CELEX: 51979PC0648
Language: en
Date: 1979-11-21
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 X by weight of carbon (1980) (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 648
Vol. 1979/0219
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM ( 79 ) 648 final
                                                      Brussels , 21st November 1979
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                                      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 X by weight of carbon ( 1980 )
                (presented by the Commission to the Council )
COM ( 79 ) 648 final
 ---pagebreak---                   EXPLANATORY MEMORANDUM
       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 ).
       During the discussion it transpired that :
a ) at the review carried out at the same period , the state of the *
      Community market in high carbon ferro-chromium in 1980 appeared
   , to be substantially the same as in 1979 ;
b ) in the Community , the productive capacity in respect of high
      carbonferro-chromium is markedly underused and , according to forecasts
      for 1980 , production 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                                  '             578.116 tonnes '
      actual production          "         about                 140.000 tonnes
      inward processing arrangements     ,      .'   ! ■  negligible quantity . ~
      duty-free imports under the terms of
      other preferential systems ( EFTA , Turkey )                 93.761 tonnes
      exports to third countries                                  ' 1.000 tonnes
      unusual stocks as at 31 December 1978                        26.000 tonnes
d ) on this basis , import needs from third countries up to the end of
      1980 might reach 300,000 tonnes depending on the extentwhich the
      forecast amounts actually are achieved .          / \
     . In these circumstances , taking into account ( i ) the uncertainties
of consumption levels , JC i i ) Community production , ( iii ) the necessary
 imports from third countries , ( iv ) the need to ensure parallel
development in the marketing of Community production and in the obtsiriinq
  supplies for consumer industries under favourabl-e conditions , the Commission
 ---pagebreak--- 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 1980
a nil-duty tariff quota , the provisional volume of which , covering
the needs for the first four months ( i.e. 100.000 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 1980 .
 7     As usual in such cases , the proposed quota volume has been
divided into two tranches , the first , corresponding to 90 % of
this volume , being allocated among the Member States in proportion
to thei r 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 colume us likely to be revised
during the year , in order to meet more adequately the actual needs
of consumer industries .
       The draft Regulation submitted by the Commission , moreover ,
lays down in its article d that Member States should be free to
restrict the benefit of this tariff quota " to products to be
used for certain purposes
 ---pagebreak---                                                    DRAFT
                                 *   COUNCIL REGULATION ( EEC)
               opening, allocating and administering 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 ( 1980 )                           "
THE COUNCIL OF THE EUROPEAN                                      the quota ; whereas, to correspond 'as closely as
COMMUNITIES,                                                     possible to the actual trend in the market in the
  ,        ^          .                                          product in question, allocation of the quota should be
Having regard to the Treaty establishing the European       ,        proportion to the requirements of the Member
Economic Community, and in particular Article 28                 States as calculated by reference to statistics of imports
thereof                                                          from third, countries during a representative reference
                                                   _             period and to the economic outlook for the quota
                                   '             .   i .         penod in question ;
Having regard to the draft Regulation submitted by
the Commission.
                                                                 Whereas, however, since the quota is an autonomous
Whereas for ferro-chromium containing not less than              Community tariff quota intended to cover import
4 % by weight of carbon, Community production is,                needs arising in the Community, it may, as an experi-
to a variable degree, inadequate and producers are               ment, be allocated on the basis of the temporary
unable to meet the total requirements of consumer                import heeds from third countries expressed by each
 industries ; whereas it is therefore in the Community's         of the Member States while assuring a certain degree
 interest to suspend totally in respect of this metal the        of compensation for those Member States which
application of the Common Customs Tariff duty until              favour Community production when obtaining
 31 December 19450 within a suitable tariff quota ;              supplies ; whereas this -system of allocation also
 whereas in order to avoid disturbing the equilibrium            ensures the uniforrri application of the Common
 of the market for this ferro-alloy and to ensure parallel    w Customs Tariff ;                                       1
development in sales of Community production and               N                               '                     .
