Steel importers are seeking clarity on the EU’s new safeguard measures

Steel importers into the EU are still seeking clarification on the technical aspects of the bloc’s new protective measures on steel, according to Argus. Media.

In addition to the reduction in duty-free import quotas, a key change is the introduction of a new residual quota. This is available to both countries with a free trade agreement (FTA) with the EU and those with a country-specific quota (CSQ) for a particular product. It is allocated on a first-come, first-served basis.

As the agency notes, market participants point out that the EU legislative document lacks sufficient clarification on exactly how the FTA–CSQ quota will be administered, leading companies to interpret the procedure in different ways.

The vast majority of traders believe that volumes exceeding national quotas will not automatically be transferred to the FTA–CSQ category. In this case, many importers will have to clear the volumes for which they have submitted applications through customs and pay the corresponding duties. According to some market sources, in a number of countries (Italy, Spain, Portugal and Estonia), customs authorities may allow applications that have already been submitted to be withdrawn and resubmitted under the FTA–CSQ quota.

However, it remains unclear whether the mechanism for withdrawing volumes remains available and, if so, in which specific countries.

Other market participants have a different understanding. In their view, where there is spare capacity within the residual quotas, excess supplies under individual countries’ quotas may be automatically reallocated.

Market participants also point out that the new regime was introduced in haste: the final text of the regulation was only published on 30 June, one day before it came into force. As a result, the market expects that over the next six months the European Commission will be forced to make further clarifications and adjustments to the current rules.

It should be recalled that on 30 June, the European Commission published an implementing regulation setting out the allocation of steel import tariff quotas amongst the EU’s trading partners.

Half of the bloc’s annual import quota (18.3 million tonnes) is reserved exclusively for partners under free trade agreements. The remaining 9.15 million tonnes will be available to all trading partners without discrimination, including those with free trade agreements.