The European Union has published Regulation (EU) 2026/1384 in the Official Journal of the European Union, replacing the current steel safeguard measures that will expire on 30 June 2026.
Aimed at reducing the trade-related adverse effects of global overcapacity on the Union steel market, the new regulation entered into force upon its publication in the Official Journal and will be applied as of 1 July 2026.
The new regulation introduces a more comprehensive tariff-rate quota regime in place of the safeguard system that has been in force since 2019, aiming to tighten import management in the EU steel market.
Out-of-quota duty increased to 50%
Under the regulation, the out-of-quota customs duty, which currently stands at 25%, has been increased to 50%. The EU cited tariff differentials in global trade and the growing risk of trade diversion as the justification for this increase.
Under the new system, steel exports to the EU exceeding the allocated quota limits will be subject to an additional 50% duty. Imports from Iceland, Liechtenstein, and Norway will remain outside the scope of the system.
Annual steel quota set at 18.3 million tonnes
Under the new system, the total tariff-rate quota for the EU has been set at 18,345,922 tonnes. This volume was calculated based on a 13% import market share reference from 2013, when global overcapacity pressures had not yet intensified, while also taking into account 2024 consumption data.
Due to the existing import bans on Russia, imports from the country were excluded from the quota calculation. Quotas will be allocated across product categories based on import shares recorded during the 2022–2024 period and will be administered on a quarterly basis.
New origin control through “Melt and Pour”
Another key provision of the regulation is the introduction of the “melt and pour” rule.
Accordingly, for steel products, not only the country of final processing but also the country where the steel was first transformed from liquid to solid form (such as slabs, billets, or ingots) will be recognized as the country of origin.
Under this requirement, importers will be obliged to prove the production chain through documents such as a Mill Test Certificate during customs procedures. Through this measure, the EU aims to prevent trade diversion resulting from indirect origin changes and to increase transparency throughout the supply chain.
Quarterly quota management and flexibility
Under the new system, tariff-rate quotas will be managed on a quarterly rather than annual basis. Unused quota volumes may be carried over to the following quarter during the first year of implementation.
However, after the first year, the European Commission will have the authority to revise this carry-over mechanism according to market conditions, import pressure, and quota utilization rates. It was stated that the carry-over system may continue to be applied more flexibly for product categories where the average quota utilization rate exceeds 80%.
Key implementation timeline
With the entry into force of the regulation, the new quota system and the “melt and pour” data collection mechanism will become operational as of 1 July 2026.
On 31 December 2026, the first scope review covering certain product categories will be carried out.
On 30 June 2027, an assessment will be conducted to determine whether downstream products made of steel or containing significant amounts of steel should be included in the system.
From 1 October 2027, melt-and-pour data are expected to be used more actively in quota allocation. By 30 June 2028, an evaluation will be made on whether this principle should become a primary criterion for access to quotas.
The European Commission will also carry out regular reporting and conduct scope reviews every two years from 2028 onwards.
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