EU extends, expands antidumping, countervailing measures

By Erin Voegele | May 11, 2011

On May 5 the Council of the European Union adopted regulations to extend the antidumping and countervailing duties that currently apply to imports of biodiesel originating in the U.S. to imports of biodiesel consigned from Canada. The antidumping and countervailing duties have also been extended to apply to imports of biodiesel blends of fuel containing 20 percent or less biodiesel by weight that originates from the U.S. In addition, the adopted regulations terminate the EU’s investigation regarding biodiesel imports consigned from Singapore.

According to information posted to the Europa website, the definitive antidumping duty ranges from €0 to €198 per metric ton of biodiesel imported from the U.S. The countervailing duty ranges from €211,2 to €237 per metric ton.

Documentation sourced from Europa further states that the European Commission received a request from the European Biodiesel Board in June 2010 to investigate the possible circumvention of antidumping measures that had been established. The request alleged that U.S. biodiesel-blended fuel containing 20 percent or less biodiesel was being exported to Europe via Canada and Singapore. The request also alleged that a significant change in pattern of trade involving biodiesel exports from the U.S., Canada and Singapore had taken place since the duties and had been established, and that the remedial effects of the existing antidumping measure on the product concerned were be undermined in terms of quality and price.

To complete its investigation, questionnaires were sent to biodiesel producers and exporters in the U.S., Canada and Singapore. According to information posted to the Europa website, interested parties were given the opportunity to make their views known in writing and to request a hearing. Those responding to the questionnaire included two Canadian companies, two companies based in Singapore, and three U.S. companies.

The investigation concluded that U.S. biodiesel did flow through Canada to Europe, effectively circumventing the required duties. This was not found to be true in Singapore, and that portion of the investigation was terminated.

The EBB issued a statement in support of the EU’s actions on May 9. According to the EBB, the council has adopted two anticircumvention measures as a result of the investigation. First, the definitive antidumping and countervailing duties have been retroactively extended to apply to biodiesel consigned from Canada since Aug. 13, 2010. The maximum combined duty for antidumping and countervailing in this case will be €409,2 per metric ton. Second, the council has retroactively extended the definitive antidumping and countervailing duties to all imports of U.S. biodiesel below the 20 percent threshold since Aug. 13, 2010. For U.S. companies already investigated in 2009 the combined per-company duties will apply, ranging from €213,8 to €409,2 per ton. Other U.S. companies will be subject to the highest combined duty in proportion to the biodiesel content in the blend.

“The anticircumvention measures adopted by the council represent a decisive move to ensure that the remedial effect of the EU duties on U.S. biodiesel is fully maintained over time,” said EBB Secretary General Raffaello Garofalo. “Operators should be aware that any future attempt to circumvent the existing duties can be investigated and remedied in the same way, with retroactive financial implications for the companies involved.”

Additional information on the investigation and the council’s findings can be accessed on the Europa website. http://register.consilium.europa.eu/pdf/en/11/st08/st08913.en11.pdf

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