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EU closes valve quota loophole with new regulation and introduces new codes

ЕС закрывает лазейку в квотах на арматуру новым регулированием и вводит новые кодексы

The European Commission has made targeted changes to its steel protection regime to eliminate the practice of circumventing rebar imports in order to restore the effectiveness of tariff quotas (TRQs) and prevent market distortions.

According to the Commission, rebar products traditionally imported in product category 13 (CN codes: 7214 20 00 and 7214 99 10) have begun to enter the EU under category 12 (CN 7228 30 69) from 2025. This shift was made possible by minor changes in the chemical composition, which allowed products to be reclassified under a different CN code with more accessible volumes of duty-free quotas.

The Commission noted that the chemical modifications were negligible in cost and there was no clear economic justification other than access to quotas.

A surge in imports caused the market to grow. imbalance

The Commission found a significant increase in imports under the CN code 7228 30 69 (trade rods and light profiles), with volumes rising sharply compared to previous years.

In 2025, imports under this code increased by approximately 250 percent year on year, and these volumes accounted for approximately 35 percent of the total annual quota for reinforcement (category). 13).

This trend has been found to be distorting traditional trade flows and limiting access to quotas earmarked for genuine trade bullion.

New TARIC codes introduced to regain control

To address this issue, the EU has introduced new TARIC codes to clearly distinguish between reinforcement and trade ingots.

Created codes 7228 30 69 11 for reinforcing bars and bars containing indentations, ribs, grooves or other deformations, and 7228 30 69 99 for others.

The changes ensure that:

  • Reinforcement bars are classified and imported under the correct category,
  • Trade bullion quotas are not misused,
  • TRQ allocation reflects traditional trade flows.

This measure does not expand the scope of safeguard measures or change existing duty-free volumes trade.

Safeguard system remains in force until mid-2026

The EU steel safeguard system, based on tariff quotas and a 25 percent duty applied outside the quota, remains in force until 30 June 2026.

The latest amendment is intended to strengthen enforcement and maintain efficiency protective mechanism during the remaining period of its action.



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