Notice

Trade remedies notice 2022/02: safeguard measure: tariff-rate quota on steel goods

Updated 30 September 2024

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This publication is available at https://www.gov.uk/government/publications/trade-remedies-notices-tariff-rate-quotas-on-steel-goods/trade-remedies-notice-202202-safeguard-measure-tariff-rate-quota-on-steel-goods

This notice was published on 30 June 2022, with effect from 1 July 2022. The year 6 quota allocations were superseded by Trade Remedies Notice 2023/11 on 30 June 2023.

This public notice is published by the Secretary of State under regulation 15(1)(b) of the Trade Remedies (Review and Reconsideration of Transitioned Trade Remedies) Regulations 2022 (S.I. 2022/113) (“the Regulations”). It gives effect to a decision of the Secretary of State under regulation 12 of the Regulations to vary the tariff rate quota that is applicable to the goods described below.

The application of the steel safeguard measure will be temporarily suspended for 2 years (from 1 July 2022 until 30 June 2024) with respect to goods originating in Ukraine.

1. Summary of the investigation conducted in relation to the matters under reconsideration

The Trade Remedies Authority (TRA) accepted eight applications for reconsideration, the grounds of which set the scope for ongoing analysis. In addition to these, the TRA received 22 non-application submissions and two further responses from Interested Parties which were all taken into consideration. The TRA initiated its reconsideration on 7 September 2021.

On 22 March 2022, the Secretary of State informed the TRA that under Regulation 3(b) of the Call-in Regulations, she intended to take a decision as to whether to vary, maintain or revoke the tariff rate quotas applicable to goods that were the subject of the reconsideration.

In the transition review the TRA considered 1 January 2013 to 31 December 2017 as the period of investigation (POI), 1 January 2018 to 30 June 2020 as the most recent period (MRP), and 1 January 2017 to 31 December 2019 as the last three representative years for assessing traditional trade flows. The TRA gathered information about these periods during the transition review to inform assessments.

2. Increase in imports and significance

The TRA found that the aggregated UK import data for group 1 (flat products) and group 3 (pipes/tubes) showed a sudden, recent, sharp, and significant absolute and relative increase.

The TRA found that the aggregated UK import data for group 2 (long products) did not show a sudden, recent, sharp, and significant absolute increase or relative increase.

3. Likelihood of increase in imports

The TRA found that the evidence for the global steel market suggested it was highly likely there would be an oversupply in the international market for the steel products under review for the foreseeable future.

An industry level analysis considering capacity, import trends, actions of other authorities, and attractiveness of UK market indicated a significant likelihood that imports would increase across all categories if the measure were revoked.

A group level analysis considering import trends found it likely that imports would significantly increase for all groups if safeguard measures were revoked.

4. Serious injury or threat of serious injury to UK producers

The TRA assessed several indicators to identify impairment to the position of UK industry, however caused, and reported where it believed that, based on findings against one or more indicators, there was evidence that provided an indication of, or would be consistent with serious injury.

At an industry level, each assessment found an indication of serious injury except for the indicator ‘productivity’ and ‘market share’ where no indication of serious injury was found.

At an industry level other potential factors were assessed to establish whether they could also be a cause of serious injury. The TRA considered COVID-19, the UK’s departure from the EU, and cost of production and found it was not clear that any of these caused the serious injury previously experienced, nor was there any reason to believe that any of these factors (or all combined) were significant enough to foreseeably break a link between import pressure and serious injury.

At an aggregated group level, assessments were undertaken to identify any indications of serious injury. For group 1 an indication of serious injury was found in all assessments except productivity and price effects where no indication of serious injury was found. For group 2 an indication of serious injury was found in all assessments except increase in imports, market share, sales volume, and capacity utilisation where no indication of serious injury was found. For group 3 an indication of serious injury was found in all assessments except sales volume, production volume, productivity, and capacity utilisation where no indication of serious injury was found.

As a result of the above assessments at industry and group level the TRA found that there were indications of serious injury to UK producers for all three steel product category groups.

5. Summary of the Secretary of State for International Trade’s conclusions

The Secretary of State has taken into account the TRA’s findings in sections 2.1 to 2.4 of the TRA’s Report of Findings and concluded that the maintenance of TRQs is necessary to remedy serious injury. The Secretary of State also recognised that adjustments are required to certain TRQ’s to better reflect trade flows.

