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Heading 7204 : Ferrous waste and scrap; remelting scrap ingots of iron or steel.
(A) WASTE AND SCRAP
The heading covers waste and scrap of iron or steel, as defined in Note 8 (a) to Section XV.
Such waste and scrap of iron or steel is of a miscellaneous nature and generally takes the form of : (1) Waste and scrap from the manufacture or mechanical working of iron or steel (e.g., crop ends, filings and turnings). (2) Articles of iron or steel, definitively not usable as such because of breakage, cutting-up, wear or other reasons; iron or steel waste and scrap is usually prepared by means of the following processes, in order to adapt it to the dimensions and qualities required by the users : (a) Shearing of flame-cutting of heavy and long pieces. (b) Compression into bales, particularly in the case of light scrap, using for example a hydraulic press. (c) Fragmentation (shredding) of motor vehicle bodies and other light scrap, followed by separation (which may be magnetic) with a view to obtaining a high density product that is fairly clean. (d) Crushing and agglomeration into briquettes of iron and steel filings and turnings. (e) Breaking up of old iron articles. Waste and scrap is generally used for the recovery of metal by remelting or for the manufacture of chemicals.
But the heading excludes articles which, with or without repair or renovation, can be re-used for their former purposes or can be adapted for other uses; it also excludes articles which can be refashioned into other goods without first being recovered as metal. Thus, it excludes, for example, structural steelwork usable after renewal of worn-out parts; worn railway lines which are usable as pitprops or may be converted into other articles by re-rolling; steel files capable of re-use after cleaning and sharpening.
The heading also excludes : (a) Slag, dross, scalings or other waste from the manufacture of iron or steel, even if suitable for the recovery of the metal (heading 26.19). (b) Waste and scrap not usable directly in the iron or steel industry, since it is radio-active (heading 28.44). (c) Broken pieces of pig iron or spiegeleisen (heading 72.01). (B) REMELTING SCRAP INGOTS
These products are defined in Note 1 (g) to this Chapter. They consist of ingots or pigs normally of high alloy steel, obtained by remelting and casting of fine shaped waste or scrap (e.g., grinding dust or fine turning chips). They are not rolled and are used as addition products in steel manufacture. They have a rough and uneven surface, with bubbles, crevices, splits and shrinkage holes, caused by the fact that casting was done in used chill moulds. The casting in ingot form is done without a funnel. Consequently, they show no sign of feeder heads or hot tops (deadheads), but have an irregular surface, sometimes in the shape of a trough at the upper end. This surface often has splits in the shape of craters in which proportions of porous dross can be observed.
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