Biox receives exemption from EU tariffs on imported biodiesel

To date just two North American companies are exempt from tariffs implemented by the European Commission on biodiesel imported from Canada and the US. Renewable energy company Biox is the most recent to receive this exemption.

'This exemption ensures that Biox retains unencumbered access to export our product to the EU, which represents the largest existing biodiesel market today,' says Bill Johnson, president and CEO of BIOX. 'This exemption is a result of our full cooperation with the EU's process, including the submission of a formal reply to their questions and a site visit from their officials. Our primary markets will remain the US and Canada. However, as we execute our expansion plans to bring new facilities online, this exemption provides us with the broadest possible market and the appropriate flexibility to execute a comprehensive sales strategy across both the North American and European markets.'

Tariffs, in the form of countervailing duties (CVDs), were originally placed on US biodiesel with a blend higher than 20%. The revised CVD now includes all biodiesel imports from the US, in addition to all imports from Canada higher than B20. It is hoped this will discourage biodiesel originating in the US from being sold through Canada and re-labelled to be 'of Canadian origin', as a way to circumvent the CVDs imposed on US products, into the EU market.

The value of the CVD is €237 per tonne of imported biodiesel.