Ukraine crisis: sanctions against Russia impact imports of iron and steel products

Following the crisis in Ukraine, the EU imposed new additional restrictive measures against Russia with an 11th sanctions package. Important in this package: the additional measures taken to prevent sanctions from being circumvented by imports through other countries. DKM Customs is happy to explain exactly what this means and what the consequences are.

The impact

EU measures have a huge impact on imports of iron and steel products processed in third countries. Specifically, the iron and steel products you can find here.

We are happy to give a brief update on exactly what this all means: as of September 30, 2023 it is no longer permitted to use, directly or indirectly, iron and steel products as listed in annex XVII, import or purchase when processed in a third country, by processing in annex XVII listed iron and steel products originating in Russia.

  • If the goods processed in the third country contain products from code 7207 11, the ban will not take effect until April 1, 2024.
  • For processed goods containing products from code 7207 12 10 and code 7224 90, this is Oct. 1, 2024.

To prove that processing in the third country did not use products originating in Russia, one or more Mill Test Certificates must be presented. These certificates must contain the following information:

  • For semi-finished products:
    • Name of facility where production took place
    • Name of the country corresponding to the heat number (country of the melting pan)
    • CN code (six-digit code) of the product
  • For finished products:
    • Name of the country and name of the facility where the following processing or operations are performed, as relevant:
      • Hot Rolling
      • Cold rolling
      • Metallic coating by hot dipping
      • Electrolytic metal cladding
      • Organic upholstery
      • Welding
      • Penetrating/Extruding
      • Pulling/Pilgrating
      • ERW/SAW/HFID/Laser Welding
    • Name of the country corresponding to the heat number (country of the melting pan)
    • CN code (six-digit code) of the product

Despite the fact that Mill Test Certificates can be considered sufficient evidence, they cannot always be presented or do not always contain the necessary information. Thus, the origin of steel and iron inputs may also be determined by other means:

  • Invoices
  • Delivery notes
  • Quality Certificates
  • Trade Correspondence
  • Production descriptions
  • Long-term supplier statements
  • Costing and production documents
  • Customs documents from the exporting country.
  • Exclusion clauses in sales contracts, or
  • Manufacturer's declarations if they refer directly to the shipment in question (no general declaration)

Please note that a certificate of non-preferential origin is not accepted as evidence at this time.

When in doubt

In case of doubt, it is possible for customs authorities to require additional evidence. Consider separate test certificates for the various processing stages a product has undergone.

The more complete the information on the evidence used, the easier it is for Customs to satisfy itself that the inputs are of non-Russian origin.

The result

As a result of these new restrictions, you should expect the following: customs authorities will strictly monitor compliance with the above, which may result in longer waiting times, physical verifications, blocked containers and disputes.

Certificate code Y824

Finally, we also draw attention to the use of the certificate code Y824. If the imported iron and steel products do not include Russian steel products, certificate code Y824 should be entered in box 44 of the customs declaration. With this, the importer certifies that his goods comply with the measures imposed and that he has the necessary supporting documents.

The sanctions measures on Russia and subsequent guidance documents are constantly subject to change. We therefore recommend always using the latest information. You can always find that latest information at DKM Customs.