⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-EU scraps duty on most Argentina, Indonesia biodiesel - document

Published 2018-03-21, 10:32 a/m
© Reuters.  UPDATE 1-EU scraps duty on most Argentina, Indonesia biodiesel - document
WLIL
-
MOLIm
-

* Duties dropped after EU drops appeal to EU court

* Bunge, Cargill, Wilmar among companies affected

* EU still has anti-subsidy case for Argentina

By Philip Blenkinsop

BRUSSELS, March 21 (Reuters) - The European Union has removed duties on biodiesel imports for 13 Argentine and Indonesian producers following the end of legal proceedings at the European Court of Justice (ECJ), an EU document shows.

The bloc set anti-dumping duties on imports of the renewable fuel from the two countries in 2013, but faced a series of legal challenges at the ECJ and the World Trade Organization. Both bodies have ruled against the measures.

The EU appealed against a Sept 2016 ruling by the ECJ, but dropped that appeal earlier this year. This was registered by the court in February and the parties were notified earlier in March. The Commission's tax database shows the duties removed.

Companies that had challenged the measures at the ECJ now no longer face duties. They include the Argentine arms of Bunge BG.N , Cargill CARG.UL and Louis Dreyfus LOUDR.UL , as well as Molinos Rio de la Plata MOL.BA and Indonesia's Ciliandra Perkasa FISTRC.UL and Indonesian arms of Wilmar WLIL.SI .

They represent the vast bulk of biodiesel exports. Under EU law, importers can also claim back duties paid in the past.

Indonesia said the elimination of duties meant its businesses would be able to export to Europe again. the European Union, the world's top producer of biodiesel, rising shipments from Argentina and Indonesia threaten to cripple output, particularly after the United States imposed import duties of more than 70 percent. countries impose an export duty on the raw material - soybeans for Argentina and palm oil for Indonesia - which the EU said means biodiesel producers in the two countries have lower costs than elsewhere, allowing them to "dump" product at unfairly low prices.

The EU had argued that the biodiesel markets in both countries were heavily regulated, so it needed to construct a "normal value" for the product, including a higher reference price for soybeans or palm oil and a reasonable profit margin.

Argentina and Indonesia called the resultant five-year anti-dumping measures protectionist.

The WTO has also ruled in favour of several challenges by Argentina and Indonesia to the anti-dumping duties. EU has since opened an investigation into whether Argentine biodiesel exporters benefit from unfair subsidies. companies that did not lodge a legal challenge at the ECJ, EU duties would still apply - of 166.95-178.85 euros ($205.08-219.70) per tonne for Indonesia and of 62.52-79.56 euros per tonne for Argentina.

The EU does still apply a general customs duty of 10.9 percent to third countries. ($1 = 0.8141 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.