CELEX: 51977PC0391
Language: en
Date: 1977-07-28
Title: Draft REGULATION (EEC) OF THE COUNCIL opening, allocating and administering a Community tariff quota for ferro-chromium containing not less than 4% by weight of carton 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 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 391
Vol. 1977/0128
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                        COM(77)391 final.
                                                        Brussels . 28 July 1977
                               Draft
                     REGULATION ( EEC ) OF THE COUNCIL
      opening , allocating and administering a Community tariff
      quota for ferro-chromium containing not less than 4% "by
      weight of carton 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       "by weight of carbon
             ( submitted to the Council by the Commission)
C0M(77 ) 391 final .
 ---pagebreak---                  ν
                    EXPLANATORY MEMORANDUM
1. When the Regulation on the 1977 tariff quota for ferro-chromium
   containing not less than A7. by weight of carbon (high carbon
   ferro-chromium) was approved by the Council , the Commission
   was asked to review the state of the market in this product
   before the beginning of May 1977 and to submit a draft
   Regulation to increase the tariff volume if it became apparent
   that requirements for imports from third countries were likely
   to exceed the initial volume opened .
   As a result of requests by certain Member States that
   Community tariff quotas for ferro-silicon , ferro-silico-
   manganese and low-carbon ferro-chromium be opened for 1977
   on an autonomous basis , the Commission decided to review the
   state of the Community markets in these three ferro-alloys
   as well and to calculate any Community deficits .
2. These reviews mainly took place at meeting held with ferro­
   chromium producers and consumers on 22 April 1977 and with
   government experts on 16 June 1977 , and were based on forward
   data supplied by representatives of private firms or by
   competent authorities of the Member States .
   The main points that emerge from these discussions are as
   follows :
   ( a) When the rates of duty applicable in the Community to
        goods from certain third countries are set at or reduced
        to a level lower than the quota rates of duty usually
        adopted with autonomous quotas for ferro-silicon ,. ferro-
        silico-manganese and low-carbon ferro-chromium , the
        requirements for imports from third countries to be met
        from these tariff quotas are considerably reduced ;
 ---pagebreak---                                                  - 2 -
                         (b )  C rv^munity production capacities are not used to the full
                               and certain furnaces designed to manufactured ferro­
                                silicon or ferro- silicon-manganese have had to be shut
                               down for lack of sufficient demand ;     the production
                               capacities put forward for f erro- silico -*raanganese, for
                               example , are of the order of 120 000 tonnes , whereas
                               actual production in 1976 was only 83 000 tonnes , which
                               would allow an increase of about 50% ;
                         (c)   there are now large stocks of all the ferro-alloys in
                               question with Community producers ;
                         (d)   especially as regards high-carbon ferro-chromium , the
                               ptoblems of imports from South Africa , the embargo on
                               Rhodesian chromium and the deflections of trade which
                               are believed to have been detected in certain third
                               countries and in the Community have given rise to
                               disturbances of the Community market which call for
                               extreme caution to be exercised ;
                         (e)   in the light of the economic forecasts notified in thi$
                               connection , Community balance sheets for each of the
                              products concerned can be produced as follows :
                                      Ferro-si Li c on   Ferro-si  co- Low-carbon      High-carbon
                                                         manganese     ferro -chromiumferro- chromiun
                                                       I
                                            - in tonnes -
Consumption                             491 740           Ί95 750         114 350        441 760
Production capacities                   31 9 000          120 000          97 000        210 000
Inward processing                          2 050             2 000               0              0
Imports from third countries at
a rate of duty equal to or lower
than the quota duty usually adop­
ted ( associated countries , EFTA)       128 470            49 880         13  185        32  405
Exports to third countries                40 000           • 4 450          6  700        23  000
Quotas opened on 1 January 1977           20 000            50 000          3  000        52  000
Abnormal stocks , as at 31 Decem­                                          11  234        35  000
ber 1976
                                                                                •••/•• •
 ---pagebreak--- According Co this information , the calculation of Community
requirements for imports from third countries , carried out
by the usual method , reveals the following deficits and
surpluses :
- for ferro-silicon :            surplus of 17 780 tonnes , not
                                counting the abnormal stocks in
                                being as at 31 December 1976 , which
                                could not be accounted for ;
- for ferro-silico-manganesej surplus of 40 580 tonnes , not counting
                                 the abnormal stocks in being as at
                                31 December 1976 , which could not be
                                accounted for ; it should be noted that
                                if , in the calculation of requirements ,
                          '   • the 120 000 tonnes put forward as Commu­
                                nity production are regarded solely as
                                theoretical capacities , consideration of
                                actual production capacities would
                                nevertheless result in a relatively
                                small or even zero final surplus ;
- for low-carbon ferro­
  chromium :                 .. surplus of 16 769 tonnes ;
- for high-carbon ferro­
  chromium :                    deficit   of 89 355 tonnes ; in this
                                connection it should be noted that the .