In its Report of Findings, the TRA identified indications of serious injury. The Secretary of State has taken into account the Report of Findings and concluded that removal of the steel safeguard measure would likely result in an increase in imports and therefore would result in serious injury or the threat of serious injury to UK steel producers.

There is evidence in the TRA’s Report of Findings that removal of the measure would likely result in an increase in imports of steel products due to:

  • global steel overcapacity – there would be an oversupply in the international market for steel products under review for the foreseeable future (section 2.2).
  • import trends – The TRA found an ongoing high rate of import volume during the most recent period, including during the introduction of the EU safeguard measure in 2018 and the COVID-19 crisis in 2020. The TRA also found an increase in import volume during the period of investigation and most recent period, relative to domestic production of multiple product categories in each group (section 2.2).
  • actions of other authorities – US steel tariffs imposed in 2018 caused a knock-on effect resulting in numerous other countries introducing trade remedy measures to protect against the diversion of steel products. Were the UK to remove its safeguard, the evidence indicates that the UK would face an increase in diverted steel product imports (section 2.2).
  • attractive UK market – actions taken by other authorities reduced their attractiveness and consequently increased the attractiveness of the UK as an export destination for steel products. Not only this, but equivalent countries such as Japan and South Korea experienced import penetration levels than the UK despite the implementation of the EU’s safeguard measure, indicating the UK is a comparatively attractive market (section 2.2).

When investigated at an aggregate level (both at the industry level and at the group level) the Secretary of State concluded that UK steel producers were suffering threat of serious injury or threat of serious injury and that this would be likely to increase should the safeguard measure be removed. The Secretary of State has taken into account the assessments made throughout section 2.3 of the TRA Report of Findings that, at industry and group level, there were indications of serious injury to UK producers for all three steel product category groups.

6. Summary of the Secretary of State for International Trade’s decision

The steel safeguard measure will be extended for a further 2 years (from 1 July 2022 until 30 June 2024) with effect on the following 5 categories:

  • 6 – Tin mill products
  • 7 – Non-alloy and other alloy quarto plates
  • 12 – Merchant bars and light sections (split into categories 12a (Alloy merchant bars and light sections), and 12b (non-alloy merchant bars and light sections))
  • 16 – Non-alloy and other alloy wire rod
  • 17 – Angles, shapes, and sections of iron or non-alloy steel

In reaching this decision, the Secretary of State for International Trade had regard to the public interest and the advice provided by the TRA on the economic interest.

7. Goods description

The tariff-rate quota set out in this notice applies to the following steel products (“steel goods”).

Goods category[**] Goods category name ‘UK Global Tariff’ commodity code
L [6] Tin Mill products 72 09 18 99
72 10 50 00
72 12 10 90
72 10 11 00
72 10 70 10
72 12 40 20
. 72 10 12 20
72 10 90 40
72 10 12 80
72 12 10 10
M [7] Non-alloy and Other Alloy Quarto Plates 72 08 51 20
72 08 90 20
72 25 40 40
72 08 51 91
72 08 90 80
72 25 40 60
72 08 51 98
72 10 90 30
72 08 52 91
72 25 40 12
N [12][a] Alloy merchant bars and light sections 72 28 30 20
72 28 30 41
72 28 30 61
72 28 30 69
72 28 30 70
72 28 30 89
72 28 60 20
72 28 70 10
N [12][b] Non-alloy merchant bars and light sections 72 14 30 00
72 14 91 10
72 14 91 90
72 14 99 31
72 14 99 39
72 14 99 50
72 14 99 71
72 14 99 79
72 14 99 95
72 15 90 00
72 16 10 00
72 16 21 00
72 16 22 00
72 16 40 10
72 16 40 90
72 16 50 10
72 16 50 91
72 16 50 99
72 16 99 00
O [16] Non-alloy and Other Alloy Wire Rod 72 13 10 00
72 13 91 49
72 27 10 00
72 13 20 00
72 13 91 70
72 27 20 00
72 13 91 10
72 13 91 90
72 27 90 10
72 13 91 20
72 13 99 10
72 27 90 50
72 13 91 41
72 13 99 90
72 27 90 95
P [17] Angles, Shapes, and Sections of Iron or Non-alloy Steel 72 16 31 10
72 16 32 19
72 16 33 10
72 16 31 90
72 16 32 91
72 16 33 90
72 16 32 11
72 16 32 99

**The number in square brackets indicates the corresponding category of steel products in Taxation Notice 2020/06: Safeguard measures on certain steel products – application of tariff rate quotas, which had effect from 11pm on 31 December 2020 to 30 June 2022.

