Mill Test Certificate mandatory as of 30 September
As of 30 September 2023, there’s a ban on the import or purchase, directly or indirectly, of steel products that undergo processing in a third country and incorporate steel products originating in Russia listed in Annex XVII of Regulation 833/2014, last amended on 23 June 2023.
The prohibition on the purchase, directly or indirectly, of steel products was already present in the previous wording of the Regulation. The novelty concerns the need to prove that no factors of production of Russian origin have been used in the processing of products. In this respect, the second sentence of Art. 3g(1)(d) provides that: “…, at the time of import, the importer shall provide proof of the country of origin of the steel inputs used for the processing of the product in a third country".
Clarification on evidence by GAC&E
Although Mill Test Certificates, if they meet the conditions described below, may be considered sufficient evidence, they cannot always be presented or do not always contain the requested information. The origin of steel and iron inputs may therefore be established by other means, including:
- invoices
- delivery notes
- quality certificates
- long-term supplier declarations
- costing and production documents
- customs documents from the exporting country
- commercial correspondence
- production descriptions
- exclusion clauses in sales contracts, or
- manufacturer's declarations if they refer directly to the consignment in question (not general declarations).
Please note: a certificate of non-preferential origin (CoO) is not accepted as evidence at this stage.
Customs authorities may require additional evidence, such as additional separate test certificates for the different processing stages the product has undergone, in case of reasonable doubt. Importers can supplement MTCs with the above-mentioned means of proof and vice versa. All evidence must be consistent with each other.
Scope of application
Goods concerned
To ensure the implementation of the ban regarding the importation of steel products made or processed in any third country into the EU, the proof of origin to be presented will not be limited to the imported steel product, but also relates to the steel products used in its production.
Evidence of the country of origin
The European Commission considers the following documents to be sufficient proof of the country of origin of the iron or steel used as an input:
a) In the case of semi-finished products:
the Mill Test Certificate (MTC): an inspection certificate or test certificate attesting to the chemical and physical properties of a material (metal product) and declaring its compliance with specific international standards.
The Mill Test Certificate must contain the following information: name of the plant where production takes place, name of the country corresponding to the heat number (country of the ladle of melting) and classification at subheading level (six-digit code) of the product.
b) In the case of finished products
the Mill Test Certificate (MTC) (or several MTCs if all the relevant information cannot be summarized in a single MTC) complete with all the information required for semi-finished products with the addition of the name of the country and the name of the plant where the following processing operations are carried out, as applicable:
- 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 must apply due diligence to ensure the accuracy of the data provided, being responsible for the information contained in the MTC(s) (all MTCs should be coherent with one another) presented to customs in the importing Member State as proof of the country of origin of the steel inputs used.
Entry into application of the prohibition depending on the product
The adoption of the restriction on the import of steel products under the new Article will take place in stages depending on the inputs used, as follows:
The prohibition on the import or purchase of steel products listed in Annex XVII that undergo processing in a third country and incorporate steel products originating in Russia shall enter into force:
- 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 April 2024 for products of Annex XVII containing products of CN code 7207 11,
- as of 1 October 2024 for products of Annex XVII containing products of CN codes 7207 12 10 or 7224 90.
Customs authorities will strictly monitor compliance with these prohibitions, which can result in physical verifications, longer waiting times, blocked containers and litigation. They will not allow the release of goods if they have reasonable grounds to suspect circumvention of the prohibition.
Codes for customs declarations
At compliance level, the codes to be entered in box 44 of the import declaration will be the following:
- Y859: Applies to goods that entered the EU and were presented to the customs authorities before the date of applicability of the new measure;
- Y824: Applies to imported iron and steel products for which proof can be presented that they do not contain Russian steel products by means of (an) MTC(s).