                                calculations performed at the meeting
                                of ferro-chromium producers and
                                consumers , held on 22 April 1977 , on
                               .the basis of figures put forward by
                                them, gave rise to virtually the same
                                result .
 ---pagebreak--- ( r) the       opposition has been expressed to continuation of
     the zero rate of duty , which had been decided for the quota
     opened at the beginning of the year , for a supplementary
     tariff quota for high-carbon ferro-chromium .
Having regard to all these considerations , the Commission proposes
                                                   should
that for the time being an autonomous tariff quota/be opened only
for high-carbon ferro-chromium .
This tariff quota , valid from the entry into force of the Council
Regulation to 31 December 1977 , would cover a volume of 50 000 tonnes
and be coupled with an intermediate rate of duty of 3% . The
Commission is , however , willing to review in the autumn the state
of the markets in the other ferro-alloys , if it receives a
request backed up ! by new information .
The administrative arrangements proposed for this quota call for
no special comments , since they are no different from those
previously adopted by the Council in the same circumstances .
The volume is therefore divided into two tranches , the first
being allocated among the Member States in proportion to their
needs and the second constituting the Community reserve . The
Community reserve is all the more justified in this case since
the draft Regulation pvovulea that only those Member States having
currently foreseeable specific requirements can participate
 ---pagebreak--- initially .  The Member States' requirements have been assessed
from .the estimates of actual needs put forward by each of them ,
reduced by the shares allotted them when the initial quota was
allocated or drawn from the Community reserve constituted on that
occasion .
 ---pagebreak---                                                                     Draft
                                        REGULATION ( EEC) No                    OF THE COUNCIL
                                                                 of ■ • «
                       opening, allocating and administering a Community tariff quota for fcrro-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 fcrro-chromium containing a quan­
                                            tity of between 3 and 4 "/• by weight of carbon
   ; THE COUNCIL OF THE EUROPEAN                                          weight of carbon are foreseeable for this quota period ;
   i COMMUNITIES.                                                         whereas provision should be made on a temporary
   f
                                                                          basis for the extension of the benefit of the tariff
         Having regard to the Treaty establishing the European            quota in question to these imports, limiting it
    s . Economic Community, and in particular Article 28                  however to 20 "/o of the quota volume taking account
         thereof ;                                                        of the existence of Community production ;
    ?. Having regard to the draft Regulation submitted by
     ■i the Commission ;                                                  Whereas equal and continuous access to the queta
                                                                          should be ensured for all Community importers ami
         Whereas by its Regulation (EHC) No270/ 7<') of                   the rate of duty for the tariff quota should be applied
   ■ ji"                   the Council opened for 1977 and appor-         consistently to all imports until the quoin i«
   ? tioned among the Member Stales a Community tariff                    exhausted ; whereas in the light of these principles
         quota of a total size of 52 000 tonnes for fcrro-                arrangements for the utilization of the tariff quota
    \ chromium containing not less than 4 % by weight of                  based on an allocation among Member St.ites wou!<i
    £ carbon and has extended the application of this quota               seem to be consistent with the Community nature c !
