29 June 2021, Tuesday, 19:24 187

European Commission Prolongs Tariff Quotas For Rolled Metal Imports With 25% Duty For Volumes Exceeding 3-Year Quotas Till June 30, 2024

Редактор: Daria Zubkova

The European Commission has extended individual and global tariff quotas for rolled metal imports with a 25% duty on volumes above the quota for three years until June 30, 2024.

That follows from a statement by Ukrmetalurhprom metallurgical enterprises association, Ukrainian News Agency reports.

"On June 24, 2021, the European Commission decided to extend protective measures for a period of three years (from July 1, 2021 to June 30, 2024) regarding the import of rolled metal products into the European Union, regardless the country of origin and import in the form of individual and global tariff quotas. There are three periods envisioned: from July 1, 2021 to June 30, 2022, from July 1, 2022 to June 30, 2023 and from July 1, 2023 to June 30, 2024," it says.

According to the report, the mechanism for using tariff quotas remains unchanged: after the complete exhaustion of the tariff quota, import duties at a rate of 25% take force.

The report notes that 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 ( reinforcement), 14 (rods, bars and small grade of stainless steel), 16 (wire rod made of unalloyed and alloyed steel), 17 (angles and profiles made of iron and unalloyed steel), 21 (hollow profile), 22 (seamless pipes made of stainless steel), 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 quotas from the previous quarter to the next is also preserved - countries will receive access to the under-selected quotas of the previous quarter on the 20th working day of the new quarter. The mechanism is in force within one period exclusively, 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," says the statement.

It is also possible to use the global tariff quota in the fourth (final) quarter of each period (i.e., from April 1, 2022 to June 30, 2022, from April 1, 2023 to June 30, 2023 and from April 1, 2024 to June 30, 2024 years) by countries that have exhausted the individual tariff quota, but with the preservation of the already existing "access regimes".

According to the post, there are three "access modes":

- Mode 1: "Ban on use" - countries that have exhausted the 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: "Access restriction" - the maximum allowed volumes of access to the global tariff quota in the fourth quarter of the period for countries that have exhausted the individual tariff quota are set. 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.
This category, from the categories for which Ukraine has an individual tariff quota, contains groups 13 (valves, 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 of 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 access" - without any 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 (corners and profiles of iron and unalloyed steel) and 24 (other seamless pipes).
Also, according to the message, it is planned to increase the volume of tariff quotas in each subsequent period by 3% compared to the previous period.
As of June 28, with the passed part of the final quarter of 3 periods at 98.89%, Ukraine has completely exhausted the individual tariff quota for groups 2 (cold-rolled flat products from unalloyed and alloyed steel), 7 (heavy-plate products from unalloyed and alloyed steel), 14 (rods, bars and small grade stainless steel), 21 (hollow profile), 22 (seamless stainless steel tubes), 24 (other seamless tubes) and 27 (cold rolled bars and bars of unalloyed and alloyed steel).
The smallest consumption is in group 17 (corners and profiles made of iron and unalloyed steel, 15.28%).
As for group 20 (gas pipes), in relation to which Ukraine is a member of the global tariff quota, then, as of June 28, its quota is completely exhausted.
As Ukrainian News Agency earlier reported, on February 2, 2019, the final individual and global tariff quotas for metal imports introduced by the European Commission came into force with a duty of 25% on volumes over the quota.
The European Commission introduced these restrictions from February 2, 2019 to June 30, 2021.
On July 19, 2018, as part of an earlier investigation into metal products, the European Commission introduced quotas for imports of metal products with a 25% duty on volumes in excess of the quota.