7112 - Waste and scrap of precious metal or of metal clad with precious metal; other waste and scrap containing precious metal or precious metal compounds, of a kind used principally for the recovery of precious metal other than goods of heading 8549:

Heading 7112 encompasses a specific category of waste and scrap materials, distinctly different from finished goods or raw precious metals. This heading covers materials that, while containing precious metals, are not intended for direct use or resale as such. Instead, their principal utility lies in their potential for the recovery of precious metals through refining processes. This includes scrap metal that is clad with precious metal, as well as other waste materials like ashes or residues that contain precious metal compounds and are specifically designated for precious metal recovery.

Unlike sibling categories which might cover raw precious metals (e.g., unwrought gold or platinum), finished articles made from precious metals, or even items not primarily valued for their precious metal content, Heading 7112 is focused solely on the residual or waste forms of these materials when their primary economic value is derived from the precious metals that can be extracted from them. This distinction is crucial for proper customs valuation and duty assessment.

Within Heading 7112, further subdivisions are made to distinguish between different types of precious metal-bearing waste. For instance, specific codes exist for ash containing precious metal or precious metal compounds. Additionally, a general "Other" category exists for various waste and scrap materials not otherwise specified, provided they meet the criteria of being used principally for precious metal recovery. This granular classification allows for more precise tracking and regulation of these valuable secondary resources.