     j ; to certain imports ol terro-chromium containing                  the quota ; whereas, co correspond as closely .:s
         between 1 and 4 "/o by wciplit of carbon falling within          possible to the actual trend of the market in tb .-
     i subheading ex 73.02 E I of I lie Common Customs                    product in question , allocation of the quota should be
     ( Tariff :          i                                                in proportion to the requirements of the Member
                                                                          States as calculated by reference to statistics of import;,
         Whereas for the product in question. Community                   from third countries during a representative reference
     j . production is inadequate and producers arc unable to             period and to the economic -outlook for the quota
         meet the total requirements of consumer industries in            period in question ;
     f the Community ; whereas, having regard to the most
     i" recent economic data for 197 7 on consumption,
    v production, exports to third countries, imports under
                                                                          Whereas, however, since the quota is an autonomous
    !■ the inward processing . arrangements or other tariff               Community tariff quota intended to cover import
    X. preference schemes and taking account of the stocks
   J held by a number of Member States on .11 December                    needs arising in the Community, it may, as an experi­
                                                                          ment, be allocated on the basis of the temporary
   i- ' .| 97 6s>hcrc is reason to assume that the additional
  i Community import requirements in respect of                           import needs from third countries expressed by each
                                                                          of the Member States ; whereas, on the basis
    . imports from third countries may reach the level of                 economic information supplied and allowing for dutv
   ■70 000 tonnes               ■ during iv77 ; whereas it is there-      free supplies from the Community or certain thiio
   V fort1 in the Com in unity's interest to suspend in                   countries, these needs would amount to the following
         respect of this metal the application of the Common
         Customs Tariff duty until .M December 1977, within a             percentages of the tariff quota ;
         suitable tariff quota ; whereas iri order not to raise the
  i question of the prospects for development of the
  i; Community             production    sector .j                        Whefeas in the case of Ireland, the present state ot
                                                                          drawings from its share of the initial quota of 52 000
   I 'I                                        it is appropriate to fix     tonnes ■    opened by the abovementioned Regula­
   1 the quota volume and the rate of duty applicable at                  tion and the most recent available economic informa­
         the level of 5" 000 tonnes           and .1 % respectively ;     tion and statistics, do not justify at present its partici
   • whereas the fixing of this amount , relating to prudent              pntion in tiie proposed increase of the Community
  l CNtiniiik's, tlocb not exilurie future iuljustmeni ;                  tariff quota ; whereas, moreover, should additional
  f,                                                                      needs arise subsequently >" 'h.'l Member Stale it may
• y. •                                               . .
  ■      Whereas relatively limited imports of ferro-cluonmim             have recourse to the procedure set up under Annie J
  * containing a quantity of between                     and 4 % by       of thi> Regulation ; whereas ibis system of allocation
                                                                          also ensures the uniform application of ihc Common
         <•) Oj No L ■ 39 , 10.2.1977/ p. 2 . '                           Customs 'lanli
 ---pagebreak---      >'•  ;'    B<-nc!ux -• ■ • ...          10.06                     • 50 000 tonnos              shall be opened within the
    \ '•        Denmark '                       0.01                      v'.om m unity in respect of ferro chromium containing
             • Germany                       54.6A                        not less than 4 % by weight of carbon failing within
                Fraiuv                       10.48                        subheading ex 73.02 F. I of the Common Customs
    »v                                        3.62                        Tariff.
   /. '         United Kingdom              21.19 ;
                                                                          2.     During this period the Member States shall be
   : Whereas. to take .account of_ future import trends for               authorized within the 20 % limit of the quotas allo­
       the product concerned, {tic quota should he divided                cated to them or which they levy on the reserve in
   '• into two tranches, the first being allocated among the              accordance with Articles 2 and J to charge against the
   ^ above-mentioned Member Stales and the second held                    said     tariff    quota,  imports   of   ferro-chromium
   ' as a reserve to cover subsequently the requirements of               containing a quantity of between 3 and 4 % by
   | Member States which have exhausted their new shares                  weight of carbon.
