Commission Implementing Regulation (EU) 2019/159 of 31 January 2019 imposing definitive safeguard measures against imports of certain steel products

(118) With regard to the development of raw material costs, several parties generally observed that the Commission should look into this element, whereas one interested party submitted that the conjectural market situation, linked to cheaper raw materials worldwide, has caused the difficulties alleged by the Commission.

(119) The data provided by the Union industry demonstrate that the cost of production for the product concerned developed as follows:

Table 15

Cost of production

Source: Questionnaire replies.

20132014201520162017Cost of production (EUR/tonne)700668633579661index 2013 = 10010095908394

(120) The above trend is similar to the trend in sales prices, as described in recital 5.1.3 above, with the exception of 2017 when, as explained, sales prices were exceptionally favourable as compared to costs, resulting in a relatively high profit (albeit still under target profit level). This trend does not reveal any particular link between raw material cost and profitability development, if only that in the year when the Union industry's profit declined the strongest as compared to the previous year, i.e. in 2015 (down by 25 %), its cost of production decreased significantly. There is therefore no ground for concluding that the development of raw material prices, either upwards or downwards, represents a threat of injury. That claim therefore, was rejected.

(121) Interested parties also raised the claim that export performance of the Union industry was declining. They based their claims on statements made by Eurofer as well as on the assumption or likelihood that exports to the USA and Turkey would drop in view of the US Section 232 measures and Turkish safeguard investigation.

(122) An analysis of the export performance of the Union industry with regard to the product concerned has been made based on Eurostat data:

Table 16

Exports of the Union industry

Source: Eurostat.

20132014201520162017Export volume (000 tonnes)3118131599294492757827603index 2013 = 100100101948889Export price (EUR/tonne)962931934850953index 2013 = 10010097978899

(123) The above table demonstrates two things. Firstly, the volumes exported by the Union industry throughout the period considered are relatively small as compared to the volumes sold on the Union market – they accounted, depending on the year, for 17 % - 19 % of the sales volumes of the Union industry only. Secondly, the export price development was rather flat over the period considered, with the exception of 2016 when export prices were overall significantly lower than in the other years (the cost of production was also at a low in 2016). Based on the export sales volumes, the development of those volumes over the period considered and the export sales prices, the Commission found no reason to assume that export sales performance of the Union industry is a major threat of serious injury to the Union industry.

(124) As concerns the role of imports made by Union producers or traders/distributors related thereto, as described in recital (44) above, these imports were marginal and relatively stable over the period considered, representing 0,3 % to 0,7 % of total imports depending on the year. These imports have not affected the import trends, and the claim was therefore rejected.

(125) Several interested parties submitted that the Commission had not assessed the conditions of competition between the imported products and domestic products as it has allegedly disregarded the breadth and heterogeneity of different product categories covered by the safeguard investigation and only reached conclusions for all product categories in the aggregate. In the same vein, several interested parties claimed that, for each of the product categories, the Commission should have performed a separate causation analysis.

(126) As explained in section 2.1, the Commission considered that, in view of the high degree of interrelation between the product categories that make up the product concerned, that the imported product and the Union product are like or directly competing. The acknowledgement that a global analysis is warranted given the strong interrelations between all product categories subject to the investigation also entails that the most appropriate way to perform the causation analysis is by aggregating the three product families that were distinguished in certain parts of the overall analysis. On this basis, the claim was rejected.

6.2.

Conclusion

(127) The cumulative attribution analysis of the other factors in recitals (79) and (80) in the provisional Regulation and in section 6.1 above showed that the other factors, both separately and when taken together, did not attenuate the causal link between increase in imports and the threat of serious injury to the Union industry. In the absence of any other comments, recitals (70) to (81) of the provisional Regulation are confirmed.

1. UNION INTEREST

(128) The purpose of safeguard measures is to remedy or prevent serious injury that has occurred as a result of increased imports. In accordance with Article 16 of Regulation 2015/478, the Commission has also examined whether any compelling economic reasons exist which could lead to the conclusion that it is not in the Union interest to impose measures.

(129) For this purpose, the impact of possible measures on all Union producers, importers and users of the product concerned and the possible consequences of taking or not taking the measures were considered based on the evidence available. Where necessary, the Commission devised a mechanism which would prevent serious injury from occurring whilst permitting traditional trade flows in a way compatible with a continued competitive functioning of the steel market.

7.1.

Interest of the Union producers

(130) It was provisionally concluded that imposing safeguard measures would be in the interest of Union producers as it would prevent any serious injury caused by a further and significant increase of imports. After the imposition of provisional measures, the Commission did not receive any comments from the Union producers contradicting this view. The provisional conclusions were therefore confirmed.

7.2.

Interest of the Union importers and users

(131) The Commission sent questionnaires to known importers and users in order to evaluate their interest.

(132) The Commission received 61 responses from importers and 70 responses from users other than those related to importers. Importers and users also made their views known both orally and in writing.

(133) Several Union importers and users claimed that the imposition of the safeguard measures would not be in the interest of the Union because it would increase import prices and restrict competition on the Union market. They also claimed that the imposition of measures would result in shortages of supply since, allegedly, the Union producers are not producing all types of steel products or not in sufficient quantities to supply the Union demand. This is, allegedly, further exacerbated by the fact that the availability of some products in the Union is restricted because they are subject to anti-dumping or anti-subsidy measures.

(134) After the imposition of provisional measures, several Union users and importers argued that, if definitive measures should be taken, the following elements should be considered:

A quota level established on the basis of the average of the last three years should be increased by 10 %, as it was done as regards the Union steel safeguard measures in 2002, in order to accommodate for the likely increase in demand in downstream sectors;

Any quota should be allocated to each specific supplying country instead of a first-come-first-serve allocation, in order to maintain traditional trade flows and avoid that certain supplying countries might take advantage of their geographic position or export capacities to fill up rapidly the quota and crowd out other traditional supplying countries;

Economic certainty should be ensured by establishing a quota system based on licenses. This would ensure continuity of supply and guarantee that shipments go through the tariff free quota the moment they leave the exporting country. Alternatively, it was claimed that the yearly quota should be established on a quarterly basis in order to avoid massive imports at the beginning of the year, which would be detrimental to users that are not in a position to build up stocks and need to be supplied on a stable basis throughout the year.

Some product types should be subject to separate quotas due to their specificities as compared to other product types falling within the same category. For these products, quotas should further be increased on a regular basis in order to reflect the expected significant increase of demand in the Union market in the next years.

(135) The Commission examined in detail these claims and came to the following conclusions.

(136) First, as already established in the provisional Regulation, the Commission agrees with the fact that traditional trade flows should be maintained as far as possible. Based on the above conclusions of the existence of a threat of serious injury, only imports in excess of these traditional trade flows would cause serious injury to the Union industry. With safeguard measures established under the form of a Tariff Rate Quota, the Commission considers that effective competition between imports and the Union industry will be maintained, and that the risk of general price increases and of any shortage is unlikely. Indeed, with such a form of measures, it is expected that imports will continue at traditional non-injurious levels, and the safeguard measures would only apply if, and when, the level of the quota is reached and the threat materialises.

(137) Furthermore, the Union industry claimed it is able to manufacture all types of steel products. In any event, imports will be maintained – without measures – at their traditional levels, and are still possible above the quota, albeit subject to safeguard measures.

(138) As to the existence of anti-dumping or anti-subsidy measures, their objective is to remedy unfair trade practices. While these measures may indeed have an impact on the level of exports from some supplying countries, this does not affect the level of fairly-priced imports that would have entered the Union market absent injurious dumping or subsidisation practices. This issue, and in particular the cumulation of safeguard with anti-dumping or anti-subsidy measures, is considered under recital (186).

(139) For the above reasons, the claims made by the parties as outlined in recital (133) are hereby rejected.

(140) As to the claims concerning the form and level of measures, the Commission considered the following elements.

