The European Commission imposed definitive safeguard measures on imports of certain steel products within chapters 72 and 73 of the Tariff in February 2019, see Regulation 2019/159.
The measures are broken down into 26 product categories, see annex I of this regulation. For each product there are either annual country specific quotas or quarterly global quotas, or both, which allow certain quantities of steel to be imported duty free.
Once these limits are reached a safeguard duty of 25% will be incurred.
Developing countries with low volumes of particular steel products may be exempted from these measures and therefore will not be required to claim the quotas and will not incur the safeguard duty, see annexes III.I and III.2 of the regulation.
A Commission review of these measures has now concluded and this notice is to inform interested parties of the amendments arising from this review.
The planned increase in the duty free volumes which was set at 5% for the second and third ‘years’ will now be restricted to a 3% increase. This means the quotas for the remainder of the second year, 1 July 2019 to 30 June 2020 will be adjusted downwards.
There will be a limit of 30% of the share in the global quota, per quarter, for any single exporting country, for the duration of the measures.
To monitor usage the following countries will have their own quota numbers.
For the periods 1 October 2019 to 31 March 2020 and 1 July 2020 to 31 March 2021.
|Other third countries||098601|
For the periods 1 April 2020 to 30 June 2020 and 1 April 2021 to 30 June 2021.
|Other third countries||098602|
Products in category 4A, the scope will be extended to include commodity codes in 4B. Metallic Coated Sheets for the automotive sector and for other purposes may benefit from this quota.
The commodity codes for category 4B remain unchanged, however category 4B is restricted to end-use in the automotive sector. End-use authorisation will be required, see Regulation 952/2013, Chapter 4, Section 2, Article 254: End-use procedure.
As a consequence of the 4A/4B decision, India will be granted a single country specific quota under category 4A based on previously allocated volumes under 4A and 4B. India does not export for use in the automotive industry.
Part of the amount of the country specific quota for Korea will be transferred from 4B to 4A, as that part was not intended for the automotive industry.
Categories 13 and 16
During the last quarter of the quota year, April to June, for categories 13 and 16 there will be a limit of 30% per country for the ‘global’ quota, which becomes available once the relevant country specific quota has exhausted.
Once the relevant country specific quota has exhausted, quota numbers for the following countries will become:
|Bosnia and Herzegovina||098544|
|Other third countries||098628|
|Bosnia and Herzegovina||098557|
|Other third countries||098634|
The existing quotas, 098941, 098942 and 098943, will be replaced by a single global quarterly quota 098649, changing to quota 098650 from 1 April 2020 to 30 June 2020.
Any unused volumes from the withdrawn quotas will be transferred to the global quota.
Amendment to the list of countries excluded from measures for particular products.
All developing countries will now be subject to measures for category 24, except for:
- Ivory Coast
- South Africa
Indonesia will now also be subject to measures for categories 8 and 9, in addition to categories 7 and as above, category 24.
The categories from which:
- Brazil is excluded have been extended to include categories 8 and 17
- Ukraine is excluded has been extended to include categories 1 and 19
- Egypt is excluded has been extended to include category 12
- India is excluded has been extended to include category 8
- Turkey is excluded has been extended to include category 10
- China is excluded has been extended to include category 22
Where appropriate, the volumes of any country specific quotas for developing countries, which have now been excluded from certain measures, will be transferred to the corresponding global quotas.
Drawings on the withdrawn country specific quotas for developing countries, as above, and also for category 25 will be stopped on 4 November 2019.
For further information on these amendments refer to Regulation 2019/1590.
These amendments take effect on 1 October 2019.
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