Brussels, July 1. The European Union’s new steel regulation officially came into force, replacing the previous safeguard measures that had governed steel imports since 2018. The total annual tariff‑free import quota for overseas steel shipments has been reduced to 18.35 million tonnes, and any volumes exceeding the quota will face a punitive 50 percent import duty. One core provision of the updated rules is the “melt‑and‑pour” origin verification requirement, which mandates importers to submit formal documentation verifying where steel products are originally melted and cast before entering EU customs territory. European Commission officials stated that this rule is designed to curb transshipment practices, where exporters reroute steel through third‑party countries to bypass quota limits. The whole regulatory framework will remain valid until 2031, aiming to lift capacity utilization rates for local European steel mills and encourage large‑scale investment in low‑carbon steel transformation projects. Global steel traders have been adjusting shipment schedules and exploring alternative markets in Southeast Asia, the Middle East and Latin America to offset higher risks associated with European exports. Many market participants also point out that combined with the CBAM carbon border adjustment mechanism, the new import system will further increase the overall compliance cost for non‑EU steel suppliers shipping into European markets.