Analysis
HTS 3823.19.20 covers derived from coconut, palm-kernel or palm oil under heading 3823 (industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols).
Within this group the rate runs from 2% to 5.1%. Compared with 3823.70.20 (derived from fatty substances of animal or vegetable origin: oleyl), which pays 5.1%, a misclassification either way moves the duty by 2.8 percentage points.
The general duty rate is 2.3% of the customs value, which is at the low end of the rates in chapter 38 (26th percentile of 179 lines with an ad valorem rate). On a shipment valued at $10,000 that is $230 in duty before any Chapter 99 additions or preference claims.
Goods that qualify under GSP, the Australia FTA, the Bahrain FTA, the Chile FTA, the Colombia TPA, and 12 others can enter duty-free instead of paying 2.3%. It is also eligible under GSP, the developing-country programme, which Congress has to renew; check whether GSP is in force on the entry date.
The column 2 rate, for countries without normal trade relations, is 20%, 8.7 times the general rate.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 3823.11.00 | Industrial monocarboxylic fatty acids; acid oils from refining: stearic acid | 2.1¢/kg + 3.8% |
| 3823.12.00 | Industrial monocarboxylic fatty acids; acid oils from refining: oleic acid | 2.1¢/kg + 3.2% |
| 3823.13.00 | Tall oil fatty acids | 3.2% |
| 3823.19.40 | Other: other | 3.2% |
| 3823.70.20 | Derived from fatty substances of animal or vegetable origin: oleyl | 5.1% |
| 3823.70.40 | Derived from fatty substances of animal or vegetable origin: other | 2% |
| 3823.70.60 | Industrial fatty alcohols: other | 2.4% |