HS 721020 Plated or coated with lead, including terne-plate

The Most Favored Nation (MFN) duty rate for HS code 721020 is generally 0.00% ad valorem in many major trading economies, including the United States. However, preferential duty rates under Free Trade Agreements (FTAs) or specific trade programs may apply, potentially leading to reduced or free entry. For instance, under the USMCA, qualifying goods may receive preferential treatment. It is crucial to consult the specific tariff schedule of the importing country for the most accurate and up-to-date duty rates, as these can change. For example, the UK Global Tariff lists a 0.00% duty rate for this classification.

HS code 721020 specifically covers flat-rolled products of iron or non-alloy steel that have been plated or coated with lead, including 'terne-plate' (which is typically a tin-lead alloy coating). The key criteria are: 1. The base material must be flat-rolled products of iron or non-alloy steel. 2. The product must be plated or coated with lead or a tin-lead alloy. The width of the rolled product and its thickness are also important for determining the correct subheading within Chapter 72, but the lead or terne-plate coating is the defining characteristic for this specific code. Refer to Chapter 72 Notes and Explanatory Notes of the Harmonized System for detailed definitions.

The duty for HS code 721020 is typically calculated on an ad valorem basis, meaning a percentage of the declared customs value of the goods. For example, if the MFN duty rate is 0.00%, the duty amount would be $0.00 regardless of the value. However, if a specific country's tariff imposed a rate, say 3.5% ad valorem, and you imported 10,000 kilograms of terne-plate valued at $20,000 USD, the duty calculation would be: Duty = Value of Goods × Duty Rate. In this hypothetical scenario with a 3.5% duty rate: Duty = $20,000 × 0.035 = $700.00. Always verify the applicable duty rate and any potential additional duties or taxes (like VAT or GST) with the importing country's customs authority.

Standard import documentation for HS code 721020 generally includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list specifying the contents of each package; and a bill of lading or air waybill for transportation. Crucially, for preferential duty claims under trade agreements, a Certificate of Origin is usually mandatory, demonstrating that the goods meet the rules of origin stipulated by the agreement. Importers should also be prepared to provide technical specifications or test reports if requested by customs to verify the composition and coating of the steel product. Consulting the importing country's customs regulations is essential for a complete list.

Several trade agreements could potentially offer preferential duty rates for goods classified under HS code 721020. For imports into the United States, the United States-Mexico-Canada Agreement (USMCA) is a key agreement to consider, provided the terne-plated steel meets the stringent rules of origin. Other agreements like the Central America Free Trade Agreement (CAFTA-DR) might also apply depending on the origin of the goods. For imports into the European Union, agreements with countries like the UK (following Brexit) or Canada could offer reduced tariffs. For imports into the UK, the UK Global Tariff reflects rates, and specific trade deals with partner countries may provide preferential access. Always verify the specific rules of origin and eligibility requirements for each trade agreement with the relevant customs authority or through official tariff databases like the EU's TARIC or the USITC's Harmonized Tariff Schedule.