8. Duty amount

The additional amount of duty (“safeguard duty”) applicable to steel goods imported outside of the quota is 25% ad valorem.

The safeguard duty is applicable to the net free-at-the-frontier price of the good (before any other amount of import duty).

9. Duration

The tariff-rate quota applies from 1 July 2022 to 30 June 2024.

10. Quota amount and allocation

The quota is divided into eight quarters over two years and specifies for each goods category the amount of steel goods that may be imported free of safeguard duty in any given Quarter.

10.1 Right to access quota

The right to access the quota is granted by His Majesty’s Revenue and Customs to importers in the United Kingdom on a first-come, first-served basis.

Importers are asked to cite the relevant order number set out in the Annex when applying to His Majesty’s Revenue and Customs to access a particular quota.

10.2 Limited access to unused quota in next Quarter

Any unused quota allocated for steel goods originating in a country or territory remains available in the next Quarter for steel goods originating in that country or territory. Any unused balance may cumulate within the year.

10.3 Open access to unused quota in Quarter 4 of each year

Importers of steel goods originating in a country or territory with an exhausted quota allocation for the year may, only in Quarter 4 of that year, apply for the right to use any remaining quota allocated for steel goods originating in all other countries or territories.

11. Quota amount and allocation for year 5

1 July 2022 to 30 June 2023, in tonnes (t), allocated quarterly:

  • Quarter 1: 1 July 2022 to 30 September 2022;
  • Quarter 2: 1 October 2022 to 31 December 2022;
  • Quarter 3: 1 January 2023 to 31 March 2023;
  • Quarter 4: 1 April 2023 to 30 June 2023.

The application of the steel safeguard measure will be suspended from 1 July 2022 until 30 June 2023 with respect to goods originating in Ukraine

Goods category Origin country or territory Year 5 quarter 1 Year 5 quarter 2 Year 5 quarter 3 Year 5 quarter 4
L [6] EU 30,120 30,120 29,465 29,792
L [6] PRC 7,647 7,647 7,481 7,564
L [6] Taiwan 2,497 2,497 2,443 2,470
L [6] South Korea 2,370 2,370 2,319 2,344
L [6] All others 1,022 1,022 1,000 1,011
M [7] EU 67,025 67,025 65,568 66,297
M [7] Ukraine 10,461 10,461 10,234 10,347
M [7] All others 13,458 13,458 13,165 13,312
N [12][a] EU 27,795 27,795 27,191 27,494
N [12][a] All others 3,998 3,998 3,911 3,954
N [12][b] EU 33,389 33,389 32,664 33,026
N [12][b] Turkey 12,567 12,567 12,294 12,431
N [12][b] All others 7,142 7,142 6,986 7,064
O [16] EU 70,644 70,644 69,108 69,876
O [16] All others 3,084 3,084 3,017 3,051
P [17] EU 160,849 160,849 157,352 159,101
P [17] All others 16,716 16,716 16,353 16,535

12. Quota amount and allocation for year 6

1 July 2023 to 30 June 2024, in tonnes (t), allocated quarterly:

  • Quarter 1: 1 July 2023 to 30 September 2023;
  • Quarter 2: 1 October 2023 to 31 December 2023;
  • Quarter 3: 1 January 2024 to 31 March 2024;
  • Quarter 4: 1 April 2024 to 30 June 2024.

The application of the steel safeguard measure will be suspended from 1 July 2023 until 30 June 2024 with respect to goods originating in Ukraine

Goods category Origin country or territory Year 6 quarter 1 Year 6 quarter 2 Year 6 quarter 3 Year 6 quarter 4
L [6] EU 30,938 30,938 30,602 30,602
L [6] PRC 7,855 7,855 7,769 7,769
L [6] Taiwan 2,565 2,565 2,537 2,537
L [6] South Korea 2,435 2,435 2,408 2,408
L [6] All others 1,050 1,050 1,038 1,038
M [7] EU 68,848 68,848 68,099 68,099
M [7] Ukraine 10,746 10,746 10,629 10,629
M [7] All others 13,824 13,824 13,673 13,673
N [12][a] EU 28,551 28,551 28,241 28,241
N [12][a] All others 4,107 4,107 4,062 4,062
N [12][b] EU 34,297 34,297 33,924 33,924
N [12][b] Turkey 12,909 12,909 12,769 12,769
N [12][b] All others 7,336 7,336 7,256 7,256
O [16] EU 72,564 72,564 71,775 71,775
O [16] All others 3,168 3,168 3,134 3,134
P [17] EU 165,222 165,222 163,426 163,426
P [17] All others 17,171 17,171 16,984 16,984

13. Goods excluded

Exclusion for steel goods originating in signatory countries or territories

All steel goods originating in a signatory country or territory specified below are excluded from:

a. the quota amount allocated for all other countries or territories; and b. the application of the safeguard duty.

