CELEX: 51975PC0572
Language: en
Date: 1975-11-14
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for unwrought magnesium falling within subheading N° 77.01 A of the Common Customs Tariff (submitted to the Council by the Commission)

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COM (75) 572
Vol. 1975/0216
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 ---pagebreak---         COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(75)572 final.
                                                         Brussels . November 1975
                                                                               /
                                  Proposal for a
                         REGULATION ( EEC ) OF THE COUNCIL
        on the opening , allocation and administration of a Community tariff
        quota for unwrought magnesium falling within subheading N° 77.01 A
        of the Common Customs Tariff
                   ( submitted to the Council by the Commission )
C0M(75 ) 572 final .
 ---pagebreak---                         EXPLANATOÏÏÏ VMONJMM
1 . In an exchange of letters with the Nordic Delegation , the Community has
undertaken to open at the beginning of each year , for unwrought magnesium
falling within subheading 77«01 A of the Common Customs Tariff , a tariff quota
the volume of which is to be calculated in such a way that Community requirements
not covered by Community production of the product in question may be imported
duty–free .
This Proposal concerns the opening , allocation and administration of the tariff
quota laid down for 1976 .
2 . At its meeting of 2–3 December 1974 » "the Council requested the Commission
to carry out a supplementary study of the magnesium market , and particularly to
make a more accurate evaluation of Community requirements as regards supplies
from non-member states , in collaboration with the producers and consumers of
this metal .
This study, is attached to this note .
It should be pointed out before going any further that the opinions expressed
by the producers and consumers of magensium at the meeting held on 25 April 1975
in connection with this study agree on the following main points :
(a ) magnesium consumption fell substantially in the last few months of 1974 and
      the early months of 1975 * principally owing to the present acute economio
      crisis and the decrease in the use of magnesium in the manufacture of car
      engines and wheel rims . For 1975 1 consumption should reaoh a level between
      40 000 and 44 000 metrio tons ;
(b ) as for the production capacities of Community industries they are continually
      increasing, and for 1975 will amount to about 28 000 ;
( c ) the extra pure unwrought magnesium production of which was commenced in one
      Member State in order to satisfy the Community user industries has had to
      be exported to non-member countries or held in storage in the absence of
      Community buyers . Production of this quality of magnesium will thus be
      started up in another Member State , in 1975 t and not insignifioant quantities
      will be available for export as early as the beginning of 1976 ;
 ---pagebreak---                                  - 2 -
(d) in order "to avoid causing difficulties in the Community ^ manufftSturing ^
     sector , and to avoid pouring cold water on the idea of extension of this
     sector , especial care must be exercised in fixing the tariff quota
     volumes to be opened , whether they be for 1975 or f°r 1976 , considering
     the uncertainties which surround all   sectors of the economy .
3 . As a result of the meeting of producers and consumers , this question was
dealt with on 15 May 1975 at a meeting of the "Tariff Economy" Working
Party with the governmental experts concerned , during which the opinions
delivered by the producers and consumers were confirmed , at least in so far
as the levels which could be reached in Community consumption and production
during 1975 were concerned . The particular care which ought to be exercised
in fixing the tariff quota volumes to be laid down for the present and the
near future , was also reaffirmed .
4 . The fixing of the tariff quota volume in recent years has proved to be
extremely hazardous owing to the impossibility of estimating in advance
Community levels of consumption and production . For these reasons , the tariff
quota volume opened on 1 January each year has been fixed at a moderate level ,
calculated conservatively and not ruled out during the course of the year
adjustments based on more accurate ■ data and estimates . At the present time
the situation is unchanged because production and consumption forecasts
cannot yet be put forward , and will not be available until 1976 .
This is the reason why, in the case of the tariff quota to be opened on
1 January 1976 , it is planned to make use once again of the methods adopted
in recent years and to calculate the provisional volume of the tariff quota
on the forward data relating to 1975 » whioh are the only ones available at
present . These data set the usual items for calculation of the tariff quota
at the following approximate levels :
- consumption                                     43 750 metric tons
- production                                      28 000 metric tons
- inward processing                                3 500 metric tons
- duty-free importations carried out for the
   benefit of another preferential arrangement
   (EFTA, associated countries )                   3 000 metric tons
- exportations intended for non-member countries 3 000 metric tons
On this basis , the provisional tariff quota to be opened on 1 January 1976
is about 6 000 metric tons .
