LONDON, Sept. 10, 2019 /PRNewswire/ -- The European Commission implemented amendments to the EU's safeguard measures starting from 1 October. The effects of these changes are expected to be relatively limited, however, Indonesia is losing its developing country exemption that is likely to restrict their export volumes of stainless into the EU significantly.
The European Commission implemented amendments
The European Commission implemented adjustments to the safeguard measures, due to come into force on 1 October. These are modifications which aim to balance pressure from steelmakers to tighten the safeguards and importers' interest in maintaining regular trade flows.
In this spotlight we focus on the effect of the new regulations on Indonesian stainless exports; if you have any question regarding the other amendments please get in touch with us to discuss.
The following are the eight main implemented changes to the safeguard quotas:
- Indonesia is no longer exempted from the safeguards for stainless flat products and seamless tubes.
- Individual countries cannot use more than 30% of the global quota, for products with a global quota (HR coil, large welded tubes).
- The large welded tubes product group will receive a global quota in line with the hot rolled coil quota.
- For rebar and wire rod individual countries cannot use more than 30% of the Other Countries quota once it is made available to countries that have filled their own quotas in the last quarter of the quota period (calendar Q2).
- The annual increase of the quota volume per period will be reduced from 5% to 3%. This would apply to the second half of the current quota period starting from 1 October and would retroactively lower the total available quota volume.
- The category A (non-automotive) metallic coated sheet quota has been expanded to include the CN codes previously unique to category B metallic coated sheet quotas. Category B will remain untouched and will apply to the same trade codes as previously.
- Material imported under the category B (automotive grade) metallic coated sheet quota will need to prove end-use in the automotive sector.
- India will - uniquely - have its metallic coated sheet quotas merged into one.
Read the full story:
https://www.crugroup.com/knowledge-and-insights/insights/2019/indonesian-stainless-steel-exports-likely-to-be-hit-by-updated-safeguards/
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