EU Announces Distribution of Tariff Quotas under the New Steel Regulation (Effective 1 July 2026)
The European Commission has published Commission Implementing Regulation (EU) 2026/1457 of 29 June 2026, which establishes the country allocation of tariff quotas under the new EU Steel Regulation (Regulation (EU) 2026/1384).
The Regulation applies from 1 July 2026 until 31 December 2026 and sets out the distribution of tariff quotas covering 26 steel product categories. Tariff quotas are administered on a first-come, first-served basis.
Malaysia receives a country-specific quota for only one product category
Under Annex I, Malaysia has been allocated a country-specific tariff quota only for Product Category 16 – Non-Alloy and Other Alloy Wire Rod.
| Product Category | Allocation |
| 16 – Non-Alloy and Other Alloy Wire Rod 7213.10.00, 7213.20.00, 7213.91.10, 7213.91.20, 7213.91.41, 7213.91.49, 7213.91.70, 7213.91.90, 7213.99.10, 7213.99.90, 7227.10.00, 7227.20.00, 7227.90.10, 7227.90.50, 7227.90.95 | 86,683.40 MT annually |
| Quarterly allocation | 21,670.85 MT per quarter |
| Order number | 09.9901 |
This means Malaysian exporters of Product Category 16 may export under Malaysia’s dedicated country-specific quota until that quota is exhausted.
Malaysia does NOT receive country-specific quotas for the remaining product categories
For the other 25 product categories, Malaysia does not appear as a country with a dedicated quota allocation in Annex I.
Accordingly, exports of these products from Malaysia must be entered under the “Other countries” residual tariff quota, where available.
This follows the quota allocation mechanism established under the Regulation, whereby countries without a country-specific allocation may only access the residual quota.
Malaysia is not eligible for the FTA quota
The Regulation divides tariff quotas into MFN Part and FTA Part. The FTA Part is reserved exclusively for countries having an existing or future Free Trade Agreement with the European
Union, as listed in Section 1 of Annex II. Malaysia is not listed as an EU FTA partner under Annex II.
Therefore, Malaysia exporters
- cannot access the FTA Quota – CSQ
- cannot access the FTA Quota – Other Countries
- are limited to either:
- Malaysia’s country-specific quota (only Product Category 16); or
- the MFN residual “Other countries” quota for products without a Malaysian allocation.
For all product categories covered by the Regulation, imports exceeding the applicable tariff quota are subject to an additional customs duty of 50% ad valorem, as specified in Annex I. Exporters should therefore monitor quota utilization closely before shipping.
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