Platts clarifies CN code standards for European LSFO

In light of the recent reclassification of certain European Union Combined Nomenclature (CN) codes, S&P Global Platts would like to remind market participants that it continues to reflect the CN Code 2707 9999 in its European low sulfur fuel oil assessments.

Platts does however understand that low sulfur fuel oil which was previously classified under CN Code 2710 1964, is now classified under CN Codes 2710 1966 and 2710 1967.

In instances where a seller intends to deliver a fuel with a CN code other than 2707 9999, the seller must specify this CN code in the terms of any offer provided for publication. Buyers providing bids for publication by Platts must be willing to accept fuel with the CN code 2707 9999.

Platts publishes bids in which the buyer specifies that they will also accept CN code 2710 1966 and 2710 1967 but Platts does not publish bids for fuel with a CN code 2710 1966 or 2710 1967 designation only, as this may be unduly restrictive in nature. In instances where the CN code used has a material effect on LSFO value, Platts may normalize offers of fuel with CN codes 2710 1966 or 2710 1967.

CN codes, which are designated by and subject to the approval of customs authorities within each EU member country, are an important component of settling tariffs and taxes for products including LSFO within the EU. LSFO of identical specification may be classified using either of two, existing CN codes. The choice of code may vary between customs authorities in Europe, and the choice may affect LSFO merchantability.

Platts will continue to monitor LSFO activity and flows under these codes.

Please send feedback and comments to europe_products@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by S&P Global Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.