Tariff errors intensify UK steel safeguard row
The ongoing row over recent changes made to the UK steel safeguards has intensified after several errors with the quota system were identified leading to the suspension of certain product accounts, Kallanish learns.
Jonathan Reynolds, Secretary of State, recently overrode, at short notice, Trade Remedies Authority (TRA) recommendations to bring in a 15% cap on the residual quota of category 4 and a 20% cap on the residual quotas of categories 7 and 13. This was much to the displeasure of many importers who continue to call for immediate changes.
A notice by HM Revenue & Customs (HMRC) highlights two issues identified for resolution. One is the Online Trade Tariff display working incorrectly for the opening balance for the capped individual country quota accounts. This shows the opening balance for the associated residual quota account. HMRC says it is working with DBT to fix this.
It adds that a calculation issue has been identified within the quota system that affects all capped individual country quota accounts with an associated residual account.
The issue occurs when the individual country account is near exhaustion and partial allocations are required. Due to this issue, two accounts have been suspended pending further investigation, 058410 for Vietnam and 058411 for South Korea, both under category 4, metallic coated sheets.
HMRC adds the other capped individual country quota accounts have a healthy remaining balance, and claims can continue to be made against them.
In a social media post, traders association ISTA says the system is suspended until 1 August, referring to the move as “totally untenable”.
It calls for Reynolds to address the “catastrophic situation” and either reconsider his determination on TQ0066 or at least delay implementation until 1 October.
ISTA, among others, has continued to campaign for changes to steel safeguards, with importers heavily impacted by the restricted allowances and short notice.
In the weeks since the changes, businesses have continued to vent their frustration at the system, which some say has left them in limbo and unable to calculate the duties they owe.
Carrie Bone UK
Dudelange, Liège face closure; EU quotas deter buyers
Liberty Steel’s Dudelange and Liège facilities appear headed for permanent closure, with no buyers emerging more than two years after operations ceased. Informed sources tell Kallanish that hopes of reviving the sites are fading, largely due to the constraints of the EU’s steel import quota system, which continues to deter potential non-European investors.
In May, the sales process for the Dudelange plant was suspended after rumoured bidder Tosyali reportedly withdrew its interest. A recent visit by a potential buyer reportedly took place at the Dudelange site, though the interested party is said to be based outside the EU.
“The core issue is the difficulty of importing hot rolled coil from outside the EU,” one source explains. “The EU quota system is preventing any viable acquisition of both Dudelange and Liège. As long as these trade protections remain in place, the sites are unlikely to restart.”
A union source adds that the Luxembourg government has engaged in discussions with EU authorities in an effort to find a solution, but no progress has been made. In July, a “job day” event was organised in Luxembourg to help redirect former Dudelange workers towards new employment opportunities. “Liège and Dudelange are now in a state of abandonment,” the source concludes. “Trees are beginning to grow where production used to take place.”
ArcelorMittal Belgium has meanwhile confirmed the acquisition of a portion of the former Liberty Steel Liège facility, specifically one galvanising line located in Flémalle, Wallonia. The purchase offer was accepted by the court-appointed trustees following the going into administration of owner Liberty Galati.
The agreement covers the full takeover of operations in Flémalle, including the Galva 5 hot-dip galvanising line, CEPI (repair) lines, and a water treatment plant. The Galva 5 line produces zinc-coated steel products primarily for the automotive and construction industries.
ArcelorMittal Belgium plans to restart the galvanising line in 2026, following approximately nine months of maintenance and investment work needed to restore the facility to operational standards.
“The galvanising line in Flemalle will allow us to expand our ability to manufacture a high added-value product for our automotive and construction customers across Europe. We look forward to working with the skilled team in Flémalle and to restoring the plant to operating at a world-class level,” ArcelorMittal Belgium chief executive Frederik Van De Velde says in a company note obtained by Kallanish.
In December, the Luxembourg commerce tribunal declared the Dudelange facility bankrupt. In addition to Dudelange, Liberty plans to divest its Magona facility in Italy and its Belgium-based Liege plant. The three businesses combined possess rolling capacity exceeding 2.5 million tonnes/year. The Magona facility remains operational but is running at below half of its production capacity.
Natalia Capra France