31989R3723
No L 368 / 16 Official Journal of the European Communities 18 . 12 . 89
COUNCIL REGULATION ( EEC ) No 3723 / 89
of 6 November 1989
on the restriction of exports of steel pipes and tubes to the United States of America
THE COUNCIL OF THE EUROPEAN COMMUNITIES , Whereas , in order to keep a check on exports , a system of export licences and certificates should be introduced;
Having regard to the Treaty establishing the European Whereas it is necessary to provide that export licences Economic Community, and in particular Article 113 issued to undertakings shall indicate the undertaking thereof, engaged in production of steel pipes and tubes within the Community and established in the issuing Member States Having regard to the proposal from the Commission, ' that is holding the allocation against which the licence is issued ; Whereas the Community has concluded an Arrangement^ 1 ), hereinafter referred to as 'the Whereas , in order to take account of the interests of Arrangement', with the United States of America under distributive undertakings , it must be possible for these which exports to the United States of certain steel pipes and licences to be transferred not only between undertakings tubes originating in the Community are to be limited to producing steel pipes and tubes but also by undertakings certain levels over an agreed period; whereas , moreover, it producing steel pipes and tubes to distributive is necessary, pursuant to this Arrangement, to introduce in undertakings , in particular where the undertakings the Community measures to restrict the amount of these producing steel pipes and tubes decide to sell their products products exported to the United States ; to such distributive undertakings;
Whereas, in accordance with the Arrangement, the export Whereas it appears necessary , and for the moment restrictions cover steel pipes and tubes originating in the sufficient , that Member States ensure compliance with the Community; whereas the origin of these products is different provisions of the regime laid down by applying determined in accordance with applicable Community the various penalties provided for in their laws ; legislation, that is to say Council Regulation (EEC) No 802 / 68 of 27 June 1968 on the common definition of Whereas, in order to facilitate the application of the the concept of the origin of goods ( 2), as last amended by envisaged provisions , it is appropriate to set up a procedure Regulation ( EEC) No 1769 / 89 (3 ); establishing close cooperation between Member States and the Commission within a committee ; whereas it is sufficient Whereas, for practical and management reasons, the for this purpose to apply the procedure set up in Council quantitative export limits agreed by the Community must Regulation (EEC ) No 1023 / 70 of 25 May 1970 be allocated among the Member States; whereas, in order establishing a common procedure for administering to do so, an allocation method must be established ; quantitative quotas (4 ), whereas , thereafter, the Member States must share out the amounts allocated to them among undertakings in accordance with objective criteria ; HAS ADOPTED THIS REGULATION :
Whereas utilization of the Community limits, based on allocations among Member States made in this way, would Article 1 seem to be in keeping with the Community nature of these limits; considering that, in particular, the allocation 1 . Community export limits are hereby established for the method provides for a maximum use of export period 1 October 1989 to 31 December 1990 (hereinafter possibilities; referred to as 'the initial period') for the year 1991 and for the period 1 January 1992 to 31 March 1992 (hereinafter Whereas the allocation among the Member States of the referred to as 'the end period'), for exports effected after 1 October 1989 from the Community to the United States total export possibilities which the Arrangement affords should take account of traditional trade patterns ; of America (hereinafter referred to as 'the United States') of the steel pipe? and tubes originating in the Community which are listed in Annex I. Whereas measures must be taken to avoid abnormal concentration at certain times of exports to the United States ; For the purpose of this Regulation , the United States shall comprise United States customs territory and United States foreign trade zones as described in Annex II .
( J ) See page 126 of this Official Journal . (2 ) OJ No L 148 , 28 . 6 . 1968 , p. 1 . (3 ) OJ No L 174 , 22 . 6 . 1989 , p. 11 . (4) OJ No L 124 , 8 . 6 . 1970 , p. 1
18 . 12 . 89 Official Journal of the European Communities No L 368 / 17
2 . The origin of the products covered by this Regulation them , have used less than 40 % of their quota by shall be determined in accordance with the rules in force in 30 June 1990 and 33 % of their quota by 30 June the Community . 1991 respectively . The quantities represented by such reductions shall Article 2 be allocated by the Commission, after consulting the Arrangement Committee , on 1 August 1990 1 . The Community export limit for steel pipes and tubes and 1 August 1991 respectively so as to facilitate is hereby fixed at 8,82 % of the United States apparent the optimal use and administration of the consumption . Community export possibilities taking account of the share of Community exports effected by each In the case of what are termed OCTG tubes , as referred to Member State in each product category by 30 June in Annex I , the Community limit , forming part of the 1990 and 30 June 1991 respectively . overall limit for steel pipes and tubes , is hereby fixed at 9 % of apparent consumption of these tubes in the United ( c) Where the Community limits for arrangement States . products are adjusted in accordance with the fourth indent of Article 2 ( 3 ), the Commission shall adjust The limits shall be calculated by the Commission on the the allocation of quantity limits, taking account of basis of the level of apparent consumption of these the origin of the exports before the entry into force products in the United States, as laid down in the of this Regulation which gave rise to this Arrangement . adjustment .
