HS 2701.12Energy

HS Code for Thermal Coal (HS 2701.12)

Thermal coal for power and cement kilns shares HS 2701.12 with coking coal - the differentiation is quality and end-use, not the HS code. Priced on Newcastle NEWC (Australia FOB), API2 (CIF ARA Europe), API4 (FOB Richards Bay South Africa). Calorific value on GAR / NAR / ADB basis is central to the contract.

Reviewed against WCO HS · WTO IDB · National customs schedules3 authoritative sourcesLast reviewed July 2026

Sample 6-digit codes

Code	Description
2701.12	Bituminous coal (covers both thermal and coking sub-categories)
2701.19	Other coal (sub-bituminous, lignite - depending on classification)
2702.10	Lignite, whether or not agglomerated (excluding jet)

Need to check a specific code? Use the free HS code lookup tool.

Typical import duty by market

Market	Duty
European Union	0% Russian origin banned since Aug 2022.
India	2.5% Plus 18% GST; largest thermal-coal import market.
China	0-3% Import quota / duty periodically adjusted for domestic price support.
Japan	0%
South Korea	0%

Worked landed-cost example

50,000 MT Indonesian sub-bituminous 4,200 GAR, FOB Kalimantan USD 55/MT, CFR Mundra India

FOB valueUSD 2,750,000

Freight + insuranceUSD 350,000

CFR/CIF valueUSD 3,100,000

India duty @ 2.5%USD 77,500

IGST @ 18%USD 572,000

Landed cost ≈ USD 3.75m. GAR / NAR conversion and moisture adjustments feed the payable calculation.

Run your own numbers in the import duty & tax calculator.

Regulatory checkpoints

· IMSBC Code Group B - self-heating classification; NOR to master with CO monitoring requirement.
· Global Coal Mine Methane sensitivities - EU Methane Regulation 2024/1787 affects methane-intensive origins from 2027.
· Sulfur limit in bunker fuel (IMO 2020) is separate but affects total delivered CIF cost via freight.
· Russian origin: EU / UK / US bans since 2022.

Top exporting countries

· Indonesia
· Australia
· Russia (sanctioned in EU/UK/US)
· South Africa
· Colombia
· USA

Frequently asked questions

GAR vs NAR vs ADB?

GAR = Gross As Received (includes total moisture). NAR = Net As Received (deducts latent heat of vapourisation). ADB = Air-Dried Basis (only inherent moisture). Same coal quoted in three bases can look 10-20% different in calorific value - always confirm which basis the contract uses.

How is thermal coal priced?

Reference: NEWC (Australia FOB Newcastle 6,000 NAR), API2 (CIF ARA 6,000 NAR), API4 (FOB Richards Bay 6,000 NAR), Indonesian ICI-1 to ICI-5 (Indonesian export prices by calorific band). Physical differentials reflect actual GAR, ash, sulfur, moisture.