CELEX: 51979PC0013
Language: en
Date: 1979-01-24
Title: DRAFT COUNCIL REGULATION (EEC) opening, allocating and administering a Community tariff quota for ferro-chromium containing not less than 4% by weight of carbon, falling within subheading ex 73.02 E I of the Common Customs Tariff, and extending the benefit of this quota to certain imports of ferro-chromium containing a quantity of between 3 and 4% by weight of carbon (1979) (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 13
Vol. 1979/0007
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(79)13 final.
                                                  Brussels , 24 January 1979 .
                       DRAFT COUNCIL REGULATION ( EEC )
          opening , allocating and administering a Community tariff quota
          for ferro-chromium containing not less than 4% by weight of
          carbon , falling within subheading ex 73.02 E I of the Common
          Customs Tariff , and extending the benefit of this quota to
          certain imports of ferro-chromium containing a quantity of
          between 3 and 4% by weight of carbon ( 1979 )
               ( submitted to the Council by the Commission )
                                   >     1
COM(79 ) 13 final .              i
 ---pagebreak---                              EXPLANATORY MEMORANDUM
1.            Following a request from Benelux , the competent departments of the
Commission were called upon to examine , during a meeting of the Economic
Tariff Problems Group , the question of opening , for 1979 , an autonomous
Community tariff quota for certain qualities of ferro-chromium containing
a quantity of 4% ( with a fixed limit of 3% ) or more by weight of carbon
( high carbon ferro-chromium ).
2.            During the discussion it transpired that :
a ) the difficulties encountered on the market for this metal during the" last
     few months , owing to pressure exerted on prices and supplies by certain
     third countries , have not been overcome so far , notwithstanding the
     conclusion of agreements with some of them ;
b ) in the Community , the productive capacity in respect of high carbon ferro­
    chromium is markedly underused and , according to forecasts for 1979 , produc­
     tion might be voluntarily reduced in considerable proportions in exchange
     for dependable outlets inside ,the Community ;
c ) the Member States' forecasts place the usual particulars for calculating
     the quota at the following approximate levels :
      consumption                                          487 265 tonnes
    I.
     actuai production                         a bout      150 000 tonnes
     inward processing arrangements                        negligible quantity
     duty-free imports under the terms of
     other preferential systems ( EFTA ,
     Turkey )                                               41 939 tonnes
     exports to third countries                             10 200 tonnes
     unusual stocks as at 31 December 1978                  54 000 tonnes
d ) on this basis , import needs from third countries up to the end of 1979
     might vary between 75 000 and 300,000 tonnes, depending on the level
     which might be reached by Community production and the level of Community
     stocks .
 ---pagebreak--- 3.             In these circumstances , taking into account ( i ) the uncertainties
of consumption levels , ( ii ) Community, production , Ciii ) the necessary imports
from third countries , ( iv ) the need to ensure parallel development in the
marketing of Community production and in the obtaining supplies for consumer
industries under favourable conditions , the Commission considers it necessary
to be particularly prudent in fixing the quota volume in order not to endanger
the market equilibrium .        With this in mind the Commission feels that it is
necessary to assure a certain compensation to those Member States who favour
Community production to ensure their supplies .
                For this purpose , the Commission intends to open for 1979 a nil-duty
tariff quota , the provisional volume of which , covering the needs for the. first
four months ( i.e. 80 000 tonnes ), might be increased during the year to keep
in step with the situation . There may well be a revision by the Economic Tariff
Problems Group at the beginning of the year to give effect , ( allowing for the
duration of the approval procedures ) to an increase as from 1 May 1979 .
             *                                                                  .-V
4.      /      As usual in such cases , the proposed quota volume has been divided    .
 into two trariches > the first , corresponding to 90% of this volume , being allo­
 cated "among* t"he Member" States in proportion to their anticipated imports from
third countries , the second , corresponding to the balance of the said volume ,
 constituting a Community reserve . Setting up such a reserve can be all the
better justified in this case as the quota volume us likely to be revised
during the year , /in order to meet more adequately the actual needs of consumer
 industries .
   Λ       '          .     '           ■ ' . ' · ; , ν     –     .            ^  . ·
               The. draft Regulation submitted by the Commission , moreover , lays
down in its Article 6 that Member States should be free to restrict the
benefit of this tariff quota "to products to be used for certain purposes".
