BSSA Advice Regarding Russia Import Sanction – Iron and Steel

On 30^th September 2023 the UK Government brought into effect the prohibition on the import of Russian iron & steel products processed in a third country. There is no transitional period or exceptions for any goods covered by this measure. The sanctions are found on the link below:

The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2023 (legislation.gov.uk)

Goods Covered:

The HS Codes in the scope of the import ban refer to HS codes covered under Chapters 72 and 73 as detailed below:

These include stainless steel codes highlighted in RED. However, stainless steel items that are covered by other non-stainless specific Harmonised Standards (HS) codes may be effected. The BSSA suggest that the Harmonised Standard (HS) codes are checked using the UK Integrated Online Tariff checker https://www.trade-tariff.service.gov.uk/find_commodity?_ga=2.22114866.843660531.1698128366-373996652.1690962101

HS code	Description
7206	Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 7203)
7207	Semi-finished products of iron or non-alloy steel
7208	Non Alloy and Other Alloy Hot Rolled Sheets and Strips; Non Alloy and Other Alloy Quarto Plates; Rolled on four faces or in a closed box pass, of a width not exceeding 1250 mm; Rolled on four faces or in a closed box pass, of a width exceeding 1250 mm and of a thickness of 4 mm or more
7209	Tin Mill products; Non Alloy and Other Alloy Cold Rolled Sheets; Electrical Sheets (other than GOES)
7210	Metallic Coated Sheets; Organic Coated Sheets; Tin Mill products; Non Alloy and Other Alloy Quarto Plates
7211	Non Alloy and Other Alloy Hot Rolled Sheets and Strips; Non Alloy and Other Alloy Cold Rolled Sheets; Rolled on four faces or in a closed box pass, of a width exceeding 150 mm and a thickness of not less than 4 mm, not in coils and without patterns in relief
7212	Non Alloy and Other Alloy Hot Rolled Sheets and Strips; Metallic Coated Sheets; Organic Coated Sheets; Tin Mill Products;
7213	Non Alloy and Other Alloy Wire Rod
7214	Non Alloy and Other Alloy Merchant Bars and Light Sections; Rebars; Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling
7215	Non Alloy and Other Alloy Merchant Bars and Light Sections; Non-alloy and other alloy cold finished bars
7216	Non Alloy and Other Alloy Merchant Bars and Light Sections; Angles, shapes and sections, not further worked than cold-formed or cold-finished
7217	Non Alloy Wire
7218	Stainless steel in ingots or other primary forms; semi-finished products of stainless steel
7219	Stainless Hot Rolled Sheets and Strips
7220	Stainless Hot Rolled Sheets and Strips
7221	Stainless Wire Rod
7222	Stainless Bars and Light Sections
7223	Wire of stainless steel, in coils (excluding Bars and rods)
7224	Steel, alloy, other than stainless, in ingots or other primary forms, semi-finished products of alloy steel other than stainless
7225	Non Alloy and Other Alloy Hot Rolled Sheets and Strips; Non Alloy and Other Alloy Cold Rolled Sheets; Electrical Sheets (other than GOES); Metallic Coated Sheets; Non Alloy and Other Alloy Quarto Plates; Flat-rolled products of other alloy steel, of a width of 600 mm or more
7226	Non Alloy and Other Alloy Hot Rolled Sheets and Strips; Non Alloy and Other Alloy Cold Rolled Sheets; Electrical Sheets (other than GOES); Metallic Coated Sheets; Flat-rolled products of other alloy steel, of a width of less than 600 mm
7227	Non Alloy and Other Alloy Wire Rod
7228	Non Alloy and Other Alloy Merchant Bars and Light Sections; Non-alloy and other alloy cold finished bars
7229	Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel; Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel
7301	Angles, shapes and sections; Sheet Piling
7302	Railway Material
7303	Tubes, pipes and hollow profiles, of cast iron
7304	Seamless Stainless Tubes and Pipes; Other Seamless Tubes
7305	Large welded tubes
7306	Other Welded Pipes
7307	Tube or pipe fittings, for example “couplings, elbows, sleeves”, of iron or steel
7308	Structures and parts of structures, for example “bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns”, of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel (excluding Prefabricated buildings of heading 9406)
7309	Reservoirs, tanks, vats and similar containers, of iron or steel, for any material “other than compressed or liquefied gas”, of a capacity of > 300 l, not fitted with mechanical or thermal equipment, whether or not lined or heat-insulated (excluding Containers specifically constructed or equipped for one or more types of transport)
7310	Tanks, casks, drums, cans, boxes and similar containers, of iron or steel, for any material “other than compressed or liquefied gas”, of a capacity of <= 300 l, not fitted with mechanical or thermal equipment, whether or not lined or heat- insulated, n.e.s.
7311	Containers of iron or steel, for compressed or liquefied gas (excluding Containers specifically constructed or equipped for one or more types of transport)
7312	Stranded wire, ropes, cables, plaited bands, slings and the like, of iron or steel (excluding Electrically insulated products and twisted fencing wire and barbed wire)
7313	Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or not, and loosely twisted double wire, of a kind used for fencing, of iron or steel
7314	Cloth, incl. Endless bands, grill, netting and fencing, of iron or steel wire, expanded metal of iron or steel (excluding Woven products of metal fibres of a kind used for cladding, lining or similar purposes)
7315	Chain and parts thereof, or iron or steel (excluding Watch chains, necklace chains and the like, cutting and saw chain, skid chain, scraper chain for conveyors, toothed chain for textile machinery and the like, safety devices with chains for securing doors, measuring chains)
7316	Anchors, grapnels and parts thereof, of iron or steel
7317	Nails, tacks, drawing pins, corrugated nails, staples and similar articles of iron or steel, whether or not with heads of other material (excluding Such articles with heads of copper and staples in strips)
7318	Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers, incl. Spring washers, and similar articles, of iron or steel (excluding Lag screws, stoppers, plugs and the like, threaded)
7319	Sewing needles, knitting needles, bodkins, crochet hooks, embroidery stilettos and similar articles, for use in the hand, of iron or steel; safety pins and other pins of iron or steel, n.e.s.
7320	Springs and leaves for springs, of iron or steel
7321	Stoves, ranges, grates, cookers, incl. Those with subsidiary boilers for central heating, barbecues, braziers, gas rings, plate warmers and similar non-electric domestic appliances, and parts thereof of iron or steel (excluding Boilers and radiators for central heating, geysers and hot water cylinders)
7322	Radiators for central heating, not-electrically heated, and parts thereof, of iron or steel; air heaters and hot-air distributors (incl. Distributors which can also distribute fresh or conditioned air), not-electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel
7323	Table, kitchen or other household articles, and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel (excluding Cans, boxes and similar containers of heading 7310; waste baskets; shovels, corkscrews and other articles of the nature of a work implement; articles of cutlery, spoons, ladles, forks etc. Of heading 8211 to 8215; ornamental articles; sanitary ware)
7324	Sanitary ware, and parts thereof, of iron or steel (excluding Cans, boxes and similar containers of heading 7310, small wall cabinets for medical supplies or toiletries and other furniture of chapter 94, and fittings)
7325	Articles of iron or steel, cast, n.e.s.
7326	Articles of iron or steel, n.e.s. (excluding Cast articles)

