Authorities in the Netherlands have arrested two suspects in connection with a large-scale customs fraud scheme involving biodiesel imports, with financial losses exceeding €60 million. The European Public Prosecutor’s Office (EPPO) in Rotterdam confirmed the arrests, stating that the suspects allegedly imported biodiesel from the United States into the European Union while falsely declaring its origin, reports European Public Prosecutor’s Office.
The two individuals had already been in pre-trial detention in Belgium since May 2024 as part of an EPPO-led investigation in Brussels. They are believed to be the leaders of a criminal organisation that fraudulently declared the origin of US biodiesel imports as Morocco to evade EU trade restrictions.
Following a European arrest warrant, the suspects were transferred to the Netherlands, where the EPPO’s Rotterdam office is leading a separate investigation. In this case, authorities suspect that the biodiesel was falsely declared as being made from used cooking oil (UCOME) originating from Bosnia and Herzegovina. In reality, the imports consisted of cheaper biodiesel alternatives, such as SoyMethyl Ester (SME), which do not meet the same sustainability standards. The alleged scheme allowed them to bypass EU anti-dumping duties, which are imposed on US biodiesel due to government subsidies and lower production costs.
Under the EU’s Renewable Energy Directive (RED), UCOME is considered a more sustainable biodiesel. It also requires a lower volume to meet the EU’s blending obligation with regular diesel compared to other biodiesel products like SMEs.
The investigation was first launched based on information provided by the European Anti-Fraud Office (OLAF). The Dutch Fiscal Information and Investigation Service (FIOD) is investigating in the Netherlands.
Authorities estimate that the fraud caused €60 million in losses to the EU budget, with €49 million of that occurring in the Netherlands. The suspects will stand trial in both the Netherlands and Belgium, where investigations are still ongoing.
The EPPO, an independent prosecution office of the European Union, is responsible for investigating and prosecuting crimes that impact the EU’s financial interests. The suspects remain in custody and are presumed innocent until proven guilty in court.
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