HS 722020 Not further worked than cold-rolled (cold-reduced)

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What products does HS 722020 cover?

This subheading covers flat-rolled products of stainless 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 includes materials that have undergone a cold-rolling process, which refines their 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 achieved through cold working, resulting in improved mechanical properties and a smoother surface compared to hot-rolled equivalents.

What falls outside HS 722020?

The following products are excluded from HS 722020: flat-rolled products of stainless steel that are wider than 600 mm, which fall under HS 722010. Additionally, products that have undergone further working beyond cold-rolling, such as plating, coating, or surface treatments like polishing or grinding beyond what is inherent to the cold-rolling process, are classified elsewhere. For instance, stainless steel coils that are painted or clad would not be classified here, nor would those that have been hot-rolled.

What are common classification mistakes for HS 722020?

A common error is misinterpreting "not further worked than cold-rolled." This means that any significant post-cold-rolling treatments, such as galvanizing, painting, or significant mechanical polishing beyond what is achieved by the cold-rolling mill, would necessitate classification under a different subheading. Importers may also mistakenly classify wider products (over 600 mm) under this code, overlooking the width specification in Heading 7220, which is crucial for correct classification under General Rule of Interpretation 1.

How should importers classify products under HS 722020?

The correct procedure for classifying products under HS 722020 involves verifying the material composition (stainless steel), the form (flat-rolled), the width (less than 600 mm), and crucially, the processing. Importers and customs brokers must confirm that the product has only been cold-rolled and has not undergone any subsequent significant working. Reviewing technical specifications and mill certificates is essential to ensure compliance with the "not further worked than cold-rolled" criterion.

How is the duty calculated for products under HS 722020?

A coil of cold-rolled stainless steel strip, measuring 0.5 mm thick and 150 mm wide, weighing 1,000 kg and declared at a customs value of $4,000 USD, would attract a US duty of $120.00. This is calculated using the Most Favored Nation (MFN) duty rate of 12% ad valorem, applied to the declared customs value ($4,000 USD × 0.12 = $480.00), or a specific duty if applicable. For this example, let's assume a specific duty of $0.12 per kg applies, resulting in $120.00 ($0.12 × 1,000 kg). This is calculated using the specific duty rate published in the USITC Harmonized Tariff Schedule.

Which trade agreements reduce duties for HS 722020?

Several free trade agreements may reduce the applicable duty rate for HS 722020, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty-free entry for qualifying originating goods from Canada and Mexico. The Generalized System of Preferences (GSP) may also offer reduced or duty-free entry for qualifying goods from certain developing countries. To claim preference under USMCA, a self-certified origin statement is typically required, while GSP requires a GSP Form A.

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