 ---pagebreak---                                          r>RAF7 ~~
                      COUNCIL REGULATION (EEC) _
                         Λ                                              '      4
                                                                                     •
   opening, allocating and administrering a Community tariff quota for ferro-chro­
   mium containing not less than 4 % by weight of carbon, falling within
   subheading ex 73.02 E I of the Common Customs Tariff, and extending the ■
   benefit of this quota to certain imports of ferro-chromium containing a quan­
                tity of between 3 and 4 % by weight of carbon (- 1979 )
                       THE COUNCIL OF 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 for ferro-chromiuni containing not less than            '
                       4 % by weight of carbon, Community production is,
                       to a variable degree, inadequate and producers are          v   >
                       unable to meet the total requirements of consumer
                       industries ' •                    whereas it is therefore
                       in the Community's interest to suspend totally in
                       respect of this metal the application of the Common
                       Customs Tariff duty until 31 December 1979/w'thin a "
                       suitable tariff quota ; whereas in order     tp avoid ' '
disturbing the equilibrium of the market for this ferro-alloy and to
ensure parallel development in sales of Community production and in
supplies to meet the requirements of consumer industries , it is
appropriate to fix the quota volume at the provisional level of
80 000 tonnes , covering import needs from third countries during
the first , few months of the year ; whereas the fixing of this amount ,
based on conservative estimates , does not preclude future adjustment
in line with changes in the situation; whereas , moreover, Member States
should be free to authorize charges to be made against this volume
only subject to certain conditions relating to use ;
                      whereas relatively limited imports of ferro-chromium
                      containing a quantity of between 3 and 4 % by
                      weight of carbon are foreseeable for this quota period ;
                      whereas provision should be made on a temporary
                      basis for the extension of the benefit of the tariff
                      quota in question to these imports, limiting it
                      however to 20 % of the quota volume taking account
                      of the existence of Community production ;
 ---pagebreak---                           - 2 -
  Whereas equal and continuous access to the quota
  should be ensured for all Community importers and
  the rate of duty for the tariff quota should he applied
  consistently to all imports until the quota is
  exhausted ; whereas in the light of these principles,
  arrangements for the utilization of the tariff quota-
  based nn an allocation amnni/ Member States would
seem to be consistent with the Community nature of
the quota ; whereas, to correspond as closely as
possible to the actual trend in the market in the
product in question , allocation of the quota should be
in proportion to the requirements of the Member
States as calculated by reference to statistics of imports
from third countries during a representative reference
period and to the economic outlook for the quota
period in question ;
Whereas, however, since the quota is an autonomous
Community tariff quota intended to cover import
needs arising in the Community, it may, as an experi­
ment, be allocated on the basis of the temporary
import needs from third countries expressed by each
of the Member States while assuring a
certain degree of compensation for
 those Member States which favour Comm­
 unity production when obtaining ,
 supplies "               whereas this system of alloca­
tion also ensures the uniform application of the
Common Customs Tariff ;
Whereas, to take account of future import trends for
the product concerned, the quota should be divided
into two tranches, the first being allocated among the
Member States and the second held as a reserve to
cover subsequently the requirements of Member States
which have exhausted their initial shares and any addi­
tional requirements which might arise in the other
Member States ; whereas, to give importers of the
Member States some degree of certainty, the first
tranche of the tariff quota should be fixed at a rela­
tively high level which could be 72 000 tonnef.;
Whereas Member States may exhaust their initial
shares at different rates ; whereas to avoid disruption
of supplies on this account it should be provided that
any Member State which has almost used up its initial
share should draw an         additional share from     the
 reserve ; whereas each time its additional share is
almost exhausted a Member State should draw a
 further share, and so on as many times as the reserve
allows ; whereas the initial and additional shares
 should 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 posi­
 tion to keep account of the extent to which the quotas
 have been used up and to inform the Member States
 accordingly ;
 ---pagebreak---                            - 3 -
   Whereas if at a given date in the quota period a
   considerable quantity of a Member State's initial share
   remains unused it is essential that such State should
   return a significant proportion thereof to the reserve,
   in order to prevent a part of a quota 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 united within and jointly represented
   by the Benelux Economic Union, any measures
   concerning the administration of the shares allocated
   to that economic union may be carried out by any
   one of its members,
   HAS ADOPTED THIS REGULATION :
                          Article I
   1 . From the date of entry into force of this Regula­
   tion and until 31 December 1979 a tariff quota of
80 000 tonnes shall be opened within the Community
   in respect of ferro-chromium containing not less than
   4 % by weight of carbon, falling within subheading ex
   73.02 E I of the Common Customs Tariff.
   2. During this period the Member States shall be
   authorized within the 20 % limit of the quotas allo­
   cated to them or which they levy on the reserve in
   accordance with Articles 2 and 3 to charge against the
   said tariff quota, imports of ferro-chromium
   containing a quantity of between 3 and 4 % by
   weight of carbon.
