Official says hundreds of bilateral agreements in place to prevent duty being applied
Jet fuel imports from Gulf countries are exempt from paying a new 4.7 percent
duty, an EU official said on Wednesday, overriding a previous statement they
would have faced the charge.
Last month, officials had said the European Union would impose the duty,
which could have significantly increased costs for airlines.
The new duty was proposed after the European Union removed the Gulf states
from its generalised scheme of preferences (GSP), which offers preferential
trade status to developing economies, because they are now classified as
upper-middle income economies by the World Bank.
On Wednesday, a spokesman told Reuters hundreds of bilateral agreements were
in place that prevented the duty being applied.
"Some 1,500 binding air transport agreements exist between EU Member States
and third countries, as well as between the European Union as a whole and the
U.S., Canada, Georgia, Moldova, Jordan, Israel and Brazil," Commission spokesman
for trade policy John Clancy said by email.
"These agreements include provisions exempting jet fuel from duties and
taxes, disregarding its origin. Hence, jet fuel imports from the Gulf countries
are exempt from paying duties."