COMMISSION IMPLEMENTING REGULATION (EU) 2021/1267
of 29 July 2021
imposing definitive countervailing duties on imports of biodiesel originating in the United States of America following an expiry review pursuant to Article 18 of Regulation (EU) 2016/1037 of the European Parliament and of the Council
1.
PROCEDURE
1.1.
Previous investigations and measures in force
1.2.
Request for an expiry review
2.
INITIATION OF AN EXPIRY REVIEW
2.1.
Review investigation period and period considered
2.2.
Withdrawal of the United Kingdom from the EU
2.3.
Interested parties
2.4.
Sampling
2.5.
Cooperation from the country concerned
2.6.
Questionnaires
2.7.
Verification
2.8.
Disclosure
3.
PRODUCT CONCERNED AND LIKE PRODUCT
3.1.
Product concerned
3.2.
Like product
3.3.
Claims regarding product scope
4.
LIKELIHOOD OF CONTINUATION OR RECURRENCE OF SUBSIDISATION
4.1.
Preliminary remarks
4.2.
Subsidisation – Federal Schemes
4.2.1.
Biodiesel mixture credit and biodiesel credit
4.2.1.1.
Legal basis
4.2.1.2.
Eligibility
4.2.1.3.
Practical implementation
4.2.1.4.
Conclusion
4.2.2.
Small Agri-biodiesel Producer Income Tax Credit
4.2.2.1.
Legal basis
4.2.2.2.
Eligibility
4.2.2.3.
Practical implementation
4.2.2.4.
Conclusion
4.2.3.
The USDA Bioenergy Programme for Advanced Biofuel
4.2.3.1.
Legal basis
4.2.3.2.
Eligibility
4.2.3.3.
Practical implementation
(28)
4.2.3.4.
Conclusion
4.2.4.
Credit for Production of Cellulosic Biofuel
4.2.4.1.
Legal basis
4.2.4.2.
Eligibility
4.2.4.3.
Practical implementation
4.2.4.4.
Conclusion
4.2.5.
The USDA Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Programme
4.2.5.1.
Legal basis
4.2.5.2.
Eligibility
4.2.5.3.
Practical implementation
4.2.5.4.
Conclusion
4.3.
Subsidisation – State Schemes
4.3.1.
The Iowa Biodiesel Producer Tax Refund
4.3.1.1.
Legal basis
4.3.1.2.
Eligibility
4.3.1.3.
Practical implementation
4.3.1.4.
Conclusion
4.3.2.
The Kentucky Biodiesel Production Tax Credit
4.3.2.1.
Legal basis
4.3.2.2.
Eligibility
4.3.2.3.
Practical implementation
4.3.2.4.
Conclusion
4.3.3.
The Texas Fuel Ethanol and Biodiesel Production Incentive Programme
4.3.3.1.
Legal basis
4.3.3.2.
Eligibility
4.3.3.3.
Practical implementation
4.3.3.4.
Conclusion
4.4.
Likelihood of continuation or recurrence of subsidisation
4.4.1.
Likelihood of continuation of subsidisation of the three federal schemes
4.4.2.
Likelihood of continuation of subsidisation of other schemes
4.4.3.
Conclusion on the continuation of subsidisation
4.5.
Likelihood of subsidised imports in significant quantities
4.5.1.
Existing spare capacities at US exporting producers
4.5.2.
Availability of other markets
4.5.3.
Attractiveness of the Union market
Countries of destination |
Export quantities (in tonnes) |
Percentage of exports to all countries |
Average ex-works price (USD) per tonne |
Average ex-works price (EUR) per tonne |
Canada |
354 442 |
91,1 |
805,33 |
728,48 |
China |
12 363 |
3,2 |
316,49 |
286,29 |
Norway |
3 500 |
0,9 |
862,48 |
780,18 |
Peru |
2 144 |
0,6 |
591,72 |
535,26 |
Mexico |
1 204 |
0,3 |
661,23 |
598,13 |
South-Korea |
475 |
0,1 |
363,15 |
328,49 |
Source: GTA |
4.6.
Circumvention and absorption practices
4.7.
Conclusion
5.
INJURY
5.1.
Definition of the Union industry and Union production
5.2.
Union consumption
|
2017 |
2018 |
2019 |
Review Investigation period |
Total Union consumption (tonnes) |
13 843 702 |
15 444 700 |
15 762 282 |
16 955 685 |
Index |
100 |
112 |
114 |
122 |
Source: Union industry data, Comext |
5.3.
Imports of the product concerned from the USA
5.3.1.