in supplies to meet the ' requirements of consumer                            '
industries, it is appropriate to fix the quota volume at -       Whereas, to take account of future import trends for
the provisional level of 100,000 tonnes,- covering               'he product concerned, the quota should be divided
import needs from third countries during the first few           'nt0 two instalments, the first being allocated among
months of' the year ; whereas the fixing of this                      Member States and the second held as a reserve to
amount, based on conservative estimates, does not -              cover subsequently the requirements of Member States
preclude future adjustment in line with changes in the           which have exhausted their initial shares and any addi-
situation ; whereas, moreover, Member States should              tional requirements- which might arise in the other
be 'free to authorize charges to be made against this            Member States ; whereas, to give importers of the
volume only subject to certain conditions relating to            Member States some degree of certainty, the first
use .                                                            instalment of the tariff quota should be fixed at a rela­
                                                                 tively high level which could be95^)00 tonnes ;
 Whereas relatively limited imports of ferro-chromium                    -               '
 containing a quantity of between 3 and 4% by                    Whereas Member States may exhaust their initial
weight of carbon are foreseeable for this quota period ;         shares at diff<.rent rates ; whereas to avoid disruption
whereas provision should be made on a temporary                  0f SUpp]ies on this account it should be provided that
basis for the extension of the benefit of the tariff             any Member State which has almost used up its initial
quota in question to these imports, limiting it                  share should draw- an additional share from the
however to 20 % of the quota volume taking account               reserve . whereas each time its additional share is
of the existence of Community production , /                     almost exhausted a Member State should draw a
                                                                 further share, and so on as many times as the reserve
Whereas equal and continuous access to the quota- '              allows ; whereas the initial and additional shares
should be ensured for all Community importers and                should be valid until the end of the quota period ;
 the rate of duty for the tariff quota should be applied ..      whereas this form of administration requires close
 consistently to all imports until the quota is ■                collaboration between the Member States and the
 exhausted ; whereas in the light of these principles            Commission and the Commission must be in a posi-
 arrangements for the utilization of the tariff quota '          tion to keep account of the extent to which the quotas
 based on an allocation among Member States would                have been used up/ and to inform the Member States
 seem to be consistent with the Community nature of              accordingly ; I ,         * .
 ---pagebreak---                                            - 2 -
   Whereas if at a given date in the quota period a                                     Article J
   considerable quantity of a Member State's initial share
   remains unused it is essential that such State should
                                                                 1.    As soon as one of the Member States referred to
   return a significant proportion thereof to the reserve,      in Article 2 has used 90 % or more of its initial share
   in order to prevent a part of a quota from remaining
   unused in one Member State while it could be used in         as fixed in Article 2 ( 1 ), or of that share minus any
   others ;                                                     portion returned to the reserve pursuant to Article 5,
                                                                it shall forthwith, by notifying the Commission, draw
   Whereas, since the Kingdom of Belgium, the                   a second share, to the extent that the reserve so
   Kingdom of the Netherlands and the Grand Duchy of            permits, equal to 10 % of its initial share rounded up
   Luxembourg are united within and jointly represented         as necessary to the next whole number.
   by the Benelux       Economic Union, any measure
   concerning the administration of the shares allocated        2.     As soon as one of the Member States, after
   to that economic union may be carried out by any             exhausting its initial share, has used 90 % or more of
  one of its members.                                           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
  HAS ADOPTED THIS REGULATION :                                 initial share.
                          Article Î                            3.     As soon as one of the Member States, after
                                                               exhausting its second share, has used 90 % or more of
  1.      From the period 1 January to                    •    the third share drawn by it, that Member State shall
                    31 December 1980 a tariff quota of         forthwith and on the same conditions draw a fourth'
13Ci)00 tonnes shall be opened within the Community            share equal to the 'third.
  in respect of ferro-chromium containing not less than
  4 % by weight of carbon falling within subheading ex         This process shall continue until the reserve is
  73.02 E I of the Common Customs Tariff.
                                                               exhausted.
