Commission Implementing Regulation (EU) 2020/894
of 29 June 2020
amending Implementing Regulation (EU) 2019/159 imposing definitive safeguard measures against imports of certain steel products
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Whereas:
According to Article 8 of the definitive Regulation, the Commission may review the measures in case of change of circumstances during the period of imposition of the measures.
Due process took place under a two-stage written procedure. In the first stage, the Commission received around 90 submissions. In the second stage, interested parties were also allowed to rebut other parties’ initial submissions. The Commission received over 30 additional submissions.
The written phase of the proceeding ended on 18 March 2020, while the Union and other countries were imposing strict lockdowns and confinements to stop the spread of the COVID-19 pandemic.
In order to take into account in the framework of the Review the economic effects of this unexpected development resulting in a drastic change of circumstances in the functioning of the Union steel market and the current safeguard measures, on 30 April 2020 the Commission opened an additional and extraordinary period for interested parties to submit their views on the economic effects of the COVID-19 pandemic on the steel market.
Following an in-depth analysis of all the submissions received, the Commission arrived at the following conclusions. They are organized in six different sub-sections. The first concerns the economic effects of the COVID-19 pandemic (Section 3.1 below), the following five (Sections 3.2 to 3.6) corresponding to the five grounds of review identified in the Notice of Initiation of the second Review, namely: A) Level and allocation of TRQs; B) Crowding out of traditional trade flows; C) Potential detrimental effects in achieving the integration objectives pursued with preferential trading partners; D) Update of the list of developing WTO member countries excluded from the scope of the measures based on updated import statistics concerning 2019; and E) Other changes of circumstances that may require an adjustment to the level of allocation of the TRQ.
The Commission received about 200 submissions on the economic effects of the COVID-19 pandemic and its impact on the functioning of the current safeguard measures. The large majority of them were from exporters, importers, users and traders. Several exporting countries, as well as associations of the Union steel producers industry (‘the Union industry’) and downstream steel users also submitted comments.
A large majority of the comments strongly opposed the request made by the Union industry to drastically reduce the volume of TRQs. These comments indicated that this reduction of TRQs would not only constitute a de facto ban on imports in violation of WTO rules, but would also be contrary to the Union interest, since it would ignore the interest of the downstream markets where steel manufacturing activities would be very negatively impacted. Several parties also stressed that additional changes to the administration of TRQs would be totally unjustified and considered that the elimination of the carry-over mechanism of unused quotas from one quarter to another would make the measures more restrictive in violation of WTO rules. Many parties highlighted that the impact of the COVID-19 pandemic is still uncertain and difficult to predict, and will have different effects depending on the steel segment. Some parties therefore suggested to postpone any adjustments until there is clarity about the impact, and alerted that a reduction in the level of TRQs would compromise supply contracts already concluded.
When the Commission adopted the first package of adjustments to the Union steel safeguard measures in October 2019, the forecast for the steel industry indicated a decline in demand as the global economy was gradually slowing down. Apart from an adaptation of the liberalisation pace to this predicted slowdown of growth, the Commission also introduced several other adjustments aimed at preserving traditional trade flows and preventing that certain export origins crowded others out in the use of the TRQs available under the measures in a progressively deteriorating economic context.
It was unpredictable at that time that several months later, the COVID-19 pandemic would plunge the world economy into the most severe recession since the Global Financial Crisis of 2008. The strict controls decreed by the authorities all over the world to mitigate or suppress the disease since the outbreak of the pandemic during the first quarter of 2020 were taking a heavy toll. The economic effects of the lockdown and confinement measures have been immediate and harsh. The magnitude and sharpness of the economic shock has been very significant in terms of output, fixed investment, lay-offs, and demand.
Although since mid-May 2020 countries have started to implement exit strategies for the more stringent pandemic control measures, there are indeed still many uncertainties about the recovery. First, it is difficult to calibrate at this stage with clarity the depth of the damage caused to the national industries and the domestic and international supply chains. Second, it is not excluded that new virus waves appear later in the year, as controls are progressively eased, which could lead to successive reinstatements of lockdowns and confinement measures including in a stop and go sequence that could nip the recovery in the bud and cause more lasting damage.
In the light of the forgoing analysis, the Commission finds that the economic shock produced by the COVID-19 pandemic represents a fundamental and exceptional change in circumstances drastically impacting the functioning of the steel market within the Union and worldwide. For this reason, the Commission considers it necessary to carefully take into consideration the economic effects of the COVID-19 pandemic when shaping the adjustments under the second Review of the safeguard measures.
As previously explained, in the first Review of the safeguard measures, as a result of an already observed downturn in the steel market contrary to the expectations at the time of adopting the definitive measures, the Commission had introduced adjustments to remedy limited crowding-out effects observed during the first year of measures. However, those effects will be further exacerbated in the current economic context in the absence of adjustments.
Whereas the economic shock of the pandemic has been relatively symmetric, in that the pandemic has affected all countries in the world with sudden and very significant output and demand falls, the strength of the rebound in 2021 is likely to be asymmetric. This will depend not only on the evolution of the pandemic in every country, but also on the structure of the national economies and their capacity to respond with recovery policies.
This opportunistic behaviour of exporters from certain origins risks more than ever displacing other market participants and unduly occupy market shares that in normal circumstances would correspond to other traditional trade flow areas or to domestic production. This is a real risk, as exporters will desperately try to gain larger shares of a smaller market to make up for absolute sales losses due to depressed demand.
Apart from endangering the preservation of traditional trade flows in terms of origins, the above-mentioned opportunistic behaviour, unduly displacing traditional trade flows and domestic production, is also liable to causing very serious imbalances in the Union steel market, which could ultimately compromise the remedial effects of the original safeguard measures in terms of protection against a new sudden surge of imports.
In these circumstances, in order to guarantee an orderly return to the market of all suppliers, both domestic industry and exporters, and minimise undue opportunistic conduct, the Commission considers it necessary to introduce two general adjustments to the TRQs administration. The first one is to move to a quarterly, rather than yearly management of all country-specific quotas; this adjustment, whilst preserving the total volumes per product category, will ensure a more stable flow of imports and minimise the risk of undue import surge during the remaining duration of the measures. A second complementary adjustment is to introduce a refined regime for the access to the residual quota of countries benefiting from country-specific quota. This adjustment will ring-fence, where appropriate, the use of the residual quota for the incumbent smaller exporting countries falling within this global section of the TRQs, and will minimise the risk that they are crowded out by those exporters enjoying country-specific quotas. These two adjustments will be developed further below in Sections 3.2 and 3.3 respectively.
Most interested parties submitted comments on this aspect of this Review. Many of them, notably exporting producers, third-country governments, users, and importers requested either an increase in the level of TRQs or a different allocation system for the product categories of their concern. Those requests included the change of the reference period to calculate the TRQ levels to benefit from a higher quota. Some interested parties asked the Commission to change the basis for allocating a country-specific quota, by either increasing or decreasing the current 5 % threshold.
On the other end, the Union industry advocated for a number of adjustments in the opposite direction. Most notably, the Union industry requested that the TRQs are administered on a quarterly basis, and that the unused volumes in one quarter are not transferred to the next quarter. In the framework of the exceptional reopening of the written phase for receiving comments on the economic effects of the COVID-19 pandemic, the Union industry asked for the level of TRQs to be reduced up to 75 % to cater for the devastating economic effects of the pandemic. Many interested parties strongly opposed this request, arguing that it would be incompatible with WTO rules and unduly affect the downstream industry in the Union.
Against this background, the Commission considers that the TRQ levels in place did not unduly restrict trade flows during the second year of measures, but allowed a level of imports proportionate to the needs of the Union market.
In reaction to the requests for an increase of the TRQ levels, the Commission notes that the submissions made by interested parties did not show that demand in the Union steel market would increase in any such way so that actual TRQs create a shortfall of supply in the market. To the contrary, as described in detail in Section 3.1, the trend rather points to the opposite direction. Lastly, the Commission also notes that the reference period used to calculate the TRQs constitutes one of the pillars in the design of the measures set ab initio by the definitive Regulation, and that the scope of the Review does not cover the substantial modification of the basic structure of the measures. Rather, its objective is to assess whether any specific adjustments to the management of the TRQs are necessary. The Commission thus rejects those requests.
Notwithstanding the above, the Commission considers it necessary to introduce a series of adjustments and refinements to the management of the TRQs in order to adapt it to the evolution of the market and better ensure the functioning of the safeguard measures. Those adjustments are both horizontal in nature and specific to certain product categories.
The Review investigation showed that several exporting countries continued to have a very aggressive export behaviour in numerous product categories during the second year of measures. These countries exhausted several (or most) of their annual country-specific quotas abnormally quickly (in some cases just within a few months from the beginning of the period). A yearly country-specific quota was even exhausted on the very first day of the second year of measures.
