Commerce finds subsidies in biodiesel imports

The U.S. Department of Commerce has found evidence of countervailable subsidies for imports of biodiesel from Argentina and Indonesia, and U.S. biodiesel producers warn that these subsidized shipments keep coming.    The Commerce Department has found evidence of countervailable subsidies for imports of biodiesel from Argentina and Indonesia.
   Specifically, the department found that biodiesel exporters from Argentina and Indonesia received countervailable subsidies of 50.29 and 64.17 percent and 41.06 to 68.28 percent, respectively. 
   Commerce also determined that “critical circumstances” exist in both investigations, allowing for collection of duties for a retroactive period of 90 days prior to publication of the preliminary determination in the Federal Register.
   The department will instruct Customs and Border Protection (CBP) to collect cash deposits from importers of biodiesel from Argentina and Indonesia based on the preliminary rates.
   In 2016, imports of biodiesel from Argentina and Indonesia were valued at an estimated $1.2 billion and $268 million, respectively.
   The petitioner for this countervailing duty investigation is the National Biodiesel Fair Trade Coalition, an ad-hoc association comprised of the National Biodiesel Board and 15 domestic biodiesel producers.
   “The Commerce Department has recognized what this industry has known all along—that foreign biodiesel producers have benefited from massive subsidies that have severely injured U.S. biodiesel producers. We’re grateful that the Commerce Department has taken preliminary steps that will allow our industry to compete on a level playing field,” said Doug Whitehead, chief operating officer of the National Biodiesel Board, in a statement.
   According to the National Biodiesel Board, imports from Argentina and Indonesia increased 464 percent from 2014 to 2016, taking 18.3 percent of the market share from U.S. manufacturers. 
   “Imports of biodiesel from Argentina again jumped 144.5 percent 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 trade group said.
   Unless the final determinations are postponed, Commerce is currently scheduled to announce its final countervailing duty determinations on Nov. 7.
   Between the preliminary and final determinations, Commerce will audit the foreign producers and governments to confirm the accuracy of their data submissions. Parties will file briefs on issues arising from the agency’s preliminary countervailing duty determinations. Commerce will also hold a hearing. 
   If Commerce makes affirmative final determinations of subsidization and the U.S. International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue countervailing duty orders. If Commerce makes negative final determinations of subsidization or the ITC makes negative final determinations of injury, the investigations will end and no orders will be issued.
   Preliminary determinations in the related biodiesel antidumping investigations are due to be issued by Commerce in October.