HS Code for Stainless steel scrap

HS code 720421 is designated for ferrous waste and scrap specifically derived from stainless steel. This classification is vital for the recycling industry and international trade statistics. Under the Harmonized System, waste and scrap refers to metal goods which are unfit for use as such because of breakage, cutting-up, wear, or other reasons, and are generally fit only for the recovery of metal or for use in the manufacture of chemicals. The subheading 21 specifically isolates stainless steel from other types of alloy steel or carbon steel scrap. This distinction is necessary because stainless steel scrap has a significantly higher value due to its nickel and chromium content. The classification applies regardless of the shape or form of the scrap, provided it meets the metallurgical definition of stainless steel (at least 10.5% chromium). This includes industrial offcuts, shavings, and discarded finished goods that have been crushed or bundled for recycling. It is important to note that primary ingots or other unwrought forms produced by melting down scrap are not classified here; they are classified under heading 7218. The scrap must be in a state that clearly indicates it is intended for remelting or chemical processing rather than repair or reuse in its current form. Proper documentation of the alloy grade (e.g., 304 or 316) is often required by customs to verify the classification under the stainless steel subheading.

Products Included

• Stainless steel industrial offcuts and clippings
• Discarded stainless steel machinery parts for recycling
• Used stainless steel piping and tubing scrap
• Stainless steel turnings, shavings, and chips
• Crushed or bundled stainless steel consumer goods

Common Misclassification

Stainless steel scrap is often misclassified under 720429, which is the code for other alloy steel scrap. This occurs when the chromium content is not verified. It is also confused with 720449, which covers general ferrous scrap. If the scrap contains less than 10.5% chromium, it cannot be classified under 720421. Furthermore, if the material is not truly scrap but rather second-quality usable goods, it should be classified under the specific heading for that product (e.g., 7219 for sheets).

FAQ

What is the HS code for Stainless steel scrap?

The HS code for ferrous waste and scrap of stainless steel is 720421.

Does this code include stainless steel turnings and shavings?

Yes, turnings, shavings, chips, milling waste, and saw dust of stainless steel are all included under the 720421 classification as part of the waste and scrap category.