This behaviour created in those product categories a situation whereby a disproportionally heavy influx of imports concentrated at a rather early stage of the yearly period. This influx subsequently slowed down until the beginning of the last quarter of the period, when a new peak of imports took place again, coinciding with the moment when countries benefitting from a country-specific quota are allowed to tap free of duty into the available residual TRQ. The Commission considers that this behaviour is causing important imbalances and prevents a smooth functioning of the market.
In the situation of extreme uncertainty, slump in demand and ensuing drastic reduction in sales affecting virtually all steel product categories described in detail in Section 3.1, the Commission considers very likely that the above-mentioned exclusionary exporting behaviour will be further exacerbated. Exporters, under these exceptional circumstances, will adopt a very aggressive and opportunistic behaviour vis-a-vis other competitors with a view to recovering lost sales. Under this opportunistic behaviour, it is reasonable to expect that exporters in the strongest exporting countries will try to frontload sales to ‘empty the market’. Such opportunistic commercial behaviour is the most important risk for the adequate functioning of the safeguard measures, as it would cause very serious disturbances in the market and, in the absence of remedial action, risks unduly displacing traditional trade flows and domestic production, thereby offsetting the effet utile of the safeguard measures in place.
Since the imposition of definitive measures, country-specific quotas have been administered on a yearly basis, that is to say, the whole underlying volumes were made available to exporters at the beginning of each annual period without time restrictions for their use within a given period, by contrast with the residual quotas that were administered quarterly. The introduction of time limitations appeared to be at the time an unnecessary and a cumbersome administrative burden interfering with the normal market functioning.
However, following the review investigation, the Commission considers that the current annual administration of the country specific quotas would not be effective in preventing the disturbances on the Union steel market identified above, which would be exacerbated by the expected opportunistic behaviour of some exporters. These disturbances would not only run counter to the interest of the majority of exporting countries, but would also very negatively affect the economic situation of the Union steel industry, thus undermining the effectiveness of the measures.
Accordingly, the Commission decided that the country-specific quotas be administered quarterly as well. This adjustment will ensure a more stable flow of imports and minimise the existing very high risk that the opportunistic conduct of exporters conflicts with the legitimate interest of other market participants throughout the next period of measures, i.e. 1 July 2020 to 30 June 2021.
This adjustment will have a positive stabilizing effect on the market, since it will avoid massive stockpiling at the beginning of a period, as it was already detected in the past in several product categories. The adjustment will allow those producers both in the Union and in third countries that have seen their ability to operate significantly restricted during the COVID-19 and which have been allowed to resume operations after the lockdowns comparatively later than others to compete in a more level playing field when demand recovers.
It should finally be mentioned that the Commission does not find any reasons to stop the carry-over of unused volumes of quarterly administered quotas from one quarter to the next within the same period. Maintaining the carry-over mechanism ensures that the TRQ use can adapt to the evolution of demand throughout the year, without unduly creating disturbances in the market.
As explained in recital 149 of the definitive Regulation and in recitals 17 to 19 of the first Review Regulation, this product category was subject to a global TRQ only. This was an exception to the otherwise preferred system, applied to almost all other product categories, of a combination of country-specific quotas for the largest historical suppliers with residual quotas for the rest.
With respect to this product category, several interested parties have requested to reduce the 30 % cap per country of origin to 20 %, while others have advocated for an elimination of the cap and restoring the situation preceding the first Review.
The Commission also notes that this substantial reduction in TRQ use took place in a period that was not yet affected by the shock of the COVID-19 pandemic. Thus, this strongly suggests that it is very unlikely that any future recovery of Union demand in the course of the third year of measures would be of such a magnitude so as to eventually reach a full or very high TRQ use in this product category.
Against this background, the Commission finds that the risk of potential shortage of supply it tried to prevent with the globalisation of the TRQ under the definitive measures does no longer exist in the current circumstances. Accordingly, the Commission decided to discontinue the exceptional global administration of the TRQ in this product category and apply the default system of combined country-specific and residual quota, which is in place for almost all other product categories.
Some interested parties asked the Commission to introduce a cap in the residual quota for this category. Other interested parties asked that the Commission transfer to the residual quota those volumes of country-specific quotas showing very low use level.
Therefore, the TRQ for product category 8 will become a global TRQ administered on a quarterly basis as from 1 July 2020.
The Commission recalls the rationale for globalizing this TRQ and refers to the explanations provided in recitals 54 to 59 of the first Review Regulation.
Certain interested parties requested changes in this category. In particular, parties have asked to revert to a system of combined country-specific and residual quotas. In addition, some parties have also requested to split this TRQ into two sub-categories to better address the specificities of the products grouped under this category.
The Commission notes that over 70 % of the total TRQ volume of this category corresponds to historical trade flows stemming from a number of product types mainly used in large engineering projects. By contrast, the actual use of the TRQ in this product category shows that certain countries are using it to export product types not used in large engineering projects increasingly well beyond their traditional trade volumes (in some cases with a tenfold increase) at the expense of other market players, domestic and exporting countries alike. Consequently, the Commission considers that the current system of the TRQ management has led to an undue crowding-out situation.
In the absence of an adjustment, should there be large engineering projects requiring specific tubes in the course of the third year of measures, they run the risk of not being able to procure all the volumes of TRQ that should correspond to these special tubes, as they would be crowded out by other imports.
The Commission considers that the split of the TRQ for this product category would reflect more accurately the historical import flows corresponding to the two sub-categories of tubes and, in this way, ensure a fairer functioning of the quota. The split will guarantee the availability of the necessary volumes for any large-scale engineering project in the Union during the remaining lifetime of the measures, which otherwise would have been crowded out by other product types. Such imbalance runs counter the Union interest and the objective to preserve under the safeguard measures as much as possible traditional trade flows in terms of volumes and origins.
In recital 8 of the end-use Regulation, the Commission noted that ‘[it] remains of the view that, in the Union interest, a specific mechanism, either the end-use procedure (once the implementation issues are resolved), or an alternative system, however set up, may be required at a later stage in order to ring-fence imports of automotive steel grades under product category 4B. These issues will accordingly, be re-assessed in the context of a future review investigation, based on the comments and proposals made by the interested parties, as well as other developments affecting this product category’.
Accordingly, the Commission has carefully analysed the comments received with regard to any proposal for a specific mechanism in this product category.
Interested parties submitting comments on this category generally agreed that it was important that the necessary import volumes of steel intended for automotive use were preserved. To this end, they submitted different requests. Some interested parties asked to identify the imported products for use in the automotive sector by means of a ‘self-declaration’ or to admit the release for free circulation only on production of a ‘document of entry’ issued by the competent authority designated by Member States and based on an application by an Union importer. Interested parties also asked to reallocate unused TRQ volumes from category 4A into category 4B and to introduce a 30 % cap in the last quarter of a period, to avoid that non-automotive grades continue using up part of the TRQ, thus displacing automotive grades. Lastly, some interested parties requested the Commission to devise an alternative system to the end-use, but serving the same purpose, and even to reinstate the end-use mechanism, while others frontally opposed having the end-use mechanism back in place.
First, the Commission remains of the view that it would be desirable to explore alternatives to ring-fence further, if feasible, the imports of automotive steel under category 4B. In this spirit, the Commission carefully assessed the proposals received and reached the following conclusions.
The implementation of the end-use mechanism did not work as expected, as described in detail in the end-use Regulation. The Commission did not see any evidence indicating that the circumstances that led to its revocation have changed, so that reintroducing such mechanism would be an effective solution. Consequently, the Commission has thus considered that reintroducing the end-use mechanism is not appropriate.
The Commission also notes that despite the possibility to provide observations on other parties’ comments, there was no proposal attracting a minimum level of support amongst the stakeholders concerned across Member States. The Commission recalls, drawing from the experience of the end-use mechanism, that in order to implement an alternative effective mechanism in this product category, it is fundamental that all the participants in the complex chain of supply to the automotive sector unequivocally commit to cooperate across Member States to make it viable. The Commission therefore finds that none of the alternative ring-fencing mechanism proposed appears to mobilise a majority of participants so as to have possibilities of success.
Accordingly, the Commission decided not to implement any new particular mechanism for this product category and avoid the very negative effects the lack of sufficient adherence could once more produce.
The Commission would like to highlight with satisfaction that obtaining the end-use authorization is feasible when there is an effective cooperation amongst all the relevant stakeholders. The Commission refers to the specific situation of an interested party that has received the end-use authorisation by the authorities of an EU Member State at the end of April 2020. Unfortunately, the Commission cannot implement in an effective manner a specific management of the TRQ that would only be applicable for one company.
