HS 721123 Not further worked than cold-rolled (cold-reduced)

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What products does HS 721123 cover?

This subheading covers flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not further worked than cold-rolled (cold-reduced). According to the World Customs Organization's Harmonized System Nomenclature, this category specifically includes steel that has undergone a cold-rolling process, which refines its surface finish and dimensional accuracy. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that these products are characterized by their reduced thickness and improved mechanical properties achieved through cold reduction, distinguishing them from hot-rolled equivalents.

What falls outside HS 721123?

The following products are excluded from HS 721123: flat-rolled steel products of a width of 600 mm or more, which are classified under HS 7209; steel that has been further worked beyond cold-rolling, such as by plating, coating, or painting; and products made from alloy steel or stainless steel, which fall under different HS chapters or headings. For instance, galvanized steel sheet, even if cold-rolled, would be classified elsewhere, typically under HS 7210 or 7212, depending on the coating and width.

What are common classification mistakes for HS 721123?

A common error is misinterpreting "not further worked than cold-rolled" to include products that have undergone subsequent treatments. For example, steel that has been pickled, oiled, or even lightly passivated after cold-rolling might still fall under this subheading, but if it has been coated with zinc, paint, or plastic, it would be excluded. Adherence to 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 to avoid misclassification.

How should importers classify products under HS 721123?

The correct procedure for classifying products under HS 721123 involves a thorough examination of the product's manufacturing process and physical characteristics. Importers and customs brokers must verify that the steel is indeed flat-rolled, less than 600 mm in width, and has undergone only cold-rolling without any subsequent significant working or coating. Reviewing technical specifications, mill certificates, and consulting the official tariff schedules of the importing country, such as the USITC HTS or the UK Trade Tariff, are essential steps.

How is the duty calculated for products under HS 721123?

A shipment of 10,000 kg of cold-rolled steel strip, declared at a customs value of $15,000 USD, would attract a US duty of $750.00. This is calculated using the Most Favored Nation (MFN) duty rate of 5.0% ad valorem, applied to the declared customs value ($15,000 USD × 0.05 = $750.00). This calculation is based on the duty rate published in the USITC Harmonized Tariff Schedule for HS code 721123.00.00.

Which trade agreements reduce duties for HS 721123?

Several free trade agreements may reduce the applicable duty rate for HS 721123, including the United States-Mexico-Canada Agreement (USMCA), under which originating goods may be admitted duty-free. For goods originating from the United Kingdom, the UK-EU Trade and Cooperation Agreement could also provide preferential rates, potentially reducing duties to Free. The primary countries benefiting from these agreements for this product category would include Canada, Mexico, and EU member states. To claim preference, a valid USMCA Certificate of Origin or a UK EUR.1 movement certificate, as applicable, is typically required.

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