(Luxembourg, 20 February 2025) – The European Public Prosecutor’s Office (EPPO) in Rotterdam (Netherlands) has arrested two suspects for their role in a customs fraud scheme involving biodiesel imports, with an estimated damage of over €60 million. They allegedly imported biodiesel of US origin into the EU while falsely declaring its origin.
The two suspects had been in pre-trial detention in Belgium since May 2024, in relation to an EPPO investigation led by the Brussels office, where they are believed to be the ringleaders of a criminal organisation that imported biodiesel of US origin into the EU, while fraudulently declaring its origin as Morocco.
The same suspected ringleaders were surrendered to the Netherlands under a European arrest warrant, as the court in Rotterdam has ordered their pre-trial detention in another investigation led by the Rotterdam office of the EPPO.
In this second investigation, there is reason to believe that the two suspects imported biodiesel of US origin into the Netherlands while fraudulently declaring it as biodiesel made from used cooking oil (UCOME), originating from Bosnia and Herzegovina. In reality, it was biodiesel from other oils, such as SoyMethyl Ester (SME), which is a cheaper alternative. They allegedly did so to evade EU anti-dumping duties, which apply to biodiesel produced in the US due to its government subsidies and lower production costs.
Under the Renewable Energy Directive (RED), UCOME is considered to be one of the most sustainable biodiesels, and it takes a smaller volume of it, to fulfil the RED-obligation to blend normal diesel with biodiesel than other biodiesels such as SME.
The facts under investigation were first reported to the EPPO by the European Anti-Fraud Office (OLAF) and the investigation in the Netherlands is carried out by the Dutch Fiscal Information and Investigation Service (FIOD).
The total damage to the EU budget is estimated at over €60 million, of which €49 million damage occurred in the Netherlands.
The suspects are presumed innocent until proven guilty in the competent Dutch and Belgian courts of law.
The investigation in Belgium is still ongoing, and the two suspects will also have to stand trial in Belgium.
EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.