On March 23, 2017 the National Biodiesel Board Fair Trade Coalition filed a petition to US Department of Commerce (DOC) and US International Trade Commission (ITC) for antidumping and countervailing investigation against imports of biodiesel from Argentina and Indonesia falling under the HS codes of 3826.00.10.00 and 3826.00.30.00.
The product covered by these petitions is biodiesel, which is a fuel comprised of monoalkyl esters of long chain fatty acids derived from vegetable oils or animal fats, including waste oils or greases, and other biologically-based oil or fat sources. The petitions cover biodiesel in pure form (“B100”) as well as fuel mixtures containing at least 99 percent biodiesel by volume (“B99”). For fuel mixtures containing less than 99 percent biodiesel by volume, only the biodiesel component of the mixture is covered by the scope of the petitions.
Indonesia exports substantial amount of biodiesel to the US. From 51,280 million gallons/year in 2014 to 71,037 in 2015 and 111,272 in 2016. The largest exporters listed by the petitioner in the case are Wilmar and Musim Mas.
The alleged dumping margin for imports originating in Indonesia is 34%, whereas the alleged subsidy programs are as follow:
For the subsidy programs alleged by the petitioner are as follow:
1. Biodiesel subsidy fund by Pertamina
2. Government of Indonesia provision of palm oil feedstock for less than adequate remuneration (LTAR) by export restraint
3. Indonesia Eximbank preferential financing
4. Export insurance provided by PT Asuransi Asei Indonesia
5. Export guarantee provided by PT Asuransi Asei Indonesia and Indonesia Eximbank
6. Industrial estate subsidies
7. Pioneer industry tax benefits
8. Income tax benefits for listed investments
The estimate date for the DOC to initiate the case is April 12, 2017.