 2.      During this period the Member States shall be
 authorized within the 20 % limit of the quotas allo­          4.     Notwithstanding paragraphs 1 to 3, a Member
 cated to them or which they levy on the reserve in            State may draw shares lower than those specified in
 accordance with Articles 2 and 3 to charge against the        those paragraphs if there are grounds for believing
 said tariff quota imports of ferro-chromium                   that those specified may not be used in full. Any
 containing a quantity of between 3 and 4 % by                 Member State applying this paragraph shall inform
 weight of carbon .                                            the Commission of its grounds for so doing.
 3.      Importations of the products in question, which
 already benefit from exemption from customs duties
 under another preferential tariff system, are not to be                                Article 4
 charged against this tariff quota.
 4. Within this quota, the customs tariff duty shall          Additional shares drawn pursuant to Article 3 shall be
 be totally suspended.                                        valid until 31 December 1980-
                          Article 2
                                                                                        Article 5
 1.     A first instalment of 95 000 tonnes of this
 Community tariff quota shall be allocated among the
 Member States ; the shares, which, subject to Article 5,     The Member States shall not later than 1 October
 shall be valid until 31 December 1979, shall be as         1980 return to the reserve the unused portion of their
 follows :            - •                                     initial share which on 15 September -| 980 exceeds
                                                              20 % of the initial amount. They may return a greater
           Benelux              4.35Q . tonnes,               portion if tfiere are grounds for believing that such
       .   Denmark                        tonnes,
                                                              portion may not be used in full.
           Germany            32.365 . tonnes,
           France             14.963 , tonnes,
           Ireland
                              29 3$ - - t0nneS'             ' Not later than I October l9gQ the Member States
           Italy                          y>nnes,             shall notify the Commission of the total quantities of
           United Kingdom - 13.880
                               Ij . ooU   tonnes.
                                          tonnes.             the products in question imported up to and
                                                              including 15 September 1 980 ar,d charged against the
 2.     The second instalment of 5 000 tonnes shall           Community quota and of any portion of their initial
 constitute the reserve.                                      shares returned to the reserve.
 ---pagebreak---                           Article 6 ■                             importations may be charged without interruption
                                                                  against their accumulated share of the tariff quota.
 Member States- may restrict' the product in question
 which may be charged against their quota shares to               2.    The Member States shall ensure that importers
"products to be used for certain purposes.                        of the product in question established in their territo­
                                                                  ries have free access to the shares allocated t<? them .
                          Article 7
                                                                - 3.    The extent to which- the Member States have
 The Commission shall keep an account of the shares               used up their shares shall be determined on the basis
 opened by the Member States pursuant to Articles 2               of imports of the product in question entered with the
 and 3 and shall , as soon as the information reaches it,         customs authorities for home use.
 inform each State of the extent to which the reserve
 has been used up.                                                                         Article 9
 Not later than 5 October 1980jt shall inform the                 At the request of the Commission, the Member States
 Member     States    of the   amounts  still   in  reserve
                                                                  shall -inform it of imports charged against their shares.
 following any return of shares pursuant to Article 5.
 It shall ensure that when an amount exhausting the             ^                          Article 10
 reserve is drawn , the amount so drawn does not
 exceed the balance available, and to this end . shall            The Member States and the^Commission shall coop­
 notify the amount of that balance to the Member State            erate closely to ensure . that this Regulation is
 making the last drawing.                                         complied with.         •    . -
                          Article 8                                                        Article 11
  1.   The Member States shall take all appropriate               This Regulation shall enter into force on
 measures    to   ensure  that additional    shares  drawn       1 January 1980 .           .
 pursuant to Article 3 are opened in such a way that
                This Regulation shall be binding in its entirety and directly applicable in all Member
                States.          ■           .                4      -
                Done at Brussels,     -    .          -     ,                  "                       '
                                         •                                   t
                                                                               . For the Council
                                                                                  The President