Level of the tariff-rate quota

(141) While users and importers consider that any tariff-rate quota should be established at a level of 10 % above the average imports in the last three years since Union steel consumption in certain product categories is likely to experience double-digit growth rates, Union producers claimed that Union steel consumption will remain relatively flat in the coming years.

(142) According to Article 15(3) of Regulation 2015/478, any quota shall, in principle, be set at the average level of imports over the last three representative years. This provision, however, applies in case measures take the form of a quota. As confirmed by the relevant jurisprudence

WTO Appellate Body Report, US- Line Pipe, WT/DS202, para. 235.

, a tariff-rate quota is not a quantitative restriction under the WTO Agreement on Safeguards, and therefore, the Commission is not as such bound to establish the level of the tariff-rate quota in this particular case at a level strictly corresponding to the average imports over the last three years.

(143) In view of the claims raised in recital (141) above, and in line with the large economic, political, and legal discretion afforded to the Commission pursuant to Article 16 of Regulation (EU) 2015/478 and 13 of Regulation (EU) 2015/755, the Commission considered it necessary to modulate the tariff-rate quota level above the average import level for the last three years to take account of the competing interests between users and importers, on the one hand, and the Union industry, on the other hand. In this regard, as evidenced under recital (32), the Commission notes that imports of the product categories concerned rose by 4 % from 2017 to the MRP without

causing serious injury. The outlook for a future, albeit flatter, import growth rate under normal market conditions, coupled with the economic and political interests of the Union industry as a whole, accordingly mandate for the imposition of a quantitative level of the tariff-rate quota just above the average import level during the period 2017 to the MRP.

(144) On this basis, and in order to limit the increase of imports to a level that is unlikely to cause serious injury to the Union industry whilst, at the same time, ensuring that traditional trade flows are maintained and existing user and importing industry sufficiently supported, the Commission considers that the quantitative level of the tariff-rate quota should be based on the average imports in the period 2015-2017 plus 5 %.

Allocation of the tariff-rate quotas

(145) Almost all interested parties, including the Union industry, argued in favour of an allocation of tariff-rate quotas to specific supplying countries instead of a global quota system as established at provisional stage.

(146) The Commission agrees that a country-specific tariff-rate quota system is indeed the most appropriate system to ensure traditional trade flows. It has however some limitations. First, the number of supplying countries is significant for each product category. It is not reasonably practicable to allocate a tariff-rate quota to each of them. Second, the Commission considers that it is necessary, for an adequate tariff-rate quota allocation, to take into account special factors that will affect the trade in the products concerned. Indeed, for a number of products falling within the scope of this investigation, the Union has recently imposed anti-dumping/countervailing duty measures on certain exporting countries. This has often resulted in a significant decrease of imports from these countries in the most recent year, and will continue to do so during the period of imposition of these measures. A country-specific tariff-rate quota for these countries will therefore more than likely be used only marginally since the level of the tariff-rate quota is based on the average level of imports in the years 2015-2017, i.e. including a period when anti-dumping/countervailing duty measures were not yet in place and the level of import was significant due to unfair trade practices. It would, therefore, not be in the Union interest to allocate a country specific tariff-rate quota in these circumstances since the level of future imports would unavoidably be below their traditional trade levels.

(147) The Commission concluded that, given the above circumstances, a mixed approach would be the most appropriate. First, a country specific tariff-rate quota should be allocated to countries having a significant supplying interest, based on their imports over the last 3 years. For the purpose of this regulation, it is considered that countries with a share of more than 5 % of imports for the product category concerned have a significant supplying interest. A global tariff-rate quota (the residual quota) based on the average of the remaining imports over the last three years should be allocated to all other supplying countries.

(148) A country specific tariff-rate quota should however not be allocated to those countries whose export level – for each product category concerned – has substantially diminished in the recent past because of anti-dumping/countervailing duty measures in place for the above reasons. These countries should fall within the residual tariff-rate quota.

(149) In the specific case of product category 1 (hot rolled coils), since close to 60 % of imports are currently covered by anti-dumping measures, the Commission considers that a global quota and no country-specific allocation is the most appropriate.

(150) Finally, the Commission considers that it is also in the Union interest that when a supplying country has exhausted its specific tariff-rate quota, it should be allowed to have access to the residual tariff-rate quota. This possibility should however only be applied during the last quarter of the period, in order to strike a balance between the interests of the countries endowed with a country specific tariff-rate quota and the countries drawing on the global tariff-rate quota. This would not only ensure the maintenance of traditional trade flows but also avoid that, as the case may be, parts of the residual tariff-rate quota would remain unused.

Predictability of the tariff-rate quota over time

(151) The Commission considers that the introduction of a licensing system is not necessary to ensure predictability.

(152) First, data concerning the development of imports under the tariff-rate quota and the free of duty quota usage is publically available and updated on a daily basis. The data on the tariff-rate quota usage can be found at the following web address:

http://ec.europa.eu/taxation_customs/dds2/taric/quota_consultation.jsp

(153) Furthermore, a country-specific allocation should also ensure an additional level of predictability for traditional suppliers and users. In addition, when a country-specific tariff-rate quota is exhausted, the country in question will be in a position to export through the available residual quota, although only during the last quarter of the period, which is the most critical period in terms of quota availability.

(154) Finally, the Commission considers that the residual tariff-rate quota should be divided quarterly in order to ensure that imports are evenly distributed over the year and prevent that significant imports of standard products are stockpiled at the beginning of the period in order to avoid possible duties. Unused quarterly tariff-rate quota allocations would also be automatically transferred to the next period.

Product classification

(155) The Commission has examined the claims made by users and importers to create specific sub-categories for their products. In particular, the Commission has found that two product categories, namely category 3 and 4, present distinct characteristics for which the claims are acceptable.

(156) Category 4 – corrosion resistant sheets – include both products produced specifically for the automotive industry, based on precise product specifications and subject to long term contracts, and other standard products. For the former products, suppliers need first to obtain a certification necessary to supply the industry over a long time period, based on a just-in-time system. For this product category, the Commission acknowledges that there is a risk that some specific product types are crowded out from the free of duty quota by standard products that can be massively supplied and stockpiled at the beginning of the year.

(157) Furthermore, the standard types of products under this product category are currently subject to anti-dumping duties, which also have an impact on future import developments as well as quota allocation, based on what is explained above. The fact that these more specialised products were not covered in the industry's request for anti-dumping measures is also an indication that these products should be considered separately from the standard types of products.

(158) As far as category 3 – electrical sheets – is concerned, the relevant user industry also claimed that some specialised products, i.e. non-grain oriented electrical sheets

CN codes 72251990, 72261980.

, should be separated from other products in this category. This claim is based on the fact that these product types are strategic for the Union economy, as they are used in the new energy/mobility sectors (e.g. new energy vehicles, wind turbines). Users and importers claim that these products are high-value, specialty products, with the risk that they are crowded out by standard products included in the same product category. In addition, users also claimed that the Union demand is likely to increase significantly in the near future and that the specific quota should be increased accordingly in the future. Even though the latter claim could not be duly supported by any evidence, a separate quota for these products would allow examining further duly substantiated requests in the future.

(159) The Commission further considers that, without undermining whatsoever the remedial effect of the measure, it is possible to create sub-sets of products within these two existing product categories, which would accordingly be allocated their own quota.

(160) On the basis of the above, the Commission accepted the claims to split product category 4 (metallic coated sheets) and product category number 3 (electrical sheets (other than GOES)) into two sub-categories.

