ANALYSIS OF SECTION XV OF THE HS NOMENCLATURE

SECTION XV ANALYSIS

This document provides a detailed explanation of the Harmonized System (HS) Nomenclature for Section XV, which covers “Base Metals and Articles of Base Metal.” These explanatory notes are essential for correctly classifying goods within this section for customs and trade purposes. The notes establish definitions, rules, and exclusions that govern the classification process.

General Scope of Section XV

Section XV encompasses base metals in their pure, unwrought forms, as alloys, and as various manufactured articles. The section defines which metals are considered “base metals” and provides rules for classifying alloys and composite articles. It also specifies numerous products that, despite being made of base metal, are excluded from this section and classified elsewhere in the nomenclature.

 

Detailed Analysis of Section Notes

The classification of any product within Section XV is subject to a series of legal notes that provide specific instructions and definitions.

Note 1: Exclusions from Section XV

This note lists categories of goods that are not to be classified in Section XV, even if they are made of base metal. The principle is that these items are more specifically covered by other sections of the nomenclature.

This note is fundamental as it lists goods that must be classified in other sections, even if they are made of base metal. The general principle is that an item’s primary function or specific nature takes precedence over its material composition.

 

• Paints and Inks: Prepared paints or inks that use metallic flakes or powder as a basis are excluded. They fall under headings like 32.07 to 32.10, 32.12, 32.13, or 32.15.
• Pyrophoric Alloys: Items like ferrocerium, used in lighters, are excluded and classified under heading 36.06.
• Precious Metals and Jewellery: Goods of Chapter 71, such as precious metal alloys, base metal clad with precious metal, and imitation jewellery, are excluded.
• Machinery and Electrical Goods: Most complex articles, such as machinery, mechanical appliances, and electrical goods, are classified in Section XVI. For example, a water pump made of steel is in Chapter 84, not Section XV.
• Vehicles and Transport Equipment: Assembled railway tracks (heading 86.08) and other articles of Section XVII (vehicles, ships, aircraft) are excluded.
• Instruments and Apparatus: Instruments from Section XVIII, which includes items like clocks, watches, and their springs, are not covered here.
• Furniture and Miscellaneous Articles: The exclusions extend to furniture (Chapter 94) , toys and sports equipment (Chapter 95) , and various miscellaneous manufactured articles like pens, buttons, and hand sieves (Chapter 96).
• Other Exclusions: Also excluded are headgear (headings 65.06, 65.07) , umbrella frames (heading 66.03) , ammunition (heading 93.06) , and works of art (Chapter 97).
• Principle: Goods are excluded if they are more specifically described in other chapters, such as machinery, vehicles, instruments, or furniture.
• Example 1: Office Furniture A filing cabinet made entirely of steel is not classified in Section XV as an “article of steel.” Because it is furniture, it is excluded by Note 1(k) and must be classified in Chapter 94.
• Example 2: Mechanical Appliances A coffee grinder with an aluminium body and steel grinding burrs is not classified in Section XV based on the weight of its metals. It is a mechanical appliance and is therefore excluded by Note 1(f) and classified in Section XVI (heading 85.09).
• Example 3: Imitation Jewellery A necklace made of copper plated with a thin layer of silver is not classified as an article of copper in Section XV. It is considered imitation jewellery and is excluded by Note 1(e), placing it in Chapter 71.

 

Note 2: “Parts of General Use”

This note defines a special category called “parts of general use.” These are common items that can be used in a wide variety of goods.

Definition: “Parts of general use” include:

• Articles from headings 73.07, 73.12, 73.15, 73.17, or 73.18 (e.g., tubes, chains, nails, screws, bolts) and similar articles of other base metals. An exception is made for articles specially designed for medical, surgical, dental, or veterinary implants (heading 90.21).
• Springs and leaves for springs made of base metal but not clock or watch springs (which are in heading 91.14).
• Articles from headings 83.01 (locks), 83.02 (mountings, fittings), 83.08 (clasps, buckles), 83.10 (sign-plates), and 83.06 (frames, mirrors).

