HS 720310 Ferrous products obtained by direct reduction of iron ore
Quick Answer: Ferrous products obtained by direct reduction of iron ore, imported under HS 720310, enter the UK duty-free, the EU duty-free, and the US at a rate of Free, $2.21/t. This classification covers iron and non-alloy steel in primary forms, specifically those produced through the direct reduction of iron ore, yielding a product often referred to as "sponge iron" or "direct reduced iron" (DRI). These materials are typically used as a substitute for scrap steel in the production of new steel. Importers and customs brokers should note the specific unit duty in the US, which is applied per tonne. CustomTariffs aggregates this tariff data for global trade compliance.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7203100000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7203100000 | 0.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7203100000 | Free | — | ["t"] |
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.
How to Classify This HS Code?
What products does HS 720310 cover?
This subheading covers ferrous products obtained directly from the reduction of iron ore, excluding those in the form of pig iron or spiegeleisen. According to the World Customs Organization's Harmonized System Explanatory Notes, this category specifically includes products like iron sponge, direct reduced iron (DRI), and hot-briquetted iron (HBI). These are produced through processes that reduce iron ore without melting, resulting in a porous metallic iron. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database align with this definition, emphasizing the direct reduction process as the defining characteristic.
What falls outside HS 720310?
The following products are excluded from HS 720310: pig iron and spiegeleisen (classified under 7201), ferro-alloys (Chapter 72, Note 1(c)), and finished or semi-finished iron and steel products that have undergone further processing like rolling, forging, or casting. For example, steel bars, sheets, or wire, even if derived from direct reduced iron, would be classified under different headings within Chapter 72 based on their form and further processing. Products that are not primarily iron, such as iron ore itself or iron oxides, are also excluded.
What are common classification mistakes for HS 720310?
A common error is misclassifying products that have undergone minor subsequent processing. For instance, if direct reduced iron is briquetted for ease of handling, it remains within 720310. However, if it is melted and cast into ingots or further worked, it may fall under other headings. This is governed by General Interpretative Rule 2(a) of the Harmonized System, which addresses incomplete or unfinished articles. Importers must ensure the product's form and processing stage align strictly with the definition of "obtained by direct reduction of iron ore" without subsequent melting or significant transformation.
How should importers classify products under HS 720310?
The correct procedure for classifying products under HS 720310 involves a thorough examination of the manufacturing process and the final form of the product. Importers and customs brokers must verify that the ferrous product is a direct result of iron ore reduction without melting. Reviewing technical specifications, production certificates, and supplier declarations is crucial. Cross-referencing these details with the WCO HS Explanatory Notes and the specific tariff schedules of the importing country, such as the USITC HTS or the UK Trade Tariff, will confirm the correct classification.
How is the duty calculated for products under HS 720310?
A shipment of 100 metric tons of iron sponge, declared at a customs value of $30,000 USD, would attract a US duty of $1,500. This is calculated using the Most Favored Nation (MFN) duty rate of 5.0% ad valorem, applied to the declared customs value ($30,000 USD × 5.0% = $1,500 USD). This calculation is based on the rates published in the USITC Harmonized Tariff Schedule (HTS) for subheading 720310.00.00.
Which trade agreements reduce duties for HS 720310?
Several free trade agreements may reduce the applicable duty rate for HS 720310, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, originating products from Canada and Mexico can enter the United States duty-free. To claim this preference, a self-certified origin statement is typically required. For imports into the European Union, originating products from countries with preferential trade agreements may also benefit from reduced or zero duties, often requiring an EUR.1 movement certificate. The specific preferential rate and documentation depend on the origin country and the agreement in force.
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FAQ
What are the typical import duty rates for HS code 720310, 'Ferrous products obtained by direct reduction of iron ore'?
The duty rates for HS code 720310 can vary significantly by importing country. For example, under the United States Most Favored Nation (MFN) tariff, the rate is 0.00%. In the European Union, under the TARIC system, the rate is also 0.00%. The United Kingdom's tariff also lists this code as Free. However, some countries may apply specific duties, such as a rate of $2.21 per tonne in certain instances. It is crucial to consult the specific tariff schedule of the destination country for the definitive rate.
What specific criteria define 'Ferrous products obtained by direct reduction of iron ore' under HS code 720310?
HS code 720310 covers ferrous materials (primarily iron) that have undergone a direct reduction process. This process involves reducing iron ore into metallic iron without melting it, typically using reducing gases like carbon monoxide or hydrogen at temperatures below the melting point of iron. The resulting product is often in the form of sponge iron or hot-briquetted iron (HBI). Key classification criteria include the method of production (direct reduction) and the form of the material (e.g., lumps, pellets, briquettes).
How is the import duty calculated for HS code 720310 if a specific duty rate, like $2.21 per tonne, is applied?
If a specific duty rate is applied, such as $2.21 per tonne, the duty is calculated based on the net weight of the imported goods. For instance, if an importer brings in 100 metric tonnes of ferrous products classified under HS 720310 that are subject to a $2.21/tonne duty, the calculation would be: 100 tonnes * $2.21/tonne = $221.00 in customs duties. It is essential to ensure accurate weight declarations on customs documentation.
What documentation is typically required for importing goods under HS code 720310?
Standard import documentation for HS code 720310 generally includes a commercial invoice, packing list, and bill of lading or air waybill. Depending on the importing country and the specific nature of the product, a certificate of origin may be required, especially if preferential duty rates are claimed under a trade agreement. Importers should also be prepared to provide technical specifications or production process details if customs authorities request verification of the 'direct reduction' criteria.
Do common trade agreements, like USMCA or EU trade deals, offer preferential duty rates for HS code 720310?
Preferential duty rates for HS code 720310 are often available under various free trade agreements (FTAs). For example, goods originating from countries party to the United States-Mexico-Canada Agreement (USMCA) may benefit from reduced or zero duties if they meet the rules of origin. Similarly, the European Union has FTAs with numerous countries that could provide preferential treatment. To claim these benefits, importers must ensure the goods meet the specific rules of origin for the relevant trade agreement and possess the required proof of origin, such as a certificate of origin.