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
