News6 May 2020Brussels, BelgiumAgriculture and Rural Development
Import duties for maize, sorghum and rye updated again by the European Commission
Sustained low prices for maize worldwide and ample supply have led to a second update of import duties by the European Commission. The automatic mechanism calculating import duties was triggered on 27 April, setting the import duty on maize, sorghum and rye at € 5.27 per tonne. The new calculation has led to a revised duty at € 10.40 per tonne.
The revised tariff, published on 5 May 2020 in the Official Journal, is calculated according to EU regulation 642/2010. It explains that the import duty for the three cereals is based on the difference between a European reference price and the world benchmark for maize – the US price, calculated as cif maize price (i.e. cost, insurance and freight included) at the port of Rotterdam.
The collapse of oil prices has led to a drop in bioethanol fuel demand in the US as well as lower freight costs. In addition, a record maize harvest is expected for 2020/2021 at global level. The combination of these factors has resulted in a US cif market prices for maize at the port of Rotterdam at €146.63 per tonne.