Implementation notifications on the transitional exemption, quota administration and the Ukraine exclusion
Updated 2 June 2026
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This publication is available at https://www.gov.uk/government/publications/uks-steel-trade-measure-from-1-july-2026/implementation-notifications-on-the-transitional-exemption-quota-administration-and-the-ukraine-exclusion
Background
On 19 March 2026, the Secretary of State for Business and Trade announced a new steel trade measure to preserve vital steel production for critical national infrastructure and defence. This new measure will come into effect on 1 July 2026, and includes a 50% out-of-quota duty (described as ‘Third-country duty’ on the UK’s Online Tariff Tool) which will apply on relevant product lines.
Further information will be set out in the revised reference document for the ‘Tariff of the United Kingdom’, which will be published in due course. More information on the measure can be found in the UK’s steel trade measure from 1 July 2026 decision, published on 2 April 2026.
Transitional exemption eligibility
For the new steel trade measure, a time-limited transitional arrangement is available. Under this arrangement, relevant goods under contract before 14 March 2026 will be fully exempt from 50% out-of-quota duty between 1 July 2026 and 30 September 2026.
This means that the tariff associated with this new measure will not apply to goods:
- imported into the United Kingdom between 1 July 2026 and 30 September 2026
- imported in satisfaction of an obligation under a contract entered into before 14 March 2026
Goods released to the UK market from a customs warehouse between 1 July 2026 and 30 September 2026 can make use of this exemption if they were imported to the UK in satisfaction of an obligation under a contract entered into before 14 March 2026.
Goods that make use of this transitional exemption will not count towards quota allocations for quarter 1.
Evidencing your eligibility for the transitional exemption
To use this exemption, traders must hold verifiable evidence demonstrating that the consignment was ordered before the cut-off date.
This may include, but is not limited to:
- written contracts (including sales contracts)
- invoices
- proofs of payment
- customs warehousing records
HM Revenue and Customs (HMRC) may request evidence that the eligibility conditions are met, including after the goods have been released. Traders must retain and provide evidence on request.
Instructions for declaring on the Customs Declaration Service (CDS)
When declaring goods in scope of the measure using the Customs Declaration Service (CDS), use document code 9Y16 to confirm that the eligibility requirements are met. Only use this code if you hold the required evidence.
Quota administration
The right to access quotas is granted by HMRC to importers in the UK on a ‘first come, first served’ basis.
Importers are asked to cite the relevant order number set out in Table 4, and as specified on the online tariff tool, when applying to HMRC to access a particular quota.
Unused quota volume carryover
Unused quota volumes for relevant steel goods, whether country-specific or residual, will carry over into the following quarter within the same quota year. Carryover will take effect on the 20th working day following the end of the relevant quarter.
Unused quota volumes may accumulate across quarters within the same quota year. Any quota volume remaining at the end of the quota year will lapse and will not be carried forward.
Unused quota volume carryover will not apply to Category 1 authorised use products.
Limited access to unused quota following the end of each quarter within a quota year
Claims for quarterly quotas will be suspended at the end of the 19th working day of the month following the end of quarters 1 to 3.
Any balance remaining at the end of quarter 4 will be available for importers to claim up to 3 years after the goods were imported.
Quota volumes, whether country-specific or residual, carried over to a subsequent quarter will remain available in the next quarter of the same quota year for goods of the same origin.
Ukraine exclusion
The new measure will not apply to steel goods originating in Ukraine reflecting the UK’s continued support in light of Russia’s ongoing invasion. Instead, existing preferential tariff arrangements for UK-Ukraine trade in steel will remain in place, as set out in the Political, Free Trade and Strategic Partnership Agreement with Ukraine. Access to preferential rates is subject to compliance with preferential rules of origin set out in the agreement. For further details, read the guidance on Trade with Ukraine.
Contact
For general queries about customs declarations, you can contact HMRC online, by phone or by post.
For queries about the new steel measure, you can contact the Department for Business and Trade (DBT) by email: tariff.implementation@businessandtrade.gov.uk.
Alternatively, you can contact DBT by telephone: +44 (0)20 4551 0011.