2 . The Community export limits calculated pursuant to paragraph 1 shall be adjusted by the Commission to take 2 . The Commission shall hold regular consultations with account of revisions of the said United States apparent the Arrangement Committee set up by Decision consumption . No 3724 / 89 / ECSC ( ! ) on the situation regarding licences issued and on the measures to be taken with a view to 3 . These limits may also be adjusted by the Commission ensuring best use of the overall limit. after consulting the Arrangement Committee : — for advance use or carry-over of licences, Article 4 — to enable transfers between product categories to be made, including transfers between , on the one hand , 1 . The Community exports described in Article 1 shall , the products covered by this Regulation and, on the from the date of entry into force of this Regulation to " 31 other, those covered by Regulation (EEC) No March 1992 , be subject to the production to the competent 3722 / 89 and by Decision 3724 / 89 / ECSC (2), Community customs office where the export formalities are — for additional quotas in case of short supply, carried out of an export licence and an export certificate . The export licences shall be issued by the competent — to take account of exports effected by the Community authorities of each Member State within the limits of the between 1 October 1989 and the date of entry into amounts allocated to it pursuant to Article 3 . force of this Regulation , under the conditions provided for in the Arrangement . Member States shall fix for each quarter the amounts for which they anticipate that licences will be issued for all Article 3 steel pipes and tubes, on the one hand, and for OCTG , on the other; they shall inform the Commission thereof in the 1 . ( a) The Community quantitative export limits first 15 days of the relevant quarter. In doing so , they shall established and calculated pursuant to Article 2 make sure that the export licences for each quarter ensure shall be allocated for the initial period, 1991 and an adequate spread of exports over the whole year, taking the end period by the Commission in accordance into account the seasonal variations in trade in each with Annex III with the exception of any quantities product category . However, Member States shall not, granted under Article 7 of the Arrangement which without the prior authorization of the Commission, issue in shall be allocated by the Commission on the basis of any two consecutive quarters licences for amounts which the circumstances and conditions under which these exceed 52 % of their allocation in the initial period or quantities have been granted . 65 % of their allocation in 1991 . (b ) Notwithstanding point ( a), the Community quantitative export limits to be allocated by the Commission in accordance with Annex III shall be Member States may , subject to the second subparagraph, issue further licences in the initial period , 1991 and the end reduced by 10 % in the initial period and 1991 for period respectively , in respect of the unused part of licences those Member States which , on the basis of issued which have been returned to their competent certificates referred to in Article 4 ( 1 ) issued by authorities in the initial period , 1991 and the end period .
( 1 ) See page 1 of this Official Journal . 2 . Licences shall be issued according to the following ( 2) See page 21 of this Official Journal. criteria :
No L 368 / 18 Official Journal of the European Communities 18 . 12 . 89
— compliance with the rules prescribed by this concerning the licences and exports shall be laid down by Regulation, in particular those concerning the quota the Commission . allocated by the Commission pursuant to Article 3 , — compliance with the traditional export patterns of Article 5 undertakings taking account of the reduction principles established by this Regulation , 1 . Member States shall charge the amounts set out on the licences issued by them against their respective allocations — where appropriate the taking into account of the made pursuant to Article 3 , including all licences situation of new producers of pipes and tubes while subsequently transferred to an undertaking of another giving preference to traditional export patterns , Member State . — compliance with the rates of exports to the United States as traditionally spread out over the year, 2 . . Member States shall keep records of the exports of the products covered by this Regulation . The products shall be — optimum use and administration of the export deemed to be exported on the date of acceptance , by the possibilities afforded by this Regulation, customs office of the Member State of export , of the export — compliance with the possibilities afforded by declaration or of the document provided for in Article 18 Article 3 ( 1 ) ( b ) of this Regulation , of Council Directive 81 / 177 / EEC of 24 February 1981 on the harmonization of procedures for the export of — best use being made of any new possibilities provided Community goods ( 1 ). for , where appropriate, by this Regulation. 3 . The extent to which a Member State has used up its Each licence shall indicate the undertaking engaged in the allocation shall be determined on the basis of licences production of steel pipes and tubes in the Community, and issued in accordance with Article 4 . established in the issuing Member State that is holding the allocation against which the licence is issued. Article 6 3 . Transfers of export licences between undertakings producing steel tubes and pipes, or by undertakings 1 . Exports to the United States of products which are to producing steel pipes and tubes to distributive be re-exported from the United, States in the same form or undertakings, may take place after prior notifications to without having been subject to substantial transformations the authorities of the Member State in which the shall be charged against the allocation of the Member State undertaking transferring the licence is established . Such where the licence was issued . Upon production to the transfers may take place between undertakings established authorities of such Member State of proof of such in different Member States . re-exportation from the United States , the allocation of that Member State for the period within which such proof 4 . The licence must specify whether the tubes are OCTG is presented shall be increased by the same amount. tubes or other steel pipes or tubes. 2 . The Commission may lay down detailed rules for the 5 . Licences issued in one Member State of the Community implementation of this Article. shall be valid throughout the Community. Article 7 6 . Member States shall ensure the appropriate penalties are applied in respect of all exports effected without Cooperation between the Commission and the Member production of the licence referred to in this Article and in States for the application of this Regulation shall be subject respect of any other breaches of the provisions relating to to Article 11 of Regulation (EEC) No 1023 / 70 . such licences . Member States shall keep the Commission informed of all breaches of the abovementioned rules and of all penalties imposed in respect thereof, at intervals to be Article 8 specified by the Commission . This Regulation shall enter into force on the day following 7 . The detailed rules for the application of this Regulation its publication in the Official Journal of the European and the information to be supplied to the Commission Communities .
