EU Implements Higher Import Taxes for Ethanol Fuel Blends with 30% Gasoline

The European Commission on Mar 13, 2012 published a customs regulation that will hike import taxes for ethanol blends containing up to 30% gasoline to a flat rate of Eur102/cubic meter ($134/cu m).

The new customs code means that fuel ethanol blended with as much as 30% gasoline will no longer be eligible to pay 6.5% ad valorem taxes, or around Eur35/cu m on Mar 13, 2012.

The change tackles what European ethanol producers have described as a loophole in the harmonized code system for commodity classification, allowing refiners and fuel blenders to import ethanol-gasoline blends as a chemical product rather than a biofuel.

Ethanol lobby group ePURE welcomed the the new regulation.