Volume and market share of the imports from the country concerned
|
2017 |
2018 |
2019 |
Review Investigation period |
Volume of imports from the country concerned (tonnes) |
176 |
2 339 |
139 |
156 |
Index |
100 |
1 329 |
79 |
89 |
Market share |
0 % |
0 % |
0 % |
0 % |
Average price EUR/tonne |
1 243 |
972 |
1 269 |
1 812 |
Index |
100 |
78 |
102 |
146 |
Source: Comext, EU industry sales data for the calculation of the market share |
5.3.2.
Prices and price undercutting
5.3.3.
Imports from other third countries
Country |
|
2017 |
2018 |
2019 |
Review Investigation period |
Argentina |
Volume (tonnes) |
355 782 |
1 467 325 |
873 325 |
905 781 |
|
Index |
100 |
412 |
245 |
255 |
Market share |
3 % |
10 % |
6 % |
5 % |
|
Average price EUR/tonne |
635 |
620 |
707 |
728 |
|
Index |
100 |
98 |
111 |
115 |
|
Malaysia |
Volume (tonnes) |
335 769 |
388 615 |
731 679 |
679 860 |
|
Index |
100 |
116 |
218 |
202 |
Market share |
2 % |
3 % |
5 % |
4 % |
|
Average price EUR/tonne |
952 |
813 |
669 |
730 |
|
Index |
100 |
85 |
70 |
77 |
|
Indonesia |
Volume (tonnes) |
24 984 |
777 992 |
743 456 |
195 858 |
|
Index |
100 |
3 114 |
2 976 |
784 |
Market share |
0 % |
5 % |
5 % |
1 % |
|
Average price EUR/tonne |
803 |
671 |
636 |
665 |
|
Index |
100 |
84 |
79 |
83 |
|
Other third countries |
Volume (tonnes) |
822 027 |
820 093 |
1 450 938 |
1 983 471 |
|
Index |
100 |
100 |
177 |
241 |
Market share |
6 % |
5 % |
9 % |
12 % |
|
Average price EUR/tonne |
662 |
723 |
829 |
874 |
|
Index |
100 |
109 |
125 |
132 |
|
Total of all third countries except the US |
Volume (tonnes) |
1 538 562 |
3 454 050 |
3 799 448 |
3 765 041 |
|
Index |
100 |
224 |
247 |
245 |
Market share |
11 % |
22 % |
24 % |
22 % |
|
Average price EUR/tonne |
721 |
678 |
732 |
802 |
|
Index |
100 |
94 |
102 |
111 |
|
Source: Comext, EU industry sales data for the calculation of the market share |
5.4.
Economic situation of the Union industry
5.4.1.
General remarks
5.4.2.
Macroeconomic indicators
(45)
5.4.2.1.
Production, production capacity and capacity utilisation
|
2017 |
2018 |
2019 |
Review Investigation period |
Production volume (tonnes) |
12 639 715 |
13 166 083 |
13 931 438 |
13 984 220 |
Index |
100 |
104 |
110 |
111 |
Production capacity (tonnes) |
16 047 231 |
16 707 893 |
16 862 595 |
17 529 047 |
Index |
100 |
104 |
105 |
109 |
Capacity utilisation |
79 % |
79 % |
83 % |
80 % |
Index |
100 |
104 |
105 |
101 |
Source: Information provided by the applicant and the sampled Union producers. |
5.4.2.2.
Sales volume and market share
|
2017 |
2018 |
2019 |
Review Investigation period |
Sales volume on the Union market (tonnes) |
12 305 049 |
11 988 560 |
11 962 754 |
13 190 560 |
Index |
100 |
97 |
97 |
107 |
Market share |
89 % |
78 % |
76 % |
78 % |
Index |
100 |
87 |
85 |
88 |
Source: Information provided by the applicant and the sampled Union producers |
5.4.2.3.
Growth
5.4.2.4.
Employment and productivity
|
2017 |
2018 |
2019 |
Review Investigation period |
Number of employees |
2 643 |
3 126 |
3 527 |
3 909 |
Index |
100 |
118 |
133 |
148 |
Productivity (tonne/employee) |
4 782 |
4 211 |
3 950 |
3 577 |
Index |
100 |
88 |
83 |
75 |
Source: Information provided by the applicant and the sampled Union producers |
5.4.2.5.
Magnitude of the amount of subsidisation and recovery from subsidisation
5.4.3.
Microeconomic indicators
(47)
5.4.3.1.
Prices and factors affecting prices
|
2017 |
2018 |
2019 |
Review Investigation period |
Average unit sales price in the Union on the total market (EUR/tonne) |
834 |
801 |
771 |
771 |
Index |
100 |
96 |
92 |
92 |
Average price of vegetable oils (index) |
100 |
86 |
81 |
86 |
Unit cost of production (EUR/tonne) |
828 |
778 |
760 |
755 |
Index |
100 |
94 |
92 |
91 |
Source: Sampled companies, FAO for the vegetable oil price index |
5.4.3.2.
