Posted on 31 Dec 2020
The UK's steel import safeguards system – published Sept. 30 for use from Jan 1, 2021 – will still be applicable to some trade between the EU and the UK, and between Turkey and the UK, following the agreement of new trade accords with these partners in recent days, the UK tax department HMRC clarified Dec. 30.
Safeguards are non-preferential measures, along with measures including anti-dumping duties and countervailing duties. Preferential agreements – such as the ones negotiated by the UK with both the EU and with Turkey – do not impact on the application of steel safeguards, an HMRC officer told S&P Global Platts.
"Preferences are optional, but you cannot opt out of non-preferential measures (which includes safeguards, anti-dumping and countervailing duties)," the officer said. "Any steel safeguards exemptions granted to certain countries are on the basis of low volumes of exports of the particular product.
"The UK steel safeguards will remain in place, at least until after the current safeguard review concludes in June 2021."
UK-EU accord
Steel trade between the EU and UK can proceed on preferential duty rates from Jan. 1, 2021, avoiding customs duties if preference is claimed, according to a UK government update on its website Dec. 28, following agreement by the UK and the EU of a post-Brexit trade deal Dec. 24.
To claim preferential duty, the product must originate in the EU or UK and be a classified good.
Otherwise, "EU origin steel is subject to UK quotas/duties and vice versa," according to HMRC.
Preference only reduces or eliminates customs import duties, which are paid in addition to any safeguard duties. However, for most steel products the customs import duty rate on EU-UK trade is in any case zero, without any preference conditions.
Turkey accord
Turkey and the UK on Dec. 29 signed a preferential trade accord to ensure the continuation of business between the two nations without additional tariffs after the UK leaves the EU customs union at midnight on Dec. 31. The deal is seen as favorable for UK steel and automotive sectors.
"The UK-Turkey deal does not stop the imports (of steel from Turkey) from being subject to the safeguard measures. Preference is a separate regime running alongside the non-preferential regime," the HMRC officer clarified.
Turkish steel imports into the UK will in general, therefore, still be subject to steel safeguard quotas/duties, although there are exemptions in several product categories. According to the list published Sept. 30 by the UK Department for International Trade (DIT)'s Trade Remedies Investigations Directorate, Turkish cold-rolled steel sheets, tin mill products, quarto plates, stainless bars and sections and some large welded tubes will be exempt from safeguards upon entry to the UK.
Exemptions may be granted when the goods do not enter into free circulation in the UK, the HMRC officer said.
The UK government will make available a quota look-up section in the UK online tariffs page for interested parties.
The UK quota numbers will not be the same as the EU quota numbers. The UK numbers will be published shortly in the DIT's Taxation Notice, the officer said.
Source:Platts