Classification Rule: When presented separately, “parts of general use” are not to be classified as parts of a specific machine or apparatus. They must be classified in their own specific headings.

This is one of the most critical rules in Section XV. It dictates that common parts like screws, bolts, springs, and hinges are classified in their own specific headings, rather than as “parts” of the larger articles they may be intended for.

Principle: Identifiable parts that are listed as “parts of general use” (e.g., screws, bolts, nuts of heading 73.18; springs of heading 73.20; or locks of heading 83.01) are not classified as parts of other articles (like cars, refrigerators, or furniture).

This is a critical rule that dictates that common parts like screws, bolts, springs, and hinges are classified in their own specific headings, rather than as “parts” of the larger articles they may be intended for.

Example: Steel bolts specifically made for a car are not classified as parts of a motor vehicle (heading 87.08). Instead, they are classified as bolts under heading 73.18. Similarly, springs for a car are classified as springs in heading 73.20, not as vehicle parts.

Example: Hinges for a Door A pair of brass hinges designed for a wooden door would not be classified in Chapter 44 as part of a door. Hinges are base metal mountings and fittings of heading 83.02. As “parts of general use,” they are classified in heading 83.02 regardless of their intended application.

Example: Springs for a Vehicle Leaf Spring made of steel are designed for the suspension system of a truck (a vehicle of Chapter 87). However, Note 2(b) identifies springs of base metal as “parts of general use”. Therefore, they are excluded from being classified as parts of motor vehicles (heading 87.08) and are correctly classified in heading 73.20 as springs. An important exception to this rule is for clock or watch springs, which are classified in heading 91.14.

Example: Screws for Electronics A company imports small steel screws designed specifically to assemble laptop casings. Although their sole intended use is for a product of Section XVI (laptops), the screws are defined as “parts of general use.” They must be classified under heading 73.18 as screws, not under heading 84.73 as parts for computers.

 Note 3: Definition of “Base Metals”

This note provides an exhaustive list of metals that the nomenclature considers “base metals.” This list includes common metals like iron, steel, copper, aluminium, and zinc, as well as less common ones like hafnium, rhenium, and thallium. This definition is fundamental for applying rules regarding alloys and composite goods.

Note 4: Definition of “Cermets”

“Cermets” are defined as products containing a microscopic, heterogeneous mix of a metallic and a ceramic component. The term also explicitly includes sintered metal carbides (metal carbides fused with a metal).

Note 5: Classification of Alloys

This note provides the rules for classifying alloys. It distinguishes between different types of alloys.

Alloys of Base Metals (Rule 5a): An alloy composed of two or more base metals is classified as an alloy of the metal that predominates by weight over each of the other metals.

Example: An alloy containing 60% nickel, 25% copper, and 15% zinc is classified as an alloy of nickel.

Alloys with Non-Base Metals (Rule 5b): An alloy containing base metals from Section XV and other elements (e.g., non-metals) is treated as an alloy of Section XV only if the total weight of the base metals is equal to or greater than the total weight of the other elements. If not, it is typically classified in heading 38.24.

Other Inclusions (Rule 5c): The term “alloys” also covers sintered mixtures of metal powders, certain heterogeneous mixtures obtained by melting, and intermetallic compounds.

This note provides the definitive rule for determining the identity of a base metal alloy. The classification is based on which base metal is the most predominant by weight.

Principle: An alloy of base metals is classified as an alloy of whichever metal outweighs every other single metal in the alloy. The term “alloys” also includes sintered mixtures of metal powders and intermetallic compounds.

Example: Classifying Brass An ingot of brass is composed of 65% copper and 35% zinc. Both are base metals. Since the weight of copper (65%) predominates over the weight of zinc (35%), the ingot is classified as an alloy of copper.

Example: Classifying a Multi-Component Alloy An alloy is created with the following composition: 40% Nickel, 35% Iron, and 25% Chromium. All three are base metals. To classify it, you compare the weights:

• • Nickel (40%) > Iron (35%)
  • Nickel (40%) > Chromium (25%) Since nickel predominates by weight over each of the other metals, it is classified as an alloy of nickel.

