All steel sold into Northern Ireland that does not originate from anywhere in the UK will be subject to a 25% duty owing to the UK's withdrawal from the European Union.
Photo: Free-Photos / Pixabay
According to information revealed to Argus, the duties have been imposed without warning and many traders were informed during phone calls with government officials.
Read more: Orsted joins low-carbon steel group as share prices drop
The UK has quarterly steel safeguards that began on January 1 - when it formally withdrew from the EU - with its quota being similar to the European system. Northern Ireland is not included on the list, but any steel that originates outside of the UK will incur a 25% levy.
Many traders have since sent steel into Northern Ireland unaware of the cost, leading to confusion and uncertainty regarding the situation.
The levy will not be permanent for imports from the EU, but HMRC has revealed that imports from non-bloc states such as Turkey will be subject to the duties for at least six months.
As a result, many traders are considering importing their product to other jurisdictions to avoid paying the cost.
Read more: UK car industry warns of Brexit costs with rising need for investment
The quota has not been updated since the announcement, causing a lack of transparency regarding whether certain imports to the UK will incur a tax.
Some suppliers have also stopped importing to the UK while the levy remains in place. Various markets have seen a surge in demand, but rising costs and supply issues.
The threat of a shortage could make the UK's quota more difficult to reach.
Back to Homepage
Back to Metals & Mining