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The Trade Remedies Authority (TRA) of the United Kingdom recently announced adjustments to the list of developing countries granted exemptions and changes to the tariff quotas applied under the safeguard measures on certain steel products. The details are as follows:
1. Overview of the Safeguard Review
On February 28, 2025, the TRA initiated a review due to changed circumstances relating to the volume of steel product imports from several developing countries compared to the initial quota application period. The purpose of this review is to assess the necessity of adjusting tariff quotas for 14 groups of steel products. The detailed list of product groups under review is attached in the related documentation.
2. Adjustment of Exempted Countries and Tariff Quotas
Following the investigation, the TRA proposed several significant changes as outlined below:
a. Regarding the exemption list:
The TRA recommends removing six countries from the exemption list under the safeguard measures, including Vietnam, China, India, UAE, Greece, and Turkey. This recommendation is based on these countries’ import market shares of steel products into the UK during the investigation period (from January 1, 2024, to December 31, 2024) exceeding the 3% threshold, which is higher than the average share during the 2017–2019 reference period.
b. Regarding quota adjustments:
The TRA observed that quotas for product groups 5, 16, 17, and 21 were fully utilized in at least one quarter of the investigation period. Several other groups also recorded high usage rates. In light of global and UK market volatility, the TRA proposes the following changes:
- Quotas not fully used in a quarter will not be carried over to the next quarter.
- Countries allocated individual quotas will not be permitted to use any unused quota portion in the final quarter.
- From October 1, 2025, a ceiling will be applied to remaining quotas for the following groups:
- Group 4: 40%
- Group 7: 40%
- Group 13: 40%
Detailed quota allocation methods are presented in the attached document. Specifically, for Vietnam, certain adjustments for some product groups are anticipated as follows:
- Group 1A (Non-alloy and other alloy hot-rolled steel sheets and strips):
- Previously: Exempted (0% market share)
- Proposed: Subject to residual quota (import market share reached 4.3%)
- Group 1B (Similar to Group 1A, for steel permitted for use):
- Previously: Exempted (0% market share)
- Proposed: Subject to global quota level (import market share reached 4.3%)
- Group 5 (Organic coated steel sheets):
- Previously: Subject to residual quota (import market share reached 8.7%)
- Proposed: Exempted (import market share now 2.2%)
3. Consultation and Submission Procedures
The TRA invites stakeholders to submit comments on the final report by 23:59 (UK time) on May 26, 2025. Comments must include a public version or a public summary.
WTO member countries affected and wishing to consult with the United Kingdom may coordinate with the UK Mission in Geneva to arrange a suitable time. Consultations will be conducted via the MS Teams platform, in accordance with Article 12.3 of the WTO Agreement on Safeguards.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnamese law firms specializing in anti-dumping and trade remedy for timely assistance.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
