About HS Code 7602
HS Code 7602 specifically categorizes 'Aluminium; waste and scrap,' forming a crucial component of the global circular economy for this versatile metal. This heading encompasses a broad range of discarded aluminium materials, including manufacturing offcuts, end-of-life products, and processing residues, all intended for reprocessing into new aluminium products. The scope includes all forms of aluminium waste and scrap, regardless of alloy type or initial product form, provided they are no longer usable in their original state and are destined for remelting. Key sub-categories often include shredded aluminium cans (UBCs - Used Beverage Cans), obsolete vehicle parts, discarded window frames, industrial turnings, borings, filings, dross, skimmings, and rejected semi-finished products like extrusions or sheets. Accurate classification under 7602 is paramount for trade compliance, as it impacts customs duties, import/export regulations, and environmental controls. Many countries impose strict regulations on the trade of waste materials, including import bans or special permits, often driven by environmental protection and domestic recycling capacity. Historically, the trade of aluminium scrap has been significant, supporting secondary aluminium production which is far more energy-efficient than primary production. This heading directly relates to Chapter 76, 'Aluminium and articles thereof,' by providing a foundational raw material for the chapter's downstream products, ensuring sustainable supply chains and reducing reliance on bauxite mining and primary smelting. Understanding its boundaries helps prevent misclassification with primary aluminium ingots (7601) or semi-finished products that are merely defective but not yet scrap.
Products Under This Code
Shredded aluminium cans, used aluminium window frames, automotive aluminium scrap, aluminium swarf, rejected aluminium extrusions, aluminium turnings, aluminium borings, aluminium filings, aluminium dross, aluminium skimmings, used aluminium engine blocks, spent aluminium foil, post-consumer aluminium packaging, industrial aluminium offcuts, obsolete aluminium cables, aluminium beverage can scrap, aluminium alloy wheel scrap, aluminium heat sink scrap, used aluminium ladders, aluminium building demolition scrap, used aluminium siding, aluminium machining waste, aluminium wire scrap, aluminium sheet offcuts, cast aluminium scrap
Real World Examples
A large steel mill in India regularly imports several containers of shredded aluminium cans (UBCs) from recycling facilities in the United States via the Suez Canal route to supplement their secondary aluminium production. Similarly, a Turkish aluminium smelter frequently purchases mixed aluminium scrap, including obsolete window frames and automotive components, from European suppliers, transported by road and sea across the Mediterranean. Furthermore, a major Chinese metal recycler imports high-purity aluminium engine block scrap from Japan and South Korea, primarily for remelting and producing specific aluminium alloys for their domestic automotive industry, utilizing established East Asian shipping lanes.
Common Misclassification
A common misclassification error for products under HS 7602 involves confusing actual waste and scrap with primary aluminium forms or semi-finished products. Traders might mistakenly classify defective but still usable aluminium ingots (7601) or slightly damaged bars/rods (7604) as scrap, leading to incorrect duties and potential penalties. Another error is classifying aluminium dross or skimmings, which are clearly waste, under more processed forms if they contain some recoverable metal. Additionally, complex aluminium articles that are merely old or worn but still functionally intact might be erroneously labeled as scrap, instead of their original classification (e.g., used machinery parts). This distinction hinges on whether the item's primary value is as a raw material for remelting or if it retains intrinsic value as a component.
Subheadings 1
Industry
This code belongs to the Metals & Metal Products industry.
Trade Overview
Major importers of aluminium waste and scrap include China, India, Turkey, and Germany, driven by their robust secondary aluminium production industries. The United States, Canada, and various European Union countries are significant exporters. Trade policies, such as China's strict 'National Sword' policy and subsequent import bans on certain types of scrap, have significantly reshaped global trade flows, diverting scrap to other processing hubs like Southeast Asia and India. Tariff rates vary, with many countries encouraging scrap imports through lower or zero duties to support recycling and reduce reliance on primary aluminium. Environmental regulations and export/import permits are crucial considerations for traders in this sector.
