What is HS 151110?
HS 151110 classifies crude palm oil — the unrefined oil extracted from the flesh of fresh fruit bunches (FFB) harvested from oil palm trees. It is distinct from palm kernel oil (HS 151321) and refined palm oil fractions (HS 151190), so correct classification at the six-digit level is essential to avoid duty misapplication or customs delays.
CPO is a versatile industrial and food commodity with end-use applications spanning food processing, oleochemicals, biofuel and biodiesel production, cosmetics, and animal feed. Its relatively low production cost and high yield per hectare compared to other oilseeds make it structurally cost-competitive across most end markets. However, that cost advantage comes with significant sustainability, regulatory, and supply concentration risk that procurement managers must actively monitor.
Top Sourcing Countries for Crude Palm Oil (CPO)
Global supply of HS 151110 is highly concentrated. Malaysia and Indonesia together account for over 68% of recorded export trade value, with Malaysia holding a 38.0% share across 54 importing markets and Indonesia at 30.8% across 33 markets. This duopoly creates systemic supply risk — any policy shift, weather event, or regulatory change in either country ripples through global CPO prices within days.
Beyond the two dominant origins, the supplier landscape includes:
- Thailand (6.5% share): A structurally advantaged secondary supplier for Asian buyers, with lower transshipment scrutiny and growing RSPO-certified volumes.
- Papua New Guinea (5.6% share): Increasingly relevant for buyers seeking non-Indonesian, non-Malaysian origin to satisfy EU deforestation regulation (EUDR) requirements.
- Guatemala (4.0% share) and Honduras (2.7%): The primary Latin American origins, supplying European markets — notably the Netherlands, which recorded $257.7M in imports from Guatemala in 2024.
- Colombia (2.6% share): Serves 20 importing markets, offering geographic diversification with growing sustainability certification uptake.
The largest single trade corridors by value in 2024 were India importing from Indonesia ($2,653M) and Malaysia ($2,575M), followed by Kenya importing from Malaysia ($547.7M) and the Netherlands from Malaysia ($338.8M). India's import dominance reflects its scale as a food and biodiesel market; Europe's reliance on multiple origins signals active origin diversification under EUDR pressure.
Import Duty Rates and Trade Agreements
Within the European Union, HS 151110 attracts a standard MFN import duty rate of 3.8% across all member states including Germany, the Netherlands, Belgium, Spain, and others. For buyers without preferential trade agreement access, this rate applies uniformly regardless of EU entry point.
Procurement teams sourcing CPO into the EU should assess whether their supplier's country of origin qualifies for reduced or zero-rate duties under active EU trade agreements or Generalised Scheme of Preferences (GSP) arrangements. Origin documentation and Rules of Origin compliance are critical — particularly given the high transshipment risk associated with this commodity, where CPO is sometimes re-routed through third countries to obscure origin or exploit preferential rates.
For non-EU destinations including India, Saudi Arabia, and Kenya — three of the largest import markets — duty structures vary significantly and should be verified at the HS 151110 level for each bilateral trade relationship.
Cost Drivers and Price Outlook
CPO pricing is driven by a layered set of variables that procurement managers should track continuously. Indonesia's biodiesel blending mandate — currently at B35 — directly reduces export availability and supports domestic prices. Export levy and duty policies from both Indonesia and Malaysia are subject to frequent revision and have historically caused short-term supply shocks.
On the energy side, Brent crude at approximately $69.41/BBL as of early 2026 supports biodiesel demand, keeping CPO price floors elevated relative to periods of low oil prices. Weather cycles (El Niño and La Niña) affect FFB yields one to two quarters forward, making seasonal forecasting essential for any buyer managing forward contracts. Currency movements in MYR and IDR also influence the landed cost competitiveness of each origin. Competing vegetable oil prices — particularly soybean and rapeseed — set the ceiling on how far CPO can diverge before buyers switch.
Compliance and Sourcing Considerations
Transshipment risk for HS 151110 is rated HIGH. CPO is routinely re-routed through intermediary ports to obscure true origin, which creates compliance exposure for importers in markets with origin-specific restrictions or sustainability certification requirements. Buyers importing into the EU must now prepare for EUDR due diligence obligations, which require verified traceability to the point of production — not just the country of export.
Sustainability certification is no longer optional for most European and many Asian buyers. RSPO (Roundtable on Sustainable Palm Oil) and MSPO (Malaysian Sustainable Palm Oil) certifications are the primary standards. Procurement teams should verify certificate validity, scope, and chain-of-custody documentation at the supplier level — not just at the trading company level.
How to Source Crude Palm Oil (CPO) Efficiently
Efficient procurement of HS 151110 requires more than price benchmarking. Before committing to a supplier or origin, verify the following:
- Confirm the supplier's RSPO or MSPO certification scope and expiry date.
- Check current Indonesian and Malaysian export levy schedules, which are revised monthly and directly affect landed cost calculations.
- Assess origin-specific EUDR compliance readiness if importing into the EU — Papua New Guinea and Latin American origins currently present lower deforestation risk profiles than the major Southeast Asian origins.
- Request bill of lading and phytosanitary documentation that confirms actual origin, not just port of loading, to mitigate transshipment risk.
- Monitor Indonesia's B35 mandate and any announced changes to B40, as domestic absorption shifts affect export volumes on a quarterly basis.
- Use trade flow data to validate supplier claims about market reach and transaction history before entering long-term supply agreements.
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