The European Commission has published rules for steel production without country quotas
The new EU regulation on steel trade, which is scheduled to enter into force on July 1, was published in the Official Journal of the EU on Wednesday, without specifying quotas by country. As negotiations with trading partners are still ongoing, it is becoming increasingly unlikely that they will be completed before July 1, Kallanish notes.
The allocation of quotas for specific countries should be defined in a separate implementation act. Until this is implemented, quotas will operate on a global basis, which is a significant factor for importers and supply chain planning, says Yuri Rudyuk, trade lawyer at Van Bael & Bellis.
Nevertheless, the regulation allows the European Commission to adopt relevant implementing acts as a matter of urgency. The procedure for ensuring the distribution of tariff quotas by July 1.
The new regime sets annual tariff quotas (TRQs) totaling 18.35 million tons and increases duty beyond quotas to 50% compared to the previous period of 25%
It applies to imports from all countries, including free trade agreement partners and beneficiaries of preferential trade agreements, with the exception of Norway, Iceland and Liechtenstein.
According to article 5, the allocation will not be based solely on historical trading shares. In addition to the market share in 2013 and the import structure of specific products in 2022-2024, the Commission should also consider existing and future free trade agreements, third-country measures that violate trade relations, compliance with ILO requirements and multilateral environmental agreements, international agreements related to global overcapacity, diversification of supply sources and the situation in developing countries.the candidates for EU membership they face. Exceptional and urgent security issues.
The information received according to the future melt and pour system will also be taken into account from October 2027.
The key element within the "melt and pour principle" must also still be specified. From October 1, 2026, importers will be required to red- provide verifiable evidence such as Factory Test Certificates (MTC) indicating where the steel or cast iron was originally produced in liquid form and cast into its first solid state.
However, the Commission has until August 31 to adopt the implementation rules defining acceptable evidence, after consultations with the interested parties. By June 2028, an assessment will be carried out on whether the right to obtain permits should be linked to the country in which they were obtained in order to