This Regulation shall be binding jn its entirety and directly applicable in all Member States .
Done at Brussels , 6 November 1989 . For the Council
The President
R. DUMAS
0 ) OJ No L 83 , 30 . 3 . 1981 , p. 40 .
18 . 12 . 89 No L 368 / 19 Official Journal of the European Communities
ANNEX I
List of products
Product HTS CN code
Other pipe and tube 7304.10 (») 7304 10 I 1 ) 7304.31 (») 7304 31 (M 7304.39 (») 7304 39 P ) 7304.41 (».) 7304 41 I 1 ) 7304.49 7304 49 C 1 ) 7304.51 0 ) 7304 51 (») 7304.59 (!) 7304 59 (*) 7304.90 (!) 7304 90 0 )
7305.11 7305 11 00 7305.12 7305 12 00 7305.19 7305 19 00 7305.31.40 (>) 7305 31 00 (*){*) 7305.31.60 (») 7305 39 OOP ); 7305.39 (») 7305 90 00 H 7305.90 0 ) 7306 10 7306.10 (>) 7306 30 (»)(*) 7306.30.10 (M 7306 40 (») 7306.30.50 (») 7306 50 P )(2 ) 7306.40 (>) 7306 60 C 1 ) 7306.50.10 0 ) 7306 90 OOP ) 7306.50.50 (*) 7306.60 (>) 8547 90 00 .(■?). 7306.90 (»)
8547.90.0020
OCTG 7304.20 7304 20
7305.20 7305 20
7306.20 7306 20 00
The subheadings and item numbers referred to above are subject to revision when the Community or the United States adopt modifications to their respective import nomenclatures . When such modifications are adopted , prior notification shall be given to the other party .
(') Excluded if drill pipe of a kind used in drilling for earth minerals or ores. ( 2) Excluded if tapered pipes and tubes principally used as parts of illuminating articles . (3 ) Covered if conduit tubing.
No L 368 / 20 Official Journal of the European Communities 18 . 12 . 89
ANNEX II
United States customs territory and United States foreign trade zones
The United states customs territory shall comprise the States , the district of Columbia and Puerto Rico .
A United States foreign zone shall be defined as follows:
It is an isolated , enclosed and policed area , operated as a public utility , in or adjacent to a port of entry , furnished with facilities for loading, unloading , handling, storing , manipulating , manufacturing and exhibiting goods and for reshipping them by land , water or air. Any foreign and domestic merchandise, except such as is prohibited by laws or such as the Board may order to be excluded as detrimental to the public interest , health or safety , may be brought into a zone without being subject to the customs laws of the United States governing the entry of goods or the payment of duty thereon ; and such merchandise permitted in a zone may be stored , exhibited , manufactured , mixed or manipulated in any manner, except as provided in the act and other applicable laws or regulations . The merchandise may be exported, destroyed or sent into customs territory from the zone , in the original package or otherwise . It is subject to customs duties if sent into customs territory , but not if reshipped to foreign points .
ANNEX 111
Allocation among Member States
Member States Proportion of Community limits
Pipes and tubes Germany 33,57 % France 11,07% Italy 23,81 % Netherlands 3,33 % . Belgium 5,72 % ' Luxembourg 2,03 % United Kingdom 4,76 % Greece 6,19 % Denmark Ireland Spain 9,52 % Portugal
OCTG Germany 38,76 % France 4,69 % Italy 28,76 % Netherlands 0,18 % Belgium 4,42 % Luxembourg 0,09 % United Kingdom 4,87 % Greece 6,73 % Denmark Ireland Spain 11,50% Portugal