  ? anil any additional requirements which might arise in
j. the other Member States ; whereas, to give importers                   3. Within this quota, the customs tariff duty shall
  j of Member States sonic degree of certainty, the first                 be suspended at' 3 %.
  ^tranche of the tariff quota should be fixed at a rcla-
 • tively high level which could be 45 000 tonnes
 I
j' Whereas Member States may exh.mst their initial
; shines al dilferent rates ; whereas to avoid disruption
  j- of supplier on this 'account it should be provided that
  • any Member State which has almost used up its initial                                           Article 2
 «. share should draw an             additional   share   from   the
       reserve ; whereas each time its additional share is
; ; «'.imost exhausted a Member State should draw a                       1.     A first instalment of 45OOO tonnes         . of this
■/. lur.hcr share, and so on as many times as the reserve                 Community tariff quota shall be allocated among the
 fallows, whereas , the          initial  and    additional   shares      Member States ; the shares, which subject to Article 6
  / should be valid until the end of the quota period ;                  shall be valid until 31 December IV77 shall 'be as
                                                                          follows :
      whereas this form of administration requires close
      collaboration between       the Member States and the
                                                                                    Bénélux              4 527     tonnes
      Commission and the Commission must be in a posi­                              De n ma rit                    tonnes
tion to keep account of the extent to which the quotas
      have been used up and to inform the Member States                            Germnny             24   588    tonnes
■: accordingly ;
                                                                                    h ran ce             4  716    tonnes
                                                                                    Italy                1  629    tonnes
                                                                                    United Kingdom 9        535.   tonnes
; Whereas if at a given date in the quota period a
      e011.sHlcr .1Mc quantity of a Member State's initial share
      remains unused it is essential that such State should              2.      The second instalment of5 000 ionnes           shall
                                                                         constitute a reserve.
  ■ return a significant proportion thereof to the reserve,
  ' in order to prevent a part of a quota from remaining
  ■ utilised in one Member State while it could be used in
  : others ;                  '                                      '                              Artidi- 3
       whereas, since the Kingdom of Ik'lgium , the                      Should ferro-chromium be required in Ireland, this
      Kingiiom of the Netherlands and the Grand Duchy of                 Member State shall draw a sufficient share from the
      Luxembourg are united within and jointly represented               reserve to the extent that the reserve so permits.
      by the Benelux Fxoriomic Union, any measure
      concerning the administration of the shares allocated
      to that Economic Union rr.ay be carried out by any
     one of its members.
                                                                                                    Art nie 4
                                                                         I.      As soon as one o! the Member States has used
      HAS ADOPTED THIS REGULATION :                                     90 % or more of its initial siiare as fixed in Article 2
                                                                        ( I ), or of that share minus any portion returned to the
                                                                         reserve pursuant to Article 6. it shall forthwith, by noti­
                                Artidi /                                fying the Commission, draw a second share, to he
                          V                              '1
                                                               *   ■    extent that the reserve so permits, equal to 10 % of its
      I. From the date of entry into force of this Regula­              initial share rounded up as necessary io the next
     tion and until 3 1 December 1V7 ? a tariff quotha of               whole number.
 ---pagebreak---                                                                       X
                                                               m      »   «>
                                                                                                    Article 8
                                                                     The Commission shall keep an account of the shares ;
                                                                     opened 1'v the Member Stales pursuant to Articles - 2
                                                                     ami      ,., id r.h.ill , a.s soon as the information reaches it,
    2.    As soon as one of the Member States, after                 inform each State of the extent to which the reserve
   exhausting its ir •' ,< al share, jias used VO % or more of       has been used up.
   the second share ('two by it, that Member State shall
    forthwith , in the manner and to the extent provided             Not later than 5 November 1977 it shall inform the
    in paragraph I , draw a third share equal to 5 % of its          Member         States      of   the   amounts    still  in  reserve
    initial 'hare .
