Northern Irish steel shipments via south can avoid duty

Steel from the rest of the world can be sold into Northern Ireland duty free if it is shipped into southern Ireland first, where it can clear into the EU quota for the respective exporting country, government officials said.

Ports in southern Ireland do not have the same storage or handling facilities as those in the north, meaning it might not always be a viable option — this would also incur additional transport costs relative to shipments made straight into Northern Ireland.

Regarding the 25pc duty on steel from the rest of the world shipped direct into Northern Ireland, government representatives said: "We are keen to address this issue as quickly as possible." The officials said they would be happy to speak to companies with concerns, but did not issue guidance on whether the tariff could be waived or removed — although they did suggest guidance would be forthcoming soon.

A total of 12 European member states recently wrote to the European Commission requesting a review of the safeguard, suggesting it needs to be reviewed. Should this be the case, 25pc tariffs could be levied on third-country steel for a longer period, unless the UK and EU negotiate a different approach whereby the imports could be registered against European tariff-rate quotas.

EU steel can be sold tariff and quota free into Northern Ireland, while material from Great Britain can clear against the EU's import quota for UK steel.

By Colin Richardson