Duties and anti-dumping on stainless steel
The duty on stainless steel is calculated not by the word "stainless steel" but by the HS code: the code sets the rate, and the delivery basis determines which costs go into the customs value.
Separately from the ordinary duty, anti-dumping measures operate — they are introduced following an investigation against imports at a dumped price and may apply to a specific commodity and producer.
How the duty on stainless steel is calculated
The customs payment is calculated from the base and the rate. The base is the customs value of the batch: the invoice price plus the costs which, under the delivery basis, relate to delivery to the border. That is why the same batch under EXW and under DDP gives a different customs value, although the metal is identical.
The rate is tied to the HS code. For some positions it is calculated as a share of the value, for others as a fixed amount per unit of weight or quantity. Besides the duty, an import tax and clearance charges are assessed, and for certain goods special, anti-dumping and countervailing measures.
What affects the outcome:
- the HS code and its subheading;
- the country of origin and the availability of preferences;
- the customs value and the documents confirming it;
- the market protection measures in force under this code;
- the currency rate, if the value is expressed not in the currency of payment.
The code is selected by the description of the goods: material, production method, presence of a seam, cross-section shape, thickness, type of surface treatment. For sheet this is hot-rolled or cold-rolled product and the thickness, for pipes welded or seamless and the cross-section profile.
Anti-dumping measures
An anti-dumping measure is a response to imports sold cheaper than in the producer's domestic market and causing injury to the local industry. First an investigation is conducted: the export price is compared with the normal value, injury and causation are assessed. On the results a measure is introduced for a certain period.
The forms of the measure vary. Most often it is an increased duty rate under a specific code, sometimes a price undertaking by the exporter or a quota. The measure may extend to all suppliers of a country or to specific producers on a list, and the rates for different companies may differ.
For the buyer this means that checking the code alone is not enough. You need to understand which country and which producer the metal comes from: a batch falls under one measure and not under another. The measure has a limited period, it is periodically reviewed, so the data must be taken from a current source, not from last year's letter from the supplier.
What this means for the price
The duty is part of the landed cost, that is the full cost of the metal at your warehouse. Besides it, this sum includes the rolled steel itself, delivery, insurance, transshipment, storage, import tax, broker services and bank charges.
The supplier often quotes a single figure without a breakdown, and it is impossible to understand whether the duty is included in it. Ask for a line-by-line breakdown and state the basis: "price with duty" without a basis means nothing.
It is worth checking the measures before signing the contract. If a measure is introduced or reviewed, the costs may change between the trade and the import, and the question "who pays the difference" is decided by the contract, not by customs. For a reference point on the market price level, look at quotations, not at a single commercial offer.
How to verify the code
The procedure is simple: describe the goods as they are described in the specification, determine the material and the production method, find the appropriate heading and go down to the subheading. An error at the top level is less common than an error in the thickness or in the presence of a seam.
| Code from the GCX catalogue | What it classifies |
|---|---|
| 730640 | welded pipes of circular cross-section |
| 730661 | welded pipes of profiled cross-section |
| 721922, 721923 | hot-rolled sheet, different thickness ranges |
| 721932, 721933, 721934 | cold-rolled sheet, different thickness ranges |
| 722211, 722220 | hot-rolled and calibrated bar |
| 722240 | angle and shaped profile |
If the goods are non-standard or there are several of them in one batch, it is safer to obtain a preliminary classification decision or to work through the shipment with a broker. Responsibility for the declared code lies with the declarant, not with the carrier and not with the seller.
Separately, check whether the classification has changed: headings are reviewed, and a code that passed in a previous shipment may turn out to be incorrect for a new batch with a different thickness, finish or production method.
Frequently asked questions
What does the duty on stainless steel depend on
On the HS code, the country of origin and the customs value of the batch. The code sets the rate, the origin the right to a preference, the value the basis of calculation.
What is an anti-dumping duty
A measure against imports at a price below the normal value, introduced following an investigation. It may apply to specific producers and be in force for a limited period.
Is the duty included in the price of the metal
It depends on the basis. Under DDP the seller covers it and it is already in the price; under FCA, CPT and CIP the buyer pays. Always clarify what exactly the quoted sum includes.
Who determines the HS code
The declarant, that is the party filing the declaration. The classification can be verified through a preliminary decision or a consultation with a broker.
Is the duty on sheet and on pipe the same
No, these are different headings with their own rates and their own set of measures. Even within sheet the code depends on the rolling method and the thickness.
Can the rate be found out in advance
Yes, under the current classification and the published measures. But measures and rates are reviewed, so they must be checked as at the date of the trade, not from old data.
What happens with an incorrect code
Additional assessment of payments, penalties and adjustment of the declaration are possible. The risk lies with the declarant, so disputed positions are best closed with a preliminary decision.
What to do next
- HS codes — classification of the catalogue positions.
- Export and import of stainless steel — documents and settlement in a foreign trade transaction.
- Customs clearance of steel products — stages and deadlines.
- What makes up the price of stainless steel — the structure of the cost.
- Prices and quotations — market reference points.