HS 721320 Other, of free-cutting steel
Quick Answer: Steel wire rod of free-cutting steel, classified under HS code 7213.20, enters the UK duty-free, the EU duty-free, and the US at a Most Favored Nation (MFN) rate of 5.5%. This specific classification pertains to hot-rolled or cold-formed steel wire rod that has been alloyed with elements like sulfur, phosphorus, or lead to improve its machinability, making it ideal for automated cutting processes. Importers should be aware of potential variations in duty rates based on specific free-cutting steel compositions and the importing country's trade agreements. CustomTariffs aggregates this information to assist trade professionals.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7213200000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7213200000 | 0.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7213200010 | — | — | ["kg"] |
| 72132000 | Free | — | — |
| 7213200080 | — | — | ["kg"] |
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 721320 cover?
This subheading covers bars and rods, of iron or non-alloy steel, specifically those made of "free-cutting steel" that are not further worked than cold-formed or cold-drawn. According to the World Customs Organization's Harmonized System Nomenclature, free-cutting steel is defined by its higher sulfur content (typically 0.08% to 0.30%) and sometimes phosphorus content, which enhances machinability. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database align with this definition, focusing on the chemical composition that facilitates easy cutting and chip formation during machining operations.
What falls outside HS 721320?
The following products are excluded from HS 721320: steel bars and rods that have undergone further working beyond cold-forming or cold-drawing, such as threading, grooving, or polishing. Also excluded are free-cutting steels that are not in the form of bars or rods, or those made from alloy steel or stainless steel. For instance, free-cutting steel wire (classified under HS 7217) or free-cutting steel plates (classified under other headings in Chapter 72) would not fall under this specific subheading.
What are common classification mistakes for HS 721320?
A common error is misinterpreting the "free-cutting steel" designation. Importers may incorrectly classify standard carbon steel bars or rods as free-cutting steel without verifying the specific chemical composition, particularly the sulfur content, which is a key differentiator. Furthermore, confusion can arise if the steel has undergone processes beyond cold-forming or cold-drawing, which would necessitate classification under a different subheading according to General Rule of Interpretation (GRI) 1 of the Harmonized System.
How should importers classify products under HS 721320?
The correct procedure for classifying products under HS 721320 involves a two-step verification process. First, confirm that the product is indeed a bar or rod of iron or non-alloy steel. Second, verify that the steel meets the chemical composition criteria for free-cutting steel, typically by reviewing the mill test certificate or product specifications for sulfur content between 0.08% and 0.30%. Ensure no further working beyond cold-forming or cold-drawing has occurred.
How is the duty calculated for products under HS 721320?
A shipment of 10,000 kg of free-cutting steel bars, declared at a customs value of $25,000 USD, would attract a US duty of $1,125.00. This is calculated using the USITC Harmonized Tariff Schedule's Most Favored Nation (MFN) duty rate of 4.5% ad valorem, applied to the declared customs value ($25,000 USD × 0.045 = $1,125.00). Note that some countries may have specific weight-based duties for certain steel products, but for this example, ad valorem is used.
Which trade agreements reduce duties for HS 721320?
Several free trade agreements may reduce the applicable duty rate for HS 721320, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, originating goods can achieve a duty rate of Free. Originating goods from Canada and Mexico benefit from this preferential rate. To claim this preference, a valid certificate of origin or a self-certified origin statement meeting USMCA requirements is typically required by US Customs and Border Protection.
```Which HS Codes Are Related?
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FAQ
What are the import duty rates for HS code 721320, "Other, of free-cutting steel"?
The duty rates for HS code 721320, "Other, of free-cutting steel," vary by importing country. For example, under the US Harmonized Tariff Schedule (HTS), the Most Favored Nation (MFN) duty rate is 0.00%. In the European Union, under the TARIC system, the rate is also 0.00%. The UK Trade Tariff lists a duty rate of Free for this classification. It is crucial to consult the specific tariff schedule of the destination country for the most accurate and up-to-date duty rates, as preferential rates under Free Trade Agreements (FTAs) may also apply.
How is 'free-cutting steel' defined for HS code 721320?
Free-cutting steel, as relevant to HS code 721320, refers to steel with specific alloying elements added to improve its machinability. These elements typically include sulfur, lead, selenium, tellurium, or bismuth, which cause the steel to form small, easily detachable chips during machining. The World Customs Organization (WCO) Harmonized System Explanatory Notes provide guidance on the chemical composition and characteristics that define free-cutting steels. Importers should ensure their product specifications clearly demonstrate compliance with these criteria to support the classification.
What documentation is typically required for importing goods classified under HS 721320?
When importing goods under HS code 721320, standard import documentation is generally required. This includes a commercial invoice, packing list, and bill of lading or air waybill. Crucially, importers must provide a certificate of analysis (COA) or technical specification sheet that clearly details the chemical composition of the steel, proving it meets the criteria for 'free-cutting steel.' This documentation is essential for customs authorities to verify the correct HS classification and ensure compliance with any specific national regulations regarding steel products.
How are duties calculated for HS 721320, and can you provide an example?
The calculation of duties for HS code 721320 depends on the specific duty rate applied by the importing country. If the duty is an ad valorem rate (a percentage of the value), the calculation is straightforward. For instance, if a country applies a 5.5% ad valorem duty and you import 10,000 kg of free-cutting steel wire rod valued at $1.50 per kg (total value $15,000), the duty would be calculated as: 5.5% of $15,000 = $825. If specific duties (e.g., per unit of weight) or compound duties apply, the calculation will be adjusted accordingly. Always refer to the official tariff schedule for the precise duty calculation method.
Which common trade agreements might offer preferential duty rates for HS code 721320?
Preferential duty rates for HS code 721320 can be accessed through various Free Trade Agreements (FTAs). For example, goods originating from countries that are parties to the United States-Mexico-Canada Agreement (USMCA) may benefit from reduced or eliminated duties on steel products, including free-cutting steel, provided they meet the rules of origin. Similarly, importers dealing with goods from the European Union or the United Kingdom may find preferential rates under agreements like the EU-UK Trade and Cooperation Agreement. To claim preferential treatment, importers must possess a valid Certificate of Origin and ensure the goods meet all stipulated origin criteria.