HS Code 72.04 – Ferrous waste and scrap; remelting scrap ingots of iron or steel

HS code 7204 is a 4-digit heading in the Harmonized System that covers: Ferrous waste and scrap; remelting scrap ingots of iron or steel. Heading 7204 covers ferrous waste and scrap, along with remelting scrap ingots of iron or steel. This classification is vital for the circular economy, as these materials serve as a primary raw material for steel production, especially in Electric Arc Furnaces (EAFs). The scope includes a vast array of materials, from shredded vehicle bodies and industrial cuttings to cast iron borings and obsolete machinery. The defining characteristic is that these items are no longer fit for their original purpose and are destined for remelting to produce new iron or steel. Remelting scrap ingots are also included, being ingots cast from scrap specifically for remelting purposes. Proper classification under 7204 is critical for trade compliance due to the significant volume of global trade in scrap and the stringent environmental regulations governing its movement. Misclassification can lead to severe penalties, customs rejections, and environmental liabilities. This heading underscores the importance of recycling in the modern steel industry, reducing the demand for virgin iron ore and lowering carbon emissions. It stands apart from other Chapter 72 headings by focusing on recycled materials rather than primary forms or finished products, highlighting its unique role in sustainable manufacturing.

Shredded steel scrap, Bundled iron scrap, Cast iron borings, Steel turnings, Sheet metal cuttings, Used vehicle body scrap, Railway track scrap, Remelting ingots of carbon steel, Stainless steel turnings, Galvanized steel scrap, Pipe scrap, Rebar offcuts, Foundry returns, Obsolete machinery scrap, Punchings, Plate and structural scrap, Heavy melting steel scrap (HMS), Light melting steel scrap (LMS), Busheling scrap, Mill scale, Detinned steel scrap, Tin plate scrap, Wrought iron scrap, Forging scrap

Common misclassifications for 7204 include confusing genuine scrap with semi-finished products (7207) or even finished products that are merely old or damaged. For example, a piece of steel that could still be used for its original purpose with minor repairs, or a billet that is merely off-specification, should not be classified as scrap. The key is that scrap is no longer usable for its original purpose and is intended solely for remelting. Another error is confusing ferrous scrap with non-ferrous scrap (e.g., copper scrap under Chapter 74), which requires careful material identification. Also, some 'waste' might be classified under other chapters if it's not primarily for remelting (e.g., certain sludges).

In 2025, the top exporters of HS code 7204 in UN Comtrade data were the United States ($5.4B, 14% of world exports), Germany ($3.9B) and the United Kingdom ($2.9B). World exports came to about $38.9B, adding countries' reported figures and partner-based estimates for those that did not report (UN Comtrade data). Countries that did not report 2025 data are estimated from partner records, which can understate them.

In 2025, the top importers of HS code 7204 in UN Comtrade data were Türkiye ($6.9B, 18% of world imports), India ($5.0B) and Italy ($2.5B). World imports came to about $39.6B, adding countries' reported figures and partner-based estimates for those that did not report (UN Comtrade data). Countries that did not report 2025 data are estimated from partner records, which can understate them.

HS code 7204 is a 4-digit heading under Chapter 72 of the Harmonized System. The first 2 digits (72) identify the chapter, and digits 3-4 (04) specify the heading. This code contains multiple 6-digit subheadings for precise product classification.