HS 721931 Not further worked than cold-rolled (cold-reduced)

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What products does HS 721931 cover?

This subheading covers stainless steel flat-rolled products, not further worked than cold-rolled (cold-reduced), with a width of 600 mm or more. According to the World Customs Organization's Harmonized System Explanatory Notes and definitions found in official tariff schedules like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database, this classification applies to steel that has undergone a cold-rolling process after initial hot rolling, resulting in a smoother surface finish and tighter dimensional tolerances. The width criterion of 600 mm or more is a key defining factor for this specific subheading.

What falls outside HS 721931?

The following products are excluded from HS 721931: stainless steel flat-rolled products that are hot-rolled, those with a width less than 600 mm, and products that have undergone further working beyond cold-rolling, such as coating, plating, or fabrication into specific shapes. For instance, stainless steel coils that have been painted or clad with other metals would be classified under different headings. Similarly, stainless steel sheets cut to specific dimensions for use in particular applications, if further processed, would not fall under this subheading.

What are common classification mistakes for HS 721931?

A common error is misinterpreting the "not further worked than cold-rolled" criterion, leading to the incorrect classification of products that have undergone additional treatments. For example, stainless steel that has been pickled, passivated, or polished after cold-rolling might still be considered "not further worked" if these processes are standard finishing steps. However, if the steel is coated, clad, or subjected to significant mechanical shaping, it would likely fall under a different HS code, potentially violating General Rule of Interpretation (GRI) 1 or 3.

How should importers classify products under HS 721931?

The correct procedure for classifying products under HS 721931 involves a systematic review of the product's characteristics against the HS nomenclature. Importers and customs brokers must first determine if the product is stainless steel flat-rolled, has a width of 600 mm or more, and has only been cold-rolled. Consulting the official Explanatory Notes and the specific tariff schedule of the importing country, such as the UK Trade Tariff, is crucial. Verification of the steel's grade and its physical state post-manufacturing is essential for accurate classification.

How is the duty calculated for products under HS 721931?

A 10-tonne shipment of cold-rolled stainless steel sheet (304 grade) with a width exceeding 600 mm, declared at a customs value of $35,000 USD, would attract a US Most Favored Nation (MFN) duty of $1,750. This is calculated using the MFN duty rate of 5.0% ad valorem, applied to the declared customs value: 5.0% × $35,000 = $1,750. This calculation is based on the rates published in the USITC Harmonized Tariff Schedule, specifically for subheading 721931.00.00.

Which trade agreements reduce duties for HS 721931?

Several free trade agreements may reduce the applicable duty rate for HS 721931, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, originating goods from Canada and Mexico can benefit from a preferential rate of Free. To claim this preference, a self-certified origin statement on the commercial invoice or a separate declaration is typically required. Additionally, agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) may offer reduced duties for originating goods from member countries such as Australia and Japan.

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