The U.S. Department of Commerce announced this week the preliminary determination in favor of countervailing duties on subsidized biodiesel imports from Argentina and Indonesia. The Commerce Department found that Argentina and Indonesia provide subsidies to their biodiesel producers in violation of international trade rules. In addition, Commerce found “critical circumstances” to address the post-petition surge of imports from Argentina, allowing for retroactive duties going back to May 2017.

As a result of Commerce’s ruling, importers of Argentinian and Indonesian biodiesel will be required to pay cash deposits on biodiesel imported from those countries. The cash deposit rates range from 50.29 to 64.17 percent for biodiesel from Argentina, and 41.06 to 68.28 percent for biodiesel from Indonesia, depending on the particular foreign producer/exporter involved. Cash deposit requirements will be imposed when this preliminary determination is published in the Federal Register sometime next week. In addition, based on Commerce’s “critical circumstances” finding, these rates for Argentina will apply retroactively 90 days from the date of the Federal Register notice.

Between the preliminary and final determinations, the Commerce Department will audit the foreign producers and governments to confirm the accuracy of their data submissions. Preliminary determinations in the companion antidumping investigations are due to be issued in October. Final Commerce determinations are expected by spring 2018.

To summarize:

• Companies in Argentina and Indonesia are selling biodiesel in the United States at price levels that are “dumped” (i.e., sold below their cost of production).
• Argentina and Indonesia are also providing subsidies to these biodiesel producers.
• The combined effect of this dumping and subsidization has been a flood of imports at unfair prices, with the result being injury to U.S. manufacturers and workers.
• Through this case, we hope to address the fact that Argentina and Indonesia are selling into the U.S. biodiesel market at dumped and subsidized prices, and seek to create a level playing field for U.S. producers.