ANNEX II

SCRAP

The provisions of this Treaty shall apply to ferrous scrap, but account shall be taken of the  following practical arrangements necessitated by the special features of the recovery of and  trade in scrap:

a. Any prices fixed by the Commission under Chapter 5 of Title III shall apply to purchases  by Community undertakings; Member States shall cooperate with the Commission in  ensuring that sellers comply with the decisions taken;

b. Article 59 shall not apply to:

• Cast iron scrap usable only in foundries outside the jurisdiction of the Community;
• Undertakings' own arisings, availabilities of which shall, however, be taken into  account in calculating the bases for allocations of bought scrap;

c. For the application of Article 59 to bought scrap, the Commission shall, in cooperation with  the governments of Member States, obtain the necessary information on availabilities and  requirements, including exports to third countries.

On the basis of the information thus obtained, the Commission shall allocate availabilities  among Member States in accordance with Article 59,in such a way as to enable the most  efficient use to be made of them and taking into account all the operating and supply  conditions in the different parts of the steel industry within its jurisdiction.

To ensure that shipments of scrap so allocated from one Member State to another, or  purchases by undertakings in one Member State of the tonnages to which they are entitled on  the market of another Member State, will not involve discrimination harmful to undertakings  in either State, the following measures shall be taken:

1.Each Member State shall authorize the shipment from its territory to other Member States of  tonnages in accordance with the allocation made by the Commission; in return, each Member  State shall be authorized to effect the necessary checks to establish that outgoing shipments  are not in excess of the amounts provided for.The Commission is empowered to ensure that  the arrangements made are not more restrictive than is necessary for this purpose.

2.The allocation among Member States shall be reviewed at as frequent intervals as may be  necessary to maintain a relation fair both to local purchasers and to purchasers from other  Member States between the recorded availabilities in each Member State and the tonnages it  is required to ship to other Member States.

3 .The Commission shall ensure that the regulations made by each Member State concerning  sellers within its jurisdiction do not lead to the application of dissimilar conditions to  comparable transactions, especially on grounds of the nationality of the buyers.

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