SUBSCRIBER NOTE: Platts to reflect ex-duty cargoes in CIF NWE Jet

Following a review of market feedback, Platts confirms that it will reflect ex-duty cargoes of jet fuel in its benchmark Jet CIF Northwest Europe Cargo assessment with effect from January 1, 2014. This decision follows a consultation launched by Platts on July 18, and a proposal published on September 10. Under this approach, Platts will consider for publication in its assessment process bids, offers and trades for any jet fuel cargoes that meet standard quality specifications, for arrival into Europe from January 1, 2014. Platts reflects cargoes with delivery ranges that typically fall within five-day delivery periods. The first delivery period affected by this change will be cargoes bid, offered and traded for the December 28, 2013-January 1, 2014 delivery period. Platts is updating its methodology following European Union changes in taxation policy, which would make substantial supplies of jet fuel subject to possible taxation after January 1. Platts jet fuel assessments will be exclusive of import duty, were they to apply. Platts assessments will reflect merchantable quality jet fuel regardless of origin. Platts currently reflects market conventions in its Jet CIF Northwest European physical cargo assessment, where jet fuel cargoes are expected to be "EU-qualified," which means free from exposure to import taxes. Separately, Platts Jet FOB ARA Barge assessment will continue to reflect EU-qualified material. Platts European jet fuel assessments will continue to reflect standard commercial Jet-A1 specifications, as defined by UK Ministry of Defence in DEFSTAN 91-91 and the Joint Fueling System Checklist. Platts recognizes efforts by the European Commission, the EU's executive arm, to provide greater clarity around the impact of these changes on jet fuel imports. The EC has drawn up proposals to make jet fuel permanently duty free from next year, recognizing the negative economic effect which could result from the imposition of an import duty. These proposals are being reviewed by member states. Please send any further comments by November 1, 2013, to europe_products@platts.com, with a cc to pricegroup@platts.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.