Trade remedies notice 2024/08: 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-202408-safeguard-measure-tariff-rate-quota-on-steel-goods
This public notice is published by the Secretary of State under subsection 13(4) and sub-paragraph 21(7) of Schedule 5 to the Taxation (Cross-border Trade) Act 2018 and makes provision giving effect to the recommendation of the Trade Remedies Authority (TRA) made in accordance with regulation 37(1) of The Trade Remedies (Increase in Imports Causing Serious Injury to UK Producers) (EU Exit) Regulations 2019 (“the Regulations”) and entitled TQ0052 - Non-alloy and other alloy hot-rolled sheet and strip from United Kingdom.
Summary of the TRQ review
In accordance with regulation 35B of the Regulations, the TRA have conducted a Tariff Rate Quota (TRQ) review of the UK’s Steel Safeguard trade remedy measure, as there is information to show that there has been a change in circumstances since the application of the TRQ. The change in circumstances under review is evidence of the quota – and specifically the residual quota – being repeatedly exhausted across four consecutive quarters, which has had an adverse impact on UK importers, stockists and distributors.
In addition, the TRA have found evidence of a change in demand for the import of Category 1 steel products used for downstream processing into other product categories. In accordance with regulation 35B the TRA have therefore considered whether the amount and allocation of the tariff-rate quota is appropriate for domestic market conditions.
The period of investigation for the review to assess the change in circumstances was 1 January 2023 to 31 December 2023. The representative period for assessing traditional trade flows was the calendar years 2017 to 2019.
The TRA’s recommendation
In accordance with regulation 37(1) of the Regulations, and as a result of the determinations made pursuant to regulation 35B of the Regulations, the TRA made the following recommendation to the Secretary of State of Business and Trade.
The TRA recommended that the TRQ on Category 1 goods of the Safeguard measure be varied by amending Category 1 to form Categories 1A and 1B. Category 1A should retain the country allocations and quota amount established in trade remedies notice 2024/06: safeguard measure – tariff-rate quota on steel goods (trade remedies notice 2024/06) where the total quota amount is around 1 million tonnes, allocated to the EU, Turkey, Taiwan and a residual pot.
Category 1B should be for use by businesses importing goods for downstream processing. For Category 1B, the quota amount should be increased to 132% above the current Category 1 TRQ to around 2.3 million tonnes and should be allocated on a global basis. In addition, so as to bring more stability to the market, prevent crowding out and hence ensure that the effectiveness of the measure is not undermined by market developments, the TRA recommended to introduce a 40% cap on exports per quarter under the Category 1B TRQ for an individual country or territory.
The resulting TRQ allocations for both steel categories are shown in the respective year 7 and year 8 TRQ allocation tables below. The allocations made in this notice supersede the category 1 allocations in trade remedies notice 2024/06.
The TRA have made this recommendation as a result of the change of circumstances and their consideration of the facts which are set out in their final recommendation and further evidenced in the public file for case TQ0052.
Secretary of State’s decision on the TRQ review
This public notice gives effect to the Secretary of State’s decision under regulation 38(1) of the Regulations to accept the TRA’s recommendation on the TRQ review of the UK’s Steel Safeguard trade remedy measure. The Secretary of State has accepted the recommendation while having regard to the public interest. This notice is made under section 13(4) of the Taxation (Cross-border Trade) Act 2018.
The varied measure shall take effect the day after the date of publication of this public notice.
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).
The application of the steel safeguard measure with respect to category 1A and 1B goods originating in Ukraine remains suspended from 1 July 2024 until 30 June 2026, as originally implemented by trade remedies notice 2024/06.
Duration
The tariff-rate quota applies from 1 October 2024 to 30 June 2026.
Description of the goods to which this notice relates
The tariff-rate quotas for category 1A and 1B steel products apply to the goods described, or imported under a commodity code specified below.
Goods description
Non alloy and other alloy hot rolled sheets and strips.
Commodity codes
- 72081000
- 72082500
- 72082600
- 72082700
- 72083600
- 72083700
- 72083800
- 72083900
- 72084000
- 72085210
- 72085299
- 72085310
- 72085390
- 72085400
- 72111300
- 72111400
- 72111900
- 72126000
- 72251910
- 72253010
- 72253030
- 72253090
- 72254015
- 72254090
- 72261910
- 72269120
- 72269191
- 72269199
Category 1A quota amount and allocation
The steel safeguard category 1A quota is divided into 7 quarters over 1 year and 9 months and specifies the amount of steel goods that may be imported free of safeguard duty in any given quarter.
