Tariff classification of metal off-cuts as waste and scrap prevails over flat rolled product headings

Off-cuts arising from cutting metal sheets for container manufacture were treated as waste and scrap because the tariff definition of waste and scrap was the governing test. The explanatory notes to the Harmonised System of Nomenclature were held not to control the tariff entry where the statutory definitions differed. As the goods resulted from mechanical working of metal, were not usable as such, and were sold as waste on uncontroverted facts, they were correctly classified as waste and scrap rather than flat rolled products under the relevant tariff headings.

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Issues: Whether the off-cuts arising from cutting of metal sheets used in manufacture of containers were classifiable as waste and scrap, or as flat rolled products under Heading 72.10 or 72.12 of the tariff.

Analysis: The tariff definition of waste and scrap was held to be the governing test, and the explanatory notes to the Harmonised System of Nomenclature were found not to control the tariff entry where the definitions differ. The goods arose from mechanical working of metal, and the factual finding that they were not usable as such and were sold as waste remained uncontroverted.

Conclusion: The off-cuts were rightly treated as waste and scrap and not as flat rolled products.

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