Explanation of the Regulations:

The regulation The Russia (Sanctions(EU Exit) (Amendment) Regulations 2023 prohibit the import into the UK of an iron and steel product, when it meets all the following criteria:

• is listed in Schedule 3B of the Russia Sanctions Regulations
• has been “altered, transformed in any way; or subjected to any type of operation or process” in a third country (see Regulation 46IA)
• incorporates one or more Schedule 3B iron and steel product/products of Russian origin.

In summary this legislation requires that the importer needs to be able to prove that the material does not originate from Russia. This could be proof of country of melt, which would cover most stainless steel products, although there will be some exceptions no doubt. This is not necessarily the same as the Country of Origin (COO) which is the last country of significant change. Slabs could be melted in Russia, sold to a third country where Hot Rolling was carried out and then processed further, but the SLAB will be of Russian Origin and therefore falls into the sanctions.

Examples of the legislation and further guidance can be found here Guidance on third country processed iron and steel measures – GOV.UK (www.gov.uk)

The legislation came into effect from the 30^th September 2023 for any imports after that date.

However, what will happen to material already in the system prior to that date? The industry will be aware that end users will be requiring material that clearly conforms to the sanctions. We have to assume that some end users will insist that all material, no matter what the age of the stock is will meet the sanctions requirements. It may not be possible for stockholders to obtain proof that material does not contain any Russian originating materials for older stocks without incurring significant cost and time, and even then they may not be able to obtain the information required. I have asked for some clear guidance on how to approach this from the Trade Remedies Department. They recommend to take specific legal advice should this occur.

The BSSA therefore recommends that the origin of the materials is established wherever possible to avoid any issues with end users.

The EU has similar requirements, but they have clear guidance for goods that were already in the warehouse before 30^th September. Article 12e of Regulation 833/2014 on restrictive measures on Russia can be invoked. The Article 12e states “for the purposes of the prohibitions on importing goods provided for in this regulation, goods physically in the Union may be released as provided for in Article 5 point 26 of the Union Customs Code by the customs authorities provided that they have been presented to customs in accordance with Article 134 of the Union Customs Code before the entry into force or applicability date of the respected import prohibitions, whichever is the latest”.

Material that has not already been received before 30^th September, referring to goods in transit, have to meet the legislation of both the UK and EU.

New Purchase Orders on mills / suppliers:

The BSSA suggest that any new purchase orders raised on suppliers clearly state that materials containing any of the sanctioned Iron & Steel products are not acceptable.

Companies should take legal advice on the wording but a guideline would be “by accepting this order you confirm that no items within this order contain steel products originating in Russia, and conform with the following sanctions (EU Exit) (Amendment) Regulations 2023 Regulation 46IA and 46IB and Annex XVII to the (EU) Regulation No 833/ 2014 and further amendment”.

This can be proved by the supply of material test certificates (MTC) that list the country of melt and the subsequent supply chain, although this is not the normal procedure currently. Interestingly there is no model available of a MTC that is agreed as acceptable. Other documentation may also be used to supply evidence of the origin of materials . These may include invoices, a certificate of origin issued by a chamber of commerce, a bill of lading, or CMR transport documents. Other documents may be used, but any evidence submitted needs to be verifiable.

This is a complex sanction that will take some time to settle in especially as the material process routes can be convoluted and complex.

The BSSA is unable to offer members legal advice or further interpretation. Members should carry out their own due diligence and seek independent legal advice if unsure.