Right to access the quota
The right to access the quota is granted by His Majesty’s Revenue and Customs (HMRC) to importers in the United Kingdom and is administered on a first-come, first-served basis.
Importers must cite the relevant order number set out in the annex when applying to HMRC to access a particular quota.
Limited access to unused quota in the 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.
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. This only applies for steel goods imported during quarter 4.
Quota amount and allocation for year 7 cat 1A
The tariff-rate quota applies from 1 October 2024 to 30 June 2025, in tonnes (t), allocated quarterly. The steel safeguard category 1A year 7 quarters are:
- quarter 2: 1 October 2024 to 31 December 2024
- quarter 3: 1 January 2025 to 31 March 2025
- quarter 4: 1 April 2025 to 30 June 2025
| Country | Q2 1 October to 31 December (in tonnes) |
Q3 1 January to 31 March (in tonnes) |
Q4 1 April to 30 June (in tonnes) |
|---|---|---|---|
| EU | 187,484 | 183,409 | 185,446 |
| Turkey | 24,616 | 24,081 | 24,349 |
| Taiwan | 13,704 | 13,407 | 13,556 |
| Residual (all others) |
23,587 | 23,074 | 23,331 |
| Total | 249,391 | 243,971 | 246,682 |
Quota amount and allocation for year 8 cat 1A
The tariff-rate quota applies from 1 July 2025 to 30 June 2026, in tonnes (t), allocated quarterly. The steel safeguard category 1A year 8 quarters are:
- quarter 1: 1 July 2025 to 30 September 2025
- quarter 2: 1 October 2025 to 31 December 2025
- quarter 3: 1 January 2026 to 31 March 2026
- quarter 4: 1 April 2026 to 30 June 2026
| Country | Q1 1 July to 30 September (in tonnes) |
Q2 1 October to 31 December (in tonnes) |
Q3 1 January to 31 March (in tonnes) |
Q4 1 April to 30 June (in tonnes) |
|---|---|---|---|---|
| EU | 193,109 | 193,109 | 188,911 | 191,010 |
| Turkey | 25,355 | 25,355 | 24,804 | 25,079 |
| Taiwan | 14,116 | 14,116 | 13,809 | 13,962 |
| Residual (all others) |
24,295 | 24,295 | 23,766 | 24,030 |
| Total | 256,875 | 256,875 | 251,290 | 254,081 |
Category 1B quota amount and allocation
The steel safeguard category 1B quota is divided into 7 quarters over 1 year and 9 months and specifies the amount of steel goods that may be imported free of safeguard duty in any given quarter.
Right to access the quota
The right to access the category 1B quota is administered by HMRC to importers in the United Kingdom on a first-come, first-served basis. Access to the quota is limited to goods declared for an authorised use procedure in accordance with the Customs (Special Procedures and Outwards Processing) (EU Exit) Regulations 2018. The ‘authorised use’ is defined below.
Category 1B is allocated via a single global safeguard quota, with a 40% cap on exports per quarter for any individual country or territory. Once the single global safeguard quota is exhausted, the out-of-quota 25% duty will apply to all imports, regardless of whether a country or territory’s total quarter or annual cap allocation has been reached. Once a country or territory’s total quarter or annual cap allocation has been reached, the out-of-quota 25% duty will apply to all imports from that country or territory, regardless of whether the global quota limit has been reached.
More information on how to access the quota can be found in the footnotes attached to the measure on the online tariff tool.
Limited access to unused quota in the next quarter
Any unused quarterly allocation of the global safeguard quota may cumulate within the quota year. Similarly, any unused cap allocation for any individual country or territory may cumulate within the year. At the end of the year, after quarter 4, the quota balance and the cap allocation for any individual country or territory will reset.
No individual country or territory is guaranteed access up to the total cumulated cap allowance. The global quota is administered on a first-come-first served basis and the global quota balance will be distributed accordingly.
Authorised use
To access the quota, goods must be declared for an authorised use procedure in accordance with the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.
