HS 720270 Ferro-molybdenum
Quick Answer: Ferro-molybdenum imported under HS 720270 enters the UK at 0.00%, the EU at 2.70%, and the US at 4.5% (MFN). This Harmonized System code specifically covers ferro-molybdenum, which is a ferroalloy of iron and molybdenum, primarily used as an additive in the production of steel to enhance its strength, hardness, and resistance to corrosion. Importers should be aware of potential preferential duty rates available in the US for certain trading partners. CustomTariffs aggregates this information, highlighting the varying tariff structures across major markets for this critical industrial material.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7202700000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7202700000 | 2.70 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7202700000 | 4.5% | Free (17 programs) | ["kg","Mo kg"] |
Special rates available under trade agreements including USMCA, KORUS, GSP.
Duty rates sourced from the USITC (US International Trade Commission) Harmonized Tariff Schedule (HTS) (accessed 2/22/2026), EU TARIC – DG TAXUD (Directorate-General for Taxation and Customs Union) (accessed 2/22/2026), and UK Trade Tariff – HMRC (His Majesty's Revenue and Customs) (accessed 2/22/2026).
Data compiled and presented by HSRates.
Which Trade Agreements Reduce Duties for HS 7202.70?
Imports of Ferro-molybdenum may qualify for reduced or zero duty rates under free trade agreements and preferential programs. The overview below shows available preferential arrangements by jurisdiction, compiled by HSRates from official tariff and trade agreement data.
United States (HTSUS)
Free for USMCA, KORUS, and 15 other programs
European Union (TARIC)
Preferential rate data not yet available.
United Kingdom
Preferential rate data not yet available.
Preferential rates require proof of origin and may be subject to quotas or conditions. Always verify eligibility with a licensed customs broker.
Data compiled by HSRates.
Which Preferential Rates Apply to Your Origin Country?
Select an origin country to see if preferential rates apply.
Preferential rates based on available trade agreements. Actual rates may vary.
How to Classify This HS Code?
What products does HS 720270 cover?
This subheading covers ferro-molybdenum, a master alloy of iron and molybdenum. According to the World Customs Organization's Harmonized System Nomenclature, this category specifically includes alloys of iron or steel with molybdenum. The US International Trade Commission (USITC) Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that ferro-molybdenum, typically containing between 50% and 80% molybdenum by weight, falls under this classification when presented in lumps, grains, powders, or similar forms for use in steelmaking and other metallurgical applications.
What falls outside HS 720270?
The following products are excluded from HS 720270: pure molybdenum, molybdenum ores and concentrates, and molybdenum compounds not alloyed with iron or steel. For instance, molybdenum oxide (HS 282590) or molybdenum wire (HS 711590) would be classified separately. Additionally, master alloys of iron with other elements, such as ferrovanadium (HS 720230) or ferrosilicon (HS 720221/720229), are not covered by this specific subheading and require distinct classification based on their primary alloying element.
What are common classification mistakes for HS 720270?
A common error is misclassifying products based on their physical form rather than their chemical composition and intended use as a ferro-alloy. For example, finely powdered molybdenum that is not alloyed with iron would not fall under 720270. Furthermore, confusion can arise with other iron-based master alloys. Adhering to General Rule of Interpretation (GRI) 1, which states that classification shall be determined according to the terms of the headings and any relative section or chapter notes, is crucial for accurate classification.
How should importers classify products under HS 720270?
The correct procedure for classifying products under HS 720270 involves a thorough examination of the product's composition and intended use. Importers and customs brokers must verify that the product is indeed an alloy of iron and molybdenum, typically containing a significant percentage of molybdenum. Reviewing the supplier's technical data sheets and certificates of analysis is essential. Cross-referencing this information with the official tariff schedules of the importing country, such as the USITC HTS or the EU TARIC, will confirm the correct classification.
How is the duty calculated for products under HS 720270?
A shipment of ferro-molybdenum weighing 10,000 kilograms and declared at a customs value of $50,000 USD would attract a US duty of $2,500. This is calculated using the USITC Harmonized Tariff Schedule's Most Favored Nation (MFN) duty rate for HS 720270, which is 5% ad valorem. The calculation is $50,000 (declared value) × 0.05 (duty rate) = $2,500 (duty amount). Note that specific import duties can vary by country.
Which trade agreements reduce duties for HS 720270?
Several free trade agreements may reduce the applicable duty rate for HS 720270, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, qualifying ferro-molybdenum originating from Canada or Mexico can be imported duty-free. To claim this preferential rate, a valid USMCA certification of origin is required. Additionally, certain developing countries may benefit from preferential rates under the Generalized System of Preferences (GSP), often requiring a GSP Form A to substantiate origin.
```Which HS Codes Are Related?
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FAQ
What are the typical import duty rates for HS code 7202.70 (Ferro-molybdenum)?
The Most Favored Nation (MFN) duty rate for ferro-molybdenum (HS 7202.70) is typically 3.5% ad valorem. However, preferential duty rates are available under various trade agreements. For example, under the USMCA, the rate is Free. Many other agreements, such as those with Australia (AU), Chile (CL), South Korea (KR), and Singapore (SG), also offer Free entry. It is crucial to consult the specific tariff schedule of the importing country and verify eligibility for preferential treatment, which often requires a valid Certificate of Origin.
How is ferro-molybdenum classified under HS code 7202.70, and what are the key criteria?
HS code 7202.70 specifically covers 'Ferro-molybdenum'. Classification relies on the product being an alloy of iron (ferro) with a significant content of molybdenum. Generally, for classification as ferro-molybdenum, the material must contain by weight 5% or more of molybdenum. This ensures that the product is recognized as a master alloy used primarily in steelmaking to impart specific properties, rather than a simple iron or molybdenum product. Verification often involves checking the product's chemical composition.
What documentation is typically required for importing ferro-molybdenum under HS 7202.70?
Standard documentation for importing ferro-molybdenum (HS 7202.70) includes a commercial invoice, packing list, and bill of lading or air waybill. Crucially, a Certificate of Origin is often required, especially if claiming preferential duty rates under a trade agreement. For customs valuation and classification, a detailed product specification or chemical analysis certificate confirming the molybdenum content may also be requested by customs authorities to verify compliance with the definition of ferro-molybdenum.
How is the ad valorem duty for ferro-molybdenum calculated, and can you provide an example?
Ad valorem duty is calculated as a percentage of the declared value of the imported goods. For example, if the MFN duty rate for ferro-molybdenum (HS 7202.70) is 3.5% and the customs value of a shipment is $100,000 USD, the duty amount would be calculated as: $100,000 USD (Customs Value) × 0.035 (Duty Rate) = $3,500 USD. This amount is then paid to customs. If the importing country uses a different duty basis (e.g., specific duty per ton), the calculation would differ accordingly.
Which major trade agreements offer preferential duty rates for ferro-molybdenum (HS 7202.70) into the United States?
Several trade agreements provide preferential duty rates for ferro-molybdenum (HS 7202.70) into the United States. Key examples include:
- United States-Mexico-Canada Agreement (USMCA): Offers Free entry.
- Free Trade Agreements with countries like Australia (AU), Chile (CL), South Korea (KR), and Singapore (SG) generally provide for Free entry or significantly reduced rates, often requiring a valid Certificate of Origin. Importers must ensure their product meets the rules of origin stipulated in the relevant agreement and possess the necessary documentation to claim these benefits.