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Commission Implementing Regulation (EU) 2018/724 of 16 May 2018 on certain commercial policy measures concerning certain products originating in the United States of America

In forceVersion 2018-05-16from 2018-05-17
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Contents
  1. Preamble
    1. Article 1
    2. Article 2
    3. Article 3
    4. Article 4
    5. Article 5
  3. ANNEX
  4. ANNEX I Products that may be subject to additional duties from 20 June 2018
  5. ANNEX II Products that may be subject to further additional duties from 23 March 2021 or upon determination of WTO inconsistency of the US safeguard measures

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 654/2014 of the European Parliament and of the Council of 15 May 2014 concerning the exercise of the Union's rights for the application and enforcement of international trade rules, and in particular Article 4(1) thereof,

Whereas:

(1) On 8 March 2018 the United States of America (United States) adopted safeguard measures in the form of a tariff increase on imports of certain steel and aluminium products, effective from 23 March 2018 and with an unlimited duration. On 22 March the effective date of the tariff increase with respect to the European Union was deferred to 1 May 2018.

(2) Notwithstanding the United States' characterisation of these measures as security measures, they are in essence safeguard measures. They consist of remedial action that disturbs the balance of concessions and obligations resulting from the World Trade Organisation (WTO) Agreement and restricts imports for the purpose of protecting domestic industry against foreign competition, for the sake of that industry's commercial prosperity. The security exceptions of the General Agreement on Tariffs and Trade 1994 (GATT 1994) do not apply to or justify such safeguard measures, and have no bearing on the right of rebalancing under the relevant provisions of the WTO Agreement.

(3) The WTO Agreement on Safeguards provides for the right of any exporting Member affected by a safeguard measure to suspend the application of substantially equivalent concessions or other obligations to the trade of the WTO Member applying the safeguard measure, provided that no satisfactory solution is reached in consultations and the WTO Council for Trade in Goods does not disapprove.

(4) Consultations between the United States and the Union as envisaged in Articles 8 and 12.3 of the WTO Agreement on Safeguards did not reach any satisfactory solution.

(5) The suspension by the Union of substantially equivalent concessions or other obligations should take effect following the expiration of 30 days after its notification to the Council for Trade in Goods, unless the Council for Trade in Goods disapproves. The WTO Agreement allows for the right of suspension to be exercised (a) immediately, provided that the safeguard measure has not been taken as a result of an absolute increase in imports, or does not conform to the relevant provisions of the WTO Agreement; or (b) after the expiry of a period of three years as from the application of the safeguard measure.

(6) The Commission exercises the right to suspend the application of substantially equivalent concessions or other obligations with the intention of rebalancing concessions or other obligations in the trade relations with third countries, on the basis of Article 4(1) of Regulation (EU) No 654/2014. The appropriate action takes the form of commercial policy measures which may consist of, inter alia, the suspension of tariff concessions and the imposition of new or increased customs duties.

(7) In designing and selecting appropriate commercial policy measures, the Commission applies objective criteria in accordance with Article 4(2)(c) and Article 4(3) of Regulation (EU) No 654/2014, including as relevant the proportionality of any measures, their potential to provide relief to the Union industries affected by the safeguard measures, and the aim of minimising negative economic impact on the Union, including with regard to essential raw materials.

(8) In accordance with Article 9 of Regulation (EU) No 654/2014, the Commission provided an opportunity for stakeholders to express their views and submit information regarding the Union's economic interests in this respect.

(9) The United States' safeguard measures are capable of having a considerable negative economic impact on the Union industries concerned. They would significantly limit Union exports of the steel and aluminium products concerned to the United States. The affected Union imports of the relevant steel and aluminium products into the United States are worth at least EUR 6,41 billion in 2017 (of which EUR 5,30 billion is total steel imports and EUR 1,11 billion is total aluminium imports).

(10) Therefore, a suspension of trade concessions on certain products up to a level which reflects and does not exceed the amount that would result from the application of the United States' duties to the imports of the steel and aluminium products from the Union into the United States represents an appropriate suspension of the application of substantially equivalent trade concessions in line with the WTO Agreement on Safeguards.

