UK trade association ISTA is warning against potential fraudulent use of the recently announced transitional agreement ahead of the new steel trade measures coming into force, Kallanish learns.
The recently confirmed time-limited agreement allows goods under contract before 14 March 2026, or if imported into free circulation between 1 July 2026 and 30 September 2026, to be exempt from the new 50% out-of-quota duty. The tonnages do not count towards quota allowances for quarter one of the new tariffs.
ISTA says it has voiced concerns of the measure being abused to the Department for Business & Trade, with other trade associations also backing the proposals. The associations are working to ensure there is no abuse of the measures and any companies involved in attempts to falsify entries are identified and reported.
To use the exemption, importers must hold verifiable evidence demonstrating that the consignment was ordered before the cut-off date.
This may include, but is not limited to:
· written contracts (including sales contracts)
· invoices
· proofs of payment
· customs warehousing records
HM Revenue and Customs (HMRC) can request evidence that the eligibility conditions are met, including after the goods have been released, and traders must retain and provide evidence on request.
In order to clear goods through customs under this transitional arrangement, written contracts must be provided along with the usual customs clearance documents signed.
Random audits of customs clearances may also take place and any cases of impropriety will be fully investigated by HMRC, while the DBT will also monitor incoming shipments.
Calls continue to grow for revisions to the proposed quota allowances from across the steel using sectors over concerns about availability and price implications.
Author: Carrie Bone
