Tariff classification of coil-form ferrous material depends on physical characteristics; usable flat-rolled product is not waste and scrap.

Goods must be classified by their essential physical characteristics and the relevant tariff description under GRI 1. Mill-processed non-alloy ferrous material wound in coils was found to have the width and thickness of flat products and to have arisen from cold rolling of hot-rolled coils. Because the material remained usable as cold-rolled flat-rolled product and was not shown to be scrap meant for remelting, it could not be treated as waste and scrap. The proper classification was therefore under subheading 72099000 as flat-rolled products of iron or non-alloy steel, not under heading 7204 or subheading 72044900.

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Issues: Whether mill processed non-alloy ferrous waste metal goods wound in coil are classifiable as ferrous waste and scrap under heading 7204 or as flat-rolled cold-rolled products under subheading 7209, and whether they qualify for treatment as waste and scrap for the claimed duty benefit.

Analysis: Classification was determined by applying General Rule of Interpretation 1 along with the relevant section and chapter notes. The goods were found to be flat products by reason of their width and thickness range, and their mode of production showed that they were obtained in the process of cold rolling of hot-rolled coils. The material was therefore treated as cold-rolled flat-rolled products rather than waste and scrap. The reasoning also held that the goods were not metal goods definitely not usable as such, because they could still be adapted for use as cold-rolled material and were not shown to be scrap meant for remelting. The standards and descriptions relied upon for re-rollable scrap did not fit the goods as imported.

Conclusion: The goods are not classifiable under heading 7204 or subheading 72044900 as waste and scrap. They are classifiable under subheading 72099000 as flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, not clad, plated or coated.

Final Conclusion: The applicant's proposed classification was rejected and the tariff treatment was determined against the claimed waste-and-scrap classification.

Ratio Decidendi: Goods are to be classified according to their essential physical characteristics and tariff description, and material that remains usable as a flat-rolled product cannot be treated as waste and scrap merely because it is intended for re-rolling.

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