Leaders of international customs-fraud ring involving biodiesel imports arrested, detained in Netherlands

The European Public Prosecutor’s Office in Rotterdam, the Netherlands, has arrested two suspects for their role in a customs-fraud scheme involving biodiesel imports, with an estimated damage of over 60-million euros (USD$62.8 million).  

They allegedly imported biodiesel of U.S. origin into the EU while falsely declaring its origin.

The two suspects had been in pretrial detention in Belgium since May, in relation to an EPPO investigation led by the Brussels office, where they are believed to be the ringleaders of a criminal organization that imported biodiesel of U.S. 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 pretrial detention in another investigation led by the Rotterdam office of EPPO.

In this second investigation, there is reason to believe that the two suspects imported biodiesel of U.S. origin into the Netherlands while fraudulently declaring it as biodiesel made from used cooking oil (UCOME), originating from Bosnia and Herzegovina.

In reality, according to EPPO, it was biodiesel from other oils such as soybean oil, which EPPO said is “a cheaper alternative.”

They allegedly did so to evade EU antidumping duties, which apply to biodiesel produced in the U.S. 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 fulfill the RED obligation to blend normal diesel with biodiesel than other biodiesels such as that made from soybean oil.  

The facts under investigation were first reported to 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 euros, of which 49-million euros in damages 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.