7204.49.00.40 - No. 2 heavy melting

This HTS subcategory, 7204.49.00.40, specifically covers "No. 2 heavy melting" scrap iron and steel. This designation refers to a grade of ferrous scrap characterized by its physical form and composition, typically comprising items like shredded steel, tin cans, and automotive scrap. It is suitable for remelting in furnaces, contributing to the production of new iron and steel products.

Distinguishing this category from its sibling, 7204.49.00.20 (No. 1 heavy melting), is crucial. No. 1 heavy melting scrap generally consists of larger, heavier pieces of iron and steel, such as plate, structural steel, and bars, often with less contamination. In contrast, No. 2 heavy melting, as classified here, is typically smaller, more fragmented, and may contain a higher proportion of non-ferrous contaminants or require more processing before remelting.

As this is a leaf node within the HTS structure, there are no further subcategories for this specific classification. Therefore, the classification hinges on the precise definition and acceptable tolerances for "No. 2 heavy melting" scrap, often guided by industry standards and specific contractual agreements between buyers and sellers, alongside customs regulations. Classification relies on accurate identification of the physical characteristics and composition of the scrap material presented for import or export.