 ---pagebreak--- 5 . As far as the subdivision of the abovementioned 6 OOO-ton volume between
the three commonly adopted qualities of magnesium is concerned ( extra pure ,
not in alloy and in alloy ), data relating to importations from non-member States •
into the Community during recent years reveal a subdivision between magnesium
not in alloy and magnesium in alloy in a ratio of 40:60 .    They also reveal
that an. almost constant increase in supplies of magnesium not in alloy from
Eastern Bloc countries , since imports of this quality of magnesium from USSR
alone rose from 17.8% of consumption in 1970 to 25.8% in 1971 » 35      in 1972
and 26.4% in 1973 against 34.1%, 44*6%, 39«2% and 36.4% respectively of
Norwegian origin .
In view , however , of the fact that Community production is centred mainly on
magnesium not in alloy , and only subsidiarily on magnesium in alloy and extrar-pure
magnesium , and that importations from non–member countries do not necessarily
reflect the state of the actual requirements of Community user industries , it
is planned to keep to a ratio of 20:80 for the subdivision of the initial
tariff quota volume .    Under these conditions , and having regard to the supply
potential within the Community , the volumes assigned to each of the qualities
ought , in the Commission 's opinion , to be the following :
- extra-pure magnesium .           200 metric tons
- magnesium not in alloy         1 1 60 metric tons
- magnesium in alloy             4 640 metric tons .
6.  As for the form of administration , it is proposed , as has also been customary ,
to set up for the three quota volumes a reserve into which any surplus portions
of the shares would be returned and from which the Member States which still
had requirements to be satisfied oould draw supplementary shares .
 ---pagebreak---                               Information   Document
                regarding Counoil Regulation (KEG ) NO 3174/74 of
                11 Deoember 1974 ( OJ Wo L 339 of 18 December 1974 )
                opening, allocating and. providing for the ad mini–
                stration of a Community tariff quota for unwrought
                                   magnesium
1.              Through the medium of this Regulation the Council has opened
up a duty-free tariff quota for unwrought magnesium falling within subheading
77.01 A of the Common Customs Tariff with a volume , provisionally fixed at
12,000 metrio tons , divided into :
( a) 700 metric tons of extra-pure ;
(b ) 1,500 metrio tons not in alloy ;
( c) 9» 800 metric tons in alloy .
2.              As the follow up to the Council request  made when this Regulation
was adopted , the Commission has conducted a survey of   the magnesium market with
the help of the top Community producers and consumers    of this commodity and on
the basis of a working document drawn up internally#     This document was based
on economic information relating to the years prior to 1974 » the only informar-
tion then available , and was minutely examined at the "producers cum consumers'*
meeting held on 25 April 1975.
            I
3*              This particular study and the information gathered at the meeting
of producers and consumers have established, among other facts , the following
facts concerning the Community as now constituted *
A. Pat put
                The figures available on aotual magnesium outputs are 1
                                                                     •/••
 ---pagebreak--- First melt :
                          1966 !I    1967 !!   1268 ]!  12691!    1210 !I   1271 ];   1212 ]    1973
                                 ί        :f                                                 I
Bénélux                          ι         î                  I     M             i          I
Denroark                                                                                          mm
Germany                    200                            mm                             mm
France                   3,419 [ 4,164        4,478    4t414     4.611     7,217     6.848     7,148
 Ireland                                                                                          mm
Italy                    6,515      6.317     7,445    7>ЮЗ      7.580     8*39°     9,054     8*936
United Kingdom
                               i
                                                 mm j                   1
                                                                        '
                                                                              -I             L_-
EEC Total               10.134 ! I IO-48I iI 11.9231! 11.517 !I 12.191 :I 15,607 :I 15,9031[ l6-0&4
Second melt :
Bénélux
                                 I         I     - !I               -
                                                                                         - I
Denmark                                                                                  mm
Germany                  1.300      2.200     2.600    2.130     1,854     1,751     1,851     1,795
France                      «
Ireland                                                                       mm
Italy                                                                        300        400      500
United Kingdom           3,758      3,682     3,539    2,913 ] 2,756 2,485 2,700 2,700
EEC Total                5,058 !! 5,882 !I 6 ,139 !I 5,043 !I 4,6l0jI 4,536]i 4,951 1I 4,995
  There being no exact figures available , those shown against this country
  are estimates .
