CELEX: 51973PC0389
Language: en
Date: 1973-03-20
Title: Amended Draft DECISION (ECSC) OF THE COMMISSION concerning coal and coke for the iron and steel industry in the Community (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 389
Vol. 1973/0061
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                           COM(73)389 final
                                                           Brussels . 20 March 1973
                                Amended Draft
                      DECISION (ECSC ) OP THE COMMISSION
   concerning coal and coke for the iron and steel industry in the Community
                ( submitted to the Council "by the Commission )
COM(73 ) 389 final
 ---pagebreak---                                 Amended Draft
                    DECISION (ECSC ) OF THE COMMISSION
 concerning coal and coke for the iron and steel industry in the Community
                                   SECTION I
                            Aids "by Member States
                                   Article 1
The Member States are authorized to grant to coal undertakings under their
jurisdiction which supply coking coal and "blast-furnace coke to the Community
iron and steel industry aids to facilitate production , marketing in regions
far away from the production areas and intra-Community trade f and the conclusion
and implementation of long-term contracts for supply and collection * To this end
the following aids may be granted :
(a)   a production aid , for which the governments shall each year determine
       a rate per coalfield , while taking particular account of the average costs
       of production in that coalfield , the price of coking coal in its principal
       sales area and the long-term supply conditions ;
(b )   a sales aid applying to deliveries to areas remote from the coalfield or
       effected "by way of intra-Community trade . The rate of any such aid may
      not exceed 3 u.a . per metric ton of coking coal in the case of deliveries
      to installations which can he supplied direct via maritime transport and
       1.60 u.a . per metrio ton in all other cases . These rates shall he reduced
      to 2.60 and 1.40 u.a. respectively for the sixth year , 2.30 and 1.20 u.a.
      respectively for the seventh year and 2 and 1 u.a . respectively for the
      eighth year of the term of the Decision . These levels are determined on
      the has is of the rates applicable for the first year of application , without
      prejudice to the provisions of Artiole 10 . No scale adopted by a government
      shall introduoe any element of discrimination into the aids relating to
      the deliveries made by the coal undertakings .
 ---pagebreak---                                    Article 2               ■  ■    •
 1#   Where a Member State makes use of its option under Article 1 , the
 following rules shall apply :
 ( a)  the aids shall "be paid to the coking-coal producer undertakings in
       respect of their disposals of their own coal :
 ( b)  the aids may be paid only where the coal is used for coking and the
       coke in question is actually consumed in the blast furnaces of the
       Community iron and steel industry;
                                                                             #
 (c)   the aids may be paid'cnly where deliveries of coking coal and
       blast-furnace coke are made under a long-term contract .
2.    The production aids referred to in Article l(a) of this Decision may
be paid only after the rates thereof have been authorized by the Commission
The authorization shall be given by the Commission with due regard to the
criteria referred to in Article 1(a ).      For this purpose Member States
shall , by 30 September of each year , submit their applications for the
following calendar year , together with supporting documents .       The
Commission shall give its ruling within two months after receipt of the
application .
3.    The sales aid referred to in Article 1 ( b ) may be granted only if it
passed on in the form of price rebate to the purchaser of coking coal or
blast-furnace coke .    When a coal undertaking passes the production aid on
to his buyers , this shall not give rise to discrimination between the
various long-term contracts to be performed by that undertaking.
                               SECTION II
                             Pricinc; rules       -•
                                Article 3
1.    Coal undertakings are authorized , where necessary, to grant rebates
on their list prices, for disposals of coking coal and blast-furnace coke
for the Community iron and steel industry under long-term contract , even
 ---pagebreak---        where there is no actual competition from coal or coke from non-member
       countries at the point of consumption .
       2.     The rebates allowed under ( l ) above shall not cause the delivered
      prices of Community coal and coke to work out lower than those which
      would be charged for coking coal from non-member countries and coke made
      from non–T.eaber country coking coal *                            ' .- • '
      3.     All other provisions concerning the alignment provided for by
      Article 60 , last sub-paragraph 2(b) of the Treaty, and decisions in
      implementation thereof , shall apply to the transactions referred to in        i
      ( ' ) above , in particular those which allow the Commission, in the event
    'of abuse , to abrogate or restrict the right of the undertakings concerned
      to grant such rebates .                  • .     •
                                         Artide 4 "                      ' . '
      Should an undertaking infringe the rules laid down in Article 3 » "the
      provisions of Article 64 of the Treaty shall apply.
