On 17 March 2022, the Commission Implementing Regulation (EU) 2022/434 of 15 March 2022 amending Regulation (EU) 2019/159 imposing a definitive safeguard measure against imports of certain steel products has entered into force.
Through this Regulation, the European Union banned the imports of steel products originating in Russia and Belarus.
A transitional period of 3 months will be applied (until 17 June 2022) to imports of steel products traded based on contracts established before 2 March 2022 for Belarus and 16 of March for Russia. Only during this period steel may be imported into the EU.
At the same time, in order to limit the occurrence of a shortage of such products on its market, the European Union has proportionally redistributed the specific volumes of tariff quotas granted to Russia and Belarus to other exporting countries (e.g., to Turkey or India).
As there will no longer be an import quota specifically allocated to Russia and Belarus, steel products traded during the transitional period (3 months) will be able to be imported into the EU by accessing only the residual quotas (if remaining) or by payment of a safeguard tax of 25%.
How does the above influence the activity of your company?
If you import steel products originating in Russia or Belarus (based on ongoing contracts) you will be able to do so only until 17 June 2022. After this period ends, imports will be totally banned. Moreover, it is possible that during this period an additional duty of 25% to be levied upon imports due to elimination of the tariff quotas specific to Russia and Belarus
The EY Team is available for further details on the above.
Prepared by:
- Mihai Petre - Director, Indirect Tax
- Cosmin Dincă - Manager, Indirect Tax
For additional information, please contact:
- Alex Milcev – Tax & Law Leader Romania & Moldova
- Georgiana Iancu, Partner - Leader of the Indirect Tax Department
