GOVERNMENT OF PAKISTANT

MODEL COUSTOMS COLLECTORATE OF APPRAISEMENT

CUSTOM HOUSE, KARACHI.

No.CC-22/2008(A)                                                                           Dated: 25-11-2009 

PUBLIC NOTICE NO. 11/2009 

SUB:  Classification of the product namely metal lurgical waste from slag heaps.

The Classification of the product namely Metallurgical Waste from Slag Heaps came-up for discussion before the Classification Committee on 28.11.2009.

2.         The goods were got tested in Custom House Laboratory who vide Test Report C.No. CE/R/45/08 dated 07.11.2008 reported that:

"The sample on test is found to consist mainly of oxides of Iron, Calcium, Aluminum, zinc, magnesium and carbonaceous material etc. The metallic iron content is very small. It is in the form of irregular rough heavy angular lumpy pieces, with Pit/Pockets of grey, blackish brown texture which mostly appears in slags.”

3.         Thereafter goods were referred to Pakistan Steel for their opinion vide. Test Report No.QCD/2008/1237 dated 25.11.2008 reported that:

a)    Exact description in view of physical appearance of the goods.

The consignment / lot consists of big pieces of Molten Metal, appears to be Iron & Steel remains, generated during Iron and Steel making process, its emergency castings, ladle & tundish remains / skulls and metal extracted from slag.

b)   Chemical Composition.

Fe=92.30%, C=0.34% and Mn=0.18%.

c)     The product has been obtained from which specific manufacturing process based on physical and chemical properties.

Based upon the physical and chemical properties of the subject material, it can be termed as remains of steel making process."

4.         The following possible PCT headings were considered in the Classification

Committee Meeting:

i)             7204

ii)            2619

5.         The importer's representative explained that the product is classifiable under PCT heading 7204 on the grounds that impugned material have 92% iron contents and have no other use except recovery of metal though re-melting process. They stand that PCT heading 2619 covers slag which have very nominal irons percentage and is not used for recovery of metal through re-melting.

6.         Whereas, the Assessing Group (Appraisement) on the other hand is of the opinion that the impugned products is in fact slag classifiable under PCT heading 2916.0000.

7.         The definition of re-meltable scrap of PCT heading 7204 given in Note 8(a) to Section XV of H.S. Explanatory Notes is reproduced as under:

"Metals waste and scrap from the manufacture or mechanical working of metals and metals goods definitely not useable as such because of breakages cutting up wear or other reasons"

8.         Since the imported material does not qualify the above mentioned definition of Metal Waste and Scrap of PCT heading 7204 therefore classification thereof in the aforesaid PCT heading is not justifiable. The committee also examined the definition of slag under PCT heading 2619 given in the Explanatory Note at Page-V- 2619-1 to the Harmonized Commodity Description and Coding System. The relevant part of the definition of slag provided under heading 26.19 thereof is given as under:-

Slaa (26.191

"The Slag covered by this heading are silicates of aluminum, calcium or iron obtained during the smelting of iron ore (blast furnace slag), the refining of pig iron or the manufacture of steel (Converter Slag).The heading includes these slag whether or not they contain sufficient iron to permit the recovery of the metal. This heading also includes dust, from blast furnaces and other kinds of waste resulting from the manufacture of the iron and steel, but not scrap metal produces during cutting, shaping or other metal working process, which falls in heading 72.04"

9.         From the above discussion, the PCT Committee observed that imported material is in fact waste/ slag procured during manufacturing of Iron & Steel and do not qualify the definition of waste and scarp of PCT heading 7204 given in the H.S. Explanatory Notes. Further, it has been specifically mentioned at Page V-2620-1 of H.S. Explanatory Notes to heading 26.19 that this heading does not cover scrap metal produced during cutting, shaping or other metal working processes, which falls in heading 72.04. Therefore, taking into consideration the physical attributes of samples and test report thereof, the impugned goods viz "Metallurgical Waste from Slag Heaps" by virtue of Rule 1 of General Rules for interpretation of the Harmonized System, is appropriately classifiable under PCT heading 2619.0000.

Signed by

(Gul Rehman)

Additional Collector/

Chairman PCT Committee

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