Steel safeguard measures expired on 30 June 2026 and rather than be rolled over, new measures came into effect from 1 July for both the UK and EU.
The policy driver is global steel overcapacity, which creates the need to protect domestic steelmaking, while still maintaining supply for manufacturers that rely on imported steel.
For businesses, the key issues are practical: quota availability, evidence, product scope and contract terms, which will directly affect duty cost and supply continuity.
UK changes
In the UK, tariff-free steel quota volumes are being reduced and imports above the quota will face a 50% tariff. Quotas are expected to operate on a first come, first serve basis, so availability may be limited for high-demand categories.
The UK has also introduced a short transitional exemption period for goods contracted before 14 March and imported, or released from customs warehouse, between 1 July and 30 September.
Where the conditions are met, importers can use waiver code 9Y16 in CDS to waive the 50% duty and be excluded from quota volumes, but businesses must provide evidence before using it.
Permissible evidence includes dated contracts, memorandum of understanding, invoices, proof of payment and any warehouse release records linking the goods to the pre-14 March agreement. No evidence means you cannot use the waiver code.
EU changes
The EU has also reduced tariff-free volumes and a 50% out-of-quota duty will be applied from 1 July.
Unlike the UK, the EU does not offer a transitional exemption and is going a step further by also introducing ‘melt and pour’ traceability requirements. This means that importers need to evidence where the steel was first melted and poured into its initial solid form.
The European Commission is currently running a consultation seeking input from steel producers, steel users, traders, importers, industry associations and other stakeholders to identify the most practical and reliable documentation for accurately verifying the melt and pour location of steel imported into the EU. Following the consultation, the Implementing Act on ‘melt and pour’ is then expected to be adopted by 31 August and will enter into force in October 2026.
Actions businesses should take
Businesses need to be preparing for the changes that are happening from 1 July:
- UK steel exporters/steel manufacturersshould review product coverage, expected demand and customer pricing. Prepare evidence showing UK production capability where relevant and monitor government updates.
- UK steel importers should map their commodity codes to quota categories, model 50% out-of-quota duty exposure, check whether goods have been contracted before 14 March and may qualify for the transitional waiver and ready supporting evidence in case of scrutiny by HMRC.
- UK downstream manufacturers need to identify steel inputs not readily available in the UK, assess margin and contract impacts if imports fall outside quota, agree who bears duty increases and prepare contingency sourcing or customer price adjustments.
- Customs intermediaries should confirm with the principal business their clearance instructions before shipment.
- EU-facing supply chain actors should start collecting melt and pour evidence from suppliers now, particularly mill certificates or equivalent declarations, and update their internal processes.
- Northern Ireland businesses may face dual UK and EU steel controls based on origin, routing and customs status. With reduced quota allocations from both the UK and EU, tariff-free movement is limited. For Great Britain (GB) to Northern Ireland (NI) movements deemed “at risk” with EU duty payable, businesses should check their eligibility for the Customs Duty Waiver Scheme and Duty Reimbursement Scheme.
With quotas tightening and duty exposure increasing, early evidence gathering and supply chain planning will be critical to avoiding disruption from July 2026 onwards.