HS Code Classification for Commodities: Coal, Iron Ore, Crude Oil & Grains
How to find correct HS codes for coal, iron ore, crude petroleum, grains. Learn GRI rules, tariff implications, and country-specific classification databases.
What is HS Code Classification?
The Harmonized System (HS) is a 6-digit international commodity classification system administered by the World Customs Organization (WCO). Every product traded internationally has an HS code that determines:
- Import tariff rates (duty %)
- Export restrictions or quotas
- Trade statistics and anti-dumping actions
- Sanitary/phytosanitary requirements (for agricultural/food goods)
For commodities like coal, iron ore, crude oil, and grains, the HS code is critical because small differences (e.g., coal grade: bituminous vs anthracite) can change the duty rate by 10–20 percentage points or trigger special restrictions.
HS Code Structure: Chapters, Headings, Subheadings
HS codes are hierarchical:
| Level | Digits | Example | Breadth |
|---|---|---|---|
| Chapter | 2 digits (01–99) | Chapter 27 = Mineral fuels | Very broad (e.g., all oils) |
| Heading | 4 digits (first 4 of 6) | 2701 = Coal & briquettes | Broad category |
| Subheading | 6 digits (full HS code) | 270111 = Anthracite coal | Specific product |
| National Extension | 8–10 digits (country-specific) | 27011010 (US HTS adds 4 digits) | Country-specific duty rates |
Key Commodity Classifications
Coal (HS Heading 2701)
Coal is classified by grade and form. The grade (bituminous, anthracite, lignite, sub-bituminous) determines the HS subheading and often the tariff rate.
| HS Code | Type | Characteristics | Typical Use |
|---|---|---|---|
| 270111 | Anthracite | Highest carbon, lowest moisture, high fixed carbon | Specialty fuel, metallurgy |
| 270112 | Bituminous Coking Coal | Premium coking coal, high volatile matter | Steel production (coke) |
| 270119 | Other Bituminous Coal | Thermal coal, steam coal, non-coking | Power generation |
| 270121 | Lignite (Brown Coal) | Lower carbon, higher moisture, low calorific value | Power plants (low efficiency) |
| 270130 | Coke & Semi-coke | Processed coal (retorted) | Industrial fuel |
Red flag: Coking coal (270112) has 2–3× higher tariff rates than thermal coal (270119) in many countries. Misclassifying coking coal as thermal coal to avoid higher duty is a common customs fraud trigger.
Crude Petroleum (HS Heading 2709)
Crude oil is classified by gravity (API degree) and origin. The HS doesn't further subdivide crude by type within 2709; instead, tariff differentiation happens at the national (8–10 digit) level.
| HS Code | Description | Notes |
|---|---|---|
| 270900 | Crude Petroleum Oil (all types) | 6-digit HS does not differentiate light vs heavy. US HTS extends to 10 digits by origin + API gravity. EU TARIC similarly extends. |
Why it matters: US tariff on crude was 0% for decades but varies by origin under sanctions regimes. EU crude tariff is also 0% for most origins. But sanctions (Russia, Iran) mean some crude origins are prohibited entirely, not just tariffed.
Iron Ore (HS Heading 2601)
| HS Code | Type | Key Distinction |
|---|---|---|
| 260111 | Iron Ore Agglomerated | Pelletized or briquetted ore (pre-processed) |
| 260112 | Iron Ore, Magnetite Concentrate | Concentrated via magnetic separation |
| 260121 | Non-Agglomerated Hematite | Raw ore, not processed |
| 260129 | Other Non-Agglomerated Iron Ore | Limonite, siderite, mixed ore |
Classification logic: HS differentiates agglomerated (processed) from non-agglomerated (raw) ore. Agglomerated ores (pellets, briquettes) are classified under 260111; raw ore under 260112–260129. The form determines the code, not the Fe% content.
Grains (HS Chapter 10: Cereals)
| HS Heading | Grain | Subheading Detail |
|---|---|---|
| 1001 | Wheat | 100110 (Durum), 100190 (other) |
| 1002 | Rye | Single subheading 100200 |
| 1003 | Barley | Single subheading 100300 |
| 1004 | Oats | Single subheading 100400 |
| 1005 | Maize (Corn) | 100510 (Seed corn), 100590 (other) |
| 1006 | Rice | 100610 (Paddy), 100620 (Brown), 100630 (Semi-milled), 100640 (Milled) |
Important: Rice is further classified by processing level (paddy, brown, semi-milled, milled). This is a critical distinction because paddy rice (unhulled) has tariffs that differ from milled rice (polished). Misclassifying paddy as milled rice can trigger anti-dumping duties in countries that protect domestic milling.
Fertilizers (HS Chapter 31)
| HS Heading | Type |
|---|---|
| 3101 | Animal/Plant Fertilizers (manure, seaweed, etc.) |
| 3102 | Mineral Fertilizers (ammonium nitrate, urea, etc.) |
| 3103 | Phosphatic Fertilizers |
| 3104 | Potassic Fertilizers |
| 3105 | Mixed/Compound Fertilizers |
Classification by composition: Urea (nitrogen source) is 310210; phosphate rock (phosphorus source) is 310300; potassium chloride (potassium source) is 310420. Mixed NPK fertilizers are 310510–310590 depending on nitrogen content.
Metals (HS Chapter 74–81: Copper, Aluminum, Lead, Zinc, etc.)