Review clause

(161) Finally, the Commission considers that, based on the Union interest, it may have to adjust the level or allocation of the tariff-rate quota as set out in Annexes IV.1 and IV.2 in case of changes of circumstances during the period of imposition of the measures. Such review could concern any product category subject to measures, including (but not limited) to the product categories 3, 4, 6 and 16 that were subject to detailed and substantiated submissions during the investigation as well as in the context of the bilateral consultations held by the Commission. The changed circumstances could, for example, materialise in the case of an overall increase or contraction in Union demand for some product categories that would require a reassessment of the level of the tariff-rate quota, the imposition of anti-dumping or anti-subsidy measures that may significantly affect future import developments, or even any development concerning the US Section 232 that may have a direct impact on the conclusions of this investigation, namely in terms of trade diversion. The Commission may also review whether the operation of the measures could have detrimental effects in achieving the integration objectives

pursued with preferential trading partners, such as substantially risking their stabilisation or economic development. The Commission will carry out an assessment of the situation on a regular basis, and consider a review at least at the end of each year of imposition of measures. The Commission shall initiate the first review investigation no later than on 1 July 2019.

7.3.

Conclusion on Union Interest

(162) Based on the above considerations, and a careful examination of the various interests at stake, the Commission concludes that the Union interest requires the adoption of definitive safeguard measures under the form of a tariff rate quota, in order to prevent further deterioration in the situation of the Union producers.

1. FINAL CONSIDERATIONS

(163) It is concluded that the Union steel industry is in a situation of threat of serious injury for 26 product categories and that the situation is likely to develop into actual serious injury in the foreseeable future, in the absence of safeguard measures. It is also concluded that it would be in the Union interest to adopt appropriate measures to avoid a further increase of imports.

8.1.

Form and level of measures

(164) At provisional stage, the Commission found that a measure in the form of a tariff-rate quota was the best way to reconcile the interests of Union steel producers and users. Such a form, if appropriately tuned, would allow to temporarily bringing the imports' increase to a non-injurious level for the Union steel industry, while keeping a suitable choice of supply sources available for its customers in a way that is compatible with a continued competitive functioning of the steel market.

(165) Based on the above Union interest analysis, the Commission considers that a tariff-rate quota is indeed the best form of measure to balance the various interest at stake, namely preventing serious injury and ensuring that traditional trade flows are maintained.

(166) In the comments received by the Commission after provisional measures, although the majority of steel users contested their adoption, they also provided useful suggestions to modulate them and minimize their negative impacts on the market.

(167) Among the comments received, very few concerned the micro simulations and the macro model presented by the Commission to check the proportionality of the off-quota tariff level.

(168) As to the macro model, an association of exporters in a third country criticised that the elasticities used in the Armington model for the overall set of product categories differ from those used in certain more disaggregated studies of specific steel product categories; however these parties did not propose any alternative levels for the overall calculation. The same association also claimed that the Commission had ignored the significant increase in the price levels in the US market, which continues to attract imports despite the Section 232 measures. Concerning the micro simulations, an Union users association and several exporters contended that the benchmarking of micro simulations had only been made with respect to a limited number of product categories, whereas the measures covered a larger set; they also criticised that the calculations were reportedly based on the costs of Chinese producers which could not be considered as representative of all import sources. Several exporters claimed that the Commission has not sufficiently explained the use of the abovementioned models and that the fixing of a 25 % off-quota tariff based on that basis is arbitrary.

(169) The Commission considers that both the micro simulations and the macro model are stylisations of the reality but, contrary to some comments, they are means that allow a technical discussion of alternative scenarios to make policy decision grounded on facts rather than on arbitrary judgements.

(170) The Commission would like to stress that the 25 off-quota tariff fixed by the Commission at the provisional measures' stage intends to deal with a significant increase of steel imports into the Union, which in the most recent period has speeded as a result of the global 25 % tariff that the US have imposed on steel imports (with a limited number of origin exceptions subjected to very restrictive quotas) and the 50 % tariff on Turkish imports. The express aim intended by the US with their measures is to achieve the industrial policy objective of artificially reducing the level of steel imports by 13,3 million metric tons, which will in turn enable the US steel industry to operate at an 80 % capacity utilization rate.

(171) Contrary to the views of a few interested parties, it is against this backdrop that a 25 % level Union off-quota tariff rate is not arbitrary but appears to be fully proportionate measure and perfectly consistent with the objective to protect the Union steel market against a surge of imports, which in the recent period originates to a large extent in the trade deviation that the US protectionist measures are producing. In fact, worldwide steel exporters confronted with a 25 % or 50 % tariff or with restrictive quotas in the US could redirect their exports to the Union above the level of their traditional sales and produce injury to the Union steel industry if there is not a sufficiently deterring hurdle in the Union when imports start exceeding their traditional levels.

(172) It is important to highlight here again that, whereas the tariffs under the Section 232 measures are levied from the first import and therefore seriously distort import trade inflows downwards, the Union tariff-rate quota allows the continued entry of imports from all origins without additional hurdles and only produce effects if the relevant quotas representing the traditional flow of imports from every origin are exceeded, notably because of the trade diversion produced by the US measures.

(173) In these circumstances, unless the Union imposes an above quota tariff on the relevant steel imports of an amount at least equal to the tariff applied by the US, the exporter to the US will gain extra margin or minimise the loss thereof by redirecting sales to the EU. This analysis indicates that the lower end of the off-quota tariff level capable of ensuring a minimal protection of the Union against the trade diversion should at least be 25 %. However, this level will not stop trade diversion. As import prices are pushed upwards in the US by protectionist measures, an important proportion of US steel production that previously was uneconomic becomes profitable, displacing imports and diverting trade towards other markets, being the Union the most attractive alternative destination.

(174) In this context, the micro economic simulations of the contribution margin of landed Union imports proposed by the Union industry and presented at provisional stage by the Commission are key to discuss the commercial behaviour of an exporter confronted with the above-mentioned choice of selling on the US market after payment of the Section 232 tariffs or alternatively exporting incrementally to the Union beyond its traditional sales to avoid such payment.

(175) Contrary to the comments made by some parties, the assumptions made in the simulations are realistic and conservative. They are not mainly based on Chinese costs. The most important component of the costs used in the simulation is a raw material basket valued at international prices. Chinese benchmarks are only used for a comparatively lower proportion of ancillary variable costs on top of the raw materials, on account that China is one of the most prominent exporters across product categories. Finally, the choice of freight costs from China to the Union to calculate the landed cost is a very conservative assumption in the calculation, since if lower freight costs of other possible origins were used the contribution margin would be higher.

(176) These simulations allow calculating the actual level of the out-of-quota tariff capable of deterring trade diversion. As explained in the provisional measures' regulation, these simulations show that the contribution to the margin of the sales for an exporter of steel to the Union in a large variety of the most representative steel product categories under investigation are in excess of 30 % with a median of 34 %. Only above-quota tariffs at these levels would be able to completely offset the contribution to the margin of the relevant steel imports into the Union market and this way remove the incentive for an exporter to the US to redirect diverted sales to the Union market as with this tariff they become uneconomic.

(177) Against this background, the Union has chosen to adopt the least disruptive above quota tariff level of 25 %, which is at the lower end among the range of options discussed above. As explained, this above quota tariff level does not grant full protection shielding the Union completely against trade diversion. To the contrary, it will not only allow the free flow of traditional imports, but, on top, said quota tariff levels will also make it possible that, despite the payment of the tariff, a limited proportion of trade diverted sales still remain possible on the Union market, even when traditional trade levels are exceeded to meet an expected increasing demand.

(178) With respect to the comments made by interested parties on the use of a single macro-economic model taking all the product categories together instead of using more disaggregated analysis with the model, the Commission, as explained at provisional stage and in Section 2 above, considers that given the high degree of interconnections between the product categories from a supply and demand point of view such an overall assessment is fully pertinent notably if conservative values of elasticities are taken.