  -3i~ Importations of the products in question, which
   already benefit from exemption from customs duties
   under another preferential tariff system, are not to be
   charged against this tariff quota.
   4.    Within this quota, the customs tariff duty shall
   be totally suspended.
                           Article 2
    1.    A first instalment of72 000 tonnes of this
   Community tariff quota shall, be allocated among the
    Member States ; the shares, which, subject to Article 5
   shall be valid until 31 December19r 9 , shall be as
    follows :
 ---pagebreak---           Bcnclux                       800 tonnes .
          Dcnmark                        30 tonnes .
         Gcrmanv                    32  000 tonnes .
          France                    10  560 tonnes .
          Ireland                        10 tonnes ,
          Italy                     12  000 tonnes -
          United Kingdom            13  600 tonnes
 2.     The second instalment of8 000 tonnes shall
 constitute the reserve .
                          Article 3
 1.     As soon as one of the Member States referred to
 in Article 2 has used 90 % or more of its initial share
 as fixed in Article 2 ( 1 ), or of that share minus any
 portion returned to the reserve pursuant to Article 5,
 it shall forthwith , by notifying the Commission , draw
 a second share , to the extent that the reserve so
 permits, equal to 10 % of its initial share rounded up
 as necessary to the next whole number.
 2.     As soon as one of the Member States, after
 exhausting its initial share, has used 90 % or more of
 the second share drawn by it, that Member State shall
 forthwith , in the manner and to the extent provided
 in paragraph 1 , draw a third share equal to 5 % of its
 initial share .
 3.     As soon as one of the Member States, after
 exhausting its second share, has used 90 % or more of
 the third share drawn by it, that Member State shall
 forthwith and on the same conditions draw a fourth
 share equal to the third .
 This process shall continue until the reserve is
 exhausted .
 4.     Notwithstanding paragraphs 1 to 3, a Member
 State may draw shares lower than those specified in
 those paragraphs if there are grounds for believing
 that those specified may not be used in full . Any
 Member State applying this paragraph shall inform
 the Commission of its grounds for so doing.
                          Article 4
 Additional shares drawn pursuant to Article 3 shall be
 valid until 31 December 1979-
                          Article 5
 The Member States shall not later than 1 October
1979 , return to the reserve the unused portion of their
 initial share which on 15 Septemberl 979 , exceeds
 20 % of the initial amount. They may return a greater
 portion if there are grounds for believing that such
 portion may not be used in full .
 ---pagebreak---  Not later than 1 October 1979 the Member States            pursuant to Article 3 are opened in such a way that
shall notify the Commission of the total quantities of      importations may be charged without interruption
the products in question imported up to and                 against their accumulated share of the tariff quota.
including 15 September1979 and charged against the
Community quota and of any portion of their initial ,       2.    The Member States shall ensure that importers
shares returned to the reserve.                             of the product in question - established in their territo­
                                                            ries have free access to the shares allocated to them .
                        Article 6                           3. The Member States shall charge imports of the
Member States may restrict the product in question          product in question against- their shares as and when .
which may be charged against their quota shares to          the product is entered with the customs authorities for
                                                            home use.           .
products to be used for certain purposes.
                                                            4.    The extent to which the Member States have
                        Article 7                           used up their shares shall be determined on the basis
The Commission shall keep an account of the shares          of the importations charged against their shares in
opened by the Member 'States pursuant to Articles 2         accordance with paragraph 3.
and 3 and shall, as soon as the information reaches it,
inform each State of the extent to which the reserve                               Article 9
has been used up.
                                                            At the request of the Commission, the Member States
Not later than 5 October 1979 it shall inform the           shall inform it of imports charged against their shares.
Member     States   of the   amounts  still in reserve
following any return of shares pursuant to Article 5. •                           Article 10
It shall ensure that when an amount exhausting the
reserve is drawn , the amount so drawn does not             The Member States and the Commission shall coop­
exceed the balance available, and to this end shall         erate closely to ensure that this Regulation is
notify the amount of that balance to the Member State       complied with.
making the last drawing.
                                                                                  Article 11
                        Article 8
                                                            This Regulation shall enter into force on the seventh
1.    The Member States shall take all appropriate,         day following its publication in the Official Journal ,
measures- to ensure     that additional shares drawn        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