The authorised use is the process of transforming Category 1 steel products into those steel products listed in the table below:
| Steel product | Commodity codes |
|---|---|
| Non alloy and other alloy cold rolled sheets | 72091500, 72091690, 72091790, 72091891, 72092500, 72092690, 72092790, 72092890, 72099020, 72099080, 72112320, 72112330, 72112380, 72112900, 72119020, 72119080, 72255020, 72255080, 72262000, 72269200 |
| Metallic coated sheet | 72102000, 72104100, 72104900, 72106100, 7210690020, 7210690080, 72109080, 72122000, 72123000, 72125020, 72125030, 72125040, 72125061, 72125069, 72125090, 72259100, 72259200, 72259900, 72269910, 72269930, 72269970 |
| Organic coated sheets | 72107080, 72124080 |
| Tin mill products | 72091899, 72105000, 72121090, 72101100, 72107010, 72124020, 72101220, 72109040, 72101280, 72121010 |
| Gas pipes | 73063041, 73063049, 73063072, 73063077 |
| Hollow sections | 73066110, 73066192, 73066199 |
| Other seamless tubes | 73041910, 73041930, 73041990, 73042300, 73042910, 73042930, 73042990, 73043120, 73043180, 73045181, 73045189, 73049000, 73043950, 73043982, 73043983, 73043988, 73045982, 73045983, 73045989 |
| Large welded tubes | 73051100, 73051200, 73051900, 73052000, 73053100, 73053900, 73059000 |
| Other welded pipes | 73061100, 73061900, 73062100, 73062900, 73063012, 73063018, 73063080, 73064020, 73064080, 73065021, 73065029, 73065080, 73066910, 73066990, 73069000 |
More information on how to import under category 1B can be found on the online tariff tool.
Quota amount and allocation for year 7 cat 1B
The tariff-rate quota applies from 1 October 2024 to 30 June 2025, in tonnes (t), allocated quarterly. The steel safeguard category 1B year 7 quarters are:
- quarter 2: 1 October 2024 to 31 December 2024
- quarter 3: 1 January 2025 to 31 March 2025
- quarter 4: 1 April 2025 to 30 June 2025
| Country | Q2 1 October to 31 December (in tonnes) |
Q3 1 January to 31 March (in tonnes) |
Q4 1 April to 30 June (in tonnes) |
|---|---|---|---|
| 40% cap (Maximum quota amount sourced from any individual country or territory, before incurring safeguarding duty) | 231,435 | 226,405 | 228,921 |
| Total | 578,587 | 566,013 | 572,302 |
Quota amount and allocation for year 8 cat 1B
The tariff-rate quota applies from 1 July 2025 to 30 June 2026, in tonnes (t), allocated quarterly. The steel safeguard category 1B year 8 quarters are:
- quarter 1: 1 July 2025 to 30 September 2025
- quarter 2: 1 October 2025 to 31 December 2025
- quarter 3: 1 January 2026 to 31 March 2026
- quarter 4: 1 April 2026 to 30 June 2026
| Country | Q1 1 July to 30 September (in tonnes) |
Q2 1 October to 31 December (in tonnes) |
Q3 1 January to 31 March (in tonnes) |
Q4 1 April to 30 June (in tonnes) |
|---|---|---|---|---|
| 40% cap (Maximum quota amount sourced from any individual country or territory, before incurring safeguarding duty) | 238,380 | 238,380 | 233,197 | 235,787 |
| Total | 595,950 | 595,950 | 582,993 | 589,468 |
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:
- the quota amount allocated for all other countries or territories
- the application of the safeguard duty
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 the:
- quota amount allocated for all other countries or territories
- application of the safeguard duty
Developing countries or territories
The developing country exemptions applied to category 1 via trade remedies notice 2024/06 continue to apply to category 1A and 1B. Developing countries granted an individual country quota under category 1 will be maintained under category 1A, and countries subject to the category 1 residual quota will continue to be subject to the residual quota under category 1A.
All developing countries or territories exempt from category 1 will be exempt from category 1A and category 1B. All countries or territories who are not exempt from category 1 will not be exempt from category 1A or category 1B. For the sake of certainty:
- India are subject to the category 1A residual quota (058002) as well as the 1B global quota
- Turkey benefit from their own country specific category 1A quota (058967) as well as the 1B global quota
Annex 1: Category 1A order numbers for importers to access the tariff-rate quota on steel goods
| Goods category | Origin country or territory | Order number |
|---|---|---|
| 1A | European Union | 058001 |
| 1A | Turkey | 058967 |
| 1A | Taiwan | 058085 |
| 1A | All others | 058002 |
Annex 2: Category 1B order numbers for importers to access the tariff-rate quota on steel goods
| Goods category | Origin country or territory | Order number |
|---|---|---|
| 1B | Global | See online tariff tool |