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European Steel Tariff Rate Quota Changes – 1 July 2026

What’s Happening?

For some time, the European Union has expressed concern about global steel oversupply. This oversupply threatens to undermine the strategically important steel industry within Europe.

To address this risk, the European Union is introducing a new Tariff Rate Quota (TRQ) regime on steel imports, effective 1 July 2026. This quota system will fundamentally impact on how steel enters the EU market, creating significant compliance and cost implications for importers.

Key changes include: - Tariff Rate Quota volumes have been reduced - Out-of-quota duty rates have increased from 25% to 50%.

The European Commission is expected to publish two implementing regulations to provide the legal basis for this measure.

Who Is Impacted?

  • Steel importers and wholesalers
  • Manufacturing companies relying on steel inputs
  • Construction firms sourcing steel materials
  • Any business with EU supply chains dependent on imported steel

What to Do Now?

A Binding Tariff Information (BTI) ruling is a formal determination, valid for 3 years, which specifies the correct tariff code for a specific product. The BTI reference number is entered on the import declaration and provides importers with complete clarity regarding: - The correct tariff code - The applicable duty rate - Information on available in-quota volumes It is strongly recommended that companies importing steel from third countries obtain BTIs when they:

  • Rely on suppliers to provide the correct tariff code
  • Cannot confidently verify the tariff code applied to imported goods
  • Lack the technical expertise to independently and confidently assign tariff codes to steel products

Case Study: A company was importing a specific steel grade from a supplier in China. The company was benefiting from the existing quota regime, and the applicable import duty rate was 0%. During a post-clearance customs check, Irish customs determined that an incorrect tariff classification code had been used for these imports. When the correct tariff classification was applied, the quota allocation for that tariff code had been exhausted. Consequently, the importer was required to pay the 25% safeguarding duty on all affected goods imported during the preceding 12 months—resulting in significant financial impact. Had the importer obtained BTIs for their goods, this situation would have been avoided entirely.

In-quota TRQ volumes are significantly lower than current quota levels. Additionally, any volumes imported above the quota will attract a 50% duty, compared to the 25% currently applicable.

In the coming weeks, the European Commission will publish implementing regulations detailing country-specific volumes of steel that can be imported under the tariff rate quota regime. To prevent circumvention of this measure and to manage national allocations, importers will be required to provide proof of where the steel was manufactured (melted and poured). Imported steel may not qualify for quota treatment if there is insufficient documentation proving the location of melt and pour.

Steel quotas will be managed on a quarterly basis with no carryover between quarters. Given the reduction in quota volumes, we advise importing early in each quarter to maximize the likelihood of securing in-quota treatment before allocations are exhausted.

Steel sourced from within the EEA (EU + Norway, Iceland, and Liechtenstein) will not be impacted by these measures.

How Deloitte Can Help?

Deloitte has extensive experience assisting clients through complex tariff and trade compliance challenges. We can support you with:

  • BTI applications and tariff classification reviews
  • Landed cost modelling and scenario analysis
  • Supply chain optimization strategies
  • Customs compliance and documentation frameworks

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