HS 720450 Remelting scrap ingots
Quick Answer: Remelting scrap ingots imported under HS 720450 enter the UK at 0.00%, the EU at 0.00%, and the US at Free, 74¢/t. This classification covers ingots made from ferrous metal waste and scrap, specifically those intended for remelting to produce new metal. These are typically cast forms of scrap, often with a relatively uniform shape to facilitate handling and melting. For importers and exporters, understanding the specific duty rate in the destination country is crucial for accurate landed cost calculations. Customs brokers should ensure proper documentation is provided to support the classification, particularly regarding the intended use of the material for remelting. CustomTariffs aggregates this duty information across various jurisdictions.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7204500000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7204500000 | 0.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7204500000 | 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 720450 cover?
This subheading covers "Remelting scrap ingots" of iron or steel, as defined by the World Customs Organization's Harmonized System Nomenclature. According to official definitions and interpretations, this includes ingots produced from the remelting of iron or steel scrap, intended for further processing into new steel products. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that these are specifically cast forms of scrap, not finished or semi-finished goods.
What falls outside HS 720450?
The following products are excluded from HS 720450: solid ingots of iron or steel not produced from remelted scrap, such as those cast directly from molten metal for further rolling or forging. Also excluded are finished or semi-finished steel products like bars, rods, or sheets, even if made from recycled steel. Unprocessed iron or steel scrap, in forms like turnings, shavings, or broken pieces, is classified under other subheadings within heading 7204, not as remelting scrap ingots.
What are common classification mistakes for HS 720450?
A common error is misclassifying solid ingots that are not derived from remelted scrap under this subheading. 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 here. Importers may also incorrectly classify semi-finished steel products as remelting scrap ingots, overlooking the specific definition of "ingots" as cast forms intended for remelting.
How should importers classify products under HS 720450?
The correct procedure for classifying products under HS 720450 involves a thorough examination of the product's origin and form. Importers and customs brokers must verify that the ingots are indeed produced from the remelting of iron or steel scrap. Reviewing the manufacturer's specifications, technical data sheets, and any relevant customs declarations from the exporting country is essential to confirm the material's composition and production method, ensuring compliance with the WCO's HS nomenclature.
How is the duty calculated for products under HS 720450?
A shipment of 10,000 kg of remelting scrap ingots, declared at a customs value of $3,000 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 ($3,000 USD × 0.015 = $45.00), plus a specific duty of $0.10 per kg ($0.10/kg × 10,000 kg = $1,000.00). The total duty is $1,045.00. This calculation is based on the rates published in the USITC Harmonized Tariff Schedule (HTS) for subheading 7204.50.0000.
Which trade agreements reduce duties for HS 720450?
Several free trade agreements may reduce the applicable duty rate for HS 720450, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, qualifying remelting scrap ingots originating from Canada or Mexico can be imported duty-free, provided a valid origin declaration is submitted. For goods from developing countries, the Generalized System of Preferences (GSP) may offer reduced or duty-free entry into the US, requiring a GSP Form A. Documentation requirements vary by agreement and jurisdiction.
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FAQ
What are the typical import duty rates for HS code 7204.50 (Remelting scrap ingots)?
For HS code 7204.50, the Most Favored Nation (MFN) duty rate in the United States is 0.00%. In the European Union, under the TARIC system, the rate is also 0.00%. The United Kingdom's Trade Tariff also lists this code as Free. It is crucial to verify specific rates based on the country of import and any applicable preferential trade agreements, as these can change. Always consult the latest official tariff schedules for the most accurate information.
What specific criteria define 'remelting scrap ingots' under HS code 7204.50?
HS code 7204.50 specifically covers 'remelting scrap ingots' of iron or steel. This classification generally applies to ferrous metal waste and scrap that has been melted and cast into ingots or blocks for the purpose of remelting. Key characteristics include being a product of melting and casting, intended for further processing (remelting), and originating from iron or steel. It is distinct from other forms of scrap metal that may not have undergone this remelting and casting process. The World Customs Organization (WCO) Harmonized System Explanatory Notes provide further guidance on the precise definition and scope.
What documentation is typically required for importing goods classified under HS 7204.50?
When importing goods under HS code 7204.50, standard customs documentation is required. This includes a commercial invoice, a packing list, and a bill of lading or air waybill. Depending on the exporting country and the importing country's regulations, a certificate of origin may be necessary, especially if preferential duty rates are claimed under a trade agreement. Importers and customs brokers should also be prepared to provide detailed descriptions of the material, its composition, and its intended use (remelting) to substantiate the HS classification. Some countries may require specific environmental or safety declarations for scrap materials.
How do trade agreements, such as USMCA or EU trade deals, affect the duty rates for HS 7204.50?
Trade agreements can significantly impact duty rates for HS code 7204.50. For instance, under the United States-Mexico-Canada Agreement (USMCA), goods originating from Canada or Mexico may benefit from preferential duty rates, often resulting in duty-free entry, even if the MFN rate is not zero. Similarly, trade agreements between the EU and other countries can provide reduced or eliminated duties. To claim preferential treatment, importers must ensure the goods meet the rules of origin specified in the relevant trade agreement and possess the required proof of origin documentation, such as a certificate of origin. Always consult the specific text of the applicable trade agreement and the importing country's customs authority for definitive requirements.
How is the duty calculated for HS 7204.50 if a specific duty rate, like 74¢/t, were applicable?
While HS code 7204.50 typically has ad valorem or free rates, if a specific duty rate like 74¢/t (US cents per metric ton) were applied, the calculation would be based on the net weight of the imported goods. For example, if an importer brought in 1,000 metric tons of remelting scrap ingots, the duty calculation would be: 1,000 metric tons × $0.74/metric ton = $740.00. This specific duty rate is applied per unit of weight, irrespective of the value of the goods. It is essential to use the correct unit of measure (e.g., metric tons, kilograms) as specified in the tariff schedule and to ensure accurate weight declarations on customs documents.