Recommendation 28

The Department disclosed that there are in fact circumstances where its tariffs apply to steel products not made in the UK.76 For example, it said it was not able to distinguish between different sizes of steel pipes, because all diameters and lengths are given the same standard industrial classification code, and that code is the only data that HM Revenue & 70 Qq 12, 32 71 Qq 53-54 72 Department for Business and Trade, Steel strategy, pages 11, 15 73 Q 92 74 Q 86 75 Qq 86, 96-97 76 Q 87 18 Customs have to enforce the trade measure. But only some diameters and lengths are made in the UK. It said that companies affected would have to use the quota system or pay the tariffs, which might put smaller companies out of business.77 Industry groups have also reported that the tariff regime may discourage companies that import steel from manufacturing products in the UK, and the British Chamber of Commerce has said that the tariffs incentivise companies to import finished products, which are not subject to tariffs.78