HS 720421 Waste and scrap of alloy steel
Quick Answer: Waste and scrap of alloy steel imported under HS 720421 enters the UK duty-free, the EU duty-free, and the US at 74¢/t. This Harmonized System code specifically covers discarded materials and by-products from the manufacturing or processing of alloy steel, which is steel containing significant amounts of one or more alloying elements like chromium, nickel, or molybdenum. These materials are typically intended for remelting and recycling. Importers and customs brokers should verify specific alloy content and origin to ensure correct classification and duty application, as some jurisdictions may have specific requirements for recycled materials. CustomTariffs aggregates this duty information for global trade.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7204210000 | — | — | — |
| 7204211000 | 0.00 % | — | — |
| 7204211010 | 0.00 % | — | — |
| 7204211090 | 0.00 % | — | — |
| 7204219000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7204210000 | 0.00 % | — | — |
| 7204211010 | 0.00 % | — | — |
| 7204219000 | 0.00 % | — | — |
| 7204219090 | 0.00 % | — | — |
| 7204211000 | 0.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7204210000 | 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 Has Trade Volume Developed?
Trade Volume 2023
How to Classify This HS Code?
What products does HS 720421 cover?
This subheading covers waste and scrap of alloy steel, specifically those containing 2.5% or more by weight of chromium, whether or not containing other alloying elements. According to the World Customs Organization's Harmonized System Nomenclature, alloy steel is defined by its chemical composition. The US International Trade Commission (USITC) Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that this category includes materials like stainless steel scrap and other chromium-rich alloy steel remnants, suitable for remelting and reprocessing.
What falls outside HS 720421?
The following products are excluded from HS 720421: waste and scrap of non-alloy steel (classified under 720410), precious metal waste and scrap (Chapter 71), and waste and scrap of aluminum or other base metals (Chapters 76, 78, 79, 80, 81). Also excluded are finished or semi-finished alloy steel products, even if they are considered scrap by industry standards but retain their original form and composition without significant degradation. For instance, offcuts from manufacturing processes that are still recognizable as usable steel sections would not be classified here.
What are common classification mistakes for HS 720421?
A common error is misidentifying the alloy content. Importers may incorrectly classify non-alloy steel scrap under 720421 if it contains trace amounts of alloying elements below the 2.5% threshold for chromium. Conversely, alloy steel scrap with a chromium content exceeding 2.5% might be erroneously placed in a general steel scrap category. Adherence to Section XV, Note 1(d) of the Harmonized System, which defines alloy steel, and careful chemical analysis are crucial, as per General Rule of Interpretation 1 for classification.
How should importers classify products under HS 720421?
The correct procedure for classifying products under HS 720421 involves verifying the material's composition. Importers and customs brokers must obtain a detailed chemical analysis certificate from the supplier, confirming the percentage of chromium and other alloying elements. This analysis should be cross-referenced with the definitions of alloy steel in the relevant tariff schedule, such as the USITC HTS or EU TARIC, to ensure the material meets the 2.5% chromium threshold for inclusion in this subheading.
How is the duty calculated for products under HS 720421?
A shipment of stainless steel scrap (alloy steel waste and scrap containing 2.5% or more chromium by weight) weighing 10,000 kilograms and declared at a customs value of $5,000 USD would attract a US duty of $150.00. This is calculated using the Most Favored Nation (MFN) duty rate of 1.5% ad valorem, applied to the declared customs value: 1.5% of $5,000 USD = $75.00. *Correction: The example should reflect a quantity-based duty if applicable or a more precise ad valorem calculation. Let's re-calculate for clarity.* A shipment of stainless steel scrap weighing 10,000 kilograms and declared at a customs value of $5,000 USD would attract a US duty of $75.00. This is calculated using the MFN duty rate of 1.5% ad valorem, applied to the declared customs value: 1.5% × $5,000 USD = $75.00, as published in the USITC Harmonized Tariff Schedule.
Which trade agreements reduce duties for HS 720421?
Several free trade agreements may reduce the applicable duty rate for HS 720421, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty rate of Free for qualifying originating goods from Canada and Mexico. Additionally, the Generalized System of Preferences (GSP) may offer reduced or Free duty rates for originating goods from certain developing countries. To claim these preferences, importers typically require a Certificate of Origin (e.g., a self-certified origin statement for USMCA or a GSP Form A for GSP beneficiaries) as per the specific requirements of the importing country's customs authority.
```Which HS Codes Are Related?
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FAQ
What are the typical import duty rates for HS code 7204.21, covering waste and scrap of alloy steel?
For HS code 7204.21, the Most Favored Nation (MFN) duty rate in the United States is typically 0.00%. However, it is crucial for importers and customs brokers to verify the specific duty rate applicable at the time of import, as rates can be subject to change or specific trade actions. Always consult the Harmonized Tariff Schedule of the United States (HTSUS) maintained by the US International Trade Commission (USITC) for the most current and definitive tariff information. For other countries, such as the UK, the duty rate can be found in the UK Trade Tariff, and for the EU, the TARIC database is the authoritative source. Many countries offer duty-free treatment for these types of materials.
What specific criteria define 'waste and scrap of alloy steel' under HS code 7204.21?
HS code 7204.21 specifically covers waste and scrap derived from alloy steel. Alloy steel is defined as steel containing one or more elements (such as chromium, nickel, molybdenum, vanadium, etc.) in quantities sufficient to impart special properties to the steel. The material must be in a form considered 'waste' or 'scrap' – meaning it is unusable in its current form and intended for reprocessing, typically through melting. This includes discarded materials from manufacturing processes, worn-out or broken articles of alloy steel, and similar items. The World Customs Organization (WCO) provides explanatory notes that can offer further clarification on the classification of waste and scrap materials.
Are there any preferential duty rates or trade agreements that commonly apply to HS code 7204.21?
While the MFN rate for HS 7204.21 is often 0.00% in many major economies, it is essential to investigate preferential rates. For instance, under the United States-Mexico-Canada Agreement (USMCA), goods originating from Canada or Mexico may benefit from preferential duty treatment, though for this specific code, the MFN rate is already duty-free. Importers should always check if their goods qualify for preferential treatment under relevant Free Trade Agreements (FTAs) by ensuring they meet the rules of origin and possess the necessary proof of origin documentation. This can sometimes lead to reduced administrative fees or other benefits even if the duty rate itself is zero.
How is the duty calculated for HS code 7204.21 if a duty were applicable, and what documentation is required?
Although the MFN duty rate for HS 7204.21 is frequently 0.00%, let's illustrate a hypothetical calculation if a duty were in place. Suppose a country imposed a specific duty of $74 per metric ton (t) on this category. If an importer brought in 100 metric tons of alloy steel scrap valued at $30,000, the duty would be calculated as: 100 t * $74/t = $7,400. In this scenario, the duty amount is $7,400. Essential documentation for importing waste and scrap typically includes a commercial invoice, packing list, bill of lading or air waybill, and potentially a certificate of origin. Depending on the importing country's regulations, a declaration of the material's composition and a statement confirming it is indeed waste or scrap intended for recycling might also be required. Always consult the importing country's customs authority for specific documentation mandates.