Metals are classified by form (ore, refined, waste, scrap) and purity:
| Form | Example HS Code | Description |
|---|---|---|
| Ore/Concentrate | 7401 (Copper) | Raw material, not refined |
| Refined (Cathode/Ingot) | 7403 (Copper) | Refined ≥99.5% purity |
| Scrap/Waste | 7404 (Copper) | Recycled material |
| Semi-Manufactured | 7405 (Copper Alloys) | Rods, bars, wire before final manufacturing |
General Rules of Interpretation (GRI): How to Classify Ambiguous Goods
The WCO publishes GRI to resolve classification disputes. Apply them in order:
GRI 1: Chapter Notes and Headings
If the chapter notes or heading clearly define the product, use that classification. Example: "Coal, not agglomerated" → directly falls under 2701.
GRI 2: Subheading Notes
If subheading notes clarify, use them. Example: Iron ore "agglomerated" vs "non-agglomerated" → subheading notes distinguish 260111 from 260121.
GRI 3: Numerical Order
If ambiguous, choose the numerically lowest code that fits. Example: A commodity that could be 270112 or 270119 → choose 270112 (numerically first).
GRI 4: Essential Character / Materials / Function
Classify by the product's essential character, primary material, or intended use. Example: Coal briquettes (260130) vs raw coal (2701) → if formed into pellets for transport, classify as briquettes (260130).
GRI 5: If Still Ambiguous, Choose Most Specific Classification
GRI 6: Use Latest Specific Provision
If a later chapter better fits, use it. Example: Iron ore that has been further processed into steel scrap → classify under Chapter 72 (steel) rather than Chapter 26 (ore).
Real Example: Misclassification Risk – Coal Grade
Numerical Example: Classification Impact: Coking Coal vs Thermal Coal Tariff Difference
Customs authorities inspect coal specifications (calorific value, ash %, volatile matter per ISO 3082 or ASTM D3302). If lab results show volatile matter outside coking coal range, misclassification is detected and penalties are assessed.
Where to Find Current Tariff Classifications & Rates
| Country/Region | Database | URL | Digits |
|---|---|---|---|
| Worldwide | WCO HS Database | www.wcoomd.org | 6 digits (international standard) |
| USA | USITC HTS | usitc.gov/tata/hts | 10 digits |
| EU | EU TARIC | ec.europa.eu/taxation_customs/taric | 8–10 digits |
| UK (Post-Brexit) | UK Trade Tariff | apply-trade-tariff.service.gov.uk | 10 digits |
| India | CBIC Tariff Schedule | cbic.gov.in | 8 digits |
| China | China Customs Tariff | customs.gov.cn | 10 digits |
When to Hire a Customs Broker
For commodity trades, consider hiring a customs broker (USD 300–500 classification fee) if:
- High-value shipment (>USD 500,000): Misclassification cost exceeds broker fee
- Commodity with multiple grades (coal, rice, metals): Physical characteristics determine code; broker can audit against specs
- First import from new origin: Risk-based targeting by customs; correct classification is proof of compliance
- Potential anti-dumping exposure: Textiles, steel, solar panels face antidumping actions; correct classification is critical
This guide is for commodity trade education. HS classification can be complex, and misclassification carries penalties. Always verify current 6-digit HS codes via WCO and country-specific extended codes via official tariff databases before importing. For high-risk commodities, consult a licensed customs broker or seek a formal ruling from your national customs authority.
Frequently asked questions
What is the HS code for coal?#
Coal is HS 2701, which breaks into: 2701.11 (anthracite), 2701.12 (coking coal), 2701.19 (other bituminous coal). The subcode determines the tariff rate-coking coal often has lower duty than thermal coal in some countries. Use the free HS Lookup tool to find the exact code for your coal grade.
What is the HS code for crude oil?#
Crude petroleum is HS 2709. Unlike coal, crude oil has less sub-division at the 6-digit level; most tariffs depend on API gravity and sulfur content (described in the commercial invoice), not the HS code itself. Classification typically occurs post-import based on quality testing.
What is the HS code for iron ore?#
Iron ore is HS 2601, divided into: 2601.11 (roasted), 2601.12 (non-roasted), 2601.20 (concentrates). Duty rates vary significantly by sub-code and by destination country (EU, USA, China have different rates). Pre-reduced or agglomerated ore may fall under HS 2602 or 2604 instead.
How do I know if my commodity is classified correctly?#
Rule of thumb: Misclassification of coal, iron ore, or petroleum can trigger audits, penalties, and duty recalculation (sometimes retroactive). For high-value shipments (>USD 100k), hire a customs broker or use HS Lookup tool to verify. A USD 300 broker consultation saves tens of thousands in potential duties.
Why do HS codes differ by country?#
WCO provides the 6-digit international HS code. Each country extends it: USA uses 10-digit HTS, EU uses 8-digit CN, India uses 8-digit, UK uses 10-digit. These extensions add tariff line detail (anti-dumping duties, quotas, FTA preferences). Same HS 2701 coal code may be HS 2701.11.01 in one country, 2701.11.10 in another.
What are GRI rules in HS classification?#
GRI = General Rules of Interpretation (6 rules set by WCO). Apply in order: GRI 1 (chapter notes), GRI 2 (subheading notes), GRI 3 (numerical order if tied), GRI 4 (materials/function), GRI 5 (packaging), GRI 6 (most specific provision). These rules prevent misclassification disputes.
Can I look up HS codes for free?#
Yes. ssltglobal.com HS Lookup tool is free. It searches across WCO HS, US HTS, EU TARIC, India CBIC, and UK Trade Tariff. Type your commodity name or code and see all variations + current duty rates by destination country. No registration, no fees.
What penalty do I face if I misclassify?#
Penalties vary by country. US: up to 20% of the entered value. EU: criminal penalties for serious fraud, civil recovery otherwise. India: penalties under Customs Act (up to 100% of duty + prosecution). Most honest mistakes result in re-assessment + interest, not criminal penalties. Always consult broker if unsure.