EU: FAQ on the ban on iron and steel imports from Russia

The EU has answered detailed questions on iron and steel imports from Russia. Here are the frequently asked questions and answered.

Does the ban under Article 3g(1)(d) apply to all iron and steel products?

No. The restrictive measure under Article 3g(1)(d) applies only to iron and steel products as listed in Annex XVII when processed in a third country and incorporating iron and steel inputs originating in Russia as listed in Annex XVII. This corresponds to tariff headings 7206-7229 within Chapter 72, and the full Chapter 73.

For products listed in Annex XVII the third country where they have been processed prior to their import in the Union is not relevant. In all cases, it has to be proved that they do not incorporate those iron and steel inputs originating in Russia that are listed in Annex XVII.

Example 1: Fasteners (heading 7318) from a third country (e.g. China, India), manufactured from wire rod (e.g. 7221) originating from Russia intended for import into the Union.

The import in this example would be prohibited as both CN codes 7318 and 7221 are included in Annex XVII and the wire rod originates in Russia, unless covered by a specific exception or derogation.

Example 2: A product of Russian origin that is not a good listed in Annex XVII when it leaves Russia is then processed in a third country, such that product then becomes a good listed in Annex XVII. Importing this into the Union is not prohibited, because the product now entering the Union has incorporated inputs with Russian origin that are not in Annex XVII.

For example, some pig iron (HS 7201) or steel scrap (HS 7204) leaves Russia and enters Country X. Here, it is transformed into slabs (HS 7207), before being imported into the Union.

The import in this example would not be prohibited.

Are reusable packagings, e.g. containers, made of iron and steel containing goods also subject to the prohibition in Art. 3g?

Items that can be considered as durable metal packaging, regularly used as part a standard business practice and are only meant to contain the goods to be imported, purchased or transferred should not be the subject of the prohibition in Article 3g.

However, if these items (e.g. empty containers) are themselves the object of the import (i.e. the importation of steel containers with the purpose of releasing them for free circulation), they are not packaging therefore subject to the prohibition.

National authorities should exercise care to avoid possible circumvention.

Does the "purchase" also refer to restricted goods that are already released for free circulation within the territory of the Union before entry into force of the relevant restrictive measures?

No. As for all other restrictive measures prohibiting the import, transfer or purchase, the restriction envisaged in Article 3g(1)(d) of Council Regulation No. 833/2014 does not concern goods which are already released for free circulation within the territory of the Union (i.e. usually already placed on the market) at the time when the respective measure enters into force.

For goods already in the Union but not yet released for free circulation, the provisions of Article 12e of Council Regulation No. 833/2014 apply.

Does ‘import’ or "purchase" also refer to goods that are not purchased but are imported only temporarily for the purpose of repair and are re-exported to the third country after repair?

Yes. As for all other restrictive measures prohibiting the import, transfer or purchase, ‘import’ is to be understood broader than ‘release for free circulation’ and covering all customs procedures and formalities.

When does the prohibition under Article 3g(1)(d) start applying?

The prohibition to import or purchase iron and steel products processed in third countries using iron or steel originating in Russia enters into application at different moments depending on the inputs used, as follows:

The prohibition to import or purchase enters into application:

• as of 30 September 2023 for products of Annex XVII containing products other than those of CN codes 7207 11, 7207 12 10 or 7224 90

• as of 1 October 2024 for products of Annex XVII containing products of CN codes 7207 12 10 or 7224 90

• as of 1 April 2024 for products of Annex XVII containing products of CN code 7207 11,

As products of CN codes 7207 11, 7207 12 10 and 7224 90 are semifinished products, this implies that as of 30 September and before 1 April 2024 for products using the inputs of CN code 7207 11 and before 1 October 2024 for products using the inputs of CN codes 7207 12 10 or 7224 90, the Russian Federation may appear in the Mill Test Certificate (MTC) as the name of the country corresponding to the heat number (country of the ladle of melting). However, the Russian Federation should not appear as the country where the other processing operations have been carried out (i.e. hot rolling, cold rolling, etc) in order to allow the import, transfer or purchase of the product.

After 1 April 2024 for products using inputs of CN code 7207 11 and after 1 October 2024 for products using inputs of CN codes 7207 12 10 or 7224 90, as well as from 30 September 2023 for products using all other iron or steel inputs of Annex XVII, the Russian Federation should not appear in the MTC as the name of the country corresponding to the heat number (country of the ladle of melting) and should not appear either as the country where the other processing operations have been carried out.

Does the application of Article 3g (1) (d) of Regulation (EU) No 833/2014 also extend to products that were manufactured or processed in a third country before 30 September 2023?

