What is HS 151110?
HS 151110 covers crude palm oil extracted from fresh fruit bunches (FFB) of the oil palm tree, prior to any refining, bleaching, or deodorising process. It is the raw, unprocessed form that enters global trade and serves as the primary feedstock for refined palm oil products classified under HS 1511.90.
End-use applications are broad and strategically important: food manufacturers use CPO in cooking oils, margarines, and processed foods; energy producers blend it into biodiesel under national blending mandates; oleochemical plants convert it into soaps, lubricants, and surfactants; and the cosmetics industry relies on its fatty acid profile for emollient formulations. This diversity of demand makes CPO relatively price-inelastic — buyers rarely exit the market entirely, even during price spikes.
When classifying shipments, importers should note that once palm oil undergoes any refining step, it shifts to HS 151190. Correct classification under HS 151110 is essential to ensure the right duty treatment and to meet origin-specific regulatory requirements.
Top Sourcing Countries for Crude Palm Oil (CPO)
Supply for HS 151110 is structurally concentrated, and procurement teams must plan around that reality.
- Indonesia (ID): The dominant global supplier, accounting for roughly 60% of world CPO exports. Indonesian supply is cost-competitive due to large-scale plantation infrastructure and lower land costs, but export volumes are directly shaped by the government's progressive export tax and levy system, as well as domestic biodiesel blending mandates (B35 and above), which divert significant volumes away from export markets.
- Malaysia (MY): The second-largest exporter, consistently supplying around 25–28% of global CPO trade. Malaysian CPO commands a quality premium and benefits from mature RSPO certification infrastructure, making it the preferred origin for buyers serving EU and premium consumer markets.
- Thailand (TH), Nigeria (NG), Colombia (CO): Smaller but strategically relevant origins. Thailand serves regional Asian buyers efficiently. Nigeria and Colombia are growing origins that offer geographic diversification for buyers seeking to reduce concentration risk, though volumes and certification maturity remain below Southeast Asian benchmarks.
Given the high supply concentration, procurement managers should maintain dual-source strategies and monitor Indonesian export policy calendars closely — tariff adjustments in Jakarta can shift global CPO prices materially within weeks.
Import Duty Rates and Trade Agreements
Duty rates on HS 151110 vary significantly by destination market and should be verified directly with the relevant customs authority before contract finalisation, as rates are subject to change and FTA eligibility depends on origin documentation.
Key considerations include: India, one of the largest CPO importers globally, applies tiered import duties that have historically been used as a domestic price management tool — rates have shifted multiple times in recent years. The European Union applies MFN duties but the more pressing barrier is no longer tariff-based; it is regulatory. The EU Deforestation Regulation (EUDR) effectively conditions market access on supply chain traceability and deforestation-free sourcing evidence. China and Pakistan are major volume destinations with their own FTA landscapes that can make Malaysian or Indonesian origin materially more or less cost-competitive depending on current agreement status.
Buyers should engage a licensed customs broker in each destination market to confirm current MFN rates, applicable FTA preferences, and any anti-dumping or safeguard measures in force.
Cost Drivers and Price Outlook
CPO prices are driven by a distinct set of variables that procurement teams should track continuously in 2025.
- Production volumes in Indonesia and Malaysia: Yield is sensitive to El Niño and La Niña weather cycles. A prolonged dry period in Southeast Asia tightens supply and pushes prices structurally higher.
- Competing vegetable oil prices: Soybean and sunflower oil markets act as substitution ceilings for CPO. When those oils are cost-competitive, buyers shift blends and CPO demand softens.
- Biofuel blending mandates: Indonesia's domestic B35 mandate — with B40 under consideration — directly reduces exportable CPO surplus, supporting global prices.
- Energy costs: Crude oil prices influence CPO indirectly through biodiesel demand correlation. With Brent crude recently trading above $69/bbl, the biofuel demand floor under CPO remains active.
- FX dynamics: CPO is priced in USD on the Bursa Malaysia Derivatives exchange, but production costs are incurred in MYR and IDR. A weaker ringgit or rupiah makes exports more competitive and can encourage greater export volumes.
- India and China import demand: Seasonal buying cycles from these two markets — particularly pre-Ramadan and Chinese New Year inventory builds — create predictable demand surges that procurement teams should anticipate in their order scheduling.
Compliance and Sourcing Considerations
CPO under HS 151110 carries a medium transshipment risk, meaning that origin verification should be part of every purchase due diligence process. Misrepresentation of origin — for example, routing Indonesian CPO through a third country to avoid country-specific restrictions — can expose importers to customs penalties and reputational risk.
The EU Deforestation Regulation (EUDR) is the single most significant compliance development for CPO buyers in 2025. Importers into the EU must provide georeferenced supply chain data demonstrating that palm oil was not produced on land deforested after December 2020. RSPO (Roundtable on Sustainable Palm Oil) and ISCC (International Sustainability and Carbon Certification) certifications are the primary mechanisms suppliers use to demonstrate compliance, but certification alone does not fully satisfy EUDR's due diligence requirements.
Practical compliance steps include: requesting mill-level traceability data from suppliers, validating RSPO or ISCC certificate authenticity through public registries, and ensuring your import documentation includes accurate country-of-origin declarations aligned with rules of origin for each destination market.
How to Source Crude Palm Oil (CPO) Efficiently
Efficient procurement of HS 151110 requires combining market intelligence with robust supplier qualification processes.
- Diversify origins strategically: Do not rely exclusively on a single country. Maintain qualified suppliers in both Indonesia and Malaysia at minimum, and evaluate Colombian or Nigerian origins for non-EU markets where certification requirements are less stringent.
- Align purchase timing with seasonal cycles: Indonesian and Malaysian production peaks between October and January. Locking in forward contracts ahead of the Indian and Chinese seasonal demand surges can secure more cost-competitive terms.
- Verify certification status before contracting: Confirm RSPO or ISCC certificate validity, scope, and chain-of-custody model before contract execution — not after. Certificate suspension or expiry mid-shipment creates significant customs clearance risk in regulated markets.
- Monitor Indonesian export tax schedules: The Indonesian CPO export levy and tax structure is reviewed monthly based on reference prices. Subscribe to official BPDP-KS and Ministry of Trade announcements, or use a trade intelligence platform to receive alerts automatically.
- Engage freight forwarders experienced in agri-bulk: CPO requires specialised tank vessels or flexitanks and specific temperature management. Freight costs and demurrage exposure can erode price advantages if logistics are not managed by specialists familiar with this commodity.
Get a free sourcing intelligence report for HS 151110 at Logitality.com