14. Signatory countries or territories

  • Antigua and Barbuda
  • Barbados
  • Belize
  • Bahamas
  • Dominica
  • Dominican Republic
  • Grenada
  • Guyana
  • Jamaica
  • Kenya
  • Mozambique
  • St Kitts and Nevis
  • St Lucia
  • St Vincent and the Grenadines
  • Trinidad and Tobago

Limited exclusion for steel goods originating in developing countries or territories

Except for steel goods in a goods category originating in a developing country or territory annotated with that goods category, any steel goods originating in a developing country or territory specified below are excluded from:

c. the quota amount allocated for all other countries or territories; and d. the application of the safeguard duty.

Key: * denotes a quota amount for the goods category is allocated for the country or territory; ^ denotes the quota amount for the goods category allocated to all other countries or territories is available for the country or territory.

15. Developing countries or territories

  • Afghanistan
  • Albania
  • Angola
  • Antigua and Barbuda
  • Argentina
  • Armenia
  • Bahrain
  • Bangladesh
  • Barbados
  • Belize
  • Benin
  • Bolivia
  • Botswana
  • Brazil
  • Brunei
  • Burkina Faso
  • Burundi
  • Cape Verde
  • Cambodia
  • Cameroon
  • Central African Republic
  • Chad
  • Chile
  • China (Category: L*)
  • Colombia
  • Congo
  • Costa Rica
  • Côte d’Ivoire
  • Cuba
  • Democratic Republic of the Congo
  • Djibouti
  • Dominica
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Eswatini
  • Fiji
  • Gabon
  • The Gambia
  • Georgia
  • Ghana
  • Grenada
  • Guatemala
  • Guinea
  • Guinea-Bissau
  • Guyana
  • Haiti
  • Honduras
  • Hong Kong
  • India (Category: P^)
  • Indonesia
  • Jamaica
  • Jordan
  • Kazakhstan
  • Kenya
  • Kuwait
  • Kyrgyzstan
  • Laos
  • Lesotho
  • Liberia
  • Macao
  • Madagascar
  • Malawi
  • Malaysia
  • Maldives
  • Mali
  • Mauritania
  • Mauritius
  • Mexico
  • Moldova
  • Mongolia
  • Montenegro
  • Morocco
  • Mozambique
  • Myanmar (Burma)
  • Namibia
  • Nepal
  • Nicaragua
  • Niger
  • Nigeria
  • North Macedonia
  • Oman
  • Pakistan
  • Panama
  • Papua New Guinea
  • Paraguay
  • Peru
  • Philippines
  • Qatar
  • Rwanda
  • St Kitts and Nevis
  • St Lucia
  • St Vincent and the Grenadines
  • Samoa
  • Saudi Arabia
  • Senegal
  • Seychelles
  • Sierra Leone
  • Solomon Islands
  • South Africa
  • Sri Lanka
  • Suriname
  • Tajikistan
  • Tanzania
  • Thailand
  • Togo
  • Tonga
  • Trinidad and Tobago
  • Tunisia
  • Turkey (Categories: N[b]*; O^; P^)
  • Uganda
  • Ukraine (Categories: M*; O^)
  • United Arab Emirates
  • Uruguay
  • Vanuatu
  • Venezuela
  • Vietnam
  • Yemen
  • Zambia
  • Zimbabwe

16. Annex

Order numbers for importers to access the tariff-rate quota on steel goods

Goods category Origin country or territory Order number
L European Union 058012
L China 058831
L Taiwan 058098
L South Korea 058097
L All others 058013
M European Union 058014
M Ukraine 058836
M All others 058015
N[a] European Union 058100
N[a] All others 058102
N[b] European Union 058103
N[b] Turkey 058104
N[b] All others 058105
O European Union 058026
O All others 058027
P European Union 058028
P All others 058029
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