UK Steel proposes two separate quotas for merchant bar and specialty steel bar

Tuesday, 14 September 2021 17:02:06 (GMT+3)   |   Istanbul
       

The trade association UK Steel and the Confederation of British Metalforming (CBM) have proposed some adjustments as a long-term solution addressing the issues with regards to the operation of the UK’s steel safeguard on category 12, non-alloy and other alloy merchant bars and light sections, according to a document seen by SteelOrbis.

UK Steel and CBM have agreed on a split for category 12 into merchant and specialty bar products, which is in short supply in the UK, to take effect from the next quarter. This will protect historical trade flows and established supply chains for both segments, while preventing surges in imports for which the safeguards are intended.   

The association and CBM have proposed that the specialty bar importers should be paid back the tariff they paid as the quota was exhausted. This will not apply to the merchant bar importers as there is sufficient domestic supply.

“An increase of the quota would simply allow import surges to resume unabated, counter to the aims of the safeguards. Instead, our proposal of a temporary tariff rebate facility and a split in category 12 would be an effective way to ensure that traditional imports of specialty bar can still be accessed tariff-free, while the safeguard is performing its function in preventing surges of imports of commercial bar. This also provides an environment where UK steel producers and consumers can meaningfully engage to establish new supply chains going forward,” UK Steel stated.

In June this year, the UK’s Trade Remedies Authority (TRA) recommended the safeguards measure on the subject products should be revoked, though in September the TRA stated that it would reconsider its recommendation, as SteelOrbis previously reported.


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