As of June 28, 2021, according to the Ukrmetallurgprom association of enterprises, Ukrainian exporters have completely exhausted quotas for the supply of metal products to the European Union, with the exception of three types of rolled metal: angles and profiles made of iron and unalloyed steel, wire and reinforcement. At the same time, almost 80% of quotas for reinforcement have been selected.
Ukraine has an individual tariff quota for 11 categories out of 26 types of rolled metal, the import of which is quotaised by the European Union to protect the domestic market. If the country has exhausted its quota, then further deliveries are subject to a duty of 25%.
According to the decision of the European Commission of May 29, 2020, from July 1, 2020, the adjusted rules for the use of tariff quotas for the import of metal products to the EU countries came into force, which are valid until June 30, 2021.
June 24, 2021 European Commission extended quotas and protective duties on the import of steel products into the region for another three years - until June 30, 2024.
Ukraine, as before, has individual ("country") tariff quotas for the following 11 categories: 2 (cold-rolled flat products from unalloyed and alloyed steel), 7 (heavy-plate products from unalloyed and alloyed steel), 13 (rebar) , 14 (rods, bars and small grade of stainless steel), 16 (wire rod made of unalloyed and alloyed steel), 17 (angles and profiles of iron and unalloyed steel), 21 (hollow profile), 22 (seamless stainless steel pipes) , 24 (other seamless pipes), 27 (cold rolled rods and bars of unalloyed and alloyed steel) and 28 (unalloyed wire).
Tariff quotas, both individual and global, operate on a quarterly basis of distribution. The mechanism for transferring unused quota volumes from the previous quarter to the next is also preserved - countries will receive access to unselected quota volumes of the previous quarter on the 20th working day of the new quarter. The specified mechanism operates exclusively within one period, and the volumes of tariff quotas that were not selected in the last quarter of the previous period are not carried over to the next period.
It is possible to use the global tariff quota in the fourth (final) quarter of each period (i.e., from 04/01/2022 to 06/30/2022, from 04/01/2023 to 06/30/2023 and from 04/01/2024 to 06/30/2024) by countries that have exhausted the individual tariff quota, but with the preservation of the already existing "access modes".
There are three "access modes":
Mode 1: "No use" - countries that have exhausted their individual tariff quota are deprived of the right to use the global tariff quota in the last quarter of each period.
Group 16 (wire rod made of unalloyed and alloyed steel) and group 27 (cold-rolled rods and bars made of unalloyed and alloyed steel) fall into this category from the categories for which Ukraine has an individual tariff quota.
Mode 2: "Restriction of access" - the maximum allowed volumes of access to the global tariff quota in the fourth quarter of the period have been set for countries that have exhausted the individual tariff quota. At the same time, the indicated volumes are common for all countries that have exhausted the individual tariff quota, and are used according to the first come - first served principle
From the categories for which Ukraine has an individual tariff quota, this category includes groups 13 (rebar, the maximum allowed volume for the use of the global tariff quota in the fourth quarter is 29,457.54 tons), 14 (rods, bars and small grade from stainless steel, 2 590.07 tons), 21 (hollow profile, 3330.95 tons), 22 (seamless stainless steel pipes, 1991.54 tons) and 28 (unalloyed wire, 21 998.71 tons).
Mode 3: Full Control - no restrictions.
Of the categories for which Ukraine has an individual tariff quota, this category includes groups 2 (cold-rolled flat products from unalloyed and alloyed steel), 7 (heavy-plate products from unalloyed and alloyed steel), 17 (angles and profiles made of iron and unalloyed steel) and 24 (other seamless pipes).
It is also envisaged to increase the volume of tariff quotas in each subsequent period by 3% compared to the previous period.
