Tariff Calculation Example: Indonesian Palm Oil Fraction Exports to the European Union

Two Tariff Regimes for One HS Code

Exporters of palm oil fractions (EU HS 1511.90.99.00 -- "Palm oil and its liquid fractions, whether or not refined, but not chemically modified") to the European Union face two different tariff regimes, depending on whether the shipment qualifies for a preferential scheme.

MFN (Most Favoured Nation) tariff -- in effect today

• Rate: 9%
• Legal basis: Base Rate (MFN, 1 Jan 2023)
• In effect since January 1, 2023, with no end date

This is the rate charged if a shipment does not qualify for any preferential scheme -- the general baseline applied to EU trade broadly.

IEU-CEPA preferential tariff -- takes effect January 1, 2027

• Rate: 0%
• Legal basis: IEU-CEPA Tariff Schedule (1 Jan 2027)
• Effective from January 1, 2027 -- not in effect today

Why This Staging Date Matters

This is the detail that is easy to miss: the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) has a staging schedule. For this HS code, the tariff elimination to 0% does not start until 2027 -- shipments made before that date are still subject to the 9% MFN rate, even if they generally meet IEU-CEPA's rules-of-origin requirements.

If an exporter only sees "IEU-CEPA = 0%" without checking the effective date, the common mistake is assuming that saving applies right now -- when in fact, for certain commodities, the tariff reduction phases in on a schedule agreed in the treaty.

How GetRegNex Surfaces This

Compliance Wizard shows both rates side by side -- the 9% MFN rate as today's applicable baseline, and the 0% preferential rate flagged with its 2027 effective date -- so shipping decisions are not made on the assumption of a rate that is not in force yet.