Second, when looking into the use of the TRQ for category 4B, the Commission has observed a massive influx of imports entering the Union market upon the opening of the residual quota in the fourth quarter on 1 April 2020, which quickly exhausted the residual quota initially available. This situation resembles that of 1 July 2019, when the new quotas for the second year of measures were open and a yearly country-specific quota was exhausted within one day. In this respect, several interested parties continued to warn the Commission that most of these volumes would not be serving the Union automotive industry. With respect to those claims, the Commission notes that no other interested parties contested the submissions made in this regard. Moreover, the Commission recalls that it is conducting an anti-circumvention investigation on imports of this product category from the PRC based on sufficient evidence supporting the veracity of the claims that imports under category 4B may actually not correspond to this product category.
Accordingly, the Commission considers it necessary to introduce an adjustment to avoid that unusually large volumes of non-automotive types of category 4 continue unduly displacing the traditional supply flows to the EU automotive industry. This adjustment is developed in Section 3.2.3 below.
In the framework of the present Review, many interested parties submitted comments and proposals to address the alleged crowding out effects that would be taking place in numerous product categories. Some parties requested the imposition of caps on certain product categories to those countries accessing the residual quotas in the last quarter. Some parties also requested to reduce the existing cap levels in two product categories, and to eliminate altogether the possibility of countries accessing the residual quota in the last quarter of a period. In the same vein, other parties suggested to impose a cap for the use of quotas (country-specific or residual) by a specific country and to allow access to the residual quota only with respect to the unused carryover volumes transferred from the previous quarter.
On the opposite side, other parties asked to eliminate the caps and allow unrestricted access in the last quarter, or at the very least, maintain the status quo. Furthermore, some parties requested that countries benefitting from a country-specific quota should be allowed to access the residual quotas immediately, as soon as the former is exhausted, without awaiting to the last quarter of a period.
Based on the above-mentioned comparison, the Commission has reached the conclusion that the access to the residual quota in the fourth quarter of a period cannot continue being the default regime, because it is causing undue crowding out effects to different extents in several product categories. Instead, the access to the residual quota in the last quarter of a period should be allowed, or not, on the basis of the actual typical use by the incumbent beneficiaries of the residual quota, as described in the preceding recital.
In order to shape the access regime to the residual quota in the fourth quarter of a period in an effective and proportionate way, the Commission considers it appropriate that the adjustments apply only to those product categories where negative crowding-out effects have been identified. In this spirit, the Commission has devised three different regimes corresponding to three different access regimes to the residual quota for all the product categories. These three regimes depend on the degree of crowding out effects observed, except for categories 1, 4B, 8 and 25A, which have their proper TRQ administration regime (see, respectively, Section 3.2.2.a and Section 3.2.3.d, Section 3.2.2.d and Section 3.2.3.d, and Section 3.2.2.c and Section 3.2.3.d).
The approach described above cannot be applied, for different reasons, to product categories 1, 4B, 8 and 25A.
Since the imposition of definitive measures and up to the enforcement of the new adjustment under this Review, product category 1 was subject to a system of global TRQ. This prevents the type of crowding out analysis carried out for the product categories under a) to c) above.
Nevertheless, under the first Review Regulation, the Commission had decided that a 30 % cap per quarter allowed preserving as much as possible traditional trade volumes in both volume and origin terms. On the same grounds, the Commission considers that the maintenance of the 30 % cap of the initially available residual quota at the beginning of the fourth quarter continues being the best appropriate means to prevent that the countries that will benefit from country specific quota in this category after the individual adjustment decided under this Review crowd out the incumbents of the newly created residual quota.
Regarding product Category 4B, the end-use mechanism was in place across two quarters: October-December 2019 and partially during January-March 2020. Since the imposition of this mechanism, exporting countries encountered serious obstacles to export to the Union. Consequently, the level of imports was abnormally low. The Commission thus does not have the same longer data set to carry out the crowding out assessment as for the product categories under a) to c) above.
Nevertheless, the data available from the fourth quarter of 2019 and of 2020 unequivocally show that some crowding out effects are taking place. In fact, early into both quarters, virtually the full amount of the residual quota was used by only one exporting country benefitting from a country-specific quota. Therefore, to prevent undue crowding out effects and preserve historical trade flows in terms of origins, the Commission considers it appropriate to introduce a 30 % cap in this category by reference to the amount initially available at the beginning of the fourth quarter for the access of countries benefiting from exhausted country-specific quotas.
Lastly, since categories 8 and 25A will consist as of 1 July 2020 of a global TRQ only, this system does not apply to them.
In the definitive Regulation, the Commission committed to assessing whether the functioning of the steel safeguard measures causes any substantial risk to the stabilization or economic development of certain preferential trading partners to an extent that would be detrimental to the integration objectives of their agreements with the Union. In the first Review Regulation, the Commission concluded that the safeguard measures did not cause a detrimental effect in achieving the integration objectives. The same Regulation also established in recital 106 thereof that ‘[the] countries’ ability to export to the EU was not unduly limited by the measures’.
Several interested parties, in particular third country governments, submitted comments under this section of the Notice of Initiation. Certain countries asked to be exempted from the measures or to receive a preferential treatment. In this respect, there were requests to exempt the Western Balkans from the safeguard measures, as these could affect the development of their steel industry and thereby causing a significant negative impact to their domestic economies that could compromise the objectives set out in the Stabilisation and Association Agreements (‘SAA’) signed with the Union. Furthermore, these interested parties argued that the safeguard measures would be causing a reduction in their exports to the Union, when compared to the period prior to the imposition of measures. Exporters would thus be considering temporary shutdowns of certain facilities and unpaid leave for large numbers of employees. Some countries referred to the fact that they are effectively abiding by Union State Aid rules on the steel industry and, hence, this should grant them unrestricted access free-of-duty to the Union market. Other requests for exemption or preferential treatment, affecting several third countries, were based on different provisions of the relevant bilateral agreements with the Union.
In the first place, the Commission recalls the reasoning it developed in the first Review Regulation that all bilateral agreements referred to by interested parties under this section allow the imposition of safeguard measures such as the current ones. Therefore, the Commission is under no legal obligation to exempt them from the measures. Secondly, as per Article 2 of the WTO Agreement on Safeguards, safeguard measures shall be applied to the product under investigation being imported irrespective of source. As already noted in the first review Regulation the ‘only exceptions to these rules concern the specific situation of certain developing country members, or –as the case may be– obligations deriving from bilateral agreements’. Therefore, the Commission maintains its position that there are no legal grounds to exclude any of these countries from the safeguard measures.
As noted in recital 99 of the first Review Regulation, the commitment to reviewing the measures regarding the specific aspects described in recital 90, referred in particular to countries with which the Commission had concluded an SAA.
With regard to these countries, the Commission has first carried out a backward-looking assessment of their export performance during the second year of measures, i.e. since 1 July 2019. This analysis shows that in those product categories where these countries benefit from a country-specific quota, they generally still had unused volumes available under their dedicated quota in the last quarter of the period. Moreover, for those product categories where they may have subsequently exhausted their country-specific quota, in the majority of the cases, including categories identified by some of these countries as critical for their industries, there were significant volumes still available under the residual quota. This means that they generally had the possibility to continue exporting beyond their historical levels in their most relevant product categories. For those product categories where, instead, these countries were subject to the residual quota, the analysis of the data did not show that the system of TRQs was overall limiting their ability to export. In fact, in certain cases, countries did de facto not encounter any limitation whatsoever under the measures to exceed their historical level of exports.
The Commission has therefore concluded that the level of TRQs was adequate and proportionate to preserve traditional trade flows and that there was no evidence of substantial increase in Union demand or a change of circumstances of any other kind justifying a change in that level without affecting the effectiveness of the current measures.
The Commission has also undertaken a forward-looking analysis and looked into how the adjustments included in this Regulation could potentially affect the stabilization or economic development of the Western Balkan countries. In carrying out this assessment, the Commission has taken into consideration the current market situation and outlooks for the near future as described in Section 3.1 above.
Against this background, the Commission finds that neither the safeguard measures have caused, nor could they produce after their adjustment, any substantial risk to the stabilisation or economic development of the Western Balkan countries.
The Commission finally notes that the claims made by these interested parties in their submissions failed to furnish any evidence showing, or providing any relevant indication, of such a risk.
Accordingly, based on the above assessment and lacking any other evidence to the contrary, the Commission cannot but dismiss the claims made under this Section.
Following the adoption of definitive safeguard measures by Regulation (EU) 2019/159, the Commission committed to reviewing, on a regular basis, the list of developing countries potentially excluded from the scope of the measures based on updated import statistics.
In the submissions received, some interested parties requested to be excluded from the measures, as a certain country would no longer exceed the 3 % threshold in a given product category. Other parties asked to make certain country subject to the measures, as it would have exceeded the 3 % threshold in a given product category. Certain interested parties asked to be excluded in a given product category, as individually, a country would be below 3 % even if the overall weight of countries in such situation would exceed a 9 % import share. Lastly, other parties considered it more appropriate to conduct the calculation based on all twenty-six product categories together.
