Scrap HSN code is a six-digit classification under the Harmonized System (HS) used to identify recycled materials for customs duties and international trade. These codes ensure consistent tariff assessment across borders.
The Harmonized System categorizes goods for customs purposes. For scrap, these codes specify material type, form, and composition. For example, steel scrap falls under HSN code 7204, while aluminum scrap uses 7404. Each code determines duty rates and trade regulations.
| Material | HSN Code | Common Forms |
|---|---|---|
| Steel | 7204 | Plates, sheets, rods |
| Aluminum | 7404 | Cans, extrusions, foil |
| Copper | 7406 | Wires, tubes, pipes |
| Plastics | 3915 | Bottles, containers, films |
These codes prevent misclassification, which can lead to incorrect duties or legal issues. For instance, mislabeling steel scrap as a lower-duty category costs governments millions annually. The World Customs Organization updates HS codes periodically to reflect new materials and trade patterns.
In 2023, a U.S. exporter shipped 50 tons of aluminum cans to Germany. Using HSN code 7404, they paid a 3% duty instead of the 6% rate applied to unprocessed aluminum (code 7404.10). This saved $15,000 in tariffs. Misclassifying the shipment as unprocessed aluminum would have increased costs and delayed customs clearance.
Scrap HSN codes simplify global trade by standardizing classifications. Whether shipping steel, aluminum, or plastics, these codes ensure fair duties and smooth transactions. Accurate classification saves money and prevents legal issues, making them essential for international commerce.