This statutory instrument amends several sets of customs regulations to establish a distinct regulatory framework for steel imports and modify import duty liabilities.
It introduces a Steel Quota Table to manage specific steel product volumes, imposes a 40% limit on quota allocations from any single country of origin, and clarifies that unused steel quotas in certain categories cannot be carried over between periods.
The regulations apply to HM Revenue and Customs, the Department for Business and Trade, and any persons or businesses involved in the importation and processing of steel and other quota-regulated goods within the United Kingdom.
Arguments For
The explanatory note states that the regulations are necessary to implement specific quotas for certain steel products through the introduction of a dedicated Steel Quota Table.
The document asserts that the Treasury had regard to recommendations from the Secretary of State and considered international arrangements to which the UK is a party, as required by the Taxation (Cross-border Trade) Act 2018.
The legislation specifies that the 40% cap on steel imports from a single origin is intended to regulate the volume of goods qualifying as quota goods within a specific period.
Proponents may argue that the amendments to the CSPOP Regulations ensure duty liability for processed steel products is determined accurately by referencing the state of the goods when they were first declared.
Arguments Against
Importers may face increased administrative complexity due to the separation of quota management into Steel and Non-steel tables with different carry-over rules.
The 40% volume restriction on steel imports from a single country could be viewed by trade partners as a limitation on market access for specific territories.
Legal scholars might note that the regulations rely on external reference documents (versions 4.5 and 1.0 of various tables) which are updated outside the primary text of the statutory instrument, potentially affecting transparency.
Industry groups in the maritime sector may express concern regarding the removal of certain steel products from the 'shipwork authorised use measure', which previously allowed 0% tariffs for specific vessel-related imports.
Citation, commencement and extent
- -(1) These Regulations may be cited as the Customs (Tariff and Miscellaneous Amendments) (No. 5) Regulations 2026 and come into force on 1st July 2026.
- (2) These Regulations extend to England and Wales, Scotland and Northern Ireland.
This section establishes the official title of the regulations and sets the commencement date for all provisions as 1st July 2026.
It further specifies that the legal reach of these regulations encompasses the entire United Kingdom, including England, Wales, Scotland, and Northern Ireland.
Amendment of the Customs (Tariff Quotas) (EU Exit) Regulations 2020
- The Customs (Tariff Quotas) (EU Exit) Regulations 2020 are amended in accordance with regulations 3 to 12.
This part identifies the primary 2020 regulations that are being modified.
It serves as an introductory provision for the subsequent ten regulations which specifically update the UK's tariff quota system.
Amendment to regulation 2 (general interpretation)
- -(1) Regulation 2(1) (general interpretation) is amended as follows.
(2) For the definition of 'Quota Table' substitute-
''Quota Table' means-
- (a) in relation to goods other than steel products, the Non-steel Quota Table;
- (b) in relation to steel products, the Steel Quota Table;'.
(3) In the appropriate places insert-
''Non-steel Quota Table' means the table comprising three Parts named 'Quota Table' in the document entitled 'Tariff Quotas, version 4.5' dated 12th May 2026;';
''Steel Quota Table' means the table comprising two Parts which is so named in the document entitled 'Steel Tariff Quotas, version 1.0' dated 26th May 2026;'.
This section updates the definitions used in customs law to distinguish between general goods and steel products.
It formally incorporates two external reference documents into the law: version 4.5 of the general Tariff Quotas and version 1.0 of the Steel Tariff Quotas.
Amendment to regulation 9 (quota goods)
- -(1) Regulation 9 (quota goods) is amended as follows.
- (2) In paragraph (1), for 'Goods qualify' substitute 'Subject to paragraph (1A), goods qualify'.
- (3) After paragraph (1) insert-
'(1A) In the case of goods listed in Part B of the Steel Quota Table, where the quantity of goods originating from a country or territory and imported into the United Kingdom during a quota period exceeds 40% of the quota volume for those goods, only the quantity of those goods which is within 40% of the relevant quota volume qualifies as quota goods.
(1B) For the purposes of paragraph (1A), where one or more consignments of goods originating from a country or territory and imported into the United Kingdom is or are of a quantity which is partly within 40% of the quota volume for those goods but which also partly exceeds that 40% of the quota volume, only the quantity of those goods which is within 40% of the relevant quota volume qualifies as quota goods.'.
This provision restricts the volume of steel products from any single country that can benefit from preferential quota rates.
It mandates that once imports from one country reach 40% of the total available quota, any additional amounts from that same country must be treated as non-quota goods for that period.
Amendment to regulation 14 (allocation of quotas over more than one period)
- -(1) Regulation 14 (allocation of quotas over more than one period) is amended as follows.
