The European Commission adopted a quota for API Group II base oil imports, determining that volumes above 400,000 metric tons per year will be subject to duties of 3.7 percent.

Some European Union member states and industry associations favored larger quota volumes or a prolonged suspension of the duty, but after deliberations with EU member states, the blocs decision-making body upheld its original proposal.

The decision includes viscosity grades between 150 neutral and 600 N. Lighter Group II grades and Group III base oils are exempt from duties. The quota took effect on Jan. 1, with the possibility of amendments after six months.

Before the decision, France and Belgium argued for quotas of 1 million and 700,000 t/y, respectively. The UEIL called for continued duty suspension or for a quota between 700,000 and 1 million tons, a proposal backed by the Italian Lubricants Association and the German Association of Small and Medium-sized Mineral Oil Companies. VSN, the national lubricants association in the Netherlands, aimed for 800,000 t/y, while theUnited Kingdom Lubricants Association hoped for 700,000 t/y.

Task Force Tackles Chemicals Reporting

European trade associations representing lubricant and chemical additive suppliers created a task force at an October conference co-hosted in Frankfurt by the Technical Association of the European Lubricants Industry, ATIEL, and the Technical Committee of Petroleum Additive Manufacturers, ATC. The group aims to improve compliance with chemical regulations, including the communication of sensitive information throughout the supply chain. Compliance rules are complex, and lubricant marketers, additive suppliers and their customers must understand each others operations before finding a solution, the two organizations said.

Current chemicals regulations create numerous hurdles for businesses, the first of which being the level of data sharing mandated by some regulations, including what must be reported on standardized communication forms such as inventory declarations, formulation disclosures, explanations of potential hazards and handling guidance.

Non-standardized communication is another problem. Original equipment manufacturers want declarations on bespoke forms. These require considerable time and resources, and many believe the number of declarations required can be consolidated.

Perhaps the biggest issue facing the task force is how to manage non-disclosure agreements. Oil and additive companies say these are needed to protect intellectual property rights, but they are time consuming to set up and manage. It is difficult for oil companies to implement non-disclosure agreements with multiple suppliers or to obtain full formulation disclosures from additive companies. Even with them in place, additive companies do not always provide 100 percent formulation disclosures, ATIEL said.

To improve the situation, ATIEL suggested companies discuss with their supply chain what information is required and how it can be efficiently delivered. Businesses should consider whether trust exists in the supply chain or whether product stewardship review work is repeated by their customers or OEMs. If all product stewardship work is repeated, the process becomes complex and slow.

Doing Deals

Chevron Oronite chose Gapuma U.K. Ltd and its Nigerian subsidiary, GLB Chemical Services Ltd, to be its authorized distributor in Nigeria beginning Jan. 1, 2020. Products for distribution will include the range of Oloa additives and Paratone viscosity modifiers, as well as technical customer support.

Master Fluid Solutions and its Turkish manufacturing partner Peten Endustriyel have established a production plant in Tuzla, Turkey, that will produce Master Fluid products.

Biosynthetic TechnologiesandSIP Specialty Oils and Fluidsreached an agreement allowing SIP to distribute Biosynthetics base oils in Europe.

On Site

Turkish waste oil collector Tayras is building an API Group II rerefinery with enough capacity to process 20 percent of the used lubricants that the country generates. The company claims it will be the countrys first rerefinery.