EU eyes unchanged GII import quota for 2H 2020

The European Commission is likely to keep the Group II base oils import quota unchanged at 200,000t for the second half of this year. Its next review is scheduled for the end of the third quarter.

The continuation of the quota for the second half of this year follows discussions between the commission and member state representatives on 14-15 May.

The quota on Group II N150, N220 and N600 base oils for the first six months came into effect on 1 January. It will be renewed on 1 July.

Imports above the quota, from countries without a free trade agreement (FTA), will be subject to a 3.7pc import tax.

Commission customs data show that 150,000t of the quota had been exhausted as of 11 May, meaning that 49,000t is available until 30 June.

Widespread lockdown measures in Europe from March aimed at preventing the spread of Covid-19 meant demand contracted during the peak season. That slowdown in demand, coupled with price volatility, may have affected Group II imports in the first and second quarters.

By Catherine Caulfield