The much-awaited EU and UK steel regimes are now in effect, as both Brussels and Westminster take steps to protect their domestic industry by increasing tariffs on foreign imports and slashing tariff-free import quotas. UK businesses are being warned that their metal imports might face additional charges.
The EU’s new de minimis rules also come into effect today (1 July). Low-value imports into Europe will now face a flat fee handling fee, as Brussels takes action against a flood of imports from foreign e-commerce sellers.
New UK steel regime…
Both the EU and UK new regimes for steel imports are now in effect.
From today (1 July), available quotas for certain steel goods imported into the UK will be reduced significantly, by as much as 51%. The 25% safeguarding duty for out-of-quota goods will be removed, and a 50% will apply instead.
The government has published the full list of commodity codes affected. The list includes products like hot-rolled sheets, metallic coated sheets, non-alloyed bars and welded tubes.
“These quotas are applied on a ‘first come, first served’ basis at the beginning of each quarter”, warned Anna Doherty, technical director at the Chartered Institute of Export & International Trade, ahead of the date.
Doherty also said this wasn’t just for those who import solely metal, but those who bring in steel along with a variety of other goods.
Trade minister Chris Bryant told parliament yesterday (30 June) that the government had worked closely with Brussels to ensure that the UK and EU’s integrated steel supply chains would continue to function effectively.
Katarzyna Ziolkowska-Smith, trade compliance manager at Arconic Manufacturing, previously told Global Trade Today that while she welcomed the government doing more to protect UK manufacturing, there are risks associated with making it more expensive to import steel.
“It will be interesting to see how that plays in the long run,” Ziolkowska-Smith said, because “not all steel grades widely used across UK industry are manufactured by British Steel”
…and a new EU steel regime
The EU’s version also came into effect on the same day. Brussels halved the total quota of duty-free steel and increased the tariff rates on steel imported into the EU to 50%.
However, the EU also agreed to a number of deals with close trading partners. A European Commission (EC) factsheet claims that over half of the EU’s annual steel quota of 18.3m tonnes will be given exclusively to countries that already have deals with Europe, including the EU.
There is also a specific provision for steel of UK origin moving from Great Britain to Northern Ireland.
“We are providing market participants with predictability through clear and transparent quota distribution rules, while applying a fair and objective methodology,” said Maroš Šefčovič, EC trade commissioner.
Trade representatives and government officials across Europe have often raised the issue of overcapacity in the global market as perennial issues for the domestic steel industry. UK and EU producers have both struggled with job cuts and closures in the face of this overproduction, with fingers often being pointed at China as the main culprit.
Šefčovič met his Chinese, Wang Wentao, yesterday, even as German manufacturer Volkswagen announced it was shedding 100,000 jobs and shuttering four plants in response to the rising competition from China and the US.
De Minimis changes
The EU’s new 'de minimis' package also comes into effect today, continuing the EU’s campaign to protect the European economy from what Brussels regards as unfair competition.
From today, any item under €150 in value will be charged a €3 flat processing fee, as the EU takes steps against a flood of cheap imports.
The measure will last until 1 July 2028, after which normal customs duties will be applied on this.
“Every day, millions of low-value parcels enter the EU. Many contain products that do not meet EU safety standards or are undervalued or falsely declared to avoid customs duties”, the EC said.
The EC brought forward the July deadline by five months – it was originally supposed to apply from November – in response to competition. Additionally, product identifiers (PID) will be mandatory from 1 November for any non-EU suppliers shipping goods online.
Other news
- Former West Midlands mayor, Andy Street, is the leading candidate to be the first chair of Great British Railways, according to Politico
- The Department for Business and Trade have launched a grant process for a UK-based magnet hub. Worth over £20bn, government documents specify that the hub must be delivered by 31 March 2030
- Ireland takes over the rotating presidency of the Council of the EU for the next six months
Yesterday in trade
- The Ministry of Defence published its long-awaited Defence Investment Plan
- UK Export Finance (UKEF), the government’s export credit agency, has announced a new Defence Export Fund with support totalling £50b
- The Export Control Joint Unit issued a new Notice to Exporters naming a firm that has agreed to pay a compound settlement for having breached Russia sanctions.
You can read yesterday’s trade news here.
