The European Commission has launched several proceedings concerning biodiesel originating in the United States. On the one hand, it will assess whether the existing anti-dumping and countervailing duties should remain in force. On the other, it will examine whether certain HEFA-derived sustainable aviation fuels (SAF) should be excluded from the definition of the product subject to those measures.
The four notices were published in the Official Journal of the European Union on 31 July 2026. Although they are being handled under separate proceedings, they all affect the customs and trade treatment of biodiesel originating in the United States.
Which US biodiesel measures is the EU reviewing?
The European Commission has initiated two different types of proceedings:
- Two expiry reviews, one concerning anti-dumping measures and the other concerning anti-subsidy (countervailing) measures.
- Two partial interim reviews, also covering anti-dumping and anti-subsidy measures, limited to the definition of the product concerned.
The expiry reviews will determine whether allowing the measures to lapse would be likely to lead to the continuation or recurrence of dumping, subsidisation and injury to the EU industry.
The partial interim reviews focus on a more specific issue: whether certain HEFA-derived sustainable aviation fuels should be excluded from the scope of the measures.
Expiry review of the anti-dumping duties
The anti-dumping expiry review was initiated through Notice C/2026/4227.
The Commission will assess whether the expiry of the measures could lead to the continuation or recurrence of dumped imports of US biodiesel and whether such imports would once again cause injury to the Union industry.
According to the review request, relevant factors include excess production capacity in the United States, the limited ability of other markets to absorb that capacity, and the attractiveness of the EU market due to its size and price levels.
The investigation period covers 1 July 2025 to 30 June 2026. The examination of injury trends will cover the period from 1 January 2023 until the end of the investigation period.
Expiry review of the anti-subsidy measures
The expiry review of the countervailing measures was initiated through Notice C/2026/4128.
The Commission will examine whether US producers continue to benefit from subsidy programmes granted by the federal government or by individual US states.
The alleged subsidy schemes include tax credits, biodiesel production incentives, grants, preferential loans and loan guarantees.
The application also argues that allowing the measures to expire could lead to increased volumes of subsidised imports and renewed injury to the EU biodiesel industry.
The current measures remain in force
The initiation of the expiry reviews does not mean that the existing duties will be removed immediately.
During the investigations, the current anti-dumping and countervailing duties applicable to the products concerned will remain in force. The Commission will decide at the end of the proceedings whether the measures should be maintained or allowed to expire.
The current anti-dumping duties were established by Commission Implementing Regulation (EU) 2021/1266, while the countervailing measures were imposed by Commission Implementing Regulation (EU) 2021/1267.
Review of the definition of biodiesel covered by the measures
In parallel, the Commission has initiated two partial interim reviews through Notices C/2026/4087 and C/2026/4088.
These proceedings do not review the level of the duties in general. Instead, they are limited to determining whether the definition of the product concerned should be amended.
The key issue is the possible exclusion of certain sustainable aviation fuels consisting of paraffinic gas oils obtained through synthesis or hydroprocessing from non-fossil feedstocks, commonly referred to as HEFA-derived fuels.
What are HEFA-derived sustainable aviation fuels?
HEFA, which stands for Hydroprocessed Esters and Fatty Acids, refers to sustainable aviation fuels produced through the hydroprocessing of vegetable oils, animal fats and other non-fossil feedstocks.
These fuels may be marketed in pure form or as part of fuel blends and are primarily intended for use in aviation.
According to the applicants, these fuels differ from other products originally covered by the measures, such as fatty acid methyl esters (FAME) and certain hydrotreated vegetable oils (HVO), in terms of their characteristics, production processes, end uses and regulatory treatment.
The Commission will assess whether these differences justify excluding them from the scope of the anti-dumping and countervailing measures.
Why is the exclusion of HEFA fuels being requested?
The applicants argue that applying anti-dumping and countervailing duties to HEFA-derived sustainable aviation fuels increases costs for airlines and could hinder the achievement of the EU’s sustainable aviation fuel objectives.
They also contend that European demand for SAF will exceed the Union’s expected production capacity and that EU producers may be unable to close the supply gap because of feedstock constraints and delays affecting several industrial projects.
These arguments will be assessed during the partial interim reviews. The initiation of the proceedings does not mean that the requested exclusion has already been approved.
Biodiesel products covered by the investigations
The product under review includes fatty acid mono-alkyl esters and paraffinic gas oils obtained through synthesis or hydroprocessing from non-fossil feedstocks, commonly referred to as biodiesel.
It covers both pure products and certain blends containing more than 20% by weight of these components.
The products are currently classified under various Combined Nomenclature (CN) codes within Chapters 15, 27 and 38, including:
- Ex 1516 20 98.
- Ex 1518 00 91.
- Ex 1518 00 95.
- Ex 1518 00 99.
- Ex 2710 19 11.
- Ex 2710 19 15.
- Ex 2710 19 21.
- Ex 2710 19 25.
- Ex 2710 19 29.
- Ex 2710 19 42.
- Ex 2710 19 44.
- Ex 2710 19 46.
- Ex 2710 19 47.
- Ex 2710 20 11.
- Ex 2710 20 16.
- Ex 3824 99 92.
- 3826 00 10.
- Ex 3826 00 90.
The CN and TARIC codes are provided for information purposes only. The application of the measures also depends on the product’s technical description, composition, origin and specific characteristics.
Tariff codes for HEFA fuels
The sustainable aviation fuels whose exclusion is being examined are currently classified under:
- CN ex 2710 19 11 (TARIC 2710 19 11 10).
- CN ex 2710 19 15 (TARIC 2710 19 15 10).
- CN ex 2710 19 21 (TARIC 2710 19 21 10).
- CN ex 2710 19 25 (TARIC 2710 19 25 10).
- CN ex 2710 19 29 (TARIC 2710 19 29 10).
The indication “ex” means that not all products classified under those tariff headings are necessarily covered. It is essential to verify whether the goods match the technical description contained in the review notices.
Impact on biodiesel and SAF importers
Companies importing biodiesel or sustainable aviation fuels from the United States must continue to apply the existing measures until a final decision is adopted.
Particular attention should be paid to:
- The non-preferential origin of the goods.
- The tariff classification and TARIC code.
- The exact composition of the product.
- The biodiesel content of any blends.
- The synthesis or hydroprocessing process used.
- The intended end use of the fuel.
- The US producer or exporter.
- The supporting technical and commercial documentation.
- The anti-dumping and countervailing duties applicable on the date of customs clearance.
For HEFA-derived fuels, it will be particularly important to demonstrate the product’s nature, manufacturing process and intended use as sustainable aviation fuel.
Timeline of the EU investigations
The partial interim reviews are expected to be concluded within 12 months of the publication of the notices and, in any event, no later than 15 months.
Interested parties, including producers, importers, users and representative associations, may participate in the proceedings in accordance with the deadlines and requirements established by the Commission.
Until a final decision is adopted, the current anti-dumping and countervailing measures remain fully applicable, and no exclusion for HEFA-derived fuels takes effect.
Customs support for US biodiesel imports
The existence of four parallel proceedings requires close monitoring by importers, distributors, airlines and companies operating in the energy sector.
Arola’s Customs Department can assess tariff classification, origin, product composition and the possible application of anti-dumping and countervailing duties to imports of biodiesel and sustainable aviation fuels originating in the United States.
