The UK Department for Business and Trade has announced the introduction of a transition phase to mitigate the impact of new tariff quotas on steel imports, which will come into effect on July 1, 2026. The aim of this measure is to support businesses concerned about the impact of changes on the cost of imported raw materials and to provide them with additional time to adapt to the new conditions.
This is reported by Finway
Features of the Transition Period and Conditions for Exemption from Surcharges
According to the announced rules, steel products imported under contracts signed before March 14, 2026, will be fully exempt from the 50% surcharge for exceeding the tariff quota during the period from July 1 to September 30, 2026. This will allow businesses to avoid additional financial costs during the transition to the new system. To receive the exemption, traders must provide proof that the shipment was ordered before the specified date.
It is important to note that goods covered by this transitional exemption will not be counted in the allocation of quotas for the relevant quarter, specifically from July to September 2026. The volumes of unused quotas can be carried over to the next quarter of the same quota year for most categories, except for Category 1 — hot-rolled flat products and strips. For this category, the carryover will occur on the 20th working day after the end of the quarter. At the same time, accumulated quota balances within the year do not carry over to the next year.
Preservation of Benefits for Ukrainian Steel
The UK authorities have separately emphasized that steel imports from Ukraine will continue to be exempt from tariff quotas. This decision is explained by the desire to support Ukraine amid the ongoing military aggression from Russia. The existing preferential trade conditions for steel between the two countries remain in effect and will not change.
“Regarding the exemption of steel of Ukrainian origin from the new tariff quota regime, DBT stated that this measure is a manifestation of support in light of the prolonged Russian invasion. In turn, the existing preferential tariff agreements for steel trade between the UK and Ukraine will remain in force.”
At the same time, importers, distributors, and consumers continue to express concerns about a significant reduction in tariff quotas, as they are set to decrease by 60% starting July 1. The quota volumes for individual countries and types of products have not yet been determined, but consultations with the market are ongoing.