July 2026 Blog

New EU Steel Regulation: Higher tariffs, quotas halved and stricter documentation requirements

Since 1 July 2026, significantly stricter rules have applied to steel imports into the EU: The tariff rate outside the quota will double from 25 % to 50 %, tariff quotas will be halved, and from October importers will have to provide proof of where their steel was smelted and cast. This is based on the new Regulation (EU) 2026/1384, which was adopted on 17 June 2026 and replaces the previous Implementing Regulation (EU) 2019/159.

Background

The steel sector is of central importance to the EU’s competitiveness and security. Global overcapacity in the steel sector stood at around 602 million tonnes in 2024 – five times the EU’s demand. By 2027, this could rise to 721 million tonnes. Against this backdrop, the EU is significantly tightening its safeguard measures.

What exactly is changing?

Arguably the most significant change is that anyone importing steel outside the quota will in future pay an ad valorem duty rate of 50 per cent instead of the previous 25 per cent. This applies to all imports that no longer benefit from the tariff quotas. 

The total annual volume of the tariff quotas is now 18,345,922 tonnes. The specific volumes per product category and country of origin are set out in Annex II to the Regulation. As before, the quotas will be managed on a quarterly basis on a first-come, first-served basis. Allocation ends on the 20th working day following the end of the quarter. 

The Commission regulates the country-specific allocation of the tariff quotas by means of implementing acts. In making the allocation, it takes into account, amongst other things, existing and future free trade agreements, the trade-distorting effects of third-country measures, and the interests of countries applying for EU membership. For the period from 1 July to 31 December 2026, the Commission has carried out the allocation by means of Implementing Regulation (EU) 2026/1457. The Commission is also authorised to adjust the quota volumes by means of delegated acts. 

Unused quantities may be carried over to the next quarter within the same annual period of application. For the first period of application, the carry-over takes place automatically.

The safeguard measures now cover 30 product categories (previously 28). These mainly concern sheets, bars and wires falling within Chapter 72 of the CN, as well as tubes and pipes falling within Chapter 73 of the CN. The full list of goods can be found in Annex I to the Regulation.

Imports from Iceland, Liechtenstein and Norway are fully exempt from the application of the tariff quotas and the out-of-quota duty rate. Although the United Kingdom is taken into account in the country-specific quota allocation, it does not enjoy a comparable privilege.

From 1 October 2026, importers must provide verifiable proof of the country in which the steel was smelted and cast at the time of import. The aim of this rule is to prevent circumvention of the safeguard measures.

In particular, rolling mill certificates or other factory certificates may be accepted as proof. The decisive factor is the original location where crude steel or iron was produced in liquid form in a smelting furnace and subsequently cast into its first solid state – for example, as a slab, billet or ingot.

The Commission is setting up a central online contact point. There, companies can access information on the implementation of the Regulation – for example, on the customs administration system, quota allocation and the application of the ‘melt-and-pour’ rule.

Recommendations for action

  • Request factory certificates at an early stage: The documentation requirements will apply from 1 October 2026. Importers should now request the necessary certificates from their suppliers, specifying the country of smelting and casting. Early coordination and adaptation of internal processes will help to avoid delays in customs clearance.
  • Plan quota utilisation strategically: Given that the duty rate outside the quota has doubled, it is worth managing import volumes and timing in a targeted manner. Those who make optimal use of the available quotas will make significant savings.
  • Keep an eye on the expansion of the scope of application: Even those not currently affected should monitor developments and carry out an early risk analysis. The Commission will assess by 31 December 2026 whether further goods – in particular those under headings 7303, 7229, 7223 and 7214 – will be covered in future.

 

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