CELEX: 51974PC0074
Language: en
Date: 1974-01-23
Title: DRAFT DECISION of the Representatives of the Governments of the Member States, meeting in the Council, concerning the rules for the importation of iron and steel products covered by the ECSC Treaty, including pig iron and high-carbon ferromanganese, originating in State-trading countries (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 74
Vol. 1974/0014
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 ---pagebreak--- COMMISSION OF TES 5UEOÎ2AN COMMUM21ES
                                                            COM(74)74 final
                                                            Brussels . 23 January 1974
                                        DRAFT
                                       DECISION
          of the Representatives of the Governments of the Member States ,
 meeting in the Council , concerning the rules for the importation of iron and steel
      products covered by the ECSC Treaty , including pig iron and high–carbon
              ferromanganese , originating in State–trading countries
                    ( submitted to the Council by the Commission)
    COM(74) 74 final
 ---pagebreak---           COMMUNICATION PROM THE COMMISSION TO THE REPRESENTATIVES
             OP GOVERNMENTS MEETING IN THE COUNCIL   ,
Subject : Future import arrangements for iron and steel products
            covered by the ECSC Treaty coming from State-trading countries . .
1.      The ECSC Group had agreed , during its discussion in late 1972 -
early 1973 » to set up in due time a common import system from 1975
onwards (Doc . 1/54/73 ( COMER 19 ) of 19 March 1973).
        It has however not proved possible , during 1973 > "to draw up such
a system owing to the fact that no agreement could be reached on a
"hard core " of sensitive products which should have been kept under
quantitative restrictions . Faced with this situation the French govern­
ment has considered it necessary to liberalize as from the end of 1973
some products which in other Member States and the Commission 's
opinion should remain as sensitive products , a part of a common
"hard- core ". The Commission believes that it would have been possible ,
at the outcome of a thorough discussion , to reach a common import system
including a very limited "hard core ".
2.       As it has not been possible to reach such an agreement , it
seems no longer possible to set up for the enlarged Community a unified
import system involving a common " hard core " of sensitive products
subject to quantitative restrictions in all Member States . , In the
absence of such import rules determined by common accord , the jurisdiction
in commercial policy that was afforded the Member States under the ECSC
Treaty in respect of certain products which until 31 December 1973 had.
been subject to a Community system of quantitative restrictions reverts
to the individual Member States .
                                                                •A
 ---pagebreak---                                    -  2
In order not to jeopardize the principal objectives of the ECSC Treaty ,
the Commission considers it absolutely indispensable in these circumstances
to devise common machinery for coordination and to set up common '
effective machinery for the surveillance of imports together with
any necessary protective measures , with due consideration for GATT
requirements .
3.      This common coordination , surveillance and protection machinery
in the ECSC sphere should be modelled on that existing in the EEC
                      s
field , with due regard to institutional differences .   In important
respects , it could in any case incorporate the protection mechanism
for jointly liberalized produots as provided for in the Decision of
20 September 1971 of the Representatives of Governments meeting in the
Council , which Decision is still binding .
4.      Tlje markets particularly affected by low-price imports from
State-trading countries are those of Italy , West Germany and the Benelux
countries .   The Commission therefore considers that , on these markets
at least , the importation of sensitive products should remain subject
to quantitative restrictions . If this were not the 6ase , it would
seem impossible to reintroduce the prohibition of alignments if and
when needed . Furthermore , all Member States should initiate effective
surveillance of the importation of these products . The products considered
by the Commission to be sensitive are listed in Annex III to the attached
draft Decision .
5.      The Commission suggests that the Representatives of Governments
meeting in the Co^cil adopt the attached draft Decision. The draft is
based on the following principles :
   1 . Affirmation of the principle of freedom of importation into the
       Community .
 ---pagebreak---                                     3   -
2 . Affirmation of ind.ivid.vial Member States' entitlement to retain
    rules which depart from such freedom of importation .
3 . Effective coordination of national measures .
4 . A common surveillance system and the application thereof to
    sensitive products .
5 . A common system of protection .
 ---pagebreak---                                    DR APT
                                   DECISION
                                 of
      of the Representatives of the Governments of the Member
      States , meeting in the Council , concerning the rules for
      the importation of iron and. steel products covered by- the
      ECSC Treaty , including pig iron and high-carbon ferromanganese ,
      originating in State-trading countries .
