HS 722611 Of silicon-electrical steel

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What products does HS 722611 cover?

This subheading covers flat-rolled products of iron or non-alloy steel, of a width not exceeding 600 mm, made of silicon-electrical steel. According to the World Customs Organization's Harmonized System Nomenclature, silicon-electrical steel is characterized by its high silicon content (typically 0.5% to 6.5% by weight) which imparts specific magnetic properties, such as high permeability and low core loss, essential for electrical applications. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database further define these as cold-rolled or hot-rolled products specifically designed for use in transformers, motors, and generators.

What falls outside HS 722611?

The following products are excluded from HS 722611: flat-rolled products of iron or non-alloy steel that do not possess the specific magnetic properties of silicon-electrical steel, even if they have a silicon content. This includes general-purpose electrical sheets or plates not optimized for magnetic performance. Also excluded are products of alloy steel (e.g., stainless steel or tool steel) or other metals, as well as flat-rolled products exceeding 600 mm in width, which would be classified under other headings within Chapter 72 or Chapter 73. For instance, electrical steel in coils wider than 600 mm falls under HS 722619.

What are common classification mistakes for HS 722611?

A common error is misclassifying general-purpose steel sheets with a minor silicon content as silicon-electrical steel. General Interpretative Rule (GIR) 1 dictates that classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. For HS 722611, the critical factor is the material's intended use and inherent magnetic properties, not merely the presence of silicon. Importers may also mistakenly classify products based on their form (e.g., cut to length) without considering the underlying material's specific characteristics and the heading's explicit requirements for silicon-electrical steel.

How should importers classify products under HS 722611?

The correct procedure for classifying products under HS 722611 involves a thorough examination of the material's technical specifications and intended application. Importers and customs brokers must consult product literature, mill certificates, and technical data sheets to confirm the silicon content (typically above 0.5% by weight) and the specific magnetic properties (e.g., core loss, permeability) that qualify it as silicon-electrical steel. Cross-referencing these details with the official definitions provided by the WCO, USITC HTS, or EU TARIC is crucial to ensure accurate classification and avoid potential penalties.

How is the duty calculated for products under HS 722611?

A shipment of 10,000 kg of cold-rolled silicon-electrical steel, declared at a customs value of $25,000 USD, would attract a US duty of $1,250. This is calculated using the Most Favored Nation (MFN) duty rate of 5.0% ad valorem, applied to the declared customs value ($25,000 USD × 0.05 = $1,250). This rate is published in the USITC Harmonized Tariff Schedule (HTS) under subheading 7226.11.00.00. Note that some specific types of electrical steel may have different rates or be subject to additional duties.

Which trade agreements reduce duties for HS 722611?

Several free trade agreements may reduce the applicable duty rate for HS 722611, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, originating silicon-electrical steel from Canada or Mexico can enter the United States duty-free. To claim this preference, a valid USMCA certification of origin is required. Additionally, the Generalized System of Preferences (GSP) may offer reduced or duty-free entry for originating goods from certain developing countries, typically requiring a GSP Form A. The specific preferential rate and documentation requirements must be verified for each origin country and destination jurisdiction.

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