                                         Article 5
 . 1.        The delivered prioes of coking coal from non-member countries
  ■ referred to in Article 3(2 ) shall be calculated from the prices cif
   '.Community ports for comparable transactions .        The Commission may fix   .
     guide cif prices .                 -          . '
    '2 .     The delivered prices of blast-furnace coke from non-member countries
     referred to in Article 3(2) shall be calculated from the cif prices for
     coking coal referred to in (l ) above in suoh a way as to cover in full ;
    the net coking costs of the supplying coking plants .         Standard values-
     therefor naj' be laid down by the Commission .
• 3*        The Orrjaission may lay down criteria for the assessment of
    differences in grade in coking eoal and coke .
 ---pagebreak---                                         ssfiTioiT m
                            Drr-unj.tv financir.£ arranretfents
                                         Article 6
 Community financing arrangements shall "be set up for sales aids paid in
 pursuance of Section a of this Peoision in connection with either deliveries
 to a zone remote fron the production coalfield , where the distance involved
 in the transport is not less than 200 kilometres , or intra-Conmunity trade .
 A special fund administered by the Commission shall "he instituted for this
purpose .                                                                .       •
                                       ■ Article 7
                                                                  *                  ' r
 1.    CorBBur:ity financing shall operate in respect of a tonnags of coking
 coal not exceeding* 22 million retric tons and shall "be broken down for
 each year of the t®rni of the Pocision as shown "below :
    •"   Intra-Cornmunity trade :                          '5 million metric tons
         Internal delivering :       G?.r-nany            4.5
                                                          4*5   "      "           "
                                     France               0.9   "      "           "
                                     United Kingdom       1.6   "      ••h   •     »
                                                                                   «
2.     The special fu^i shall he financed as follows  ollows :
(a)      the contribution of the European Coal and Steel Community shall be :
        – for the first year , 0.182 u.a . per metric ton of coal , i.e. , not
            more than 4,000,000 u.a.j
        – for        second and third years , 0.227 u.a . per metric 'ion of coal ,
          ■ i.e. , nV: cor a than 5 P 000, C00 u.a .;                      .   •
        – for Fubpeqvent y^arn , 0.273 u.a. per metric ton of roal , i.e. , not
            more than 6 f C00,0«Y) u.a .          . •
(b)     the Member States urde'r whope jurisdiction iron and steel undertakings
        consume blast--fn.rr)ane coke received directly or indirectly v^der the
 ---pagebreak---   arrangsraents specified in Article 6 shall provide the following
                                                 •*
  overall contributions , on the scale shown in paragraph 3s
  - for the first year , 0.818 u.a. per metric ton of coal , i.e. , not
    more than 18,000,000 u.a .;                                         , i
  - for the second and third years , 0.773 u.a . per metric ton of coal ,
    i.e. , not more than 17,000,000 u.a.;
  – for the fourth and fifth years , 0.727 u.a. per metrio ton of coal ,
    i.e. , not more than 16,000,000 u.a .;                    ,
    for the sixth year, O.564 u.a. per metric ton of coal , i.e. , not
    more than 12,000,000 u.a.;           ,  •  Y
 – for the seventh year, 0«50 u.a. per metric ton of coal , i.e. , not .
    more than 11,000,000 u.a.;                      r
 – for the eighth year, 0.291 u.a. per metrio ton of coal , i.e. , not
    more than 6,400,000 u.a.;
 the overall contribution of the steel industry shall not exceed
 22,000,000 u.a ., i.e. , 1 u.a . per metrio ton of coal "benefiting
 from sales aid , during the first five years of the teirsn of the
 Decision .    During the last three years , it shall "be reduced "by the
 amount resulting from the diminuation of the aid rates as laid down
 in Article 1 (b) •   The overall amount of the contribution shall be
 apportioned among the iron and steel undertakings on the basis of
 their consumption of blast-furnace ooke .
The contributions to be provided by the Member States shall be on the
following acai «:
                      Germany              35$              • "                  ■
                      Belgium          , 8$                                   ■.
                      Prance               29$                  \ ' '• / J
                     United Kingdom        11$        .   .               .
