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of <h1>Classification of processed ferrous waste metal goods in coil as non-waste under customs law</h1> <h3>In Re: M/s. Uwas Recycler LLP</h3> In Re: M/s. Uwas Recycler LLP - 2022 (380) E.L.T. 227 (A. A. R. - Cus. - Mum.) Issues Involved:1. Classification of mill processed non-alloy ferrous waste metal goods wound in a coil.2. Determination of whether the goods are considered waste and scrap.3. Applicability of BIS standards and classification under Customs Tariff Act, 1975.4. Eligibility for customs duty benefits under notification no. 02/2021-Customs.Issue-wise Detailed Analysis:1. Classification of Mill Processed Non-Alloy Ferrous Waste Metal Goods Wound in a Coil:The applicant, a merchant importer, sought an advance ruling on the classification of mill processed non-alloy ferrous waste metal goods wound in a coil. The goods are described as re-rollable waste obtained from the manufacturing of cold-rolled coils from hot-rolled coils, having non-uniform thickness and variable tensile strength and elongation properties. The applicant argued that these goods should be classified under tariff heading 72044900 as 'other waste and scrap.'2. Determination of Whether the Goods are Considered Waste and Scrap:The applicant contended that the goods fit the definition of waste and scrap under Section XV note 8(a)(ii) due to their non-uniform thickness and inability to serve their intended purpose. However, the ruling determined that the goods do not qualify as waste and scrap because they can be adapted for other uses without being recovered as metal. The goods are not used for remelting but can be re-rolled for different purposes, thus not meeting the criteria for classification under subheading 7204.3. Applicability of BIS Standards and Classification under Customs Tariff Act, 1975:The applicant provided a lab report indicating that the goods do not meet the BIS 513:2008 standards for prime cold-rolled sheets and strips. Despite this, the ruling found that the goods still fall under the category of cold-rolled products as per Chapter 72 of the Customs Tariff Act, 1975. The goods are classified under subheading 72099000, which pertains to flat-rolled products of iron or non-alloy steel, cold-rolled, not clad, plated, or coated, with uneven thickness.4. Eligibility for Customs Duty Benefits under Notification No. 02/2021-Customs:The applicant sought a classification that would allow for a customs duty benefit of 2.5% under notification no. 02/2021-Customs. However, since the goods were determined not to be waste or scrap, they were not eligible for this benefit. The ruling concluded that the appropriate classification under subheading 72099000 does not qualify for the reduced duty rate.Conclusion:The ruling held that the goods 'mill processed non-alloy ferrous waste metal goods wound in coil' do not qualify as waste or scrap and are not classifiable under subheading 72044900. Instead, they are classified under subheading 72099000, which pertains to flat-rolled products of iron or non-alloy steel, cold-rolled, not clad, plated, or coated, with uneven thickness. Consequently, the goods are not eligible for the customs duty benefit under notification no. 02/2021-Customs.
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