JAKARTA (TheInsiderStories) – The United States Department of Commerce confirmed on Wednesday evening its preliminary finding that Argentina and Indonesia engaged in dumping of biodiesel and imposed dumping duties ranging from around 60 to nearly 277 per cent.
The department found that biodiesel imports from Argentina and Indonesia are sold into the U.S. below fair value, and the cash deposit requirements on imports from these countries will be updated based on the final amount of dumping found.
Wilbur Ross, US commerce secretary, said the decision “allows US producers of biodiesel to receive relief from the market-distorting effects of foreign producers dumping into the domestic market”.
As a result of the commerce department’s final ruling, importers of Argentinian and Indonesian biodiesel will continue to pay cash deposits on biodiesel imported from those countries.
The updated cash deposit rates range from 60.44 to 86.41 per cent for biodiesel from Argentina, and 92.52 to 276.65 per cent for biodiesel from Indonesia, depending on the particular foreign producer/exporter involved.
The commerce department will instruct U.S. Customs and Border Protection to collect cash deposits in these amounts when the final determination is published in the Federal Register in late February or early March.
The duty deposit requirements are in addition to the deposits required by the final countervailing duty orders published earlier this year. The final countervailing duty orders followed affirmative findings that unfairly subsidized biodiesel imports from Argentina and Indonesia injured the U.S. biodiesel industry.
A final determination by the U.S. International Trade Commission in connection with the antidumping case is expected in March or April.
The National Biodiesel Board Fair Trade Coalition filed these petitions to address a flood of subsidized and dumped imports from Argentina and Indonesia that resulted in market share losses and depressed prices for domestic producers.
The National Biodiesel Board is the U.S. trade association representing the biodiesel and renewable diesel industries, including producers, feedstock suppliers and fuel distributors.
Biodiesel imports from Argentina and Indonesia surged by 464 percent from 2014 to 2016, taking 18.3 percentage points of market share from U.S. manufacturers.
In 2016 Indonesia’s biodiesel exports to the US market reached US$ 255.56 million and contributed 89.19 percent of Indonesia’s total biodiesel exports. But because of this allegation in 2017, Indonesia’s biodiesel exports to the US stopped completely.
Imports of biodiesel from Argentina again jumped 144.5 per cent following the filing of the petitions. These surging, low-priced imports prevented producers from earning adequate returns on their substantial investments and caused U.S. producers to pull back on further investments to serve a growing market.
The Indonesian government has yet to make an official comment on the US government’s decision.