EU closes rebar quota loophole with new regulation, introduces new codes

• New category to distinguish between rebar and merchant bar
  
  
• Target is to maintain effectiveness of safeguard mechanism till 30 June
  
  

SteelOrbis: The European Commission has introduced targeted changes to its steel safeguard regime to address circumvention practices in rebar imports, aiming to restore the effectiveness of tariff-rate quotas (TRQ) and prevent market distortions.

According to the Commission, rebar products traditionally imported under product category 13 (CN codes: 7214 20 00 and 7214 99 10) began entering the EU under category 12 (CN 7228 30 69) from 2025. This shift was enabled by minor changes in chemical composition, allowing products to be reclassified under a different CN code with more available duty-free quota volumes.

The Commission noted that the chemical modifications were negligible in cost and there was no clear economic justification beyond quota access.

Import surge triggers market imbalance

The Commission identified a significant increase in imports under CN code 7228 30 69 (merchant bars and light sections), with volumes rising sharply compared to previous years.

In 2025, imports under this code increased by around 250% y-o-y and these volumes accounted for approximately 35% of the total annual rebar quota (category 13).

This trend was found to distort traditional trade flows and limit access to quotas intended for genuine merchant bar products.

New TARIC codes to restore control

To address the issue, the EU has introduced new TARIC codes to clearly distinguish between rebars and merchant bars.

The codes created are 7228 30 69 11 for reinforcing bars and rods, containing indentations, ribs, grooves or other deformations and 7228 30 69 99 for others.

The changes ensure that:

• Rebars are classified and imported under the correct category,
  
  
• Merchant bar quotas are not misused,
  
  
• TRQ allocation reflects traditional trade flows.
  
  

The measure does not expand the scope of safeguards or alter existing duty-free volumes.

Safeguard in place until mid-2026

The EU steel safeguard system, based on TRQs and a 25% duty applied beyond quota thresholds, remains valid until 30 June, 2026.

The latest amendment is intended to strengthen enforcement and maintain the effectiveness of the safeguard mechanism during its remaining period.

This article is published as part of an article sharing agreement between SteelOrbis and BigMint