NCS/ARS/CL/10213

THE TARIFF CLASSIFICATION OF MACHINERY AND EQUIPMENT FOR EDIBLE OIL REFINERY MACHINE 

You have applied for the tariff classification of 1 Set of a 1,000 TPD Edible Oil Refinery Machine for Palm Oil and Dry Fractionation in CKD/SKD condition.

PRODUCT ANALYSIS
According to the attached invoice and supporting documents, this machine is a comprehensive assembly of equipment designed for the extraction, refining and fractionation of palm oil in an edible oil palm refinery.
The machinery includes components such as heat exchangers, mixers, pumps, filtration units, crystallizers and fractionation tanks, all constructed from materials like stainless steel to withstand the processing condition.

The refinery operates through several key processes which includes;

1. Degumming: It is the removal of phospholipids using water or acid treatment.
2. Neutralization: It is the alkaline treatment to eliminate free fatty acids.
3. Bleaching: It is the absorption of pigments and impurities using bleaching earth.
4. Deodorization: It is the steam distillation under vacuum to remove volatile compounds.
5. Dry Fractionation: It is the separation of palm oil into olein and stearin through controlled cooling and filtration.

TARIFF CLASSIFICATION
In accordance with Note 4 to Section XVI, all equipment stated in the attached annex are separate components combined together to perform a particular function. Therefore, they will be best classified on the principle of functionality. Hence this machine will be classified in tariff Heading 8479 - "Machines and mechanical appliances having individual functions, not specified or included elsewhere …” and subheading 8479.20.

Based on the above, Machinery and Equipment for Edible Oil Refinery Machine are effectively classified under HS code 8479.20.00.00 - “Machinery for the extraction or preparation of animal or fixed vegetable or microbial fats or oils”, with 5% duty rate and 0% VAT in the ECOWAS CET 2022 - 2027.

 LEGAL FRAMEWORK 

GIR 1 and 6.