HS Code 15.16 – Animal, vegetable or microbial fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared

HS code 1516 is a 4-digit heading in the Harmonized System that covers: Animal, vegetable or microbial fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared. HS Code 1516 covers animal, vegetable, or microbial fats and oils and their fractions that have undergone specific chemical modifications such as partial or complete hydrogenation, inter-esterification, re-esterification, or elaidinisation. These fats and oils may be refined but are explicitly 'not further prepared' beyond these chemical alterations. This heading is critical for understanding the trade of semi-processed fats and oils, which serve as foundational ingredients for a vast array of food products. Hydrogenation, for example, solidifies liquid oils, enhancing shelf life and texture, while inter-esterification rearranges fatty acids within or between triglyceride molecules, modifying melting points and crystallization properties without creating trans fats. The 'not further prepared' clause is crucial for distinguishing these bulk ingredients from finished edible products like margarine (1517). Classification under 1516 requires a deep understanding of chemical processing, as the physical state (liquid vs. solid) alone is not sufficient. This heading reflects the industrial transformation of raw fats and oils into forms suitable for specific applications in the food industry, such as confectionery, bakery, and snack foods, before they are combined with other ingredients into final consumer goods. Its significance in trade compliance lies in correctly identifying the extent of chemical modification and the absence of further preparation, which dictates its tariff treatment and regulatory oversight.

Partially hydrogenated soybean oil, Fully hydrogenated palm oil, Inter-esterified palm stearin, Hydrogenated rapeseed oil, Partially hydrogenated cottonseed oil, Re-esterified coconut oil, Elaidinised olive oil, Hydrogenated fish oil, Inter-esterified sunflower oil, Hydrogenated vegetable shortening (bulk, unflavored), Fractionated and hydrogenated shea butter, Hydrogenated cocoa butter substitute (bulk), Inter-esterified lard, Hydrogenated beef tallow, Partially hydrogenated corn oil, Hydrogenated groundnut oil, Inter-esterified soybean oil, Hydrogenated algal oil, Fractionated and hydrogenated mango kernel fat, Hydrogenated babassu oil, Inter-esterified illipe butter, Hydrogenated rice bran oil, Partially hydrogenated safflower oil, Inter-esterified butterfat, Hydrogenated castor oil (food grade, not further prepared)

Misclassification under HS 1516 often occurs when products are either not chemically modified or are 'further prepared.' Unmodified fats and oils, even if refined, belong to headings like 1507-1515, not 1516. Conversely, if the modified fats are blended with other ingredients to create a final edible product, such as margarine or a specific baking spread, they would typically fall under heading 1517. Another common error is confusing these specifically modified fats with other chemically modified fats for industrial, non-edible uses (e.g., boiled, oxidized), which are classified under 1518. The key differentiator for 1516 is the specific modification (hydrogenation, inter-esterification, etc.) and the absence of further preparation.

In 2025, the top exporters of HS code 1516 in UN Comtrade data were Indonesia ($2.5B, 33% of world exports), Malaysia ($2.2B) and the Netherlands ($483M). World exports came to about $7.5B, adding countries' reported figures and partner-based estimates for those that did not report (UN Comtrade data). Countries that did not report 2025 data are estimated from partner records, which can understate them.

In 2025, the top importers of HS code 1516 in UN Comtrade data were China ($1.8B, 27% of world imports), the United States ($282M) and Germany ($266M). World imports came to about $6.7B, adding countries' reported figures and partner-based estimates for those that did not report (UN Comtrade data). Countries that did not report 2025 data are estimated from partner records, which can understate them.

HS code 1516 is a 4-digit heading under Chapter 15 of the Harmonized System. The first 2 digits (15) identify the chapter, and digits 3-4 (16) specify the heading. This code contains multiple 6-digit subheadings for precise product classification.