In accordance with Article 18 of Regulation (EU) 2015/478 and the international obligations of the Union, namely Article 9.1 of the WTO Agreement on Safeguards, ‘safeguard measures should not apply to any product originating in a developing country member of the WTO as long as its share of imports of that product into the Union does not exceed 3 %, provided that developing country members of the WTO with less than a 3 % import share collectively account for not more than 9 % of total Union imports of the product concerned’. Moreover, it is in the Union interest to adapt the list of developing countries excluded from the scope of the measures to avoid that certain developing countries unjustifiably benefit from the original exclusion.
Brazil is included in product category 3A, as its import share in this category reached 23 % in 2019;
North Macedonia is included in product category 12, as its import share in this category reached 3,54 % in 2019;
Tunisia is included in product category 4A, as its import share in this category reached 4,88 % in 2019;
Turkey is included in product category 6, as its import share in this category reached 9,77 % in 2019;
United Arab Emirates is included in product category 21, as its import share in this category reached 3,28 % in 2019;
Vietnam is included in product category 5, as its import share in this category reached 4,87 % in 2019.
The Commission then assessed whether, for the above categories, the developing countries concerned would qualify for a country-specific quota. To this end, the Commission assessed whether in the period 2015-2017, the imports of these categories by the countries concerned amounted at least to 5 % of the total imports in that period in any category. The result showed that none of them qualified for a country-specific quota. Therefore, all of these countries will fall under the residual quota in the respective product categories.
Brazil is excluded from product categories 1, 6 and 7, where its import shares in 2019 amounted to 1,53 %, 1,55 % and 2,25 % respectively;
Egypt is excluded in product category 1 where its import shares in 2019 amounted to 1,75 %;
Vietnam is excluded in product category 4A, where its import shares in 2019 amounted to 1,23 %.
Following this re-calculation the Commission updated the list of exclusions based on the updated import figures for each of the 26 product categories subject to measures (the full updated list is enclosed in Annex I).
Under this review ground, the Commission received very diverse request types. The main topic was the level of liberalisation. In view of the decline in demand, the Union industry advocated for a reduction of the current 3 % and even its full elimination. On the other end, other interested parties claimed that the level of liberalisation defined by the first review Regulation should be either maintained, or even increased, whether for all product categories or for some specific product categories and/or specific origins.
The WTO Agreement on Safeguards provides in Article 7(4) that, ‘in order to facilitate adjustment in a situation where the expected duration of a safeguard measure as notified under the provisions of paragraph 1 of Article 12 is over one year, the Member applying the measure shall progressively liberalize it at regular intervals during the period of application’.
In this respect, in the first Review Regulation the Commission introduced a 3 % liberalisation level effective for the second year of the measures. In that Regulation, it also established that the same level of liberalisation should apply in the third year of measures, i.e. as from 1 July 2020. The Commission analysed whether any change upwards to the current level was justified.
As explained in detail in Section 3.1, virtually all sources point to a clear decrease in the economic activity in the year 2020-21 with respect to the previous years. In this respect, the Commission notes that the demand for steel largely follows the macroeconomic trends, e.g. GDP growth, of a country or economic region. Moreover, the Commission recalls the fact that significant amounts of TRQs were not used during the first year of measures and even higher volumes will very likely again remain unused at the end of the second. Therefore, in view of the current economic outlooks for the period 2020-21, the consistent significant amount of TRQs available across product categories, and the absence of any solid evidence on file pointing to any need for an increase of TRQs, the Commission cannot but reject all claims requesting an increase of the liberalisation pace.
On the other hand, the Commission examined next the requests to reduce or eliminate the current level of liberalisation. The Commission considers that the wording of Article 7(4) of the WTO Agreement on Safeguards clearly binds an investigating authority to at least, preserve a liberalisation level, once it has been effectively implemented on the second year of the measures. Accordingly, for the third year of measures starting on 1 July 2020, the Commission considers that the level of liberalisation cannot be reduced below the one that was effectively in place at the end of year 2, i.e. 3 %. Therefore, the Commission rejects the requests for a reduction of the liberalisation level.
In view of the above findings, the liberalisation level is thus maintained at a level of 3 % for each product category.
Several interested parties informed the Commission about alleged practices aiming at avoiding the payment of the 25 % out-of-quota duty. These alleged circumvention or misdeclaration practices would take different forms and concern several product categories.
The Commission takes note of these claims and commits to analysing them further with a view to taking any necessary remedial actions if the alleged practices are confirmed. In any event, the Commission recalls that customs legislation continues to be fully applicable to address those allegations.
Some interested parties asked to have a split of certain categories. In support of these claims some parties claimed that in some cases both standard and high-end product types were competing under the same TRQ and that the Commission should ensure that the right mix between the two was preserved, avoiding crowding out effects.
In this respect, the Commission highlights that, following those requests, it has carried out under this second Review a very in-depth analysis of potential crowding out effects and introduced the refined adjustments described in Section 3.2.3 above to remedy them. The Commission notes that these adjustments would allow catering for many of these requests, as they will ensure that those countries supplying small amounts of high-end product types, which usually fall under the residual quota, can have a more secured access to the volumes available. Moreover, the Commission recalls that the design of the measures must strike a difficult balance between ensuring to the extent possible the preservation of traditional trade flows in terms of volumes and origins and maintaining a set of measures that the national customs authorities of Union Member States can effectively implement. The Commission considers that if a proliferation of product subcategories emerged, the implementation of the measures would risk becoming overly burdensome and undermining an effective administration of the TRQs.
Some requests for a split referred specifically to the fact that certain product types were used by the automotive sector and, hence, they should receive a treatment similar of those under product category 4B. However, the Commission notes in this regard that such requests went largely ignored in the written stage by the automotive industry itself, thus casting reasonable doubts on the Union interest of adopting such adjustment.
Therefore, the Commission concludes that the submissions received in this respect, with the exception of that of product category 25 mentioned before in recitals 55 to 62, failed to provide sufficient evidence in support of the claims, or to prove their feasibility to be implemented by the customs authorities without being unduly burdensome or to show how such adjustment would be in the overall Union interest.
Some interested parties requested the Commission to include certain product categories within the scope of the measures, while others claimed that certain categories should be excluded.
The Commission refers to its finding in recital 163 of the first Review Regulation, where it established that the scope of the review does not cover a change in the product scope. Therefore, these requests are rejected.
Some parties also insisted that the measures in place did not meet the standards of the WTO Agreement on Safeguards and, hence, that they should be terminated.
The Commission refers to recital 165 of the first Review Regulation and the references made therein, and thus rejects these claims.
Other interested parties proposed that TRQs were administered through a licensing system.
In this respect, the Commission reiterates that any system of TRQ administration needs to ensure that its implementation is not overly burdensome for the customs authorities to a point where it would risk undermining its effective application. The Commission remains of the view that the system of TRQ administration it put in place by the definitive Regulation is the most appropriate to strike an appropriate balance.
Lastly, several parties inquired about the impact and any possible adjustments related to the withdrawal of the United Kingdom from the Union (‘Brexit’).
The Commission notes that, at the time of the adoption the adjustments, the transition period of the withdrawal of the United Kingdom from the Union is still in place as the future agreement between the European Union and the United Kingdom is being negotiated. If necessary, the Commission will re-examine promptly the situation in view of any developments concerning this matter.
Finally, the Commission notes that the present review amending the ongoing safeguard measures also complies with the obligations arising from the bilateral Agreements signed with certain third countries.
Finally, the Commission considers that, based on the Union interest, it may have to adjust the level or allocation of the tariff-rate quota as set out in Annex II for the period starting on 1 July 2020 in case of changes of circumstances during the period of imposition of the measures. The changed circumstances could, for example, materialise in the case of an overall increase or contraction in Union demand for some product categories that would require a reassessment of the level of the tariff-rate quota, the imposition of anti-dumping or anti-subsidy measures that may significantly affect future import developments, or even any development concerning the US Section 232 that may have a direct impact on the conclusions of this investigation, namely in terms of trade diversion. The Commission may also review whether the operation of the measures could have detrimental effects in achieving the integration objectives pursued with preferential trading partners, such as substantially risking their stabilisation or economic development.
The measures provided for in this Regulation are in accordance with the opinion of the Committee on Safeguards established under Article 3(3) of Regulation (EU) 2015/478 and Article 22(3) of Regulation (EU) 2015/755 respectively,
HAS ADOPTED THIS REGULATION:
Article 1
Regulation (EU) 2019/159 is amended as follows:
- (1)
Article 1 is amended as follows:
- (a)
paragraphs 2 and 3 are replaced by the following:
‘2.
For each of the product categories concerned, and with the exception of product categories 8 and 25a, a part of each tariff-rate quota is allocated to the countries specified in Annex IV.
3.
The remaining part of each tariff-rate quota, as well as the tariff-rate quota for product categories 8 and 25, shall be allocated on a first-come-first-served basis, based on a tariff-rate quota established equally for each quarter of the period of imposition.’;
- (b)
paragraph 5 is replaced by the following:
‘5.