(179) In the provisional Regulation, the Commission stated that it would closely follow the evolution of imports before adopting a final position. The US and Union statistics on imports of the product categories of steel under investigation show that despite the important increase in prices by the Section 232 measures on the US market, there is a substantial lasting decrease of imports in the US in the last six months since May 2018 which is corresponded with a sustained increase in the growth of imports into the Union of the same steel product categories during the same period. Since May up to September 2018, the US imports of the product categories under investigation decreased by 2,6 million tonnes with respect to the same period in 2017, whereas the EU imports of the same products surged substantially with an increase of 2 million tonnes (77 % of the US decrease) over the same period. This represents a clear upward trend. These data noticeably show that the intended effects of the US Section 232 protectionist measures to produce a reduction in steel imports of 13,3 million metric tons from 2017 levels is well underway. Therefore, the observed most recent import trends do not appear to contradict the assumptions made in the model of possible trade diversion rate of about 70 % which the US measures could eventually achieve once they will have deployed their full protectionist effects over time. Nor would this contradict the ensuing need to have an above quota tariff rate of above 30 % to fully shield the Union market from their induced effects. This level also coincides with the above-described result of the microeconomic simulations.

(180) Accordingly, the Commission has decided to confirm the 25 % above quota tariff rate representing the lower end and least disruptive remedial option against the trade diversion produced by the US Section 232 measures.

8.2.

Administration of the tariff-rate quotas

(181) As explained above, based on Union interest considerations and in order to maintain as far as possible traditional trade flows, the best way of ensuring optimal use of the tariff quotas is to allocate it between the countries having a substantial interest in supplying the product concerned and, for the others, in the chronological order of the dates on which declarations of release for free circulation are accepted, as provided for in Commission Implementing Regulation (EU) 2015/2447

Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558).

. This method of administration calls for close cooperation between the Member States and the Commission.

(182) The eligibility of imported goods from developing countries to be excluded from the tariff quotas is dependent on the origin of the goods. The criteria for determining non-preferential origin currently in force in the Union should therefore be applied.

(183) For the purpose of the definitive measures, in order to permit traditional trade flows to continue, a specific quota will be determined for each of the product categories on which this Regulation imposes definitive measures.

8.3.

Applicable anti-dumping and anti-subsidy measures

(184) After the imposition of provisional measures, several users and importers reiterated their claims that Union producers are not in need of additional protection because of the existing anti-dumping and anti-subsidy measures, and that in any event safeguard and anti-dumping/anti-subsidy measures should not be cumulated.

(185) The Commission recalls that anti-dumping and countervailing duty measures do not seek to close the Union market but merely remedy injurious trading practices. As such, these measures target country-specific situations of dumping and subsidisation, have a different scope of application and purpose than the safeguard measure imposed by way of this Regulation, and are not mutually exclusive.

(186) However, as mentioned in recital (117) of the provisional Regulation, the Commission acknowledges that a cumulation of anti-dumping/anti-subsidy measures with safeguards may lead to a greater effect than desirable. Since this issue of cumulation would only potentially arise once tariff-rate quota ceilings are reached, the Commission will explore the need to address the issue at a later stage and in due course. In this framework, in order to avoid the imposition of double remedies whenever the tariff quota is exceeded, the Commission may consider necessary to suspend or reduce the level of the existing anti-dumping and countervailing duties to ensure that the combined effect of these measures does not exceed the highest level of the safeguard or anti-dumping/countervailing duties in place.

8.4.

Duration

(187) The Commission considers that the measures should be in place for a period of three years (including the period of imposition of the provisional measures), expiring on 30 June 2021. A tariff-rate quota should be open for the period 2 February 2019 to 30 June 2019, thereafter, for the period of 1 July 2019 to 30 June 2020, and, thereafter, for the period 1 July 2020 to 30 June 2021, as specified in Annex VI for each product category concerned.

(188) Since the duration of the measures is for over a year, the measures must be progressively liberalised at regular intervals during the period of application. The Commission considers that the most appropriate way to liberalise the measures is to increase the level of the free of duty quota by 5 % after the each year. This should include the period of application of provisional measures, meaning that the first liberalisation will take place on 1 July 2019, with the second liberalisation taking place on 1 July 2020. Subsequent liberalisations will follow the same pattern.

8.5.

Surveillance on steel products

(189) Surveillance measures on steel products subject to this investigation were introduced in April 2016 since it appeared that trends in imports threatened to cause serious injury. Given the findings of this investigation and the imposition of definitive safeguard measures, the Commission considers that the surveillance system on steel products subject to safeguard measures should be suspended during the time of the imposition of safeguard measures.

1. EXCLUSION OF CERTAIN COUNTRIES FROM THE SCOPE OF THE DEFINITIVE MEASURES

(190) In accordance with Article 18 of Regulation (EU) 2015/478 and the international obligations of the Union, the provisional measures should not apply to any product originating in a developing country member of the WTO as long as its share of imports of that product into the Union does not exceed 3 %, provided that developing country members of the WTO with less than a 3 % import share, collectively account for not more than 9 % of total Union imports of the product concerned.

(191) The final determination made by the Commission shows that the product categories concerned originating in certain developing countries meet the requirements to benefit from the abovementioned derogation. Annex III.2 (List of product categories originating in developing countries to which the provisional measures apply) specifies the developing countries for the purposes of this Regulation. It also indicates for each of the 26 product categories the developing countries to which the provisional measures apply. The Commission considers it appropriate to calculate the volume of imports from developing countries, based on statistics available during the most recent period for each product category since the tariff rate quota is also established by reference to traditional trade flows from each category individually.

(192) Since the exclusion of the developing country Members of the WTO should apply as long as their share of Union imports does not exceed 3 %, the Commission will carry out an assessment of the situation on a regular basis, and at least at the end of each year of imposition of measures, in order to examine whether any country has exceeded the above threshold and should eventually be included in the scope of the safeguard measures.

(193) As set out in recital (80) of the provisional Regulation, on account of the close integration of markets with EEA members, the overall figures of imports from these countries, and the low risk of trade diversion, the Commission considers that the products under assessment originating in Norway, Iceland, and Liechtenstein should be excluded from the application of this Regulation. Furthermore, in order to comply with bilateral obligations, certain countries with which the Union has signed an Economic Partnership Agreement that is currently in force

Botswana, Cameroon, Fiji, Ghana, Ivory Coast, Lesotho, Mozambique, Namibia, South Africa, Eswatini.

should also be excluded from the application of this Regulation. After the imposition of the provisional measures, the Commission did not receive any comment that would lead to a change in these conclusions which are therefore confirmed.

1. OBLIGATIONS ARISING FROM BI-LATERAL AGREEMENTS BETWEEN THE UNION AND THIRD COUNTRIES.

(194) The Commission ensured that the safeguard measures taken pursuant to this Regulation also complies with the obligations arising from the bilateral Agreements signed with certain third countries.

(195) In this respect, it is noted that imports from the former Yugoslav Republic of Macedonia into the Union were found to have increased significantly in the period under investigation and contributed to the threat of serious injury suffered by the Union steel industry. These imports, therefore, meet the conditions required to take safeguard measures pursuant to Article 37(1) of the Stabilisation and Association Agreement concluded between the European Communities and their Member States, and the former Yugoslav Republic of Macedonia

OJ L 84, 20.3.2004, p.13.

.

(196) It is also considered that given the scope and the conclusions of the investigation, there are serious disturbances in the steel sector, and that safeguard measures are therefore also justified under Article 26 of the Agreement concluded between the European Economic Community and the Swiss Confederation in 1972

OJ L 300, 31.12.1972, p. 189.

.

(197) Finally, imports originating in Turkey also fulfil the conditions required by Article 12 of the Agreement concluded between the European Coal and Steel Community and the Republic of Turkey on trade in products covered by the Treaty establishing the European Coal and Steel Community

OJ L 227, 7.9.1996, p. 3.

and Article 60 of Additional Protocol signed on 23 November 1970, annexed to the Agreement establishing the Association between the European Economic Community and Turkey

OJ L 293, 29.12.1972, p.3.

.

1. FINAL CONSIDERATIONS

(198) In view of the case-law of the Court of Justice

Judgment of the Court (Third Chamber) of 18 January 2017, C-365/15, Wortmann v Hauptzollamt Bielefeld, EU:C:2017:19, paragraphs 35 to 39.