                                                                     following any return of shares pursuant to Article 6.
. J,       As soon as one of the Member States, after                It shall ensure ( hat when an amount exhausting the
  exhausting its second .share, lias used VO % or more' of           reserve is drawn , the amount so drawn does not
  the share drawn by it, (hat Member State shall forth­              exceed tin b.iiancc available, and to this end .shall
  with and in accordance with the same conditions,                   notify the amount of that balance to the Member State ,
  draw a fourth share equal to the third.                            making the last drawing.
  This process shall continue until the reserve is
  exhausted.                                                                                          A rtUic 9
  4.       Notwithstanding paragraphs 1 to 3, a Member                1.     The Member States shall rake all appropriate
  State may draw shares lower than those specified in                measures        to    ensure     that   additional   shares  drawn
  those paragraphs if there arc grounds for believing                pursuant to Article 3 are opened in such a way that
  that those specified m^y not be used in full. Any                  importations may be charged without interruption
  Member State applying this paragraph shall inform                  against their accumulated share of the tariff quora .
  (he Commission of its grounds for so doing.
                                                                   . 2. The Member States shall ensure that importers
                                                                     of the product in question established in their territo­
                                                                     ries have free access ro the share;- allocated to them .
                               A rtide 5
                                                                     3.      The Member State shall charge imports of the
  Additional shares drawn pursuant to Article 3 shall be             product in question against their shares as and when
  valid until M December 1977 .                                      tht product is entered with the customs authorities for
                                                               *     home use.
                                                                     4. ... The extent to which the Member States have
                               Article 6                         . used up their shares shall be detennined on the basis
                                                                     of the importations charged a/j. 'i-.st their shares in
                                                                     accordance with paragraph 3. •
  The Member States shall not later than 1 November
   ! V7 7 return to the reserve the unused portion of their
  initial share which on 1.1 October 1 V77 exceeds. 20 %
  of the initial amount. They may return a greater                                                    A rtiac 1 fi
  portion if there are grounds for believing that such
  portion may not he used in full .                                 At the request of the Commission, the Member States
                                                                    shall inform it of import* charged against their sh.ucs :
  Not later than I November 197 7 the Member States
  shall notify the Commission of the total quantities of
  the products in question imported up to and                                                        A rtidt ■ 11
  including 1.5 October 1 V7 7 and charged against the
  Community quota and of any portion of their initial
  shares returned to the reserve.                                   The Member States and the Commission shall coon-                     '
                                                                    eratc closely to ensure that this Hegulation is
                                                                    complied with .
                               A rlidv 7          ^
  Member States may restrict the use to which pro­                                                   Article " 12
  ducts charged against their quota shares cay be
  put.                                                              This Regulation shall enter into force on
                                                                    the seventh day following its publication
                                                                    in the Official' Journal' of the European
                                                                    Communities .
 ---pagebreak---                                         • 4 »
 V : I 'm Regulation shall be binding jn iu entirety and directly applicable in all Member ' '
'1   MiltCK<                *
V                                               · '                                         · *
     Done at Brussels, J                                                 '. '                 j
                                                             For ihe Council        .         \
         /   •   '         ^ '                                 The Prvsiiiint
 ---pagebreak---  FINANCIAL             STATEMENT                               Date : 20 June 1977
1 . Budgt c li.je concerns' : Cn . 12 Art . 120
2 . Legal basis :    Art . 28 of the Treaty
3 . Title of the tariff measure :
     Draft Regulation ( EEC ) of the Council opening , allocating and administering
     a Communicy 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
     (year 1977 )
4 . Objectives :
    To ensure the supply , under favourable conditions , of user industries .
5 . Method of calculation :
    - No of CCT               ex 73.02 E I
    - Quota volume            50 000 tonnes
    - Quota duty rate         3%
    - Duty rate CCT           8%
6. Loss of receipts :         j 435 350 UCE .