The European Union (EU) has initiated anti-dumping and countervailing duty investigations regarding U.S. exports of ethanol to Europe and current U.S. policies surrounding ethanol production and use. Allegations by EU ethanol producers, represented by the organization ePure, suggest that U.S. ethanol exports to Europe are taking advantage of the expiring volumetric ethanol excise tax credit, or VEETC, prior to export resulting in a lower price and harming EU ethanol producers.
The Renewable Fuels Association (RFA) responded to these allegations when the first complaint was filed. “In fact, the tax incentive is going away,” said RFA president Bob Dinneen. “That’s not going to be an issue any longer (after Dec. 31).”
Listen to Dinneen’s comments here: RFA CEO Bob Dinneen
The RFA is working with other industry groups to encourage all U.S. ethanol producers to cooperate with the EU investigations and will continue to monitor the status of these investigations to ensure the U.S. ethanol industry is not unjustly penalized.
RFA notes that domestic ethanol producers are not eligible for VEETC which is specifically for gasoline blenders, marketers, and other end users.