EBB welcomes probe into Indonesian biodiesel imports – via China and the UK
This was triggered by a European Biodiesel Board (EBB) request in July.
Since the imposition of countervailing duties on biodiesel imports from Indonesia in December 2019, the EBB has had strong indications that subsidised Indonesian palm-oil based biodiesel continues to enter the European Union (EU) market via third countries.
Growing volumes of Indonesian palm-oil based biodiesel appear to be exported to China, and then re-exported towards Europe.
The Chinese island of Hainan, located in the South China Sea, makes an ideal green fuel hot spot for evaders.
In 2022, Hainan, which has no sizeable biodiesel capacity, surprisingly accounted for nearly a third of the 2 to 3 million tonnes of Chinese biodiesel declared for exports to Europe.
The EBB also has evidence that a share of this Chinese export volume of biodiesel from Hainan has further acquired UK origin before reaching its final EU destination.
The investigation will shine a light on operators involved directly or indirectly in any illegal circumvention practices which, if and when proven, would lead to heavy financial penalties for operators, that will be retroactively applied from the launch of this investigation.
EBB president Dickon Posnett said: “The EBB and the European biodiesel industry is very satisfied with the decision and fast action taken by the Commission to defend us against unfair and illegal trade practices.
“We cannot, and will not, allow fraudulent trading, such as circumvention, to go unchallenged.
“The EU industry welcomes and is ready for global competition in its drive to decarbonise transport in a fair and sustainable EU biodiesel market, but a series of fraudulent and unfair practices have severely disrupted the entire EU biodiesel market, causing us huge injury which must be repaired. And this is not the only action we are taking with the industry to address other forms of fraudulent practices.
“Our association remains committed, and is working with the EU Anti-Fraud Office (OLAF), to address fraudulent biodiesel imports into the EU from China, which would also entail heavy financial penalties if fraudulent practices are proven.”