THE REPRESENTATIVES OP THE GOVERNMENTS OP THE MEMBER STATES , MEETING IN
THE COUNCIL ,
in agreement with the Commission ,
HAVE DECIDED AS FOLLOWS :                                        .
                                     TITLE I
         *                                                           '
                              General principles
                                    Artide 1
1 . Without prejudice to the provisions of the ECSC Treaty , this Decision .
is applicable to the importation into the Community of all iron and steel
products covered by the ECSC Treaty , including pig iron and high-carbon
ferromanganese , originating in any of the third countries mentioned     -
in Annex I.
 ---pagebreak---                                       2
2 . The importation into the Community of the products listed, in Annex II
shall be free , that is to say not subject to quantitative restrictions
save for those applied in accordance with the provisions of this
Decision .
3 . The Representatives of the Member States , meeting in the Council ,
may , in agreement with the Commission , decide to extend the Annex to
include other imports where this is not likely to create a situation
in which the application of protective measures within the meaning of
Title IV would be justified .
                                TITLE II
                      JOINT CONSULTATION PROCEDURE
                                Article 2
1 . If a Member State contemplates altering its import arrangements , as
in force on 1 January 1974 » in respect of any or all of the third
countries mentioned in Annex I , or of any of the products mentioned in
Annex II , it shall so notify the Commission and the other Member States .
2 . At the request of the Conjmission or of a Member State , the measures
referred to in Paragraph 1 shall be the subject of prior consultation
with the other Member States and with the Commission .
3 . The aim of this consultation shall be to establish such coordination
of the arrangements of the various Member States as will enable the
proper functioning of the common market to be maintained .
 ---pagebreak---                                    -  3   -
4.   If a Member State or the Commission considers that the measure
contemplated by the Member State in question would prejudice the funda­
mental interests of the Community or of any of its Member States ,
the consultation shall include an examination of the economic and commer­
cial situation as regards the products concerned .
5.   The consultation shall take place within a group composed of represen­
tatives pf each Member State and of the Commission and presided over
by the Member State holding the office of President of the Council .
                                  Article 3
1.   If , within five working days after the notification provided for in
                                                                 \
Article 2 , paragraph 1 , the Commission has not called for consultation
and has not received a request for consultation from any other Member
States , it shall so inform the Member State concerned , which may then
introduce the contemplated measure .
2.   Otherwise , the aforesaid consultation shall begin within five working
days after the expiry of the period provided for above .
                                  Article 4
1.   If at the end of the consultation no objection has been raised by
the other Member States or by the Commission , the latter shall notify
the Member State concerned , which may introduce the measure forthwith .
2.   Otherwise , the Member State concerned shall defer introduction of the
contemplated measure for a period of three weeks after the opening
of the consultation .
                                                              /
 ---pagebreak---                                    -  4
3.  Iff within this three-week period , the Commission notifies the
Member State concerned that it intends to take or to propose one of
the measures provided for in Articles 71 to 75 of "the ECSC Treaty ,
the contemplated measure shall not be introduced before the measures
provided for in these Articles have been taken .
                                   Article 5
1.   A withdrawal of liberalization or the abolition or reduction of a
quota may , in an emergency , be put into force without prior consultation .
2.   If , after a quota has been exhausted , the economic requirements of
a Member State necessitate additional imports originating in the country
or countries benefiting from the quota , the Member State may , in an
emergency , make provision , without prior notification , for additional
imports which shall not in any year exceed 10$ of the volume of the
annual quota exhausted .
3.   On request of any Member State or of the Commission , such measures
have been taken in compliance with this Article will be subject to a
later consultation for re-assessment under the conditions laid out in
Article 2 ,
                                • TITL3 I II
                  IMTORKATION AND SURVEILLANCE FROCSDUÏÏSS
                                   Article 6
1.   To enable the Commission to assess the economic and commercial
situation in respect of a product , the Member States shall , if so required
and in accordance with the procedures determined by the Commission , supply
the latter with information on the development of the market for that
product .
 ---pagebreak--- 2.     For this purpose , the Commission may , m particular , require that
certain imports be made subject to statistical surveillance in conformity
with the national regulations relating to external trade and in accordance
with the procedures which it prescribes .
                                              •    v
                                   Article 7
1.     A Member State shall notify the Commission :
   a) if the trend of imports or an exceptional development on the market
       is likely to necessitate recourse to protective measures ;
   b ) if , according to its normal administrative procedures and in the
       light of past Experience , it ascertains that a certain product
       may have to be imported in markedly increased quantities on
       exceptional terms .