                These figures indicate :
( a) that in 1973 actual Community output reached 21,000 metrio tons ,
     16,000 metrio tons of which were of first melt and 5»000 metrio
     tons of second melt grade ;
(b ) that between 1966 and 1973 the annual expansion rate of this output was
     6,8% ( 11.1$ in the case of France and 4.6$ in the oase of Italy ).
                Foreoasts put forward by Community producers and oonfirmed by
government experts at a meeting of the "Eoonomio Tariff Problems" Group held
subsequently gave the actual production capaoities for first-melt magnesium
in the years 1974 to 1976 as s
 ---pagebreak---                                      3
*>
                                        1974           1975             Щ6
   irsuioa                             7,000          8,500            10.000
   Italy                             10,000          15,000           20,000
   EEC Total                         17,000          23,500           30,000
                  Mention must be made in regard to the Italian production capaoities
   that the producer has said that these levels would he attainable if the appropriate
   demand were forthcoming sufficiently early for it to be entered in the manufactu­
   ring programme •
                  To these capacities must be added the output forecast of second-
   melt magnesium which is assessed , for the three years in question, at the 1973
   level of 5,000 tonnes .
                  The total production capacities  would therefore amount to 22,000
   metric tons for 1974 , 28,500 metrio tons for 1975 and 35,000 metrio tons for
   1976 .
                  It is appropriate to note also that appreciable quantities of
   extra-pure magnesium, production of which had been started in a Member State
   with a view to meeting the demands of Community user industries , have had to
   be exported to non-member countries or else stockpiled through lack of Community
   buyers .  The stockpile in question, in April 1975r stood at 500 metrio tons ^
   Production of this grade of magnesium will begin in another Member State in
   1975 and quite large quantities could be allocated to the export market from
   the beginning of 1976 onwards#
   B. Consumption .
                  The information available regarding consumption is not uniform in
   content and related to consumption irrespective of whether it is apparent or
   actual and, in the case of some oountries , it includes the magnesium of first
   and second melt *  The trend in respeot of the larger consuming Member States can
   be seen from the following table covering the years 1966 to 1973 :
 ---pagebreak---                                       4
                           1966 !   1967 !  i960 !    1060 !    1970'   1971 !    1072 ! 1273
                                                                             1
Bénélux                  1*300       900   1 ,202 I  1.600
                                                     1,600     2,172   1,500 ! i.8oo 1-980
Germany^"               40,600 34,700 44,200 47,900 } 49,830          49.860 39,170 ! 43.410
France                   4.326    5 ?158   5,6301 5*250} 6.500         6,150 5,650 ; 6.500
Italy                    1 « 800
                           /
                                  1,800                  υυ            3,600 ]   3,8oo : 4,400
                                                         ηΓι ?                   4,800 ; 5,000
United Kingdom           8,200'   8,000    7*300     6 ?900            4,700 ;
EEC Total               56,226 ! 50,5581                            Τ 65.810 :I 55,220 161.290
 Figures include second–nelt magnesium »
               Tho final uses of magnesium in the Community , excluding Germany ,
gave on average the following percentage "breakdown %
               Aluminium alloys                43%
               Foundry castings                20%
               Cast billets                     15%
               Chemical products                 17°
               Hot-rolled products               57°
               Other                            10%
               The usage of magnesium m Germany differs distinctly from the
average of the other Member States because about 90% of the magnesium consumed
is used by the casting industry ( castings for motor vehicles ).
               In consequence of recent trends in the industrial economic picture ,
some changes have occurred in respect of the consumption of unwrought magnesium
and its final uses .  Prom the information available for 1974 and. the forecasts
put forward for 1975 , Community consumption in 1974 would have been 62,000 metrio
tons ( 28,000 metric tons not in alloy and 34,000 metrio tons in alloy ) and in
1975 it should be 41,000 metric tons ( 23,000 metric tone not in alloy and
18,000 metric tons in alloy ).
