US slaps higher anti-dumping duties on Indonesia, Argentina biodiesel

SINGAPORE (ICIS)–The US Department of Commerce has affirmed higher anti-dumping duty rates to be imposed on imports of biodiesel from Indonesia and Argentina, according to a statement by the department late on Wednesday.

The department said it had found that biodiesel imports from Argentina and Indonesia were being sold in the US at 60.44-86.41% and 92.52-276.65% lower than what it considered to be “fair value,” respectively.

“As a result of today’s decisions, Commerce will instruct US Customs and Border Protection (CBP) to collect cash deposits from importers of biodiesel from Argentina and Indonesia based on these final rates,” the statement said.

In 2017, the US placed anti-subsidy duties on Argentinian and Indonesian biodiesel, ranging from 71.45-72.28% for soy-based biodiesel from Argentina, and 34.45-64.73% for palm oil-based biodiesel from Indonesia.

The US International Trade Commission in November then ruled that the US biodiesel industry had indeed been harmed by cheaper biodiesel imports from Argentina and Indonesia.

But both Argentina and Indonesia have won challenges filed at the World Trade Organization (WTO) contesting anti-dumping duty rates imposed on their biodiesel exports to the European Union.

The EU subsequently lowered ADD rates on Argentina biodiesel but ADDs on Indonesian biodiesel have so far not been changed.

With the optimism generated by the WTO’s ruling against the EU ADDs, Indonesia is now aiming to challenge the US-imposed duties, with a complaint lodged at the US Court of International Trade, various media reports said, citing the Indonesian Biodiesel Producers Association (Aprobi) and other government officials.

According to the US commerce department, biodiesel imports from Argentina and Indonesia in 2016 were valued at an estimated $1.2 billion and $268 million, respectively.

For Indonesian biodiesel producers, the US ruling raises the possibility that yet another of its export market could be closed off although that would depend on how successful Indonesia’s legal challenges are.

“There is still a lot of uncertainty on the regulations for Indonesian exporters. Maybe in the second half of the year things might be clearer,” said a source in Indonesia.

Top image: Photo by REX/Shutterstock 
Indonesia, Lombock, view of palm trees reflection on water