Where the relevant tariff-rate quota under paragraph 2 is exhausted for one specific country, imports from that country for some product categories can be made under the remaining part of the tariff-rate quota for the same product category. This provision shall only apply during the last quarter of each year of application of the definitive tariff-rate quota. For product categories 5, 16, 20 and 27 no further access to the remaining part of the tariff-rate quota will be allowed. For product categories 10, 12, 13, 14, 15, 21, 22 and 28 only access to a specific volume within the tariff-rate quota volume initially available in the last quarter, will be allowed. In product categories 1 and 4B no exporting country shall be allowed to use, on its own, more than 30 % of the residual tariff-rate quota volume initially available in the last quarter of each year of application of measures. For product categories 2, 3A, 3B, 4A, 6, 7, 9, 17, 18, 19, 24, 25b and 26 the access will be allowed over the total tariff-rate quota volume initially available in the last quarter in the respective product categories’;
- (a)
- (2)
the Annexes are amended as follows:
- (a)
Annex III.2 is replaced by Annex I to this Regulation;
- (b)
Annex IV is replaced by Annex II to this Regulation.
- (a)
Article 2
During the period set out in Annex II for the period starting on 1 July 2020 the Commission may review the measures in case of change of circumstances.
Article 3
This Regulation shall enter into force on 1 July 2020.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 29 June 2020.
For the Commission
The President
Ursula von der Leyen
ANNEX I
‘ANNEX III.2III.2 – List of product categories originating in developing countries to which the definitive measures apply
Country / Product group
1
2
3A
3B
4A
4B
5
6
7
8
9
10
12
13
14
15
16
17
18
19
20
21
22
24
25
26
27
28
Brazil
X
X
X
China
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
India
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Indonesia
X
X
X
X
Malaysia
X
X
Mexico
X
Moldova
X
X
X
North Macedonia
X
X
X
X
X
X
Thailand
X
X
Tunisia
X
X
Turkey
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Ukraine
X
X
X
X
X
X
X
X
X
X
X
X
United Arab Emirates
X
X
X
X
X
X
Vietnam
X
X
X
X
All other developing countries
X’
ANNEX II
‘ANNEX IV
IV.1 – Volumes of tariff–rate quotas
Product Number
Product category
CN Codes
Allocation by country (Where Applicable)
From 2.2.2019 to 30.6.2019
From 1.7.2019 to 30.6.2020
From 1.7.2020 to 30.9.2020
From 1.10.2020 to 31.12.2020
From 1.1.2021 to 31.3.2021
From 1.4.2021 to 30.6.2021
Additional duty rate
Order numbers
Volume of tariff quota (net tonnes)
Volume of tariff quota (net tonnes)
Volume of tariff quota (net tonnes)
1
Non Alloy and Other Alloy Hot Rolled Sheets and Strips
7208 10 00, 7208 25 00, 7208 26 00, 7208 27 00, 7208 36 00, 7208 37 00, 7208 38 00, 7208 39 00, 7208 40 00, 7208 52 10, 7208 52 99, 7208 53 10, 7208 53 90, 7208 54 00,
7211 13 00, 7211 14 00, 7211 19 00, 7212 60 00, 7225 19 10, 7225 30 10, 7225 30 30, 7225 30 90, 7225 40 15, 7225 40 90, 7226 19 10, 7226 91 20, 7226 91 91, 7226 91 99
Third countries
3 359 532,08
8 476 618,01
25 %
Russia
421 690,19
421 690,19
412 523,02
417 106,6
25 %
09.8966
Turkey
344 890,78
344 890,78
337 393,15
341 141,97
25 %
09.8967
India
168 367,79
168 367,79
164 707,62
166 537,71
25 %
09.8968
Korea (Republic of)
135 958,47
135 958,47
133 002,85
134 480,66
25 %
09.8969
Serbia
116 149,87
116 149,87
113 624,87
114 887,37
25 %
09.8970
Other countries
1 013 612,28
1 013 612,28
991 577,22
1 002 594,76
25 %
2
Non Alloy and Other Alloy Cold Rolled Sheets
7209 15 00, 7209 16 90, 7209 17 90, 7209 18 91, 7209 25 00, 7209 26 90, 7209 27 90, 7209 28 90, 7209 90 20, 7209 90 80, 7211 23 20, 7211 23 30, 7211 23 80, 7211 29 00, 7211 90 20, 7211 90 80, 7225 50 20, 7225 50 80, 7226 20 00, 7226 92 00
India
234 714,39
592 220,64
153 750,21
153 750,21
150 407,82
152 079,02
25 %
09.8801
Korea (Republic of)
144 402,99
364 351,04
94 591,52
94 591,52
92 535,18
93 563,35
25 %
09.8802
Ukraine
102 325,83
258 183,86
67 028,78
67 028,78
65 571,63
66 300,2
25 %
09.8803
Brazil
65 398,61
165 010,8
42 839,52
42 839,52
41 908,22
42 373,87
25 %
09.8804
Serbia
56 480,21
142 508,28
36 997,49
36 997,49
36 193,2
36 595,35
25 %
09.8805
Other countries
430 048,96
1 085 079,91
281 704,58
281 704,58
275 580,57
278 642,58
25 %
3.A
Electrical Sheets (other than GOES)
7209 16 10, 7209 17 10, 7209 18 10, 7209 26 10, 7209 27 10, 7209 28 10
Korea (Republic of)
1 923,96
4 854,46
1 260,3
1 260,3
1 232,9
1 246,6
25 %
09.8806
China
822,98
2 076,52
25 %
09.8807
Russia
519,69
1 311,25
340,42
340,42
333,02
336,72
25 %
09.8808
Iran (Islamic Republic of)
227,52
574,06
149,04
149,04
145,80
147,42
25 %
09.8809
Other countries
306,34
772,95
739,77
739,77
723,69
731,73
25 %
3.B
7225 19 90, 7226 19 80
Russia
51 426,29
129 756,46
33 686,91
33 686,91
32 954,59
33 320,75
25 %
09.8811
Korea (Republic of)
31 380,4
79 177,59
20 555,8
20 555,8
20 108,94
20 332,37
25 %
09.8812
China
24 187,01
61 027,57
15 843,76
15 843,76
15 499,33
15 671,54
25 %
09.8813
Taiwan
18 144,97
45 782,56
11 885,91
11 885,91
11 627,52
11 756,71
25 %
09.8814
Other countries
8 395,39
21 182,87
5 499,42
5 499,42
5 379,87
5 439,65
25 %
4.A50Metallic Coated Sheets
TARIC Codes:
7210 41 00 20, 7210 49 00 20,
7210 61 00 20, 7210 69 00 20,
7212 30 00 20, 7212 50 61 20,
7212 50 69 20, 7225 92 00 20,
7225 99 00 11, 7225 99 00 22,
7225 99 00 45, 7225 99 00 91,
7225 99 00 92, 7226 99 30 10,
7226 99 70 11, 7226 99 70 91,
7226 99 70 94,
Korea (Republic of)
69 571,1
328 792,63
45 572,71
45 572,71
44 582,0
45 077,36
25 %
09.8816
India
83 060,42
209 574,26
54 408,92
54 408,92
53 226,12
53 817,52
25 %
09.8817
Other countries
761 518,93
1 921 429,81
498 834,77
498 834,77
487 990,53
493 412,65
25 %
4.B52CN Codes:
7210 20 00, 7210 30 00, 7210 90 80, 7212 20 00, 7212 50 20, 7212 50 30, 7212 50 40, 7212 50 90, 7225 91 00, 7226 99 10
TARIC codes:
7210 41 00 30, 7210 41 00 80, 7210 49 00 30, 7210 49 00 80, 7210 61 00 30,
7210 61 00 80, 7210 69 00 30, 7210 69 00 80,
7212 30 00 80, 7212 50 61 30, 7212 50 61 80, 7212 50 69 30,
7212 50 69 80, 7225 92 00 80,