Example: Alloy with Non-Section XV Elements A material is made of 55% aluminium (a base metal) and 45% silicon (a non-metal not in Section XV). According to Note 5(b), because the total weight of the base metal (55%) equals or exceeds the weight of the other elements (45%), it is treated as an alloy of base metals of this section. It would therefore be classified as an alloy of aluminium.

Note 6: Alloys Included by Reference

Unless stated otherwise, any reference to a base metal in the nomenclature automatically includes a reference to its alloys as classified by Note 5. For instance, a heading for “Articles of Copper” also covers articles made of brass (a copper-zinc alloy).

Note 7: Classification of Composite Articles

This note explains how to classify articles made of two or more different base metals.

Predominance by Weight: The article is classified as an article of the base metal that outweighs each of the other base metals.

Clarifications for this Rule:

1. All types of iron and steel are considered to be one and the same metal.
2. An alloy is treated as being composed entirely of the metal under which it is classified per Note 5. For example, in an article containing steel and brass, the brass is considered 100% copper for the weight calculation.
3. A cermet from heading 81.13 is treated as a single, separate base metal.

This note explains how to classify a finished product made from two or more different base metals. The logic follows the predominance by weight rule, with some important clarifications.

Principle: Articles containing two or more base metals are classified as articles of the base metal that predominates by weight over each of the other metals. For this rule, iron and steel are treated as the same metal, and an alloy is treated as being 100% of its primary metal.

Example: A Mixed-Metal Tool A hammer has a carbon steel head weighing 1 kg and an aluminium handle weighing 0.5 kg. Since steel’s weight (1 kg) predominates over aluminium’s weight (0.5 kg), the entire hammer is classified as an article of iron or steel (Chapter 73).

Example: Article with an Alloy Component A bathroom tap is constructed from 400g of stainless steel and 500g of chrome-plated brass.

1. First, identify the base metals. We have steel (iron) and brass.
2. Per Note 5, brass (a copper-zinc alloy) is classified as an alloy of copper.
3. Per Note 7(b), the brass component is regarded as being entirely composed of copper for this calculation.
4. You are now comparing 400g of steel vs. 500g of copper. Since copper predominates by weight, the entire tap is classified as an article of copper (Chapter 74).

Example 3: Article with Different Steels A knife is made with a stainless-steel blade (50g) and a handle made of a different type of carbon steel (70g). According to Note 7(a), all kinds of iron and steel are regarded as one and the same metal. Therefore, the knife is considered to be 100% an article of steel and is classified accordingly.

Note 8: Definitions of “Waste and scrap” and “Powders”

• Waste and Scrap: This includes all metal waste and scrap, as well as metal goods that are unusable for their original purpose due to breakage, wear, or other reasons.
• Powders: This refers to products where 90% or more of the weight passes through a sieve with a 1 mm mesh aperture.

Note 9: Definitions of Product Forms (for Chapters 74-76 and 78-81)

This note provides precise definitions for common semi-finished metal products to ensure uniform classification.

• Bars and Rods: These are products that are not in coils and have a uniform solid cross-section in shapes like circles, ovals, rectangles, or other regular polygons. For rectangular products, the thickness must be more than one-tenth of the width.
• Profiles: These are products of a uniform cross-section that do not fit the definitions of bars, rods, wire, plates, sheets, or other forms.
• Wire: This consists of products supplied in coils with a uniform solid cross-section in various shapes. The same dimensional rule as for bars and rods applies to rectangular wire (thickness exceeds one-tenth of the width).
• Plates, Sheets, Strip, and Foil: These are flat-surfaced products of a uniform thickness. For rectangular shapes, the thickness must not exceed one-tenth of the width. These products can be patterned, perforated, or coated without changing their classification, provided they don’t become articles of other headings.
• Tubes and Pipes: These are hollow products with a uniform cross-section and a single enclosed void along their entire length. They can be of various cross-sectional shapes (circular, rectangular, etc.) and can be polished, coated, threaded, or otherwise worked.