A fabricator in the Midlands orders hot-rolled coil from abroad, the same way it has for years. This time the customs entry comes back with a duty line worth half the value of the shipment. Nothing was wrong with the paperwork. The quota for that steel category and origin had simply been used up for the quarter. Anyone planning to import steel to the UK in 2026 needs to understand the new quota system before the goods are shipped, not after they arrive.
The steel safeguard ended: what replaced it on 1 July 2026
For years, UK steel imports were managed by a safeguard measure: tariff-rate quotas with a 25% additional duty above quota. According to GOV.UK, those safeguard quotas and the 25% duty stopped applying on 30 June 2026.
From 1 July 2026 they were replaced by the UK steel trade measure, made under the Taxation (Cross Border Trade) Act 2018. The main changes published by the government are:
- Out-of-quota rate of 50% of the value of the goods (previously 25%).
- Overall quota volumes reduced by 51% compared with the safeguard measure.
- Scope focused on steel products that can also be made in the UK, set out in 20 product categories.
The scope can change. From 1 October 2026, for example, commodity codes 72173049 and 72173090 were removed from the measure, so the 50% out-of-quota rate no longer applies to them (other duties, such as anti-dumping, may still apply). Always check the current commodity code on the Online Trade Tariff rather than relying on last quarter’s assumptions.
How the steel quotas work
The quota year runs from 1 July 2026 to 30 June 2027 and is split into four quarters: 1 July–30 September, 1 October–31 December, 1 January–31 March and 1 April–30 June.
Quotas are linked to the country of origin of the steel. Some countries and territories have their own allocation in a given category — the European Union has one in every category — while everyone else draws from a residual quota. HMRC allocates both on a first come, first served basis, using the quota order number you enter on the customs declaration.
Unused volume rolls over to the next quarter within the same quota year (this does not apply to the Category 1 authorised use quota), but anything left on 30 June does not carry into the next year. For a broader explanation of how tariff-rate quotas are claimed, see our guide to claiming tariff rate quotas in the UK.
When a quota becomes “critical”
Once 90% of a quarterly volume has been allocated, the quota is designated critical. From that point you may need to provide security for the full duty before quota is granted, or the claim may be refused. A general guarantee account can be used to provide that security. In practice, a late-quarter shipment from a popular origin carries a real risk of paying the 50% rate.
Origin, Ukraine and other special cases
Because quotas are origin-based, you need reliable evidence of where the steel originates before you rely on a country-specific allocation. Two special cases are set out on GOV.UK:
- Ukraine: the measure does not apply to steel goods originating in Ukraine. Preferential access continues under the UK–Ukraine agreement, provided its rules of origin are met.
- Transitional exemption (now closed): goods imported between 1 July and 30 September 2026 to fulfil contracts entered into before 14 March 2026 could be fully exempt from the 50% duty, using document code 9Y16 and preference code 100. That window has ended, but HMRC may still ask importers who used it for evidence such as contracts, invoices and proof of payment.
There is also a separate Category 1 authorised use quota for steel that will be processed into specified downstream products. It is a single global quota with a cap of 40% per country per quarter, and it is only available to goods declared under the authorised use procedure.
Inward processing, freeports and stacking with other duties
Inward processing and freeport procedures remain available for steel in scope. If it is later released into free circulation, the measure is applied to the steel as it was declared into the procedure, not to the finished product. No duty is due if the processed goods are exported directly, provided they are not re-imported within 12 months.
The steel measure is not the only charge to watch. GOV.UK confirms that the UK applies 17 anti-dumping and anti-subsidy measures on steel. These apply within the tariff-free quota and add to the 50% duty once a quota is used up. Our article on when anti-dumping duties apply explains how to check them. Easy Clearance also covers anti-dumping duty on goods moving between the UK and the EU.
Looking ahead, the UK Carbon Border Adjustment Mechanism applies from 1 January 2027. It is separate from the steel measure. For background, see this overview of exporting steel and metal products to the UK.
Checklist: before you import steel to the UK
- Confirm the 10-digit commodity code and whether it is in scope today (the scope changed on 1 October 2026).
- Establish the country of origin and keep evidence that supports it.
- Find the correct quota order number: country-specific if your origin has one, otherwise residual.
- Check whether the quota is close to critical, and time shipments early in the quarter where possible.
- Arrange a guarantee in case HMRC asks for security on a critical quota.
- Check for anti-dumping or anti-subsidy duty on the same code and origin.
- Consider inward processing or a freeport if the steel will be processed and re-exported.
- Budget for import VAT and the full landed cost — a UK import landed cost calculator helps you see the impact of a 50% out-of-quota rate before you commit.
If you would rather not manage quota claims and declarations yourself, Easy Clearance is a customs agency registered in CDS with a UK EORI number and can prepare the import declaration for you.
Mini-FAQ
Is the UK steel safeguard still in force?
No. The steel safeguard quotas and the 25% additional safeguard duty stopped applying on 30 June 2026. From 1 July 2026 they were replaced by the UK steel trade measure, which uses tariff-rate quotas with a 50% out-of-quota rate.
What duty applies to steel imported above the quota?
Steel goods in scope that are imported outside quota pay a tariff of 50% of the value of the goods. The Online Trade Tariff shows this as the third-country duty for the commodity code.
Do steel quotas run out?
They can. Quotas are country-specific or residual, run in quarters and are allocated by HMRC on a first come, first served basis. When 90% of a quarterly volume has been allocated, the quota becomes critical and importers may need to provide security for the full duty.
Does the steel measure replace anti-dumping duties?
No. GOV.UK states that the existing anti-dumping and anti-subsidy measures on steel still apply inside the tariff-free quota and add to the 50% duty once a quota is exhausted.
Sources (gov.uk): UK’s steel trade measure from 1 July 2026; Implementation notifications on the UK steel trade measure; UK Online Trade Tariff. Quota volumes, scope and order numbers can change — check the current guidance before goods are shipped.