2.     The Commission shall forthwith notify the other Member States
accordingly.
                                  Article 8
1«     Consultations may be opened at any time , either at the request of
a Member State or on the initiative of the Commission . They must take
place within eight working days after receipt by the Commission of the
notification referred to in Article 7 »         i-n any case before the intro­
duction of any prior-surveillance -or protective measure .
2 . The consultations shall take place within the Committee provided for
in Article 2 , paragraph 5 » They shall relate , in particular , to :
 a) the importation of the products referred to and the market situation ,
      including foreseeable trends }
 b ) the measures , if any, to be adopted.                         /
 ---pagebreak---                                    Artide 9
1 . Where the interests of the Community so require and notwithstanding
the provisions of Article 1 , paragraph 3f "the Commission may , either
on its own initiative or at the request of a Member State , subject the
importation of a certain product to prior surveillance if the develop­
ment of the market for that product is likely to harm the interests of
Community producers .
                                  Article 10
1 . Products under surveillance may only be put into free circulation
on production of an import document . This document shall be issued or
endorsed free of charge , and by the Member States which have liberalized
the importation of the products in question , for all the quantities
requested , not later than five working days after submission of a declara­
tion or an application by the importer . Member States which maintain
quantitative restrictions in respect of the product in question as
provided for in Article 1 , paragraph 3 » shall issue licences under
quotas opened and in accordance with their national regulations .
                                    v
                                  Article 11
1.    Within the first ten days of each month , Member States shall cmmmuni-
cate to the Commission :
   a) particulars of the quantities of products and the sums of money
       involved , as calculated from the c.i.f . prices , for which import
       documents were issued during the preceding month ;
   b ) particulars of imports during the period preceding that referred to
       in subparagraph a) above .
Communicatiorfe of Member States will include distribution by product and
by exporting country.
 ---pagebreak---                                   -   7    -
2.  Where the nature of the products or a particular situation so requires ,
the Commission may , at the request of the Member State or on its own
initiative , change the intervals at which the information is to be
provided .
3.  In that event , the Commission shall so inform the Member States .
                                 Article 12
The products listed in Annex III originating in the third countries
listed in Annex I shall be subject to the surveillance procedure defined
in Articles 9 "to
                                  TITIL3 IV
                             FROTECTIVE M5A5U3ES
                                 Article 13
1.  Protective measures may be decided on where serious disturbances arise
or are likely to arise in the Community iron and steel market or in a
substantial part thereof .
2.  If the Commission or a Member State considers that an immediate pre­
cautionary measure is necessary in the . interests of the Community , the
former shall , either at the request of the Member State concerned or on
its own initiative , propose that the Member States amend by common accord
the importation arrangements for the products in question by making the
importation thereof subject to production of an import authorization , the
granting of which shall be in accordance with the procedures and subject to
the limits which it considers necessary pending the adoption of definitive
measures .                                   1
                                    .   ■                            •/•
 ---pagebreak---                                      -   8
                                                                                 l
                                                                               ' \
3. Member States shall undertake to study the precautionary measures
and to take a decision within fourteen days after the Commission 's
proposal . These measures may not remain in force for more than two
months .
4 . Where necessary , the Commission shall propose to the Member States      '
the appropriate measures to be taken by common accord before the expiry
of the two-month period referred to in paragraph 3 above .
5»    The measures may be limited to imports intended for    certain regions
of the Community , provided that this limitation does not    jeopardize the
proper functioning of the common market . They shall not     affect products
already on their way to the Community , provided that the    destination of
such products cannot be changed and that products which ,    pursuant to
Articles 9 "t° 12 , may only be put into free circulation on production of
an import document , are accompanied by such a document .
                                  Article 14
                                r •• \ \   v
1.    During the period of application of the measures taken pursuant to
the provisions of foregoing Article , consultations shall be held within
the group provided for in Article 2 , paragraph 5 » at "th® request of a
Member State or on the initiative of the Commission in order ;
   a) to study the effects of the measures ;
   b ) to determine whether the conditions for their application are
       still fulfilled .
