Import offers for hot rolled coil from Asia into Italy have decreased by approximately €20/tonne ($21) compared to last month, but buying interest is low. Italian importers using the country’s unique customs clearance amendment system meanwhile aim to clear imported material stocked at ports by year-end.

HRC offers from Asian suppliers range from €570-580/tonne ($617-628) cfr Italy, while Turkish material is available at €570/t cfr.

According to a trader's analysis, current spot market coil sales for import are expected to go through customs clearance only in April 2025.

Italian buyers will be able to clear through customs without duty material imported in the second quarter but left in consignment at ports no earlier than from 1 January 2025, says one Italian importer of HRC. This is because they need to clear tonnages gradually each quarter to avoid duty payment. Italy allows buyers to modify or cancel their customs clearing authorisations and use partial clearing, which is a feature unique only to this country.

Each EU country's customs authority has the freedom to establish its own regulations while following the EU quota allocation procedure. Companies have the option to choose whether to clear the entire imported amount or only a portion of it in order to avoid paying some of the duties, according to the Italian customs authority, Agenzia delle Dogane e Monopoli (ADM).

Buyers have the option to restrict the import authorisation to only the portion of the goods that falls within the duty-free quota. Alternatively, one may choose to complete the import for the entire quantity declared and pay duties on the tonnage above the duty-free allocation.

On 1 July, a number of buyers in Italy made the decision to leave approximately 40% of their imports at ports in order to circumvent payment of the prohibitive duty. According to one source, the tonnage of coil that a buyer leaves at the port will be added on top of any newly imported quantities, with the buyer then able to decide what volume to clear in a given period.

At the beginning of each quarter, the buyer will enter the code 00100 into the ADM system, which will generate a new calculation for the portion of the goods eligible for the quota. The buyer will then assess the quantity of material to be cleared through customs.

From now until the end of the year, several importers who spoke to Kallanish intend to systematically clear the majority of imports that have been left at ports. ADM refers to this regulation as pro-rata allocation, However, sources point out that there are costs involved in transporting and storing the coil, which carries the risk of material deterioration.