Iron Ore Imports to the EU: HS 2601 Tariff & Landed Cost
Iron ore HS code 2601. EU tariff rates, TARIC codes, import duty, Fe% penalties, landed cost. Calculate landed cost for EU steel mills.
Importing Iron Ore to EU: Tariff, CBAM & Compliance Guide
Iron ore (HS 2601) is imported to the EU primarily by steel mills (ArcelorMittal, Voestalpine, ThyssenKrupp). EU tariffs are 0% on raw iron ore, but from 2026, the CBAM (Carbon Border Adjustment Mechanism) applies carbon pricing to imports. This guide covers HS codes, tariff rates, Fe% quality penalties, CBAM compliance, and landed cost calculation.
- HS Code: 2601 (iron ore & concentrates)
- EU Import Duty: 0% (nil tariff, but CBAM applies from Oct 2023)
- CBAM Cost: EUR 50–100/MT (estimated, depends on carbon intensity)
- Quality Spec: 62% Fe minimum (basis); penalties for SiO2, Al2O3, P
- Major EU Ports: Hamburg (Germany), Rotterdam (Netherlands), Antwerp (Belgium)
- Typical Landed Cost: CIF + CBAM + VAT (19–27%) + port fees + inland transport
HS Code Breakdown: 2601 Iron Ore
| HS Code | Description | EU Duty | Typical Use |
|---|---|---|---|
| 2601.11 | Iron ore & concentrates, roasted | 0% | Steel mills (high Fe content) |
| 2601.12 | Iron ore & concentrates, non-roasted | 0% | Raw ore (majority of trade) |
| 2601.20 | Iron ore agglomerates (sinter, pellets) | 0% | Blast furnace feed (pre-processed) |
EU CBAM (Carbon Border Adjustment Mechanism): Key Impact
Starting October 1, 2023, the EU CBAM applies a carbon price to imports of iron ore and other carbon-intensive goods. Under CBAM, importers must:
- Calculate or estimate the embedded carbon emissions (tCO2e/MT of iron ore)
- Purchase CBAM certificates at the current EU ETS (Emissions Trading System) price (typically EUR 50–100/tCO2e)
- File quarterly CBAM reports to EU customs authorities
- Retain documentation for 5 years
Estimated CBAM cost for iron ore: 0.5–1 tCO2e/MT × EUR 70/tCO2e = EUR 35–70/MT. For a 100,000 MT shipment, this is EUR 3.5–7M additional cost.
Calculating Landed Cost: Iron Ore Import to EU
Numerical Example: Real Example: 100,000 MT Fe62% Iron Ore Fines CIF Hamburg
CBAM is the largest new cost driver. CIF EUR 110/MT + CBAM EUR 49/MT + VAT EUR 30.2/MT + Port/Inland EUR 8/MT ≈ EUR 197/MT landed. Use Landed Cost Calculator to adjust for actual Fe%, penalties, and port selection.
Quality Specifications & Fe% Penalties
Iron ore contracts specify Fe% (iron content) and allow penalties for impurities (SiO2, Al2O3, P, S). Each 0.1% deviation from contract spec triggers a USD 0.50–1 penalty per MT.
| Parameter | Spec (62% Fe Fines) | Penalty per 0.1% Over Limit |
|---|---|---|
| Fe Content | 61.5–62.5% | EUR 0.50–0.80/MT |
| SiO2 (Silica) | 4–5% max | EUR 0.20–0.30/MT |
| Al2O3 (Alumina) | 2–3% max | EUR 0.10–0.20/MT |
| P (Phosphorus) | 0.06–0.10% max | EUR 5–10 per 0.01% over |
Compliance Checklist: Iron Ore Import to EU
- TARIC Classification: Confirm TARIC 2601.12.20 or 2601.12.30 (iron ore concentrates). Roasted ore may be 2601.11.
- CBAM Registration: Register as importer with EU CBAM Authority before first import. Provide company, facility, contact info.
- CBAM Reporting: Quarterly (Jan, Apr, Jul, Oct) file CBAM report listing imports, carbon content, CBAM certificates purchased.
- Pre-Shipment Inspection (PSI): Independent test (SGS/BV) at load port per ISO 3082: Fe%, SiO2, Al2O3, P, S content.
- Bill of Lading: List HS/TARIC code, commodity (iron ore fines/pellets), Fe%, SiO2%, and tonnage.
- Invoice: Include CIF value, Fe% spec, quality assay, CBAM estimate, seller details per EU Customs.
- VAT Reverse Charge: Intra-EU (EU to EU) imports may use VAT reverse charge; non-EU imports pay import VAT at port (19–27%).
- Port of Entry: Hamburg, Rotterdam, or Antwerp recommended (direct steel mill connections).
- Outturn Inspection: Independent re-test at discharge confirms quality. If below contract Fe%, file claim within 30 days.
Frequently Asked Questions
Q: What is CBAM and how much does it cost per MT of iron ore?
A: CBAM (Carbon Border Adjustment Mechanism) is an EU carbon pricing scheme. Iron ore typically has 0.5–1 tCO2e/MT embedded carbon. At EUR 70/tCO2e, cost = EUR 35–70/MT. This is ON TOP of CIF cost and VAT.
Q: Can I deduct CBAM cost from duty?
A: No. CBAM is separate from tariff duty (which is 0% on iron ore anyway). VAT may be recoverable if you're VAT-registered and the ore is used for taxable activity (steel production).
Q: What is Fe% and why do penalties exist?
A: Fe% (iron content) is the commodity specification. Higher Fe% = more usable iron per ton = higher value. If contract says "62% Fe min" and outturn is 61.8%, you're 0.2% short = penalty of ~EUR 1/MT on 100k MT = EUR 100k claim.
This guide reflects EU trade policy & CBAM as of Aug 2026. Always verify current TARIC codes and CBAM rates with EU Customs authorities before importing.