HSN code 7204 pertains to 'Ferrous Waste and Scrap; Remelting Scrap Ingots of Iron or Steel'. This heading is crucial for India's steel industry, covering all types of waste and scrap iron and steel suitable for remelting. It forms a significant input material for secondary steel producers and foundries, directly impacting the cost and availability of recycled steel products. Procurement teams, accountants, and Customs House Agents (CHAs) dealing with the import or domestic trade of these materials must correctly classify them under 7204 to ensure accurate duty and tax assessments. Understanding this HSN is vital for managing raw material costs and maintaining compliance in the ferrous recycling and manufacturing sectors.
What HSN 7204 Covers
HSN 7204 specifically encompasses "Ferrous Waste and Scrap; Remelting Scrap Ingots of Iron or Steel". This includes all forms of waste and scrap iron and steel, whether bundled, pressed, shredded, or in the form of turnings and borings. It covers the materials generated from the manufacture of iron and steel products (new scrap) as well as discarded items (old scrap) that are intended for remelting in furnaces or foundries. This category is essential for the secondary steel sector. Remelting scrap ingots, which are intermediate products made from scrap and intended for further processing into steel, are also classified here. Exclusions: Materials that have undergone significant processing beyond simple crushing or bundling, such as finished or semi-finished steel products, even if made from recycled material, are generally not covered. Granulated slag and spongy ferrous iron, although related to ferrous materials, are classified under HSN 7203. Powders and granules of iron or steel meant for other applications (e.g., powder metallurgy) might fall under HSN 7205. Contaminated scrap where the ferrous content is minimal might be classified differently. The key criterion for HSN 7204 is its nature as waste/scrap suitable for remelting ferrous metal recovery.Common Materials & Grades under HSN 7204
- Shredded Steel Scrap: Mechanically processed scrap, often from vehicles, ready for melting.
- Bundled Steel Scrap: Compressed scrap, typically industrial offcuts or old structures, for easier handling.
- Bushelings and Thread waste: Small fragments and turnings from metalworking processes.
- Remelting Ingots: Ingots made from scrap, intended for further steel production.
- Cast Iron Scrap: Waste and scrap from iron castings, suitable for remelting.
- Old Iron and Steel Scrap: Discarded iron and steel items like structures, rails, or ships, usually cut for processing.
- New Production Scrap (Overage/Plate Scrap): Offcuts and remnants from the manufacturing of steel products, if classified as waste.
Trade Names & Synonyms
- Ferrous Scrap
- Steel Scrap
- Iron Scrap
- Melting Scrap
- Revert Scrap
- HMS (Heavy Melting Steel)
- Shredded Scrap
- Bundled Scrap
Typical Industrial Uses
- Secondary steel production
- Foundry feedstock
- Remelting for new steel billets/ingots
- Manufacturing of cast iron products
- Production of rebar and structural steel from recycled sources
- Metal recycling and reprocessing
- Production of pipes and tubes from recycled steel
GST Rate (Indicative)
Ferrous waste and scrap under HSN 7204 typically fall within the 18% GST slab. However, it is crucial to verify the exact rate applicable to specific transactions on the official CBIC portal, as GST rates can be subject to change or specific notifications.
Related HSN Codes
- HSN 7201: Pigs and cast iron
- HSN 7202: Ferro alloys
- HSN 7203: Granulated slag, spongy ferrous iron and steel, not further prepared
- HSN 7228: Other bars and rods of alloy steel; angles, shapes and sections, of alloy steel
- HSN 7205: Granules and powders, of pig iron, spongy ferrous iron and steel
Related on MetaleMart
- Parent: HSN 72 — Iron and steel
- HSN 7201 — PIG IRON AND SPIEGELEISEN IN PIGS, BLOCKS OR OTHER PRIMARY F
- HSN 7202 — FERRO-ALLOYS
- HSN 7203 — FERROUS PRODUCTS OBTAINED BY DIRECT REDUCTION OF IRON ORE AN
- HSN 7205 — GRANULES AND POWDERS, OF PIG IRON, SPIEGELEISEN, IRON OR STE
- Browse all HSN codes
- Metal Grades Library
- Shop industrial metals
Frequently Asked Questions about HSN 7204
How is scrap classified under HSN 7204? What about mixed scrap?
For HSN 7204, scrap is generally classified based on its form and composition. Clean, single-stream scrap like shredded steel or bundled car parts falls under this code. However, mixed scrap with significant non-ferrous contamination or scrap processed into specific forms (e.g., new production scrap from pipes being cut) might be classified under different HSNs if they meet those specific criteria. Always verify with customs authorities for definitive classification.
Does HSN 7204 include all types of iron and steel scrap?
Yes, HSN 7204 covers various forms of ferrous waste and scrap. This includes home scrap, prompt industrial scrap, and old scrap in forms like bundled, pressed, or shredded material. Remelting scrap ingots of iron or steel also fall under this heading. The key is that it's waste or scrap intended for remelting or reprocessing in furnaces.
What is the typical GST rate for HSN 7204 in India?
The typical GST rate band for HSN 7204 (Ferrous waste and scrap) is generally 18%. However, specific rates can vary, and it is essential to verify the current applicable GST rate on the official CBIC portal or consult a tax professional to ensure compliance, as rates can be subject to change or specific conditions.
Does MetaleMart sell materials under HSN 7204?
While MetaleMart's catalog focuses on prime industrial metals in various shapes (bars, sheets, pipes, etc.), HSN 7204 is specifically for waste and scrap. Buyers looking for raw materials for remelting or recycling would seek materials classified under 7204 from specialized scrap dealers. MetaleMart facilitates the trade of new, high-quality metals used in manufacturing, not scrap.