MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES

Chapter 27 of the EU Customs Tariff is one of the most important chapters in terms of the value of international trade. It covers mineral fuels, mineral oils and products of their distillation, bituminous substances and mineral waxes. In particular, it classifies: hard coal, briquettes and similar solid fuels, brown coal (lignite), coke and semi-coke, coal gas, natural gas and other gaseous hydrocarbons, petroleum oils and oils obtained from bituminous minerals (including petrol, diesel, kerosene, fuel oils), liquefied petroleum gas (LPG), petroleum jelly, paraffin wax, microcrystalline wax, ozokerite, montan wax, asphalt, bitumen and tar. This chapter is crucial for the import and export of energy carriers. Petroleum products constitute the largest commodity group, covering both motor fuels and raw materials for the petrochemical industry. Natural gas in liquefied (LNG) and compressed (CNG) form is also classified in this chapter. Electrical energy, although not a mineral fuel, is likewise covered by Chapter 27 under heading 2716. Correct classification of goods in this chapter requires knowledge of the physicochemical parameters of the products, such as density, distillation temperature, sulphur content and fractional composition.

Customs duty rates in Chapter 27 vary depending on the type of product. Crude petroleum oil is exempt from duty, while refined products are subject to rates from 0% to 4.7%. Hard coal and brown coal are subject to a zero duty rate. Natural gas in most cases is also exempt from duty. However, the key cost element in the import of fuels into Poland is excise duty and the fuel surcharge, which significantly exceed the customs duty itself. In addition, the import of fuels is subject to strict supervision, mandatory registration in the SENT system and licensing requirements under energy law.

Classification in Chapter 27 requires particular precision due to the multitude of petroleum products with similar properties. The key parameters are density at 15°C, fractional composition (distillation temperature), sulphur content and the intended use of the product. Motor fuels, heating fuels and petrochemical raw materials may have a similar composition but are classified under different CN headings. It is essential to distinguish between crude oils (heading 2709) and refined products (heading 2710). For tax purposes, fuels have additional CN designations that determine the level of excise duty.