, it is appropriate to provide for the rate of default interest to be paid in case of any potential reimbursement of definitive duties, because the relevant provisions in force concerning customs duties do not provide for such an interest rate, and the application of national rules would lead to undue distortions between economic operators depending on which Member State is chosen for customs clearance.

(199) The measures provided for in this Regulation are in accordance with the opinion of the Committee on Safeguards established under Article 3(3) of Regulation (EU) 2015/478 and Article 22(3) of Regulation (EU) 2015/755 respectively,

HAS ADOPTED THIS REGULATION:

Article 1

1. Subject to Articles 6 and 7, a tariff quota is hereby opened in relation to imports into the Union of each of the 26 products categories concerned (defined by reference to the CN codes specified in relation to it in Annex I) and each of the periods specified in Annex IV.1 and IV.2.

1. For each of the product categories concerned, and with the exception of product category 1, a part of each tariff-rate quota is allocated to the countries specified in Annex IV.

1. The remaining part of each tariff-rate quota, as well as the tariff-rate quota for product category 1, shall be allocated on a first-come-first-served basis, based on a tariff-rate quota established equally for each quarter of the period of imposition.

1. The drawings on each quarterly quota shall be stopped on the twentieth working day of the Commission following the end of the quarterly period. At the end of each quarter, the unused balances of the tariff-rate quota shall automatically be transferred to the next quarter. No unused balance at the end of the last quarter of each year of application of the definitive tariff-rate quota shall be transferred.

1. Where the relevant quota under paragraph 2 is exhausted for one specific country, imports from that country can be made under the remaining part of the tariff-rate quota for the same product category. That provision shall only apply during the last quarter of each year of application of the definitive tariff-rate quota.

1. Where the relevant tariff-rate quota is exhausted or where imports of the product categories do not benefit from the relevant tariff-rate quota, an additional duty at the rate of 25 %, applicable to the net, free-at-Union-frontier price, before duty, shall be applied on the product categories set out in Annex IV.1.

Article 2

1. The origin of any product to which this Regulation applies shall be determined in accordance with the provisions in force in the Union relating to non-preferential origin.

1. Unless otherwise specified, the provisions in force concerning customs duties shall apply. The default interest to be paid in case of reimbursement that gives rise to a right to payment of default interest shall be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first calendar day of the month in which the deadline falls, increased by one percentage point.

Article 3

The tariff-rate quotas set out in Article 1 shall be managed by the Commission and the Member States in accordance with the management system for tariff-rate quotas provided for in Articles 49 to 54 of Commission Implementing Regulation (EU) 2015/2447.

Article 4

The Member States and the Commission shall cooperate closely to ensure compliance with this Regulation.

Article 5

1. Subject to paragraph 2, imports of the 26 product categories specified in Annex IV originating in one of the countries specified in Annex III shall not be subject to the measures contained in Article 1.

1. For each of the 26 product categories specified in Annex IV, Annex III.2 specifies the originating countries which shall be subject to the measures set out in Article 1.

Article 6

1. Products originating in Norway, Iceland, and Liechtenstein shall not be subject to the measures set out in Article 1.

1. The following countries shall also not be subject to the measures set out in Article 1: Botswana, Cameroon, Fiji, Ghana, Ivory Coast, Lesotho, Mozambique, Namibia, South Africa, Eswatini.

Article 7

Prior surveillance measures in force by means of Commission Implementing Regulation (EU) 2016/670

Commission Implementing Regulation (EU) 2016/670 of 28 April 2016 introducing prior Union surveillance of imports of certain iron and steel products originating in certain third countries (OJ L 115, 29.4.2016, p. 37).

shall be suspended for the products mentioned in Annex IV during the time of the imposition of safeguard measures set out in Article 1.

Article 8

During the period set out in Annexes IV.1 and IV.2 the Commission may review the measures in case of change of circumstances.

Article 9

Any amounts paid in respect of additional duties imposed pursuant to Implementing Regulation (EU) 2018/1013 in relation to the products specified in Annex IV of this Regulation shall be definitively collected at the level set in Article 1(3) of Implementing Regulation (EU) 2018/1013.

Article 10

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 31 January 2019.

For the Commission

The President

Jean-Claude Juncker

Annex

ANNEX I

Product concerned

Product NumberProduct categoryCN Codes1Non Alloy and Other Alloy Hot Rolled Sheets and Strips72081000, 72082500, 72082600, 72082700, 72083600, 72083700, 72083800, 72083900, 72084000, 72085210, 72085299, 72085310, 72085390, 72085400, 72111300, 72111400, 72111900, 72126000, 72251910, 72253010, 72253030, 72253090, 72254015, 72254090, 72261910, 72269120, 72269191, 722691992Non Alloy and Other Alloy Cold Rolled Sheets72091500, 72091690, 72091790, 72091891, 72092500, 72092690, 72092790, 72092890, 72099020, 72099080, 72112320, 72112330, 72112380, 72112900, 72119020, 72119080, 72255020, 72255080, 72262000, 722692003Electrical Sheets (other than GOES)72091610, 72091710, 72091810, 72092610, 72092710, 72092810, 72251990, 722619804Metallic Coated Sheets72102000, 72103000, 72104100, 72104900, 72106100, 72106900, 72109080, 72122000, 72123000, 72125020, 72125030, 72125040, 72125061, 72125069, 72125090, 72259100, 72259200, 72259900, 72269910, 72269930, 722699705Organic Coated Sheets72107080, 721240806Tin Mill products72091899, 72101100, 72101220, 72101280, 72105000, 72107010, 72109040, 72121010, 72121090, 721240207Non Alloy and Other Alloy Quarto Plates72085120, 72085191, 72085198, 72085291, 72089020, 72089080, 72109030, 72254012, 72254040, 722540608Stainless Hot Rolled Sheets and Strips72191100, 72191210, 72191290, 72191310, 72191390, 72191410, 72191490, 72192210, 72192290, 72192300, 72192400, 72201100, 722012009Stainless Cold Rolled Sheets and Strips72193100, 72193210, 72193290, 72193310, 72193390, 72193410, 72193490, 72193510, 72193590, 72199020, 72199080, 72202021, 72202029, 72202041, 72202049, 72202081, 72202089, 72209020, 7220908010Stainless Hot Rolled Quarto Plates72192110, 7219219011Grain-Oriented Electrical Sheet72251100, 7226110012Non Alloy and Other Alloy Merchant Bars and Light Sections72143000, 72149110, 72149190, 72149931, 72149939, 72149950, 72149971, 72149979, 72149995, 72159000, 72161000, 72162100, 72162200, 72164010, 72164090, 72165010, 72165091, 72165099, 72169900, 72281020, 72282010, 72282091, 72283020, 72283041, 72283049, 72283061, 72283069, 72283070, 72283089, 72286020, 72286080, 72287010, 72287090, 7228800013Rebars72142000, 72149910