                      Italy. 1 '        • 7$ '          '                   •      '
                      Luxembourg            6$
                     Netherlands            4$
 ---pagebreak---                                          Article 8
   a.   The supplier States may appxy for reimbursement from the special
  fund of aide actually paid .
  2.    The Commission shall check the applications and determine the amounts
                                          /
  to "be reimbursed from the special fund to the Member States concerned .
                                       /
                                                                                 if
  the tonnages concerned exceed the limit fixed in Article 7(l ) t the
  reimbursements shall bo correspondingly reduced *         regards intra-Community
 sales , the percentage of the reduction is the sajne for each of the supplier States
  3.    The Commission shall fix the contributions to be paid into The special
   fund on -jhe basis of these amounts .
  4*    To speed up Community financing, the supplier countries shall notify
  the Commission of the deliveries of coking coal qualifying for aid made
  during the preceding quarter under Article 6 . - On the basis of these
  notifications , the Commission shall request the Member States to pay the
• corresponding amounts .    The Commission shall forthwith apportion these
  amounts between the supplier countries , at the same tine as the corresponding
  contribution of the European Coal and Steel Community .        The Commission
  shall call for contributions from the steelmaking undertakings and immediately
  apportion the payments among the producer and supplier countries .
  5.    The final accounts shall be settled at the beginning of eaoh calendar
 year in respect of the preceding year .                  '
                       • .          SECTION IV
                           General arai final provi sions
                                      Artide 9       –
 1.    The Commission shall take into account the aids provided for in this
 Decision in assessing whether the aids referred to in Articles 6 to 9 of
 Decision No j/jl /ECSG of 22 December 1970 axe liable to interfere with the
 proper functioning of the Common Market .            .     '    '
                                                                           » */'• *
 ---pagebreak---    2.   The Corrmission r.ball also ensure that the aids provided for in this
  Decision do not have the effect of distorting conditions of competition
  "between coal , coke arri. iron or steel undertakings .
                                      Article 10
  1 . In an emergency , and otherwise at the end of the first year of
  application of this Decision and then every two years , the Commission may, *
 "by decisions taken after consultation with the Consultative Committee aiid
 the Council , amend ;                                           .«•-
 - the rate of the sales aids,                        , . .                      '
 - the ceiling to' intra-Community trade ,
- the rules governing the financing of the special fundj
- the scale referred to in Article 7j para . 3t
These amendments shall take account of the long-term trend of supply
conditions and the supply pattern within the enlarged Community.
2.     If at the request of a Member State or on its own initiative the
Commission finds that :
 (a)    the implementation of this Decision is liable to give' rice to serious
        disturbances in the common market for ooal and steel , or to difficulties
        which may result in a deterioration in the regional economy , or that
(b)     appreciable changes are taking place in the conditions , volume or
        pattern of intra-Comnrunity trade , thus altering the economic conditions
        prompting the adoption of this Decision ,
        it may suspend application of this Decision .       It shall refer the matter
        to the Council forthwith .
3 . If at the request of a Member State or acting on its own initiative , the
Commission finds that performance of the long-terra contracts is jeopardising
                                                                               / „
                                                                          - 4 /.
 ---pagebreak---                                          - 8 -
 ■..^e attainment of the objectives of this Decision , it may, in respect of the
    .dertakings in question , limit the "benefits deriving from the application
      Article 1 .                                                                 '•
 4.     In an emergency, the Commission shall , on the request of a Member State ,
 lay down without delay the necessary safeguarding measures , notify the
 other Member States accordingly and refer the matter to the Council forthwith .
             '               '     '    Article 11
                                                                   c *
The Commission shall periodically report to the Counoil on the application
 of this Decision and on developments in the supply situation , in particular
 in connection with intra-Community trade .
                                        Article 12                           •
After consulting the Council and the Consultative Committee , the Commission
 shall take all measures necessary for the application of this Debision .
                                        Article 13
This Decision shall enter into force on                                 for a
period of eight years .        The applications provided for in Article 2(2 ) in
respect of 1973 shall be submitted by 30 June 1973 »          For the period from
               to 30 September 197 3 » the provisions concerning the payment of
aids ( Article 2(l)(o )), possible rebates in the absence of actual competition
(Article 3(l )), and Community financing ( Article 7 ) shall apply
notwithstanding the absence of a long-term contract ."
Done at Brussels ,
                                           For the Commission
                       ._ '                  The President