               This drop in Community consumption of magnesium is mainly due to
the present economic crisis and the fall-off in the use of magnesium in car
engine and wheelrim manufacture . This drop affects magnesium not in alloy (the
consumption of which in 1975 should drop to 23,000 metric tons as against 28,000
metric tons in 1974 ) just as much as magnesium in alloy (the consumption of
which should drop from 34»000 metrio tons in 1974 to 18,000 metric tons in 1975 )*
 ---pagebreak---                                           5
                  The Community consumption for the two years under oonsideration
 would break down into final uses as follows :
                                                       1974                            1975
                  Aluminium alloys                      24%
                  Foundry castings                      55%                             44%
                  Cast billets                           1%                             10$
                  Chemical products                   ° 5%                                7%
                  Others                                 $%                               5%
 C. Trade with non-member countries
                  The following tables reproduoe the information available on
 Community imports from non-member countries , broken down where possible between
 magnesium in alloy and that not in alloy :
                                Imnorts from non-member countries ( metric tons )
                       Magnesium   not in alloy
                       sBSasc:ssBaBuaa=s:&aa:=s&
                                                                        Magnesium        in alloy
                                                                        cr=jSá===33==s==ca==3»===ÍS3
              II  1970      1971   [    1972 Il    1973   7, 1970   I   1971      I   1972     ![  1973    !
                                                          Il         i
Bénélux          1,510        806     1*391 j    2,965
                                                          «
                                                          !•
                                                          ··
                                                                    !
                                                                 27 j
                                                                    ι
                                                                            477 I          52 I        85j
Denmark            146       126         172         88   h
                                                          »
                                                                 _            -
Germany          5,675 !   5.861      7.118      9.149    !|43|40l     36,885 j
                                                                           '
                                                                                    22.870        27.232
France         ; 2,247       385         432     1.323    π      16          111           10            1
                                                          n         i
Ireland                                    M
Italy              150       111         108        389   ϋ     259          686         265         686
United                                                    It
                 5.048     3.922      4 «719     5 «325   11
                                                          If     ^                        mm
  Kingdom
           ■ Ί 14,776     11.211     13.940                            38,159       23,197        28,004 j
              1                                 19,239 ÎÎ43-703
                                                          tf  '
                 mcl .      mcl .      mcl •      mcl .   |î mcl .      mcl .        incl •       incl .   i
Norway           5,033     5,004      5*462      7,000 ÎI21.895        19,484       20,024        18,533 j
U.S.A.           3,764     1,142         953     5,572 "16,746         14,538            519       6.857
U.S.S.R.         2,636     2,890      4,966      5,077    U 2.616       2,473         2 «355    [ 2Î6L*
Canada         I 3,037 1! 1,022 j1 1,071 jI 1,101 *             971 1         -           - 1         -    i
 ---pagebreak---                                   6
                This information shows t
( a) that Norway occupies first place as the origin of imports , followed
      by the U»S#S.R « and the U.S.A«;
(b ) that the U.S.S.R. is steadily increasing its exports of magnesium not
      in alloy to stand on average at 3,900 metrio tons per annum as against
      5,600 metrio tons for Norway ;
( c ) that the ratio of the imports of magnesium in alloy end not in alloy
      over the total imports changed from 75/25 in 1970 to about 60/40 in
      1973 and that this fact reflects the deoline in the motor vehiole seotor
      and the reduction in the use of magnesium in alloy in this sector and the
      treni towards an increase in the use of magnesium not in alloy#
D. Comnnmity înrport recniirements
                The opinions expressed by producers and consumers and also by
government experts in regard to the assessment of the Community import
requirements to be calculated in connection with the tariff quota provided
for under the commitment entered into in respeot of the Nordio countries
agree on the one fact that , in view of the uncertainties whioh overshadow
every seotor of the economy, it would be right to appear particularly
careful •
