Oils; petroleum oils and oils obtained from bituminous minerals, crude

HS code 270900 covers the import and export of crude petroleum oils and oils obtained from bituminous minerals. These raw materials are the foundation of the global energy and petrochemical industries, playing a vital role in powering economies worldwide. The trade of crude oils under this code is a key driver of international commerce, with significant implications for geopolitics, economic development, and environmental sustainability.

Crude oils classified under HS 270900 are extracted from underground reservoirs through various techniques, such as conventional drilling, hydraulic fracturing, and offshore platforms. The extracted crude is then transported to refineries where it undergoes distillation and other processes to separate it into various petroleum products, including gasoline, diesel, jet fuel, and petrochemical feedstocks.

The primary inputs for the crude oil industry under HS 270900 are the natural resources themselves, which are found in geological formations around the world. Significant capital investments, advanced drilling equipment, and specialized expertise are also required to locate, extract, and process the crude oil. Additionally, transportation infrastructure, such as pipelines, tankers, and storage facilities, are essential for the global distribution of these vital raw materials.

The crude oils classified under HS 270900 are the primary feedstock for the 271000 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations n.e.c., containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils and 290110 Hydrocarbons, acyclic, saturated industries, which produce a wide range of refined petroleum products and petrochemicals used across the global economy.