Notice

Trade remedies notice 2022/01: safeguard measure: tariff-rate quota on steel goods

Updated 30 June 2023

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 The year 6 quota allocations were superseded by Trade Remedies Notice 2023/10 on 30 June 2023.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”) and gives effect to a decision of the Secretary of State under regulation 12 of the Regulations.

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 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. Economic interest test

The TRA found evidence of positive impacts of extending the measure, as compared to revoking it. These included benefits to the UK steel industry from removing the likelihood of serious injury, in light of global overcapacity and the risk of trade diversion due to continuation of the measure in other major markets. Extending the measure would also likely benefit the upstream suppliers of scrap metal that relied on demand from the steel industry and would allow UK producers to remain viable suppliers to the UK market and competitive in the long term.

The TRA recognised that there were some potentially significant negative impacts of extending the measure. For example, importers would be less able to compete with UK producers above quota amounts and costs to downstream industries could increase. In the short-term, extension of the safeguard measure could hinder the ability of overseas suppliers to compete as effectively as in the absence of the measure and could result in a lower number of suppliers in the UK market.

The TRA concluded that the negative impacts did not outweigh the significant impacts and therefore found that the EIT was met for a safeguard measure to be applied to product categories 1, 2, 4, 5, 6, 7, 12A, 12B, 13, 16, 17, 19, 20, 21, 25A, 25B, and 26.

6. 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.

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

The steel safeguard measure will continue to apply on the following 10 steel categories until 30 June 2024:

• 1 – Non-alloy and other alloy hot-rolled sheet and strip
• 2 – Non-alloy and other alloy cold-rolled sheet
• 4 – Metallic coated sheet
• 5 – Organic coated sheet
• 13 – Rebar
• 19 – Railway material
• 20 – Gas pipe
• 21 – Hollow section
• 25 – Large welded tube
• 26 – Other welded tube

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.

Goods category [**]	Goods category name	‘UK Global Tariff’ commodity code
A [1]	Non-alloy and other alloy hot-rolled sheet and strip	72 08 10 00 72 08 25 00 72 08 26 00 72 08 27 00 72 08 36 00 72 08 37 00 72 08 38 00 72 08 39 00 72 08 40 00 72 08 52 10 72 08 52 99 72 08 53 10 72 08 53 90 72 08 54 00 72 11 13 00 72 11 14 00 72 11 19 00 72 12 60 00 72 25 19 10 72 25 30 10 72 25 30 30 72 25 30 90 72 25 40 15 72 25 40 90 72 26 19 10 72 26 91 20 72 26 91 91 72 26 91 99
B [2]	Non-alloy and other alloy cold-rolled sheet	72 09 15 00 72 09 16 90 72 09 17 90 72 09 18 91 72 09 25 00 72 09 26 90 72 09 27 90 72 09 28 90 72 09 90 20 72 09 90 80 72 11 23 20 72 11 23 30 72 11 23 80 72 11 29 00 72 11 90 20 72 11 90 80 72 25 50 20 72 25 50 80 72 26 20 00 72 26 92 00
C [4]	Metallic coated sheet	72 10 20 00 72 10 41 00 72 10 49 00 72 10 61 00 72 10 69 00 20 72 10 69 00 80 72 10 90 80 72 12 20 00 72 12 30 00 72 12 50 20 72 12 50 30 72 12 50 40 72 12 50 61 72 12 50 69 72 12 50 90 72 25 91 00 72 25 92 00 72 25 99 00 72 26 99 10 72 26 99 30 72 26 99 70
D [5]	Organic coated sheet	72 10 70 80 72 12 40 80
E [13]	Rebar	72 14 20 00 72 14 99 10
F [19]	Railway material	73 02 10 22 73 02 10 28 73 02 10 50
G [20]	Gas pipe	73 06 30 41 73 06 30 49 73 06 30 72 73 06 30 77
H [21]	Hollow section	73 06 61 10 73 06 61 92 73 06 61 99
I [25A]	Large welded tube (1)	73 05 11 00 73 05 12 00
J [25B]	Large welded tube (2)	73 05 19 00 73 05 20 00 73 05 31 00 73 05 39 00 73 05 90 00
K [26]	Other welded tube	73 06 11 00 73 06 19 00 73 06 30 12 73 06 30 18 73 06 21 00 73 06 29 00 73 06 50 21 73 06 50 29 73 06 30 80 73 06 40 20 73 06 40 80 73 06 50 80 73 06 69 10 73 06 69 90 73 06 90 00

** 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 11 pm 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 set out in this notice has effect from 1 July 2022 to 30 June 2024.