14Stainless Bars and Light Sections72221111, 72221119, 72221181, 72221189, 72221910, 72221990, 72222011, 72222019, 72222021, 72222029, 72222031, 72222039, 72222081, 72222089, 72223051, 72223091, 72223097, 72224010, 72224050, 7222409015Stainless Wire Rod72210010, 7221009016Non Alloy and Other Alloy Wire Rod72131000, 72132000, 72139110, 72139120, 72139141, 72139149, 72139170, 72139190, 72139910, 72139990, 72271000, 72272000, 72279010, 72279050, 7227909517Angles, Shapes and Sections of Iron or Non Alloy Steel72163110, 72163190, 72163211, 72163219, 72163291, 72163299, 72163310, 7216339018Sheet Piling7301100019Railway Material73021022, 73021028, 73021040, 73021050, 7302400020Gas pipes73063041, 73063049, 73063072, 7306307721Hollow sections73066110, 73066192, 7306619922Seamless Stainless Tubes and Pipes73041100, 73042200, 73042400, 73044100, 73044910, 73044993, 73044995, 7304499923Bearing Tubes and Pipes73045112, 73045118, 73045932, 7304593824Other Seamless Tubes73041910, 73041930, 73041990, 73042300, 73042910, 73042930, 73042990, 73043120, 73043180, 73043910, 73043952, 73043958, 73043992, 73043993, 73043998, 73045181, 73045189, 73045910, 73045992, 73045993, 73045999, 7304900025Large welded tubes73051100, 73051200, 73051900, 73052000, 73053100, 73053900, 7305900026Other Welded Pipes73061110, 73061190, 73061910, 73061990, 73062100, 73062900, 73063011, 73063019, 73063080, 73064020, 73064080, 73065020, 73065080, 73066910, 73066990, 7306900027Non-alloy and other alloy cold finished bars72151000, 72155011, 72155019, 72155080, 72281090, 72282099, 72285020, 72285040, 72285061, 72285069, 7228508028Non Alloy Wire72171010, 72171031, 72171039, 72171050, 72171090, 72172010, 72172030, 72172050, 72172090, 72173041, 72173049, 72173050, 72173090, 72179020, 72179050, 72179090

Annex

ANNEX II

II.1 — Growth in imports for the 26 product categories (in tonnes)

Product NumberProduct category20132014201520162017MRPGrowth MRP compared to 20131Non Alloy and Other Alloy Hot Rolled Sheets and Strips48672425263815785439586108477048217720971848 %2Non Alloy and Other Alloy Cold Rolled Sheets18378751906067276133720072992463937246394134 %3Electrical Sheets (other than GOES)26635528437627977731264737774443352663 %4Metallic Coated Sheets185532522031352688830392490650191324637052150 %5Organic Coated Sheets68164672500462248273061991900093769338 %6Tin Mill products54994166074363472275463861681073592834 %7Non Alloy and Other Alloy Quarto Plates14394301968634257322028347442549694237417065 %8Stainless Hot Rolled Sheets and Strips157197213885247090326631407886408468160 %9Stainless Cold Rolled Sheets and Strips64500495417969719975305886909197241551 %10Stainless Hot Rolled Quarto Plates2679934700315862599527704286777 %12Non Alloy and Other Alloy Merchant Bars and Light Sections9429991265397123332814295111419973179239290 %13Rebars5287029725721430000129293611913791755338232 %14Stainless Bars and Light Sections11463814967014487514949916197318481161 %15Stainless Wire Rod52068712095754258659630226978634 %16Non Alloy and Other Alloy Wire Rod110716912673081694707200132220938772354164113 %17Angles, Shapes and Sections of Iron or Non Alloy Steel22279727486326785138735326275937373268 %

18Sheet Piling158711649714051366838454983502426 %19Railway Material14587255322320212494182322301358 %20Gas pipes27537834907831447135426140141044556962 %21Hollow sections48503857842660219075727486288995636097 %22Seamless Stainless Tubes and Pipes42417555905494851614495934978117 %24Other Seamless Tubes4406965090524487614483334108224806009 %25Large welded tubes2955024188082185491715121053049720886144 %26Other Welded Pipes46213748491549491452663455176455845721 %27Non-alloy and other alloy cold finished bars44608651406647927145492445492150123212 %28Non Alloy Wire55579870056068304172615871448076260037 %

II.2 — Growth in imports for the 2 product categories (in tonnes)

Product NumberProduct category20132014201520162017MRPGrowth MRP compared to 201311Grain-Oriented Electrical Sheet11438811225810173710951899917106570– 7 %23Bearing Tubes and Pipes747589988337703561376265– 16 %

Annex

ANNEX III

III.1 — List of developing countries, members of the WTO

Afghanistan, Albania, Angola, Antigua and Barbuda, Argentina, Armenia, Bahrain, Bangladesh, Barbados, Belize, Benin, Bolivia, Botswana, Brazil, Brunei Darussalam, Burkina Faso, Burundi, Cabo Verde, Cambodia, Cameroon, Central African Republic, Chad, Chile, China, Colombia, Congo, Costa Rica, Côte d'Ivoire, Cuba, Democratic Republic of the Congo, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Eswatini, Fiji, Gabon, Gambia, Georgia, Ghana, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong Kong, India, Indonesia, Jamaica, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyz Republic, Lao People's Democratic Republic, Lesotho, Liberia, Macao, Madagascar, Malawi, Malaysia, Maldives, Mali, Mauritania, Mauritius, Mexico, Moldova, Mongolia, Montenegro, Morocco, Mozambique, Myanmar, Namibia, Nepal, Nicaragua, Niger, Nigeria, Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Qatar, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Solomon Islands, South Africa, Sri Lanka, Suriname, Tajikistan, Tanzania, Thailand, Former Yugoslav Republic of Macedonia, Togo, Tonga, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Arab Emirates, Uruguay, Vanuatu, Venezuela, Vietnam, Yemen, Zambia, Zimbabwe.

III.2 — List of product categories originating in developing countries to which the definitive measures apply

Country / Product group1234567891012131415161718192021222425262728BrazilxxxxxxxChinaxxxxxxxxxxxxxxxxEgyptxxFormer Yugoslav Republic of MacedoniaxxxxIndiaxxxxxxxxxxxxxxxIndonesiaxMalaysiaxMexicoxMoldovaxxThailandxTurkeyxxxxxxxxxxxxxxxxxUkrainexxxxxxxxxxxxxxUnited Arab EmiratesxxxxVietnamxxx

Annex

ANNEX IV

IV.1 — Volumes of tariff–rate quotas

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8601.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8602

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8603.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8604

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8605.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8606

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8607.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8608

Products subject to anti-dumping duties

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8609.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8610

Products which are not subject to anti-dumping duties (including automotive)

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8611.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8612

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8613.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8614

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8615.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8616

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8617.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8618

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8619.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8620

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8621.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8622

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8623.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8624

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8625.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8626

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8627.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8628

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8629.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8630

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8631.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8632

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8633.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8634

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8635.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8636

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8637.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8638

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8639.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8640

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8641.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8642

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8643.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8644

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8645.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8646

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8647.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8648

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8649.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8650

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8651.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8652

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8653.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8654

From 2.2.2019 to 31.3.2019, from 1.7.2019 to 31.3.2020 and from 1.7.2020 to 31.3.2021: 09.8655.

From 1.4.2019 to 30.6.2019, from 1.4.2020 to 30.6.2020 and from 1.4.2021 to 30.6.2021: 09.8656

Product NumberProduct categoryCN CodesAllocation by country (Where Applicable)From 2.2.2019 to 30.6.2019From 1.7.2019 to 30.6.2020From 1.7.2020 to 30.6.2021Additional duty rateOrder numbersVolume of tariff–rate quota (net tonnes)Volume of tariff–rate quota (net tonnes)Volume of tariff–ratet quota (net tonnes)1Non Alloy and Other Alloy Hot Rolled Sheets and Strips72081000, 72082500, 72082600, 72082700, 72083600, 72083700, 72083800, 72083900, 72084000, 72085210, 72085299, 72085310, 72085390, 72085400, 72111300, 72111400, 72111900, 72126000, 72251910, 72253010, 72253030, 72253090, 72254015, 72254090, 72261910, 72269120, 72269191, 72269199All third countries3359532,088641212,549073273,1625 %2Non Alloy and Other Alloy Cold Rolled Sheets72091500, 72091690, 72091790, 72091891, 72092500, 72092690, 72092790, 72092890, 72099020, 72099080, 72112320, 72112330, 72112380, 72112900, 72119020, 72119080, 72255020, 72255080, 72262000, 72269200India234714,39603720,07633906,0725 %09.8801Korea (Republic of)144402,99371425,82389997,1125 %09.8802Ukraine102325,83263197,14276357,0025 %09.8803Brazil65398,61168214,89176625,6425 %09.8804Serbia56480,21145275,43152539,2025 %09.8805Other countries430048,961106149,421161456,8925 %3.AElectrical Sheets (other than GOES)72091610, 72091710, 72091810, 72092610, 72092710, 72092810Korea (Republic of)1923,964948,725196,1525 %09.8806China822,982116,842222,6825 %09.8807Russia519,691336,711403,5425 %09.8808Iran (Islamic Republic of)227,52585,21614,4725 %09.8809Other countries306,34787,96827,3525 %

