CELEX: 51976PC0696
Language: en
Date: 1976-12-23
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 (1977) (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 696
Vol. 1976/0206
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(76)696 final
                                                   Brussels . 23 December 1976
                                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 ( 1977 )
               ( submitted to the Council by the Commission)
C0M(76 ) 696 final
 ---pagebreak---                                   EXPLANATORY MEMORANDUM
1 . In response to a request by the United Kingdom , Commission staff re-examined ,
    at the meeting of the Economic Tariff Problems Group held on 18 November 1976,
    the problem of opening autonomous Community tariff quota for 1977 for certain
    grades of ferro-chromium falling within subheading ex 73.02 E I of the Common
    Customs Tariff . The request especially concerns :
    ( a ) a type of ferro-chromium known as " charge chrome " containing not less
          than 6 % of carbon , which would have to be defined ;
    ( b ) " high-carbon" ferro-chromium containing not less than 4 % ( or 3 % up to
          a specified limit ) of carbon .
2 . Discussions showed , as in 1976 , that :
    - no definition of " charge chrome " based on the criteria of chromium , carbon
        and silicon contents could be established by consensus among the Member
        States ;
    - overall Community requirements , calculated by the traditional method
        on the basis of the forecasts currently available , would fall between
        150,000 and 200,000 tonnes for 1977 ;
    - within the Community , and especially in one Member State , the production
        capacity for high-carbon ferro-chromium is not fully utilized ;
    - the fact that the use of " charge chrome " in Community industries is
        of fairly recent date makes it impossible to estimate with sufficient
        accuracy the requirements of the Community or of each Member State
        for imports of this product from third countries ;
    - the uncertainty which overshadows various sectors of the economy
        as a result of the world crisis , the uncertainty due to the absence
        of an acceptable definition of first-grade ferro-chromium and the
        existence r>* fnmmuni ty production make it impossible to be sufficiently
        accurate in regard to Community requirements for second-grade ferro­
        chromium .
     It is for these reasons that the Commission proposes to adhere to
     the solution already adopted in previous years of opening a single
     tariff quota covering the two grades of ferro-chromium concerned and
     setting its volume at the same provisional level of 52,000 tonnes as in
     1976 , subject to review during the quota period as soon as more accurate
     forecests are received . It is also proposed that within this quota the
     customs tariff duty be totally suspended .
                                                                         •η·/β··
 ---pagebreak--- In accordance with the practice usually adopted in cases of the kind , the
proposed quota volume has been divided into two instalments , the first
instalment being allocated among the Member States with the same shares
in 1976 and the second constituting a Community reserve . The constitution
of a reserve is all the more justified in the present case because the
quota volume is open to revision during the year in order to bring it
better into line with the actual needs of the user industries .
 ---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-chromiurn containing a quan­
                                 tity of between 3 and 4% by weight of carbon ( 1977 )
THE COUNCIL OF THE EUROPEAN                               Whereas equal and continuous access to the quota
COMMUNITIES,                                              should be ensured for all Community importers and
                                                          the rate of duty for the tariff quota should be applied
                                                          consistently to all imports until the quota is
Having regard to the Treaty establishing the European     exhausted ; whereas in the light of these principles
Economic Community, and in particular Article 28          arrangements for the utilization of the tariff quota
thereof,
                                                          based on an allocation among Member States would
                                                          seem to be consistent with the Community nature of
                                                          the quota ; whereas, to correspond as closely as
Having regard to the draft Regulation submitted by
the Commission ,
                                                          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
Whereas for ferro-chromium containing not less than       States as calculated by reference to statistics of imports
4 % by weight of carbon , Community production is,        from third countries during a representative reference
to a variable degree, inadequate and producers are        period and to the economic outlook for the quota
unable to meet the total requirements of consumer         period in question ;
industries in the Community ; 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 1977, within a      Whereas, however, since the quota is an autonomous
suitable tariff quota ; whereas in order not to raise the Community tariff quota intended to cover import
question of the prospects for development of the          needs arising in the Community, it may, as an experi­
Community        production   sector and    taking into   ment, be allocated on the basis of the temporary
account the uncertainties which surround the different
                                                          import needs from third countries expressed by each
ferro-alloy consumption sectors, it is appropriate to fix of the Member States ; whereas this system of alloca­
the quota volume at the provisional level of 52 000       tion also ensures the uniform application of the
metric tons ; whereas for the same reasons Member         Common Customs Tariff :
States should be free to authorize charges to be made
against this volume only subject to the products being
used for certain purposes ; whereas the fixing of this
amount, relating to prudent estimates, does not
exclude future adjustment ;                               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
Whereas relatively limited imports of ferro-chromium      Member States and the second held as a reserve to
containing a quantity of between 3 and 4 % by             cover subsequently the requirements of Member States
weight of carbon are foreseeable for this quota period ;  which have exhausted their initial shares and any
whereas provision should be made on a temporary           addtional requirements which might arise in the other
basis for the extension of the benefit of the tariff      Member States ; whereas, to give importers of the
quota in question to these imports, limiting it           Member States some degree of certainty, the first
however to 20 % of the quota volume taking account        tranche of the tariff quota should be fixed at a rela­
of the existence of Community production ;                tively high level which could be 47 000 metric tons ;
 ---pagebreak---                                                          - 2 -
Whereas Member States may exhaust their initial             5. New Member States shall apply duties on
shares at different rates ; whereas to avoid disruption     imports within this quota calculated in accordance
of supplies on this account it should be provided that      with the relevant provisions of the Act of Accession.
