As many scientists continue to unveil the health benefits of coconut oil and with the current shift to natural and organic way of life especially in the United States, demand for coconut oil has only known one direction, which is “up.” The coconut oil industry in the United States is currently experiencing a “boom” similar to those experienced by other coconut oil-producing countries around the world. As demand for locally produced coconut oil products rises, production levels rise, and prices fall. The upside for consumers is that this natural product has become more affordable, with more products available at more affordable prices.

In the United States, 72% of the people consider coconut oil as healthy food, of which 37% are nutrition experts. With the current perception of many Americans and with the emergence of MCT oil produced from coconut oil, the demand for coconut oil has only continued to increase in the United States, and to meet this demand, more has to be produced or imported.

The United States is currently the leading importer of coconut oil in the world. The United States currently controls about 28% share of the global import of coconut oil and imports over 265 thousand tons of coconut oil with a market value of over $368 million USD. These facts are based on the importation of refined coconut oil and its fractions, whether or not refined but not chemically modified and excluding crude coconut oil.

What Industries Use Coconut Oil?

Coconut oil is widely used in the food industry, cosmetics, pharmaceutical,s and even for industrial uses. In the food industry, coconut oil is used as flavor for ice cream, baking, processed foods, infant formulae, salad dressing, and as a cooking oil (1).

In the cosmetic industry, coconut oil is largely used as a carrier oil to dilute essential oils, as a raw material in the production of soaps, and also in the production of hair oils, skin products, shampoo, lip balms, lipsticks, and even powders. Coconut oil is known to protect the skin from UV rays (2), protect the skin from conditions like eczema(3)(4), help moisturize the skin, and also protects the hair from damage (5)

In the Pharmaceutical industry, coconut oil is widely used in the production of medications. Recent studies have unveiled a wide range of benefits of coconut oil related to heart health, enhance our brain functionality (6), helps with bone health (7)(8), and improve our dental health (9)(10).

Coconut oil is also used for industrial purposes as a medium in the varnish and paint industry (11). Also, it is used in the production of synthetic rubbers and glycerine (12).

What you need to know about importing coconut oil into the United States;

To Import food products into the United States, you are required to go through the requirements put in place by the FDA and CBP. Without complying with the regulations set by the FDA, your shipment can be returned or confiscated.

It is very important to consider importing your coconut oil from an FDA-approved region. However, many exporters of food products into the United States have taken the liberty to apply for FDA registrations and approval. This does not imply your shipment will not be inspected upon arrival in the US, it will only make the process easy.

The main requirements you may need to present when importing coconut oil into the United States are;

– Certificate of origin

– A food facility registration

– Prior notice of the shipment in transit

– The Foreign Supplier Verification Programs (FSVP)

Key FDA Requirements for Importing Coconut Oil and Food Products in General

The FDA is mostly concerned about sanitation, safety, and labeling of the products. It is important to pay attention to your packing and packaging because if any of the FDA requirements are not met, your shipment can be delayed or even returned or rejected.

The labeling of the product must contain a best-used date, shelf life, product origin, manufacturer, and if the product can cause any allergies, it must be stated.

The very first thing to do is to make sure your supplier or exporter is located in an area approved by the FDA. As mentioned earlier, many companies exporting to the United States have secured FDA certificates as it can help to facilitate the import process.

Sanitary documents should be presented to the FDA to show the oil is safe to use. The labeling can also show the sanitary certifications held by the manufacturer.

Requirements of the Custom and Border Protection (CBP)

Also, it is important to meet the CBP requirements. Coconut oil is obtained from an agricultural crop, with this, the shipment must be certified. The main focus of the CBP is to make sure the coconut oil imported must meet the standards of coconut oil in the United States or even better. Products with lacking standards can’t be allowed to enter the United States.

The CBP is also concerned about duties and fees. The CBP makes sure customs duties and fees are rightly assigned and paid at the port of entry. It is important to note that the CBP has jurisdiction over every port in the United States.