3.B72251990, 72261980Russia51426,29132276,00138889,8025 %09.8811Korea (Republic of)31380,4080715,0284750,7725 %09.8812China24187,0162212,5765323,2025 %09.8813Taiwan18144,9746671,5449005,1225 %09.8814Other countries8395,3921594,1922673,9025 %4.AMetallic Coated SheetsTARIC Codes: 7210410020, 7210490020, 7210610020, 7210690020, 7212300020, 7212506120, 7212506920, 7225920020, 7225990011, 7225990022, 7225990040, 7225990091, 7225990092, 7226993010, 7226997011, 7226997091, 7226997094Korea (Republic of)69571,10178947,15187894,5125 %09.8816India83060,42213643,66224325,8425 %09.8817Other countries761518,931958739,132056676,0925 %4.B

CN Codes: 72102000, 72103000, 72109080, 72122000, 72125020, 72125030, 72125040, 72125090, 72259100, 72269910

TARIC codes: 7210410080, 7210490080, 7210610080, 7210690080, 7212300080, 7212506180, 7212506980, 7225920080, 7225990025, 7225990095, 7226993090, 7226997019, 7226997096

China204951,07527164,42553522,6425 %09.8821Korea (Republic of)249533,26641836,39673928,2125 %09.8822India118594,25305041,91320294,0025 %09.8823Taiwan49248,78126675,12133008,8825 %09.8824Other countries125598,05323056,72339209,5525 %

5Organic Coated Sheets72107080, 72124080India108042,36277900,89291795,9425 %09.8826Korea (Republic of)103354,11265842,04279134,1425 %09.8827Taiwan31975,7982246,4686358,7925 %09.8828Turkey21834,4556161,4258969,4925 %09.8829Former Yugoslav Republic of Macedonia16331,1542006,1344106,4425 %09.8830Other countries43114,71110897,39116442,2625 %6Tin Mill products72091899, 72101100, 72101220, 72101280, 72105000, 72107010, 72109040, 72121010, 72121090, 72124020China158139,17406757,31427095,1725 %09.8831Serbia30545,8878568,5282496,9525 %09.8832Korea (Republic of)23885,7061437,5564509,4225 %09.8833Taiwan21167,0054444,6557166,8825 %09.8834Brazil19730,0350748,5553285,9825 %09.8835Other countries33167,3085311,1989576,7525 %7Non Alloy and Other Alloy Quarto Plates72085120, 72085191, 72085198, 72085291, 72089020, 72089080, 72109030, 72254012, 72254040, 72254060Ukraine339678,24873702,59917387,7125 %09.8836Korea (Republic of)140011,38360129,93378136,4325 %09.8837Russia115485,12297044,77311897,0125 %09.8838India74811,09192425,17202046,4325 %09.8839Other countries466980,801201143,581261200,7625 %

8Stainless Hot Rolled Sheets and Strips72191100, 72191210, 72191290, 72191310, 72191390, 72191410, 72191490, 72192210, 72192290, 72192300, 72192400, 72201100, 72201200China87328,82224622,62235853,7525 %09.8841Korea (Republic of)18082,3346510,4348835,9525 %09.8842Taiwan12831,0733003,4134653,5825 %09.8843United States of America11810,3030377,8431896,7425 %09.8844Other countries10196,6126227,1927538,5525 %9Stainless Cold Rolled Sheets and Strips72193100, 72193210, 72193290, 72193310, 72193390, 72193410, 72193490, 72193510, 72193590, 72199020, 72199080, 72202021, 72202029, 72202041, 72202049, 72202081, 72202089, 72209020, 72209080Korea (Republic of)70813,18182141,97191249,0725 %09.8846Taiwan65579,14168679,23177113,1925 %09.8847India42720,54109883,53115377,7125 %09.8848United States of America35609,5291592,9496172,5925 %09.8849Turkey29310,6975391,4179160,9825 %09.8850Malaysia19799,2450926,5753472,9025 %09.8851Vietnam16832,2843295,1045459,8625 %09.8852Other countries50746,86130528,43137054,8525 %10Stainless Hot Rolled Quarto Plates72192110, 72192190China6765,5017401,8618271,9525 %09.8856India2860,337357,207725,0625 %09.8857Taiwan1119,342879,113023,0625 %09.8858Other countries1440,073704,073889,2725 %

12Non Alloy and Other Alloy Merchant Bars and Light Sections72143000, 72149110, 72149190, 72149931, 72149939, 72149950, 72149971, 72149979, 72149995, 72159000, 72161000, 72162100, 72162200, 72164010, 72164090, 72165010, 72165091, 72165099, 72169900, 72281020, 72282010, 72282091, 72283020, 72283041, 72283049, 72283061, 72283069, 72283070, 72283089, 72286020, 72286080, 72287010, 72287090, 72288000China166217,87427536,89448913,7425 %09.8861Turkey114807,87295302,79310067,9325 %09.8862Russia94792,44243820,15256011,1625 %09.8863Switzerland73380,52188745,54198182,8125 %09.8864Belarus57907,73148947,24156394,6025 %09.8865Other countries76245,19196113,88205919,5725 %13Rebars72142000, 72149910Turkey117231,80301537,50316614,3725 %09.8866Russia94084,20241998,46254098,3825 %09.8867Ukraine62534,65160848,36168890,7725 %09.8868Bosnia and Herzegovina39356,10101229,71106291,2025 %09.8869Moldova28284,5972752,1476389,7425 %09.8870Other countries217775,50560150,74588158,2814Stainless Bars and Light Sections72221111, 72221119, 72221181, 72221189, 72221910, 72221990, 72222011, 72222019, 72222021, 72222029, 72222031, 72222039, 72222081, 72222089, 72223051, 72223091, 72223097, 72224010, 72224050, 72224090India44433,00114288,24120002,6525 %09.8871Switzerland6502,7516726,0317562,3325 %09.8872Ukraine5733,5014747,4115484,7825 %09.8873Other countries8533,2421948,7523046,1925 %

15Stainless Wire Rod72210010, 72210090India10135,2326069,3127372,7825 %09.8876Taiwan6619,6817026,7917878,1325 %09.8877Korea (Republic of)3300,078488,268912,6725 %09.8878China2216,865702,095987,2025 %09.8879Japan2190,405634,035915,7325 %09.8880Other countries1144,432943,643090,8225 %16Non Alloy and Other Alloy Wire Rod72131000, 72132000, 72139110, 72139120, 72139141, 72139149, 72139170, 72139190, 72139910, 72139990, 72271000, 72272000, 72279010, 72279050, 72279095Ukraine149009,10383273,39402437,0625 %09.8881Switzerland141995,22365232,67383494,3125 %09.8882Russia122883,63316074,84331878,5925 %09.8883Turkey121331,08312081,44327685,5125 %09.8884Belarus97436,46250620,96263152,0125 %09.8885Moldova73031,65187848,18197240,5925 %09.8886Other countries122013,20313835,96329527,7625 %17Angles, Shapes and Sections of Iron or Non Alloy Steel72163110, 72163190, 72163211, 72163219, 72163291, 72163299, 72163310, 72163390Ukraine42915,19110384,21115903,4225 %09.8891Turkey38465,0398937,73103884,6125 %09.8892Korea (Republic of)10366,7626664,8427998,0925 %09.8893Russia9424,0824240,1225452,1225 %09.8894Brazil8577,9522063,7423166,9325 %09.8895Switzerland6648,0117099,6617954,6525 %09.8896Other countries14759,9237964,7039862,9325 %

