---                          EXPLANATORY M^IORAIIDUM
1.    The draft Regulation annexed hereto has "been prepared in response
to requests from the Benelux Member States for the autonomous opening
of a supplementary Community tariff quota for ferro-silioon for 1973 .
2.    The first of these requests , relating to ferro-silioon generally,
was studied during a consultation meeting of experts from all the Member
States which was held on 8 June 1973 •   It emerged clearly from this study
that there would not be unanimitjr as required under Article 28 , and that ,
consequently , the opening of an autonomous tariff quota would not occur
in the foreseeable future .
3«    Owing to pressure of time end technical difficulties it was not
possible to study at a consultation meeting , as is the custom in such
cases , the request specifying the requirements of the Benelux countries ,
which restricts them to ferro–silicon with a purity content of not less
than 75$.
In tho light of the economic information and forecasts supplied by the
relevant departments fcr ferro-silicon generally , the Community balance
should be as follows for 1973 i
                     Consumption           Production
Germany                160 000                43 000              3 200
Bénélux                 52 065                     0                  0
France                 140 0C0               300 000                  0
Italy                   98 000                78 000                  0
                      450 065                421 000              3 200
According to this balance sheet , the Community 's import requirements from
third countries should rise to 25 865 metric tons ^450 065 metric tons –
(421 000 metric tons + 3 200 metric tonsj^ for 1973 . Talcing into consider­
ation the 20 000 metric tons allowed for at the beginning of the year ,
these requirement !? would thus be reduced to 5 865 metric tons .
 ---pagebreak--- However , the figure of 300 000 metric tons put -forward "by the French
Authorities as the production level for 1973 , in fact , represents the
production capacity estimated' at the "beginning of the period .      This
production reached 39 845 metric tons and 74 835 metric tons during
the first and second' quarter-years respectively and , according to infor­
mation received from the same source , will reach about 75 000 metric tons
during the final two quarter-years .       French production oould , therefore ,
rise to 265 000 metric tons for the whole year , "bringing the Community
deficit for ferro-silioori to about 40 000 metric tons .
It should "be noted in this connection , as «be Coonlssion preciously stated on
several ^occasions, that , as regards autonomous" Cor-iOKiity- tariff quotas* it is
not enough nerelv to op<5n systematically a quota equal in volume to estimated
import reeds from third countries .       Quotes thus calculated are in fact
lifeoly to disttiz% Ooranftfrd"ly production in the sector in "question or even
to dis^iragc possible expansion in that Sector.
For these reasons the Commission is only opening a quota for 10 000 metric
tons of ferro-silicon of the required quality subject to a temporary duty
of ifo which is the same as that laid down by the Council for the. additional
quota ot>enod by it in 1972 .
3.    As regards the proposed provisions for the administration of this
additional tariff quota, the Commission still considers that it would be
incompatible with the Community nature of the quota in question to
allocate it definitively among the Member States , and in this case , among
the Member States of Benelux only .
For these reasons it is proposed that the increase under consideration
should be effected by a Regulation laying down its own provisions for
allocation and administration which , while partially meeting the request
received , include in particular the establishment of a Community reserve .
 ---pagebreak---                             Proposal for a
               REGULATION ( EEC ) NO • . -/73 OF HIE COUNCIL •
           on the opening, allocation and administration of a
         supplementary Community tariff quota for ferro-siliccn
         of a purity exceeding 75 % falling within subheading .
         Nu 73.02 C for 1973
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 28 thereof ?
Having regard to the draft Regulation submitted by the Commission ;
Whereas by Council Regulation (EEC ) No 2729/72 of 19 December 1972^", the
Council opened and allocated among the Member States , for the year 1973 ,
a duty-free conventional Community tariff quota 20 000 metric tons of
ferrc-silicon falling within subheading No 73«02 C of the Common Customs
Tariff 5
Whereas , in view of current Community production potential , the above-
mentioned 20 000 metric ton quota volume will not suffice to cover
Community import requirements for ferro-silicon from third countries ;
whereas it is therefore desirable to open a supplementary Community tariff
quota for a volume which , in view of the need not to jeopardize future
expansion of this production sector in the Community , should be restricted
to 10 000 metric tons ;  whereas for the same reasons the quota duty should
be set at 7/^? whereas this supplementary volume of 10 000 metric tons
should be reserved for imports of ferro-siliccn which is at least 75°^ pure .