any Member State which has almost used up its initial
share should draw an additional share from the
                                                                                     Article 2
reserve ; whereas each time its additional share is
almost exhausted a Member State should draw a               1.     A first instalment of 47 000 metric tons of this
further share, and so on as many times as the reserve
allows ; whereas the initial and additional shares          Community tariff quota shall be allocated among the
                                                            Member States ; the shares, which, subject to Article 5,
should be valid until the end of the quota period ;         shall be valid until 31 December 1977, shall be as
whereas this form of administration requires close
                                                            follows :
collaboration between the Member States and the
Commission and the Commission must be in a posi­                     Bénélux                 9 500 metric tons,
tion to keep account of the extent to which the quotas               Denmark                    84 metric   tons,
have been used up and to inform the Member States                    Germany                12 714 metric   tons,
accordingly ;                                                        France                  7 624 metric   tons,
                                                                     Ireland                       8 metric tons,
Whereas if at a given date in the quota period a                     Italy                   2 540 metric   tons,
considerable quantity of a Member State's initial share              United Kingdom         14 530 metric tons.
remains unused it is essential that such State should
return a significant proportion thereof to the reserve,      2.    The second instalment of 5 000 metric tons shall
in order to prevent a part of a quota from remaining         constitute the reserve.             >>
unused in one Member State while it could be used . in
others ;
                                                                                     Article 3
Whereas, since the Kingdom of Belgium, the
Kingdom of the Netherlands and the Grand Duchy of            1.    As soon as one of the Member States referred to
Luxembourg are united within and jointly represented         in Article 2 has used 90 % or more of its initial share
by the Benelux Economic Union, any measure                   as fixed in Article 2 ( 1 ), or of that share minus any
concerning the administration of the shares allocated        portion returned to the reserve pursuant to Article 5,
to that Economic Union may be carried out by any             it shall forthwith, by notifying the Commission , draw
one of its members,                                          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.
 HAS ADOPTED THIS REGULATION :                               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
                         Article I                           forthwith, in the manner and to the extent provided
                                                             in paragraph 1 , draw a third share equal to 5 % of its
 1 . From the date of entry into force of this Regula­       initial share.
 tion and until 31 December 1977 a tariff quota of
 52 000 metric tons shall be opened within the               3.     As' soon as one of the Member States, afttr
 Community in respect of ferro-chromium containing           exhausting its second share, has used 90 % or mor' of
 not less than 4 % by weight of carbon falling within        the third share drawn by it, that Member State shall
 subhheading ex 73.02 E I of the Common Customs              forthwith and on the same conditions draw a fourth
 Tariff.                                                     share equal to the third.
 2.    During this period the Member States shall be         This process shall continue until the reserve is
 authorized within the 20 % limit of the quotas allo­        exhausted .
 cated to them or which they levy on the reserve in
 accordance with Articles 2 and 3 to charge against the       Notwithstanding paragraphs 1 to 3, Member State
 said tariff quota, imports of ferro-chromium                may draw shares lower than those specified in those
 containing a quantity of between 3 and 4 % by               paragraphs if there are grounds for believing that
 weight of carbon .                                          those specified may not be used in full. Any Member
                                                             State applying this paragraph shall inform the
 3. Importations of the products in question, which          Commission of its grounds for so doing.
 already benefit from exemption from customs duties
 under another preferential tariff system, are not to be
 charged against fhis tariff quota.                                                   Article 4
  4.   Wi'hin this quota, the customs tariff duty shall      Additions! shares drawn pursuant to Article 3 shall be
  be totaily suspended .                                     valid until 31 December 197%
                                                      »
 ---pagebreak---                                                                   - 3 -
                                    Article 5                                                  Article 8
          The Member States shall not later than 1 October               1.   The Member States shall take all appropriate
        •J977 return to the reserve the unused portion of their         measures   to  ensure   that additional  shares   drawn
          initial share which on 1 5 September 1977 ex                  pursuant to Article 3 are opened in such a way that
  Ceeds ^0              i"'1'3 ' amount. They may return a greater      importations may be charged without interruption
          portion if there are grounds for believing that such          against their accumulated share of the tariff quota.
          portion may not be used in full.
                                                   the                  2. The Member States shall ensure that importers
          Not later than 1 October 197T Member States                   of the product in question established in thei - territo­
      i   shail notify the Commission of the total quantities of        ries have free access to the shares allocated to them .
          the products in question imported up to ' and
includinq 15 September 1977 and charged against the                     3 . The Member States shall charge imports of the
          Community quota and of any portion of their 'initial          product in question against their shares as and when
          shares returned to the reserve.                               the product is entered with the customs authorities for
                                                                        home use.
                                    Article 6
                                                                        4.    The extent to which the Member States have
          Member States may restrict tne product in question            used up their shares shall be determined on the basis
          which may be charged against their quota shares to            of the importations charged against their shares in
          products to be used for certain purposes.                     accordance with paragraph 3.
                                    Article 7                                                  Article 9
          The Commission shall keep an account of the shares            At the request of the Commission, the Member States
          opened by the Member States pursuant to Articles 2            shall inform it of imports charged against their shares.
          and 3 and shall , as soon as the information reaches it,
          inform each State of the extent to which the reserve
                                                                                              Article 10
          has been used'up.
                                           1977
          Not later than 5 October               it shall inform the    The Member States and the Commission shall coop­
          Member     States   of   the   amounts    still in  reserve   erate closely to ensure that this Regulation is
          following any return of shares pursuant to Article 5.         complied with .
          It shall ensure that when an amount exhausting the                                  Article ÎÎ
          reserve is drawn , the amount so drawn does not
          exceed the balance available, and to this end shall           This Regulation shall enter into force on the. seventh
          notify the amount of that balance to the Member State         day following that of its publication in the Official
          making the last drawing.                                      Journal of the European Communities.
                       This Regulation shall be binding in its entirety and directly applicable in all Member
                       States.
                        Done at
                                                                                   For the Council
                                                                                     The President