The “melt and pour” requirement the regulation introduces will apply from October 1, 2026. The European Commission is required to adopt detailed implementing rules specifying the evidence required by August 31, 2026. By June 30, 2028, the Commission shall, based on the information collected pursuant to “melt and pour” requirement, assess whether it is necessary to designate the country of “melt and pour” as the basis for benefiting from the tariff quotas provided for in this regulation. Based on that assessment, the Commission may submit a legislative proposal to the European Parliament and to the Council.

By 30 June 2027, the Commission shall assess the necessity of amending the product scope, taking into account in particular whether it should cover additional products that are made of, or contain, a significant amount of steel, including as a matter of priority downstream iron and steel products not covered by the regulation. Where sufficient evidence is gathered in its assessment demonstrating that necessity, the Commission may without undue delay submit a legislative proposal to the European Parliament and to the Council.

By June 30, 2029 and every three years thereafter the implementation of the regulation, the Commission shall evaluate the effectiveness of this regulation, after having carried out broad consultations with stakeholders throughout the steel value chain.

The regulation sets the total annual tariff-rate quota at 18,345,922 mt, while imports within the quota will remain duty-free, while volumes exceeding the quota will be subject to a 50 percent tariff, a sharp increase compared to the previous 25 percent safeguard duty. Depending on the product category, quota volume reductions of up to 90 percent will be implemented. However, details regarding the country-specific quota allocations have not yet been announced.

Accordingly, the new system maintains the principle of open trade and strengthens engagement with global partners to tackle overcapacity, by

1. limiting tariff-free import volumes to 18.3 million mt a year (a reduction of 47 percent compared to the 2024 steel quotas),
2. doubling the level of out-of-quota duty to 50 percent, compared to the 25 percent under the safeguard, and
3. strengthening the traceability of steel markets by introducing a “Melt and Pour” requirement to prevent circumvention.

The quota volumes of various long steel products can be seen in the table below.

• Merchant Bars and Light Sections    881,735 metric tons
• Reinforcing bars    844,526 metric tons
• Wire Rods    1,569,532 metric tons

Under the new regulation, the EU will maintain free-of-duty tariff quotas equivalent to pre-overcapacity market conditions – calculated based on the 2013 import share of around 13 percent of EU consumption, resulting in an annual total quota volume of 18.3 million mt. The EU’s import volume will decrease as a result of the decline in the quota volume. The quotas will be administered on a quarterly basis, without carry-over between quarters, to avoid market flooding. The quotas will also be allocated per product category based on the share of imports that each product category held over the 2022-24 period. If deemed necessary, the European Commission may implement country-specific quotas or restrictions. Once these quotas are exhausted, a 50 percent tariff will apply, up from the current 25 percent, in line with global tariff levels with an aim to minimize the risk of trade diversion.

The measures will require importers to declare the country of “melt and pour” origin, verifying where the steel was originally produced in liquid form to prevent circumvention.

The Commission will make an assessment at the latest within two years following the adoption of this regulation to evaluate the necessity to adjust the scope of products and, if deemed necessary, it will consider making a legislative proposal to add additional steel products, including products that are made of or contain a significant amount of steel. In addition, the Commission shall evaluate the effectiveness of this regulation before July 1, 2031, and every five years thereafter.