(11) Subsequently, with a separate implementing act, the Commission may decide to implement the suspension of the application of trade concessions, if necessary or to the extent necessary, through the application of additional customs duties on certain products originating in the United States imported into the Union. The Commission should decide on the scope of the application, and reflecting the timing requirements described in recital (5), depending on whether the United States excludes certain products or companies from the safeguard measures.

(12) Reflecting the timing requirements described in recital (5), the additional customs duties should apply, if necessary or to the extent necessary, in two stages. At the first stage, ad valorem duties of a maximum rate of 25 % on imports of the products listed in Annex I, may be applied immediately and until the United States ceases to apply its safeguard measures to products from the Union.

(13) The total amount of ad valorem duties at the first stage reflects the United States' tariff increase of 25 % on imports of carbon and alloy flat products and carbon and alloy long products from the Union into the United States (EUR 2,83 billion total value of Union imports into the United States in 2017). These are the steel products for which the United States' safeguard measures have not been taken as a result of an absolute increase in imports.

(14) At the second stage, further additional ad valorem duties of a maximum rate of 10 %, 25 %, 35 % and 50 % on imports of the products listed in Annex II, may be applied as from 23 March 2021 or upon the adoption by, or notification to, the WTO Dispute Settlement Body of a ruling that the United States' safeguard measures are inconsistent with the relevant provisions of the WTO Agreement, if that is earlier, until the United States' safeguard measures cease to apply.

(15) The total amount of ad valorem duties at the second stage reflects the United States' tariff increase of 10 % on imports of the aluminium products and of 25 % on imports of carbon and alloy pipe and tube products, carbon and alloy semi-finished products and stainless steel products from the Union into the United States (EUR 3,58 billion total value of Union imports into the United States in 2017 of which EUR 2,47 billion is steel imports and EUR 1,11 billion is aluminium imports). These are the products for which there appears to have been an absolute increase in imports.

(16) The commercial policy measures and the products concerned have been selected in accordance with the criteria of Article 4(2)(c) and (3) of Regulation (EU) No 654/2014.

(17) By not exceeding the value of the Union imports affected by the United States' safeguard measures as described in recitals (9) and (10), the commercial policy measures are proportionate to the effect of the United States' safeguard measures and not excessive. It is also noted that only a fraction of the total value available will be initially exercised, as described in recitals (12) and (13).

(18) The commercial policy measures should provide some relief to the steel and aluminium Union industries affected by the United States' safeguard measures.

(19) The commercial policy measures should apply to imports of products originating in the United States on which the Union is not substantially dependent for its supply. The commercial policy measures may also apply with respect to the steel and aluminium sectors. This approach avoids as much as possible a negative impact on the various actors on the Union market, including consumers.

(20) Products for which an import licence with an exemption from or a reduction of duty has been issued prior to the date entry into force of this regulation should not be subject to these additional customs duties.

(21) Products for which the importers can prove that they have been exported from the United States to the Union prior to the date of application of the additional customs duties should not be subject to the additional customs duties.

(22) This Regulation is without prejudice to the question of the consistency of the United States' safeguard measures with the relevant provisions of the WTO Agreement.

(23) In light of the applicable WTO time limits and the preliminary nature of this act, it is appropriate that it should enter into force on the day on which it is published in the Official Journal of the European Union.

(24) The measures provided for in this Regulation are in accordance with the opinion of the Trade Barriers Committee, established by Regulation (EU) 2015/1843 of the European Parliament and of the Council,

HAS ADOPTED THIS REGULATION:

Article 1

The Commission shall immediately, and in any event no later than 18 May 2018, give written notice to the WTO Council for Trade in Goods that, absent disapproval by the Council for Trade in Goods, the Union suspends, from 20 June 2018, the application to the trade of the United States of import duty concessions under the GATT 1994 in respect of the products listed in Annex I and Annex II, so as to allow for an application of additional customs duties on the importation of these products originating in the United States.

Article 2

The application of additional customs duties on these products, through a subsequent Commission implementing act, shall be effected within the following parameters, and take into account any subsequent exclusion of certain products or companies from the safeguard measures by the United States:

(a) At the first stage, additional ad valorem duty of a maximum rate of 25 % may be applied on imports of products listed in Annex I from 20 June 2018.

