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.
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) |
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% |
Numerical Example: 50,000 MT Indonesian sub-bituminous 4,200 GAR, FOB Kalimantan USD 55/MT, CFR Mundra India
50,000 MT Indonesian sub-bituminous 4,200 GAR, FOB Kalimantan USD 55/MT, CFR Mundra India. Run your own numbers in the Import Duty & Tax calculator.
- · 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.
- · Indonesia
- · Australia
- · Russia (sanctioned in EU/UK/US)
- · South Africa
- · Colombia
- · USA
Frequently asked questions
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.
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.
Import duty and tax by destination market
Typical MFN duty, consumption tax and the tax base applied to energy (HS 2701.12) in each market we cover. Rates are indicative at the 6-digit line | confirm the national 8/10-digit code with your broker.
| Market | Duty | Consumption tax | Tax base | Tax as % of CIF |
|---|---|---|---|---|
| India | 5% | IGST 18% | Assessable value + duty | 24.1% |
| United Arab Emirates | 0% | VAT 5% | CIF + duty | 5.0% |
| Saudi Arabia | 0% | VAT 15% | CIF + duty | 15.0% |
| Singapore | 0% | GST 9% | CIF + duty | 9.0% |
| China | 0% | VAT 13% | CIF + duty | 13.0% |
| United States | 0% | Federal VAT 0% | CIF | 0.3% |
| United Kingdom | 0% | VAT 20% | CIF + duty | 20.0% |
| Germany | 0% | USt 19% | CIF + duty | 19.0% |
| Netherlands | 0% | BTW 21% | CIF + duty | 21.0% |
| Vietnam | 0% | VAT 10% | CIF + duty | 10.0% |
| Türkiye | 0% | KDV 20% | CIF + duty | 20.0% |
| Japan | 0% | JCT 10% | CIF + duty | 10.0% |
| South Korea | 0% | VAT 10% | CIF + duty | 10.0% |
| Brazil | 0% | IPI+PIS/COFINS+ICMS 32% | CIF + duty | 32.0% |
| Indonesia | 0% | PPN 11% | CIF + duty | 13.5% |
| Mexico | 0% | IVA 16% | CIF + duty | 16.9% |
| Egypt | 0% | VAT 14% | CIF + duty | 14.0% |
| Nigeria | 0% | VAT 7.5% | CIF + duty | 9.1% |
| South Africa | 0% | VAT 15% | Assessable value + duty | 16.5% |
| Australia | 0% | GST 10% | CIF + duty | 10.0% |
Run your own numbers with the landed cost calculator or check documentation requirements in the LC document checklist.