HS 721430 Other, of free-cutting steel
Quick Answer: Other bars and rods of free-cutting steel, imported under HS 721430, enter the UK and EU duty-free, while the US imposes a 20% Most Favored Nation (MFN) duty rate. This classification specifically applies to bars and rods of steel that have been alloyed with elements like sulfur, selenium, or tellurium to improve their machinability, making them easier to cut and shape. These free-cutting steels are commonly used in the production of screws, bolts, and other precision components manufactured through automated machining processes. Importers should be aware of the significant duty differential between the US and other major markets, as highlighted by CustomTariffs data, which can impact sourcing and pricing strategies.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7214300000 | 0.00 % | — | — |
| 7214300090 | 0.00 % | — | — |
| 7214300010 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 7214300010 | 0.00 % | — | — |
| 7214300000 | 0.00 % | — | — |
| 7214300090 | 0.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 72143000 | Free | — | — |
| 7214300080 | — | — | ["kg"] |
| 7214300010 | — | — | ["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 721430 cover?
This subheading covers other bars and rods of free-cutting steel, not further worked than cold-formed or cold-finished. According to the World Customs Organization (WCO) Harmonized System Nomenclature, free-cutting steel is characterized by its high sulfur content, which facilitates machining. The US International Trade Commission (USITC) Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that this category includes bars and rods of this specific steel alloy that have undergone cold working processes such as cold drawing or cold rolling, enhancing their dimensional accuracy and surface finish for automated machining operations.
What falls outside HS 721430?
The following products are excluded from HS 721430: bars and rods of free-cutting steel that are hot-rolled, hot-extruded, or otherwise hot-finished; those that have undergone further working beyond cold-forming or cold-finishing, such as threading, grooving, or polishing; and bars and rods of other types of steel not classified as free-cutting steel. For instance, plain carbon steel bars (HS 721420) or alloy steel bars (HS 721499) that do not possess the specific characteristics of free-cutting steel would be classified under different subheadings.
What are common classification mistakes for HS 721430?
A common error is misidentifying the steel as "free-cutting steel" without verifying its chemical composition, particularly its sulfur content, which is a defining characteristic. Another mistake involves incorrectly applying 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. Importers may also err by classifying bars and rods that have undergone further working beyond cold-forming or cold-finishing, such as those with pre-cut threads, under this subheading instead of a more specific heading for finished articles.
How should importers classify products under HS 721430?
The correct procedure for classifying products under HS 721430 involves a multi-step process. First, confirm that the material is indeed "free-cutting steel" by reviewing the mill test certificate or product specifications, ensuring it meets the chemical composition requirements for free-cutting steel as defined by relevant standards. Second, verify that the bars or rods have been processed solely by cold-forming or cold-finishing, and not by hot working or further fabrication. Finally, consult the specific tariff schedule of the importing country, such as the USITC HTS or the UK Trade Tariff, to ensure the product's description aligns precisely with the wording of subheading 7214.30.
How is the duty calculated for products under HS 721430?
A shipment of 10,000 kilograms of 12mm diameter free-cutting steel bars, declared at a customs value of $15,000 USD, would attract a US duty of $1,500. This is calculated using the USITC Harmonized Tariff Schedule's Most Favored Nation (MFN) duty rate of 10% ad valorem (10% × $15,000 USD = $1,500 USD). It is crucial to note that specific duties may also apply, and the final duty calculation would consider the greater of the ad valorem or specific duty, if applicable, based on the product's precise description and origin.
Which trade agreements reduce duties for HS 721430?
Several free trade agreements may reduce the applicable duty rate for HS 721430, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty rate of Free for originating goods from Canada and Mexico. Additionally, the Generalized System of Preferences (GSP) may offer reduced or Free duty rates for eligible products from certain developing countries. To claim these preferences, importers typically require a self-certified origin statement for USMCA or a GSP Form A for GSP beneficiaries, depending on the specific agreement and the exporting country's regulations.
```Which HS Codes Are Related?
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FAQ
What are the typical import duty rates for HS code 721430, 'Other, of free-cutting steel'?
The import duty rates for HS code 721430 can vary significantly depending on the importing country and any applicable trade agreements. For example, under the US Harmonized Tariff Schedule (HTS), the Most Favored Nation (MFN) duty rate is often 0.00%. However, other countries may have different rates. For instance, the UK Trade Tariff lists a duty rate of 0.00% for most origins, but certain preferential agreements might offer different terms. Always consult the specific tariff schedule of the importing country for the most accurate and up-to-date duty rates.
How is 'free-cutting steel' defined for HS classification under code 721430?
Free-cutting steel, for the purposes of HS code 721430, refers to steel that has been alloyed with specific elements to improve its machinability. These elements typically include sulfur, lead, selenium, tellurium, or bismuth. The primary characteristic is that these additives form non-metallic inclusions or are present in a way that causes the steel to break into small chips during machining, rather than forming long, stringy curls. This makes it easier and faster to cut and shape the material. Classification under 721430 requires that the steel bars are 'other' than those specifically covered in prior subheadings (e.g., alloy steel or stainless steel) and meet the criteria of free-cutting steel.
What documentation is typically required when importing goods classified under HS 721430?
When importing goods under HS code 721430, standard documentation usually includes a commercial invoice detailing the quantity, description, value, and origin of the goods. A packing list is also essential. A certificate of origin may be required, especially if preferential duty rates are being claimed under a trade agreement. For steel products, particularly those with specific alloying elements, a mill test certificate or material certificate from the manufacturer is often necessary to verify the composition and confirm it meets the definition of free-cutting steel. Importers should also be prepared for potential requests for technical specifications or product data sheets from customs authorities.
How is the duty calculated for HS 721430 if a duty rate is applicable?
The duty calculation for HS code 721430 typically depends on whether the duty is ad valorem (a percentage of the value) or specific (a fixed amount per unit of quantity). For example, if a country imposes a 5% ad valorem duty and you import free-cutting steel bars valued at $10,000, the duty would be calculated as: 5% of $10,000 = $500. If the duty were specific, for instance, $100 per metric ton, and you imported 10 metric tons, the duty would be 10 metric tons * $100/metric ton = $1,000. Always verify the duty basis (ad valorem, specific, or a combination) from the importing country's tariff schedule.
Do common trade agreements, like USMCA or EU trade deals, affect the duty rates for HS 721430?
Yes, common trade agreements can significantly affect the duty rates for HS code 721430. For instance, under the United States-Mexico-Canada Agreement (USMCA), qualifying steel products may receive preferential duty rates, often 0.00%, provided they meet the rules of origin. Similarly, the European Union has numerous Free Trade Agreements (FTAs) with various countries, which can reduce or eliminate duties on goods like free-cutting steel if the origin requirements are satisfied. Importers must ensure that the goods meet the specific rules of origin stipulated in the relevant trade agreement and have the necessary documentation (e.g., Certificate of Origin) to claim preferential treatment.