10. Quota amount and allocation

The quota is divided into 8 Quarters over 2 years and specifies for each goods category the amount of steel goods that may be imported free of safeguard duty in any given Quarter.

11. 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.

12. Limited access to unused quota in next quarter of same year

Any unused quota allocated for steel goods originating in a country or territory remains available in the next Quarter for steels goods originating in that country or territory. Any unused balance may cumulate within the same year but any quota remaining at the end of each year is not available in the next year.

13. 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.

14. 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
A [1]	European Union	176,722	176,722	172,880	174,801
A [1]	Turkey	23,203	23,203	22,699	22,951
A [1]	Taiwan	12,918	12,918	12,637	12,777
A [1]	All others	22,233	22,233	21,750	21,991
B [2]	European Union	76,412	76,412	74,751	75,581
B [2]	South Korea	11,240	11,240	10,996	11,118
B [2]	India	9,396	9,396	9,192	9,294
B [2]	Vietnam	6,807	6,807	6,659	6,733
B [2]	All others	17,036	17,036	16,666	16,851
C [4]	European Union	305,241	305,241	298,605	301,923
C [4]	Taiwan	31,558	31,558	30,872	31,215
C [4]	India	23,307	23,307	22,801	23,054
C [4]	Turkey	23,242	23,242	22,736	22,989
C [4]	All others	80,601	80,601	78,849	79,725
D [5]	European Union	34,543	34,543	33,792	34,167
D [5]	South Korea	14,037	14,037	13,732	13,884
D [5]	All others	2,098	2,098	2,053	2,075
E [13]	European Union	70,174	70,174	68,648	69,411
E [13]	Turkey	33,245	33,245	32,522	32,883
E [13]	All others	22,635	22,635	22,143	22,389
F [19]	European Union	4,517	4,517	4,419	4,468
F [19]	All others	133	133	130	131
G [20]	Turkey	14,810	14,810	14,489	14,649
G [20]	European Union	6,666	6,666	6,521	6,593
G [20]	India	3,427	3,427	3,352	3,390
G [20]	United Arab Emirates	2,272	2,272	2,223	2,247
G [20]	All others	696	696	681	689
H [21]	Turkey	35,157	35,157	34,393	34,775
H [21]	European Union	10,671	10,671	10,439	10,555
H [21]	All others	3,244	3,244	3,174	3,209
I [25A]	Japan	7,794	7,794	7,624	7,709
I [25A]	European Union	5,963	5,963	5,834	5,899
I [25A]	South Korea	1,191	1,191	1,165	1,178
I [25A]	All others	2,102	2,102	2,057	2,079
J [25B]	European Union	15,339	15,339	15,006	15,173
J [25B]	South Korea	4,409	4,409	4,313	4,361
J [25B]	Japan	1,932	1,932	1,890	1,911
J [25B]	All others	4,650	4,650	4,549	4,600
K [26]	European Union	21,488	21,488	21,021	21,255
K [26]	United Arab Emirates	14,441	14,441	14,127	14,284
K [26]	Turkey	10,490	10,490	10,262	10,376
K [26]	China	5,518	5,518	5,398	5,458
K [26]	All others	9,528	9,528	9,320	9,424