7225 99 00 23, 7225 99 00 41, 7225 99 00 93, 7225 99 00 95,
7226 99 30 90, 7226 99 70 19,
7226 99 70 96, 7225 99 00 41
China
204 951,07
517 123,19
134 253,68
134 253,68
131 335,12
132 794,4
25 %
09.8821
Korea (Republic of)
249 533,26
476 356,93
163 457,35
163 457,35
159 903,93
161 680,64
25 %
09.8822
India
118 594,25
299 231,59
77 685,44
77 685,44
75 996,63
76 841,03
25 %
09.8823
Taiwan
49 248,78
124 262,26
32 260,53
32 260,53
31 559,21
31 909,87
25 %
09.8824
Other countries
125 598,05
316 903,26
82 273,3
82 273,3
80 484,75
81 379,02
25 %
5
Organic Coated Sheets
7210 70 80, 7212 40 80
India
108 042,36
272 607,54
70 773,4
70 773,4
69 234,85
70 004,12
25 %
09.8826
Korea (Republic of)
103 354,11
260 778,38
67 702,35
67 702,35
66 230,56
66 966,46
25 %
09.8827
Taiwan
31 975,79
80 679,86
20 945,82
20 945,82
20 490,48
20 718,15
25 %
09.8828
Turkey
21 834,45
55 091,68
14 302,71
14 302,71
13 991,78
14 147,24
25 %
09.8829
North Macedonia
16 331,15
41 206,02
10 697,76
10 697,76
10 465,2
10 581,48
25 %
09.8830
Other countries
43 114,71
108 785,06
28 242,39
28 242,39
27 628,42
27 935,41
25 %
6
Tin Mill products
7209 18 99, 7210 11 00, 7210 12 20, 7210 12 80, 7210 50 00, 7210 70 10, 7210 90 40, 7212 10 10, 7212 10 90, 7212 40 20
China
158 139,17
399 009,55
103 589,44
103 589,44
101 337,49
102 463,47
25 %
09.8831
Serbia
30 545,88
77 071,98
20 009,15
20 009,15
19 574,17
19 791,66
25 %
09.8832
Korea (Republic of)
23 885,7
60 267,31
15 646,38
15 646,38
15 306,25
15 476,31
25 %
09.8833
Taiwan
21 167,0
53 407,61
13 865,49
13 865,49
13 564,07
13 714,78
25 %
09.8834
Brazil
19 730,03
49 781,91
25 %
09.8835
Other countries
33 167,3
83 686,22
34 650,52
34 650,52
33 897,25
34 273,88
25 %
7
Non Alloy and Other Alloy Quarto Plates
7208 51 20, 7208 51 91, 7208 51 98, 7208 52 91, 7208 90 20, 7208 90 80, 7210 90 30, 7225 40 12, 7225 40 40, 7225 40 60,
Ukraine
339 678,24
857 060,63
222 507,03
222 507,03
217 669,92
220 088,47
25 %
09.8836
Korea (Republic of)
140 011,38
353 270,32
91 714,78
91 714,78
89 720,98
90 717,88
25 %
09.8837
Russia
115 485,12
291 386,78
75 648,8
75 648,8
74 004,26
74 826,53
25 %
09.8838
India
74 811,09
188 759,93
49 005,18
49 005,18
47 939,85
48 472,51
25 %
09.8839
Other countries
466 980,8
1 178 264,65
305 896,87
305 896,87
299 246,94
302 571,91
25 %
8
Stainless Hot Rolled Sheets and Strips
7219 11 00, 7219 12 10, 7219 12 90, 7219 13 10, 7219 13 90, 7219 14 10, 7219 14 90, 7219 22 10, 7219 22 90, 7219 23 00, 7219 24 00, 7220 11 00, 7220 12 00
Third countries
91 870,53
91 870,53
89 873,34
90 871,93
25 %
China
87 328,82
220 344,09
25 %
Korea (Republic of)
18 082,33
45 624,52
25 %
Taiwan
12 831,07
32 374,77
25 %
United States of America
11 810,3
29 799,22
25 %
Other countries
10 196,61
25 727,62
25 %
9
Stainless Cold Rolled Sheets and Strips
7219 31 00, 7219 32 10, 7219 32 90, 7219 33 10, 7219 33 90, 7219 34 10, 7219 34 90, 7219 35 10, 7219 35 90, 7219 90 20, 7219 90 80, 7220 20 21, 7220 20 29, 7220 20 41, 7220 20 49, 7220 20 81, 7220 20 89, 7220 90 20, 7220 90 80
Korea (Republic of)
70 813,18
178 672,6
46 386,34
46 386,34
45 377,94
45 882,14
25 %
09.8846
Taiwan
65 579,14
165 466,29
42 957,77
42 957,77
42 023,9
42 490,84
25 %
09.8847
India
42 720,54
107 790,51
27 984,19
27 984,19
27 375,84
27 680,01
25 %
09.8848
United States of America
35 609,52
89 848,32
23 326,1
23 326,1
22 819,01
23 072,56
25 %
09.8849
Turkey
29 310,69
73 955,39
19 200,03
19 200,03
18 782,64
18 991,34
25 %
09.8850
Malaysia
19 799,24
49 956,54
12 969,54
12 969,54
12 687,59
12 828,57
25 %
09.8851
Vietnam
16 832,28
42 470,43
11 026,02
11 026,02
10 786,33
10 906,17
25 %
09.8852
Other countries
50 746,86
128 042,17
33 241,85
33 241,85
32 519,2
32 880,53
25 %
10
Stainless Hot Rolled Quarto Plates
7219 21 10, 7219 21 90
China
6 765,5
17 070,4
4 431,76
4 431,76
4 335,41
4 383,58
25 %
09.8856
India
2 860,33
7 217,07
1 873,67
1 873,67
1 832,94
1 853,3
25 %
09.8857
Taiwan
1 119,34
2 824,27
733,23
733,23
717,29
725,26
25 %
09.8858
Other countries
1 440,07
3 633,52
943,32
943,32
922,81
933,07
25 %
12
Non Alloy and Other Alloy Merchant Bars and Light Sections
7214 30 00, 7214 91 10, 7214 91 90, 7214 99 31, 7214 99 39, 7214 99 50, 7214 99 71, 7214 99 79, 7214 99 95, 7215 90 00, 7216 10 00, 7216 21 00, 7216 22 00, 7216 40 10, 7216 40 90, 7216 50 10, 7216 50 91, 7216 50 99, 7216 99 00, 7228 10 20, 7228 20 10, 7228 20 91, 7228 30 20, 7228 30 41, 7228 30 49, 7228 30 61, 7228 30 69, 7228 30 70, 7228 30 89, 7228 60 20, 7228 60 80, 7228 70 10, 7228 70 90, 7228 80 00
China
166 217,87
419 393,33
108 881,4
108 881,4
106 514,42
107 697,91
25 %
09.8861
Turkey
114 807,87
289 677,97
75 205,16
75 205,16
73 570,27
74 387,72
25 %
09.8862
Russia
94 792,44
239 175,96
62 094,01
62 094,01
60 744,14
61 419,08
25 %
09.8863
Switzerland
73 380,52
185 150,38
48 068,08
48 068,08
47 023,13
47 545,6
25 %
09.8864
Belarus
57 907,73
146 110,15
37 932,6
37 932,6
37 107,97
37 520,28
25 %
09.8865
Other countries
76 245,19
192 378,37
49 944,59
49 944,59
48 858,84
49 401,71
25 %
13
Rebars
7214 20 00, 7214 99 10
Turkey
117 231,8
295 793,93
76 792,97
76 792,97
75 123,55
75 958,26
25 %
09.8866
Russia
94 084,2
237 388,96
61 630,08
61 630,08
60 290,29
60 960,18
25 %
09.8867
Ukraine
62 534,65
157 784,58
40 963,47
40 963,47
40 072,96
40 518,21
25 %
09.8868
Bosnia and Herzegovina
39 356,1
99 301,53
25 780,31
25 780,31
25 219,87
25 500,09
25 %
09.8869
Moldova
28 284,59
71 366,38
18 527,89
18 527,89
18 125,11
18 326,5
25 %
09.8870
Other countries
217 775,5
549 481,2
142 654,35
142 654,35
139 553,17
141 103,76
14
Stainless Bars and Light Sections
7222 11 11, 7222 11 19, 7222 11 81, 7222 11 89, 7222 19 10, 7222 19 90, 7222 20 11, 7222 20 19, 7222 20 21, 7222 20 29, 7222 20 31, 7222 20 39, 7222 20 81, 7222 20 89, 7222 30 51, 7222 30 91, 7222 30 97, 7222 40 10, 7222 40 50, 7222 40 90
India
44 433,0
112 111,32
29 105,94
29 105,94
28 473,2
28 789,57
25 %
09.8871
Switzerland
6 502,75
16 407,44
4 259,64
4 259,64
4 167,04
4 213,34
25 %
09.8872
Ukraine
5 733,5
14 466,5
3 755,74
3 755,74
3 674,1
3 714,92
25 %
09.8873
Other countries
8 533,24
21 530,68
5 589,72
5 589,72
5 468,2
5 528,96
25 %
15
Stainless Wire Rod
7221 00 10, 7221 00 90
India
10 135,23
25 572,75
