The report emphasized that EU steel production in recent years has remained significantly below capacity, import pressure has increased, and the strategic importance of the sector has become more pronounced. The Committee notes that steel is a critical sector not only from an economic perspective but also in terms of strategic autonomy, the defense industry, and green transition goals.
The new regulation aims to strengthen areas where the existing safeguard measures fall short. In this context, it proposes lifting the current ban on quarterly customs quota transfers and allowing unused quota volumes to be carried over to the next quarter. The Committee states that this change would create greater flexibility in the supply chain and ensure more balanced quota management against market fluctuations.
Another key change highlighted in the draft report is a significant increase in the tariff applied to out-of-quota imports. The proposal suggests raising the current additional duty from 25% to 50%. This measure is intended to curb low-priced steel inflows targeting the EU market due to global overcapacity and to protect the competitiveness of EU producers.
The report states that the “melt and pour” rule for determining the origin of steel products will be maintained, but the process of proving compliance will be granted substantial flexibility. Accordingly, in addition to production certificates, invoices, delivery documents, quality certificates, supplier declarations, cost and production records, customs documents from the exporting country, and manufacturer-issued shipment-specific declarations will also be accepted as proof of origin. INTA stresses that this adjustment will reduce the administrative burden, particularly for small and medium-sized enterprises.
The draft regulation also includes a complete ban on the entry of all steel products melted and poured in Russia or Belarus into the EU market. These products will be automatically rejected at customs and will not benefit from any quota advantages. The Committee states that this ban aligns with the EU’s security policies and aims to restrict steel flows from countries that are major sources of global overcapacity.
Ukraine, on the other hand, will be fully exempt from the regulation due to the ongoing wartime conditions. Within the EU’s commitment to support Ukraine’s economy, all Ukraine-origin products will be excluded from the new mechanism.
The draft report also introduces an obligation for the European Commission to prepare an annual implementation report in order to ensure transparent application of the regulation. It foresees an impact assessment every two years and a review of the product scope within the first year of entry into force. INTA emphasizes that indicators such as global overcapacity, price movements, import pressure, trade diversion, and capacity utilization in EU steel production must be regularly analyzed.
Finally, the Committee states that the new measures will be implemented in full compliance with World Trade Organization rules and that trade will be restricted only to the extent necessary.
Comments
No comment yet.