(b) At the second stage, further additional ad valorem duty of a maximum rate of 10 %, 25 %, 35 % or 50 % may be applied on imports of products listed in Annex II:

from 23 March 2021, or

from the fifth day following the date of the adoption by, or notification to, the WTO Dispute Settlement Body of a ruling that the United States' safeguard measures are inconsistent with the relevant provisions of the WTO Agreement, if that is earlier. In the latter event, the Commission shall publish in the Official Journal of the European Union a notice indicating the date on which such ruling is adopted or notified.

Article 3

The suspension provided for in Article 1 may be exercised as long as, and to the extent that, the United States applies or re-applies its safeguard measures in a manner that would affect products from the Union. The Commission shall publish in the Official Journal of the European Union a notice indicating the date on which the United States has ceased to apply its safeguard measures.

Article 4

1. Products listed in the Annexes for which an import licence with an exemption from or a reduction of duty has been issued prior to the date of entry into force of this regulation shall not be subject to additional duty.

2. Products listed in the Annexes for which the importers can prove that they have been exported from the United States to the Union prior to the date on which an additional duty is applied with respect to that product shall not be subject to the additional duty.

Article 5

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 16 May 2018. For the Commission The President Jean-Claude Juncker

ANNEX

ANNEX I Products that may be subject to additional duties from 20 June 2018

CN 2018 Additional duty 07104000 25 % 07119030 25 % 07133390 25 % 10059000 25 % 10063021 25 % 10063023 25 % 10063025 25 % 10063027 25 % 10063042 25 % 10063044 25 % 10063046 25 % 10063048 25 % 10063061 25 % 10063063 25 % 10063065 25 % 10063067 25 % 10063092 25 % 10063094 25 % 10063096 25 % 10063098 25 % 10064000 25 % 19041030 25 % 19049010 25 % 20019030 25 % 20049010 25 % 20058000 25 % 20081110 25 % 20091200 25 % 20091911 25 % 20091919 25 % 20091991 25 % 20091998 25 % 20098111 25 % 20098119 25 % 20098131 25 % 20098159 25 % 20098195 25 % 20098199 25 % 22083011 25 % 22083019 25 % 22083082 25 % 22083088 25 % 24021000 25 % 24022010 25 % 24022090 25 % 24029000 25 % 24031100 25 % 24031910 25 % 24031990 25 % 24039100 25 % 24039910 25 % 24039990 25 % 33042000 25 % 33043000 25 % 33049100 25 % 61091000 25 % 61099020 25 % 61099090 25 % 62034231 25 % 62034290 25 % 62034311 25 % 62046231 25 % 62046290 25 % 63023100 25 % 64035995 25 % 72101220 25 % 72101280 25 % 72191210 25 % 72191290 25 % 72191310 25 % 72191390 25 % 72193210 25 % 72193290 25 % 72193310 25 % 72193390 25 % 72193410 25 % 72193490 25 % 72193590 25 % 72222011 25 % 72222021 25 % 72222029 25 % 72222031 25 % 72222081 25 % 72222089 25 % 72224010 25 % 72224050 25 % 72224090 25 % 72230011 25 % 72230019 25 % 72230091 25 % 72269200 25 % 72283020 25 % 72283041 25 % 72283049 25 % 72283061 25 % 72283069 25 % 72283070 25 % 72283089 25 % 72285020 25 % 72285040 25 % 72285069 25 % 72285080 25 % 72299020 25 % 72299050 25 % 72299090 25 % 73012000 25 % 73043120 25 % 73043180 25 % 73044100 25 % 73063011 25 % 73063019 25 % 73063041 25 % 73063049 25 % 73063072 25 % 73063077 25 % 73063080 25 % 73064020 25 % 73064080 25 % 73071110 25 % 73071190 25 % 73071910 25 % 73071990 25 % 73083000 25 % 73084000 25 % 73089051 25 % 73089059 25 % 73089098 25 % 73090010 25 % 73090051 25 % 73090059 25 % 73102910 25 % 73102990 25 % 73110013 25 % 73110019 25 % 73110099 25 % 73141400 25 % 73141900 25 % 73144900 25 % 73151110 25 % 73151190 25 % 73151200 25 % 73151900 25 % 73158900 25 % 73159000 25 % 73181410 25 % 73181491 25 % 73181499 25 % 73181640 25 % 73181660 25 % 73181692 25 % 73181699 25 % 73211110 25 % 73211190 25 % 73229000 25 % 73239300 25 % 73239900 25 % 73241000 25 % 73251000 25 % 73259910 25 % 73259990 25 % 73269030 25 % 73269040 25 % 73269050 25 % 73269060 25 % 73269092 25 % 73269096 25 % 76061110 25 % 76061191 25 % 76061220 25 % 76061292 25 % 76061293 25 % 87114000 25 % 87115000 25 % 89039110 25 % 89039190 25 % 89039210 25 % 89039291 25 % 89039299 25 % 89039910 25 % 89039991 25 % 89039999 25 % 95044000 25 %

