The UK Government has accepted the Trade Remedies Authority’s (TRA) recommendation to modify the tariff rate quota (TRQ) on imports of category 1 (HRC). These changes will take effect from October 1, 2024, according to a TRA statement.
Due to reduced domestic HRC production, the TRA proposed splitting the HRC quota into two categories: 1A and 1B. The quota for category 1A, for commercial applications, will remain at current levels, while category 1B, for downstream processing, will be set 132pct higher than 1A. Combined, both quotas will allow 3.3 mln tons of HRC imports annually.
Category 1B will have a global allocation to ensure reliable supply chains, with a 40pct cap to prevent any single country from dominating exports. The import allowance under category 1A will be just over 1 mln tons, and under 1B, around 2.3 mln tons. Importers exceeding these limits will face a 25pct tariff.
The TRA also recommended suspending the TRQ for nine months due to Tata Steel UK’s blast furnace closure and rising HRC imports. The TRA began reviewing this suspension in February 2024, but the complexity delayed a final decision. The Secretary of State has asked the TRA to reassess the suspension recommendation, with a final decision expected by December 2024.