18Sheet Piling73011000China12198,2431375,6832944,4625 %09.8901United Arab Emirates6650,4117105,8417961,1325 %09.8902Other countries480,041234,731296,4625 %19Railway Material73021022, 73021028, 73021040, 73021050, 73024000Russia2147,195522,905799,0525 %09.8906China2145,075517,425793,3025 %09.8907Turkey1744,684487,584711,9625 %09.8908Ukraine657,601691,461776,0325 %09.8909Other countries1010,852600,062730,0725 %20Gas pipes73063041, 73063049, 73063072, 73063077Turkey88914,68228701,68240136,7725 %09.8911India32317,4083125,1287281,3725 %09.8912Former Yugoslav Republic of Macedonia9637,4824789,0126028,4625 %09.8913Other countries22028,8756661,5259494,5925 %21Hollow sections73066110, 73066192, 73066199Turkey154436,15397232,59417094,2225 %09.8916Russia35406,2891070,1895623,6825 %09.8917Former Yugoslav Republic of Macedonia34028,9587527,4891903,8525 %09.8918Ukraine25240,7464922,9268169,0625 %09.8919Switzerland25265,2957369,4060237,8725 %09.8920Belarus20898,7953754,7856442,5225 %09.8921Other countries25265,2964986,0568235,3625 %

22Seamless Stainless Tubes and Pipes73041100, 73042200, 73042400, 73044100, 73044910, 73044993, 73044995, 73044999India8315,9021389,7122459,2025 %09.8926Ukraine5224,9413439,3314111,2925 %09.8927Korea (Republic of)1649,314242,274454,3925 %09.8928Japan1590,454090,864295,4125 %09.8929United States of America1393,263583,683762,8625 %09.8930China1299,983343,743510,9225 %09.8931Other countries2838,177300,207665,2125 %24Other Seamless Tubes73041910, 73041930, 73041990, 73042300, 73042910, 73042930, 73042990, 73043120, 73043180, 73043910, 73043952, 73043958, 73043992, 73043993, 73043998, 73045181, 73045189, 73045910, 73045992, 73045993, 73045999, 73049000China49483,75127279,51133643,4825 %09.8936Ukraine36779,8994603,3299333,4925 %09.8937Belarus19655,3150556,3553084,1725 %09.8938Japan13766,0435408,2937178,7125 %09.8939United States of America12109,5331147,5032704,8725 %09.8940Other countries55345,57142356,97149474,8225 %25Large welded tubes73051100, 73051200, 73051900, 73052000, 73053100, 73053900, 73059000Russia140602,32361649,91379732,4125 %09.8941Turkey17543,4045124,2247380,4325 %09.8942China14213,6336559,5638387,5425 %09.8943Other countries34011,8687483,5291857,7025 %

26Other Welded Pipes73061110, 73061190, 73061910, 73061990, 73062100, 73062900, 73063011, 73063019, 73063080, 73064020, 73064080, 73065020, 73065080, 73066910, 73066990, 73069000Switzerland64797,98166669,96175003,4625 %09.8946Turkey60693,64156113,01163918,6625 %09.8947United Arab Emirates18676,4048038,4650440,3825 %09.8948China18010,2246324,9648641,2025 %09.8949Taiwan14374,2036972,5638821,1925 %09.8950India11358,8729216,6930677,5325 %09.8951Other countries36898,5794908,5799653,9925 %27Non-alloy and other alloy cold finished bars72151000, 72155011, 72155019, 72155080, 72281090, 72282099, 72285020, 72285040, 72285061, 72285069, 72285080Russia117519,41302277,28317391,1425 %09.8956Switzerland27173,2269893,5473388,2225 %09.8957China20273,2652145,8254753,1225 %09.8958Ukraine15969,0241074,6743128,4025 %09.8959Other countries17540,4745116,6947372,5225 %28Non Alloy Wire72171010, 72171031, 72171039, 72171050, 72171090, 72172010, 72172030, 72172050, 72172090, 72173041, 72173049, 72173050, 72173090, 72179020, 72179050, 72179090Belarus88294,51227106,51238461,8425 %09.8961China66719,82171613,24180193,9025 %09.8962Russia41609,21107025,04112376,2925 %09.8963Turkey40302,46103663,89108847,0825 %09.8964Ukraine26755,0968818,0572258,9525 %09.8965Other countries39770,29102295,06107409,8125 %

IV.2 — Volumes of global tariff–rate quotas per trimester

YEAR 1YEAR 2YEAR 3Product numberFrom 2.2.2019 to 31.3.2019From 1.4.2019 to 30.6.2019From 1.7.2019 to 30.9.2019From 1.10.2019 to 31.12.2019From 1.1.2020 to 31.3.2020From 1.4.2020 to 30.6.2020From 1.7.2020 to 30.9.2020From 1.10.2020 to 31.12.2020From 1.1.2021 to 31.3.2021From 1.4.2021 to 30.6.20211Other countries1307737,322051794,762172108,072172108,072148498,202148498,202286962,002286962,002237245,442262103,722Other countries167401,61262647,35278048,49278048,49275026,22275026,22292750,78292750,78286386,63289568,703AOther countries119,25187,09198,07198,07195,91195,91208,54208,54204,01206,273BOther countries3268,015127,395428,055428,055369,055369,055715,075715,075590,825652,944AOther countries296430,19465088,74492360,66492360,66487008,91487008,91518395,07518395,07507125,61512760,344BOther countries48890,5176707,5381205,5181205,5180322,8480322,8485499,3985499,3983640,7184570,055Other countries16782,9126331,8027875,8527875,8527572,8527572,8529349,8329349,8328711,7929030,816Other countries12910,7620256,5421444,3421444,3421211,2521211,2522578,2522578,2522087,4222332,837Other countries181777,76285203,04301926,80301926,80298644,99298644,99317891,70317891,70310981,01314436,358Other countries3969,156227,466592,636592,636520,976520,976941,226941,226790,336865,789Other countries19753,8130993,0532810,4232810,4232453,7932453,7934545,3334545,3333794,3534169,8410Other countries560,56879,51931,08931,08920,96920,96980,31980,31959,00969,6512Other countries29679,3346565,8549296,3849296,3848760,5548760,5551903,0151903,0150774,6951338,85

13Other countries84771,67133003,83140802,92140802,92139272,45139272,45148248,11148248,11145025,33146636,7214Other countries3321,665211,585517,175517,175457,205457,205808,905808,905682,625745,7615Other countries445,48698,95739,93739,93731,89731,89779,06779,06762,12770,5916Other countries47495,0774518,1378887,7378887,7378030,2578030,2583059,0583059,0581253,4282156,2417Other countries5745,479014,459543,049543,049439,319439,3110047,6410047,649829,229938,4318Other countries186,86293,18310,37310,37306,99306,99326,78326,78319,68323,2319Other countries393,49617,37653,57653,57646,46646,46688,13688,13673,17680,6520Other countries8575,0013453,8814242,7914242,7914087,9714087,9714995,9014995,9014669,9014832,9021Other countries9834,8115430,4816335,2916335,2916157,7316157,7317199,0517199,0516825,1617012,1022Other countries1104,791733,381835,021835,021815,081815,081932,051932,051890,051911,0524Other countries21543,9133801,6535783,7235783,7235394,7735394,7737675,8437675,8436856,8037266,3225Other countries13239,5220772,3421990,3921990,3921751,3721751,3723153,1723153,1722649,8422901,5126Other countries14363,2022535,3723856,8023856,8023597,4823597,4825118,2725118,2724572,2224845,2427Other countries6827,8410712,6411340,8111340,8111217,5411217,5411940,4711940,4711680,9011810,6828Other countries15481,0524289,2425713,5125713,5125434,0225434,0227073,1627073,1626484,6126778,88