ANNEX II Products that may be subject to further additional duties from 23 March 2021 or upon determination of WTO inconsistency of the US safeguard measures

CN 2018 Additional duty 20089311 25 % 20089319 25 % 20089329 25 % 20089391 25 % 20089393 25 % 20089399 25 % 22083011 25 % 22083019 25 % 22083082 25 % 22083088 25 % 33011210 10 % 33011310 10 % 33019010 10 % 33019030 10 % 33019090 10 % 33029010 10 % 33029090 10 % 33041000 10 % 33053000 10 % 48182010 25 % 48182091 35 % 48182099 25 % 48183000 25 % 48185000 35 % 48189010 25 % 48189090 35 % 56060091 10 % 56060099 10 % 59070000 10 % 59111000 10 % 59112000 10 % 59113111 10 % 59113119 10 % 59113190 10 % 59113211 10 % 59113219 10 % 59113290 10 % 62034211 50 % 62034233 50 % 62034235 50 % 62034251 50 % 62034259 50 % 62034319 50 % 62034331 50 % 62034339 50 % 62034390 50 % 62046211 50 % 62046233 50 % 62046239 50 % 62046251 50 % 62046259 50 % 62053000 50 % 63013010 50 % 63013090 50 % 64021900 25 % 64029910 50 % 64029931 25 % 64029939 25 % 64029950 25 % 64029991 25 % 64029993 25 % 64029996 25 % 64029998 25 % 64035905 25 % 64035911 25 % 64035931 25 % 64035935 25 % 64035939 25 % 64035950 25 % 64035991 25 % 64035999 25 % 66011000 50 % 69111000 50 % 69119000 50 % 69120021 50 % 69120023 50 % 69120025 50 % 69120029 50 % 69120081 50 % 69120083 50 % 69120085 50 % 69120089 50 % 69131000 50 % 69139010 50 % 69139093 50 % 69139098 50 % 69141000 50 % 69149000 50 % 70052125 25 % 70052130 25 % 70052180 25 % 70071910 10 % 70071920 10 % 70071980 10 % 70072120 10 % 70072180 10 % 70072900 10 % 70091000 25 % 70099100 10 % 70132810 10 % 70132890 10 % 71023100 10 % 71131100 25 % 71131900 25 % 71132000 25 % 72285061 25 % 73269098 10 % 76042990 25 % 76061193 25 % 76061199 25 % 84221100 50 % 84501111 50 % 84501119 50 % 84501190 50 % 84501200 50 % 84501900 50 % 85061011 10 % 85061018 10 % 85061091 10 % 85061098 10 % 85069000 10 % 85437001 50 % 85437002 50 % 85437003 50 % 85437004 50 % 85437005 50 % 85437006 50 % 85437007 50 % 85437008 50 % 85437009 50 % 85437010 50 % 85437030 50 % 85437050 50 % 85437060 50 % 85437090 25 % 87042110 10 % 87042131 10 % 87042139 10 % 87042191 10 % 87042199 10 % 87114000 25 % 87115000 25 % 89019010 50 % 89019090 50 % 89020010 50 % 89020090 50 % 89031010 10 % 89031090 10 % 89039291 25 % 89039299 25 % 94016100 50 % 94016900 50 % 94017100 50 % 94017900 50 % 94018000 50 % 94049010 25 % 94049090 25 % 94059900 25 %

Versions

  1. 2018-05-16

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