European Commission to repeal change to HDG quota

The European Commission will next month remove the end-use procedure for hot-dip galvanised (HDG) material imported under the 4B section of its steel safeguard.

The procedure was only introduced under the review implemented on 1 October this year, to prevent 4A material being sold into 4B, which is designed solely for automotive grade material.

Since then, the commission has started a circumvention case into Chinese HDG, which was being imported into 4B to avoid duties that would be payable on 4A non-automotive grades.

The commission will also introduce a special adjustment for Korea after a meeting on 10 December. The regulation is designed to allow 4B material to be cleared under the 4A quota, and the tariff quota on the latter would be increased.

At the consultations between the commission and Korea, it was concluded that “certain amounts” of Korea’s country specific tariff-rate quota had to be imported under 4A because of the end-user requirement, cannibalising that quota — it has already gone critical, with just 17,800t left for importing by June 2020. The new regulation will see another 152,255t added to the quota next month, according to a commission note obtained by Argus.

By Colin Richardson