A true cermet is a homogeneous composite in which ceramic and metallic phases are intimately bonded throughout the body of the article. A carbide tool that is merely coated with a ceramic layer (e.g., TiN or Al₂O₃ PVD coating) is generally classified by its base material rather than as a cermet. The distinction matters because the two can fall under different tariff provisions with different duty rates.

Cermet scrap — primarily spent tungsten carbide inserts and grinding sludge — contains recoverable tungsten and cobalt, both of which are designated critical minerals. Secondary processors pay a premium for this scrap as a feedstock for recycled carbide powder, making the scrap stream commercially active and worth tracking separately from finished-article imports.