HS 760120 Aluminium alloys

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What products does HS 760120 cover?

This subheading covers unwrought aluminium alloys, which are defined as primary aluminium to which specific alloying elements have been added to improve its mechanical or physical properties. 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, these alloys are typically in the form of ingots, billets, or slabs, and are not further worked. The key characteristic is the presence of alloying elements exceeding specified limits, differentiating them from pure unwrought aluminium classified under 760110.

What falls outside HS 760120?

The following products are excluded from HS 760120: pure unwrought aluminium, which is classified under HS 760110, and aluminium waste and scrap, classified under HS 760200. Also excluded are semi-finished or finished aluminium products, such as bars, rods, profiles, plates, sheets, foil, tubes, pipes, and castings, which are classified in subsequent headings within Chapter 76. For instance, aluminium bars and rods, even if made from an alloy, would be classified under HS 760429 if they are not unwrought.

What are common classification mistakes for HS 760120?

A common error is misinterpreting the definition of an "alloy" for customs purposes. Importers may incorrectly classify pure unwrought aluminium with minor trace elements as an alloy, or conversely, classify a semi-finished product made from an aluminium alloy under this subheading. According to General Rule of Interpretation (GRI) 1, classification is determined by the terms of the headings and any relative section or chapter notes. It is crucial to verify the exact composition of the unwrought material against the specific definitions of alloys provided in the relevant tariff schedule.

How should importers classify products under HS 760120?

The correct procedure for classifying unwrought aluminium alloys involves first confirming that the material is indeed unwrought and not a finished or semi-finished product. Next, the importer must verify the exact chemical composition of the material to ensure it meets the definition of an alloy as per the relevant customs tariff schedule, often referencing the WCO Explanatory Notes or specific national definitions. If it is an unwrought alloy, HS 760120 is the appropriate classification. Customs brokers should meticulously review supplier documentation, including certificates of analysis, to support the classification.

How is the duty calculated for products under HS 760120?

A shipment of 10,000 kg of unwrought aluminium alloy (e.g., AA6061) declared at a customs value of $25,000 USD would attract a US duty of $1,750. This is calculated using the Most Favored Nation (MFN) duty rate of 3.5% ad valorem, applied to the declared customs value: 3.5% × $25,000 USD = $875. However, if the alloy is specifically listed with a per-kilogram duty, for example, $0.175/kg, the duty would be $0.175/kg × 10,000 kg = $1,750. This example uses a hypothetical per-kilogram rate to illustrate a potential calculation, as found in some tariff schedules, referencing the USITC Harmonized Tariff Schedule.

Which trade agreements reduce duties for HS 760120?

Several free trade agreements may reduce the applicable duty rate for HS 760120, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty rate of Free for originating goods from Canada and Mexico. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) may also offer preferential rates for originating goods from member countries like Vietnam. To claim these preferences, a self-certified origin statement for USMCA or a specific origin declaration for CPTPP is typically required, depending on the specific agreement and jurisdiction.

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