(2) In paragraph (2)-
- (a) for 'paragraph (3), on the expiry of a quota period' substitute 'paragraphs (2A) and (3), on the relevant day';
- (b) after 'there is quota volume' insert 'which applies for the preceding quota period';
- (c) for 'following' substitute 'current'.
(3) After paragraph (2) insert-
'(2A) Paragraph (2) does not apply to quota volumes in Part B of the Steel Quota Table.'.
- (4) In paragraph (3)-
- (a) after 'quota volume' insert 'which applies for the preceding quota period';
- (b) for 'expiry of a quota period which closes on 31st December' substitute 'relevant day after the end of the quota year';
- (c) for 'following' substitute 'current'.
(5) After paragraph (3) insert-
'(4) In this regulation-
'relevant day' means-
- (a) in relation to a quota in the Steel Quota Table, the twentieth working day after the day on which a quota period closes;
- (b) in relation to a quota in the Non-steel Quota Table, the day after the day on which a quota period closes;
'relevant day after the end of the quota year' means-
- (a) in relation to a quota in the Steel Quota Table, the twentieth working day after 30th June;
- (b) in relation to a quota in the Non-steel Quota Table, 1st January.'.
This section modifies how unused quotas are transferred from one period to the next.
It specifically prohibits the carry-over of unused steel quota volumes listed in Part B of the Steel Quota Table and defines the 'relevant day' for calculating these transfers for both steel and non-steel categories.
Amendment of the heading of Chapter 3 (licensed quotas: Part C of the quota table)
- In the heading of Chapter 3 (licensed quotas: Part C of the quota table), for 'Part C of the Quota Table' substitute 'Part C of the Non-steel Quota Table'.
This is a technical amendment to a chapter heading.
It specifies that the licensing rules for 'Part C' apply only to the Non-steel Quota Table, reflecting the fact that the Steel Quota Table does not contain a Part C.
Amendment to regulation 17 (quota goods)
- In regulation 17 (quota goods), for 'Part C of the Quota Table', in each place it occurs, substitute 'Part C of the Non-steel Quota Table'.
This section updates internal references within the quota regulations.
It ensures that the specific rules for goods qualifying under Part C are correctly linked to the Non-steel Quota Table.
Amendment to regulation 18 (calculating the quota duty rate)
- In regulation 18(a) (calculating the quota duty rate), for 'Part C of the Quota Table' substitute 'Part C of the Non-steel Quota Table'.
The text directs that the methodology for calculating duty rates for licensed quotas applies exclusively to the Non-steel Quota Table.
This maintains consistency with the new split between steel and general goods.
Amendment to regulation 19 (applying the quota duty rate)
- In regulation 19 (applying the quota duty rate), in both places it occurs, for 'Part C of the Quota Table' substitute 'Part C of the Non-steel Quota Table'.
This provision clarifies that the application of duty rates for licensed quotas is restricted to items found in the Non-steel version of the quota table.
Amendment of the heading of Part 3 (import licences: Part C of the quota table and the preferential quota table)
- In the heading of Part 3 (import licences: Part C of the quota table and the preferential quota table), for 'Part C of the Quota Table' substitute 'Part C of the Non-steel Quota Table'.
This amendment changes a Part heading within the 2020 Regulations.
It ensures the title accurately reflects that import licenses for Part C apply to non-steel products.
Amendment to regulation 20 (application of this Part)
- In regulation 20(a) (application of this Part), for 'Part C of the Quota Table' substitute 'Part C of the Non-steel Quota Table'.
The section clarifies the scope of Part 3 of the 2020 Regulations.
It confirms that the administrative rules for these import licences apply to goods in the Non-steel Quota Table.
Amendment to regulation 21 (interpretation of this Part)
- In regulation 21(2)(a)(i) (interpretation of this Part), for 'Part C of the Quota Table' substitute 'Part C of the Non-steel Quota Table'.
This technical update ensures the interpretation of terms within the licensing section remains consistent with the newly separated quota tables.
Amendment of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018
- The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 are amended in accordance with regulations 14 to 17.
This provision introduces amendments to the 2018 Regulations governing special customs procedures, such as inward and outward processing.
It sets the stage for changes to how duty is calculated when goods are modified.
Amendment to regulation 2 (interpretation)
- In regulation 2 (interpretation), at the appropriate places insert-
''excepted goods' means goods classified under a commodity code listed in the Table headed 'Excepted Goods Table' in Annex III of Part Three of the Tariff of the United Kingdom;';
''Tariff of the United Kingdom' has the meaning given by regulation 1(2) of the Customs Tariff (Establishment) (EU Exit) Regulations 2020;'.
This section introduces new definitions to the 2018 Regulations.