                On the basis of forecasts , imports made under inward prooessing
arrangements , those jnade at a nil rate of duty for the benefit of another
preferential soheme ( associated countries or EFTA) and exports to non-member
countries being assessed respectively at 3,500, 3,000, and 3,000 metrio tons ,
the quota volume oalculated by the routine method would work out for unwrought
magnesium in general at a figure below the volume of 12,000 metrio tons
already opened in purBuanoe of the Regulation in question on 1 January 1973 *
 ---pagebreak---                           Proposal for a
              REGULATION (EEC ) No       /75 OP THE COUNCIL
          on the opening , allocation and. administration of a
          Community tariff quota for unwrought magnesium falling
          within subheading No 77.01 A of the Common Customs Tariff
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economio Community , and
in particular Article 113 thereof ;
Having regard to the proposal from the Commission;
Whereas , in an exchange of letters of 30 June 1957 y confirmed in an exchange
of letters of 16 April 1973 , the European Economic Community has undertaken ,
as regards unwrought magnesium falling within tariff subheading No 77*01 A ,
to open an annual Community tariff quota for a quantity such that Community
requirements for the said goods not covered by Community production may be
imported duty-free ;
Whereas in order to establish the volume of the Community tariff quota an
assessment must be made of the total consumption by the user industries of the
Member States during the tariff year and of the Community production level for
the same period ; whereas even a very rough assessment of total consumption
and production for 1976 will be highly unreliable since it is at present
impossible to estimate either the volume of unwrought magnesium used in certain
Member States in the year under consideration or the likely level of Community
output ; whereas there is in any case no likelihood of Community production
meeting the full demand in the tariff year ;    whereas the annual quota volume
must therefore be fixed at an appropriate level , probably about 6 000 metric
tons ; whereas the fixing of this volume is based on conservative estimates and
later adjustments are not excluded ; whereas the duties to be applied by the
new Member States under the said tariff quota must be in conformity with the
relevant provisions of the Act of Accession;
 ---pagebreak--- Whereas the markets In magnesium containing not less than 99»95% » by weight
of pure magnesium ( hereinafter called "extra–pure magnesium"), in magnesium
containing not less than 99 « 8% but less than 99 • 95% by weight of pure magnesium
( hereinafter called "unwrought magnesium not in alloy") and in magnesium
containing less than 99-8% by weight of pure magnesium ( hereinafter called
"unwrought magnesium in alloy") differ considerably ; whereas a distinction should
therefore be made between the three qualities and the quota volume under
consideration should be divided between them ;
Whereas , talcing into account an overall , provisional quota volume of
6 000 metric tons , the immediate need to import some 200 metric tons of extra-pure
magnesium , 1 160 metric tons of unwrought magnesium not in alloy and 4 640 metric
tons of unwrought magnesium in alloy has been established ;     whereas these
figures appear justified both by the former ratios of consumption of these
qualities to total consumption of magnesium and by the short-term outlook for
Community production of these qualities of magnesium ;
Whereas equal and continuous access to the quota should be ensured for all
importers and the rate of levy for the tariff quota must be applied consistently
to all imports until the quota is used up ; whereas , in the light of the
principles outlined above , a Community tariff arrangement based on an
allocation between the Member States would seem to preserve the Community
nature of the quota ; whereas to represent as closely as possible the actual
development of the market in the said goods the allocation should follow
proportionately the requirements of the Member States calculated both from
statistics of imports from third countries during a representative reference
period and from the economic outlook for the tariff year in question ;
Whereas , however , the available statistics of imports into the Member States
from third   countries to which no equivalent tariff preference was applied under
any other preferential arrangements only cover unwrought magnesium in alloy
and unwrought magnesium not in alloy ; whereas during the three years for which
statistics are available such imports represented the following percentages
of total imports of the said goods ; whereas on the basis of the information
at present to hand it appears that imports of extra-pure magnesium are almost
wholly into the United Kingdom ;
 ---pagebreak---                                       - 3 -
  for wwrought magnealum net in alloy i
                                          1972      1973       M
  Bénélux                                12.27      6,55      23.18
  Denmark                                 0.09      0          0
  Germany                                62-42     69-93      52.96
  France                                  3.53 .    9-39       7-11
  Ireland                                 0-09      0.01       0.01
  Italy                                   0-44   '  З.Об       2.21
  United Kingdom                         21-16     11.06      14.53