6 639,11
6 639,11
6 494,78
6 566,94
25 %
09.8876
Taiwan
6 619,68
16 702,47
4 336,24
4 336,24
4 241,97
4 289,1
25 %
09.8877
Korea (Republic of)
3 300,07
8 326,58
2 161,72
2 161,72
2 114,72
2 138,22
25 %
09.8878
China
2 216,86
5 593,48
1 452,16
1 452,16
1 420,59
1 436,38
25 %
09.8879
Japan
2 190,4
5 526,72
1 434,83
1 434,83
1 403,63
1 419,23
25 %
09.8880
Other countries
1 144,43
2 887,57
749,66
749,66
733,36
741,51
25 %
16
Non Alloy and Other Alloy Wire Rod
7213 10 00, 7213 20 00, 7213 91 10, 7213 91 20, 7213 91 41, 7213 91 49, 7213 91 70, 7213 91 90, 7213 99 10, 7213 99 90, 7227 10 00, 7227 20 00, 7227 90 10, 7227 90 50, 7227 90 95
Ukraine
149 009,1
375 972,95
97 608,76
97 608,76
95 486,83
96 547,79
25 %
09.8881
Switzerland
141 995,22
358 275,86
93 014,3
93 014,3
90 992,25
92 003,28
25 %
09.8882
Russia
122 883,63
310 054,37
80 495,21
80 495,21
78 745,32
79 620,26
25 %
09.8883
Turkey
121 331,08
306 137,03
79 478,21
79 478,21
77 750,42
78 614,31
25 %
09.8884
Belarus
97 436,46
245 847,23
63 825,98
63 825,98
62 438,46
63 132,22
25 %
09.8885
Moldova
73 031,65
184 270,12
47 839,55
47 839,55
46 799,56
47 319,56
25 %
09.8886
Other countries
122 013,2
307 858,13
79 925,03
79 925,03
78 187,53
79 056,28
25 %
17
Angles, Shapes and Sections of Iron or Non Alloy Steel
7216 31 10, 7216 31 90, 7216 32 11, 7216 32 19, 7216 32 91, 7216 32 99, 7216 33 10, 7216 33 90
Ukraine
42 915,19
108 281,65
28 111,7
28 111,7
27 500,57
27 806,14
25 %
09.8891
Turkey
38 465,03
97 053,2
25 196,61
25 196,61
24 648,85
24 922,73
25 %
09.8892
Korea (Republic of)
10 366,76
26 156,94
6 790,77
6 790,77
6 643,15
6 716,96
25 %
09.8893
Russia
9 424,08
23 778,4
6 173,26
6 173,26
6 039,06
6 106,16
25 %
09.8894
Brazil
8 577,95
25 %
09.8895
Switzerland
6 648,01
16 773,96
4 354,79
4 354,79
4 260,13
4 307,46
25 %
09.8896
Other countries
14 759,92
58 885,04
15 287,53
15 287,53
14 955,19
15 121,36
25 %
18
Sheet Piling
7301 10 00
China
12 198,24
30 778,05
7 990,49
7 990,49
7 816,78
7 903,63
25 %
09.8901
United Arab Emirates
6 650,41
16 780,01
4 356,37
4 356,37
4 261,66
4 309,02
25 %
09.8902
Other countries
480,04
1 211,21
314,45
314,45
307,61
311,03
25 %
19
Railway Material
7302 10 22, 7302 10 28, 7302 10 40, 7302 10 50, 7302 40 00
Russia
2 147,19
5 417,7
1 433,84
1 433,84
1 402,67
1 418,25
25 %
09.8906
China
2 145,07
5 412,33
1 432,42
1 432,42
1 401,28
1 416,85
25 %
09.8907
Turkey
1 744,68
4 402,1
1 165,05
1 165,05
1 139,72
1 152,39
25 %
09.8908
Ukraine
657,6
1 659,24
25 %
09.8909
Other countries
1 010,85
2 550,54
1 092,93
1 092,93
1 069,17
1 081,05
25 %
20
Gas pipes
7306 30 41, 7306 30 49, 7306 30 72, 7306 30 77
Turkey
88 914,68
224 345,46
58 243,77
58 243,77
56 977,6
57 610,68
25 %
09.8911
India
32 317,4
81 541,78
21 169,59
21 169,59
20 709,38
20 939,48
25 %
09.8912
North Macedonia
9 637,48
24 316,84
6 313,05
6 313,05
6 175,81
6 244,43
25 %
09.8913
Other countries
22 028,87
55 582,25
14 430,07
14 430,07
14 116,37
14 273,22
25 %
21
Hollow sections
7306 61 10, 7306 61 92, 7306 61 99
Turkey
154 436,15
389 666,25
101 163,76
101 163,76
98 964,55
100 064,16
25 %
09.8916
Russia
35 406,28
89 335,51
23 192,97
23 192,97
22 688,77
22 940,87
25 %
09.8917
North Macedonia
34 028,95
85 860,29
22 290,74
22 290,74
21 806,16
22 048,45
25 %
09.8918
Ukraine
25 240,74
63 686,29
16 534,01
16 534,01
16 174,57
16 354,29
25 %
09.8919
Switzerland
25 265,29
56 276,65
14 610,34
14 610,34
14 292,73
14 451,53
25 %
09.8920
Belarus
20 898,79
52 730,88
13 689,8
13 689,8
13 392,2
13 541,0
25 %
09.8921
Other countries
25 265,29
63 748,22
16 550,09
16 550,09
16 190,3
16 370,19
25 %
22
Seamless Stainless Tubes and Pipes
7304 11 00, 7304 22 00, 7304 24 00, 7304 41 00, 7304 49 10, 7304 49 93, 7304 49 95, 7304 49 99
India
8 315,9
20 982,29
5 447,35
5 447,35
5 328,93
5 388,14
25 %
09.8926
Ukraine
5 224,94
13 183,34
3 422,61
3 422,61
3 348,21
3 385,41
25 %
09.8927
Korea (Republic of)
1 649,31
4 161,47
1 080,39
1 080,39
1 056,9
1 068,64
25 %
09.8928
Japan
1 590,45
4 012,94
1 041,83
1 041,83
1 019,18
1 030,5
25 %
09.8929
United States of America
1 393,26
3 515,42
912,66
912,66
892,82
902,74
25 %
09.8930
China
1 299,98
3 280,05
25 %
09.8931
Other countries
2 838,17
7 161,15
2 710,71
2 710,71
2 651,78
2 681,24
25 %
24
Other Seamless Tubes
7304 19 10, 7304 19 30, 7304 19 90, 7304 23 00, 7304 29 10, 7304 29 30, 7304 29 90, 7304 31 20, 7304 31 80, 7304 39 10, 7304 39 52, 7304 39 58, 7304 39 92, 7304 39 93, 7304 39 98, 7304 51 81, 7304 51 89, 7304 59 10, 7304 59 92, 7304 59 93, 7304 59 99, 7304 90 00
China
49 483,75
124 855,14
32 414,45
32 414,45
31 709,78
32 062,12
25 %
09.8936
Ukraine
36 779,89
92 801,35
24 092,76
24 092,76
23 569,0
23 830,88
25 %
09.8937
Belarus
19 655,31
49 593,37
12 875,25
12 875,25
12 595,36
12 735,31
25 %
09.8938
Japan
13 766,04
34 733,85
9 017,48
9 017,48
8 821,45
8 919,46
25 %
09.8939
United States of America
12 109,53
30 554,21
7 932,38
7 932,38
7 759,93
7 846,15
25 %
09.8940
Other countries
55 345,57
139 645,41
36 254,24
36 254,24
35 466,11
35 860,18
25 %
25
Large welded tubes
7305 11 00, 7305 12 00, 7305 19 00, 7305 20 00, 7305 31 00, 7305 39 00, 7305 90 00
Russia
140 602,32
354 761,34
25 %
Turkey
17 543,4
44 264,71
25 %
China
14 213,63
35 863,19
25 %
Other countries
34 011,86
85 817,17
25 %
25.A
Large welded tubes
7305 11 00, 7305 12 00
Third countries
97 268,3
97 268,3
95 153,77
96 211,03
25 %
25.B
Large welded tubes
7305 19 00, 7305 20 00, 7305 31 00, 7305 39 00, 7305 90 00
Turkey
11 245,2
11 245,2
11 000,73
11 122,97
25 %
09.8971
China
6 775,7
6 775,7
6 628,41
6 702,06
25 %
09.8972
Russian Federation
6 680,59
6 680,59
6 535,36
6 607,97
25 %
09.8973
Korea, Republic of
4 877,57
4 877,57
4 771,54
4 824,55
25 %
09.8974
Japan
2 588,59
2 588,59
2 532,31
2 560,45
25 %
09.8975
Other countries
5 748,0
5 748,0
5 623,04
5 685,52
25 %
26
Other Welded Pipes
7306 11 10, 7306 11 90, 7306 19 10, 7306 19 90, 7306 21 00, 7306 29 00, 7306 30 11, 7306 30 19, 7306 30 80, 7306 40 20, 7306 40 80, 7306 50 20, 7306 50 80, 7306 69 10, 7306 69 90, 7306 90 00
Switzerland
64 797,98
163 495,29
42 446,07
42 446,07
41 523,33
41 984,7
25 %
09.8946
Turkey
60 693,64
153 139,43
39 757,51
39 757,51
38 893,22
39 325,37
25 %
09.8947
United Arab Emirates
