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EU Ethanol Inustry Awaits Decision in Anti-Dumping Duty
Currently US ethanol has to pay a tariff of EUR151 per m³ of which EUR49 forms the AD duty. The fate of this duty is to be decided upon by the European Court of Justice (ECJ)on February 28, 2019.
Back in late 2011, follwoing a complaint lodged by ePURE (European Producers Union of Renewable Ethanol Association), the European Commission initiated an AD proceeding concerning imports into the EU of bioethanol originating in the US. In early 2012, the Commission notified, Marquis Energy LLC, Patriot Renewable Fuels LLC, Plymouth Energy Company LLC, POET LLC and Platinum Ethanol LLC that they had been selected to be part of the sample of exporting producers in the US. Subsequently, those companies sent the Commission their respective replies to the AD questionnaire and the Commission carried out verification visits at the premises of those companies.
Although, the US still lists EU destinations in its trade matrix but most of that is for re-export to Northern Africa and does not reach the end user markets in the Union. The reason for this is that up until late 2018, the arbitrage between the two blocs was closed.Since then, the extraordinary decline of US corn ethanol prices and the recovery in Europe has made deals possible on paper. Click below for more information about the Ethanol trade between the EU and the US as the possible outcomes in the Anti-Dumping Duty (ADD) case.
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