The European Biodiesel Board (EBB), which advocates for European biodiesel producers, received a favorable ruling today from the Court of Justice (case C-112/23 P). The court rejected an appeal from Indonesian exporters PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo against the General Court’s decision made on December 14, 2022 (Case T-143/20).
Today’s ruling fully upheld the General Court’s decision, concluding four years of litigation.
Xavier Noyon, Secretary General of the EBB, stated, “This ruling represents a significant milestone in our ongoing efforts to combat unfair biodiesel imports and restore fair competition in the EU.” He added that “This decision is timely, as the countervailing duties are set to expire soon unless an investigation concludes that extending them for another five years is necessary.”
Previous Rulings Affirmed
In December 2022, the General Court dismissed all claims from the Indonesian exporters seeking to annul countervailing duties on biodiesel imports imposed on November 28, 2019. This ruling was reaffirmed in today’s decision.
This case is crucial for any industry facing unfair competition due to export taxes. The Commission classified the export taxes imposed by the Indonesian government as countervailing subsidies under the basic AS Regulation, with the case highlighting a threat of material injury.
Appeal Denied
The appeal by the Indonesian producers contended that the General Court misinterpreted EU regulations on protection against subsidized imports, specifically regarding the calculation of alleged subsidies and the assessment of injury. They also argued that the judgment misinterpreted WTO Panel reports. The Court dismissed these claims in its ruling today.
WTO Involvement
The EBB notes that Indonesia has referred this issue to the WTO, anticipating that the claims from Indonesian exporters would not succeed in EU courts. The EBB remains optimistic that the WTO ruling will uphold the European Commission’s findings during the investigation, particularly given the limited cooperation from Indonesian authorities.
Secretary General Xavier Noyon emphasized, “For over 16 years, the EBB has been advocating against unfair competition from third countries to ensure the long-term sustainability of the EU biodiesel industry, protect jobs across the EU-27 Member States, foster R&D, and promote independence from fossil fuels. The EBB remains dedicated to combating any unfair trading practices that threaten the full development of the EU biodiesel sector.”