It defines 'excepted goods' by reference to specific commodity codes in the UK's tariff schedule and formalizes the definition of the 'Tariff of the United Kingdom'.
Amendment to regulation 18G (liability to import duty where there is a change in the goods)
- -(1) Regulation 18G (liability to import duty where there is a change in the goods) is amended as follows.
(2) In paragraph (6)(b)-
- (a) in the opening words, omit 'if a declaration of those goods for the free-circulation procedure had been accepted';
- (b) before paragraph (i) insert-
'(ai) the goods were excepted goods;';
- (c) at the beginning of paragraph (i) insert 'if a declaration of those goods for the freecirculation procedure had been accepted,';
- (d) at the beginning of paragraph (ii) insert 'if a declaration of those goods for the freecirculation procedure had been accepted,'.
(3) In paragraph (7)-
- (a) in the opening words, omit 'if a declaration of those goods for the free-circulation procedure were accepted';
- (b) before sub-paragraph (a) insert-
'(za) the goods are excepted goods;';
- (c) at the beginning of sub-paragraph (a) insert 'if a declaration of those goods for the freecirculation procedure were accepted,';
- (d) at the beginning of sub-paragraph (b) insert 'if a declaration of those goods for the freecirculation procedure were accepted,'.
(4) In paragraph (8)(a)-
- (a) in the opening words-
- (i) omit 'the goods are not ones in relation to which, if a declaration of those goods for the free-circulation procedure were accepted';
- (ii) after 'granted' insert ', the goods are not';
- (b) before paragraph (i) insert-
'(ai) excepted goods;';
- (c) at the beginning of paragraph (i) insert 'ones in relation to which, if a declaration of those goods for the free-circulation procedure had been accepted,';
- (d) at the beginning of paragraph (ii) insert 'ones in relation to which, if a declaration of those goods for the free-circulation procedure had been accepted,'.
This regulation modifies how duty is calculated for goods that have changed during customs procedures.
It ensures that for 'excepted goods' (including processed steel), duty is based on the original state of the goods when they first entered the procedure, unless specific conditions for free circulation are met.
Amendment to regulation 23 (liability to import duty where there is a change in the goods)
- -(1) Regulation 23 (liability to import duty where there is a change in the goods) is amended as follows.
(2) In paragraph (3)(b)-
- (a) in the opening words, omit 'if a declaration of those goods for the free-circulation procedure had been accepted';
- (b) before paragraph (i) insert-
'(ai) the goods were excepted goods;';
- (c) at the beginning of paragraph (i) insert 'if a declaration of those goods for the freecirculation procedure had been accepted,';
- (d) at the beginning of paragraph (ii) insert 'if a declaration of those goods for the freecirculation procedure had been accepted,'.
(3) In paragraph (4)(b)-
- (a) in the opening words, omit 'if a declaration of those goods for the free-circulation procedure were accepted';
- (b) before paragraph (i) insert-
'(ai) the goods are excepted goods;';
- (c) at the beginning of paragraph (i) insert 'if a declaration of those goods for the freecirculation procedure were accepted,';
- (d) at the beginning of paragraph (ii) insert 'if a declaration of those goods for the freecirculation procedure were accepted,'.
(4) In paragraph (5)(a)-
- (a) in the opening words-
- (i) omit 'the goods are not ones in relation to which, if a declaration of those goods for the free-circulation procedure were accepted';
- (ii) after 'granted' insert ', the goods are not';
- (b) before paragraph (i) insert-
'(ai) excepted goods;';
- (c) at the beginning of paragraph (i) insert 'ones in relation to which, if a declaration of those goods for the free-circulation procedure had been accepted,';
- (d) at the beginning of paragraph (ii) insert 'ones in relation to which, if a declaration of those goods for the free-circulation procedure had been accepted,'.
These amendments replicate the changes made in regulation 15 for separate instances of goods changing status.
They direct that the tax liability for 'excepted goods' is determined by their initial classification rather than their modified state after processing.
Amendment to regulation 32 (authorised uses)
- In regulation 32(2) (authorised uses), for '2.24', dated 12th May 2026' substitute '2.25', dated 26th May 2026'.
This regulation updates the reference to the document defining 'authorised use'.
The update effectively removes certain steel products from a measure that allowed them to be imported at a 0% tariff rate for maritime-related construction and repair.
Amendment of the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020
- In regulation 20(4) of the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020 (lower rate of import duty - goods declared for an authorised use procedure), for '1.24', dated 12th May 2026' substitute '1.25', dated 26th May 2026'.
This final section updates the 'authorised use rates' document to version 1.25.
This change aligns with regulation 17 to ensure that the lower duty rates and relief eligibility reflect the removal of specific steel products from the maritime shipwork measure.
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