Labour costs
|
2017 |
2018 |
2019 |
Review Investigation period |
Average labour costs per employee (EUR) |
63 785 |
70 533 |
72 306 |
72 533 |
Index |
100 |
111 |
113 |
114 |
Source: Sampled companies |
5.4.3.3.
Inventories
|
2017 |
2018 |
2019 |
Review Investigation period |
Closing stocks (tonnes) |
99 868 |
126 345 |
124 567 |
114 216 |
Index |
100 |
127 |
125 |
114 |
Closing stocks as a percentage of production |
0,8 % |
1,0 % |
0,9 % |
0,8 % |
Index |
100 |
121 |
113 |
103 |
Source: Sampled companies |
5.4.3.4.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2017 |
2018 |
2019 |
Review Investigation period |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
0,96 % |
2,13 % |
1,78 % |
2,84 % |
Index |
100 |
223 |
186 |
297 |
Cash flow (EUR) |
45 139 254 |
10 723 312 |
54 431 877 |
58 021 678 |
Index |
100 |
24 |
121 |
129 |
Investments (EUR) |
40 430 425 |
20 634 073 |
34 169 705 |
17 028 015 |
Index |
100 |
51 |
85 |
42 |
Return on investments |
22 % |
29 % |
25 % |
44 % |
Index |
100 |
128 |
112 |
198 |
Source: Sampled companies |
5.4.4.
Conclusion on injury
6.
LIKELIHOOD OF RECURRENCE OF INJURY
6.1.
Production capacity and spare capacity in the US
6.2.
The likely price levels of imports from the US in the absence of countervailing measures
6.3.
Likely impact on the Union industry
6.4.
Conclusion on likelihood of recurrence of injury
7.
UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Interest of unrelated importers
7.3.
Interest of users
7.4.
Conclusion on Union interest
8.
COUNTERVAILING MEASURES
Article 1
Company |
Countervailing duty rate EUR per tonne net |
TARIC additional code |
Archer Daniels Midland Company, Decatur |
237,0 |
A933 |
Cargill Inc., Wayzata |
213,8 |
A934 |
Green Earth Fuels of Houston LLC, Houston |
213,4 |
A935 |
Imperium Renewables Inc., Seattle |
216,8 |
A936 |
Peter Cremer North America LP, Cincinnati |
211,2 |
A937 |
Vinmar Overseas Limited, Houston |
211,2 |
A938 |
World Energy Alternatives LLC, Boston |
211,2 |
A939 |
Companies listed in Annex I |
219,4 |
See Annex I |
All other companies |
237,0 |
A999 |
Article 2
Country |
Company |
TARIC additional code |
Canada |
BIOX Corporation, Oakville, Ontario, Canada |
B107 |
Canada |
DSM Nutritional Products Canada Inc., Dartmouth, Nova Scotia, Canada |
C114 |
Canada |
Rothsay Biodiesel, Guelph, Ontario, Canada |
B108 |
Article 3
Article 4
Article 5
Article 6
ANNEX I
Company Name |
City |
TARIC additional code |
AC & S Inc. |
Nitro |
A941 |
Alabama Clean Fuels Coalition Inc. |
Birmingham |
A940 |
American Made Fuels, Inc. |
Canton |
A940 |
Arkansas SoyEnergy Group |
DeWitt |
A940 |
Arlington Energy, LLC |
Mansfield |
A940 |
Athens Biodiesel, LLC |
Athens |
A940 |
Beacon Energy |
Cleburne |
A940 |
Biodiesel of Texas, Inc. |
Denton |
A940 |
BioDiesel One Ltd |
Southington |
A940 |
BioPur Inc. |
Bethlehem |
A941 |
Buffalo Biodiesel, Inc |
Tonawanda |
A940 |
BullDog BioDiesel |
Ellenwood |
A940 |
Carbon Neutral Solutions, LLC |
Mauldin |
A940 |
Central Iowa Energy LLC |
Newton |
A940 |
Chesapeake Custom Chemical Corp. |
Ridgeway |
A940 |
Community Fuels |
Stockton |
A940 |
Delta BioFuels Inc. |
Natchez |
A940 |
Diamond Biofuels |
Mazon |
A940 |
Direct Fuels |
Euless |
A940 |
Eagle Creek Fuel Services, LLC |
