HS 151560 Microbial fats and oils and their fractions

Import duty rates for HS code 151560 can vary significantly based on the importing country and applicable trade agreements. For example, under the US Harmonized Tariff Schedule (HTS), the Most Favored Nation (MFN) rate is often 3.2% ad valorem. However, preferential rates under agreements like the US-Australia Free Trade Agreement (AU) can be Free. The EU's TARIC system and the UK's Trade Tariff also list specific rates, which can range from 0% to over 12.80% ad valorem depending on the specific product and origin. It is crucial to consult the official tariff schedule of the destination country for the precise rate applicable to your shipment.

HS code 151560 specifically covers 'other fixed vegetable fats and oils and their fractions, whether or not refined, but not chemically modified, including those from microbial sources.' The key criterion for classification is that the fats and oils must be derived from microbial sources (e.g., yeasts, algae, bacteria) and must not have undergone chemical modification. They can be in their natural state, refined, or fractionated. If they have been chemically modified (e.g., through hydrogenation or esterification), they would typically be classified elsewhere, often under Chapter 29 (Organic Chemicals) or Chapter 38 (Miscellaneous Chemical Products), depending on the specific modification and intended use. Verification of the production process and chemical composition is essential for accurate classification.

Standard import documentation for HS code 151560 generally includes a commercial invoice, packing list, and bill of lading or air waybill. Depending on the country of import and the specific nature of the microbial fats and oils, additional documents may be required. These can include a certificate of origin to claim preferential duty rates, a laboratory analysis report confirming the composition and microbial source, and potentially health or sanitary certificates if the product is intended for food, feed, or pharmaceutical applications. Importers should consult the customs authorities of the destination country for a comprehensive list of required documents.

Several trade agreements can provide preferential duty rates for goods classified under HS code 151560. For instance, Free Trade Agreements (FTAs) between the US and countries like Australia (AU), Singapore (SG), and South Korea (KR) often grant duty-free entry for qualifying products originating from these partner nations. Similarly, the EU has FTAs with numerous countries (e.g., Canada (CA), Japan (JP)) that may reduce or eliminate duties. To benefit, importers must ensure the microbial fats and oils meet the rules of origin stipulated in the relevant trade agreement and possess a valid certificate of origin issued by the exporting country's competent authority. This requires careful tracking of the supply chain and origin of the raw materials.

Import duty for HS code 151560 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. The customs value is usually the transaction value (the price paid or payable for the goods) plus certain other costs like shipping and insurance to the port of entry. For example, if a shipment of microbial oils is valued at $10,000 USD and the applicable MFN duty rate is 3.2%, the import duty would be calculated as: $10,000 (Customs Value) × 3.2% (Duty Rate) = $320 USD. If the duty were based on weight (e.g., per kilogram), the calculation would be: Quantity (kg) × Rate per kg = Duty Amount. Always confirm the basis of duty calculation (ad valorem, specific, or compound) with the official tariff schedule.