  for unwrought magnesium in alloy :
  Bénélux                                 0.32      3.18       1.72
  Denmark                                 0.06      0          0
  Germany                                97.51     93.23      94-26
  France                                  0.06      0          1.57
  Ireland                                 0.06      0.01       0
  Italy                                   1.87      3.56       2-05
  United Kingdom                          0.12      0-02       0.39
Whereas in view of these factors and of market forecasts for these products
in 1976 , it is necessary in the case of extra-pure unwrought magnesium to allot
on an experimental "basis the quota volume for this quality and to provide
for Member States which have requirements to be met to be able to draw upon
this reserve in appropriate quantities , and whereas it is necesssary to fix
for the other qualities of magnesium initial percentage shares at approximately
the following levels :
– for unwrought magnesium not in alloy :
  Bénélux                     15.60
  Denmark                      0. 04
  Germany                     62 . 50
  France                       4«50
  Ireland                      0.05
  Italy                        0.40
  United Kingdom              16.91
 ---pagebreak---                                  - 4 -
– for unwrought magnesium in alloy }
   Bénélux                     2.12
  Denmark                      0.03
   Germany                    96.50
  France                       0.03
  Ireland                      0.02
   Italy                       0.80
  United Kingdom               0.50 :
Whereas , to take account more accurately of future import trends for magnesium
in alloy and not in alloy , the quota volume for each of these qualities of
unwrought magnesium should be divided into two tranches , the first being
allocated among the Member States and the second held as a reserve to cover
at a later date the requirements of Member States who have    used up their
initial shares ;
Whereas to give importers some certainty the first tranches should be fixed
at 1 000 metric tons of unwrought magnesium not in alloy and 4 000 metric tons
of unwrought magnesium in alloy , the balances being held as the reserves ;
Whereas the initial shares may be used up fairly quickly ;   whereas , therefore ,
to avoid disruption of supplies , any Member State which has almost used up
one of its initial shares should draw a supplementary share from the appropriate
reserve ;  whereas this must be done by each Member State as each one of its
supplementary shares is almost used up , and as many times as the reserve allows ;
whereas the initial and supplementary shares must 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 position to follow the extent to which the quota volume has been
used up and inform the Member States thereof ;
Whereas if , at a given date in the quota period , a Member State has a
considerable quantity of one of its initial shares left over , it is essential
that it should return a significant proportion thereof to the appropriate
reserve , to prevent a part of one or other quota volume from remaining unused
in one Member State while it could be used in others ;
 ---pagebreak---                                      - 5 -
Whereas since "the Kingdom of Belgium , the Kingdom of the Netherlands and the
Grand Duchy of Luxembourg are jointly represented by the Benelux Economic Union
any measure concerning the administration of the shares allocated to that
economic union may be carried out by one of its members ;
HAS ADOPTED THIS REGULATION :
                                  Article 1
1.   During the period from 1 January to 31 December 1976 a Community tariff
quota of 6 000 metric tons shall be opened in the Community for unwrought
magnesium falling -within subheading No 77*01 A of the Common Customs Tariff .
2.   The volume of the tariff quota shall be divided as follows :
     ( a ) as to 200 metric tons for unwrought magnesium containing not less
           than 99 - 95% by weight of pure magnesium ("extra-pure magnesium"),
           intended for the nuclear industry and under customs control or the
           administrative equivalent ;
     ( b ) as to 1 160 metric tons for unwrought magnesium containing not less
           than 99.&/0 but less than 99*95% by weight of pure magnesium ("unwrought
           magnesium not in alloy");
     ( c ) as to 4 640 metric tons for unwrought magnesium containing less than
           99*8% by weight of pure magnesium ("unwrought magnesium in alloy").
3.   Imports of the said goods may not be countered under this tariff quota
if they are already free of customs duties under other preferential tariff
treatment applied by certain Member States .
4.   Within this tariff quota the Common Customs Tariff duties shall be totally
suspended .
5.   Within this tariff quota the new Member States shall apply duties calculated
in accordance with the relevant provisions of the Act of Accession .
 ---pagebreak---                                         - 6 -
                                     Article 2
   1.    The volume of 200 metric tons , referred to in Article 1.2(a ), allocated
  to extra-pure unwrought magnesium intended for the nuclear industry shall be
  allotted to the Community reserve .
»                           __
  2.      If in a Member State a need is felt for extra-pure unwrought magnesium ,
  that State shall draw , to the extent permitted by the amount of the reserve ,
  a sufficient share of the reserve thus set up .