2 . The Member States , acting " on a proposal from the Commission or at the
request of a Member State , shall decide by common accord to repeal or to
modify the measures taken pursuant to Article 13 when the conditions which
led to those measures have ceased to prevail and there is no danger of
their recurrence in the short term. In any decision to repeal , account
shall be taken of the need to ensure the proper functioning of the common
market .                                                             »/*
 ---pagebreak---                                  TITUS V
                             FINAL PROVISIONS
                                 Article 15
Each Member State shall take all necessary measures for the implementation
of this decision .
                                 Article 16
The decision of the 20 September 1971 » taken by the Representatives of
the Governments of the Member States meeting within the Council , relating
to certain measures applicable to State-trading countries or territories
as regards trade in iron and steel products covered by the ECSC Treaty ,
including pig iron and high-carbon ferro-manganese , is hereby revoked .
Done at Brussels .                                   The Président ,
 ---pagebreak---                          ANKEX I
         1 . Albania
                                        (*)
         2 . German Démocratie Republic x '
         3 . Bulgaria
         4 . People's Republic of China
         5 . Hungary
         6 . Poland.
         7 . Ruraania
         8 . Czechoslovakia
         9 . Union of Soviet Socialist Republics
) - not as far as the German Federal Republic is concerned .
 ---pagebreak---                             ANNEX II
   73.05 B                Sponge îron or steel
   73.06                  Puddled "bars and pilings ; ingots blocks ,
                          lumps and similar forms , of iron or steel
   73.07 A I              Blooms and billets , rolled
   73.07 B I              Slabs and sheet bars ( including tinplate bars ),
                          rolled
   73.09 .                Universai plates of xron or steel
   73.10 A III            Hollow mining drill steel
   73.10 D I a)           Bars and rods , of iron or steel , clad or
                          surface-worked , hot-rolled or extruded
ex 73.13 A I              "Electrical " sheets and plates , grain-oriented ,
                          with a watt-loss , regardless of thickness ,
                          of 0.75 watt or less
   73.13 B III            Sheets and plates , other than " electrical ",
                          not further worked than burnished , polished
                          or glazed
ex 73.13 B IV c )         Sheets and plates , other than "electrical ",
                          lead-coated .
   73.13 B IV d )         Sheets and plates , other than " electrioal ",
                          copper-plated , artificially oxidised etc ..
   73.15 Alb )            Ingots , blooms , billets , slabs and sheet
                          bars , other than forged , of high carbon
                          steel
   73.15 A IV             Umversal plates of high carbon steel
   73.15 A V d ) 1 . aa)  Bars and rods , not further worked than clad ,
                          hot-rolled or extruded , of high carbon steel
   73.15 A VI c ) 1 . aa) Hoop and strip , not further worked than clad ,
                          hot-rolled , of high carbon steel
   73.15 A VII c )        Sheets and plates , polished , clad etc .. of
                          high-carbon steel
   73.15 B I b )          Ingots , blooms , billets , slabs and sheet bars ,
                          other than forged , of alloy steel
                                                                 ./■
 ---pagebreak---                        AHEEX II ( cont'd )
73.15 B IV            Universal plates of alloy steel
73.15 B V d ) 1 . aa) Bars and rods , not further worked than clad ,
                      hot-rolled or extruded , of alloy steel
73.15 B VI c ) l.aa)  Hoop and strip , not further worked than clad ,
                      hot-rolled , of alloy steel
73.15 B VII b ) 3     Sheets and plates , other than 'electrical^
                      polished , clad , etc ., of alloy steel
73.16 A II            Rails , other than current-conducting
73.16 B               Check-rails
73.16 C               Sleepers
73.16" D 1            Fish-plates and sole plates , rolled .
 ---pagebreak---                          ANrlES III
ex 73-01                         Pxg iron
   73.08         )
   73.15 A III   )               Coils for re-rolling
   73.15 B III   )
   73.10 A II    )
ex 73.15 A V b 2 )               Bars
ex 73.15 Bïb2 )
   73.11 A I                     Angles , shapes and sections not
                                 further worked than hot-rolled or
                                 extruded
   73.12 A
   73.15 A VI a )                Hoop and strip , not further worked
   73.15 B VI a )                than hot-rolled .
   73.13 B I
   73.15 A VII a)                Other sheets and plates , not further
   73.15 B VII b )               worked than hot-rolled
   73.13 B II          )
   73«15 A VII b 2     )         Other sheets and plates , not further
   73.15 B VII b 2 bb )          worked than cold-rolled , of a thick­
                      )          ness of less than 3 m.m .