Biodiesel makers in Argentina and Indonesia should face anti-dumping duties of up to 277 percent on their shipments to the United States, ruled the Commerce Department in a case brought by domestic producers. If the U.S. International Trade Commission agrees that the imported fuel is damaging the domestic industry, the duties will go into effect.
Some $1.2 billion worth of Argentine biodiesel and $268 million worth of Indonesian biodiesel were imported in 2016. The imports compete with U.S. production. Nearly one-third of U.S. soybean oil is used for biodiesel.
“While the United States values its relationship with Argentina and Indonesia, even our closest friends must play by the rules,” said Commerce Secretary Wilbur Ross.
The ITC is expected to issue its final determination around April 6. If it decides there is no injury to U.S. producers, the matter will be dropped and duties will not be levied. The Commerce Department said Argentine producers should pay duties ranging from 60.44 percent to 74.73 percent, while Indonesian producers should pay duties ranging from 95.52 percent to 276.65 percent.
The two-year budget agreement passed recently by Congress included a retroactive extension of the biodiesel tax credit for 2017. The National Biodiesel Board, a trade group, said a long-term extension of the tax credit is needed. “The industry is poised for growth if given the right signal,” said the group.
A Commerce Department fact sheet on the antidumping case is available here.