Ferrous scrap classification under tariff law: non-alloy steel scrap falls in the residuary heading, not iron scrap.

Ferrous scrap arising from a unit using mild steel or non-alloy steel was held to fall under residuary sub-heading 7204.90 rather than scrap of iron under 7204.10. Heading 72.04 distinguishes scrap of iron from other ferrous waste and scrap, and the classification could not be altered by the Section XV note treating iron and steel as one metal only for limited composite-article classification by weight. Trade nomenclature could not override the tariff distinction between iron scrap and non-alloy steel scrap, so the scrap was correctly placed in the residuary category.

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Issues: Whether scrap arising from the appellant's unit was classifiable as scrap of iron under sub-heading 7204.10 or as other ferrous waste and scrap under sub-heading 7204.90.

Analysis: Heading 72.04 covered ferrous waste and scrap, with sub-heading 7204.10 confined to scrap of iron and sub-heading 7204.90 covering the residuary category. The scrap in question arose from the use of mild steel or non-alloy steel, and there was no basis to treat it as scrap of iron merely because iron and steel are regarded as one and the same metal in Note 5 to Section XV for the limited purpose of classification of composite articles by predominance of weight. The note did not support the claim that scrap of non-alloy steel could be classified as iron scrap. Trade nomenclature could not alter the clear tariff distinction between iron scrap and non-alloy steel scrap.

Conclusion: The scrap was not classifiable under sub-heading 7204.10 and was correctly classifiable under sub-heading 7204.90. The appeal failed.

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