18 676,4
47 123,44
12 234,02
12 234,02
11 968,06
12 101,04
25 %
09.8948
China
18 010,22
45 442,58
11 797,64
11 797,64
11 541,17
11 669,4
25 %
09.8949
Taiwan
14 374,2
36 268,32
9 415,85
9 415,85
9 211,16
9 313,51
25 %
09.8950
India
11 358,87
28 660,18
7 440,65
7 440,65
7 278,9
7 359,78
25 %
09.8951
Other countries
36 898,57
93 100,78
24 170,49
24 170,49
23 645,05
23 907,77
25 %
27
Non-alloy and other alloy cold finished bars
7215 10 00, 7215 50 11, 7215 50 19, 7215 50 80, 7228 10 90, 7228 20 99, 7228 50 20, 7228 50 40, 7228 50 61, 7228 50 69, 7228 50 80
Russia
117 519,41
296 519,61
76 981,37
76 981,37
75 307,86
76 144,61
25 %
09.8956
Switzerland
27 173,22
68 562,23
17 799,88
17 799,88
17 412,93
17 606,41
25 %
09.8957
China
20 273,26
51 152,57
13 280,05
13 280,05
12 991,35
13 135,7
25 %
09.8958
Ukraine
15 969,02
40 292,29
10 460,54
10 460,54
10 233,14
10 346,84
25 %
09.8959
Other countries
17 540,47
44 257,32
11 489,93
11 489,93
11 240,15
11 365,04
25 %
28
Non Alloy Wire
7217 10 10, 7217 10 31, 7217 10 39, 7217 10 50, 7217 10 90, 7217 20 10, 7217 20 30, 7217 20 50, 7217 20 90, 7217 30 41, 7217 30 49, 7217 30 50, 7217 30 90, 7217 90 20, 7217 90 50, 7217 90 90
Belarus
88 294,51
222 780,67
57 837,52
57 837,52
56 580,19
57 208,86
25 %
09.8961
China
66 719,82
168 344,42
43 704,98
43 704,98
42 754,87
43 229,92
25 %
09.8962
Russia
41 609,21
104 986,47
27 256,21
27 256,21
26 663,69
26 959,95
25 %
09.8963
Turkey
40 302,46
101 689,34
26 400,22
26 400,22
25 826,31
26 113,26
25 %
09.8964
Ukraine
26 755,09
67 507,23
17 525,99
17 525,99
17 144,99
17 335,49
25 %
09.8965
Other countries
39 770,29
100 346,58
26 051,62
26 051,62
25 485,28
25 768,45
25 %
IV.2 – Volumes of global tariff–rate quotas per trimester
YEAR 1
YEAR 2
YEAR 3
Product number
From 02.02.2019 to 31.03.2019
From 01.04.2019 to 30.06.2019
From 01.07.2019 to 30.09.2019
From 01.10.2019 to 31.12.2019
From 01.01.2020 to 31.03.2020
From 01.04.2020 to 30.06.2020
From 01.07.2020 to 30.09.2020
From 01.10.2020 to 31.12.2020
From 01.01.2021 to 31.03.2021
From 01.04.2021 to 30.06.2021
1
Other countries
1 307 737,32
2 051 794,76
2 172 108,07
2 116 842,75
2 093 833,59
2 093 833,59
1 013 612,28
1 013 612,28
991 577,22
1 002 594,76
2
Other countries
167 401,61
262 647,35
278 048,49
270 974,05
268 028,68
268 028,68
281 704,58
281 704,58
275 580,57
278 642,58
3.A
Other countries
119,25
187,09
198,07
193,03
190,93
190,93
739,77
739,77
723,69
731,73
3.B
Other countries
3 268,01
5 127,39
5 428,05
5 289,94
5 232,44
5 232,44
5 499,42
5 499,42
5 379,87
5 439,65
4.A
Other countries
296 430,19
465 088,74
492 360,66
479 833,44
474 617,86
474 617,86
498 834,77
498 834,77
487 990,53
493 412,65
4.B
Other countries
48 890,51
76 707,53
81 205,51
79 139,39
78 279,18
78 279,18
82 273,3
82 273,3
80 484,75
81 379,02
5
Other countries
16 782,91
26 331,8
27 875,85
27 166,6
26 871,31
26 871,31
28 242,39
28 242,39
27 628,42
27 935,41
6
Other countries
12 910,76
20 256,54
21 444,34
20 898,73
20 671,57
20 671,57
34 650,52
34 650,52
33 897,25
34 273,88
7
Other countries
181 777,76
285 203,04
301 926,8
294 244,83
291 046,51
291 046,51
305 896,87
305 896,87
299 246,94
302 571,91
8
Other countries
3 969,15
6 227,46
6 592,63
6 424,89
6 355,05
6 355,05
91 870,53
91 870,53
89 873,34
90 871,93
9
Other countries
19 753,81
30 993,05
32 810,42
31 975,62
31 628,06
31 628,06
33 241,85
33 241,85
32 519,2
32 880,53
10
Other countries
560,56
879,51
931,08
907,39
897,53
897,53
943,32
943,32
922,81
933,07
12
Other countries
29 679,33
46 565,85
49 296,38
48 042,13
47 519,93
47 519,93
49 944,59
49 944,59
48 858,84
49 401,71
13
Other countries
84 771,67
133 003,83
140 802,92
137 220,44
135 728,92
135 728,92
142 654,35
142 654,35
139 553,17
141 103,76
14
Other countries
3 321,66
5 211,58
5 517,17
5 376,8
5 318,36
5 318,36
5 589,72
5 589,72
5 468,2
5 528,96
15
Other countries
445,48
698,95
739,93
721,11
713,27
713,27
749,66
749,66
733,36
741,51
16
Other countries
47 495,07
74 518,13
78 887,73
76 880,57
76 044,91
76 044,91
79 925,03
79 925,03
78 187,53
79 056,28
17
Other countries
5 745,47
9 014,45
9 543,04
16 567,39
16 387,31
16 387,31
15 287,52
15 287,52
14 955,19
15 121,36
18
Other countries
186,86
293,18
310,37
302,47
299,18
299,18
314,45
314,45
307,61
311,03
19
Other countries
393,49
617,37
653,57
636,9477630,02
630,02
1 092,93
1 092,93
1 069,17
1 081,05
20
Other countries
8 575,0
13 453,88
14 242,79
13 880,4
13 729,53
13 729,53
14 430,07
14 430,07
14 116,37
14 273,22
21
Other countries
9 834,81
15 430,48
16 335,29
15 919,67
15 746,63
15 746,63
16 550,09
16 550,09
16 190,3
16 370,19
22
Other countries
1 104,79
1 733,38
1 835,02
1 788,34781 768,9
1 768,9
2 710,71
2 710,71
2 651,78
2 681,24
24
Other countries
21 543,91
33 801,65
35 783,72
34 873,27
34 494,21
34 494,21
36 254,24
36 254,24
35 466,11
35 860,18
25
Other countries
13 239,52
20 772,34
21 990,39
21 430,897921 197,95
21 197,95
25.A
Other countries
97 268,3
97 268,3
95 153,77
96 211,03
25.B
Other countries
5 748,0
5 748,0
5 623,04
5 685,52
26
Other countries
14 363,2
22 535,37
23 856,8
23 249,8
22 997,09
22 997,09
24 170,49
24 170,49
23 645,05
23 907,77
27
Other countries
6 827,84
10 712,64
11 340,81
11 052,26
10 932,13
10 932,13
11 489,93
11 489,93
11 240,15
11 365,04
28
Other countries
15 481,05
24 289,24
25 713,51
25 059,28
24 786,9
24 786,9
26 051,62
26 051,62
25 485,28
25 768,45’
ANNEX IIIMaximum volume of residual quota accessible from 01.04.2021 to 30.06.2021 to countries with a country specific quota
Product category | New allocated quota from 1.4.2021 to 30.6.2021 in tonnes |
|---|---|
1 | Special regime |
2 | 278 642,58 |
3.A | 731,73 |
3.B | 5 439,65 |
4.A | 493 412,65 |
4.B | Special regime |
5 | No access to the residual quota in Q4 |
6 | 34 273,88 |
7 | 302 571,91 |
8 | Not applicable |
9 | 32 880,53 |
10 | 276,19 |
12 | 29 542,22 |
13 | 37 251,39 |
14 | 3 068,57 |
15 | 552,42 |
16 | No access to the residual quota in Q4 |
17 | 15 121,36 |
18 | 311,03 |
19 | 1 081,05 |
20 | No access to the residual quota in Q4 |
21 | 3 421,37 |
22 | 2 174,49 |
24 | 35 860,18 |
25.A | Not applicable |
25.B | 5 685,52 |
26 | 23 907,77 |
27 | No access to the residual quota in Q4 |
28 | 18 295,6 |