15. 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
A [1]	European Union	181,526	181,526	179,553	179,553
A [1]	Turkey	23,834	23,834	23,575	23,575
A [1]	Taiwan	13,269	13,269	13,125	13,125
A [1]	All others	22,837	22,837	22,589	22,589
B [2]	European Union	78,489	78,489	77,636	77,636
B [2]	South Korea	11,546	11,546	11,421	11,421
B [2]	India	9,652	9,652	9,547	9,547
B [2]	Vietnam	6,992	6,992	6,916	6,916
B [2]	All others	17,499	17,499	17,309	17,309
C [4]	European Union	313,539	313,539	310,131	310,131
C [4]	Taiwan	32,416	32,416	32,063	32,063
C [4]	India	23,941	23,941	23,681	23,681
C [4]	Turkey	23,873	23,873	23,614	23,614
C [4]	All others	82,792	82,792	81,892	81,892
D [5]	European Union	35,482	35,482	35,096	35,096
D [5]	South Korea	14,419	14,419	14,262	14,262
D [5]	All others	2,155	2,155	2,132	2,132
E [13]	European Union	72,081	72,081	71,298	71,298
E [13]	Turkey	34,148	34,148	33,777	33,777
E [13]	All others	23,250	23,250	22,997	22,997
F [19]	European Union	4,640	4,640	4,590	4,590
F [19]	All others	137	137	135	135
G [20]	Turkey	15,213	15,213	15,048	15,048
G [20]	European Union	6,847	6,847	6,773	6,773
G [20]	India	3,520	3,520	3,482	3,482
G [20]	United Arab Emirates	2,334	2,334	2,308	2,308
G [20]	All others	715	715	708	708
H [21]	Turkey	36,113	36,113	35,721	35,721
H [21]	European Union	10,962	10,962	10,842	10,842
H [21]	All others	3,332	3,332	3,296	3,296
I [25A]	Japan	8,006	8,006	7,918	7,918
I [25A]	European Union	6,126	6,126	6,059	6,059
I [25A]	South Korea	1,224	1,224	1,210	1,210
I [25A]	All others	2,159	2,159	2,136	2,136
J [25B]	European Union	15,756	15,756	15,585	15,585
J [25B]	South Korea	4,529	4,529	4,479	4,479
J [25B]	Japan	1,984	1,984	1,963	1,963
J [25B]	All others	4,777	4,777	4,725	4,725
K [26]	European Union	22,073	22,073	21,833	21,833
K [26]	United Arab Emirates	14,833	14,833	14,672	14,672
K [26]	Turkey	10,775	10,775	10,658	10,658
K [26]	China	5,668	5,668	5,607	5,607
K [26]	All others	9,787	9,787	9,680	9,680

16. 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.

17. 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.

18. 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: K*)
• 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 (Categories: A^; B*; C*; D^; E^; G*; K^)
• 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 (Category.: B^)
• Turkey (Categories: A*; C*; E*; G*; H*; K*)
• Uganda
• Ukraine (Cat.: B^)
• United Arab Emirates (Categories: G*; H^; K*)
• Uruguay
• Vanuatu
• Venezuela
• Vietnam (Categories.: B*; C^; D^)
• Yemen
• Zambia
• Zimbabwe

19. Annex

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

Goods category	Origin country or territory	Order number
A	European Union	058001
A	Turkey	058967
A	Taiwan	058085
A	All others	058002
B	European Union	058003
B	South Korea	058802
B	India	058801
B	Vietnam	058086
B	All others	058005
C	European Union	058006
C	Taiwan	058088
C	India	058106
C	Turkey	058107
C	All others	058007
D	European Union	058010
D	South Korea	058827
D	All others	058011
E	European Union	058018
E	Turkey	058866
E	All others	058020
F	European Union	058030
F	All others	058031
G	Turkey	058911
G	European Union	058032
G	India	058912
G	United Arab Emirates	058090
G	All others	058033
H	Turkey	058916
H	European Union	058034
H	All others	058035
I	Japan	058108
I	European Union	058091
I	South Korea	058095
I	All others	058036
J	European Union	058037
J	South Korea	058974
J	Japan	058109
J	All others	058038
K	European Union	058039
K	United Arab Emirates	058948
K	Turkey	058947
K	China	058949
K	All others	058041