How to Export Castor Oil to China

Step-by-Step Export Process

Step 1: Find an Indian Castor Oil Supplier

Gujarat is the epicenter of Indian castor oil production, with major crushing and refining operations concentrated in Ahmedabad, Mehsana, Junagadh, and Bhavnagar districts. India produces several grades: Commercial Castor Oil (first special grade, FSG), British Standard (BS) grade, and various hydrogenated and dehydrated derivatives. For Chinese industrial buyers, Commercial or FSG grade is most common. Look for suppliers with: minimum crushing capacity of 50 MT/day, modern solvent extraction and refining facilities, ISO 9001 certification, and established export experience to China. Origin Direct works with leading castor oil mills and refineries across Gujarat, providing quality-verified product at competitive prices.

Step 2: Request Samples and Verify Quality

Key specifications for castor oil:

• Acid value - Max 1.0 mg KOH/g for FSG, max 3.0 for commercial grade.
• Hydroxyl value - 160-168 mg KOH/g (indicates ricinoleic acid content, the key functional component).
• Moisture - Max 0.25% for commercial, max 0.1% for FSG.
• Color (Gardner) - Max 3 for FSG, max 5 for commercial. Lower is better.
• Iodine value - 82-90 (measures unsaturation).
• Saponification value - 176-187 mg KOH/g.
• Specific gravity - 0.957-0.968 at 25 degrees Celsius.
• Unsaponifiable matter - Max 0.5%.
• Ricinoleic acid content - Min 85% (the defining characteristic of castor oil).

Step 3: Agree on Commercial Terms

Castor oil pricing follows the Solvent Extractors' Association of India (SEA) benchmark and international spot markets. Pricing is per MT, typically FOB Kandla/Mundra or CIF Chinese port. Payment: L/C at sight is standard for India-China trade. T/T with 20-30% advance also common. Contracts specify: grade (commercial/FSG/BS), quantity (minimum 1 flexitank or 20 MT for drums), packaging (flexitank, ISO tank, or 190 kg steel drums), and delivery window. Castor oil prices are volatile, influenced by Indian crop conditions and Chinese demand. Consider forward contracts for price stability.

Step 4: Supplier Prepares Documentation

• Certificate of Analysis (COA) - Comprehensive lab report covering all specifications.
• Certificate of Origin - For customs clearance and potential preferential treatment under India-China trade arrangements.
• Commercial Invoice and Packing List
• Bill of Lading
• MSDS (Material Safety Data Sheet) - Castor oil is non-hazardous but MSDS is still required.
• Weight Certificate - From independent surveyor.
• Phytosanitary Certificate - May be required by Chinese customs for vegetable oils.
• GACC Registration - Since 2022, China's General Administration of Customs (GACC) requires foreign food/agricultural product exporters to be registered. For castor oil used in food/cosmetics applications, the Indian exporter may need GACC registration. For industrial-only use, this may not apply.

Step 5: Arrange Shipping

Castor oil ships in three formats: flexitanks (20-24 MT in a 20ft container, most cost-effective), ISO tanks (26 MT, reusable, preferred for regular shipments), or 190 kg steel drums (approximately 16 MT per 20ft container, more expensive but easier to handle). Loading ports: Kandla Port and Mundra Port (both in Gujarat, the main castor oil export hubs), Pipavav Port. Chinese destination ports: Shanghai (the main castor oil receiving port), Qingdao (for Shandong-based buyers), Tianjin (for North China), Guangzhou/Nansha (for South China). Transit: Kandla/Mundra to Shanghai 14-16 days, to Qingdao 16-18 days, to Tianjin 17-19 days.

Step 6: Clear Chinese Customs

• Customs Declaration - Filed electronically through China's Single Window platform by a licensed customs broker.
• CIQ Inspection - China Inspection and Quarantine (now part of GACC) may inspect castor oil shipments for quality, safety, and compliance. For industrial-grade castor oil, the inspection is typically documentation-based.
• Import Duty - Castor oil (HS 1515.30.00): MFN duty rate is 9% for crude castor oil, 9% for refined. Under the APTA (Asia-Pacific Trade Agreement), India-origin castor oil may qualify for a reduced rate. Check current APTA concessions.
• VAT - 13% Chinese VAT on the customs value plus duty.
• Consumption Tax - Not applicable to castor oil.
• GACC Registration Check - If the product is classified under food/cosmetics use, customs will verify the exporter's GACC registration.

Step 7: Deliver to Buyer

After customs clearance, arrange transport to the buyer's factory or storage facility. For flexitank shipments, the buyer needs a pump-out facility. For ISO tanks, the tank is delivered to the factory and returned empty. For drum shipments, standard trucking works. Chinese buyers typically re-test the castor oil on arrival for key parameters (acid value, color, moisture). Provide your COA for comparison.

Key Documents Required

• Certificate of Analysis
• Certificate of Origin
• Commercial Invoice and Packing List
• Bill of Lading
• MSDS
• Weight Certificate
• Phytosanitary Certificate (if required)
• GACC Registration (for food/cosmetic grade)

HS Codes and Duty Rates

• 1515.30.10 - Castor oil, crude. Chinese MFN: 9%. APTA preferential rate may apply.
• 1515.30.90 - Castor oil, refined. Chinese MFN: 9%.
• 3823.13.00 - Industrial fatty acids from castor oil. Chinese MFN: 6.5%.
• 1516.20.90 - Hydrogenated castor oil. Chinese MFN: 9%.

For the full HS code reference, see our HS Code Directory.

Common Pitfalls to Watch Out For

• Price volatility - Castor oil prices can swing 30-40% in a year based on Indian crop conditions (monsoon, pest damage) and Chinese demand. Lock in prices with forward contracts when possible.
• Flexitank leaks - Flexitanks are cost-effective but prone to leaks if not properly installed. Use reputable flexitank brands and insist on installation by trained personnel. Inspect the container floor and walls before loading.
• Quality degradation - Castor oil quality (acid value, color) can deteriorate with improper storage. Ensure the oil is stored in clean, dry steel tanks before loading and that containers/drums are clean.
• GACC registration confusion - The scope of GACC registration requirements is still evolving. For purely industrial castor oil, registration may not be needed. For cosmetic or food-grade, it likely is. Verify with your Chinese buyer's customs broker.
• Adulteration - Some lower-quality suppliers mix castor oil with cheaper oils (soybean, palm). Chinese buyers test for fatty acid profiles. Adulterated product will be detected and rejected.
• Payment delays - Some Chinese buyers have longer payment cycles. Protect yourself with L/C at sight rather than open terms.

How Origin Direct Makes This Easy

Origin Direct works with established castor oil mills and refineries across Gujarat, India's castor oil heartland. We source FSG, commercial, and BS-grade castor oil with full lab analysis and quality verification. Our team coordinates flexitank, ISO tank, and drum shipments from Kandla and Mundra ports to major Chinese ports. We handle export documentation, coordinate with Chinese customs brokers, and provide end-to-end logistics management. For Chinese industrial buyers, we offer consistent supply at competitive prices with full traceability back to the Indian mill.