Crude Oil Imports to the USA: HS 2709 Duty & Landed Cost
Crude petroleum HS code 2709. USA tariff rates, HTS codes, import duty, API gravity specs, landed cost example. Free calculator for all-in import cost.
Importing Crude Oil to USA: Tariff, Duty & Compliance Guide
Crude petroleum (HS 2709) enters the USA with a 0% import duty (nil tariff). However, landed cost includes ocean freight, marine insurance, port fees, and inland transport. This guide covers USA crude oil tariff rates, quality specs (API gravity, sulfur content), landed cost calculation, and customs procedures via US Customs & Border Protection (CBP).
- HS Code / HTS: 2709.00 (crude petroleum, all grades)
- US Import Duty: 0% (nil tariff for crude)
- Applicable Tax: No federal VAT/GST (USA uses state sales tax for refined products, not crude)
- Quality Standard: API gravity (degrees), sulfur % (content), estimated per blend/grade
- Major US Ports: Corpus Christi (TX), Houston (TX), Lake Charles (LA), Beaumont (TX)
- Typical Landed Cost: CIF USD 75–95/barrel (depends on Brent/WTI benchmark + ocean freight + port fees)
HS Code Breakdown: 2709 Crude Petroleum
Crude petroleum is classified under HS 2709 with minimal sub-division at the 6-digit level. The US HTS extends to 10 digits but does not create significant duty variance-the same 0% duty applies to all crude grades. Classification post-import typically depends on quality testing (API gravity, sulfur content).
| Grade | HS / HTS Code | US Duty | Typical Use |
|---|---|---|---|
| Light Sweet Crude | 2709.00 | 0% | Refining, premium gasoline/diesel |
| Brent Blend (North Sea) | 2709.00 | 0% | Reference benchmark, refining |
| WTI (West Texas Intermediate) | 2709.00 | 0% | US benchmark, light refining |
| Heavy Sour Crude | 2709.00 | 0% | Heavy refining (specialized units) |
All crude oil grades: 0% US import duty. Landed cost is driven by ocean freight, not tariff. Price varies by benchmark (Brent vs WTI) and quality premium/discount (API gravity, sulfur spread).
Calculating Landed Cost: Crude Oil Import to USA
Numerical Example: Real Example: 500,000 Barrels Brent Crude CIF Houston
Breakdown: CIF USD 42.5M (0% duty) + Port/Broker USD 355k. Final per-barrel cost depends on Brent benchmark at delivery, ocean freight, and port congestion. Use Landed Cost Calculator for multi-destination scenarios (TX, LA, CA ports have different fees).
Quality Specifications: Crude Oil API Gravity & Sulfur
Crude oil quality is measured by API gravity (density) and sulfur content. These determine refining suitability and price premium/discount:
| Grade | API Gravity (°) | Sulfur Content (%) | Classification |
|---|---|---|---|
| Brent (North Sea) | 38–39° | 0.37–0.40% | Light Sweet (premium) |
| WTI (Texas) | 39–41° | 0.20–0.30% | Light Sweet (reference) |
| Urals (Russia) | 31–32° | 1.2–1.6% | Medium Sour (discount) |
| Maya (Mexico) | 20–22° | 3.3–3.5% | Heavy Sour (heavy discount) |
Price Spreads: Brent and WTI are closely linked (spread ~USD 2–3/barrel). Heavy crude (Maya) trades at 10–15% discount to WTI due to refining complexity. Sulfur content is environmental; high-sulfur crude requires desulfurization (higher processing cost).
Compliance Checklist: Crude Oil Import to USA
- HTS Classification: Confirm HTS 2709.00.10 or similar with CBP. All crude enters at 0% duty.
- Tank Vessel Bill of Lading: Ensure B/L lists commodity as "crude petroleum," grade/blend (Brent, WTI, etc.), volume in barrels, and quality specs (API gravity, sulfur %).
- Invoice: Include CIF value, benchmark price (Brent/WTI), API gravity, sulfur %, and seller details per CBP Entry Invoice requirements.
- CBP Entry Filing: Customs broker files Entry/Immediate Delivery (Entry 03) for crude. Requires Invoice, B/L, and CBP 3461 form.
- Port of Entry: Major US crude ports: Corpus Christi, Houston, Lake Charles (Louisiana), Beaumont (Texas). Use major terminals for fast clearance.
- Discharge Survey: Independent surveyor measures tank levels pre/post discharge via draft survey or tank gauging per ISO 4136 (draft survey standard).
- Quality Certificate: Pre-loading tests (API gravity, sulfur %, water %) provided by exporting terminal. US refiner typically re-tests upon receipt.
- Customs Examination: CBP typically releases crude without physical exam (routine entry). 1–2 days for clearance.
- Maritime Security (ISPS Code): Vessel must comply with International Ship and Port Facility Security Code (ISPS). Port security clearance required before berthing.
- Environmental Compliance: All crude imports comply with US EPA standards (no restriction on sulfur % for crude; refiners handle desulfurization).
Major US Crude Ports & Port Fees
| Port | State | Refinery Access | Demurrage Rate | Typical Speed |
|---|---|---|---|---|
| Corpus Christi | Texas | Excellent (multiple refineries) | USD 50,000–100,000/day | Fast (high volume) |
| Houston (Bayport, Pasadena) | Texas | Excellent (major hub) | USD 60,000–120,000/day | Medium (busy) |
| Lake Charles | Louisiana | Good (regional refineries) | USD 40,000–80,000/day | Moderate |
| Long Beach / Los Angeles | California | Limited (west coast refineries) | USD 80,000–150,000/day | Slow (container port, not crude-specialized) |
Recommendation: Corpus Christi and Houston are best for crude import speed and cost. Lake Charles is cheaper but may have longer queues. Avoid Los Angeles for crude (designed for containers, not tankers).
Frequently Asked Questions
Q: What is the US import duty on crude oil?
A: 0% (nil tariff). Crude petroleum (HTS 2709.00) enters the USA duty-free. Refined products (gasoline, diesel) have different tariffs; crude has zero.
Q: How much does ocean freight cost for crude to USA?
A: Varies widely: Middle East → US Gulf: USD 2–4/barrel. North Sea → US Gulf: USD 3–6/barrel. Depends on tanker availability, fuel prices, geopolitics. Check tanker brokers (Clarkson, Maersk Tankers) for current rates.
Q: Can I import crude oil from any country to the USA?
A: No restrictions per WTO/trade law. However, US sanctions on Iran, Venezuela, Syria preclude crude from those countries. Check US Treasury OFAC sanctions list before contracting.
Q: What is API gravity and why does it matter?
A: API gravity (American Petroleum Institute) measures crude density: higher API = lighter crude (easier refining, higher price). Light sweet crude (WTI ~40 API, 0.3% sulfur) is premium; heavy sour (Maya ~21 API, 3.5% sulfur) is discounted. Every 1° API difference ≈ USD 0.5–1/barrel price spread.
This guide is for trade education. Always verify current tariff rates and US sanctions lists with CBP before importing. Crude oil pricing is volatile; use your refiner's risk management and futures hedging to lock in prices.