U. S. Commerce preliminary findings on imported biodiesel from Argentina and Indonesia

In 2016, imports of biodiesel from Argentina and Indonesia were valued at an estimated $1.2 billion and $268 million. On March 23, 2017 petitions were filed by the National Biodiesel Board Fair Trade Coalition, an association consisting of the National Biodiesel Board and 15 domestic producers of biodiesel, to investigate imports of biodiesel from Argentina and Indonesia. Countervailing duty (CVD) investigations address market distortions in the production of foreign merchandise that can enable and facilitate dumping practices, which leads to unfair costs for American businesses and workers. The investigations covered biodiesel in pure form as well as fuel mixtures containing blends above 30 percent and including 99 percent biodiesel by volume. Only the biodiesel component of the fuel mixtures was covered within the scope of the investigations.

Yesterday, U. S. Secretary of Commerce Ross announced the affirmative preliminary determinations. In the Argentina investigation, based on the adverse facts available due to the failure to provide certain information as requested by Commerce, it was determined that the preliminary subsidized rates for LDC Argentina S. A. should be 50.29 percent and for Vicentin S.A.I.C. 64.17 percent. All other Argentinian producers and exporters will receive a subsidy rate of 57.01 percent. 

In the Indonesia CVD investigation, the calculated preliminary subsidy rates for Wilmar International Ltd. was sent at 41.06 percent and 68.28 percent for P.T. Musim Mas. For all other Indonesian producers and exports the rate will be 44.92 percent.

As the result of these preliminary determinations, Commerce Secretary Ross as instructed the U. S. Customs and Border Protection department to collect cash deposits from Argentina and Indonesia importers of biodiesel at the above preliminary rates. The final determinations is currently scheduled to be announced by Commerce on November 7, 2017.

Upon hearing the news, Renewable Energy Group Inc., CEO Randy Howard stated “This is a victory for American manufacturing and job creation. The U.S. government sent a strong signal that these trade practices should not continue as this case proceeds.”

U. S. Secretaryof Commerce Ross noted, “The U.S. values its relationships with Argentina and Indonesia, but even friendly nations must play by the rules. The subsidization of goods by foreign governments is something that the Trump administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination.”

In 2016, U.S. biodiesel market was supplied over 910 million gallons of biodiesel and renewable diesel through imports. Argentina alone exported nearly a half a billion gallons of biodiesel to the U.S.