Baltimore |
A940 |
Earl Fisher Bio Fuels |
Chester |
A940 |
East Fork Biodiesel LLC |
Algona |
A940 |
ECO Solutions, LLC |
Chatsworth |
A940 |
Ecogy Biofuels LLC |
Tulsa |
A940 |
ED&F Man Biofuels Inc. |
New Orleans |
A940 |
Freedom Biofuels Inc. |
Madison |
A940 |
Freedom Fuels LLC |
Mason City |
A941 |
Fuel & Lube, LLC |
Richmond |
A940 |
Fuel Bio |
Elizabeth |
A940 |
FUMPA Bio Fuels |
Redwood Falls |
A940 |
Galveston Bay Biodiesel LP (BioSelect Fuels) |
Houston |
A940 |
GeoGreen Fuels LLC |
Houston |
A940 |
Georgia Biofuels Corp. |
Loganville |
A940 |
Green River Biodiesel, Inc. |
Moundville |
A940 |
Griffin Industries Inc. |
Cold Spring |
A940 |
High Plains Bioenergy |
Guymon |
A940 |
Huish Detergents Inc. |
Salt Lake City |
A940 |
Incobrasa Industries Ltd. |
Gilman |
A940 |
Independence Renewable Energy Corp. |
Perdue Hill |
A940 |
Indiana Flex Fuels |
LaPorte |
A940 |
Innovation Fuels Inc. |
Newark |
A940 |
Integrity Biofuels |
Morristown |
A941 |
Iowa Renewable Energy LLC |
Washington |
A940 |
Johann Haltermann Ltd. |
Houston |
A940 |
Lake Erie Biofuels LLC |
Erie |
A940 |
Leland Organic Corporation |
Leland |
A940 |
Louis Dreyfus Agricultural Industries LLC |
Claypool |
A940 |
Louis Dreyfus Claypool Holdings LLC |
Claypool |
A940 |
Middle Georgia Biofuels |
East Dublin |
A940 |
Middletown Biofuels LLC |
Blairsville |
A940 |
Musket Corporation |
Oklahoma City |
A940 |
Natural Biodiesel Plant LLC |
Hayti |
A941 |
New Fuel Company |
Dallas |
A940 |
North Mississippi Biodiesel |
New Albany |
A940 |
Northern Biodiesel, Inc. |
Ontario |
A940 |
Northwest Missouri Biofuels, LLC |
St. Joseph |
A940 |
Nova Biofuels Clinton County LLC |
Clinton |
A940 |
Nova Biosource |
Senaca |
A940 |
Organic Fuels Ltd. |
Houston |
A940 |
Owensboro Grain Company LLC |
Owensboro |
A940 |
Paseo Cargill Energy, LLC |
Kansas City |
A940 |
Peach State Labs Inc. |
Rome |
A940 |
Perihelion Global, Inc. |
Opp |
A940 |
Philadelphia Fry-O-Diesel Inc. |
Philadelphia |
A940 |
Piedmont Biofuels Industrial LLC |
Pittsboro |
A941 |
Pinnacle Biofuels, Inc. |
Crossett |
A940 |
PK Biodiesel |
Woodstock |
A940 |
Pleasant Valley Biofuels, LLC |
American Falls |
A940 |
Prairie Pride |
Deerfield |
A941 |
RBF Port Neches LLC |
Houston |
A940 |
Red Birch Energy, Inc. |
Bassett |
A940 |
Red River Biodiesel Ltd. |
New Boston |
A940 |
REG Ralston LLC |
Ralston |
A940 |
Renewable Energy Products, LLC |
Santa Fe Springs |
A940 |
Riksch BioFuels LLC |
Crawfordsville |
A940 |
Safe Renewable Corp. |
Conroe |
A940 |
Sanimax Energy Inc. |
DeForest |
A940 |
Seminole Biodiesel |
Bainbridge |
A940 |
Southeast BioDiesel LLC |
Charlotte |
A941 |
Soy Solutions |
Milford |
A940 |
SoyMor Biodiesel LLC |
Albert Lea |
A940 |
Stepan Company |
Northfield |
A941 |
Sunshine BioFuels, LLC |
Camilla |
A940 |
TPA Inc. |
Warren |
A940 |
Trafigura AG |
Stamford |
A940 |
U.S. Biofuels Inc. |
Rome |
A940 |
United Oil Company |
Pittsburgh |
A940 |
Valco Bioenergy |
Harlingen |
A940 |
Vanguard Synfuels, LLC |
Pollock |
A940 |
Vitol Inc. |
Houston |
A940 |
Walsh Bio Diesel, LLC |
Mauston |
A940 |
Western Dubque Biodiesel LLC |
Farley |
A940 |
Western Iowa Energy LLC |
Wall Lake |
A940 |
Western Petroleum Company |
Eden Prairie |
A940 |
Yokaya Biofuels Inc. |
Ukiah |
A941 |