HS Code:
Palm kernel oil and babassu oil, classified under HS Code 1513, are vegetable oils derived from the kernel of the oil palm fruit and the seeds of the babassu palm, respectively. These oils and their fractions, whether or not refined, are widely used in the food industry (for margarine, shortening, and confectionery), cosmetics, and as raw materials for biodiesel production. They are valued for their high lauric acid content, which provides unique functional properties in various applications. Global trade in this category is driven by demand for sustainable and versatile vegetable oils, particularly in developing and industrialized economies.
Total Trade Volume
Approximately 8.5 million metric tons
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
4.2 million metric tons
49.4% of total trade of total trade
Increasing
2.8 million metric tons
32.9% of total trade of total trade
Stable
0.5 million metric tons
5.9% of total trade of total trade
Increasing
0.3 million metric tons
3.5% of total trade of total trade
Stable
0.2 million metric tons
2.4% of total trade of total trade
Decreasing
Average Rate
5-10% ad valorem
Highest Rate
Up to 30% in certain protected markets (e.g., India)
Lowest Rate
0% under free trade agreements (e.g., ASEAN Free Trade Area)
Rising demand for sustainable palm kernel oil
Increased adoption of Roundtable on Sustainable Palm Oil (RSPO) certification by producers and buyers, influencing trade patterns toward certified suppliers
2020-2022
Growing use in biodiesel production
Diversification of demand beyond food and cosmetics, especially in Europe, driving export growth from Southeast Asia
2021-2023
Shift toward babassu oil as an alternative
Niche markets in cosmetics and organic products are boosting babassu oil trade, particularly from Brazil
2019-2022
Indonesia revised its export levy structure for palm kernel oil to promote downstream processing, impacting global supply chains.
July 2022
Temporary reduction in export volumes but potential long-term increase in value-added product exports.
The European Union introduced regulations requiring deforestation-free supply chains for palm oil products, including palm kernel oil.
December 2022
Increased compliance costs for exporters and potential market access barriers for non-certified producers.
Brazil launched a program to promote sustainable harvesting of babassu nuts, supporting local communities and boosting export potential.
March 2023
Enhanced market positioning for Brazilian babassu oil in premium and organic segments.