Frequently Asked Questions
What is HS code 7602?
HS code 7602 is a 4-digit heading in the Harmonized System that covers: Aluminium; waste and scrap. HS Code 7602 specifically categorizes 'Aluminium; waste and scrap,' forming a crucial component of the global circular economy for this versatile metal. This heading encompasses a broad range of discarded aluminium materials, including manufacturing offcuts, end-of-life products, and processing residues, all intended for reprocessing into new aluminium products. The scope includes all forms of aluminium waste and scrap, regardless of alloy type or initial product form, provided they are no longer usable in their original state and are destined for remelting. Key sub-categories often include shredded aluminium cans (UBCs - Used Beverage Cans), obsolete vehicle parts, discarded window frames, industrial turnings, borings, filings, dross, skimmings, and rejected semi-finished products like extrusions or sheets. Accurate classification under 7602 is paramount for trade compliance, as it impacts customs duties, import/export regulations, and environmental controls. Many countries impose strict regulations on the trade of waste materials, including import bans or special permits, often driven by environmental protection and domestic recycling capacity. Historically, the trade of aluminium scrap has been significant, supporting secondary aluminium production which is far more energy-efficient than primary production. This heading directly relates to Chapter 76, 'Aluminium and articles thereof,' by providing a foundational raw material for the chapter's downstream products, ensuring sustainable supply chains and reducing reliance on bauxite mining and primary smelting. Understanding its boundaries helps prevent misclassification with primary aluminium ingots (7601) or semi-finished products that are merely defective but not yet scrap.
What products fall under HS code 7602?
Shredded aluminium cans, used aluminium window frames, automotive aluminium scrap, aluminium swarf, rejected aluminium extrusions, aluminium turnings, aluminium borings, aluminium filings, aluminium dross, aluminium skimmings, used aluminium engine blocks, spent aluminium foil, post-consumer aluminium packaging, industrial aluminium offcuts, obsolete aluminium cables, aluminium beverage can scrap, aluminium alloy wheel scrap, aluminium heat sink scrap, used aluminium ladders, aluminium building demolition scrap, used aluminium siding, aluminium machining waste, aluminium wire scrap, aluminium sheet offcuts, cast aluminium scrap
What are common misclassifications for HS code 7602?
A common misclassification error for products under HS 7602 involves confusing actual waste and scrap with primary aluminium forms or semi-finished products. Traders might mistakenly classify defective but still usable aluminium ingots (7601) or slightly damaged bars/rods (7604) as scrap, leading to incorrect duties and potential penalties. Another error is classifying aluminium dross or skimmings, which are clearly waste, under more processed forms if they contain some recoverable metal. Additionally, complex aluminium articles that are merely old or worn but still functionally intact might be erroneously labeled as scrap, instead of their original classification (e.g., used machinery parts). This distinction hinges on whether the item's primary value is as a raw material for remelting or if it retains intrinsic value as a component.
Which countries trade the most under HS code 7602?
Major importers of aluminium waste and scrap include China, India, Turkey, and Germany, driven by their robust secondary aluminium production industries. The United States, Canada, and various European Union countries are significant exporters. Trade policies, such as China's strict 'National Sword' policy and subsequent import bans on certain types of scrap, have significantly reshaped global trade flows, diverting scrap to other processing hubs like Southeast Asia and India. Tariff rates vary, with many countries encouraging scrap imports through lower or zero duties to support recycling and reduce reliance on primary aluminium. Environmental regulations and export/import permits are crucial considerations for traders in this sector.
How is HS code 7602 structured?
HS code 7602 is a 4-digit heading under Chapter 76 of the Harmonized System. The first 2 digits (76) identify the chapter, and digits 3-4 (02) specify the heading. This code contains multiple 6-digit subheadings for precise product classification.