                                     Arl\cle 3
   1 . A first tranche of each of the volumes provided for in Article 1.2(b ) and
   ( c ), which amount respectively to 1 000 metric tons for unwrought magnesium
  not in alloy and 4 000 metric tons for magnesium in alloy shall be divided
  among the Member States .        The shares , which are valid from 1 January to
  31 December 1976 , subject to the reservation expressed in Article 6 , amount
  to the following quantities for each Member State .
  ( a ) for unwrought magnesium not in alloy :
         Benelux               15 6 metric tons
         Denmark                  0.5 metric tons
         Germany               625 metric tons
         Prance                 45 metric tons
         Ireland                  0.5 metric tons
         Italy                   4 metric tons
         United Kingdom        169 metric tons
  ( b ) for unwrought magnesium in alloy :
         Benelux                85 metric tons
         Denmark                  1 metric tons
         Germany           3 860 metric tons
         France                  1 metric tons
         Ireland                  1 metrio tons
         Italy                  32 metric tons
         United Kingdom         20 metrio tons
 ---pagebreak---                                       - 7 -
2*  The seoortd traftofces , of 160 ttrid 640 metric tons respectively , shall %§
held as Community reserves .
                                  Article 4
1 . If 90$ or more of one of a Member State 's initial shares as specified
in Article 3(l ), or of that share minus the portion returned to the appropriate
reserve where Article 6 is applied , has been used up , that Member State shall
without delay , by notifying the Commission , draw a second share equal to 10%
of its initial share , rounded up where necessary to the next unit , to the
extent permitted by the amount of the reserve .
2 . If , after one or other of its initial shares has been used up , $Cf/o or
more of the second share drawn by a Member State has been used up , that Member
State shall , in accordance with the conditions laid down in paragraph 1 , draw
a third share equal to 5i° of         initial share , rounded up where necessary
to the next unit .
3.  If , after one or other of its second shares has been used up ,          or more
of the third share drawn by a Member State has been used up , that Member State
shall , in accordance with the same conditions , draw a fourth share equal to
the third .
This process shall continue to apply until the reserves are used up .
4.  By way of derogation from paragraphs 1 to 3 , a Member State may draw shares
lower than those fixed in those paragraphs if there are grounds for believing
that those fixed may not be used up .       It shall inform the Commission of its
reasons for applying this paragraph .
                                  Article 5
Supplementary shares drawn pursuant to Article 4 shall be valid until
31 December 1976 .
 ---pagebreak---                                    Article 6
A Member State which on 15 September 197° has not used up its initial share shall
return to the reserve not later than 1 October 197& "the unused portion exceeding
20fo of the initial amount . It may return a greater portion if there are grounds
for believing that it may not be used up .
Member States shall , not later than 1 October 1976 , notify the Commission of
the total quantities of the said goods imported up to and including 15 September 1976
and charged against the Community quota and any quantities of the initial shares
returned to the appropriate reserve .
                                  Article 7
The Commission shall keep an account of the shares opened by the Member States
pursuant to Articles 2 , 3 and 4 and shall , as soon as it has been notified ,
inform each State of the extent to which the reserve has been used up .
It shall inform the Member States , not later than 5 October 197& , of the amount
still in reserve after amounts have been returned thereto pursuant to Article 6 .
It shall ensure that the drawing which uses up a reserve is limited to the
balance available and to this end shall specify the amount thereof to the Member
State   making the last drawing .
                               Article 8
1.   Member States shall take all measures necessary to ensure that supplementary
shares drawn pursuant to Article 4 are opened in such a way that imports may be
charged without interruption against their accumulated shares in the Community
quota .
2.   Member States shall ensure that importers of the said goods established in
their territory have free access to the shares allocated to them .
3.   The extent to which a Member State has used up its shares shall be determined on
the basis of the importations of the said goods submitted to the customs under
declarations of entry for home use .
 ---pagebreak---                                        - 9 -                      Cftm/ 509/ 75–E
                                    Artiolâ 9
Л
  Member States shall inform the Commission at regular intervals of imports
  actually charged against their shares .
                                   Article 10
  Member States and the Commission shall cooperate closely in order to ensure that
  this Regulation is observed .
                                   Article 11
  This Regulation shall enter into force on 1 January 197° «
  This Regulation shall be binding in its entirety and directly applicable in
  all Member States .
  Done at Brussels ,                             For the Council
                                                 The President