HS Code for Biodiesel blend

Heading 271020 is designated for petroleum oils and oils obtained from bituminous minerals that contain biodiesel, provided the petroleum component constitutes 70% or more by weight. This classification reflects the product's primary characteristic as a petroleum-based fuel, even with the inclusion of biodiesel. The "not crude, not waste oils" clause further refines its scope, ensuring it applies to refined fuel products. This code is crucial for blends like B7 (7% biodiesel, 93% petroleum diesel) or B20 (20% biodiesel, 80% petroleum diesel), where the petroleum content significantly exceeds the biodiesel component, making it fundamentally a petroleum product with an additive. This distinction is critical for customs duties, environmental regulations, and trade statistics, as it clearly separates petroleum-dominant fuels from those where biodiesel is the primary constituent.

Products Included

• Diesel fuel containing 7% biodiesel (B7)
• Diesel fuel containing 20% biodiesel (B20)
• Diesel fuel containing 50% biodiesel (B50), provided the petroleum content is 70% or more
• Other blends of petroleum diesel and biodiesel where petroleum oils constitute 70% or more by weight

Common Misclassification

382600: This code covers biodiesel and mixtures thereof, specifically when they contain less than 70% by weight of petroleum oils or oils obtained from bituminous minerals. A blend with a high biodiesel content (e.g., B100, B80) would fall under 382600, not 271020. The 70% petroleum threshold is the key distinguishing factor.
271019: This code covers other petroleum oils and oils from bituminous minerals, not containing biodiesel, or containing less than 70% by weight of petroleum oils or oils from bituminous minerals. If a fuel is purely petroleum diesel without any biodiesel, or if it's a blend where the biodiesel content is very low and not specifically mentioned in the description for 271020, it might be misclassified here. However, 271020 specifically addresses the presence of biodiesel.

FAQ

What is the HS code for a Biodiesel blend?

For biodiesel blends where petroleum oils constitute 70% or more by weight, the HS code is 271020.

Why are some biodiesel blends classified under Chapter 27 and others under Chapter 38?

The classification depends on the predominant component. If the blend contains 70% or more by weight of petroleum oils, it is considered a petroleum product and falls under Chapter 27 (e.g., 271020). If it contains less than 70% petroleum oils, the biodiesel characteristic predominates, and it is classified under Chapter 38 (e.g., 382600).