The prohibition applies to imports of iron and steel products incorporating inputs originating from Russia that enter the Union as of 30 September 2023, provided that they were manufactured or produced after 6 October 2022, when the prohibition to import iron and steel goods incorporating Russian steel components was introduced in EU law. This wind-down period of almost one year should have allowed, among others, an orderly planning of imports into the Union of the relevant goods.

Should the time of import be based on the first import into the EU, or should each import of the same goods be considered separately?

Compliance with the restrictive measure needs to be ensured for each import, even if the goods were only temporarily out of the Union.

Example: Goods that have been imported into the Union for the first time before the relevant deadline, e.g. 30 September 2023 are sent to a subcontractor in a third country for repair under outward processing and are meant to be imported into the EU again after 30 September 2023, once the repair has been completed.

Nevertheless, national competent authorities can consider and accept provision of one evidence for several consignments of identical goods, i.e. when the products supplied by the same supplier during a period of time are similar and national competent authorities have no reason to suspect possible circumvention; or when the same batch of products is imported in various transports for logistic or other legitimate reasons. National authorities needs to exercise due care to avoid a breach or circumvention of the measures as a consequence.

B) EVIDENCE AND PROOF OF ORIGIN OF IRON AND STEEL INPUTS

What do I need to know before I plan to import into the Union iron and steel products as listed in Annex XVII when processed in a third country?

- Evidence of the country of origin

In order to ensure the implementation of the prohibition, the same Article establishes an obligation for the importer in the EU to provide evidence of the country of origin of the iron and steel inputs used in a third country for the processing of the iron and steel products imported in the Union.

The following documents may be considered as sufficient evidence of the country of origin of the iron or steel used as inputs:

a) In the case of semifinished products:

The mill test certificate (MTC) (there is no concrete standardized format):

- establishing the name of the facility where the production is taking place, the name of the country corresponding to the heat number (country of the ladle of melting) together with the classification at subheading level (six-digit code) of the product.

b) In the case of finished products

The mill test certificate (MTC) or mill test certificates (MTCs) – if all relevant information cannot be summarized in one single MTC:

- establishing the name of the country and the name of the facility corresponding to the heat number (country of the ladle of melting) together with the classification at subheading level (six-digit code), and

- the name of the country and the name of the facility where the following processing operations are carried out, as relevant:

• Hot-rolling

• Cold-rolling

• Hot-dipped metallic coating

• Electrolytic metal coating

• Organic coating

• Welding

• Piercing/extruding

• Drawing/Pilgering

• ERW/SAW/HFI/Laser welding

The importer is responsible for the information provided in the MTC or MTCs and submitted to the customs authorities of the Member State of import as evidence of the country of origin of the iron and steel inputs used.

The customs authorities may, in the event of reasonable doubt, require additional evidence such as supplementary separate mill test certificates for the different transformation steps which the product has undergone. All MTCs should be coherent with one another. The importer should apply due diligence to ensure the accuracy of the information provided.

Is the mill test certificate (MTC) the only document that is accepted as evidence that the goods to be imported in the Union do not incorporate iron and steel inputs as listed in Annex XVII originating in Russia?

No. The mill test certificates (MTC) is an example that can be regarded as sufficient evidence. However, it is for the relevant national competent authorities to establish which other documentation can be considered as evidence of the country of origin of the iron and steel inputs used in a third country for the processing of the iron and steel products imported in the Union.

The origin of the inputs may be established through other means, such as a statement or declaration by the exporter or manufacturer confirming that, after exercising due diligence, the imported product does not contain any Russian steel or iron. Other documents may be invoices, delivery notes, supplier's declarations, business correspondence, production descriptions, etc. The type of document(s) may also vary depending on the nature of the product, in particular for finished products (e.g. sewing needles, tubes, etc.).

The more complete the information provided on the evidence used by the importer is, the easier will be for customs to be satisfied on the non-Russian origin of the inputs.

National authorities need to exercise due care to avoid a breach or circumvention.

Where do I need to indicate the MTC and/or any other document used as evidence?

The availability of a document used as evidence is to be declared in box 44 of the customs declaration for placing the goods under the respective customs procedure (e.g. release for free circulation, inward processing, etc.) by indicating the code IA 124 for ‘evidence of the country of origin of the iron and steel inputs used’ and in the possession of the importer.

Is the evidence needed for all processing operations throughout the whole supply chain or for the processing in the last country before the import into the Union?

The evidence for the non-Russian origin is necessary for all the inputs/components used in the supply chain for the production of the product which is to be imported in the Union. Otherwise, if the product acquires the origin of the last country before importation, the Russian semifinished steel used in the production of the product could not be tracked.

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