Before the coconut oil departs the country of origin, it is important to present to the CBP a copy of the bill of lading from the shipper or carrier. Also, an electronic declaration must be done with details of the shipment and the expected time the shipment will be arriving at the US borders. As the shipment makes its way to the US, the CBP can still decide if the shipment requires additional verification upon arrival. With any misinterpretations or declarations, the shipment can be rejected.

Once the coconut oil shipment is approved to enter the US, a notification will be sent to the importer. The importer will be required to file a formal request for custom release within 15 days. Customs brokers can be hired to facilitate the release process. Customs brokers are licensed through CBP and are professionals. Once all is set and done the importer will be required to submit an entry summary for consumption within 7-10 days and make all payments for the duties and tariffs.

Once the duties and tariffs are paid, the coconut oil shipment can be released and picked up at a prearranged location with the CBP. Once the shipment has been received, the CBP will undertake further assessment, review the tariff, duties, and the value of the coconut oil. After liquidation, the amount of the tariff and duties will be posted. If any tariffs or duties are not paid the importer will be billed through their custom bonds on file.

Customs Bonds, What Are They?

A customs bond is a contract between CBP, a broker, and the importer which places the importer in good standing to meet and comply with CBP at all stages of the customs clearance process. If any taxes, fines, penalties, and duties are not paid, they will be charged through the customs bond.

Customs bonds are required for shipments that are above $2,500 USD and if the shipment requires the approval of other US government agencies like the FDA.

Import Tariffs and Duties for Coconut Oil

Import duties and tariffs are simply taxes or fees levied on the importation of goods from another country. Tariffs can differ between countries which may depend on the trade relations between the two countries. As mentioned earlier, the CBP ensures all these tariffs and duties are met during the customs clearing process. Tariffs and duties can also be determined by the value of the shipment and calculated on the approved percentage for the country the coconut oil is coming from.

It should be noted that import duties can also vary between quality standards like for example, organic, extra virgin, and virgin coconut oil. It is important to check with every country you are importing from on what the tariffs and duties will look like. For the United States, the average tariff has been 0%, but you will need to check with specific countries as this might not apply to all countries.

The Largest Exporter of Coconut Oil into the United States.

The largest exporter of coconut oil to the United States is the Philippines. The Philippines is the third-largest exporter of coconut oil in the world and holds a 59.4% share of US imports of coconut oil. The Philippines exported over 154 thousand tons of coconut oil to the United States as of 2020 with a market value of over $219 million USD.

Other countries that export coconut oil to the US with market share are Indonesia (21.7%), Malaysia (8.1%), Vietnam (4.3%), Sri Lanka (3.9%), and Singapore (0.8%). You can learn more from the list below.

Top 10 Exporters of Coconut Oil Into the United Staes

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The above analysis is based on the importation of refined coconut oil and its fractions, whether or not refined but not chemically modified and excluding crude coconut oil.

Things to consider when Importing Coconut oil Into the United States.

First things first, it is very important to understand the process and requirements with customs and the FDA. You must follow every required process to avoid the shipment being rejected or returned.

We highly recommend you work with a qualified customs broker. Customs brokers are well knowledgable about the custom clearing process and can help you in providing excellent guidance during the customs clearing process.

Also, it is very important to import your coconut oil from FDA-approved regions or work with FDA-registered suppliers. This can really help in facilitating the customs clearance process.

Also, it is very important to make sure the coconut oil you are importing is of high standards and quality. Remember, the CBP will make sure the quality of the oil is of US standards before it can be approved to enter the US. By all means, avoid counterfeits or chemically modified oils.

It is also important to make sure the coconut oil is properly labeled and packed. The oil must be safe to use and of a good quality standard.

Also, you can work with us if you need help importing coconut oil into the United States. As a reputable export management company, we can make sure the best is all you will get. Contact us now.