Recently, the United States and the European Union announced an agreement to replace the existing 25 percent tariff on EU steel products with a Tariff Rate Quota, which will go into effect on January 1, 2022. Under the Tariff Rate Quota arrangement, historically based volumes of EU steel will enter the US without application of Section 232 duties subject to certain conditions. US Department of Commerce announced last week that the aggregate annual import volume under the Tariff Rate Quota is set at 3.3 million tonnes under 54 product categories and allocated on an EU member state basis, in line with the 2015-2017 historical periodsGermany - 907,893 tonnesNetherlands - 507,598 tonnesItaly - 360,477 tonnesSweden – 129,363 tonnesBelgium – About 90,000 tonnesAustria – About 11,000 tonnesCzech Republic – About 60,000 tonnesRest is divided among France and other producers.Tariff Rate Quota will be calculated for each year of the measure and administered on a quarterly basis. These will be allocated on a ‘first come, first served’ basis for various product categories. Any unused Tariff Rate Quota volume from the first quarter of the year, up to 4% of the allocated quota for that quarter, will roll over to the third quarter. Any unused Tariff Rate Quota volume from the second quarter of the year, subject to the same limit, will roll over into the fourth quarter, and any unused Tariff Rate Quota volume from Q3, subject to the same limit, will roll over into Q1 of the following year.US imported around 2.50 million tonnes of steel from the EU last year, 4.00 million tonnes in 2019 and 5.00 million tonnes in 2018
Recently, the United States and the European Union announced an agreement to replace the existing 25 percent tariff on EU steel products with a Tariff Rate Quota, which will go into effect on January 1, 2022. Under the Tariff Rate Quota arrangement, historically based volumes of EU steel will enter the US without application of Section 232 duties subject to certain conditions. US Department of Commerce announced last week that the aggregate annual import volume under the Tariff Rate Quota is set at 3.3 million tonnes under 54 product categories and allocated on an EU member state basis, in line with the 2015-2017 historical periodsGermany - 907,893 tonnesNetherlands - 507,598 tonnesItaly - 360,477 tonnesSweden – 129,363 tonnesBelgium – About 90,000 tonnesAustria – About 11,000 tonnesCzech Republic – About 60,000 tonnesRest is divided among France and other producers.Tariff Rate Quota will be calculated for each year of the measure and administered on a quarterly basis. These will be allocated on a ‘first come, first served’ basis for various product categories. Any unused Tariff Rate Quota volume from the first quarter of the year, up to 4% of the allocated quota for that quarter, will roll over to the third quarter. Any unused Tariff Rate Quota volume from the second quarter of the year, subject to the same limit, will roll over into the fourth quarter, and any unused Tariff Rate Quota volume from Q3, subject to the same limit, will roll over into Q1 of the following year.US imported around 2.50 million tonnes of steel from the EU last year, 4.00 million tonnes in 2019 and 5.00 million tonnes in 2018