 OJ No L 291 , 28 December 1972 , p 62
 ---pagebreak--- Whereas in 1973 the iiew Member States do not have to make any movement
towards alignment of the national tariffs on the Common Customs Tariff
as regards the products in question ;   whereas the opening of a Community
tariff quota thus involves no obligation for the new Member States to
notify their customs tariffs as regards third countries ;    whereas therefore
it should "be provided that only the Member States of the Community as
originally constituted should use the tariff quotas and charge against
their quota shares products imported both from third countries and from
the new Member States ;   whereas the Community tariff quota must reflect
the terms specified above ;
Whereas equal and continuous access to the quota should be ensured for all
Community importers and the rate of levy for the tariff quota should be
applied consistently in all Member States to all imports of the product
in question until the quota is uuul 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 as closely as possible the
actual development of the market in the product in question 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 in, view of the statistics for 1969-71 and of market forecasts for
ferro-silicon for the current year the percentage shares in the 20 000
metric ton quota volume opened by the abovementioned Regulation are as
 ---pagebreak---                                   - 3 -
follows :
                       Gcrmary        17.5
                       Bénélux        77.5
                       France          O.25
                       Italy           4.75
Whereas , since the quota in question is an autonomous Community tariff
quota which is intended to cover suppleinentary import needs arising
within the Community , allocation of the supplementary quota volume may
be based on the true needs expressed by the Member States j    whereas the
three Member States constituting the Benelux Economic Union have commun­
icated supplementary needs of some 15 000 metric tons ;    as regards the
other Member States , the extent to which the quota shares allocated to
them in the initial 20 000 metric ton quota opened by the abovementioned
Regulation has been used up and the estimate of their supplementary needs
would not at present justify their part icipat ion in the proposed increase
in the Community tariff quota ;   whereas , should further needs later arise
in those Member States , however , they could always invoke Article 3 of '
this Regulation ;  whereas this system of allocation also permits the
Common Customs Tariff to be applied uniformly ;
Whereas , to take account of future trends of imports of the product under
consideration , the total quota volume should be divided into two tranches ,
the first being granted to the Benelux and the second held as a reserve
to cover at a later date the requirements of these Member States , should
they use up their new quota , and any further needs arising in other
Member States ;   whereas to give Member State importers some certainty
and to make it possible to sell Community production without difficulty ,
the first tranche of the Community quota should be fixed at 9 000 metric
tons ;
 ---pagebreak---                                              - 4 -
          Whereas the initial shares of Member Sts/fces may he used up more or
          lass quickly; whereas , therefore , to avoid disruption of supplies
          any Member State which has almost used up its initial share , must draw
          a supplementary share from the reserve ; whereas this must be dene by
          each Member State as each one of its supplementary shares is alnost
          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 period ;
          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 extent to which the quota volume has been used
          up and inform the Member States thereof ;
          Whereas' if , at a given date in the quota period , a considerable quantity
          of the initial share is left' over in a Member State , it is essential
          that each State should return a significant proportion to the reserve ,
   j      to prevent a part of the Community qucta from remaining unused in one
          Member State while it could be used in others ;
          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 ;
          HAS ADOPTED TICS REGIJLATICfiT :
                                            Article 1
          Until 31 December 1973 the Common Customs Tariff duty on ferro-silicon of a puri
exceeding/-Tailing within subheading Ho 73.02 C shall be suspended up to 7^ on a
           supplementary Community tariff quota of 10 000 metric tons .
 ---pagebreak---                                    - 5-
                                Article 2
1«   A first tranche of 9 000 metric tons shall "be granted to the Member
States of the Benelux Economic Union ;    this share shall , subject to
Article 6 , be valid until 31 December 1973 «
2.   The second tranche , of 1 000 metric tons , shall constitute a reserve .
                                Article 3
If needs for ferro-silicon arise in EVancc cr Italy , those Member States
may , to the extent that the reserve is sufficient , draw an adequate share
from the reserve .
                                Article 4
1 * If 90$ or more of the initial share as defined in Article 2(l )
of any cf the Member States specified in Artic?.e 2 , or of that share
minus the portion returned to the reserve where Article 6 is applied ,
has been used up , that Member State shall without delay , by notifying
the Commission , draw a second share , to the extent that the reserve is
sufficient , equal to 10$ of its initial share .
2 . If , after its initial share has been used up ,      or more of the
second share drawn by either of the . Member States have been used up ,
that Member State shall vithout delay ? in accordance with the provisions
of paragraph 1 , draw a third sihare equal to 5$ of its initial share .
 ---pagebreak---                                    - 6 -
3 « If , after its second share has "been used up , 9<yf or more of the .
third share drawn fay either of the Member States has been used up ,
that Member State shall , in accordance with the provisions of paragraph 1 ,
draw up a fourth share equal to the third .
This process shall apply by analogy until the reserve is used up .
4 * By v;ay of derogation from paragraphs 1 to 3 , the Member States in
question may draw shares lower than those fixed in those paragraphs
if there are grounds for believing that those fixed may not be used up .
They shall inform the Commission of their reasons for applying this
paragraph .
Supplementary shares drawn pursuant to Article 4 shall be valid until
31 December 1973#
                                Article 6
Either of ; the Member States specified in Article 2 which on 15 November
1973 has not used up its initial share shall return to the reserve not
later than 10 December 1973 the 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 December 1973 , notify to the
Commission the total quantities of the product in question imported
up to and including 15 November 1973 and counted against the Community
quota and any quantities returned to the reserve .
 ---pagebreak---                                 Article 7
 The Commission shall keep an account of the shares opened by the Member
 States pursuant to Articles 2 , 3 and 4 and- shall , as soon as information
 reaches it , inform each State of the extent to which the reserve has
"been used up .
It shall , not later than 15 December 1973 , inform the Member States of
the amount still in reserve after returns have been made pursuant to
Article 6 .
It shall ensure that the drawing which uses up the reserve is limited
to the balance available and to this end shall specify the arnotmt thereof
to the Member State making the last drawing .
                                Article 8
 1,  Member States shall take all measures necessary to ensure that there
 is uninterrupted access to their cumulative shares of Community tariff
quota when they open additional shares drawn pursuant to Article 3 or 4 »
 2»  Each Member State shall ensure that importers of the product in
question established in its territory have free access to the shares
 allocated to it .
 3.  Member States shall count imports of the product in question both
 from third countries and from new Member States against their shares
 as the product is presented for customs clearance under the declaration
 for consumption .
 4,  The extent to which a Member State has used up its share shall be
based on imports counted against it in accordance with paragraph 3 .
 ---pagebreak---                               Article 9
Fembsr States shall regularly inform the Commission of imports from
third countries actually counted against their slipres .
                              Article 10
Member States and the Commission shall cooperate closely to ensure that
the prcoedmg Articles axe observed .
                              Article 11
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels .
                                                  For the Council
                                                  The President