As Callanish became aware, the ongoing scandal over recent changes to the steel guarantee system in the UK intensified after several errors in the quota system were identified, which led to the suspension of accounting for certain products.
Jonathan Reynolds, the Secretary of State, recently cancelled, as a matter of urgency, the Consumer Protection Agency (TRA) recommends the introduction of a 15% limit on the residual quota of category 4 and a 20% limit on the residual quotas of categories 7 and 13. This has caused great dissatisfaction among many importers, who continue to call for immediate changes.
The notice from the UK Department of Revenue and Customs (HMRC) highlights two issues that need to be addressed. One of them is the incorrect operation of the online trade tariff indicator when displaying the initial balance for accounts with limited quotas of individual countries. The initial balance for the corresponding account with the remaining quota is displayed here. HMRC says it is working with DBT to fix this issue.
It adds that a problem with calculations has been identified in the quota system, which affects all quota accounts of individual countries with limited volume and the associated residual account.
The problem arises when an individual country's account is close to exhaustion and partial allocation of resources is required. Due to this issue, two accounts have been blocked pending further investigation, 058410 for Vietnam and 058411 for South Korea, both classified as Category 4, metal-coated sheets.
HMRC adds that there is a significant balance in other accounts with limited quotas of individual countries, and claims may still be made against them.
In a message on social media, the ISTA traders association reports that the system has been suspended until August 1, calling this step "absolutely unacceptable."
It calls on Reynolds to deal with the "catastrophic situation" and either reconsider his decision on TQ0066, or at least postpone the implementation until October 1.
ISTA, among others, continues to campaign for changes to steel safety measures, with importers hit hard by limited permits and short notice.
In the weeks following the changes, businesses continued to express their dissatisfaction with the system, which some said left them in limbo and prevented them from calculating their obligations.
Carrie Bone United Kingdom
Kallanish.com
