Certification Forwarding | 2024 ZIM Final

Early filing and monitoring secured EU duty-free quota benefits.

A Company

2024

Steel and Metal Manufacturing

A Korean steel exporter avoided a 25% EU tariff by early customs filing and quota monitoring, saving costs and boosting competitiveness.

Analysis

"Timing and tracking: The keys to winning the quota race."

The success of securing quota benefits depended on two key factors: early filing and real-time monitoring. The EU allocates quotas based on when customs declarations are accepted, not when goods arrive. Filing early meant the client could reserve their share of the quota before others.

The team used Korea’s advance filing system to submit their customs declaration as soon as the shipment left the port of Busan. This proactive filing gave them a significant advantage over competitors who waited until their goods arrived in Spain.

Additionally, the company tracked real-time quota balances using the EU’s TARIC database. This allowed them to ensure that the quota was still available before filing their declaration. By acting quickly and strategically, they avoided unnecessary costs and stayed competitive in the EU market.

What we are doing for efficient monitoring:

Set Up Alerts: Some tools allow users to set alerts when quotas are about to be exhausted.
Consult Your Broker: Customs brokers have access to real-time data and can manage this process on your behalf.
Monitor Periodically: As quotas fluctuate, regular checks will help you stay informed.

Challenge

"Acting fast to secure limited quota benefits before competitors."

The client faced a tough challenge exporting flat-rolled steel under HS Code 7211.90.8020 to Spain. To import duty-free under the EU quota system, they needed to act quickly to secure the quota, as it is allocated on a first-come, first-served basis. If the quota ran out, they would face a 25% tariff, which would significantly increase costs and reduce their competitiveness.

Another hurdle was the need to file the customs declaration early. The EU bases quota allocations on the order of customs declaration acceptance, not on the arrival date of goods. Any delay in filing could result in the quota being exhausted before their declaration was processed. This made timing critical.

The company also needed a way to monitor real-time quota balances and coordinate with customs officials to ensure their shipment was eligible for the quota benefit.

Solution

"Early action and precise tracking ensured success."

The company implemented a clear plan to secure the quota benefit. They filed a pre-lodged customs declaration immediately after the goods were shipped from Busan, taking advantage of Korea’s advance filing system. This ensured their customs declaration was processed before those of competitors who filed post-arrival in Spain.

Real-time tracking of quota availability through the EU’s TARIC database gave them the confidence to proceed. They checked the quota balance to confirm availability before filing their declaration.

With all the necessary documents prepared in advance (e.g., Certificate of Origin and Commercial Invoice), the customs process was seamless. By combining early action, quota monitoring, and compliance with EU rules, they secured duty-free access and avoided the 25% tariff.

Tariff Quotas (HS Code 7211.90.8020 - South Korea):
- The application of a quota system highlights the EU's preferential trade agreement with South Korea, where a contingent quota system is used to regulate duty-free entry. If the quota is exhausted, a high duty rate (25%) applies to protect the EU steel industry.
- To ensure goods qualify for this preferential treatment, accurate documentation and timely shipping schedules are critical.

Maintance

"Staying ahead with real-time updates and early filing."

To continue benefiting from EU quotas, the company implemented an ongoing strategy. They regularly checked the TARIC database to monitor quota balances and coordinated shipment schedules to align with periods of availability.

They also streamlined their internal processes for preparing and filing customs declarations, ensuring every declaration could be submitted early. By training their staff on both Korean and EU customs procedures, they minimized errors and delays.

Working with professional customs brokers and logistics partners ensured the company stayed updated on regulatory changes and best practices. These steps allowed them to secure quotas for future shipments, maintaining their cost advantage and competitiveness in the EU market.