14 May 2013 14:48 [Source: ICIS news]
ePURE said it has evidence from several sources which suggest blends of 92% ethanol and 8% gasoline originating in the US and destined for the EU are being classed as a chemical instead of denatured ethanol – resulting in “unfair market situations and circumvention of import duties”.
In March 2012 the Commission introduced a regulation whereby blends of up to 70% ethanol and 30% gasoline were reclassified as denatured ethanol, instead of being classified as a chemical.
Denatured ethanol is subject to a standard import duty of €102/cbm ($133/cbm), whereas product classed as a chemical is subject to a tax of 6.5% ad valorem.
The industry body questioned whether the volumes in question carry the anti-dumping duty introduced to imports of ethanol from the US earlier this year, emphasising that circumvention of duties has a detrimental effect on European producers.
"Neither do we understand why EU companies want to import US ethanol, knowing that the greenhouse gas emission saving is much lower than the savings realised by EU produced ethanol, which can be as high as 90%," said Rob Vierhout, secretary general of ePURE.
The industry body said any evidence of unfair practices must be investigated, and that if EU regulations are not being implemented correctly an infringement procedure will be launched by the Commission.
($1 = €0.77)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections