HS 720840 Not in coils, not further worked than hot-rolled, with patterns in relief

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What products does HS 720840 cover?

This subheading covers flat-rolled products of iron or non-alloy steel, not in coils, and not further worked than hot-rolled, which possess patterns in relief. According to the World Customs Organization (WCO) Harmonized System Nomenclature, this includes items like checkered plate or patterned steel sheets produced by hot rolling processes that impart a raised design onto the surface. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database provide further detail, confirming that the key characteristics are the absence of coiling, hot-rolling as the primary working process, and the presence of raised patterns, such as diamond or tear-drop shapes.

What falls outside HS 720840?

The following products are excluded from HS 720840: flat-rolled products that are in coils, even if they have patterns in relief, which are classified under HS 720825 or 720890. Additionally, products that have undergone further working beyond hot rolling, such as cold-rolling, galvanizing, or painting, are excluded. For instance, hot-rolled steel sheets with a diamond pattern that have been subsequently galvanized would be classified under a different heading, typically within HS 7210. Products that are not hot-rolled or do not have patterns in relief are also excluded.

What are common classification mistakes for HS 720840?

A common error is misinterpreting "further worked than hot-rolled." If a product has undergone any process after hot rolling, such as pickling, oiling, or minor cutting, it may be classified elsewhere, depending on the extent of the working. For example, hot-rolled steel with a pattern that has been cut to specific dimensions might fall under HS 720851 if it is of a certain thickness. Importers may also mistakenly classify smooth, unpatterned hot-rolled steel under this subheading, overlooking the requirement for "patterns in relief."

How should importers classify products under HS 720840?

The correct procedure for classifying products under HS 720840 involves a systematic review of the product's characteristics against the WCO HS General Rules for the Interpretation (GRI). Importers and customs brokers must first confirm that the product is flat-rolled iron or non-alloy steel, is not in coils, and has been hot-rolled. Crucially, they must verify the presence of raised patterns on the surface. If these conditions are met, and no further working beyond hot rolling has occurred, then HS 720840 is likely appropriate. Consulting the specific tariff schedule of the importing country, such as the USITC HTS or the UK Trade Tariff, is essential.

How is the duty calculated for products under HS 720840?

A 10,000 kg shipment of hot-rolled steel plate with a diamond pattern, declared at a customs value of $8,000 USD, would attract a US duty of $800. This is calculated using the Most Favored Nation (MFN) duty rate of 10% ad valorem, applied to the declared customs value, as published in the USITC Harmonized Tariff Schedule. The calculation is: 10% × $8,000 USD = $800 USD. Note that if the product were classified by weight, the calculation would differ based on the per-kilogram duty rate.

Which trade agreements reduce duties for HS 720840?

Several free trade agreements may reduce the applicable duty rate for HS 720840, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, originating goods from Canada and Mexico can enter the United States duty-free. To claim this preference, a self-certified origin statement on the commercial invoice or a separate declaration is typically required. For goods originating from countries benefiting from the Generalized System of Preferences (GSP) in the EU, a EUR.1 movement certificate may be needed to achieve preferential rates, often resulting in a reduced duty or free entry, depending on the specific country and product.

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