ePURE files complaint over circumvention of anti-dumping duties

By ePURE | January 30, 2014

The European Renewable Ethanol Association (ePURE) has filed a complaint with the European Commission's office of complaints with a view to stopping the circumvention of EU anti-dumping duties on fuel ethanol.

Following the European Union's imposition of anti-dumping duties on imported US fuel ethanol in February 2013, a new pattern of trade from the U.S. to Europe has developed. US exporters are now exporting substantial volumes of fuel ethanol to Norway - Norwegian imports from the U.S. have multiplied by 10 times in just one year.

As a consequence of this new pattern of trade, Norway has now become one of the top export destinations of US fuel ethanol – U.S. exports to Norway now reach the same level as U.S. exports to Brazil.

In parallel, fuel ethanol exports from Norway to the EU have also increased substantially, mainly in the form of fuel ethanol/gasoline blends (E48). These imports are made at price levels that are significantly undercutting the price of EU fuel ethanol: such price levels indicate that dumping is still occurring. As a result, the EU fuel ethanol industry is still being injured by cheap fuel ethanol imports from the U.S.

This new pattern of trade, which started immediately after the imposition of the EU duties on U.S. fuel ethanol imports, is the sign of a circumvention practice, which has no other economic justification than the avoidance of the EU anti-dumping duties. Such unfair practices are expressly addressed by European anti-dumping rules, which contemplate the extension of anti-dumping duties to imports from third countries, whenever there is evidence that circumvention is taking place with the sole aim of fraudulently concealing the true origin of a product.

By filing an anti-circumvention complaint, ePURE is providing clear evidence to the European Commission that U.S. exporters are engaged in circumvention of the EU duties. ePURE is also requesting the European Commission to put an end to these unacceptable trade practices which not only harm the EU industry, but also represent millions of euros of lost revenues for the EU budget.

"ePURE is strongly committed to ensuring that EU duties are not undermined by unfair and artificial trade practices. We are urging EU authorities to extend the scope of the established trade measures in order to stop this circumvention and prevent any further injury to European fuel ethanol producers by circumvented US fuel ethanol.” said Rob Vierhout, secretary general of ePURE.